<PAGE>
Semiannual Report
as of April 30, 1999
EVERGREEN
International and Global
Growth Funds
[LOGO OF EVERGREEN FUNDS/SM/ APPEARS HERE]
SINCE 1932
<PAGE>
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Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareholders .................................................... 1
Evergreen Emerging Markets Growth Fund
Fund at a Glance ........................................................ 2
Portfolio Manager Interview ............................................. 3
Evergreen Global Leaders Fund
Fund at a Glance ........................................................ 6
Portfolio Manager Interview ............................................. 7
Evergreen Global Opportunities Fund
Fund at a Glance ........................................................ 10
Portfolio Manager Interview ............................................. 11
Evergreen International Growth Fund
Fund at a Glance ........................................................ 14
Portfolio Manager Interview ............................................. 15
Evergreen Latin America Fund
Fund at a Glance ........................................................ 18
Portfolio Manager Interview ............................................. 19
Evergreen Precious Metals Fund
Fund at a Glance ........................................................ 22
Portfolio Manager Interview ............................................. 23
Financial Highlights
Evergreen Emerging Markets Growth Fund .................................. 25
Evergreen Global Leaders Fund ........................................... 27
Evergreen Global Opportunities Fund ..................................... 29
Evergreen International Growth Fund ..................................... 31
Evergreen Latin America Fund ............................................ 33
Evergreen Precious Metals Fund .......................................... 35
Schedule of Investments
Evergreen Emerging Markets Growth Fund .................................. 37
Evergreen Global Leaders Fund ........................................... 40
Evergreen Global Opportunities Fund ..................................... 43
Evergreen International Growth Fund ..................................... 47
Evergreen Latin America Fund ............................................ 51
Evergreen Precious Metals Fund .......................................... 53
Statements of Assets and Liabilities ...................................... 54
Statements of Operations .................................................. 55
Statements of Changes in Net Assets ....................................... 56
Combined Notes to Financial
Statements ................................................................ 58
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Evergreen Funds
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Evergreen Funds is one of the nation's fastest growing investment companies with
over $50 billion in assets under management.
With over 70 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broad range of quality investment products and
services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This semiannual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees, charges and other ongoing expenses, and should be
read carefully before investing or sending money.
------------------------------------------------------------------
Mutual Funds: ARE NOT FDIC INSURED May lose value . Are not bank guaranteed
------------------------------------------------------------------
Evergreen Distributor,Inc.
Evergreen/SM/ is a Service Mark of Evergreen Investment Services,Inc.
<PAGE>
Letter to Shareholders
----------------------
June 1999
[PHOTO OF
WILLIAM ENNIS
APPEARS HERE]
William M. Ennis
President and CEO
Dear Evergreen Shareholders,
We are pleased to provide the Evergreen International and Global Growth Funds
semiannual report, which covers the six-month period ended April 30, 1999.
Improving Global Investment Environment
After stock markets around the world declined dramatically during the summer of
1998 and into the early fall, the central banks of the major industrial nations
made a coordinated effort to lower interest rates. The actions calmed fears
about a slowdown in the world's economy and created a positive environment for
equity investing.
After a nine-year decline, the Japanese market appeared to be moving forward
during the first calendar quarter of 1999. A more optimistic outlook for the Far
East is encouraging international investors to return. Emerging markets, too,
showed signs of reviving after a three-year, bear market. Overall, we regard the
six-month period as a time of change and improvement in many areas.
Year 2000 Preparation/1/
At Evergreen, we continue to prepare ourselves to provide uninterrupted service
and communication with all our shareholders throughout the end of 1999 and right
through the date change into the year 2000 and beyond. As of the end of May,
when this report was finalized, we have completed 75% of the testing of internal
systems and are rapidly moving through the remaining systems. Through May, we
successfully participated in industry-wide testing with the Securities Industry
Association. While Evergreen Funds is striving to identify and correct every
issue under our control related to the Year 2000, it would be impossible to
guarantee a problem-free transition to the new millennium. We are confident that
our efforts will enable shareholders to receive the same Evergreen products and
services after December 1999 that we deliver today.
As always, we encourage all shareholders to diversify their mutual fund
portfolios and we suggest you consult with your financial advisor for an
allocation strategy that helps you meet your investment goals and objectives.
Evergreen Funds offers a wide range of funds that includes multiple investment
styles to help you find one that is appropriate in your portfolio.
Thank you for your continued investment in Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
President and CEO
Evergreen Investment Company
/1/ The information above constitutes Year 2000 readiness disclosure.
1
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EVERGREEN
Emerging Markets Growth Fund
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Fund at a Glance as of April 30, 1999
In managing the portfolio, we intend to emphasize larger and mid-sized
companies,while deemphasizing small-cap companies.
Portfolio Management
--------------------
[PHOTO OF [PHOTO OF
FRANCIS CLARO ANTONIO DOCAL
APPEARS HERE] APPEARS HERE]
Francis Claro Antonio Docal
Tenure: May 1999 Tenure: May 1999
Liu-Er Chen Eleanor Marsh
Tenure: May 1999 Tenure: May 1999
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CURRENT INVESTMENT STYLE
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[STYLE BOX APPEAR HERE]
Morningstar's Style Box is based on a portfolio date as of 4/30/99.
The Equity Style Box placement is based on a fund's price-to-earnings and price-
to-book ratio relative to the S&P 500, as well as the size of the companies in
which it invests, or median market capitalization.
Source: 1999 Morningstar, Inc.
/1/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations. Risks of international investing are magnified in
emerging or developing markets.
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PERFORMANCE AND RETURNS/1/
- --------------------------------------------------------------------------------
Portfolio Inception Date: 9/6/94 Class A Class B Class C Class Y
Class Inception Date 9/6/94 9/6/94 9/6/94 9/6/94
................................................................................
Average Annual Returns *
................................................................................
6 months with sales charge 5.47% 5.29% 9.43% n/a
................................................................................
6 months w/o sales charge 10.68% 10.29% 10.43% 11.01%
................................................................................
1 year with sales charge -22.62% -23.84% -20.56% n/a
................................................................................
1 year w/o sales charge -18.74% -19.84% -19.76% -18.26%
................................................................................
3 years -2.35% -2.59% -1.59% -0.40%
................................................................................
Since Inception -3.21% -3.36% -2.95% -1.91%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
6-month income distributions
per share $0.01 $0.01 $0.01 $0.02
................................................................................
* Adjusted for maximum applicable sales charge.
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LONG TERM GROWTH
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[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION> EVERGREEN EMERGING
MARKETS GROWTH FUND MSCI EMF INDEX MSCI EAFE INDEX CONSUMER PRICE INDEX
<S> <C> <C> <C> <C>
9/30/94 9,522 10,000 10,000 10,000
4/30/95 7,339 7,788 10,479 10,167
4/30/96 8,991 8,729 11,710 10,453
4/30/97 9,422 8,924 11,640 10,723
4/30/98 10,821 7,544 13,879 10,877
4/30/99 8,793 7,046 15,240 11,077
</TABLE>
Comparison of a $10,000 investment in Evergreen Emerging Markets Growth Fund
Class A shares/1/, versus a similar investment in the Morgan Stanley Capital
International Emerging Markets Free (MSCI EMF)Index, the Morgan Stanley Capital
International Europe, Australasia, and Far East (MSCI EAFE) Index and the
Consumer Price Index (CPI).
The Morgan Stanley Capital International Emerging Markets Free Index is an
unmanaged index representing all the free emerging markets countries in the MSCI
universe.
The Morgan Stanley Capital International Europe, Australasia, and Far East Index
is an unmanaged, capitalization index representing the industry composition and
a sampling of small, medium and large capitalization companies from the
aforementioned global markets.
The MSCI EMF and the MSCI EAFE are unmanaged indices and do not include
transaction costs associated with buying and selling securities or any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
2
<PAGE>
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EVERGREEN
Emerging Markets Growth Fund
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Portfolio Manager Interview
How did the Fund perform during the six-month period?
For the six months ended April 30, 1999, the Evergreen Emerging Markets Growth
Fund's Class A shares had a total return of 10.68%, while Class B and Class C
shares had returns of 10.29% and 10.43%, respectively, and Class Y shares had a
return of 11.01%. These returns are before the deduction of any applicable sales
charges. During the same six-month period, the Morgan Stanley Capital
International Emerging Markets Free(MSCI EMF) Index had a return of 34.87%,
while the average Lipper tracked emerging markets debt funds objective had a
return of 26.92%. Lipper, Inc. is an independent monitor of mutual fund
performance. The Fund's very conservative strategy at the start of the period,
which had helped it out perform industry benchmarks during most of 1998, meant
that the Fund did not fully participate in the rally in emerging markets during
late 1998 and early 1999.
Portfolio
Characteristics
----------------
Total Net Assets $61,244,630
...............................................................................
Number of Holdings 127
...............................................................................
What was the investment environment like during the period?
Emerging markets had been out of favor among international investors since the
start of the Asian financial crisis in the summer of 1997. This environment
started improving in the fall of 1998, primarily as the result of several
external factors that had significant effects on emerging markets. These factors
included:
The concerted actions of the central banks of the lead- ing industrialized
nations, including the United States, to lower short-term interest rates,
improving the availability of money for emerging markets. In the U.S., the
Federal Reserve Board lowered short-term interest rates three successive times
in the third and fourth calendar quarters of 1998.
The international support, led by the International Monetary Fund, that enabled
Brazil to replenish its international reserves that had been drained while it
defended its currency. This support gave the Brazilian government important time
and credibility in implementing fiscal reforms in the wake of the decision to
allow the currency to be devalued in mid-January.
The strengthening of the Japanese yen made exports from other Asian markets more
competitive.
The increase in world commodity prices, including the prices of oil, copper,
aluminum and pulp. Many emerging nations are important exporters of
commodities.
These factors combined to help stabilize the economies of many Asian countries
and the value of several currencies started to rebound. The currencies of
Indonesia and South Korea led this rebound.
One signal that the global situation had started to improve was the reaction of
the world's markets to the Brazilian government's decision in mid-January to let
the Brazilian currency, the real, devalue against foreign currencies. This
widely anticipated action actually seemed to clear the air and remove one of the
uncertainties that had been troubling the market. After the devaluation, stock
markets throughout Latin America began a strong rally that continued through the
end of the fiscal period on April 30.
3
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EVERGREEN
Emerging Markets Growth Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
Geographic Allocation:
Top 10 Countries
----------------
(as a percentage of net assets)
Mexico 13.3%
..........................................................
South Africa 11.4%
..........................................................
Korea 11.2%
..........................................................
Brazil 9.2%
..........................................................
Hong Kong 8.3%
..........................................................
Argentina 7.3%
..........................................................
India 6.8%
..........................................................
United States 5.5%
..........................................................
Greece 4.4%
..........................................................
Turkey 2.8%
..........................................................
Your four-member investment team took over the portfolio management of the Fund
in early May 1999. How would you describe your investment strategy?
We intend to manage the Fund to reflect more closely the opportunities and
challenges of the emerging markets. This means that under normal
circumstances, the Fund will be fully invested in the emerging markets, and our
asset allocations will be more consistent with allocations of the Fund's
benchmark, the MSCI EMF. We do not intend for the Fund to replicate exactly the
benchmark, but we do expect allocations to be more consistent with the
benchmark. This means we will have the flexibility to make measured
over-weightings and under-weightings of various countries, depending on where we
see the greatest potential opportunities or the most serious risks.
Our goal will be to achieve performance over the long term that surpasses that
of the MSCI EMF. In the past, the Fund's goal was to achieve results that
surpassed those of most competitive mutual funds. In doing this, the Fund
portfolio often varied significantly from the Emerging Markets Index. It should
be pointed out that this flexible style often helped, as it did during the
extreme volatility of 1997 and 1998 when large cash positions and a conservative
portfolio allocation helped the Fund outperform both market indexes and most
competitive funds.
Going forward, however, we intend to have a Fund that more closely reflects the
environment and opportunities of the emerging markets.
Top 5 Industries
----------------
(as a percentage of net assets)
Telecommunications 23.5%
..........................................................
Banking 17.4%
..........................................................
Beverages & Tobacco 8.3%
..........................................................
Energy Sources 7.8%
..........................................................
Multi-Industry 6.9%
..........................................................
How will the team manage the Fund?
All four members of the team have been part of the international investment team
at Evergreen for several years, and all four have had portfolio management and
analytical responsibilities in the emerging markets. In fact, all four of us had
worked on the Fund as analysts. Each of the four members of the team will have
both a regional focus and an industry focus that cuts across all regions. Our
intention is to work as a team and to discuss all investment decisions and reach
consensus before we act.
Francis Claro will cover Latin America and the European, Middle Eastern and
African (EMEA) markets, as well as concentrating on the telecommunications
industry. Eleanor Marsh will cover Asian markets and specialize on
consumer-related industries throughout the world. Antonio Docal will focus on
Latin American and the EMEA markets, and concentrate on financial stocks. Liu-Er
Chen will concentrate on Asian markets and the utilities industry. Each of these
areas of specialization is consistent with our professional backgrounds and
experience.
4
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EVERGREEN
Emerging Markets Growth Fund
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Portfolio Manager Interview
What have been your specific strategies since taking over the Fund?
We have moved to make the Fund fully invested in the emerging markets, lowering
the cash position, which had been 38% of net assets at the end of the last
fiscal year on October 31, 1998, to approximately 3% of net assets in
April 1999.
In adhering more closely to the benchmark MSCI EMF, we have concentrated the
Fund's assets in line with the regions most heavily represented in the index.
Within these regions, we also have concentrated on the seven countries most
heavily weighted in the index: Brazil, Mexico, South Africa, South Korea,
Taiwan, Greece, and India. We have eliminated investments in markets not
represented in the index, including Hong Kong, Portugal, Singapore and Croatia.
The Fund has slightly over-weighted Mexico and Brazil, when compared to the
index, while under-weighting India, South Korea and Greece. The investments in
Taiwan and South Africa are very close to the benchmark.
In managing the portfolio, we intend to emphasize larger and mid-sized
companies, while de-emphasizing small-cap companies.
Top 10 Holdings
---------------
(as a percentage of net assets)
Telefonos de Mexico SA, ADR 3.6%
..........................................................
Li & Fung Ltd. 3.3%
..........................................................
Samsung Electronics 3.1%
..........................................................
YPF SA, Cl. D, ADR 2.6%
..........................................................
Rembrandt Group Ltd. 2.2%
..........................................................
Korea Electric Power Corp., ADR 2.0%
..........................................................
Mahanagar Telephone Nigam Ltd., GDR 2.0%
..........................................................
Acer, Inc., GDR, 144A 2.0%
..........................................................
Alpha Credit Bank, GDR 1.9%
..........................................................
New Clicks Holdings 1.9%
..........................................................
What is your outlook?
We believe there has been a notable improvement in the fundamental outlook for
emerging markets, helped by rising commodity prices, low stock valuations and
improved access to international financial markets and fairly valued exchange
rate levels. All these factors have helped attract investor interest to emerging
markets.
In Asia, prospects seem to be improving on evidence that Japan has gone through
the worst of its economic problems. The two largest Asian emerging markets,
South Korea and Taiwan, each have shown good performance early in 1999. In
South Korea, despite the strong rally, we remain cautiously optimistic.
Financial stimulus measures in Taiwan have improved the opportunities for
investments in the banking sector.
In Latin America, emerging signs of a revival of global economic growth are
important. If global growth starts to accelerate, we should see higher commodity
prices, which would have a substantial impact in the region.
Risks remain in emerging market investments, however. In particular, any
declines in commodity prices or any actions by the U.S. Federal Reserve Board to
increase short-term interest rates would tend to discourage investments in the
emerging markets.
Market sentiment can change rapidly and create short-term distortions in equity
valuations. Over the long haul, these short-term distortions tend to be
corrected and investment returns should reflect the fundamental strengths and
opportunities of emerging markets.
5
<PAGE>
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EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of April 30, 1999
We intend to maintain our long-term discipline of emphasizing fundamental
analysis and individual stock selection.
Portfolio Management
--------------------
[PHOTO OF STEPHEN A. [PHOTO OF EDWIN D.
LIEBER APPEARS HERE] MISKA APPEARS HERE]
Stephen A.Lieber Edwin D.Miska
Tenure:November 1995 Tenure:November 1995
- ------------------------
CURRENT INVESTMENT STYLE
- ------------------------
[STYLE BLOCK APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 4/30/99.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
/1/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost.
Historical performance shown for Classes A, B and C prior to their inception is
based on the performance of Class Y, the original class offered. These
historical returns for Classes A, B and C have not been adjusted to reflect the
effect of each class' 12b-1 fees. These fees for Classes A, B and C are 0.25%,
1.00% and 1.00%, respectively. Class Y does not pay a 12b-1 fee. If these fees
had been reflected, returns would have been lower.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations. Risks of international investing are magnified in
emerging or developing markets.
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PERFORMANCE AND RETURNS/1/
- --------------------------------------------------------------------------------
Portfolio Inception Date: 11/1/95 Class A Class B Class C Class Y
Class Inception Date 6/3/96 6/3/96 6/3/96 11/1/95
................................................................................
Average Annual Returns(*)
................................................................................
6 months with sales charge 10.13% 10.24% 14.27% n/a
................................................................................
6 months w/o sales charge 15.65% 15.24% 15.27% 15.88%
................................................................................
1 year with sales charge 3.22% 2.76% 6.71% n/a
................................................................................
1 year w/o sales charge 8.40% 7.76% 7.71% 8.93%
................................................................................
3 years 14.13% 14.47% 15.16% 16.35%
................................................................................
Since Inception 15.63% 15.99% 16.52% 17.55%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
/*/ Adjusted for maximum applicable sales charge.
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LONG TERM GROWTH
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[LINE GRAPH APPEARS HERE]
EVERGREEN GLOBAL MORGAN STANLEY CONSUMER
LEADERS FUND CAPITAL INTERNAT'L PRICE
DATE CLASS A /1/ WORLD INDEX INDEX
10/31/95 9,525 10,000 10,000
4/30/96 10,643 11,363 10,161
4/30/97 11,983 12,593 10,423
4/30/98 15,330 16,312 10,573
4/30/99 16,617 18,981 10,767
Comparison of a $10,000 investment in Evergreen Global Leaders Fund, Class A
shares/1/, versus a similar investment in the Morgan Stanley Capital
International World (MSCI World) Index and the Consumer Price Index (CPI).
The Morgan Stanley Capital International World Index is a broad-based securities
market index of about 1,500 securities from major developed markets around the
world. The index is unmanaged and includes North America, Europe and the Pacific
Rim.
6 The MSCI World is an unmanaged index and does not include transaction costs
associated with buying and selling securities nor any management fees. The
CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
<PAGE>
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EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
How did the Fund perform?
The Evergreen Global Leaders Fund performed well during the six months ended
April 30, 1999, consistent with its long-term record. The Fund's Class A shares
had a total return of 15.65%, while the Class B and C shares had returns of
15.24% and 15.27%, respectively, and Class Y shares had a return of 15.88%.
These returns are before the deduction of any applicable sales charges. During
the same six-month period, the average global equity mutual fund had a total
return of 19.65%, as measured by Lipper, Inc., an independent monitor of mutual
fund performance, while the Morgan Stanley Capital International World (MSCI
World) Index had a return of 19.57%.
While the Fund's returns were quite strong, it lagged benchmarks such as the
MSCI World because of its conservative investment style. This style emphasizes
investments in large, blue-chip companies and de-emphasizes riskier
investments, such as in emerging markets. During the period, performance was
held back by the de-emphasis of emerging markets and by the strong dollar, which
undercut returns from non-dollar-denominated investments.
Portfolio
Characteristics
---------------
Total Net Assets $374,353,838
................................................
Number of Holdings 125
................................................
What was the investment environment like during for the six-month period?
A generally fertile environment for investing marked the period. The central
banks of the major industrial nations made a coordinated effort to lower
interest rates in response to the global financial crisis of 1998, calming fears
about a slowdown in the world's economy and creating a positive environment for
equity investing.
In the United States, corporate earnings continued to either meet or exceed
expectations. At the same time, low interest rates, low inflation and low
unemployment spurred strong corporate activity and healthy consumer spending.
In Europe, while the rate of economic growth slowed as a lagging effect of the
financial crises in Asia and Russia, we still saw increases in corporate profits
and improved productivity as European corporations continued to focus on
restructuring.
In the Far East, most notably in Japan, we saw signs that the effects of the
financial crisis of 1998 were starting to be contained. Asian governments were
reacting to lift the region's economies from recession. While it is still too
early to judge how those actions will translate into corporate profits, it
nevertheless appears that the worst conditions in that part of the world may
have passed. A more optimistic outlook for the Far East has encouraged
international investors to return, increasing their allocations to the region.
Geographic Allocation:
Top 10 Countries
----------------
(as a percentage of net assets)
United States 48.4%
..........................................................
United Kingdom 7.8%
..........................................................
Germany 6.7%
..........................................................
Japan 5.9%
..........................................................
Netherlands 5.0%
..........................................................
Italy 5.0%
..........................................................
Canada 4.8%
..........................................................
France 4.7%
..........................................................
Hong Kong 2.9%
..........................................................
Switzerland 2.8%
..........................................................
7
<PAGE>
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EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
What were your primary strategies in country and regional allocations?
Our long-term strategy has been to seek to invest in the 100 best companies in
the world. We rely on fundamental analysis to find strong companies at
attractive valuations, and we build our portfolio on a stock-by-stock basis,
rather than by macro-economic based policies. We use a strongly quantitative,
fundamental and valuation review in analyzing stocks, and we sell stocks that no
longer meet our investment criteria.
In searching for opportunities, we added significantly to our investments in the
United States, slightly lowering investments in Europe, primarily by reducing
our exposure to Europe, and adding slightly to the Far East. In Europe, we cut
our investments in Germany from 9.7% to 6.5% of net assets. The Russian and Far
Eastern problems have slowed corporate profit growth in Germany. At the same
time, we increased our weightings in Italy, to take advantage of attractive val-
uations, and in the United Kingdom, where lower interest rates had helped
stimulate the market. The primary reason our Far Eastern weighting increased was
the price appreciation of stocks, although we did add selectively to existing
positions in Japan and in Australia. In the generally positive environment for
equity investing, we invested our cash position into the market.
Top 5 Industries
----------------
(as a percentage of net assets)
Retailing & Wholesale 15.9%
.....................................................................
Healthcare Products & Services 10.5%
.....................................................................
Finance & Insurance 10.3%
.....................................................................
Electrical Equipment & Services 7.7%
.....................................................................
Printing, Publishing, Broadcasting & Entertainment 6.1%
.....................................................................
How did the Fund's holdings perform by country?
We did very well in the countries that we emphasized, most notably the United
States, where our investments rose by 34.1% during the six-month period, and the
United Kingdom. We also outperformed relevant benchmarks in Finland, Hong Kong,
Ireland, Italy and Portugal. Overall, our foreign investments had a return of
7.05%. The most visible disappointments were in Germany, where several larger
holdings failed to meet earnings expectations. We either eliminated or reduced
our holdings in the major disappointing companies. We also under-performed,
primarily because we were under-weighted in Japan when compared against market
indexes, and in Belgium, the Netherlands, Spain and Switzerland.
How did U.S. investments contribute significantly to performance?
Performance in the U.S. portfolio was fairly widely based, with 20 stocks having
returns of 25% or more in the six months. We had exceptional profit growth in a
large number of our domestic holdings.
The top U.S. performer in the portfolio was Charles Schwab & Co., the brokerage
firm, up 277% during the period, followed by Cisco Systems, the network and
internet systems company, up 81%. Other top performers included two retailers,
TJX Companies, up 79% and Gap, Inc., which rose by 66%. Another very strong
performer was Sundstrand Corp., an industrial company whose stock rose by 65%,
helped by an acquisition offer from United Technologies for cash and stock.
Among our top holdings from the United States, Wal-Mart Stores, the Fund's
largest overall holding, rose 33.2% and was up 81.6% for the past 12 months,
continuing its pattern of stellar operating results. Citigroup Inc., a recent
purchase, was up 60.3% for the six months as it continues to integrate its
merger with The Travelers Corp. Microsoft Corp. also
8
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
continued its strong appreciation, rising 53.2% and is up 80.0% over the last 12
months, reflecting optimism in its strong product line.
Top 10 Holdings
---------------
(as a percentage of net assets)
Seven-Eleven Japan Co. Ltd. 3.2%
..........................................................
Nintendo Co., Ltd. 2.7%
..........................................................
Citigroup, Inc. 2.5%
..........................................................
Wal-Mart Stores, Inc. 2.5%
..........................................................
Cisco Systems, Inc. 2.3%
..........................................................
Microsoft Corp. 2.3%
..........................................................
RWE AG 2.2%
..........................................................
Bombardier, Inc., Cl. B 2.1%
..........................................................
General Electric Co. 1.9%
..........................................................
Marsh & McLennan Co., Inc. 1.8%
..........................................................
Which investments outside the U.S. performed well?
Two of the best performers were Malaysian bank holding companies: Commerce
Asset Holdings, which rose by 122%; and RHB Capital, which rose by 67%. Other
top-performing investments included Luxottica Group, the Italian eyeglass
manufacturer and retailer, which rose by 76%; First Pacific Ltd., a diversified
holding company based in Hong Kong, which rose by 64% and Nokia Corp., the
cellular phone and wireless systems manufacturer based in Finland, which rose by
63%.
Among our larger Asian exposures, Japanese holdings Seven-Eleven Japan and
Nintendo performed modestly, up 13.0% and 7.0%, respectively. German conglomer-
ate RWE AG has performed disappointingly, falling 19.7% for 12 months, primarily
due to fears over the new German government's position on electric utility
regulation. The decline in the value of the new European currency, the euro,
also had an impact. On the positive side, Canadian aircraft and rail manufactur-
er Bombardier, Inc. has risen 31.0% on strong continued order flow.
What is your outlook?
We believe individual stock selection will be extremely important to the
performance of the Fund, especially in an environment characterized by high
stock valuations and declining expectations of further interest rate
reductions. We think the Fund is well positioned for this environment.
The Fund's investment discipline is based on the belief that the best
opportunities can be found in companies that can show persistent earnings
leadership over longer periods of time and that can demonstrate their ability to
grow as economic conditions change. In periods of change and uncertainty,
companies with exceptional management teams and healthy balance sheets should be
best positioned to take advantage of emerging opportunities.
We intend to maintain our long-term discipline of emphasizing fundamental
analysis and individual stock selection.
9
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of April 30, 1999
We think the outlook for domestic, small-cap companies is the most favorable it
has been in two years.
Portfolio Management
--------------------
[PHOTO OF GARY CRAVEN [PHOTO OF GILMAN GUNN
APPEARS HERE] APPEARS HERE]
Gary Craven Gilman Gunn
Tenure: January 1998 Tenure: June 1997
- ------------------------
CURRENT INVESTMENT STYLE
- ------------------------
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 4/30/99.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
/1/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost.
Historical performance shown for Classes B, C and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C and Y have not been adjusted to reflect the
effect of each class' 12b-1 fees. These fees for Classes A, B and C are 0.25%,
1.00% and 1.00%, respectively. Class Y does not pay a 12b-1 fee. If these fees
had been reflected, returns for Classes B and C would have been lower, while
returns for Class Y would have been higher.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations. Smaller capitalization stock investing may offer the
potential for greater long term results, however, it is also generally
associated with greater price volatility due to the higher risk of failure.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/1/
- --------------------------------------------------------------------------------
Portfolio Inception Date: 3/16/88 Class A Class B Class C Class Y
Class Inception Date 3/16/88 2/1/93 2/1/93 1/13/97
................................................................................
Average Annual Returns(*)
................................................................................
6 months with sales charge 15.84% 16.20% 20.21% n/a
................................................................................
6 months w/o sales charge 21.62% 21.20% 21.21% 19.99%
................................................................................
1 year with sales charge -11.31% -11.92% -8.44% n/a
................................................................................
1 year w/o sales charge -6.90% -7.59% -7.57% -8.62%
................................................................................
3 years -0.49% -0.45% 0.40% 1.20%
................................................................................
5 years 5.87% 5.78% 6.09% 6.94%
................................................................................
10 years 10.96% 10.99% 11.01% 11.52%
................................................................................
Since Inception 10.59% 10.63% 10.65% 11.10%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
6-month capital gain distributions
per share $1.22 $1.22 $1.22 $1.22
................................................................................
/*/ Adjusted for maximum applicable sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Evergreen Global Opp A Consumer Price Index MSCI World
Period End Market Value - US Value Value
4/30/89 9,528 10,000 10,000
4/30/90 9,840 10,471 9,462
4/30/91 10,751 10,983 10,355
4/30/92 12,428 11,332 10,364
4/30/93 15,598 11,698 12,056
4/30/94 20,264 11,974 13,550
4/30/95 21,227 12,339 14,943
4/30/96 27,347 12,687 17,823
4/30/97 23,714 13,014 19,753
4/30/98 30,384 13,201 25,586
4/30/99 28,287 13,443 29,773
Comparison of a $10,000 investment in Evergreen Global Opportunities Fund, Class
A shares/1/, versus a similar investment in the Morgan Stanley Capital
International World (MSCI World) Index and the Consumer Price Index (CPI).
The Morgan Stanley Capital International World Index is a broad-based securities
market index of about 1,500 securities from major developed markets around the
world. The index is unmanaged and includes North America, Europe and the Pacific
Rim.
10 The MSCI World is an unmanaged index and does not include transaction costs
associated with buying and selling securities nor any management fees. The
CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
How did the Fund perform during the period?
The Global Opportunities Fund's performance rebounded sharply during the six
months ended April 30, 1999. The Fund's Class A shares had a total return of
21.62%, while Class B and Class C shares had a total return of 21.20% and
21.21%, respectively, and Class Y shares had a return of 19.99%. These returns
are before the deduction of any applicable sales charges. During the period, the
Morgan Stanley Capital International World (MSCI World) Index had a return of
19.57%, while the average global small company stock fund had a return of
16.48%, according to Lipper, Inc., an independent monitor of mutual fund
performance.
Portfolio
Characteristics
---------------
..........................................................
Total Net Assets $180,544,479
..........................................................
Number of Holdings 164
..........................................................
What was the environment like for small-cap stock investing during the period?
Small company stocks, which have been out of favor for the previous three years
while investors preferred large-company stocks, staged a strong comeback dur-
ing the six months, especially in the United States, Japan and the United
Kingdom.
Globally, it was a time of change and improvement. Small company stocks in major
markets rallied as interest rates throughout the world declined and investors
became less worried about the possibility that the problems in emerging markets
would lead to a slow-down in world economic growth. As a result, many of the
more value-oriented asset classes that had been out of favor started to recover,
including stocks of cyclical and commodity-based companies in addition to small
companies.
How have the Fund's assets been allocated, between the U.S. and foreign markets?
We increased the allocation to the United States during the six-month period in
recognition of the opportunities created by the relatively low valuations and
high earnings growth of many domestic small company stocks. At the end of the
period, almost half the Fund's assets were invested in the U.S., while the cash
position of the Fund was reduced substantially.
Geographical Allocation:
Top 10 Countries
----------------
(as a percentage of net assets)
United States 46.6%
..........................................................
United Kingdom 12.8%
..........................................................
Japan 12.0%
..........................................................
Switzerland 5.2%
..........................................................
France 3.4%
..........................................................
Australia 3.4%
..........................................................
Ireland 3.0%
..........................................................
Netherlands 2.8%
..........................................................
Germany 2.5%
..........................................................
Italy 1.9%
..........................................................
What were some of the factors that contributed to performance in the U.S.
portion of the portfolio?
G. Craven: The U.S. portion of the portfolio had very strong performance
throughout the period. Early in the six months, performance was driven by a
rebound in small stocks in general, but especially in technology and
particularly in internet-related stocks. The Fund participated in this rally,
led by investments in internet-
11
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
related, telecommunications and semi-conductor equipment stocks.
These sectors tended to peak in mid-January, while the market rally broadened as
investors showed renewed interest in energy and other cyclical stocks that tend
to move with the direction of economic growth. During the final three months of
the period, we substantially increased our holdings in energy-related companies
such as Newfield Exploration Co. and Global Industries, two exploration and
drilling companies. We also increased the investments in chemical companies
such as Arch Chemicals and Cytec Industries. At the same time, we substantially
decreased our holdings in internet-related and semi-conductor equipment com-
panies, although we continued to invest in the telecommunications area for its
continued growth potential.
Our decision to pull back from internet-related stocks was motivated by the very
high stock valuations to which this group had climbed. These stock prices
implied that every internet stock would be a huge winner, but it is likely that
only a few ultimately will be winners. The high risk, combined with massive
investor exuberance, caused us to reduce our internet exposure substantially. By
the end of the six-month period, the Fund's domestic internet holdings had
essentially been reduced to two companies, Sportsline USA and Marketwatch.com.
Among the strong technology-related performers that we sold were Exodus
Communications, which had a 467% price appreciation during the period, and
Broadvision, which rose by 287%.
Other strong contributors during the six months included: Labor Ready, a
temporary help company that rose by 118%; PMC-Sierra, a telecommunications
company whose stock had a 113% return; and Premier Technologies, which provides
a package of communications-related services to business and which rose by
187%.
Top 5 Industries
----------------
(as a percentage of net assets)
Business & Public Services 17.0%
..........................................................
Machinery & Engineering 8.7%
..........................................................
Health & Personal Care 6.8%
..........................................................
Technology 5.8%
..........................................................
Banking 5.0%
..........................................................
What have been some of the factors that have influenced the performance of the
foreign portion of the Fund?
G. Gunn: To take advantage of improving small-company opportunities in Japan,
we have increased the Fund's weighting there from about 5% of net assets to over
11%. We also have trimmed our weighting in Europe, somewhat, to put more money
into the United States and in Japan.
In managing the foreign portion, we take a stock-by-stock approach rather than
emphasizing sectors or industries. However, in Japan we have been alert to
opportunities created by general corporate restructuring and outsourcing, as
industry tries to find ways to compete less expensively. We also have been alert
to opportunities from technology-oriented companies.
The best performer during the six months was an internet-related investment,
Yahoo Japan Corp. Yahoo Japan, like many internet-related stocks in the United
States, had exceptional performance in early 1999. Its stock rose by 734% during
the first four months of 1999.
Other companies that were significant performers during the six month
included: Sidel, a French packaging company, Aegis Group, Plc, an
advertising-buying company in the United Kingdom, and Sonic Healthcare, which
operates medical laboratories in Australia. Sidel was helped by its acquisition
of patents for a new extended-life, plastic bottle which
12
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
can be used by beer and soft drink companies. Aegis Group, which buys
advertising space for larger companies, has shown that it can operate much
more efficiently than the internal media-buying departments of large
advertising agencies. It had a 54% return in the first four months of 1999.
Sonic Healthcare's pathology laboratories enable hospitals and other
facilities to run pathology tests more efficiently. Sonic had a 62% return in
the first four months of 1999.
Top 10 Holdings
---------------
(as a percentage of net assets)
Aegis Group Plc 1.9%
..........................................................
PMC-Sierra, Inc. 1.9%
..........................................................
Lindt & Spruengli AG 1.9%
..........................................................
Yahoo Japan Corp. 1.7%
..........................................................
DCC Plc 1.6%
..........................................................
Labor Ready, Inc. 1.5%
..........................................................
Premiere Technologies, Inc. 1.5%
..........................................................
Mediolanum SpA 1.5%
..........................................................
Big Flower Holdings, Inc. 1.4%
..........................................................
Parity Plc 1.4%
..........................................................
What is your outlook for international small-cap stock investing?
G. Gunn: For the first time in three years, we are starting to see some small
company stocks outperform larger-cap stocks, especially in the United Kingdom
and in Japan.
We are encouraged because small-cap stocks tend to do well in periods of low
interest rates and economic expansion, and we anticipate seeing this type of
environment unfold in both Europe and Japan. Having said this, our strategy
remains focused on stock selection. We manage this portfolio by searching for
inherently attractive businesses.
What is your outlook for small-cap investing in the United States?
G. Craven: We think the outlook for domestic, small-cap companies is the most
favorable it has been in two years. A strengthening global economy should be
positive for many types of small-cap manufacturing companies that have been
neglected in recent years. These companies offer the potential for strong earn-
ings growth, and yet they continue to have very attractive stock valuations.
Given these factors, we believe small caps are likely to be one of the stronger
performer areas of the stock market.
It is important to keep in mind that technology stocks and small stocks always
tend to be volatile; however, we believe the long-term outlook is very good.
Small capitalization investing typically carries additional risks since small
companies generally have a higher risk failure. Although it may offer the
potential for greater long-term results, it may also result in greater price
volatility.
13
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
International Growth Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of April 30, 1999
We believe the Japanese market should do better because of restructuring, even
though the economy still is very weak.
Portfolio
Management
--------------
[PHOTO OF GILMAN GUNN APPEARS HERE]
Gilman Gunn
Tenure: January 1991
- ------------------------
CURRENT INVESTMENT STYLE
- ------------------------
[STYLE BLOCK APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 4/30/99.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
/1/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost.
Historical performance shown for Classes A, C and Y prior to their inception is
based on the performance of Class B, the original class offered. These
historical returns for Classes A and Y have been adjusted to eliminate the
effect of higher 12b-1 fees applicable to Class B. The 12b-1 fees for Classes A,
B and C are 0.25%, 1.00% and 1.00%, respectively. Class Y does not pay a 12b-1
fee. If these fees had not been eliminated, returns would have been lower.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations. Risks of international investing are magnified in
emerging or developing markets.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/1/
- --------------------------------------------------------------------------------
Portfolio Inception Date: 9/6/79 Class A Class B Class C Class Y
Class Inception Date 1/20/98 9/6/79 3/6/98 3/9/98
................................................................................
Average Annual Returns(*)
................................................................................
6 months with sales charge 2.42% 2.27% 6.27% n/a
................................................................................
6 months w/o sales charge 7.50% 7.27% 7.27% 7.79%
................................................................................
1 year with sales charge -8.23% -8.89% -5.05% n/a
................................................................................
1 year w/o sales charge -3.60% -4.09% -4.09% -3.60%
................................................................................
3 years 9.54% 9.75% 10.57% 11.46%
................................................................................
5 years 8.84% 8.85% 9.13% 10.09%
................................................................................
10 years 6.80% 6.44% 6.43% 7.55%
................................................................................
Since Inception 10.98% 10.58% 10.46% 11.47%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
/*/ Adjusted for maximum applicable sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Evergreen International Growth B Consumer Price Index - US MSCI EAFE
Period End Market Value Value Value
<S> <C> <C> <C>
4/30/89 10,000 10,000 10,000
4/30/90 8,672 10,471 8,715
4/30/91 8,597 10,983 9,125
4/30/92 9,051 11,332 8,379
4/30/93 10,268 11,698 10,227
4/30/94 12,065 11,974 11,960
4/30/95 11,581 12,339 12,664
4/30/96 13,815 12,687 14,151
4/30/97 15,408 13,014 14,067
4/30/98 19,471 13,201 16,772
4/30/99 18,675 13,443 18,417
</TABLE>
Comparison of a $10,000 investment in Evergreen International Growth Fund, Class
B shares/1/, versus a similar investment in the Morgan Stanley Capital
International Europe, Australasia, and Far East (MSCI EAFE) Index and the
Consumer Price Index (CPI).
The Morgan Stanley Europe, Australasia and Far East Index is an unmanaged,
capitalization index representing the industry composition and a sampling of
small, medium and large capitalization companies from the aforementioned global
markets.
14 The MSCI EAFE is an unmanaged index and does not include transaction costs
associated with buying and selling securities nor any management fees. The
CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
International Growth Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
How did the Fund perform?
The Evergreen International Growth Fund had good, positive returns for the six
months ended April 30, 1999. The Fund's Class A shares had a total return of
7.50%, while Class B and Class C shares each had returns of 7.27% and Class Y
shares had a return of 7.79%. These returns are before the deduction of any
applicable sales charges. During the same six-month period, the Morgan Stanley
Capital International Europe, Australasia, and Far East (MSCI EAFE) Index, a
commonly used benchmark for foreign stock performance, had a return of 15.28%,
while the average international mutual fund had a return of 15.11%, according to
Lipper, Inc., an independent monitor of mutual fund performance.
Portfolio
Characteristics
---------------
Total Net Assets $667,299,847
..........................................................
Number of Holdings 175
..........................................................
What was the investment environment like during the six-month period?
It was a period of change and improvement. Continued declines in interest rates
throughout the world, combined with a relaxation of fears about emerging market
problems helped many of the more value-oriented asset classes start to improve
their performance. Many of these asset classes had been out of favor for
several years.
The Japanese market is a good example. After suffering through a nine-year
decline, the Japanese market finally started to move up in the first calendar
quarter of 1999. Also rallying were the metals, mining and commodity-based
stocks that had been out-of-favor since 1994. Emerging markets, which had gone
through a severe three-year, bear market, also showed signs of reviving, as did
small company stocks, particu-larly in the United Kingdom and Japan.
Among sectors, telecommunications and banking stocks were among the performance
leaders. Banks were helped considerably by the declining interest rates.
Geographic Allocation:
Top 10 Countries
----------------
(as a percentage of net assets)
Japan 20.0%
..........................................................
United Kingdom 16.2%
..........................................................
France 14.4%
..........................................................
Germany 7.3%
..........................................................
Netherlands 6.7%
..........................................................
Italy 6.4%
..........................................................
Switzerland 5.0%
..........................................................
United States 4.7%
..........................................................
Australia 3.9%
..........................................................
Sweden 3.1%
..........................................................
What were your principal strategies during the period?
We were defensively positioned at the start of the fiscal period in November
1998.
We were cognizant of the tremendous volatility in international markets during
1998, which continued into early 1999. For example, while European markets
rallied through the first nine months of 1998, they fell dramatically during the
final three months of the year. Then, the new European currency, the euro, was
introduced in January 1999, and promptly fell by 8% of its value by April,
thereby undercutting any positive returns from investments denominated in the
euro.
15
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
International Growth Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
The Russian government's default on part of its external debt and devaluation of
the Russian currency in August 1998 had created significant volatility in global
markets. In January 1999, Brazil allowed its currency to be devalued, although
the effects of this decision were not as significant as the effects of the
Russian crisis.
The result of all these events was to create uncertainty in international
markets and to influenceus to remain conservative in our strategy.
As the period progressed, we became less defensive in recognition of several
positive developments, including: the decline in interest rates throughout the
world; the muted reaction to the Brazilian devaluation and the revival of the
Japanese market.
We reduced our cash position, which was about 18% of net assets at the start of
the period, to about 6% by April 30. We also increased our investments in Japan,
which started the period at 8.5% of net assets, to about 21% at the end of the
period. We increased the Japanese investments primarily by investing from the
cash position, while lightening up somewhat on our European holdings. We also
sold some small-cap companies, as well as some of our defensive positions in
companies such as Nestle's and Unilever. After avoiding the sector entirely, we
began investing in commodity-based stocks, although we were reluctant until late
in the period to move back into any emerging markets.
As a general rule, we manage this portfolio to seek lower volatility than most
international equity funds. This has been a good international strategy
historically, but it did not work well during the most recent period.
Top 5 Industries
----------------
(as a percentage of net assets)
Banking 14.0%
..........................................................
Health & Personal Care 11.3%
..........................................................
Telecommunications 8.5%
..........................................................
Energy Sources 6.7%
..........................................................
Insurance 6.0%
..........................................................
What type of investments contributed to performance during the six months?
The Fund benefited significantly from the rebound in Japanese stock prices,
which was led by the financial sector. This sector had been severely depressed
for several years because of the bad loans issued by banks, but the Japanese
government has in effect bailed out the banks from these bad loans. One of the
top performers for the Fund was Sakura Bank.
Elf Acquitaine, the French oil company, was another strong contributor. This
investment, an example of our return to more commodity-based stocks, had very
strong performance after OPEC successfully limited worldwide oil production,
triggering a rise in oil prices.
Among smaller companies, Sonic Healthcare of Australia was a standout performer.
Sonic Healthcare operates pathology laboratories, which enable hospitals and
other facilities to run pathology tests more efficiently.
The increase in merger-and-acquisition activity in Europe also had positive
ramifications for performance. One of the Fund's larger positions is Telecom
Italia, which has received competing takeover bids from Olivetti and Deutsche
Telecom.
16
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
International Growth Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
We have continued to find opportunities in the media and communications
industry. Coridant Communications, an advertising company in the United Kingdom,
was a very strong performer during the period, up 76%.
Top 10 Holdings
---------------
(as a percentage of net assets)
Societe Nationale Elf Aquitaine SA 2.4%
..........................................................
Nokia AB OY 2.0%
..........................................................
Telecom Italia SpA 2.0%
..........................................................
National Australia Bank Ltd. 2.0%
..........................................................
Nippon Telephone & Telegraph Corp. 1.9%
..........................................................
Rhone-Poulenc SA, Cl. A 1.8%
..........................................................
HSBC Holdings Plc 1.7%
..........................................................
Total SA, Cl. B 1.6%
..........................................................
AXA-UAP 1.6%
..........................................................
ArnMondadori Edit SpA 1.5%
..........................................................
What is your outlook?
We expect to see additional investment opportunities in Japan and in Europe. We
believe the Japanese market should do better because of restructuring, even
though the economy still is very weak. We also believe European markets should
benefit from low interest rates, re-structuring, and consolidation within many
industries. As a result, we intend to remain fully invested.
17
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of April 30, 1999
We believe there has been a notable improvement in the fundamental outlook for
Latin America.
Portfolio Management
--------------------
[PHOTO OF [PHOTO OF
FRANCIS CLARO ANTONIO DOCAL
APPEARS HERE] APPEARS HERE]
Francis Claro Antonio Docal
Tenure: October 1996 Tenure: October 1996
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE
- --------------------------------------------------------------------------------
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 4/30/99.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
/1/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost.
Historical performance shown for Class Y prior to its inception is based on the
performance of Class A, one of the original classes offered along with Classes B
and C. These historical returns for Class Y include the effect of the 0.25%
12b-1 fee applicable to Class A. Class Y does not pay a 12b-1 fee. If these fees
had not been reflected, returns for Class Y would have been higher. Classes B
and C each pay a 12b-1 fee of 1.00%.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations. Risks of international investing are magnified in
emerging or developing markets. Funds that concentrate their investments in a
single country or region may face increased risk of price fluctuation over more
diversified funds due to adverse developments within that country or region.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/1/
- --------------------------------------------------------------------------------
Portfolio Inception Date: 11/1/93 Class A Class B Class C Class Y
Class Inception Date 11/1/93 11/1/93 11/1/93 3/30/98
................................................................................
Average Annual Returns *
................................................................................
6 months with sales charge 9.45% 9.44% 13.62% n/a
................................................................................
6 months w/o sales charge 14.95% 14.44% 14.62% 15.04%
................................................................................
1 year with sales charge -29.92% -30.55% -27.71% n/a
................................................................................
1 year w/o sales charge -26.42% -26.89% -26.98% -26.23%
................................................................................
3 years 0.11% 0.24% 0.98% 1.87%
................................................................................
5 years 2.82% 2.80% 3.05% 3.90%
................................................................................
Since Inception 2.57% 2.62% 2.74% 3.55%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
* Adjusted for maximum applicable sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
MSCI
EVERGREEN EMF LATIN CONSUMER
LATIN AMERICAN MSCI WORLD AMERICA PRICE S&P 500
FUND INDEX INDEX INDEX INDEX
<S> <C> <C> <C> <C> <C>
10/31/93 9,527 10,000 10,000 10,000 10,000
4/30/94 9,276 10,896 10,798 10,110 9,862
4/30/95 9,018 12,016 8,857 10,418 11,584
4/30/96 10,625 14,333 9,892 10,712 15,084
4/30/97 14,106 15,885 12,772 10,988 18,876
4/30/98 15,215 20,575 13,310 11,145 26,627
4/30/99 11,208 23,942 11,086 11,350 32,441
</TABLE>
Comparison of a $10,000 investment in Evergreen Latin America Fund, Class A
shares/1/, versus a similar investment in the Morgan Stanley Capital
International World (MSCI World) Index, Morgan Stanley Capital International
EMF Latin America (MSCI EMF Latin America) Index and the Consumer Price Index
(CPI).
The Morgan Stanley Capital International World Index is a broad-based securities
market index of about 1,500 securities from major developed markets around the
world. The index is unmanaged and includes North America, Europe and the Pacific
Rim.
The Morgan Stanley Capital International Latin American Index is an unmanaged
index representing all emerging markets free countries from Latin America.
The Standard & Poor's 500 Composite Stock Index is an unmanaged index of 500
publicly traded U.S. stocks and is often used to indicate the performance of the
overall stock market.
The MSCI World, the MSCI EMF Latin America and the S&P 500 are unmanaged indices
and do not include transaction costs associated with buying and selling
securities or any management fees. The CPI is a commonly used measure of
inflation and does not represent an investment return. It is not possible to
invest directly in an index.
18
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
How did the Fund perform?
In a substantial market rebound, the Evergreen Latin America Fund posted strong
returns for the six months ended April 30, 1999. The Fund's Class A shares had a
total return of 14.95%, while Class B and C shares had returns of 14.44% and
14.62%, respectively, and Class Y shares had a return of 15.04%. These returns
are before the deduction of any applicable sales charges. During the same
six-month period, the Morgan Stanley Capital International EMF Latin America
(MSCI EMF Latin America)Index had a return of 28.33% and the average Latin
America mutual fund had a return of 25.52%, as measured by Lipper, Inc., an
independent monitor of mutual fund performance.
Portfolio
Characteristics
---------------
Total Net Assets $41,156,009
..........................................................
Number of Holdings 69
..........................................................
What was the investment environment like, and how did that affect strategy and
performance during the period?
We started the fiscal period in November 1998 with a conservative strategy and a
high cash position of about 40% of net assets. This was in recognition of
investor unease about emerging markets. While we saw some signs of stabilization
following the significant market corrections in reaction to the Russian bond
default in August 1998, investors still were concerned about emerging markets
and the possibility that either Brazil or China might devalue their currencies.
The first weeks of January 1999 witnessed a strong sell-off in Latin American
markets. The air was cleared in mid-January, however, when the Brazilian
government, as anticipated, finally allowed its currency to be devalued.
Stock markets throughout Latin America began a strong rally that lasted through
the end of the fiscal period on April 30.
While our conservative strategy helped relative performance until mid-January,
the Fund's large cash position meant that we did not fully participate at the
start of the subsequent rally. We have been investing into this rally, however,
and performance improved markedly in March and April, when we witnessed the
strongest market in Latin America in the past three years. This rally reflected
the view of international investors that the region's currencies had stabilized,
that the recession was coming to an end and that economic growth and corporate
profits should grow through the remainder of 1999 and into 2000.
Geographical/Asset
Allocation
----------
(as a percentage of net assets)
Mexico 37.8%
..........................................................
Brazil 24.3%
..........................................................
Argentina 15.8%
..........................................................
United States 8.2%
..........................................................
Peru 6.1%
..........................................................
Chile 5.6%
..........................................................
Venezuela 1.9%
..........................................................
Spain 1.3%
..........................................................
Colombia 0.3%
..........................................................
Did any specific factors help the Latin American markets to turn and start to
rally?
Several external factors helped significantly:
First were the actions by the U.S. Federal Reserve Board and the central banks
of other developed nations to reduce short-term interest rates. This helped
promote the flow of money back into emerging markets, including Latin America.
19
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
Second, was the international support, led by the International Monetary Fund,
to Brazil, enabling that country to replenish its international reserves that
had been drained while defending its currency. This support gave the Brazilian
government important time and credibility in implementing fiscal reforms. One
result was that the Brazilian currency, the real, began recovering its value
much faster than had the currencies of other emerging nations that had devalued.
Third, was the uptick in world commodity prices. The revival of oil prices
particularly helped Mexico and Argentina, while improving prices in commodities
such as copper, aluminum and pulp had a generally positive effect throughout the
region.
These factors, combined, brought an injection of new investment dollars into
Latin America, where the markets had been stymied with extremely low trading
volumes. Even a little extra liquidity on the margin had a significant effect on
market performance.
What were your principal strategies in this changed environment, and how did
they affect performance?
We went from having a large cash position to being fully invested to take
advantage of low stock valuations. We invested in blue chip stocks in the larger
Latin America markets, especially Mexico and Brazil. We concentrated on those
stocks with low valuations that were more likely to attract outside investors.
Performance was helped by our heavy overweight in Mexican blue chip stocks, our
investments in Argentine blue chip stocks, and our heavy emphasis on cyclical
stocks, which benefited from the rise in commodity prices.
Top 5 Industries
----------------
(as a percentage of net assets)
Telecommunications 27.8%
..........................................................
Energy Sources 15.5%
..........................................................
Beverages & Tobacco 8.5%
..........................................................
Merchandising 6.8%
..........................................................
Building Materials & Components 5.8%
..........................................................
What has been your policy with respect to Brazil?
Brazil represented about 24% of the portfolio at the end of April. Shortly after
the devaluation in mid-January, we invested in select Brazilian companies,
stressing exporters, companies with low U.S. -dollar debt and stable earnings.
Once the market turned around and the Brazilian economy started improving, we
expanded the list of companies in which we invested.
We believe that Brazil remains a country with tremendous potential that has made
solid progress in solving its economic problems. It also is a country that
offers some of the most attractive stock prices for the long-term.
What were some of the specific investments that helped performance?
A significant performer was YPF, an Argentine oil company that we over-weighted
when oil prices started increasing. The stock has done very well and received an
extra boost when the company received a takeover offer from Repsol, a Spanish
oil company.
In Mexico, the blue chip stocks in banking, commodities and beverages did very
well. Among the strong performers were: Banacci, a leading Mexican bank; Cemex,
among the world's largest cement companies and Femsa, a soft drink and beer
bottler.
20
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
Top 10 Holdings
---------------
(as a percentage of net assets)
Telecomunicacoes Brasileiras SA,
ADR ("Telebras") 6.4%
..........................................................
YPF SA, Cl. D, ADR 6.0%
..........................................................
Telefonos de Mexico SA, ADR 5.4%
..........................................................
Perez Compancia SA, Cl. B 4.1%
..........................................................
Telefonica del Peru SA, Cl. B, ADR 3.6%
..........................................................
Centrais Eletricas Brasileiras SA, ADR 3.5%
..........................................................
Empresa Brasileira de Aeronautica SA 3.3%
..........................................................
Cemex SA de CV, Ser. B 3.0%
..........................................................
Tele Norte Leste Participacoes SA, ADR 2.6%
..........................................................
Fomento Economico Mexicano, Ser. B, ADR 2.6%
..........................................................
What is your outlook in Latin America?
We believe there has been a notable improvement in the fundamental outlook for
Latin America. The region offers attractive investment opportunities because of
rising commodity prices, low stock valuations, improved access to international
financial markets and fairly valued exchange rate levels. All these factors have
helped attract investor interest to Latin America, underpinning the rally that
began in mid-January.
The improvement in the currency exchange rate outlook is important. Now, both
the Brazilian and the Mexican currencies have flexible exchange rates. This
means that the exchange rates can correct through gradual market fluctuations,
as opposed to traumatic devaluations. This helps bring stability to the markets.
Emerging signs of a revival of global economic growth are important in Latin
America. If global growth starts to accelerate, we should see higher commodity
prices, which would have a substantial impact in the region. Risks remain in
investing in Latin America, however. In particular, any declines in commodity
prices or any actions by the U.S. Federal Reserve Board to increase short-term
interest rates would have negative effects in the region.
Market sentiment can change rapidly and create short-term distortions in equity
valuations. Over the long haul, these short-term distortions tend to be
corrected and investment returns should reflect the Latin American region's
fundamental strengths.
21
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of April 30, 1999
In managing the Fund, we have included stocks we believe have the assets and
strong balance sheets necessary to survive difficult times, as well as those
with leverage to participate in an upturn when it comes.
Portfolio
Management
--------------
[PHOTO OF
JOHN MADDEN
APPEARS HERE]
John Madden
Tenure: October 1995
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE
- --------------------------------------------------------------------------------
[GRAPHIC APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 4/30/99.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
/1/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost.
Historical performance shown for Classes A and C prior to their inception is
based on the performance of Class B, the original class offered. These
historical returns for Class A have been adjusted to eliminate the effect of the
higher 12b-1 fees applicable to Class B. The 12b-1 fees for Classes A, B and C
are 0.25%, 1.00% and 1.00%, respectively. If these fees had not been eliminated,
returns would have been lower.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations.
Funds that concentrate their investments in a single industry may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that industry.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS 1
- --------------------------------------------------------------------------------
Portfolio Inception Date: 1/30/78 Class A Class B Class C
Class Inception Date 1/20/98 1/30/78 1/29/98
................................................................................
Average Annual Returns *
................................................................................
6 months with sales charge -0.41% -0.85% 3.15%
................................................................................
6 months w/o sales charge 4.55% 4.15% 4.15%
................................................................................
1 year with sales charge -25.84% -26.56% -23.47%
................................................................................
1 year w/o sales charge -22.14% -22.69% -22.69%
................................................................................
3 years -21.39% -21.41% -20.68%
................................................................................
5 years -10.68% -10.79% -10.47%
................................................................................
10 years -1.13% -1.46% -1.46%
................................................................................
Since Inception 7.13% 6.76% 6.71%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00%
Front End CDSC CDSC
................................................................................
* Adjusted for maximum applicable sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Evergreen Precious Metals B Consumer Price Index - US S & P 500 Composite S&P Gold Index
Period End Market Value Value Value
<S> <C> <C> <C> <C>
4/30/89 10,000 10,000 10,000 $10,000
4/30/90 9,819 10,471 11,055 $11,734
4/30/91 9,071 10,983 13,003 $9,647
4/30/92 8,979 11,332 14,828 $8,330
4/30/93 11,822 11,698 16,197 $12,034
4/30/94 15,012 11,974 17,059 $13,404
4/30/95 14,138 12,339 20,038 $13,643
4/30/96 17,307 12,687 26,092 $17,118
4/30/97 13,259 13,014 32,650 $11,281
4/30/98 11,171 13,201 46,058 $10,654
4/30/99 8,636 13,443 56,114 $8,758
</TABLE>
Comparison of a $10,000 investment in Evergreen Precious Metals Fund Class B
shares/1/, versus a similar investment in the Standard & Poor's 500 Composite
Stock Index (S&P 500), the Lipper Gold Fund Index (LGFI) and the Consumer Price
Index (CPI).
The Standard & Poor's 500 Composite Stock Index is an unmanaged index of 500
publicly traded U.S. stocks and is often used to indicate the performance of the
overall stock market.
The Lipper Gold Funds Index measures the average return of the 10 largest gold
funds, excluding sales charges, as tracked by Lipper, Inc.
The S&P 500 and the LGFI are unmanaged indices and do not include transaction
costs associated with buying and selling securities or any management fees. The
CPI is a commonly used measure of inflation and does not represent an investment
return. It is not possible to invest directly in an index.
22
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
How did the Fund perform during the period?
For the six months ended April 30, 1999, Class A shares returned 4.55% and Class
B and C shares each returned 4.15%. These returns are unadjusted for any
applicable sales charge. In comparison the Lipper Gold Funds Index
(LGFI) returned 5.28%. During the period, gold stocks and gold bullion lagged
the general stock market. The XAU Index, which is composed largely of North
American gold stocks, declined 2.61% and the gold bullion market fell 2.37%.
Portfolio
Characteristics
---------------
Total Net Assets $96,987,223
..........................................................
Number of Holdings 45
..........................................................
What was the investment environment like during the period?
During the six months, the investment environment for gold was mixed. While gold
prices rallied in early March and again in April, the trend during the period
was down. Gold was affected by the same factors that have governed the metal's
behavior for several years: sales, or talk of sales, from central banks and
other organizations, such as the International Monetary Fund (IMF), and forward
selling by the companies whenever the price of gold improved enough to make such
sales worthwhile.
Did a more positive economic environment in Asia and Latin America affect gold
prices?
Improving economies in these regions have a twofold impact. Initially, we felt
that the prospect of international economic problems might help gold by increas-
ing investor interest in the metal as a safe haven. To the extent that the
system seems to have weathered the storms of currency devaluation and recession,
gold did not benefit.
Increasing economic growth rates and projections, however, boosted commodity
prices and gold participated in this trend. We believe that the rapid
turn-around in commodity prices, especially in the prices of oil and base
metals, was responsible for the flurry of interest in gold in April. Gold
benefited because of its commodity characteristics and because the economic
recovery driving commodity prices could eventually result in higher inflation.
Investors often use gold as a hedge against inflation.
Geographical
Allocation
----------
(as a percentage of net assets)
Canada 43.0%
..........................................................
South Africa 33.0%
..........................................................
United States 18.3%
..........................................................
Australia 8.3%
..........................................................
Papua New Guinea 0.4%
..........................................................
Did you make any significant changes to the portfolio during the period?
We made only modest changes during the six months. We sold all or part of the
Fund's holdings in several companies whose cost structures or need for capital
presented problems. We sold Pioneer Group in the U.S., Perilya in Australia,
Durban Deep in South Africa and Ariel Resource and Dayton in Canada. On a more
positive note, we also sold Sutton Resources and Argentina Gold when their stock
prices rose after receiving tender offers. We made no significant changes in the
geographic make-up of the Fund.
23
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------
Portfolio Manager Interview
Industry Allocation
-------------------
(as a percentage of net assets)
Gold Mining 64.0%
..........................................................
Metals & Mining 35.9%
..........................................................
How did the non-gold companies in the portfolio contribute to performance?
At the end of the period, non-gold assets--diamonds and platinum--accounted for
18% of the portfolio. Several of the Fund's non-gold holdings contributed to
performance. In our last report we mentioned the strong performance of
Stillwater Mining, a palladium- platinum producer, which continued to do well.
In addition, the stock price of Impala Platinum, the second largest platinum
producer in South Africa, doubled in the past six months making it one of the
Fund's largest holdings. Also, Anglo American Platinum, another South African
company, gained 25% during the six-month period.
Top 10 Holdings
---------------
(as a percentage of net assets)
Franco Nevada Mining Ltd. 8.8%
..........................................................
Euro Nevada Mining Ltd. 7.5%
..........................................................
Stillwater Mining Co. 7.1%
..........................................................
AngloGold Ltd. 5.6%
..........................................................
Barrick Gold Corp. 5.4%
..........................................................
Harmony Gold Mining Ltd. 5.3%
..........................................................
Gencor Ltd. 4.6%
..........................................................
Ashanti Goldfields Ltd., GDR 4.5%
..........................................................
Newmont Mining Corp. 4.2%
..........................................................
Impala Platinum Holdings Ltd. 4.1%
..........................................................
What is your outlook?
While gold had a difficult six months, there are reasons for optimism. The metal
began to show strength at the end of April, and while the rally was capped and
reversed by the announcement of planned sales by the Bank of England, the price
of gold remained at about the low of last fall. We believe this reflects the
realization that future central bank sales have leveled off and will be less of
a factor in the future than they have been in the past few years. We believe
that sales by the United Kingdom will not be followed by similar sales of other
major European gold holders.
More importantly, the strength in gold reflects growing inflation concerns at
the Federal Reserve. The Fed is in a difficult position. It faces the prospect
of raising rates to cool off the economy. However, such a move would put the
gains of the stock market in peril. We do not know if the threat of inflation is
real. However, it is not only gold investors who are carefully watching the
inflation trend. Inflation-indexed bonds have begun to attract a considerable
following. Gold prices react positively to concerns about inflation and currency
valuations. Global economic recovery with attendant inflation would be as
dramatic for gold as global recession and devaluation. In working hard to avoid
the latter, the groundwork may have been laid for the former. The stage may be
set for a strong gold market. In managing the Fund, we have included stocks that
we believe to have the assets and strong balance sheets necessary to survive
difficult times, as well as those with leverage to participate in an upturn when
it comes. The results for the past six months indicate we are currently doing
well at striking a balance.
24
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Emerging Markets Growth Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # ----------------------------------- Year Ended
(Unaudited) 1998 # 1997 # 1996 # 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 7.90 $ 9.99 $ 8.46 $ 7.90 $ 8.17 $10.00
------ ------ ------ ------ ------ ------
.....................................................................................................
Income from investment
operations
.....................................................................................................
Net investment income (0.01) 0.14 0 (0.01) 0.05 0
.....................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.85 (1.98) 1.53 0.62 (0.32) (1.83)
------ ------ ------ ------ ------ ------
.....................................................................................................
Total from investment
operations 0.84 (1.84) 1.53 0.61 (0.27) (1.83)
------ ------ ------ ------ ------ ------
.....................................................................................................
Distributions to
shareholders from
.....................................................................................................
Net investment income (0.01) 0 0 (0.05) 0 0
.....................................................................................................
Net realized gains 0 (0.25) 0 0 0 0
------ ------ ------ ------ ------ ------
.....................................................................................................
Total distributions to
shareholders (0.01) (0.25) 0 (0.05) 0 0
------ ------ ------ ------ ------ ------
.....................................................................................................
Net asset value, end of
period $ 8.73 $ 7.90 $ 9.99 $ 8.46 $ 7.90 $ 8.17
------ ------ ------ ------ ------ ------
.....................................................................................................
Total return* 10.68% (18.89%) 18.09% 7.70% (3.30%) (18.30%)
.....................................................................................................
Ratios and supplemental
data
.....................................................................................................
Net assets, end of
period (thousands) $8,611 $6,195 $2,777 $1,645 $1,117 $ 867
.....................................................................................................
Ratios to average net
assets
Expenses 2.26%+ 2.04% 1.75% 1.74% 1.73%+ 1.78%+
.....................................................................................................
Net investment income (0.18%)+ 1.54% (0.02%) (0.09%) 0.76%+ 0.12%+
.....................................................................................................
Portfolio turnover rate 155% 380% 157% 107% 65% 17%
.....................................................................................................
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # ----------------------------------- Year Ended
(Unaudited) 1998 # 1997 # 1996 # 1995 (b) December 31, 1994 (a)
- -----------------------------------------------------------------------------------------------------
CLASS B SHARES
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 7.69 $ 9.85 $ 8.39 $ 7.85 $ 8.16 $10.00
------ ------ ------ ------ ------ ------
.....................................................................................................
Income from investment
operations
.....................................................................................................
Net investment income (0.04) 0.08 (0.08) (0.08) 0.01 (0.02)
.....................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.83 (1.99) 1.54 0.62 (0.32) (1.82)
------ ------ ------ ------ ------ ------
.....................................................................................................
Total from investment
operations 0.79 (1.91) 1.46 0.54 (0.31) (1.84)
------ ------ ------ ------ ------ ------
.....................................................................................................
Distributions to
shareholders from
.....................................................................................................
Net investment income (0.01) 0 0 0 0 0
.....................................................................................................
Net realized gains 0 (0.25) 0 0 0 0
------ ------ ------ ------ ------ ------
.....................................................................................................
Total distributions to
shareholders (0.01) (0.25) 0 0 0 0
------ ------ ------ ------ ------ ------
.....................................................................................................
Net asset value, end of
period $ 8.47 $ 7.69 $ 9.85 $ 8.39 $ 7.85 $ 8.16
------ ------ ------ ------ ------ ------
.....................................................................................................
Total return* 10.29% (19.89%) 17.40% 6.90% (3.80%) (18.40%)
.....................................................................................................
Ratios and supplemental
data
.....................................................................................................
Net assets, end of
period (thousands) $3,048 $2,970 $4,020 $2,881 $1,940 $1,589
.....................................................................................................
Ratios to average net
assets
Expenses 3.02%+ 2.78% 2.50% 2.50% 2.48%+ 2.53%+
.....................................................................................................
Net investment income (1.03%)+ 0.80% (0.79%) (0.87%) 0.03%+ (0.84%)+
.....................................................................................................
Portfolio turnover rate 155% 380% 157% 107% 65% 17%
.....................................................................................................
</TABLE>
(a) For the period from September 6, 1994 (commencement of class operations) to
December 31, 1994.
(b) For the ten months ended October 31, 1995. The Fund changed its fiscal year
end from December 31 to October 31, effective October 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
25
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
EMERGING MARKETS GROWTH FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # -------------------------------------- Year Ended
(Unaudited) 1998 # 1997 # 1996 # 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
.........................................................................................................
Net asset value,
beginning of period $ 7.68 $ 9.85 $ 8.38 $ 7.84 $ 8.16 $10.00
------- ------- ------- ------- ------ ------
.........................................................................................................
Income from investment
operations
.........................................................................................................
Net investment income (0.04) 0.05 (0.06) (0.08) 0.02 (0.02)
.........................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.84 (1.97) 1.53 0.62 (0.34) (1.82)
------- ------- ------- ------- ------ ------
.........................................................................................................
Total from investment
operations 0.80 (1.92) 1.47 0.54 (0.32) (1.84)
------- ------- ------- ------- ------ ------
.........................................................................................................
Distributions to
shareholders from
.........................................................................................................
Net investment income (0.01) 0 0 0 0 0
.........................................................................................................
Net realized gains 0 (0.25) 0 0 0 0
------- ------- ------- ------- ------ ------
.........................................................................................................
Total distributions to
shareholders (0.01) (0.25) 0 0 0 0
------- ------- ------- ------- ------ ------
.........................................................................................................
Net asset value, end of
period $ 8.47 $ 7.68 $ 9.85 $ 8.38 $ 7.84 $ 8.16
------- ------- ------- ------- ------ ------
.........................................................................................................
Total return* 10.43% (20.00%) 17.50% 6.90% (3.90%) (18.40%)
.........................................................................................................
Ratios and supplemental
data
.........................................................................................................
Net assets, end of
period (thousands) $ 803 $ 577 $ 1,282 $ 85 $ 56 $ 89
.........................................................................................................
Ratios to average net
assets
Expenses 3.02%+ 2.78% 2.50% 2.51% 2.50%+ 2.53%+
.........................................................................................................
Net investment income (1.00%)+ 0.59% (0.61%) (0.91%) 0.72%+ (0.82%)+
.........................................................................................................
Portfolio turnover rate 155% 380% 157% 107% 65% 17%
.........................................................................................................
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # -------------------------------------- Year Ended
(Unaudited) 1998 # 1997 # 1996 # 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 7.96 $ 10.04 $ 8.48 $ 7.92 $ 8.17 $10.00
------- ------- ------- ------- ------ ------
.........................................................................................................
Income from investment
operations
.........................................................................................................
Net investment income 0 0.16 0.03 0.01 0.05 0.01
.........................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.87 (1.98) 1.53 0.62 (0.30) (1.84)
------- ------- ------- ------- ------ ------
.........................................................................................................
Total from investment
operations 0.87 (1.82) 1.56 0.63 (0.25) (1.83)
------- ------- ------- ------- ------ ------
.........................................................................................................
Distributions to
shareholders from
.........................................................................................................
Net investment income (0.02) (0.01) 0 (0.07) 0 0
.........................................................................................................
Net realized gains 0 (0.25) 0 0 0 0
------- ------- ------- ------- ------ ------
.........................................................................................................
Total distributions to
shareholders (0.02) (0.26) 0.00 (0.07) 0 0
------- ------- ------- ------- ------ ------
.........................................................................................................
Net asset value, end of
period $ 8.81 $ 7.96 $ 10.04 $ 8.48 $ 7.92 $ 8.17
------- ------- ------- ------- ------ ------
.........................................................................................................
Total return 11.01% (18.63%) 18.40% 7.90% (3.10%) (18.30%)
.........................................................................................................
Ratios and supplemental
data
.........................................................................................................
Net assets, end of
period (thousands) $48,782 $48,953 $61,142 $28,959 $9,355 $5,878
.........................................................................................................
Ratios to average net
assets
Expenses 2.02%+ 1.78% 1.50% 1.50% 1.48%+ 1.53%+
.........................................................................................................
Net investment income (0.04%)+ 1.71% 0.25% 0.11% 0.94%+ 0.43%+
.........................................................................................................
Portfolio turnover rate 155% 380% 157% 107% 65% 17%
.........................................................................................................
</TABLE>
(a) For the period from September 6, 1994 (commencement of class operations) to
December 31, 1994.
(b) For the ten months ended October 31, 1995. The Fund changed its fiscal year
end from December 31 to October 31, effective October 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
26
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # --------------------------------
(Unaudited) 1998 # 1997 # 1996 (a) #
<S> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning
of period $ 14.95 $ 13.67 $ 11.91 $ 11.29
-------- -------- -------- -------
..................................................................................
Income from investment
operations
..................................................................................
Net investment income (0.03) (0.04) (0.01) 0
..................................................................................
Net realized and unrealized
gains or losses on
securities and foreign
currency related
transactions 2.37 1.38 1.78 0.62
-------- -------- -------- -------
..................................................................................
Total from investment
operations 2.34 1.34 1.77 0.62
-------- -------- -------- -------
..................................................................................
Distributions to
shareholders from
..................................................................................
Net realized gains 0 (0.06) (0.01) 0
-------- -------- -------- -------
..................................................................................
Total distributions to
shareholders 0 (0.06) (0.01) 0
-------- -------- -------- -------
..................................................................................
Net asset value, end of
period $ 17.29 $ 14.95 $ 13.67 $ 11.91
-------- -------- -------- -------
..................................................................................
Total return* 15.65% 9.82% 14.88% 5.50%
..................................................................................
Ratios and supplemental
data
..................................................................................
Net assets, end of period
(thousands) $129,461 $142,622 $ 38,604 $12,975
..................................................................................
Ratios to average net
assets
Expenses 1.79%+ 1.85% 1.91% 1.75%+
..................................................................................
Net investment income (0.43%)+ (0.25%) (0.05%) 0.10%+
..................................................................................
Portfolio turnover rate 38% 16% 29% 20%
..................................................................................
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # --------------------------------
(Unaudited) 1998 # 1997 # 1996 (a) #
<S> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning
of period $ 14.70 $ 13.52 $ 11.87 $ 11.29
-------- -------- -------- -------
..................................................................................
Income from investment
operations
..................................................................................
Net investment income (0.10) (0.16) (0.11) (0.02)
..................................................................................
Net realized and unrealized
gains or losses on
securities and foreign
currency related
transactions 2.34 1.40 1.77 0.60
-------- -------- -------- -------
..................................................................................
Total from investment
operations 2.24 1.24 1.66 0.58
-------- -------- -------- -------
..................................................................................
Distributions to
shareholders from
..................................................................................
Net realized gains 0 (0.06) (0.01) 0
-------- -------- -------- -------
..................................................................................
Total distributions to
shareholders 0 (0.06) (0.01) 0
-------- -------- -------- -------
..................................................................................
Net asset value, end of
period $ 16.94 $ 14.70 $ 13.52 $ 11.87
-------- -------- -------- -------
..................................................................................
Total return* 15.24% 9.19% 14.01% 5.10%
..................................................................................
Ratios and supplemental
data
..................................................................................
Net assets, end of period
(thousands) $194,728 $166,556 $134,375 $41,948
..................................................................................
Ratios to average net
assets
Expenses 2.54%+ 2.61% 2.66% 2.50%+
..................................................................................
Net investment income (1.20%)+ (1.09%) (0.83%) (0.68%)+
..................................................................................
Portfolio turnover rate 38% 16% 29% 20%
..................................................................................
</TABLE>
(a) For the period from June 3, 1996 (commencement of class operations) to Oc-
tober 31, 1996.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
27
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # ------------------------------
(Unaudited) 1998 # 1997 # 1996 (a) #
<S> <C> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of
period $ 14.67 $ 13.51 $ 11.86 $ 11.29
------- ------- ------- -------
................................................................................
Income from investment
operations
................................................................................
Net investment income (0.10) (0.16) (0.11) (0.02)
................................................................................
Net realized and unrealized
gains or losses on
securities and foreign
currency related
transactions 2.34 1.38 1.77 0.59
------- ------- ------- -------
................................................................................
Total from investment
operations 2.24 1.22 1.66 0.57
------- ------- ------- -------
................................................................................
Distributions to shareholders
from
................................................................................
Net realized gains 0 (0.06) (0.01) 0
------- ------- ------- -------
................................................................................
Total distributions to
shareholders 0 (0.06) (0.01) 0
------- ------- ------- -------
................................................................................
Net asset value, end of
period $ 16.91 $ 14.67 $ 13.51 $ 11.86
------- ------- ------- -------
................................................................................
Total return* 15.27% 9.05% 14.02% 5.00%
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period
(thousands) $ 4,584 $ 3,875 $ 2,386 $ 554
................................................................................
Ratios to average net assets
Expenses 2.54%+ 2.61% 2.65% 2.50%+
................................................................................
Net investment income (1.20%)+ (1.06%) (0.80%) (0.67%)+
................................................................................
Portfolio turnover rate 38% 16% 29% 20%
................................................................................
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # ------------------------------
(Unaudited) 1998 # 1997 # 1996 #
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 15.05 $ 13.71 $ 11.91 $ 10.00
------- ------- ------- -------
................................................................................
Income from investment
operations
................................................................................
Net investment income (0.02) (0.01) 0.03 0.07
................................................................................
Net realized and unrealized
gains or losses on
securities and foreign
currency related
transactions 2.41 1.41 1.78 1.88
------- ------- ------- -------
................................................................................
Total from investment
operations 2.39 1.40 1.81 1.95
------- ------- ------- -------
................................................................................
Distributions to shareholders
from
................................................................................
Net investment income 0 0 0 (0.04)
................................................................................
Net realized gains 0 (0.06) (0.01) 0
------- ------- ------- -------
................................................................................
Total distributions to
shareholders 0 (0.06) (0.01) (0.04)
------- ------- ------- -------
................................................................................
Net asset value, end of
period $ 17.44 $ 15.05 $ 13.71 $ 11.91
------- ------- ------- -------
................................................................................
Total return 15.88% 10.23% 15.22% 19.60%
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period
(thousands) $45,582 $41,873 $35,461 $18,607
................................................................................
Ratios to average net assets
Expenses 1.54%+ 1.61% 1.64% 1.47%+
................................................................................
Net investment income (0.20%)+ (0.09%) 0.23% 0.62%+
................................................................................
Portfolio turnover rate 38% 16% 29% 20%
................................................................................
</TABLE>
(a) For the period from June 3, 1996 (commencement of class operations) to Oc-
tober 31, 1996.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
28
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended October 31, Year Ended September 30,
April 30, 1999 # ------------------- -----------------------------------------
(Unaudited) 1998 # 1997 (a) 1997 # 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 19.26 $ 23.53 $ 24.90 $ 24.56 $ 23.43 $ 19.42 $ 18.02
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Income from investment
operations
................................................................................................................
Net investment income (0.08) (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 4.06 (2.62) (1.39) 1.76 1.19 4.17 1.60
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Total from investment
operations 3.98 (2.74) (1.37) 1.59 1.13 4.01 1.56
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Distributions to
shareholders from
................................................................................................................
Net realized gains (1.22) (1.53) 0 (1.25) 0 0 (0.16)
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Total distributions to
shareholders (1.22) (1.53) 0 (1.25) 0 0 (0.16)
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Net asset value, end of
period $ 22.02 $ 19.26 $ 23.53 $ 24.90 $ 24.56 $ 23.43 $ 19.42
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Total return* 21.62% (12.42%) (5.50%) 6.95% 4.82% 20.65% 8.74%
................................................................................................................
Ratios and supplemental
data
................................................................................................................
Net assets, end of
period (thousands) $ 53,109 $ 58,944 $ 98,031 $113,477 $250,427 $ 94,679 $ 71,122
................................................................................................................
Ratios to average net
assets
Expenses 1.77%+ 1.81% 1.87%+ 1.67% 1.62% 1.83% 2.01%
................................................................................................................
Net investment income (0.78%)+ (0.54%) (1.40%)+ (0.69%) (0.53%) (0.83%) (0.86%)
................................................................................................................
Portfolio turnover rate 61% 127% 7% 72% 67% 35% 32%
................................................................................................................
<CAPTION>
Year Ended
Six Months Ended October 31, Year Ended September 30,
April 30, 1999 # ------------------- -----------------------------------------
(Unaudited) 1998 # 1997 (a) 1997 # 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 18.39 $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20 $ 17.95
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Income from investment
operations
................................................................................................................
Net investment income (0.15) (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 3.87 (2.49) (1.28) 1.68 1.13 4.05 1.56
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Total from investment
operations 3.72 (2.77) (1.34) 1.36 0.92 3.80 1.41
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Distributions to
shareholders from
................................................................................................................
Net realized gains (1.22) (1.53) 0 (1.25) 0 0 (0.16)
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Total distributions to
shareholders (1.22) (1.53) 0 (1.25) 0 0 (0.16)
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Net asset value, end of
period $ 20.89 $ 18.39 $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20
-------- -------- -------- -------- -------- -------- --------
................................................................................................................
Total return* 21.20% (13.06%) (5.58%) 6.14% 4.00% 19.79% 7.93%
................................................................................................................
Ratios and supplemental
data
................................................................................................................
Net assets, end of
period (thousands) $107,821 $122,147 $216,471 $238,936 $385,839 $238,320 $131,695
................................................................................................................
Ratios to average net
assets
Expenses 2.53%+ 2.55% 2.62%+ 2.46% 2.40% 2.58% 2.83%
................................................................................................................
Net investment income (1.55%)+ (1.30%) (2.15%)+ (1.45%) (1.37%) (1.59%) (1.61%)
................................................................................................................
Portfolio turnover rate 61% 127% 7% 72% 67% 35% 32%
................................................................................................................
</TABLE>
(a) For the one month ended October 31, 1997. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1997.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
29
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended October 31, Year Ended September 30,
April 30, 1999 # ------------------ --------------------------------------
(Unaudited) 1998 # 1997 (a) 1997 # 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 18.43 $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26 $ 17.99
------- ------- ------- ------- -------- ------- -------
...........................................................................................................
Income from investment
operations
...........................................................................................................
Net investment income (0.15) (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 3.88 (2.49) (1.27) 1.68 1.17 4.05 1.58
------- ------- ------- ------- -------- ------- -------
...........................................................................................................
Total from investment
operations 3.73 (2.77) (1.34) 1.35 0.93 3.78 1.43
------- ------- ------- ------- -------- ------- -------
...........................................................................................................
Distributions to
shareholders from
...........................................................................................................
Net realized gains (1.22) (1.53) 0 (1.25) 0 0 (0.16)
------- ------- ------- ------- -------- ------- -------
...........................................................................................................
Total distributions to
shareholders (1.22) (1.53) 0 (1.25) 0 0 (0.16)
------- ------- ------- ------- -------- ------- -------
...........................................................................................................
Net asset value, end of
period $ 20.94 $ 18.43 $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26
------- ------- ------- ------- -------- ------- -------
...........................................................................................................
Total return* 21.21% (13.03%) (5.57%) 6.08% 4.04% 19.63% 8.02%
...........................................................................................................
Ratios and supplemental
data
...........................................................................................................
Net assets, end of
period (thousands) $19,577 $23,043 $43,869 $49,524 $124,549 $86,339 $50,535
...........................................................................................................
Ratios to average net
assets
Expenses 2.53%+ 2.56% 2.62%+ 2.45% 2.40% 2.58% 2.85%
...........................................................................................................
Net investment income (1.55%)+ (1.31%) (2.15%)+ (1.48%) (1.38%) (1.59%) (1.62%)
...........................................................................................................
Portfolio turnover rate 61% 127% 7% 72% 67% 35% 32%
...........................................................................................................
<CAPTION>
Year Ended
Six Months Ended October 31,
April 30, 1999 # ------------------ Period Ended
(Unaudited) 1998 # 1997 (a) September 30, 1997 (b)
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $19.58 $ 23.90 $25.24 $23.05
------ ------- ------ ------
...........................................................................................................
Income from investment
operations
...........................................................................................................
Net investment income (0.17) 0.09 0 (0.28)
...........................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 3.92 (2.88) (1.34) 2.47
------ ------- ------ ------
...........................................................................................................
Total from investment
operations 3.75 (2.79) (1.34) 2.19
------ ------- ------ ------
...........................................................................................................
Distributions to
shareholders from
...........................................................................................................
Net realized gains (1.22) (1.53) 0 0
------ ------- ------ ------
...........................................................................................................
Total distributions to
shareholders (1.22) (1.53) 0 0
------ ------- ------ ------
...........................................................................................................
Net asset value, end of
period $22.11 $ 19.58 $23.90 $25.24
------ ------- ------ ------
...........................................................................................................
Total return 19.99% (12.45%) (5.31%) 9.50%
...........................................................................................................
Ratios and supplemental
data
...........................................................................................................
Net asset value, end of
period (thousands) $ 38 $ 31 $ 0 $ 0
...........................................................................................................
Ratios to average net
assets
Expenses 1.89%+ 1.49% 1.62%+ 1.42%+
...........................................................................................................
Net investment income (0.62%)+ 0.17% (1.62%)+ (1.22%)+
...........................................................................................................
Portfolio turnover rate 61% 127% 7% 72%
...........................................................................................................
</TABLE>
(a) For the one month ended October 31, 1997. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1997.
(b) For the period from January 13, 1997 (commencement of class operations) to
September 30, 1997.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
30
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 # Period Ended
(Unaudited) October 31, 1998 (a) #
<S> <C> <C>
CLASS A SHARES
Net asset value, beginning of period $ 7.47 $ 6.88
-------- --------
................................................................................
Income from investment operations
................................................................................
Net investment income 0.02 0.10
................................................................................
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions 0.54 0.49
-------- --------
................................................................................
Total from investment operations 0.56 0.59
-------- --------
................................................................................
Net asset value, end of period $ 8.03 $ 7.47
-------- --------
................................................................................
Total return* 7.50% 8.58%
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $127,664 $128,657
................................................................................
Ratios to average net assets
Expenses 1.25%+ 1.53%+
................................................................................
Net investment income 0.65%+ 1.08%+
................................................................................
Portfolio turnover rate 108% 155%
................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # -------------------------------------------------- Year Ended
(Unaudited) 1998 # 1997 # 1996 1995 1994 (b) # September 30, 1994 #
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 7.43 $ 8.65 $ 7.69 $ 7.11 $ 7.77 $ 7.67 $ 7.08
------- ------- -------- -------- -------- -------- --------
........................................................................................................................
Income from investment
operations
........................................................................................................................
Net investment income (0.01) (0.02) (0.05) (0.02) 0.07 0 0
........................................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.55 0.67 1.27 0.75 0.05 0.10 0.62
------- ------- -------- -------- -------- -------- --------
........................................................................................................................
Total from investment
operations 0.54 0.65 1.22 0.73 0.12 0.10 0.62
------- ------- -------- -------- -------- -------- --------
........................................................................................................................
Distributions to
shareholders from
........................................................................................................................
Net investment income 0 (0.33) (0.10) (0.10) (0.04) 0 (0.03)
........................................................................................................................
Net realized gains 0 (1.54) (0.16) (0.05) (0.74) 0 0
------- ------- -------- -------- -------- -------- --------
........................................................................................................................
Total distributions to
shareholders 0 (1.87) (0.26) (0.15) (0.78) 0 (0.03)
------- ------- -------- -------- -------- -------- --------
........................................................................................................................
Net asset value, end of
period $ 7.97 $ 7.43 $ 8.65 $ 7.69 $ 7.11 $ 7.77 $ 7.67
------- ------- -------- -------- -------- -------- --------
........................................................................................................................
Total return* 7.27% 9.35% 15.69% 10.47% 2.19% 1.30% 8.75%
........................................................................................................................
Ratios and supplemental
data
........................................................................................................................
Net assets, end of
period (thousands) $66,026 $75,467 $151,806 $147,911 $128,674 $157,929 $154,529
........................................................................................................................
Ratios to average net
assets
Expenses 2.00%+ 2.30% 2.39% 2.43% 2.57% 2.52%+ 2.54%
........................................................................................................................
Net investment income (0.10%)+ (0.13%) (0.49%) (0.21%) 0.88% (0.20%)+ 0.01%
........................................................................................................................
Portfolio turnover rate 108% 155% 101% 52% 76% 2% 121%
........................................................................................................................
</TABLE>
(a) For the period from January 20, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the one month ended October 31, 1994. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1994.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
31
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 # Period Ended
(Unaudited) October 31, 1998 (a) #
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $ 7.43 $ 7.64
------ ------
................................................................................
Income from investment operations
................................................................................
Net investment income (0.01) 0.03
................................................................................
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions 0.55 (0.24)
------ ------
................................................................................
Total from investment operations 0.54 (0.21)
------ ------
................................................................................
Net asset value, end of period $ 7.97 $ 7.43
------ ------
................................................................................
Total return* 7.27% (2.75%)
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $2,704 $3,375
.........................................................................
Ratios to average net assets
Expenses 2.00%+ 2.19%+
................................................................................
Net investment income (0.10%)+ 0.44%+
................................................................................
Portfolio turnover rate 108% 155%
................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 # Period Ended
(Unaudited) October 31, 1998 (b) #
<S> <C> <C>
CLASS Y SHARES
Net asset value, beginning of period $ 7.45 $ 7.73
-------- --------
................................................................................
Income from investment operations
................................................................................
Net investment income 0.04 0.07
................................................................................
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions 0.54 (0.35)
-------- --------
................................................................................
Total from investment operations 0.58 (0.28)
-------- --------
................................................................................
Net asset value, end of period $ 8.03 $ 7.45
-------- --------
................................................................................
Total return 7.79% (3.62%)
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $470,906 $428,188
................................................................................
Ratios to average net assets
Expenses 1.00%+ 1.18%+
................................................................................
Net investment income 0.90%+ 1.13%+
................................................................................
Portfolio turnover rate 108% 155%
................................................................................
</TABLE>
(a) For the period from March 6, 1998 (commencement of class operations) to Oc-
tober 31, 1998.
(b) For the period from March 9, 1998 (commencement of class operations) to Oc-
tober 31, 1998.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
32
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
LATIN AMERICA FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # --------------------------------------------
(Unaudited) 1998 # 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 7.56 $13.15 $ 11.13 $ 9.86 $ 10.55 $ 10.00
------- ------ ------- ------- ------- -------
...........................................................................................
Income from investment
operations
...........................................................................................
Net investment income 0.06 0.14 0.02 0.39 0.44 0.21
...........................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.07 (2.87) 2.10 1.24 (0.81) 0.50
------- ------ ------- ------- ------- -------
...........................................................................................
Total from investment
operations 1.13 (2.73) 2.12 1.63 (0.37) 0.71
------- ------ ------- ------- ------- -------
...........................................................................................
Distributions to
shareholders from
...........................................................................................
Net investment income 0 0 (0.10) (0.36) (0.30) (0.11)
...........................................................................................
Net realized gains 0 (2.86) 0 0 (0.02) (0.05)
------- ------ ------- ------- ------- -------
...........................................................................................
Total distributions to
shareholders 0 (2.86) (0.10) (0.36) (0.32) (0.16)
------- ------ ------- ------- ------- -------
...........................................................................................
Net asset value, end of
period $ 8.69 $ 7.56 $ 13.15 $ 11.13 $ 9.86 $ 10.55
------- ------ ------- ------- ------- -------
...........................................................................................
Total return* 14.95% (27.18%) 19.18% 16.74% (3.35%) 7.21%
...........................................................................................
Ratios and supplemental
data
...........................................................................................
Net assets, end of
period (thousands) $10,148 $6,483 $13,621 $11,021 $14,333 $23,880
...........................................................................................
Ratios to average net
assets
Expenses 2.28%+ 1.86% 1.69% 1.83% 1.86% 1.79%
...........................................................................................
Net investment income 1.75%+ 1.33% 0.20% 3.05% 4.02% 2.45%
...........................................................................................
Portfolio turnover rate 156% 197% 105% 112% 57% 104%
...........................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # -----------------------------------------------
(Unaudited) 1998 # 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 7.34 $ 12.91 $ 10.98 $ 9.76 $ 10.49 $ 10.00
------- ------- ------- ------- ------- --------
...........................................................................................
Income from investment
operations
...........................................................................................
Net investment income 0.03 0.06 (0.08) 0.23 0.32 0.14
...........................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.03 (2.77) 2.09 1.30 (0.75) 0.50
------- ------- ------- ------- ------- --------
...........................................................................................
Total from investment
operations 1.06 (2.71) 2.01 1.53 (0.43) 0.64
------- ------- ------- ------- ------- --------
...........................................................................................
Distributions to
shareholders from
...........................................................................................
Net investment income 0 0 (0.08) (0.31) (0.28) (0.10)
...........................................................................................
Net realized gains 0 (2.86) 0 0 (0.02) (0.05)
------- ------- ------- ------- ------- --------
...........................................................................................
Total distributions to
shareholders 0 (2.86) (0.08) (0.31) (0.30) (0.15)
------- ------- ------- ------- ------- --------
...........................................................................................
Net asset value, end of
period $ 8.40 $ 7.34 $ 12.91 $ 10.98 $ 9.76 $ 10.49
------- ------- ------- ------- ------- --------
...........................................................................................
Total return* 14.44% (27.60%) 18.40% 15.82% (4.00%) 6.48%
...........................................................................................
Ratios and supplemental
data
...........................................................................................
Net assets, end of
period (thousands) $26,603 $32,046 $75,271 $79,026 $97,165 $148,769
...........................................................................................
Ratios to average net
assets
Expenses 3.01%+ 2.61% 2.50% 2.59% 2.61% 2.54%
...........................................................................................
Net investment income 0.85%+ 0.60% (0.51%) 2.30% 3.27% 1.70%
...........................................................................................
Portfolio turnover rate 156% 197% 105% 112% 57% 104%
...........................................................................................
</TABLE>
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
33
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
LATIN AMERICA FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1999 # ---------------------------------------------
(Unaudited) 1998 # 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 7.32 $ 12.92 $ 10.99 $ 9.77 $ 10.50 $ 10.00
------ ------- ------- ------ ------- -------
.............................................................................................
Income from investment
operations
.............................................................................................
Net investment income 0.03 0.05 (0.07) 0.23 0.32 0.14
.............................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.03 (2.79) 2.08 1.30 (0.75) 0.51
------ ------- ------- ------ ------- -------
.............................................................................................
Total from investment
operations 1.06 (2.74) 2.01 1.53 (0.43) 0.65
------ ------- ------- ------ ------- -------
.............................................................................................
Distributions to
shareholders from
.............................................................................................
Net investment income 0 0 (0.08) (0.31) (0.28) (0.10)
.............................................................................................
Net realized gains 0 (2.86) 0 0 (0.02) (0.05)
------ ------- ------- ------ ------- -------
.............................................................................................
Total distributions to
shareholders 0 (2.86) (0.08) (0.31) (0.30) (0.15)
------ ------- ------- ------ ------- -------
.............................................................................................
Net asset value, end of
period $ 8.38 $ 7.32 $ 12.92 $10.99 $ 9.77 $ 10.50
------ ------- ------- ------ ------- -------
.............................................................................................
Total return* 14.62% (27.86%) 18.38% 15.80% (4.00%) 6.58%
.............................................................................................
Ratios and supplemental
data
.............................................................................................
Net assets, end of
period (thousands) $4,140 $ 4,725 $10,961 $8,791 $11,242 $17,740
.............................................................................................
Ratios to average net
assets
Expenses 3.02%+ 2.61% 2.47% 2.59% 2.61% 2.54%
.............................................................................................
Net investment income 0.87%+ 0.54% (0.52%) 2.26% 3.27% 1.74%
.............................................................................................
Portfolio turnover rate 156% 197% 105% 112% 57% 104%
.............................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 # Year Ended
(Unaudited) October 31, 1998 (a) #
<S> <C> <C>
CLASS Y SHARES
Net asset value, beginning of period $ 7.58 $ 10.94
------ -------
...................................................................................
Income from investment operations
...................................................................................
Net investment income 0.11 0.07
...................................................................................
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions 1.03 (3.43)
------ -------
...................................................................................
Total from investment operations 1.14 (3.36)
------ -------
...................................................................................
Distributions to shareholders from
...................................................................................
Net realized gains 0 0
------ -------
...................................................................................
Total distributions to shareholders 0 0
------ -------
...................................................................................
Net asset value, end of period $ 8.72 $ 7.58
------ -------
...................................................................................
Total return 15.04% (30.71%)
...................................................................................
Ratios and supplemental data
...................................................................................
Net assets, end of period (thousands) $ 266 $ 28
...................................................................................
Ratios to average net assets
Expenses 2.03%+ 1.49%+
...................................................................................
Net investment income 3.00%+ 1.33%+
...................................................................................
Portfolio turnover rate 156% 197%
...................................................................................
</TABLE>
(a) For the period from March 30, 1998 (commencement of class operations) to
October 31, 1998.
* Excluding applicable sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
34
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
PRECIOUS METALS FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 # Period Ended
(Unaudited) October 31, 1998 (a) #
<S> <C> <C>
CLASS A SHARES
Net asset value, beginning of period $ 11.64 $ 12.45
------- -------
................................................................................
Income from investment operations
................................................................................
Net investment income (0) (0.01)
................................................................................
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions 0.53 (0.80)
------- -------
................................................................................
Total from investment operations 0.53 (0.81)
------- -------
................................................................................
Net asset value, end of period $ 12.17 $ 11.64
------- -------
................................................................................
Total return* 4.55% (6.51%)
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $79,031 $83,431
................................................................................
Ratios to average net assets
Expenses 1.99%+ 2.01%+
................................................................................
Net investment income (0.02%)+ (0.12%)+
................................................................................
Portfolio turnover rate 13% 44%
................................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended October 31, Year Ended February 28,
April 30, 1999 # ------------------ ------------------------------
(Unaudited) 1998 1997 (b) # 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 11.58 $ 15.87 $ 23.94 $ 26.35 $ 19.30 $ 25.09
------- ------- -------- -------- -------- --------
...................................................................................................
Income from investment
operations
...................................................................................................
Net investment income (0.06) (0.19) (0.14) (0.26) (0.25) (0.13)
...................................................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.54 (3.29) (7.93) (1.16) 7.30 (5.54)
------- ------- -------- -------- -------- --------
...................................................................................................
Total from investment
operations 0.48 (3.48) (8.07) (1.42) 7.05 (5.67)
------- ------- -------- -------- -------- --------
...................................................................................................
Distributions to
shareholders from
...................................................................................................
Net investment income 0 0 0 0 0 (0.12)
...................................................................................................
Net realized gains 0 (0.81) 0 (0.99) 0 0
------- ------- -------- -------- -------- --------
...................................................................................................
Total distributions to
shareholders 0 (0.81) 0 (0.99) 0 (0.12)
------- ------- -------- -------- -------- --------
...................................................................................................
Net asset value, end of
period $ 12.06 $ 11.58 $ 15.87 $ 23.94 $ 26.35 $ 19.30
------- ------- -------- -------- -------- --------
...................................................................................................
Total return* 4.15% (22.60%) (33.71%) (5.16%) 36.53% (22.70%)
...................................................................................................
Ratios and supplemental
data
...................................................................................................
Net assets, end of
period (thousands) $17,528 $25,765 $111,173 $190,108 $217,270 $171,193
...................................................................................................
Ratios to average net
assets
Expenses 2.74%+ 2.72% 2.48%+ 2.33% 2.28% 2.33%
...................................................................................................
Net investment income (1.01%)+ (1.52%) (1.04%)+ (1.08%) (1.08%) (0.54%)
...................................................................................................
Portfolio turnover rate 13% 44% 19% 41% 39% 75%
...................................................................................................
</TABLE>
(a) For the period from January 20, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the eight months ended October 31, 1997. The Fund changed its fiscal
year end from February 28 to October 31, effective October 31, 1997.
* Excluding applicable sales charges.
+ Annualized.
# Net Investment income is based on average shares outstanding during the peri-
od.
See Combined Notes to Financial Statements.
35
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
PRECIOUS METALS FUND
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 # Period Ended
(Unaudited) October 31, 1998 (a) #
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $11.58 $ 13.65
------ -------
................................................................................
Income from investment operations
................................................................................
Net investment income (0.04) (0.14)
................................................................................
Net realized and unrealized gains or
losses on securities 0.52 (1.93)
------ -------
................................................................................
Total from investment operations 0.48 (2.07)
------ -------
................................................................................
Net asset value, end of period $12.06 $ 11.58
------ -------
................................................................................
Total return* 4.15% (15.16%)
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $ 428 $ 557
................................................................................
Ratios to average net assets
Expenses 2.86%+ 2.83%+
................................................................................
Net investment income (0.72%)+ (1.44%)+
................................................................................
Portfolio turnover rate 13% 44%
................................................................................
</TABLE>
(a) For the period from January 29, 1998 (commencement of class operations) to
October 31, 1998.
* Excluding applicable sales charges.
+ Annualized.
# Net Investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
36
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
EMERGING MARKETS GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 101.5%
Aerospace & Military
Technology - 1.2%
36,653 Elbit Systems Ltd. .................................. $ 529,178
25,000,000 Empresa Brasileira de Aeronautica SA................. 230,283
-----------
759,461
-----------
Automobiles - 0.3%
9,500 *Hyundai Motor Co. .................................. 158,666
-----------
Banking - 17.4%
17,900,000 Akbank Turk Anonim Sirket............................ 570,995
16,400 Alpha Credit Bank, GDR............................... 1,170,668
146,300 Amalgamated Bank South Africa........................ 769,367
14,100 Banco de Galicia y Buenos Aires SA de CV, Cl. B,
ADR................................................. 331,392
5,000,000 Banco Est Sao Paulo SA............................... 222,757
13,600 Banco Frances del Rio de la Plata SA, ADR............ 350,200
389,000 Banco Itau SA........................................ 204,922
18,097 Bank Handlowy w Warszawie............................ 219,718
225,500 Bank Hapoalim Ltd. .................................. 538,156
1,830 Ergo Bank SA, GDR.................................... 159,754
141,900 Grupo Financiero Banamex AC, Ser. O.................. 361,661
24,160 Housing & Commercial Bank............................ 569,188
12,100 HSBC Holdings Plc.................................... 449,594
40,400 Kookmin Bank......................................... 550,677
68,000 Metro Bank & Trust Co. .............................. 679,553
42,500 Nedcor Ltd. ......................................... 928,924
2,833 OTP Bank Rt. ........................................ 121,331
500,000 Siam Commercial Bank................................. 553,008
91,500 State Bank of India, GDR, 144A....................... 800,625
6,500,000 Turkiye Garanti Bankasi AS........................... 348,055
3,600,000 Turkiye Is Bankasi................................... 208,087
6,000 Uniao de Bancos Brasileiros SA, GDR ("Unibanco")..... 148,875
14,700,000 Yapi ve Kredi Bankasi AS............................. 420,835
-----------
10,678,342
-----------
Beverages & Tobacco - 8.3%
647,000 Cia Cervejaria Brahma................................ 314,380
23,400 Embotelladora Andina SA, Ser. A, ADR................. 422,663
27,500 Fomento Economico Mexicano, Ser. B, ADR.............. 1,000,313
94,000 Fraser & Neave Ltd. ................................. 415,610
178,800 Grupo Modelo SA de CV, Ser. C........................ 471,188
10,753 Hellenic Bottling.................................... 317,588
23,600 Panamerican Beverages, Inc., Cl. A................... 523,625
28,500 Rembrandt Controlling Investments Ltd. .............. 128,800
175,178 Rembrandt Group Ltd. ................................ 1,331,468
1,000,000 San Miguel Brewery................................... 140,627
10,500 Technical & Industrial Investments Ltd. ............. 44,261
-----------
5,110,523
-----------
Broadcasting & Publishing - 1.2%
11,650 *Grupo Televisa SA, ADR............................... $ 477,650
19,471 *Singapore Press Holdings Ltd. ....................... 286,963
-----------
764,613
-----------
Building Materials &
Components - 2.3%
100,000 Cemex SA de CV, Ser. B................................ 464,286
66,000 Larsen & Toubro Ltd., GDR, 144A....................... 594,000
4,200 Titan Cement Co., GDR................................. 324,335
-----------
1,382,621
-----------
Chemicals - 2.0%
42,500 L.G. Chemical Ltd. ................................... 733,067
69,100 Reliance Industries Ltd., GDR, 144A................... 518,250
-----------
1,251,317
-----------
Construction - 0.5%
66,075 Corporacion GEO SA de CV, Ser. B...................... 278,173
-----------
Electronic Components - 6.5%
167,100 *Acer, Inc., GDR, 144A................................ 1,194,765
248,646 Johnson Electric Holdings............................. 742,634
24,795 Samsung Electronics................................... 1,906,826
90,000 *United Microelectronics Corp. ....................... 140,367
-----------
3,984,592
-----------
Energy Equipment & Services - 0.3%
19,000 Gulf Indonesia Resources Ltd. ........................ 195,937
-----------
Energy Sources - 7.8%
11,200 Companhia Energetica de Minas Gerais, ADR ("CEMIG")... 268,697
26,162 MOL Magyar Olaj-es Gazipari Rt., GDR.................. 582,248
91,500 Perez Compancia SA, Cl. B............................. 567,533
41,120 Petroleo Brasileiro SA, ADR, ("Petrobras")............ 664,277
101,863 Petroleos de Chile SA................................. 334,391
34,770 SK Corp., GDR, 144A................................... 731,384
38,220 YPF SA, Cl. D, ADR.................................... 1,605,240
-----------
4,753,770
-----------
Financial Services - 1.4%
20,500 Credicorp Ltd. ....................................... 207,563
951,400 Grupo Financiero Bancomer SA, Ser. O.................. 330,519
6,600 Samsung Securities Co. ............................... 255,448
13,600 Technical Investment Corp. ........................... 52,634
-----------
846,164
-----------
Food & Household Products - 0.8%
159,000 Grupo Industrial Bimbo, Ser. A........................ 342,435
89,900 Migros Turk TAS....................................... 141,776
-----------
484,211
-----------
</TABLE>
37
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
EMERGING MARKETS GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments(continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Forest Products & Paper - 3.1%
58,100 Asia Pulp & Paper Ltd., ADR.......................... $ 610,050
20,183 Empresas CMPC........................................ 183,349
600,000 Indah Kiat Pulp & Paper.............................. 250,852
118,441 Sappi Ltd. .......................................... 856,434
-----------
1,900,685
-----------
Health & Personal Care - 2.9%
124,200 Kimberly Clark Corp. de Mexico SA de CV, Cl. A....... 483,896
158,000 Parkway Holdings Ltd. ............................... 383,753
31,100 Pliva D.D., GDR, 144A................................ 486,715
11,520 Ranbaxy Laboratories Ltd., GDR, 144A................. 173,952
20,500 *Taro Pharmaceutical Industries...................... 120,437
2,800 Teva Pharmaceutical Industries Ltd., ADR............. 128,100
-----------
1,776,853
-----------
Merchandising - 4.4%
546,200 Cifra SA de CV, Ser. V............................... 1,034,470
13,800 Distribucion Y Servicio D&S, ADR..................... 208,725
848,400 New Clicks Holdings.................................. 1,136,312
31,100 *Santa Isabel SA, ADR................................ 311,000
-----------
2,690,507
-----------
Metals-Non Ferrous - 1.0%
12,800 AngloGold Ltd, ADR................................... 305,785
12,500 De Beers Centenary................................... 309,081
-----------
614,866
-----------
Metals-Steel - 2.1%
26,600 Companhia Vale do Rio Doce, ADR...................... 511,486
20,000 Hindalco Industries Ltd., GDR, 144A.................. 280,000
14,900 Pohang Iron & Steel Ltd., ADR........................ 383,675
62,400 Siderca SA........................................... 106,466
-----------
1,281,627
-----------
Multi-Industry - 6.9%
46,600 ALFA SA de CV, Ser. A................................ 188,574
765,000 Astra Argo Lestari................................... 234,546
640,000 Ayala Corp........................................... 231,427
182,100 Barlow Ltd. ......................................... 1,092,301
334,000 Citic Pacific Ltd. .................................. 904,915
7,000 Desc SA de CV, Ser. C, ADR........................... 181,082
32,204 Elektrim Spolka Akcyjna SA........................... 382,847
71,400 Grupo Carso SA de CV, Ser. A1........................ 356,091
63,000 Hutchison Whampoa Ltd. .............................. 564,895
585,000 JG Summit Holdings, Inc., Ser. B..................... 66,923
-----------
4,203,601
-----------
Telecommunications - 23.5%
20,400 Compania Anonima Nacional Telefonos de Venezuela, Cl.
D, ADR.............................................. 561,000
15,900 Compania de Telecom de Chile SA, ADR................. 420,356
Telecommunications - continued
15,700 Cseke Radiokomunikace AS, GDR,144A................... $ 577,016
3,850 *Dacom Corp ......................................... 325,557
6,100,000 *Digital Telecom Phils., Inc. ....................... 224,589
32,900 *Embratel Participacoes SA, ADR...................... 534,625
266,000 Indosat, ADR......................................... 514,042
118,463 Mahanagar Telephone Nigam Ltd., GDR.................. 1,232,015
24,811 *Matav Rt., ADR...................................... 697,809
32,000 OTE Greek Telecom, GDR............................... 742,375
10,000 Philippine Long Distance Telephone Co. .............. 322,500
16,100 *SPT Telecom AS...................................... 242,458
41,650 Tele Norte Leste Participacoes SA, ADR............... 705,447
10,000 Telecom Argentina STET--France Telecom SA, Cl. B,
ADR................................................. 339,504
328,000 Telecom Asia Corp. .................................. 283,140
15,400 *Telecomunicacoes Brasileiras SA, ADR ("Telebras")... 1,203
12,100 *Telecomunicacoes Brasileiras SA, ADR, Preference
Shares ("Telebras")................................. 1,103,369
28,800 Telefonica de Argentina, Cl. B, ADR.................. 1,076,400
29,500 Telefonica del Peru SA, Cl. B, ADR................... 444,344
28,950 Telefonos de Mexico SA, ADR.......................... 2,192,963
55,800 Telekomunikacja Polaska SA........................... 342,972
700,000 Telekomunikasi Indonesia Ser. B...................... 312,171
9,700 Telesp Celular Participacoes......................... 242,185
15,800 Telesp Participacpoes SA, ADR........................ 395,000
46,300 Videsh Sanchar Nigam Ltd., GDR,144A.................. 548,655
-----------
14,381,695
-----------
Transportation - Roads & Rail - 0.4%
628,000 Jiangsu Expressway................................... 136,927
766,000 Zhejiang Expressway.................................. 127,485
-----------
264,412
-----------
Utilities - Electric, Gas & Water - 3.9%
73,500 Centrais Eletricas Brasileiras SA, ADR............... 731,024
21,100 Empresa Nacional de Electric, ADR.................... 295,400
75,000 Korea Electric Power Corp., ADR...................... 1,237,500
12,900 Transportadora de Gas del Sur SA, ADR ("TGS")........ 123,463
-----------
2,387,387
-----------
Wholesale & International Trade - 3.3%
832,000 Li & Fung Ltd. ...................................... 2,039,479
-----------
Total Common Stocks
(cost $52,031,265).................................. 62,189,502
-----------
</TABLE>
38
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
EMERGING MARKETS GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
PREFERRED STOCKS - 0.1%
Broadcasting & Publishing - 0.1%
5,000 Lusomundo Sociedade Gestora de Participacoes Sociais
SA (cost $66,725)................................... $ 50,179
-----------
RIGHTS - 0.0%
Food & Household Products - 0.0%
6,976 Grupo Industrial Bimbo (cost $0)..................... 0
-----------
SHORT-TERM INVESTMENTS - 1.9%
U.S. Agency Obligations - 1.9%
$1,156,000 Federal Home Loan Mortgage Discount Notes 4.90%,
5/3/1999
(cost $1,155,686).................................. $ 1,155,686
-----------
Total Investments -(cost $53,253,676)......... 103.5% 63,395,367
Other Assets and Liabilities - net............ (3.5) (2,150,737)
----- -----------
Net Assets.................................... 100.0% $61,244,630
===== ===========
</TABLE>
* Non-income producing security.
144A Security that may be resold to "qualified institutional buyers" un-
der Rule 144A of the Securities Act of 1933. This security has been
determined to be liquid under guidelines established by the Board of
Trustees.
Summary of Abbreviations
ADR American Depository Receipt
GDR Global Depository Receipt
At April 30, 1999, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
Mexico............................................ $ 8,163,299 12.9%
South Africa...................................... 6,955,367 11.0%
Korea............................................. 6,851,990 10.8%
Brazil............................................ 5,641,345 8.9%
Hong Kong......................................... 5,106,556 8.0%
Argentina......................................... 4,500,198 7.1%
India............................................. 4,147,497 6.5%
United States+.................................... 3,350,683 5.3%
Greece............................................ 2,714,720 4.3%
Turkey............................................ 1,689,748 2.7%
Chile............................................. 1,544,496 2.4%
Philippines....................................... 1,524,992 2.4%
Hungary........................................... 1,401,389 2.2%
Taiwan............................................ 1,335,132 2.1%
Indonesia......................................... 1,311,610 2.1%
Israel............................................ 1,195,434 1.9%
Singapore......................................... 1,086,326 1.7%
Poland............................................ 945,538 1.5%
Thailand.......................................... 836,148 1.3%
Czech Republic.................................... 819,474 1.3%
Peru.............................................. 651,906 1.0%
Venezuela......................................... 561,000 0.9%
Panama............................................ 523,625 0.8%
Croatia........................................... 486,715 0.8%
Portugal.......................................... 50,179 0.1%
----------- ------
$63,395,367 100.0%
=========== ======
</TABLE>
+ Includes short-term securities.
See Combined Notes to Financial Statements.
39
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 99.9%
Australia - 1.4%
54,400 National Australia Bank, Ltd. ........................ $ 5,287,000
------------
Belgium - 1.6%
3,500 Colruyt SA............................................ 2,394,067
75,000 UCB SA................................................ 3,486,120
------------
5,880,187
------------
Canada - 4.8%
500,000 Bombardier, Inc., Cl. B............................... 7,749,811
115,000 *Canadian Natural Resources, Ltd. .................... 2,255,675
120,000 Du Pont Canada, Inc., Cl. A........................... 3,999,726
65,000 Magna International, Inc. Cl. A....................... 3,883,750
------------
17,888,962
------------
Denmark - 1.0%
37,500 Coloplast AS.......................................... 3,700,908
------------
Finland - 1.2%
60,000 Nokia Corp. ADR....................................... 4,451,250
------------
France - 4.7%
3,800 Carrefour SA.......................................... 3,010,741
47,000 Hermes International.................................. 3,872,763
220 L'Oreal............................................... 140,839
38,320 Societe Technip....................................... 4,618,911
15,564 Sodexho Alliance...................................... 2,553,413
17,000 Synthelabo............................................ 3,475,028
------------
17,671,695
------------
Germany - 6.5%
70,000 Altana AG............................................. 4,296,379
4,000 Hugo Boss AG.......................................... 5,358,062
180,050 RWE AG................................................ 8,235,870
10,000 SAP AG................................................ 3,200,892
5,000 Suedzucker AG......................................... 1,822,290
5,468 VEW AG................................................ 1,455,652
------------
24,369,145
------------
Hong Kong - 2.9%
181,000 Cheung Kong Holdings, Ltd. ........................... 1,646,304
1,945,775 First Pacific Ltd. ................................... 1,506,212
200,000 Henderson Land Development Co., Ltd. ................. 1,210,166
1,428,020 Hong Kong & China Gas................................. 2,008,182
34,843 Hong Kong Telecommunications, Ltd. ................... 93,727
121,000 Hong Kong Telecommunications, Ltd. ADS................ 3,236,750
1,635,000 National Mutual Asia Ltd. ............................ 1,255,096
------------
10,956,437
------------
Ireland - 1.2%
14,510 CRH Plc............................................... 285,874
217,137 CRH Plc, London Exchange.............................. 4,261,561
------------
4,547,435
------------
Italy - 5.0%
175,000 Benetton Group SpA ADS................................ $ 6,223,438
355,000 Industrie Natuzzi SpA................................. 6,789,375
352,000 Luxottica Group SpA ADS............................... 5,588,000
------------
18,600,813
------------
Japan - 5.9%
50,000 Kyodo Printing Co. ................................... 267,124
108,000 Nintendo Co., Ltd. ................................... 10,065,651
140,400 Seven-Eleven Japan Co. Ltd. .......................... 11,980,205
------------
22,312,980
------------
Malaysia - 0.5%
101,000 AMMB Holdings Berhad.................................. 105,465
254,000 Commerce Asset Holding Berhad......................... 318,168
254,000 Malayan Banking Berhad................................ 540,084
92,000 Malaysian Oxygen Berhad............................... 157,368
81,000 Nestle Berhad......................................... 257,495
134,000 Perusahaan Otomobil Nasional Berhad................... 218,632
180,000 RHB Capital Berhad.................................... 147,789
166,000 United Engineers Ltd. Berhad.......................... 106,240
------------
1,851,241
------------
Netherlands - 5.0%
21,093 CSM NV................................................ 1,127,502
45,757 CSM NV, Certificates.................................. 2,445,888
74,901 Getronics NV.......................................... 3,074,023
50,555 IHC Caland NV......................................... 2,291,131
80,000 Numico Kon NV......................................... 3,008,627
90,000 VNU NV................................................ 3,641,411
70,792 Wolters Kluwer........................................ 3,081,129
------------
18,669,711
------------
Norway - 0.3%
60,400 Orkla SA.............................................. 1,013,047
------------
Portugal - 0.1%
1,653 Jeronimo Martins SA................................... 52,911
3,496 Jeronimo Martins, SGPS, SA............................ 115,042
2,000 Portugal Telecom SA................................... 83,350
------------
251,303
------------
Spain - 1.5%
2,400 Endesa SA............................................. 53,344
180,500 Endesa SA, ADS........................................ 3,982,281
140,000 Prosegur, CIA de Seguridad SA......................... 1,619,462
------------
5,655,087
------------
Sweden - 0.9%
41,000 Hennes & Mauritz Cl. B................................ 3,532,891
------------
Switzerland - 2.8%
2,500 ABB AG................................................ 3,645,868
450 Nestle SA............................................. 832,634
75 Novartis AG........................................... 109,671
695 Novartis AG, Registered Shares........................ 1,017,195
79 Roche Holding AG...................................... 928,924
18 Roche Holding AG, Bearer Shares....................... 317,245
1,665 Schweizerische Rueckversicherungs-Gesellschaft........ 3,642,767
------------
10,494,304
------------
</TABLE>
40
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
Schedule of Investments(continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United Kingdom - 7.8%
7,937 Astrazeneca Plc....................................... $ 309,503
146,551 Granada Group Plc..................................... 3,126,132
135,000 Laporte Plc........................................... 1,596,232
217,100 Lloyds TSB Group Plc.................................. 3,499,472
270,000 Morgan Crucible Co. Plc............................... 1,229,208
217,000 Next Plc.............................................. 2,683,613
150,000 Pearson Publishing Plc................................ 3,185,226
350,200 Rentokil Initial Plc.................................. 2,054,880
19,024 SmithKline Beecham Plc................................ 251,564
50,000 SmithKline Beecham Plc, ADR........................... 3,284,375
156,841 Smiths Industries Plc................................. 2,422,177
250,000 TI Group Plc.......................................... 2,091,310
62,000 Tomkins Plc........................................... 263,312
12,500 Vodafone Group Plc, ADR............................... 2,242,187
156,307 Williams Plc.......................................... 1,081,239
------------
29,320,430
------------
United States - 44.8%
95,900 AlliedSignal, Inc. ................................... 5,634,125
29,850 American International Group, Inc. ................... 3,505,509
60,000 Ameritech Corp. ...................................... 4,106,250
20,000 Armstrong World Industries, Inc. ..................... 1,095,000
112,755 Astrazeneca Plc, ADR.................................. 4,425,634
61,600 Avon Products, Inc. .................................. 3,345,650
70,000 Campbell Soup Co. .................................... 2,870,000
75,000 Carnival, Corp. Cl. A................................. 3,093,750
75,625 *Cisco Systems, Inc. ................................. 8,625,977
125,000 Citigroup, Inc. ...................................... 9,406,250
18,400 Coca Cola Co. ........................................ 1,251,200
95,000 Compaq Computer Corp. ................................ 2,119,688
75,000 Computer Associates International, Inc. .............. 3,201,562
72,900 Disney (Walt) Co. .................................... 2,314,575
68,000 Federal National Mortgage Assoc. ..................... 4,823,750
78,800 Gannett Co., Inc. .................................... 5,580,025
67,500 Gap, Inc. ............................................ 4,492,969
69,000 General Electric Co. ................................. 7,279,500
90,000 Home Depot, Inc. ..................................... 5,394,375
82,400 Intel Corp. .......................................... 5,041,850
130,000 Marriott International, Inc. Cl. A.................... 5,443,750
90,350 Marsh & McLennan Co., Inc. ........................... 6,917,422
60,000 Maytag Corp. ......................................... 4,102,500
119,775 MBNA Corp. ........................................... 3,376,158
United States - continued
35,000 McGraw-Hill Cos., Inc. .............................. $ 1,933,750
68,000 Merck & Co., Inc. ................................... 4,777,000
104,000 *Microsoft Corp. .................................... 8,456,500
54,250 *Oracle Systems Corp. ............................... 1,468,141
130,000 *Parametric Technology Corp. ........................ 1,698,125
30,000 Pitney Bowes, Inc. .................................. 2,098,125
68,000 Schering-Plough Corp. ............................... 3,285,250
30,000 Schwab (Charles) & Co., Inc. ........................ 3,292,500
50,000 SLM Holding Corp. ................................... 2,134,375
37,500 *Sodexho Marriott Services, Inc. .................... 850,781
67,500 Sundstrand Corp. .................................... 4,843,125
100,000 TJX Co., Inc. ....................................... 3,331,250
36,000 Tribune Co. ......................................... 3,003,750
125,000 Viad Corp. .......................................... 4,132,812
202,400 Wal-Mart Stores, Inc. ............................... 9,310,400
130,000 Wells Fargo Co. ..................................... 5,614,375
------------
167,677,728
------------
Total Common Stocks
(cost $281,367,732)................................. 374,132,554
------------
PREFERRED STOCKS - 0.2%
Germany - 0.2%
25,000 RWE AG (cost $966,606)............................... 757,967
------------
WARRANTS - 0.0%
Hong Kong - 0.0%
43,100 Hong Kong & China Gas
warrants exp 9/30/1999.............................. 7,173
------------
Malaysia - 0.0%
26,750 Commerce Asset Holding, Warrants @ 7.45 MYR expire
3/16/2002........................................... 8,729
------------
Total Warrants (cost $16,302)........................ 15,902
------------
UNIT INVESTMENT TRUST - 3.6%
United States - 3.6%
100,000 S&P 500 Depositary Receipt (Spiders)
(cost $12,791,956).................................. 13,315,625
------------
Total Investments -(cost $295,142,596)...... 103.7% 388,222,048
Other Assets and Liabilities - net.......... (3.7) (13,868,210)
------ ------------
Net Assets.................................. 100.0% $374,353,838
====== ============
</TABLE>
* Non-income producing security.
Summary of Abbreviations
ADR American Depository Receipt
ADS American Depository Shares
41
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
At April 30, 1999, the Fund held securities in the following industries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
- ------------------------------------------------------------------------------
<S> <C> <C>
Retailing & Wholesale........................... $ 59,476,194 15.3%
Healthcare Products & Services.................. 39,252,797 10.1%
Finance & Insurance............................. 38,459,293 9.9%
Electrical Equipment & Services................. 28,721,585 7.4%
Printing, Publishing, Broadcasting &
Entertainment.................................. 22,947,897 5.9%
Information Services & Technology............... 21,985,866 5.7%
Diversified Companies........................... 20,347,082 5.2%
Food & Beverage Products........................ 16,169,050 4.2%
Banks........................................... 15,415,617 4.0%
Consumer Products & Services.................... 14,378,364 3.7%
Unit Investment Trust........................... 13,315,625 3.4%
Utilities - Electric............................ 13,029,462 3.4%
Aerospace & Defense............................. 12,592,936 3.2%
Building, Construction & Furnishings............ 10,367,586 2.7%
Telecommunication Services & Equipment.......... 10,107,264 2.6%
Real Estate..................................... 9,151,001 2.3%
Communication Systems & Services................ 8,625,977 2.2%
Industrial Specialty Products & Services........ 6,584,451 1.7%
Energy.......................................... 4,546,806 1.2%
Utilities - Telephone........................... 4,106,250 1.1%
Other........................................... 18,640,945 4.8%
------------ ------
$388,222,048 100.0%
============ ======
</TABLE>
See Combined Notes to Financial Statements.
42
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 98.9%
Aerospace & Military
Technology - 1.0%
308,068 Alvis Plc............................................ $ 1,030,825
82,596,030 Empresa Brasileira de Aeronautica SA................. 760,818
------------
1,791,643
------------
Automobiles - 1.6%
94,000 Akebono Brake Industry Co., Ltd. .................... 186,552
35,040 Brembo SpA........................................... 425,687
123,000 Koito Manufacturing Co., Ltd. ....................... 572,668
155,901 Pressac Holdings Plc................................. 539,215
79,000 Suzuki Motor Corp. .................................. 1,124,602
------------
2,848,724
------------
Banking - 5.0%
607,400 Anglo Irish Bank Corp. .............................. 1,764,558
166,600 Den Norske Bank AS................................... 601,514
53,800 Dime Community Bancorp, Inc. ........................ 1,218,906
47,200 Investors Financial Services Corp. .................. 1,721,325
6,500 Kempen & Co. NV...................................... 367,363
32,700 Peoples Heritage Financial Group, Inc. .............. 635,606
11,200 Telebanc Financial Corp. (b)......................... 1,159,200
348 Verwalt & Private Bank............................... 1,482,598
------------
8,951,070
------------
Beverages & Tobacco - 0.8%
15,000 Al-Ahram Beverage Co. SA, GDR........................ 514,177
26,964 *Baron de Ley SA..................................... 928,604
------------
1,442,781
------------
Broadcasting & Publishing - 1.9%
73,000 *Big Flower Holdings, Inc. .......................... 2,600,625
21,890 Endemol Entertainment NV............................. 751,549
------------
3,352,174
------------
Business & Public Services - 17.0%
24,500 *Abacus Direct Corp. ................................ 1,834,438
41,500 *Action Performance Companies, Inc. (b).............. 1,408,406
1,625,889 Aegis Group Plc...................................... 3,517,938
1,500 Altran Technologies SA............................... 356,535
201,691 Capita Group Plc..................................... 2,128,459
147,326 Compass Group Plc.................................... 1,516,821
228,014 Computershare Ltd. .................................. 2,353,857
4,947 Dauphin O.T.A. ...................................... 423,307
39,600 *Diamond Technology Partners, Inc. .................. 851,400
35,000 *Forrester Research, Inc. ........................... 1,198,750
15,300 Fugro NV............................................. 414,579
34,632 GTI Holding NV....................................... 731,705
71,100 Labor Ready, Inc. (b)................................ 2,790,675
40,700 *Lamar Advertising Co., Cl. A........................ 1,373,625
10,300 Market Facts, Inc. .................................. 313,184
5,200 Marketwatch.com, Inc. (b)............................ 371,475
59,000 *Maximus, Inc. ...................................... 1,534,000
23,400 *Metzler Group, Inc. (b)............................. 656,663
Business & Public Services - continued
225,742 Parity Plc........................................... $ 2,505,743
18,200 *SportsLine USA, Inc. ............................... 729,138
59,000 WPP Group, Inc. Plc.................................. 522,972
9 Yahoo Japan Corp. ................................... 3,120,080
------------
30,653,750
------------
Capital Equipment - 0.2%
42,000 Yamatake Corp. ...................................... 398,476
------------
Chemicals - 2.7%
65,400 Arch Chemicals, Inc. ................................ 1,438,800
63,700 *Cytec Industries, Inc. ............................. 1,811,469
41,800 *Scotts Co. Cl. A.................................... 1,719,025
------------
4,969,294
------------
Communication Services - 2.0%
21,500 *Entercom Communications Corp. ...................... 798,187
187,000 *Premiere Technologies, Inc. (b)..................... 2,787,469
------------
3,585,656
------------
Construction - 1.4%
57,600 Beazer Group Plc..................................... 202,001
10,000 Bellway Plc.......................................... 68,370
88,400 Bryant Group Plc..................................... 213,314
67,000 Fujitec Co., Ltd. ................................... 617,149
65,000 Ibiden Co. Ltd. ..................................... 1,134,860
76,300 Wilson Connolly Holdings Plc......................... 220,939
------------
2,456,633
------------
Data Processing &
Reproduction - 3.1%
12,582 *ATOS SA............................................. 1,076,622
25,600 Dassault Systemes SA................................. 941,937
27,500 *Electronics for Imaging, Inc. ...................... 1,300,234
57,500 Logica Plc........................................... 555,001
45,800 Sage Group Plc....................................... 1,547,248
7,200 WM-Data AB Ser. B.................................... 264,549
------------
5,685,591
------------
Education - 1.0%
44,961 *Bright Horizons Family Solutions, Inc. ............. 963,851
37,000 *ITT Educational Services, Inc. ..................... 908,813
------------
1,872,664
------------
Electrical & Electronics - 2.4%
35,300 *PMC-Sierra, Inc. (b)................................ 3,386,594
71,800 *Silicon Graphics, Inc. ............................. 915,450
------------
4,302,044
------------
Electronic Components - 2.4%
30,200 *Applied Micro Circuits Corp. ....................... 1,610,981
24,600 *Lattice Semiconductor Corp. ........................ 1,008,600
723 Phoenix Meccano AG................................... 331,717
15,800 *QLogic Corp. ....................................... 1,106,000
44,326 Renishaw Plc......................................... 289,507
------------
4,346,805
------------
</TABLE>
43
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Energy Sources - 2.9%
17,800 *Core Laboratories NV................................ $ 320,400
137,900 *Global Industries Ltd. ............................. 1,702,203
72,800 Newfield Exploration Co. ............................ 1,956,500
80,500 *Nuevo Energy Co. ................................... 1,277,937
------------
5,257,040
------------
Financial Services - 3.2%
3,400 Bellsystem 24, Inc. ................................. 1,340,981
128,850 Close Brothers Group Plc............................. 1,484,132
13,238 Custos AB Series B................................... 282,427
11,000 Jafco Co., Inc. ..................................... 550,829
375 Societe Eurafrance SA................................ 188,567
26,900 Southwest Securities Group, Inc. .................... 1,424,019
4,500 Trend Micro, Inc .................................... 595,378
------------
5,866,333
------------
Food & Household Products - 3.4%
85,126 Gerresheimer Glas AG................................. 1,357,900
316,000 Hazlewood Foods Plc.................................. 635,436
1,321 Lindt & Spruengli AG................................. 3,359,428
19,586 Nutreco Holding NV................................... 793,487
------------
6,146,251
------------
Health & Personal Care - 6.8%
38,300 *Alkermes, Inc. (b).................................. 1,025,722
9,200 Altana AG............................................ 564,667
34,500 Chattem, Inc. ....................................... 1,346,578
246,673 Cochlear Ltd. ....................................... 1,901,697
45,000 *Cyberonics, Inc. ................................... 365,625
5,200 Fancl Corp. ......................................... 740,245
11,167 Fielmann AG.......................................... 436,482
2,875 Fresenius AG......................................... 501,130
24,400 *Idexx Laboratories, Inc. ........................... 552,813
7,000 Minimed, Inc. (b).................................... 441,000
44,600 *Pediatrix Medical Group, Inc. (b)................... 844,612
1,401 Phonak Holding AG.................................... 1,698,794
634,403 Sonic Healthcare Ltd. ............................... 1,847,191
------------
12,266,556
------------
Industrial Components - 3.0%
43,000 *Asyst Technologies, Inc. ........................... 786,094
84,000 *Cognex Corp......................................... 2,438,625
58,054 Interpump Group SpA.................................. 258,805
13,000 Kaydon Corp. ........................................ 438,750
51,600 Roper Industries, Inc. .............................. 1,470,600
------------
5,392,874
------------
Insurance - 3.9%
56,900 *Annuity & Life Re (Holdings), Ltd. ................. 1,130,888
85,500 Irish Life Plc....................................... 767,739
20,194 Mapfre Vida Seguros.................................. 632,522
402,000 Mediolanum SpA....................................... 2,654,205
30,600 Pohjola Group Insurance Corp......................... 1,449,814
8,207 Scor................................................. 409,218
------------
7,044,386
------------
Shares Value
COMMON STOCKS - continued
Leisure & Tourism - 2.4%
20,000 Aruze Corp........................................... $ 1,055,100
435 Kuoni Reisen Holding AG.............................. 1,539,621
15,900 Sol Melia SA......................................... 592,590
363,364 Vardon Plc........................................... 1,135,476
------------
4,322,787
------------
Machinery & Engineering - 8.7%
40,000 Aida Engineering Ltd. ............................... 142,690
159,000 Amada Co., Ltd. ..................................... 998,576
340,158 Ashtead Group Plc.................................... 1,244,908
48,000 Astec Industries, Inc. .............................. 1,869,000
59,238 Boewe Systec, AG..................................... 1,567,605
294,000 Chiyoda Corp. ....................................... 664,713
596,450 FKI Plc.............................................. 1,659,951
29,000 Fuji Machine Manufacturing Co., Ltd. ................ 1,034,500
1,155 Georg Fischer AG..................................... 429,993
50,000 Hitachi Plant Engineering & Construction Co., Ltd.... 144,448
38,400 Manitowoc Co., Inc. ................................. 1,464,000
75,450 McKechnie Plc........................................ 542,552
168,000 Morgan Crucible Co. Plc.............................. 764,840
8,500 Nidec Corp. ......................................... 1,103,249
9,800 Nitto Kohki Co., Ltd. ............................... 128,019
12,890 Sidel................................................ 1,552,338
1,200 Taiyo Ink Mfg. Co., Ltd. ............................ 106,515
19,900 Valmet Oyj........................................... 243,859
------------
15,661,756
------------
Merchandising - 0.3%
4,300 Otsuka Kagu.......................................... 540,111
------------
Metals-Non Ferrous - 0.5%
16,531 GFI Industries....................................... 576,290
24,310 *Granges AB.......................................... 412,034
------------
988,324
------------
Multi-Industry - 1.6%
316,437 DCC Plc.............................................. 2,841,415
------------
Retail - 2.8%
8,500 Don Quijote Co., Ltd. ............................... 1,978,731
76,900 *Gadzooks, Inc. (b).................................. 744,969
64,800 *Nine West Group, Inc. .............................. 1,846,800
7,500 Shimamura Co., Ltd................................... 464,746
------------
5,035,246
------------
Technology - 5.8%
12,500 Advantest Corp. ..................................... 955,661
10,100 *Broadvision, Inc. .................................. 586,747
20,000 Eidos Plc............................................ 764,132
14,000 Emulex Corp. (b)..................................... 615,125
6,300 Marimba, Inc. ....................................... 383,119
51,000 Merkantildata ASA.................................... 509,314
14,000 Paltek Corp. ........................................ 493,552
173,200 *Radiant Systems, Inc. .............................. 1,980,975
29,600 *Safeguard Scientifics, Inc. (b)..................... 2,397,600
112,550 *Wind River Systems, Inc. (b)........................ 1,702,319
------------
10,388,544
------------
</TABLE>
44
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Telecommunications - 4.5%
5,100 Hikari Tsushin, Inc.................................. $ 1,067,660
67,300 ITC DeltaCom, Inc. .................................. 1,686,706
61,500 Netcom AB, Ser. B.................................... 1,975,406
26,200 Pacific Gateway Exchange, Inc. (b)................... 1,048,819
124,000 PairGain Technologies, Inc. ......................... 1,596,500
30,000 US LEC Corp. Cl. A................................... 690,938
------------
8,066,029
------------
Textiles - 1.1%
5,400 Gamma Holding NV..................................... 263,551
54,700 *Jones Apparel Group, Inc. .......................... 1,805,100
------------
2,068,651
------------
Transportation - Roads & Rail - 3.4%
69,500 *Coach USA, Inc. .................................... 1,650,625
62,600 *Covenant Transport, Inc. Cl. A...................... 872,488
48,000 *Eagle USA Airfreight, Inc........................... 1,759,500
52,950 *National RV Holdings, Inc........................... 1,370,081
186,000 ShinMaywa Industries Ltd............................. 471,931
------------
6,124,625
------------
Wholesale & International
Trade - 2.1%
41,036 Cortefiel SA......................................... $ 1,127,111
66,712 Laurus NV............................................ 1,434,158
20,288 Norbert Dentressangle................................ 600,103
6,250 *Tag Heuer International SA.......................... 625,737
------------
3,787,109
------------
Total Common Stocks
(cost $135,055,171)................................. 178,455,342
------------
MONEY MARKET SHARES - 7.2%
12,972,173 Navigator Prime Portfolio (c) (cost $12,972,173)..... 12,972,173
------------
SHORT-TERM INVESTMENTS - 0.3%
Repurchase Agreements - 0.3%
$ 613,000 Evergreen Joint Repurchase Agreement, Investments in
repurchase agreements, in a joint trading account,
4.89%, purchased 4/30/1999, maturing 5/3/1999,
maturity value $613,250 (cost $613,000) (a)........ $ 613,000
------------
Total Investments - (cost $148,640,344)...... 106.4% 192,040,515
Other Assets and
Liabilities - net........................... (6.4) (11,496,036)
----- ------------
Net Assets................................... 100.0% $180,544,479
===== ============
</TABLE>
* Non-income producing security.
(a) The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest
at April 30, 1999.
(b) All or a portion of this security is on loan.
(c) Represents investment of cash collateral received for securities on
loan.
Summary of Abbreviations
GDR Global Depository Receipts
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward Foreign Currency Exchange Contracts to Sell:
<TABLE>
<CAPTION>
Unrealized
U.S. Value at In Exchange Appreciation/
Exchange Date Contracts to Deliver April 30, 1999 for U.S. $ (Depreciation)
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/4/1999 3,505,589 British Pound Sterling $5,639,187 $5,739,000 $ 99,813
5/26/1999 4,865,758 Euro Currency 5,148,716 5,359,000 210,284
5/26/1999 6,996,824 Euro Currency 7,403,710 7,601,000 197,290
6/8/1999 1,511,053 Euro Currency 1,600,323 1,648,000 47,677
5/26/1999 610,237,295 Japanese Yen 5,127,637 5,074,000 (53,637)
5/26/1999 781,144,000 Japanese Yen 6,563,714 6,475,000 (88,714)
5/26/1999 3,370,153 Swiss Franc 2,215,145 2,232,000 16,855
5/26/1999 3,697,294 Swiss Franc 2,430,169 2,574,000 143,831
</TABLE>
45
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
At April 30, 1999, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
United States+.................................... $ 97,011,437 50.5%
United Kingdom.................................... 23,089,782 12.0%
Japan............................................. 21,732,022 11.3%
Switzerland....................................... 9,467,888 4.9%
France............................................ 6,124,918 3.2%
Australia......................................... 6,102,745 3.2%
Ireland........................................... 5,373,712 2.8%
Netherlands....................................... 5,076,791 2.7%
Germany........................................... 4,427,784 2.3%
Italy............................................. 3,338,698 1.8%
Spain............................................. 3,280,826 1.7%
Sweden............................................ 2,934,416 1.5%
Other............................................. 4,079,496 2.1%
------------ ------
$192,040,515 100.0%
============ ======
</TABLE>
+ Includes short-term securities.
See Combined Notes to Financial Statements.
46
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 93.0%
Aerospace & Military Technology - 0.3%
134,000 British Aerospace Plc.............................. $ 1,002,381
87,362,077 Empresa Brasileira de Aeronautica.................. 804,720
------------
1,807,101
------------
Automobiles - 3.6%
83,400 Compagnie Generale des Etablissements Michelin Cl.
B ................................................ 3,784,057
44,335 Daimlerchrysler AG................................. 4,376,777
917,000 Fuji Heavy Industries Ltd. ........................ 6,143,025
23,000 GKN Plc............................................ 392,571
48,000 Honda Motor Co., Ltd. ............................. 2,114,219
254,000 Suzuki Motor Corp. ................................ 3,615,810
125,000 Toyota Motor Corp. ................................ 3,548,401
------------
23,974,860
------------
Banking - 14.0%
176,100 Allied Irish Banks................................. 2,846,291
646,350 Anglo Irish Bank Corp. ............................ 1,877,712
265,668 Argentaria SA...................................... 6,247,307
39,340 Banco Popular Espana SA............................ 2,784,438
476,000 Bank Of Tokyo-Mitsubishi Ltd. ..................... 7,023,212
46,571 *Banque Nationale de Paris......................... 3,859,553
20,750 Banque Paribas..................................... 2,205,182
128,000 Barclays Bank Plc.................................. 4,072,971
419,000 Dai Ichi Kangyo Bank............................... 2,936,719
10,923 Dexia Belgium (Credit Communal).................... 1,680,087
312,850 HSBC Holdings Plc.................................. 11,624,410
410,072 Lloyds TSB Group Plc............................... 6,610,021
668,700 National Australia Bank Ltd. ...................... 13,018,707
1,505,000 Sakura Bank Ltd. .................................. 5,809,789
441,000 Sumitomo Bank Ltd. ................................ 5,967,644
142,694 Svenska Handelsbanken, Ser. A...................... 5,344,471
21,480 UBS AG............................................. 7,292,810
484 Verwalt & Private Bank............................. 2,062,004
------------
93,263,328
------------
Beverages & Tobacco - 4.0%
18,113 Al-Ahram Beverage Co. SA, GDR,144A................. 620,887
287,680 Bass Plc........................................... 4,516,838
78,671 Diageo Plc......................................... 906,155
1,831,100 Fosters Brewing Group Ltd. ........................ 5,341,307
168,913 Gallaher Group Plc................................. 968,719
114,670 Heineken NV........................................ 5,754,027
99,600 Imperial Tobacco................................... 985,393
41,400 Pernod Ricard SA................................... 2,792,478
421,000 Rembrandt Controlling Investments Ltd. ............ 1,902,629
239,400 Rembrandt Group Ltd. .............................. 1,819,597
184,800 Technical & Industrial Investments Ltd. ........... 778,984
------------
26,387,014
------------
COMMON STOCKS - continued
Broadcasting & Publishing - 4.6%
560,950 Arn Mondadori Edit SpA.............................. $ 9,955,473
12,809 Edipresse SA........................................ 3,232,264
150,205 Quebecor, Inc., Cl. B............................... 3,605,497
4,130,200 Seat Pagine Gille................................... 3,398,889
4,542 Springer (Axel) Verlag AG........................... 4,327,949
36,950 VNU NV.............................................. 1,495,001
105,420 Wolters Kluwer...................................... 4,588,267
------------
30,603,340
------------
Building Materials & Components - 0.2%
16,272 Lafarge SA.......................................... 1,581,456
------------
Business & Public Services - 4.2%
279,400 Aegis Group Plc..................................... 604,538
15,892 *ATOS SA............................................ 1,359,853
93,210 Boewe Systec AG..................................... 2,466,600
11,941 Cap Gemini NV....................................... 1,825,314
250,334 Compass Group Plc................................... 2,577,359
442,750 Cordiant Commerce Plc............................... 1,367,524
22,943 Dauphin O.T.A. ..................................... 1,963,196
231,000 Fujitsu Ltd. ....................................... 3,955,744
1,580 Holderbank Financiere Glarus AG..................... 1,904,450
113,700 Logica Plc.......................................... 1,097,455
131,700 Pearson Publishing Plc.............................. 2,796,628
421,450 Saatchi & Saatchi Plc............................... 1,633,948
25,000 Secom Co. Ltd. ..................................... 2,440,965
100,300 Telegraaf Holdings NV Certificate................... 2,182,713
------------
28,176,287
------------
Chemicals - 1.4%
133,180 Akzo Nobel NV....................................... 6,014,556
56,700 BASF AG............................................. 2,482,768
130,000 Sumitomo Bakelite Co. Ltd. ......................... 975,381
------------
9,472,705
------------
Electrical & Electronics - 1.1%
116,000 Canon, Inc. ........................................ 2,836,376
251,000 Nikon Corp. ........................................ 3,446,994
13,500 Sony Corp. ......................................... 1,260,467
------------
7,543,837
------------
Electronic Components - 3.2%
60,500 Kyocera Corp. ...................................... 3,591,903
505,000 NEC Corp. .......................................... 6,030,230
241,982 Smiths Industries Plc............................... 3,737,053
84,000 Tokyo Electron Ltd. ................................ 4,783,118
34,500 Tokyo Ohka Kogyo.................................... 956,247
381,000 Toshiba Corp. ...................................... 2,552,336
------------
21,650,887
------------
Energy Sources - 6.7%
473,650 British Petroleum Co. Plc........................... 8,991,136
735,467 ENI SpA............................................. 4,840,383
91,650 Repsol SA........................................... 1,491,014
343,810 Shell Transportation & Trading Co., Plc............. 2,577,386
</TABLE>
47
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Energy Sources - continued
103,417 Societe Nationale Elf Aquitaine SA.................. $ 16,059,711
80,279 Total SA, Cl. B..................................... 10,990,954
------------
44,950,584
------------
Financial Services - 3.3%
219,250 Close Brothers Group Plc............................ 2,525,385
16,041 Gamma Holding NV.................................... 782,892
17,050 Investor AB......................................... 773,990
202,400 Lend Lease Corp. Ltd. .............................. 2,728,722
205,000 Nomura Securities International, Inc. .............. 2,211,020
23,100 Orix Corp. ......................................... 1,858,910
8,800 Perpetual Plc....................................... 520,961
221,950 Prudential Corp. Plc................................ 3,156,330
5,240 Societe Eurafrance SA............................... 2,634,916
92,079 *Societe Genrale d'Enterprises SA................... 3,890,891
277,400 Technical Investment Corp. ......................... 1,073,586
------------
22,157,603
------------
Food & Household Products - 4.6%
43,600 CSM NV, Certificates................................ 2,330,588
9,100 Groupe Danone....................................... 2,432,150
4,280 Hero AG............................................. 2,146,031
149,465 Koninklijke Ahold NV................................ 5,550,004
136,425 Laurus NV........................................... 2,932,830
1,309 Lindt & Spruengli AG................................ 3,328,911
3,285 Nestle SA........................................... 6,078,230
126,200 Reckitt & Colman Plc................................ 1,498,272
48,100 Tiger Oats.......................................... 430,805
56,466 Unilever NV CVA..................................... 3,865,365
------------
30,593,186
------------
Forest Products & Paper - 0.4%
65,736 Enso OY............................................. 767,351
277,470 Jefferson Smurfit Group Plc......................... 756,248
25,793 UPM-Kymmene Corp. .................................. 780,647
------------
2,304,246
------------
Health & Personal Care - 10.8%
46,424 Bayer AG............................................ 1,971,501
39,100 Biora AB, ADR....................................... 491,194
50,900 *Fresenius Medical Care AG.......................... 2,731,555
59,091 Glaxo Wellcome Plc.................................. 1,750,999
26,305 Hoechst AG.......................................... 1,246,319
120,570 *ISS International Service System AS, Ser. B........ 7,078,038
199,000 Kao Corp. .......................................... 5,049,154
582,000 London International Group Plc...................... 1,694,637
1,722 Novartis AG......................................... 2,518,046
28,400 Novo Nordisk AS..................................... 2,785,422
101,673 Pharmacia & Upjohn, Inc. ........................... 5,639,797
253,677 Rhone-Poulenc SA, Cl. A............................. 12,059,299
412 Roche Holding AG.................................... 4,844,517
134,360 SmithKline Beecham Plc.............................. 1,776,711
16,820 SmithKline Beecham Plc, ADR......................... 1,104,864
1,619,933 Sonic Healthcare Ltd. .............................. 4,716,758
Health & Personal Care - continued
293,000 Taisho Pharmaceutical Co. .......................... $ 9,004,438
153,000 Terumo Corp. ....................................... 3,331,100
79,000 Yamanouchi Pharmaceutical Co., Ltd. ................ 2,500,586
------------
72,294,935
------------
Industrial Components - 2.3%
24,270 Compagnie de Saint Gobain........................... 4,166,310
76,300 McKechnie Plc....................................... 548,665
799,439 Siebe Plc........................................... 4,063,942
946,350 Williams Plc........................................ 6,546,290
------------
15,325,207
------------
Insurance - 6.0%
17,244 Aegon NV............................................ 1,653,153
22,355 Allianz AG, Registered Shares....................... 7,120,171
559,226 Allied Zurich....................................... 7,412,925
76,800 Assicruz Generali................................... 2,989,697
80,548 AXA-UAP............................................. 10,398,110
142,540 Fortis (NL) NV...................................... 5,074,522
109,075 Scor................................................ 5,438,707
------------
40,087,285
------------
Leisure & Tourism - 0.6%
709,930 Ladbroke Group Plc.................................. 3,411,917
129,700 Vardon Plc.......................................... 405,300
------------
3,817,217
------------
Machinery & Engineering - 2.2%
664,000 Amada Co. Ltd. ..................................... 4,170,156
247,191 Electrolux AB....................................... 5,010,034
58,100 SMC Corp. .......................................... 5,356,565
------------
14,536,755
------------
Merchandising - 1.9%
4,155 Karstadt AG......................................... 1,867,665
614,845 New Clicks Holdings................................. 823,498
3,900 Promodes, Inc. ..................................... 2,471,976
59,000 Seven-Eleven Japan Co. Ltd. ........................ 5,034,417
88,300 Vendex NV........................................... 2,196,747
------------
12,394,303
------------
Metals-Non Ferrous - 1.1%
85,600 Assa Abloy AB, Ser. B............................... 3,733,649
1,055,450 Billiton Plc........................................ 3,586,819
------------
7,320,468
------------
Mining - 1.0%
61,315 Anglo American Corp. Ltd. .......................... 3,163,995
157,840 Placer Dome, Inc. .................................. 2,229,960
24,448 Potash Corp. of Saskatchewan, Inc. ................. 1,488,912
------------
6,882,867
------------
Miscellaneous Materials & Commodities - 0.3%
262,000 Citizen Watch Co. Ltd. ............................. 2,171,998
------------
</TABLE>
48
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Multi-Industry - 1.6%
120,700 Preussag AG......................................... $ 6,349,873
325,600 Rentokil Initial Plc................................ 1,910,534
42,480 Thyssen Krupp AG.................................... 928,931
59,718 Valmet OYJ.......................................... 731,799
2,018 Vivendi............................................. 471,344
------------
10,392,481
------------
Real Estate - 1.0%
7,000 Sponda OYJ.......................................... 37,344
11,545,300 Unione Immobiliare.................................. 6,610,479
------------
6,647,823
------------
Telecommunications - 8.5%
340,498 British Telecommunications Plc...................... 5,685,739
148,400 Cable & Wireless Optus Ltd. ........................ 333,893
74,502 Deutsche Telekom AG................................. 2,935,656
16,106 France Telecom SA................................... 1,300,749
16,834 Mannesmann AG....................................... 2,215,817
76,000 Matsushita Communication Industries Co. Ltd. ....... 5,454,028
177,200 Nokia AB OY......................................... 13,655,810
197,015 *Orange Plc......................................... 2,662,279
254,504 Telecom Italia Mobile (TIM) SpA..................... 1,516,360
1,244,242 Telecom Italia SpA.................................. 13,236,184
431,610 Vodafone Group Plc.................................. 7,950,089
------------
56,946,604
------------
Transportation-Roads & Rail - 1.3%
718,000 Nippon Express Co. Ltd.............................. 4,689,667
185,550 Railtrack Group Plc................................. 3,874,455
------------
8,564,122
------------
Utilities-Electric, Gas & Water - 0.8%
42,973 Berliner Kraft & Licht AG........................... 679,134
110,250 Scot & Southern En.................................. 1,035,778
22,272 Suez Lyonn des Eaux................................. 3,788,031
------------
5,502,943
------------
Wholesale & International Trade - 2.0%
1,146 Nippon Telephone & Telegraph Corp................... 12,475,297
23,862 Norbert Dentressangle............................... 705,819
------------
13,181,116
------------
Total Common Stocks (cost $540,994,810)............. 620,532,558
------------
PREFERRED STOCKS - 1.1%
Construction - 0.6%
12,657 Grohe (Friedrich) AG............................... $ 3,610,132
------------
Health & Personal Care - 0.5%
20,130 Fresenius AG....................................... 3,508,780
------------
Total Preferred Stocks (cost $6,864,482)........... 7,118,912
------------
RIGHTS - 0.0%
Multi-Industry - 0.0%
120,700 Preussag AG, Expire 5/3/1999 (cost $0)............. 113,482
------------
Principal Amount Value
CONVERTIBLE DEBENTURES - 0.0%
Metals-Steel - 0.0%
$ 56,500 Compahnia Vale do Rio Doce de Navegacao SA 1.00%,
12/31/1999 (cost $0).............................. 3
------------
SHORT-TERM INVESTMENTS - 4.7%
Repurchase Agreements - 4.7%
$31,458,000 Evergreen Joint Repurchase Agreement, Investments
in repurchase agreements, in a joint trading
account, 4.89%, purchased 4/30/1999, maturing
5/3/1999, maturity value $31,470,819
(cost $31,458,000)(a)............................. 31,458,000
------------
Total Investments -(cost $579,317,292)....... 98.8% 659,222,955
Other Assets and Liabilities - net........... 1.2 8,076,892
----- -----------
Net Assets................................... 100.0% 667,299,847
===== ===========
</TABLE>
* Non-income producing security.
(a) The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices plus accrued interest at April
30, 1999.
144A Security that may be resold to "qualified institutional buyers" under Rule
144A of the Securities Act of 1933. This security has been determined to
be liquid under guidelines established by the Board of Trustees.
Summary of Abbreviations
ADR American Depository Receipt
49
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
At April 30, 1999, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
Japan............................................. $133,295,916 20.2%
United Kingdom.................................... 107,960,966 16.4%
France............................................ 96,180,058 14.6%
Germany........................................... 48,933,110 7.4%
Netherlands....................................... 44,420,664 6.7%
Italy............................................. 42,547,464 6.4%
Switzerland....................................... 33,407,264 5.1%
United States+.................................... 31,458,000 4.8%
Australia......................................... 26,139,387 4.0%
Sweden............................................ 20,993,135 3.2%
Finland........................................... 15,972,951 2.4%
Hong Kong......................................... 11,624,410 1.8%
Spain............................................. 10,522,759 1.6%
South Africa...................................... 9,993,096 1.5%
Denmark........................................... 9,863,459 1.5%
Canada............................................ 7,324,369 1.1%
Ireland........................................... 5,480,250 0.8%
Belgium........................................... 1,680,087 0.3%
Brazil............................................ 804,723 0.1%
Egypt............................................. 620,887 0.1%
------------ -------
$659,222,955 100.00%
============ =======
</TABLE>
+ Includes short-term securities.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward Foreign Currency Exchange Contracts to Buy:
<TABLE>
<CAPTION>
U.S. Value at In Exchange Unrealized
Exchange Date Contracts to Receive April 30, 1999 for U.S. $ (Depreciation)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/28/1999 9,138,715 Euro Currency $ 9,671,396 $ 9,690,876 $ (19,480)
Forward Foreign Currency Exchange Contracts to Sell:
<CAPTION>
Unrealized
U.S. Value at In Exchange Appreciation/
Exchange Date Contracts to Deliver April 30, 1999 for U.S. $ (Depreciation)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/4/1999 1,600,244 British Pound Sterling $25,738,431 $26,194,000 $ 455,569
5/28/1999 51,764,386 Euro Currency 54,781,650 57,078,000 2,296,350
5/28/1999 71,642,272 Euro Currency 75,818,186 77,825,000 2,006,814
6/8/1999 7,071,679 Euro Currency 7,489,456 7,714,000 224,544
5/28/1999 4,177,880,000 Japanese Yen 35,114,766 34,700,000 (414,766)
5/28/1999 2,472,156,500 Japanese Yen 20,778,289 20,500,000 (278,289)
5/28/1999 1,251,557,856 Japanese Yen 10,519,249 10,518,000 (1,249)
5/28/1999 16,361,304 Swiss Franc 10,756,345 11,392,000 635,655
5/28/1999 8,730,257 Swiss Franc 5,739,497 5,780,000 40,503
</TABLE>
FUTURES CONTRACTS - SHORT POSITIONS
<TABLE>
<CAPTION>
Unrealized
Number of Initial Contract Value at Appreciation/
Expiration Contracts Amount April 30, 1999 (Depreciation)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
June 1999 341 Nikkei 225 - Chicago $28,481,650 $28,422,350 $(59,300)
June 1999 26 Nikkei 225 - Osaka 3,561,399 3,644,132 82,733
</TABLE>
See Combined Notes to Financial Statements.
50
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
LATIN AMERICA FUND
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 98.9%
Aerospace & Military
Technology - 3.3%
147,757,347 Empresa Brasileira de Aeronautica SA................ $ 1,361,040
-----------
Banking - 5.7%
25,700 Banco de Galicia y Buenos Aires SA de CV, Cl. B,
ADR................................................ 593,509
6,400,000 Banco Est Sao Paulo SA.............................. 285,129
13,630 Banco Frances del Rio de la Plata SA, ADR........... 350,973
320,000 Banco Itau SA....................................... 168,573
284,600 Grupo Financiero Banamex AC, Ser. O................. 725,360
8,600 Uniao de Bancos Brasileiros SA, GDR ("Unibanco").... 213,388
-----------
2,336,932
-----------
Beverages & Tobacco - 8.5%
18,595 Bavaria SA.......................................... 102,980
30,900 Coca-Cola Co. Femsa SA, ADR......................... 639,244
3,200 Compania Cervecerias Unidas SA, ADR................. 78,600
25,000 Embotelladora Andina SA............................. 74,688
10,700 Embotelladora Andina SA, Ser. A, ADR................ 193,269
29,396 Fomento Economico Mexicano, Ser. B, ADR............. 1,069,279
118,900 Grupo Modelo SA de CV, Ser. C....................... 313,335
36,900 Panamerican Beverages, Inc., Cl. A.................. 818,719
28,400 Souza Cruz Cia SA................................... 191,936
-----------
3,482,050
-----------
Broadcasting & Publishing - 3.5%
22,031 *Grupo Televisa SA, ADR............................. 903,271
79,500 TV Azteca SA de CV, ADR............................. 556,500
-----------
1,459,771
-----------
Building Materials &
Components - 5.8%
40,343 Apasco SA de CV..................................... 237,954
27,529 Cementos Lima SA.................................... 437,313
251,732 Cementos Norte Pacasmayo SA......................... 289,676
266,763 Cemex SA de CV, Ser. B.............................. 1,238,542
236,000 Grupo Cemementos Chihuahua SA de CV, Ser. B......... 191,048
-----------
2,394,533
-----------
Construction - 2.3%
229,400 *Corporacion GEO SA de CV, Ser. B................... 965,764
-----------
Electrical & Electronics - 0.0%
13,201 Companhia Paulista de Forca E Luz................... 835
Energy Sources - 15.5%
23,000 Companhia Energetica de Minas Gerais, ADR
("CEMIG").......................................... 551,788
273,826 *Perez Compancia SA, Cl. B.......................... 1,698,418
2,890,000 *Petroleo Brasileiro SA, ("Petrobras").............. 469,777
56,150 Petroleo Brasileiro SA, ADR, ("Petrobras").......... 907,081
89,091 Petroleos de Chile SA............................... 292,463
58,550 YPF SA, Cl. D, ADR.................................. 2,459,100
-----------
6,378,627
-----------
Financial Services - 1.4%
9,100 Credicorp Ltd....................................... 92,137
1,351,000 Grupo Financiero Bancomer SA, Ser. O................ 469,341
-----------
561,478
-----------
Food & Household Products - 1.0%
187,074 Grupo Industrial Bimbo, Ser. A...................... 402,897
Health & Personal Care - 2.0%
206,100 Kimberly Clark Corp. de Mexico SA de CV, Cl. A...... 802,987
Machinery & Engineering - 0.5%
304,500 Enrique Ferreyros SA................................ 212,612
76,320 Inepar Energia SA (b)............................... 0
-----------
212,612
-----------
Merchandising - 6.8%
558,300 Cifra SA de CV, Ser. V.............................. 1,057,387
24,737 Distribucion Y Servicio D&S, ADR.................... 374,147
190,000 Organizacion Soriana, Ser. B........................ 855,411
51,900 Santa Isabel SA, ADR................................ 519,000
-----------
2,805,945
-----------
Metals-Steel - 2.1%
295,200 Hylsamex SA de CV, Ser. B........................... 853,013
Mining - 2.6%
36,860,000 *Caemi Mineracao E Metalurgia SA.................... 1,065,190
-----------
Multi-Industry - 4.6%
126,300 ALFA SA de CV, Ser. A............................... 502,329
19,435 Desc SA de CV, Ser. C, ADR.......................... 481,016
189,400 Grupo Carso SA de CV, Ser. A1....................... 913,179
-----------
1,896,524
-----------
Telecommunications - 27.8%
27,600 Compania Anonima Nacional Telefonos de Venezuela,
Cl. D, ADR......................................... 759,000
17,000,000 Embratel Participacoes SA........................... 276,851
29,200 *Embratel Participacoes SA, ADR..................... 474,500
7,300 Tele Centro Sul Participacoes SA, ADR............... 387,813
63,950 Tele Norte Leste Participacoes SA, ADR.............. 1,083,153
18,449 Telecom Argentina STET - France Telecom SA, Cl. B,
ADR................................................ 636,491
36,600 *Telecomunicacoes Brasileiras SA, ADR ("Telebras").. 2,859
28,900 *Telecomunicacoes Brasileiras SA, ADR, Preference
Shares ("Telebras")................................ 2,635,319
158,497 Telecomunicacoes de Minas Gerais, Cl. B............. 4,055
</TABLE>
51
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
LATIN AMERICA FUND
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Telecommunications - continued
2,900,000 *Telecomunicacoes de Sao Paulo SA................... $ 362,282
20,574 Telefonica de Argentina, Cl. B, ADR................. 768,953
97,400 Telefonica del Peru SA, Cl. B, ADR.................. 1,467,087
32,364 Telefonos de Chile, Ser. A.......................... 212,486
29,237 Telefonos de Mexico SA, ADR......................... 2,214,703
28,337 Telesp Participacpoes SA (b)........................ 0
6,900 Telesp Participacpoes SA, ADR....................... 172,500
-----------
11,458,052
-----------
Utilities - Electric, Gas &
Water - 5.5%
145,891 Centrais Eletricas Brasileiras SA, ADR.............. 1,451,017
9,400,000 Companhia Energetica de Minas Gerais, ADR
("CEMIG").......................................... 226,370
36,200 Empresa Nacional de Electric, ADR................... 506,800
3,386 Enersis SA, ADR..................................... 64,969
-----------
2,249,156
-----------
Total Common Stocks
(cost $32,639,787)................................. 40,687,406
-----------
Principal Amount Value
CONVERTIBLE DEBENTURES - 0.0%
Metals-Steel - 0.0%
$ 207,800 Compahnia Vale do Rio Doce de Navegacao SA
1.00%, 12/31/1999 (cost $0) (b)..................... 13
-----------
Shares Value
WARRANTS - 0.0%
Machinery & Engineering - 0.0%
38,160 Inepar Energia SA, Ser. C (cost $0) (b)............. $ 0
-----------
RIGHTS - 0.0%
Food & Household Products - 0.0%
8,208 Grupo Industrial Bimbo (cost $0) (b)................ 0
-----------
Principal Amount Value
SHORT-TERM INVESTMENTS - 2.4%
Repurchase Agreements - 2.4%
$ 1,011,000 Evergreen Joint Repurchase Agreement Investments in
repurchase agreements, in a joint trading account,
4.89% purchased 4/30/1999, maturing 5/3/1999,
maturity value $1,011,412 (cost $1,011,000) (a).... 1,011,000
-----------
Total Investments - (cost $33,650,787)....... 101.3% 41,698,419
Other Assets and Liabilities - net........... (1.3) (542,410)
----- -----------
Net Assets................................... 100.0% $41,156,009
===== ===========
</TABLE>
* Non-income producing security.
(a) The repurchase agreements is fully collateralized by U.S. government and/or
agency obligations based on market prices plus accrued interest at April
30, 1999.
(b) Security is being fair valued in accordance with procedures established
by the Board of Trustees.
Summary of Abbreviations
ADR American Depository Receipt
GDR Global Depository Receipt
At April 30, 1999, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
Mexico............................................ $15,572,036 37.3%
Brazil............................................ 10,009,527 24.0%
Argentina......................................... 6,507,443 15.6%
United States+.................................... 3,380,397 8.1%
Peru.............................................. 2,498,826 6.0%
Chile............................................. 2,316,422 5.6%
Venezuela......................................... 759,000 1.8%
Spain............................................. 551,788 1.3%
Columbia.......................................... 102,980 0.3%
----------- ------
$41,698,419 100.0%
=========== ======
</TABLE>
+ Includes short-term securities.
See Combined Notes to Financial Statements.
52
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
PRECIOUS METALS FUND
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 99.9%
Gold Mining - 64.0%
115,819 AngloGold Ltd......................................... $ 5,443,588
484,520 Ashanti Goldfields Ltd., GDR.......................... 4,360,680
2,274,000 *Avgold Ltd........................................... 1,296,759
361,000 Cambior, Inc.......................................... 1,460,736
1,100,000 Delta Gold NL......................................... 1,710,623
426,900 Euro Nevada Mining Ltd................................ 7,304,818
439,400 Franco Nevada Mining Ltd.............................. 8,498,100
69,200 *Getchell Gold Corp................................... 2,361,450
251,700 *Goldcorp, Inc........................................ 1,519,073
100,000 *Goldcorp, Inc. Cl. A................................. 593,750
457,100 Goldfields Ltd........................................ 2,835,748
262,000 *Greenstone Resources Ltd............................. 79,062
350,000 Homestake Mining Co................................... 3,346,875
910,000 *Kinross Gold Corp.................................... 2,047,500
100,000 Kinross Gold Corp..................................... 222,893
400,000 *Lihir Gold Ltd....................................... 365,286
100,000 *Meridian Gold, Inc................................... 572,663
596,500 *Meridian Gold, Inc................................... 3,429,875
170,000 Newmont Mining Corp................................... 4,090,625
1,984,824 Normandy Mining Ltd................................... 1,720,629
337,100 *Orvana Minerals Corp................................. 99,412
205,000 Placer Dome, Inc...................................... 2,896,235
106,000 *Rio Narcea Gold Mine, Inc............................ 54,523
1,020,629 Ross Mining NL........................................ 628,123
6,000,000 *Santa Cruz Gold, Inc................................. 205,747
499,600 Sons of Gwalia Ltd.................................... 1,504,938
1,157,500 *TVX Gold, Inc........................................ 1,349,530
1,000,000 *Viceroy Resource Corp................................ 1,131,610
288,585 *Western Areas Gold Mining Ltd., ADR.................. 973,859
-----------
62,104,710
-----------
Metals & Mining - 35.9%
100,100 *Aber Resources Ltd................................... 665,915
1,799,200 Acacia Resources Ltd.................................. 2,500,303
157,800 Anglo-American Platinum Holdings...................... 2,878,521
90,000 Barrick Gold Corp..................................... 1,811,250
168,700 Barrick Gold Corp..................................... 3,407,321
Shares Value
COMMON STOCKS - continued
Metals & Mining - continued
1,999,000 *Canyon Resources Corp............................... $ 437,281
1,591,400 Gencor Ltd........................................... 4,445,982
800,000 *Geomaque Exploration Ltd............................ 795,556
900,200 Harmony Gold Mining Ltd.............................. 5,177,814
175,000 Impala Platinum Holdings Ltd......................... 3,980,279
135,000 *Randgold Resources, Inc., GDR....................... 641,250
300,000 *Repadre Capital Corp................................ 534,943
195,300 *SouthernEra Resources Ltd........................... 636,222
244,250 *Stillwater Mining Co................................ 6,915,328
-----------
34,827,965
-----------
Total Common Stocks
(cost $117,466,545)................................. 96,932,675
-----------
WARRANTS - 0.0%
Metals & Mining - 0.0%
227,500 *Atlas Corp., Expire 12/15/1999...................... 1,138
-----------
429,000 *Vengold, Inc., Ser. B, Expire 6/13/2000............. 7,355
-----------
Total Warrants (cost $294,417)....................... 8,493
-----------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 3.1%
Repurchase Agreement - 3.1%
$2,965,000 Evergreen Joint Repurchase Agreement Investments in
repurchase agreements, in a joint trading account,
4.89%, purchased 4/30/1999, maturing 5/3/1999,
maturity value $2,966,208 (cost $2,965,000) (a)..... 2,965,000
-----------
Total Investments -
(cost $120,725,962).......................... 103.0% 99,906,168
Other Assets and
Liabilities - net............................ (3.0) (2,918,945)
----- -----------
Net Assets.................................... 100.0% $96,987,223
===== ===========
</TABLE>
* Non-income producing security.
(a) The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest
at April 30, 1999.
Summary of Abbreviations
ADR American Depository Receipts
GDR Global Depository Receipts
At April 30, 1999, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
Canada............................................ $41,685,539 41.7%
South Africa...................................... 32,034,480 32.0%
United States+.................................... 17,756,247 17.8%
Australia......................................... 8,064,616 8.1%
Papua New Guinea.................................. 365,286 0.4%
----------- ------
$99,906,168 100.0%
=========== ======
</TABLE>
+ Includes short-term securities.
See Combined Notes to Financial Statements.
53
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL AND GLOBAL GROWTH FUNDS
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Emerging Global Global International Latin Precious
Markets Growth Leaders Opportunities Growth America Metals
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............. $53,253,676 $295,142,596 $148,640,344 $579,317,292 $33,650,787 $120,725,962
Net unrealized gains or
losses on securities... 10,141,691 93,079,452 43,400,171 79,905,663 8,047,632 (20,819,794)
- ---------------------------------------------------------------------------------------------------------------
Market value of
securities............. 63,395,367 388,222,048 192,040,515 659,222,955 41,698,419 99,906,168
Investment in wholly-
owned, unconsolidated
foreign subsidiary, at
value.................. 0 0 0 0 0 850,300
Cash.................... 2,057 189 89,213 2,132,229 782 928
Foreign currency, at
value (cost $6,338,
$2,474,276, $250,165,
$8,837, $7,005 and $0,
respectively).......... 6,403 2,465,132 250,950 8,891 6,858 0
Receivable for
securities sold........ 5,281,032 2,219,346 2,053,323 1,419,562 1,470,087 76,964
Receivable for Fund
shares sold............ 17,114 10,130,925 458,232 39,092 21,817 360,100
Dividends, interest and
tax reclaims
receivable............. 115,443 597,261 339,318 2,728,174 319,829 113,586
Receivable for closed
forward foreign
currency exchange
contracts.............. 0 0 0 116,783 0 0
Unrealized gains on
forward foreign
currency exchange
contracts.............. 0 0 715,750 5,659,435 0 0
Deferred organization
expenses............... 3,568 11,926 0 0 351 0
Prepaid expenses and
other assets........... 30,252 83,907 68,876 143,979 33,891 99,675
- ---------------------------------------------------------------------------------------------------------------
Total assets.......... 68,851,236 403,730,734 196,016,177 671,471,100 43,552,034 101,407,721
- ---------------------------------------------------------------------------------------------------------------
Liabilities
Payable for securities
purchased.............. 6,763,782 0 453,973 1,529,584 1,902,371 1,892,408
Payable for Fund shares
redeemed............... 697,229 437,984 1,545,935 261,559 373,804 2,425,920
Payable for closed
forward foreign
currency exchange
contracts.............. 0 0 0 259,463 0 0
Payable for securities
on loan................ 0 0 12,972,173 0 0 0
Unrealized losses on
forward foreign
currency exchange
contracts.............. 0 0 142,351 713,784 0 0
Payable for daily
variation margin on
open futures
contracts.............. 0 0 0 502,165 0 0
Demand note payable..... 0 28,338,000 0 0 0 0
Advisory fee payable.... 72,442 302,755 150,261 343,158 24,000 56,548
Distribution Plan
expenses payable....... 3,290 85,136 58,322 46,334 12,181 20,591
Due to other related
parties................ 1,217 8,601 0 0 0 0
Accrued expenses and
other liabilities...... 68,646 204,420 148,683 515,206 83,669 25,031
- ---------------------------------------------------------------------------------------------------------------
Total liabilities..... 7,606,606 29,376,896 15,471,698 4,171,253 2,396,025 4,420,498
- ---------------------------------------------------------------------------------------------------------------
Net assets.............. $61,244,630 $374,353,838 $180,544,479 $667,299,847 $41,156,009 $ 96,987,223
- ---------------------------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital......... $70,472,782 $276,726,090 $124,440,200 $611,752,647 $61,433,987 $196,795,532
Undistributed
(overdistributed) net
investment income...... (41,157) (1,467,738) 984,935 10,677,175 177,306 (111,313)
Accumulated net
realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... (19,324,705) 6,029,774 11,154,251 (39,862,096) (28,500,158) (78,878,844)
Net unrealized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... 10,137,710 93,065,712 43,965,093 84,732,121 8,044,874 (20,818,152)
- ---------------------------------------------------------------------------------------------------------------
Total net assets........ $61,244,630 $374,353,838 $180,544,479 $667,299,847 $41,156,009 $ 96,987,223
- ---------------------------------------------------------------------------------------------------------------
Net assets consists of
Class A................. $ 8,610,894 $129,460,893 $ 53,108,596 $127,663,604 $10,147,706 $ 79,030,677
Class B................. 3,048,400 194,727,517 107,820,966 66,025,679 26,602,545 17,528,215
Class C................. 803,233 4,583,503 19,577,136 2,704,120 4,140,059 428,331
Class Y................. 48,782,103 45,581,925 37,781 470,906,444 265,699 --
- ---------------------------------------------------------------------------------------------------------------
Total net assets........ $61,244,630 $374,353,838 $180,544,479 $667,299,847 $41,156,009 $ 96,987,223
- ---------------------------------------------------------------------------------------------------------------
Shares outstanding
Class A................. 986,865 7,485,474 2,411,957 15,889,191 1,168,095 6,494,890
Class B................. 359,879 11,494,178 5,161,957 8,284,518 3,166,505 1,453,731
Class C................. 94,839 270,975 935,121 339,403 493,758 35,527
Class Y................. 5,537,803 2,614,253 1,709 58,646,659 30,455 --
- ---------------------------------------------------------------------------------------------------------------
Net asset value per
share
Class A................. $ 8.75 $ 17.29 $ 22.02 $ 8.03 $ 8.69 $ 12.17
- ---------------------------------------------------------------------------------------------------------------
Class A -- Offering
price (based on sales
charge of 4.75%)....... $ 9.17 $ 18.15 $ 23.12 $ 8.43 $ 9.12 $ 12.78
- ---------------------------------------------------------------------------------------------------------------
Class B................. $ 8.47 $ 16.94 $ 20.89 $ 7.97 $ 8.40 $ 12.06
- ---------------------------------------------------------------------------------------------------------------
Class C................. $ 8.47 $ 16.91 $ 20.94 $ 7.97 $ 8.38 $ 12.06
- ---------------------------------------------------------------------------------------------------------------
Class Y................. $ 8.81 $ 17.44 $ 22.11 $ 8.03 $ 8.72 --
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
54
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL AND GLOBAL GROWTH FUNDS
- --------------------------------------------------------------------------------
Statements of Operations
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Emerging Global Global International Latin Precious
Markets Growth Leaders Opportunities Growth America Metals
Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Dividends (net of
foreign withholding
taxes of $43,493,
$134,231, $110,564
$426,728, $48,448 and
$30,368,
respectively).......... $ 399,512 $ 2,036,743 $ 864,291 $ 5,376,454 $ 596,840 $ 903,291
Interest................ 153,619 422,251 79,108 845,583 96,698 32,673
- -----------------------------------------------------------------------------------------------------------
Total investment
income................. 553,131 2,458,994 943,399 6,222,037 693,538 935,964
- -----------------------------------------------------------------------------------------------------------
Expenses
Advisory fee............ 422,575 1,744,011 965,753 2,068,847 133,904 365,746
Distribution Plan
expenses............... 26,982 1,101,777 755,050 537,184 154,900 201,181
Administrative services
fees................... 7,216 47,000 17,390 58,349 3,517 8,085
Transfer agent fee...... 36,509 616,359 333,946 542,668 117,452 358,264
Trustees' fees and
expenses............... 477 4,718 1,888 8,737 450 708
Printing and postage
expenses............... 12,509 56,117 34,544 71,301 10,316 17,819
Custodian fee........... 48,873 148,911 70,573 430,428 36,048 39,135
Organization expenses... 5,048 3,946 0 0 4,246 0
Other................... 34,474 206,898 51,959 105,632 54,458 61,911
- -----------------------------------------------------------------------------------------------------------
Total expenses........ 594,663 3,929,737 2,231,103 3,823,146 515,291 1,052,849
Less: Fee credits...... (6,552) (15,994) (9,025) (18,183) (2,610) (3,164)
- -----------------------------------------------------------------------------------------------------------
Net expenses.......... 588,111 3,913,743 2,222,078 3,804,963 512,681 1,049,685
- -----------------------------------------------------------------------------------------------------------
Net investment income... (34,980) (1,454,749) (1,278,679) 2,417,074 180,857 (113,721)
- -----------------------------------------------------------------------------------------------------------
Equity in earnings of
wholly-owned,
unconsolidated foreign
subsidiary............. 0 0 0 0 0 5,776
- -----------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities,
futures contracts and
foreign currency
related transactions
Net realized gains or
losses on:
Securities............ (2,333,292) 7,446,255 15,478,492 7,123,826 (4,213,878) (14,308,984)
Futures contracts..... 0 0 (437,174) 66,425 0 0
Foreign currency
related
transactions......... (716,715) (140,236) 427,864 2,582,805 (1,002,045) 17,209
- -----------------------------------------------------------------------------------------------------------
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... (3,050,007) 7,306,019 15,469,182 9,839,736 (5,215,923) (14,291,775)
- -----------------------------------------------------------------------------------------------------------
Net change in
unrealized gains on
securities, futures
contracts and foreign
currency related
transactions........... 9,054,983 49,756,870 23,430,222 35,963,179 9,429,980 18,032,326
- -----------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains on
securities, futures
contracts and foreign
currency related
transactions........... 6,004,976 57,062,889 38,899,404 45,802,915 4,214,057 3,740,551
- -----------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............. $5,969,996 $55,608,140 $37,620,725 $48,219,989 $4,394,914 $ 3,632,606
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
55
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL AND GLOBAL GROWTH FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Emerging Global Global International Latin Precious
Markets Growth Leaders Opportunities Growth America Metals
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income... $ (34,980) $ (1,454,749) $ (1,278,679) $ 2,417,074 $ 180,857 $ (113,721)
Equity in earnings of
wholly-owned
unconsolidated foreign
subsidiary............. 0 0 0 0 0 5,776
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... (3,050,007) 7,306,019 15,469,182 9,839,736 (5,215,923) (14,291,775)
Net change in unrealized
gains on securities,
futures contracts and
foreign currency
related transactions... 9,054,983 49,756,870 23,430,222 35,963,179 9,429,980 18,032,326
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 5,969,996 55,608,140 37,620,725 48,219,989 4,394,914 3,632,606
- ---------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A................ (10,598) 0 0 0 0 0
Class B................ (4,073) 0 0 0 0 0
Class C................ (995) 0 0 0 0 0
Class Y................ (136,530) 0 0 0 0 0
Net realized gains
Class A................ 0 0 (3,485,496) 0 0 0
Class B................ 0 0 (7,900,494) 0 0 0
Class C................ 0 0 (1,472,664) 0 0 0
Class Y................ 0 0 (1,957) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (152,196) 0 (12,860,611) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold................... 20,639,003 1,182,298,333 77,706,934 166,674,114 18,769,422 53,071,218
Payment for shares
redeemed............... (24,021,151) (1,218,478,114) (136,982,488) (183,280,342) (25,290,356) (69,469,822)
Net asset value of
shares issued in
reinvestment of
distributions.......... 114,987 0 10,894,210 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Net decrease in net
assets resulting from
capital share
transactions.......... (3,267,161) (36,179,781) (48,381,344) (16,606,228) (6,520,934) (16,398,604)
- ---------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 2,550,639 19,428,359 (23,621,230) 31,613,761 (2,126,020) (12,765,998)
Net assets
Beginning of period..... 58,693,991 354,925,479 204,165,709 635,686,086 43,282,029 109,753,221
- ---------------------------------------------------------------------------------------------------------------------
End of period........... $ 61,244,630 $ 374,353,838 $ 180,544,479 $ 667,299,847 $ 41,156,009 $ 96,987,223
- ---------------------------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... $ (41,157) $ (1,467,738) $ 984,935 $ 10,677,175 $ 177,306 $ (111,313)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
56
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
INTERNATIONAL AND GLOBAL GROWTH FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year Ended October 31, 1998
<TABLE>
<CAPTION>
Emerging Global Global International Latin Precious
Markets Growth Leaders Opportunities Growth America Metals
Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income... $ 1,147,818 $ (1,983,258) $ (3,154,607) $ 1,682,972 $ 538,745 $ (756,410)
Equity in earnings of
wholly-owned
unconsolidated foreign
subsidiary............. 0 0 0 0 0 $ 24,179
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... (16,618,543) 421,087 7,925,022 (26,164,161) (23,161,902) (50,552,000)
Net change in unrealized
gains or losses on
securities, futures
contracts and foreign
currency related
transactions........... 1,538,854 22,226,344 (33,746,429) 3,471,235 4,561,215 25,221,436
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations............ (13,931,871) 20,664,173 (28,976,014) (21,009,954) (18,061,942) (26,062,795)
- --------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class B................ 0 0 0 (5,718,223) 0 0
Class Y................ (48,897) 0 0 0 0 0
Net realized gains
Class A................ (79,620) (165,467) (6,152,515) 0 (2,915,764) 0
Class B................ (102,137) (582,223) (14,270,759) (26,737,026) (16,639,668) (5,647,344)
Class C................ (33,101) (10,308) (2,859,903) 0 (2,385,233) 0
Class Y................ (1,528,035) (150,779) (2) 0 0 0
- --------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (1,791,790) (908,777) (23,283,179) (32,455,249) (21,940,665) (5,647,344)
- --------------------------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold................... 29,751,699 516,465,732 113,926,118 272,008,827 26,805,997 179,561,024
Payment for shares
redeemed............... (25,828,310) (448,691,323) (236,427,456) (167,827,455) (62,999,696) (193,454,892)
Net asset value of
shares issued in
reinvestment of
distributions.......... 1,273,339 804,394 20,555,694 28,410,070 19,625,500 4,759,767
Net asset value of
shares issued in
acquisition............ 0 55,765,847 0 404,753,737 0 39,424,759
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 5,196,728 124,344,650 (101,945,644) 537,345,179 (16,568,199) 30,290,658
- --------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... (10,526,933) 144,100,046 (154,204,837) 483,879,976 (56,570,806) (1,419,481)
Net assets
Beginning of period..... 69,220,924 210,825,433 358,370,546 151,806,110 99,852,835 111,172,702
- --------------------------------------------------------------------------------------------------------------------
End of period........... $ 58,693,991 $ 354,925,479 $ 204,165,709 $ 635,686,086 $ 43,282,029 $ 109,753,221
- --------------------------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... $ 146,019 $ (12,989) $ 2,263,614 $ 8,260,101 $ (3,551) $ (3,368)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
57
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements(Unaudited)
1. ORGANIZATION
The Evergreen International and Global Growth Funds consist of Evergreen Emerg-
ing Markets Growth Fund ("Emerging Markets Growth Fund"), Evergreen Global
Leaders Fund ("Global Leaders Fund"), Evergreen Global Opportunities Fund
("Global Opportunities Fund"), Evergreen International Growth Fund ("Interna-
tional Growth Fund"), Evergreen Latin America Fund ("Latin America Fund") and
Evergreen Precious Metals Fund ("Precious Metals Fund"), (collectively, the
"Funds"). Each Fund is a diversified series of Evergreen International Trust
(the "Trust"), a Delaware business trust organized on September 18, 1997. The
Trust is an open-end management investment company registered under the Invest-
ment Company Act of 1940, as amended (the "1940 Act").
The Funds offer Class A, Class B, Class C, and/or Class Y shares. Class A
shares are sold with a maximum front-end sales charge of 4.75%. Class B and
Class C shares are sold without a front-end sales charge, but pay a higher on-
going distribution fee than Class A. Class B shares are sold subject to a con-
tingent deferred sales charge that is payable upon redemption and decreases de-
pending on how long the shares have been held. Class B shares purchased after
January 1, 1997 will automatically convert to Class A shares after seven years.
Class B shares purchased prior to January 1, 1997 retain their existing conver-
sion rights. Class C shares are sold subject to a contingent deferred sales
charge payable on shares redeemed within one year after the month of purchase.
Class Y shares are sold at net asset value and are not subject to contingent
deferred sales charges or distribution fees. Class Y shares are sold only to
investment advisory clients of First Union Corporation ("First Union") and its
affiliates, certain institutional investors or Class Y shareholders of record
of certain other funds managed by First Union and its affiliates as of December
30, 1994.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
A. Valuation of Securities
The Funds value securities traded on an established securities exchange or in-
cluded on the Nasdaq National Market System ("NMS") at the last reported sales
price on the exchange where primarily traded. The Funds value securities traded
on an exchange or NMS for which there has been no sale and other securities
traded in the over-the-counter market at the mean between the last reported bid
and asked price. Securities for which valuations are not available from an in-
dependent pricing service, including restricted securities, are valued at fair
value as determined in good faith according to procedures established by the
Board of Trustees. Short-term investments with remaining maturities of 60 days
or less are carried at amortized cost, which approximates market value.
B. Repurchase Agreements
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held in a segregated account by the custodian on
the Fund's behalf. Collateral for certain tri-party repurchase agreements is
held at the counterparty's custodian in a segregated account for the benefit of
the Fund and the counterparty. Each Fund monitors the adequacy of the collat-
eral daily and will require the seller to provide additional collateral in the
event the market value of the securities pledged falls below the carrying value
of the repurchase agreement, including accrued interest. Each Fund will only
enter into repurchase agreements with banks and other financial institutions,
which are deemed by the investment advisor to be creditworthy pursuant to
guidelines established by the Board of Trustees.
Pursuant to an exemptive order issued by the Securities and Exchange Commission
certain funds managed by Evergreen Investment Management Company ("EIMC"), a
subsidiary of First Union, may transfer uninvested cash balances into a joint
trading account. These balances are invested in one or more repurchase agree-
ments that are fully collateralized by U.S. Treasury and/or federal agency ob-
ligations.
58
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
C. Foreign Currency
The books and records of the Funds are maintained in United States (U.S.) dol-
lars. Foreign currency amounts are translated into U.S. dollars as follows:
market value of investment securities, other assets and liabilities at the
daily rate of exchange; purchases and sales of investment securities and income
and expenses at the rate of exchange prevailing on the respective dates of such
transactions. Net unrealized foreign exchange gains or losses resulting from
changes in foreign currency exchange rates are a component of net unrealized
gains or losses on securities and foreign currency related transactions. Net
realized foreign currency gains or losses on foreign currency related transac-
tions include foreign currency gains and losses between trade date and settle-
ment date on investment securities transactions, foreign currency related
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Funds and the amounts actually received. The por-
tion of foreign currency gains or losses related to fluctuations in exchange
rates between the initial purchase trade date and subsequent sale trade date is
included in realized gains or losses on securities.
D. Futures Contracts
In order to gain exposure to or protect against changes in security values, the
Funds may buy and sell futures contracts.
The initial margin deposited with a broker when entering into a futures trans-
action is subsequently adjusted by daily payments or receipts ("variation mar-
gin") as the value of the contract changes. Such changes are recorded as
unrealized gains or losses. Realized gains or losses are recognized on closing
the contract.
Risks of entering into futures contracts include (i) the possibility of an il-
liquid market for the contract, (ii) the possibility that a change in the value
of the contract may not correlate with changes in the value of the underlying
instrument or index, and (iii) the credit risk that the other party will not
fulfill their obligations under the contract. Futures contracts also involve
elements of market risk in excess of the amount reflected in the Statements of
Assets and Liabilities.
E. Forward Foreign Currency Exchange Contracts
The Funds may enter into forward foreign currency exchange contracts ("forward
contracts") to settle portfolio purchases and sales of investment securities
denominated in a foreign currency and to hedge certain foreign currency assets
or liabilities. Forward contracts are recorded at the forward rate and marked-
to-market daily. Realized gains and losses arising from such transactions are
included in net realized gains or losses on foreign currency related transac-
tions. The Funds bear the risk of an unfavorable change in the foreign currency
exchange rate underlying the forward contract and is subject to the credit risk
that the other party will not fulfill their obligations under the contract.
Forward contracts involve elements of market risk in excess of the amount re-
flected in the Statements of Assets and Liabilities.
F. Securities Lending
In order to generate income and to offset expenses, the Funds may lend portfo-
lio securities to brokers, dealers and other financial organizations. The
Funds' investment advisor will monitor the creditworthiness of such borrowers.
Loans of securities may not exceed 33 1/3% of a Fund's total assets and will be
collateralized by cash, letters of credit or U.S. Government securities that
are maintained at all times in an amount equal to at least 100% of the current
market value of the loaned securities, including accrued interest. The Fund
monitors the adequacy of the collateral daily and will require the borrower to
provide additional collateral in the event the value of the collateral falls
below 100% of the market value of the securities on loan. While such securities
are on loan, the borrower will pay a Fund any income accruing thereon, and the
Fund may invest any cash collateral received in portfolio securities, thereby
increasing its return. A Fund will have the right to call any such loan and ob-
tain the securities loaned at any time on five days' notice. Any gain or loss
in the market price of the loaned securities, which occurs during the term of
the loan, would affect a Fund and its investors. A Fund may pay fees in connec-
tion with such loans.
59
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
G. Security Transactions and Investment Income
Securities transactions are accounted for no later than one business day after
the trade date. Realized gains and losses are computed on the identified cost
basis. Interest income is recorded on the accrual basis and includes accretion
of discounts and amortization of premiums. Dividend income is recorded on the
ex-dividend date or in the case of some foreign securities, on the date there-
after when the Fund is made aware of the dividend. Foreign income may be sub-
ject to foreign withholding taxes, which are accrued as applicable. Capital
gains realized on some foreign securities are subject to foreign taxes, which
are accrued as applicable.
H. Federal Taxes
The Funds have qualified and intend to continue to qualify as regulated invest-
ment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable in-
come and net capital gains, if any, to their shareholders. The Funds also in-
tend to avoid any excise tax liability by making the required distributions un-
der the Code. Accordingly, no provision for federal taxes is required. To the
extent that realized capital gains can be offset by capital loss carryforwards,
it is each Fund's policy not to distribute such gains.
I. Distributions
Distributions from net investment income and net realized capital gains for the
Funds, if any, are declared and paid at least annually. Distributions to share-
holders are recorded at the close of business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles. Certain distributions paid during previous years have been
reclassified to conform to current year presentation.
J. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.
K. Organization Expenses
Organization expenses are amortized to operations over a five-year period on a
straight-line basis. In the event any of the initial shares of the Funds are
redeemed by any holder during the five-year amortization period, redemption
proceeds will be reduced by any unamortized organization expenses in the same
proportion as the number of initial shares being redeemed bears to the number
of initial shares outstanding at the time of the redemption.
3. ACQUISITION INFORMATION
Effective on the close of business on February 27, 1998, Global Leaders Fund
acquired substantially all the assets and assumed certain liabilities of
Blanchard Global Growth Fund, an open-end management investment company regis-
tered under the 1940 Act, in an exchange of shares. The net assets were ex-
changed through a tax-free exchange for 3,648,723 Class A shares of Global
Leaders Fund. The acquired net assets consisted primarily of portfolio securi-
ties with unrealized appreciation of $2,310,198. The aggregate net assets of
Blanchard Global Growth Fund and Global Leaders Fund immediately prior to the
acquisition were $55,765,847 and $244,596,473, respectively. The aggregate net
assets of Global Leaders Fund immediately after the acquisition were
$300,362,320.
Effective on the close of business on February 27, 1998, Precious Metals Fund
acquired substantially all the assets and assumed certain liabilities of
Blanchard Precious Metals Fund, an open-end management investment company reg-
istered under the 1940 Act, in an exchange of shares. The net assets were ex-
changed through a tax-free exchange for 2,927,140 Class A shares of Precious
Metals Fund. The acquired net assets consisted primarily of portfolio securi-
ties with unrealized depreciation of $38,301,971. The aggregate net assets of
60
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
Blanchard Precious Metals Fund and Precious Metals Fund immediately prior to
the acquisition were $39,424,759 and $104,683,444, respectively. The aggregate
net assets of Precious Metals Fund immediately after the acquisition were
$144,108,204.
Effective on the close of business on July 27, 1998, International Growth Fund
acquired substantially all the assets and assumed certain liabilities of
CoreFund Inc. International Growth Fund, an open-end management investment com-
pany registered under the 1940 Act, in an exchange of shares. The net assets
were exchanged through a tax-free exchange for 303,491 Class A Shares, 7,427
Class B Shares, and 20,732,817 of Class Y shares of International Growth Fund.
The acquired net assets consisted primarily of portfolio securities with
unrealized appreciation of $38,264,074. The aggregate net assets of CoreFund
Inc. International Growth Fund and International Growth Fund immediately prior
to the acquisition were $182,359,660 and $241,341,003, respectively. The aggre-
gate net assets of International Growth Fund immediately after the acquisition
were $423,700,663.
Effective on the close of business on October 28, 1998, International Growth
Fund acquired substantially all the assets and assumed certain liabilities of
Evergreen International Equity Fund, an open-end management investment company
registered under the 1940 Act, in an exchange of shares. The net assets were
exchanged through a tax-free exchange for 2,164,961 Class A Shares, 2,500,823
Class B Shares, 102,170 Class C Shares and 25,539,992 of Class Y Shares of In-
ternational Growth Fund. The acquired net assets consisted primarily of portfo-
lio securities with unrealized depreciation of $11,505,330. The aggregate net
assets of Evergreen International Equity Fund and International Growth Fund im-
mediately prior to the acquisition were $222,394,077 and $396,945,119, respec-
tively. The aggregate net assets of International Growth Fund immediately after
the acquisition were $619,339,196.
4. INVESTMENT IN FOREIGN SUBSIDIARY
Precious Metals (Bermuda) Ltd., Precious Metal Fund's wholly-owned, unconsoli-
dated foreign subsidiary, was acquired in May 1975 and has as its primary ob-
jective the acquisition of precious metals. The Fund accounts for its invest-
ments in the subsidiary under the equity method of accounting. At April 30,
1999, the fair value of the Fund's investment in the foreign subsidiary was de-
termined as follows:
<TABLE>
<S> <C>
Cash and cash equivalents............................... $876,074
Accrued expenses........................................ 25,774
--------
$850,300
========
</TABLE>
During the six months ended April 30, 1999, the foreign subsidiary had no pur-
chases of precious metals or sales of precious metals. Investment activities of
the foreign subsidiary resulted in gross investment income, general and admin-
istrative expenses, net investment income of $19,457, $13,681 and $5,776, re-
spectively. Management fees paid or accrued to EIMC totaled $2,923 during the
six months ended April 30, 1999.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB") is the investment advisor for Emerging Mar-
kets Growth Fund. Pursuant to an agreement with the Fund, FUNB is entitled to
an annual fee based on Emerging Markets Growth Fund's average daily net assets,
in accordance with the following schedule:
<TABLE>
<CAPTION>
Average Daily Net Assets
--------------------------------------------------------------
<S> <C>
on the first $100 million.................................. 1.50%
on the next $100 million................................... 1.45
on the next $100 million................................... 1.40
in excess of $300 million.................................. 1.35
</TABLE>
EIMC serves as the investment sub-advisor to Emerging Markets Growth Fund. Un-
der the terms of the sub-advisory agreement, EIMC is responsible for the in-
vestment decisions for the Fund and is paid by FUNB at no additional expense to
the Fund.
61
<PAGE>
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Combined Notes to Financial Statements (Unaudited) (continued)
Evergreen Asset Management Corp. ("EAMC"), a wholly-owned subsidiary of First
Union, serves as investment advisor for Global Leaders Fund and is paid an ad-
visory fee that is computed daily and paid monthly at a annual rate of 0.95% of
the Fund's average daily net assets.
Lieber & Company, an affiliate of First Union, provides investment sub-advisory
services to Global Leaders Fund. Expenses associated with these services are a
cost of EAMC and are not a Fund expense.
Lieber & Company also provides brokerage services with respect to substantially
all security transactions of the Global Leaders Fund effected on the New York
or American Stock Exchanges. During the six months ended April 30, 1999, Global
Leaders Fund incurred brokerage commissions of $113,447 with Lieber & Company.
EIMC serves as the investment advisor for Global Opportunities Fund, Interna-
tional Growth Fund, Latin America Fund and Precious Metals Fund. In return for
providing investment management and administrative services to the Funds, the
Funds pay EIMC an advisory fee that is calculated daily and paid monthly based
on each of the Funds' average daily net assets according to the following
schedules:
<TABLE>
<CAPTION>
Global Latin
Opportunities International America
Average Daily Net Assets Fund Growth Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C>
on the first $200 million.. 1.00% 0.75% 0.75%
on the next $200 million... 0.95 0.65 0.65
on the next $200 million... 0.85 0.55 0.55
in excess of $600 million.. 0.75 0.45 0.45
</TABLE>
<TABLE>
<CAPTION>
Precious
Metals
Average Daily Net Assets Fund
--------------------------------------------------------------
<S> <C>
on the first $100 million............................... 0.750%
on the next $100 million................................ 0.625
in excess of $200 million............................... 0.500
</TABLE>
For Precious Metals Fund, Harbor Capital Management Company, Inc. ("Harbor Cap-
ital"), serves as a consultant to EIMC and its subsidiary pursuant to a Consul-
tant Agreement. In accordance with the terms of the Consultant Agreement, Har-
bor Capital provides EIMC with monthly reports discussing the world's gold bul-
lion markets, and gold stock markets, and advice regarding economic factors and
trends in the precious metals sectors. For its services, Harbor Capital re-
ceives from EIMC a fee at the annual rate of 0.10% of the Fund's average daily
net assets. Expenses associated with these services are a cost of EIMC and are
not a Fund expense.
Evergreen Investment Services ("EIS"), a subsidiary of First Union, serves as
the administrator and The BISYS Group, Inc. ("BISYS") serves as the sub-admin-
istrator to the Funds. As administrator, EIS provides the Funds with facili-
ties, equipment and personnel. As sub-administrator to the Funds, BISYS pro-
vides the officers of the Funds. Officers of the Funds and affiliated Trustees
receive no compensation directly from the Funds.
The administrator and sub-administrator for Emerging Markets Growth Fund and
Global Leaders Fund are entitled to an annual fee based on the average daily
net assets of the funds administered by EIS for which First Union or its in-
vestment advisory subsidiaries are also the investment advisors. The adminis-
tration fee is calculated by applying percentage rates, which start at 0.05%
and decline to 0.01% per annum as net assets increase, to the average daily net
assets of the Fund. The sub-administration fee is calculated by applying per-
centage rates, which start at 0.01% and decline to 0.004% per annum as net as-
sets increase, to the average daily net assets of the Fund.
62
<PAGE>
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Combined Notes to Financial Statements (Unaudited) (continued)
During the six months ended April 30, 1999, Emerging Markets Growth Fund and
Global Leaders Fund paid or accrued the following amounts for administrative
and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
Fee Fee
-------------- ------------------
<S> <C> <C>
Emerging Markets Growth Fund.. $ 5,488 $1,728
Global Leaders Fund........... 37,436 9,564
</TABLE>
During the six months ended April 30, 1999, Global Opportunities Fund, Interna-
tional Growth Fund, Latin America Fund and Precious Metals Fund reimbursed EIMC
for certain administrative and accounting expenses amounting to $17,390,
$58,349, $3,517 and $8,085.
Evergreen Service Company ("ESC"), an indirect, wholly owned subsidiary of
First Union, serves as the transfer and dividend disbursing agent for the
Funds.
6. DISTRIBUTION PLANS
Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of BISYS, serves
as principal underwriter to the Funds.
Each Fund has adopted Distribution Plans, as allowed by Rule 12b-1 of the 1940
Act, for each class of shares, except Class Y. Distribution plans permit a Fund
to compensate its principal underwriter for costs related to selling shares of
the Fund and for various other services. These costs, which consist primarily
of commissions and service fees to broker-dealers who sell shares of the Fund,
are paid by the Fund through "Distribution Plan expenses". Each class, except
Class Y, currently pays a service fee equal to 0.25% of the average daily net
asset of the class. Class B and Class C also pay distribution fees equal to
0.75% of the average daily net assets of the class. Distribution Plan expenses
are calculated daily and paid at least quarterly.
During the six months ended April 30, 1999, amounts paid or accrued to EDI pur-
suant to each Fund's Class A, Class B and Class C Distribution Plans were as
follows:
<TABLE>
<CAPTION>
Class A Class B Class C
--------------------------
<S> <C> <C> <C>
Emerging Markets Growth Fund........ $ 9,021 $ 14,320 $ 3,641
Global Leaders Fund................. 170,070 909,688 22,019
Global Opportunities Fund........... 70,248 577,816 106,986
International Growth Fund........... 162,607 357,986 16,591
Latin America Fund.................. 7,782 128,275 18,843
Precious Metals Fund................ 96,214 101,305 3,662
</TABLE>
With respect to Class B and Class C shares, the principal underwriter may pay
distribution fees greater than the allowable annual amounts each Fund is per-
mitted to pay under the Distribution Plans.
Each of the Distribution Plans may be terminated at any time by vote of the In-
dependent Trustees or by vote of a majority of the outstanding voting shares of
the respective class.
63
<PAGE>
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Combined Notes to Financial Statements (Unaudited) (continued)
7. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class A, Class B, Class C and/or Class Y. Transactions in shares
of the Funds were as follows:
Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,981,037 $ 15,223,046 1,539,603 $ 14,993,843
Shares redeemed........... (1,779,961) (13,705,903) (1,041,101) (10,071,395)
Shares issued on
reinvestment of
distributions............ 1,318 10,188 8,077 78,672
- ------------------------------------------------------------------------------
Net increase.............. 202,394 1,527,331 506,579 5,001,120
- ------------------------------------------------------------------------------
Class B
Shares sold............... 114,276 874,895 150,671 1,447,684
Shares redeemed........... (141,160) (1,091,156) (182,867) (1,703,438)
Shares issued on
reinvestment of
distributions............ 525 3,951 10,499 100,681
- ------------------------------------------------------------------------------
Net decrease.............. (26,359) (212,310) (21,697) (155,073)
- ------------------------------------------------------------------------------
Class C
Shares sold............... 337,766 2,520,188 65,455 599,325
Shares redeemed........... (318,129) (2,387,602) (124,024) (1,217,706)
Shares issued on
reinvestment of
distributions............ 128 965 3,451 33,092
- ------------------------------------------------------------------------------
Net increase (decrease)... 19,765 133,551 (55,118) (585,289)
- ------------------------------------------------------------------------------
Class Y
Shares sold............... 255,064 2,020,874 1,333,842 12,710,847
Shares redeemed........... (876,519) (6,836,490) (1,382,744) (12,835,771)
Shares issued on
reinvestment of
distributions............ 12,822 99,883 108,476 1,060,894
- ------------------------------------------------------------------------------
Net increase (decrease)... (608,633) (4,715,733) 59,574 935,970
- ------------------------------------------------------------------------------
Net increase (decrease)... $ (3,267,161) $ 5,196,728
- ------------------------------------------------------------------------------
</TABLE>
Global Leaders Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998
---------------------------- --------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 69,212,048 $ 1,132,639,746 30,930,256 $ 447,933,681
Automatic conversion of
Class B shares to Class
A shares............... 29,476 486,433 0 0
Shares redeemed......... (71,295,469) (1,168,930,907) (27,875,118) (405,306,465)
Shares issued on
reinvestment of
distributions.......... 0 0 11,768 163,222
Shares issued in
acquisition of
Blanchard Global Growth
Fund................... 0 0 3,648,723 55,765,847
- -----------------------------------------------------------------------------------
Net increase
(decrease)............. (2,053,945) (35,804,728) 6,715,629 98,556,285
- -----------------------------------------------------------------------------------
Class B
Shares sold............. 1,956,974 31,379,867 3,186,919 47,469,163
Automatic conversion of
Class B shares to Class
A shares............... (30,042) (486,433) 0 0
Shares redeemed......... (1,766,496) (28,541,057) (1,832,008) (26,758,571)
Shares issued on
reinvestment of
distributions.......... 0 0 41,954 575,190
- -----------------------------------------------------------------------------------
Net increase............ 160,436 2,352,377 1,396,865 21,285,782
- -----------------------------------------------------------------------------------
Class C
Shares sold............. 188,023 3,030,362 181,393 2,719,744
Shares redeemed......... (181,113) (2,947,988) (94,685) (1,374,676)
Shares issued on
reinvestment of
distributions.......... 0 0 721 9,873
- -----------------------------------------------------------------------------------
Net increase............ 6,910 82,374 87,429 1,354,941
- -----------------------------------------------------------------------------------
Class Y
Shares sold............. 926,638 15,248,358 1,226,789 18,343,144
Shares redeemed......... (1,094,876) (18,058,162) (1,034,996) (15,251,611)
Shares issued on
reinvestment of
distributions.......... 0 0 4,034 56,109
- -----------------------------------------------------------------------------------
Net increase
(decrease)............. (168,238) (2,809,804) 195,827 3,147,642
- -----------------------------------------------------------------------------------
Net increase
(decrease)............. $ (36,179,781) $ 124,344,650
- -----------------------------------------------------------------------------------
</TABLE>
64
<PAGE>
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- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
Global Opportunities Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998
------------------------ -------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold.............. 2,679,394 $ 54,648,559 4,344,269 $ 98,654,176
Shares redeemed.......... (3,450,885) (70,524,921) (5,674,012) (128,741,779)
Shares issued on
reinvestment of
distributions........... 122,670 2,341,767 224,106 4,890,006
- -------------------------------------------------------------------------------
Net decrease............. (648,821) (13,534,595) (1,105,637) (25,197,597)
- -------------------------------------------------------------------------------
Class B
Shares sold.............. 779,615 14,971,651 310,625 6,886,751
Shares redeemed.......... (2,654,234) (50,864,016) (3,830,040) (82,094,577)
Shares issued on
reinvestment of
distributions........... 395,618 7,188,374 620,042 13,008,494
- -------------------------------------------------------------------------------
Net decrease............. (1,479,001) (28,703,991) (2,899,373) (62,199,332)
- -------------------------------------------------------------------------------
Class C
Shares sold.............. 102,968 2,006,342 102,028 2,319,959
Shares redeemed.......... (492,714) (9,474,365) (908,274) (19,515,716)
Shares issued on
reinvestment of
distributions........... 74,800 1,362,112 126,413 2,657,194
- -------------------------------------------------------------------------------
Net decrease............. (314,946) (6,105,911) (679,833) (14,538,563)
- -------------------------------------------------------------------------------
Class Y
Shares sold.............. 307,250 6,080,382 301,547 6,065,232
Shares redeemed.......... (307,251) (6,119,186) (299,939) (6,075,384)
Shares issued on
reinvestment of
distributions........... 101 1,957 0 0
- -------------------------------------------------------------------------------
Net increase (decrease).. 100 (36,847) 1,608 (10,152)
- -------------------------------------------------------------------------------
Net decrease............. $(48,381,344) $(101,945,644)
- -------------------------------------------------------------------------------
</TABLE>
International Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998 (a)
-------------------------- -------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 11,125,444 $ 86,813,230 12,077,791 $ 92,358,078
Automatic conversion of
Class B shares to Class
A shares............... 1,347,930 10,713,110 13,877,478 95,438,329
Shares redeemed......... (13,811,295) (108,041,642) (11,196,609) (85,043,609)
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 0 0 2,164,961 15,927,622
Shares issued in
acquisition of CoreFund
Inc. International
Growth Fund............ 0 0 303,491 2,627,478
- --------------------------------------------------------------------------------
Net increase
(decrease)............. (1,337,921) (10,515,302) 17,227,112 121,307,898
- --------------------------------------------------------------------------------
Class B
Shares sold............. 1,386,423 10,722,142 6,504,930 50,772,491
Automatic conversion of
Class B shares to Class
A shares............... (1,357,201) (10,713,110) (13,877,478) (95,438,329)
Shares redeemed......... (1,900,127) (14,775,874) (6,669,302) (50,597,968)
Shares issued on
reinvestment of
distributions.......... 0 0 4,141,410 28,410,070
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 0 0 2,500,823 18,307,019
Shares issued in
acquisition of CoreFund
Inc. International
Growth Fund............ 0 0 7,427 64,064
- --------------------------------------------------------------------------------
Net decrease............ (1,870,905) (14,766,842) (7,392,190) (48,482,653)
- --------------------------------------------------------------------------------
Class C
Shares sold............. 1,149,061 8,915,700 946,471 7,475,561
Shares redeemed......... (1,263,951) (9,827,208) (594,348) (4,518,373)
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 0 0 102,170 747,667
- --------------------------------------------------------------------------------
Net increase
(decrease)............. (114,890) (911,508) 454,293 3,704,855
- --------------------------------------------------------------------------------
Class Y
Shares sold............. 7,692,740 60,223,042 14,864,337 121,402,695
Shares redeemed......... (6,518,518) (50,635,618) (3,664,709) (27,667,505)
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 0 0 25,539,992 187,411,771
Shares issued in
acquisition of CoreFund
Inc. International
Growth Fund............ 0 0 20,732,817 179,668,118
- --------------------------------------------------------------------------------
Net increase............ 1,174,222 9,587,424 57,472,437 460,815,079
- --------------------------------------------------------------------------------
Net increase
(decrease)............. $ (16,606,228) $537,345,179
- --------------------------------------------------------------------------------
</TABLE>
(a) For Class A, Class C and Class Y, for the period from January 20, 1998,
March 6, 1998 and March 9, 1998, respectively (commencement of class opera-
tions) to October 31, 1998.
65
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
Latin America Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,450,314 $ 10,216,761 1,613,531 $ 15,352,461
Shares redeemed........... (1,139,289) (7,779,775) (2,045,506) (19,559,738)
Shares issued on
reinvestment of
distributions............ 0 0 253,396 2,718,936
- ------------------------------------------------------------------------------
Net increase (decrease)... 311,025 2,436,986 (178,579) (1,488,341)
- ------------------------------------------------------------------------------
Class B
Shares sold............... 901,645 6,348,142 1,117,118 10,223,995
Shares redeemed........... (2,101,941) (14,452,052) (3,992,062) (38,151,546)
Shares issued on
reinvestment of
distributions............ 0 0 1,410,947 14,772,617
- ------------------------------------------------------------------------------
Net decrease.............. (1,200,296) (8,103,910) (1,463,997) (13,154,934)
- ------------------------------------------------------------------------------
Class C
Shares sold............... 256,528 1,870,480 129,986 1,190,136
Shares redeemed........... (407,829) (2,933,940) (537,453) (5,288,412)
Shares issued on
reinvestment of
distributions............ 0 0 203,815 2,133,947
- ------------------------------------------------------------------------------
Net decrease.............. (151,301) (1,063,460) (203,652) (1,964,329)
- ------------------------------------------------------------------------------
Class Y
Shares sold............... 41,613 334,039 3,714 39,405
Shares redeemed........... (14,872) (124,589) 0 0
- ------------------------------------------------------------------------------
Net increase.............. 26,741 209,450 3,714 39,405
- ------------------------------------------------------------------------------
Net decrease.............. $ (6,520,934) $(16,568,199)
- ------------------------------------------------------------------------------
</TABLE>
Precious Metals Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998 (b)
------------------------ -------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold.............. 2,573,496 $ 29,285,780 8,349,123 $ 105,589,468
Automatic conversion of
Class B shares to Class
A shares................ 451,153 5,261,155 5,262,793 65,498,249
Shares redeemed.......... (3,694,511) (41,784,496) (9,374,304) (120,653,639)
Shares issued in
acquisition of Blanchard
Precious Metals Fund.... 0 0 2,927,140 39,424,759
- -------------------------------------------------------------------------------
Net increase (decrease).. (669,862) (7,237,561) 7,164,752 89,858,837
- -------------------------------------------------------------------------------
Class B
Shares sold.............. 1,250,855 13,977,815 5,743,525 72,210,449
Automatic conversion of
Class B shares to Class
A shares................ (454,370) (5,261,155) (5,262,793) (65,498,249)
Shares redeemed.......... (1,567,642) (17,603,458) (5,616,171) (71,713,756)
Shares issued on
reinvestment of
distributions........... 0 0 357,072 4,759,767
- -------------------------------------------------------------------------------
Net decrease............. (771,157) (8,886,798) (4,778,367) (60,241,789)
- -------------------------------------------------------------------------------
Class C
Shares sold.............. 889,664 9,807,623 146,046 1,761,107
Shares redeemed.......... (902,277) (10,081,868) (97,906) (1,087,497)
- -------------------------------------------------------------------------------
Net increase (decrease).. (12,613) (274,245) 48,140 673,610
- -------------------------------------------------------------------------------
Net increase (decrease).. $(16,398,604) $ 30,290,658
- -------------------------------------------------------------------------------
</TABLE>
(b) For Class A and Class C, for the period from January 20, 1998 and January
29, 1998, respectively (commencement of class operations) to October 31,
1998.
8. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the six months ended April 30, 1999:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
----------------- -------------------
<S> <C> <C>
Emerging Markets Growth
Fund..................... $102,812,284 $ 83,326,324
Global Leaders Fund....... 138,287,798 137,415,347
Global Opportunities
Fund..................... 117,177,713 158,282,451
International Growth
Fund..................... 752,587,874 713,631,031
Latin America Fund........ 68,172,979 56,612,085
Precious Metals Fund...... 12,353,503 25,526,598
</TABLE>
66
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
During the six months ended April 30, 1999, Global Opportunities Fund loaned
securities to certain brokers who paid the Funds a negotiated lenders' fee.
These fees are included in interest income. At April 30, 1999, the value of the
securities on loan was $12,806,840 and the value of collateral was $12,972,173.
9. EXPENSE OFFSET ARRANGEMENTS
The Funds have entered into an expense offset arrangement with the ESC and
their custodian whereby credits realized as a result of uninvested cash bal-
ances were used to reduce a portion of each Fund's related expenses. The assets
deposited with ESC and the custodian under these expense offset arrangement
could have been invested in income-producing assets. The amount of fee credits
received by each Fund and the impact on each Fund's expense ratio represented
as a percentage of its average daily net assets were as follows:
<TABLE>
<CAPTION>
Total Fee % of Average
Credits Received Daily Net Assets
---------------------------------
<S> <C> <C>
Emerging Markets Growth Fund.. $ 6,552 0.01%
Global Leaders Fund........... 15,994 0.01
Global Opportunities Fund..... 9,025 0.01
International Growth Fund..... 18,183 0.01
Latin America Fund............ 2,610 0.01
Precious Metals Fund.......... 3,164 0.01
</TABLE>
10. DEFERRED TRUSTEES' FEES
Each Independent Trustee of each Fund may defer any or all compensation related
to performance of their duties as Trustees. The Trustees' deferred balances are
allocated to deferral accounts, which are included in the accrued expenses for
the Fund. The investment performance of the deferral accounts are based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Fund's Trustees' fees and
expenses. Trustees will be paid either in one lump sum or in quarterly install-
ments for up to ten years at their election, not earlier than either the year
in which the Trustee ceases to be a member of the Board of Trustees or January
1, 2000.
11. FINANCING AGREEMENTS
Certain Evergreen Funds and State Street Bank and Trust Company ("State
Street") and a group of banks (collectively, the "Banks") entered into a fi-
nancing agreement dated December 22, 1997, as amended on November 20, 1998. Un-
der this agreement, the Banks provided an unsecured credit facility in the ag-
gregate amount of $400 million ($275 million committed and $125 million uncom-
mitted). The credit facility was allocated, under the terms of the financing
agreement, among the Banks. The credit facility was accessed by the Funds for
temporary or emergency purposes only and was subject to each Fund's borrowing
restrictions. Borrowings under this facility bear interest at 0.50% per annum
above the Federal Funds rate. A commitment fee of 0.065% per annum will be in-
curred on the unused portion of the committed facility, which was allocated to
all funds. For its assistance in arranging this financing agreement, the Capi-
tal Market Group of First Union was paid a one-time arrangement fee of $27,500.
State Street serves as administrative agent for the Banks, and as administra-
tive agent is entitled to a fee of $20,000 per annum which is allocated to all
of the Funds.
This agreement was amended and renewed on December 22, 1998. The amended fi-
nancing agreement became effective on December 22, 1998 among all of the Ever-
green Funds, State Street and The Bank of New York ("BONY"). Under this agree-
ment, State Street and BONY provide an unsecured credit facility in the aggre-
gate amount of $150 million ($125 million committed and $25 million uncommit-
ted). The remaining terms and conditions of the agreement are unaffected.
67
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
Below is a summary of the borrowing activity for each Fund that utilized the
line of credit during the six months ended April 30, 1999:
<TABLE>
<CAPTION>
Interest
Expense as
a % of Number of Average Weighted Maximum
Average Days the Daily Average Daily
Interest Daily Net LOC was Balance Interest Balance
Expense Assets used Outstanding Rate Outstanding
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Leaders Fund..... $160,001 0.09% 83 $11,610,363 5.48% $28,338,000
Global Opportunities
Fund................... 12,526 0.01 34 2,377,675 5.66 4,600,000
Precious Metals Fund.... 23,683 0.05 47 2,287,531 5.43 4,859,000
</TABLE>
During the six months ended April 30, 1999, the Emerging Markets Growth Fund,
International Growth Fund and Latin America Fund had borrowings under these
agreements which had an effect of less than 0.01% of the average daily net as-
sets of the respective Fund. At April 30, 1999 the Global Leaders Fund had
borrowings pursuant to this line of credit of $28,338,000.
12. CONCENTRATION OF RISK
The Precious Metals Fund invests a substantial portion of its assets in compa-
nies that are engaged in or receive their revenue from other companies that en-
gage in exploration, mining, processing or dealing in gold or other precious
metals and minerals. Therefore, the Fund may be more affected by the price of
gold and the precious metals and minerals markets than would be a comparable
general equity fund.
13. YEAR 2000
Like other investment companies, the Funds could be adversely affected if the
computer systems used by the Funds' investment advisors and the Funds' other
service providers are not able to perform their intended functions effectively
after 1999 because of the inability of computer software to distinguish the
year 2000 from the year 1900. The Funds' investment advisors are taking steps
to address this potential year 2000 problem with respect to the computer sys-
tems that they use and to obtain satisfactory assurances that comparable steps
are being taken by the Funds' other major service providers. At this time, how-
ever, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the Funds from this problem.
68
<PAGE>
Evergreen Funds
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Tax Advantaged
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Maryland Municipal Bond Fund
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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
Equity Income Fund
Value Fund
Blue Chip Fund
Growth and Income Fund
Small Cap Value Fund
Domestic Growth
Tax Strategic Equity Fund
Strategic Growth Fund
Stock Selector Fund
Evergreen Fund
Masters Fund
Omega Fund
Small Company Growth Fund
Aggressive Growth Fund
Micro Cap Fund
Global International
Global Leaders Fund
International Growth Fund
Global Opportunities Fund
Precious Metals Fund
Emerging Markets Growth Fund
Latin America Fund
Express Line
800.346.3858
Investor Services
800.343.2898
www.evergreen-funds.com
64258 549427 06/99
--------------
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