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Semiannual Report
as of April 30, 2000
EVERGREEN INTERNATIONAL AND GLOBAL GROWTH FUNDS
[LOGO OF EVERGREEN FUNDS] [LOGO OF SERVICE AWARD]
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Table of Contents
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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 ........................................... 11
Portfolio Manager Interview ................................ 12
Evergreen International Growth Fund
Fund at a Glance ........................................... 16
Portfolio Manager Interview ................................ 17
Evergreen Latin America Fund
Fund at a Glance ........................................... 20
Portfolio Manager Interview ................................ 21
Evergreen Perpetual Global Fund
Fund at a Glance ........................................... 24
Portfolio Manager Interview ................................ 25
Evergreen Perpetual International Fund
Fund at a Glance ........................................... 28
Portfolio Manager Interview ................................ 29
Evergreen Precious Metals Fund
Fund at a Glance ........................................... 32
Portfolio Manager Interview ................................ 33
Financial Highlights
Evergreen Emerging Markets Growth Fund... .................. 36
Evergreen Global Leaders Fund .............................. 38
Evergreen Global Opportunities Fund ........................ 40
Evergreen International Growth Fund ........................ 42
Evergreen Latin America Fund ............................... 44
Evergreen Perpetual Global Fund ............................ 46
Evergreen Perpetual International Fund ..................... 48
Evergreen Precious Metals Fund ............................. 50
Schedule of Investments
Evergreen Emerging Markets Growth Fund... .................. 52
Evergreen Global Leaders Fund .............................. 56
Evergreen Global Opportunities Fund ........................ 59
Evergreen International Growth Fund ........................ 63
Evergreen Latin America Fund ............................... 67
Evergreen Perpetual Global Fund ............................ 70
Evergreen Perpetual International Fund ..................... 76
Evergreen Precious Metals Fund ............................. 82
Statements of Assets and Liabilities ......................... 85
Statements of Operations ..................................... 86
Statements of Changes in Net Assets .......................... 88
Combined Notes to Financial Statements ....................... 93
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Evergreen Funds
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Evergreen Funds is one of the nation's fastest growing investment companies with
over $80 billion in assets under management.
With over 80 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 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: NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED
Evergreen Distributor,Inc.
Evergreen FundsSM is a Service Mark of Evergreen Investment Services,Inc.
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Letter to Shareholders
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June 2000
[PHOTO]
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, 2000.
International and U.S. Markets Experience Volatility
During the past six months, U.S. and international equity markets experienced
significant ups and downs. In many ways, overseas markets mirrored the activity
of the U.S. as technology, communications and biotechnology stocks reigned
supreme during the first half of the period only to undergo a volatile
environment during the latter half of the period. Moreover, weakness in the
euro, the Japanese yen and the British pound all undercut gains outside of the
U.S. The overvaluation of technology issues prompted investors to seek
investments in market sectors that were more reasonably priced. While these
sectors experienced sharp corrections late in the period, they remain favored
sectors.
Despite the recent volatility and the potential effects of interest rate
increases in the U.S., we believe investors remain generally positive about
domestic and international markets and their long-term potential. At Evergreen,
we believe these economies are still fundamentally strong and remain cautiously
optimistic about continued growth in the markets.
Website Enhancements
Please visit our enhanced website, evergreen-funds.com, for more information
about Evergreen Funds. The site offers an array of helpful information including
an investment education center, interactive calculators to assist your
investment planning and general information about Evergreen Funds.
We believe that sound investing is about taking steps to meet your long-term
financial needs and goals. We remind you to take advantage of your financial
advisor's expertise to develop and refine a financial plan that will enable you
to meet your objectives. Evergreen Funds offers a broad mix of stock, bond and
money market funds that should assist you in choosing the most appropriate for
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, Inc.
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EVERGREEN
Emerging Markets Growth Fund
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Fund at a Glance as of April 30, 2000
"We will continue to concentrate on having a well diversified portfolio of
companies with solid balance sheets and historically growing income. The stocks
of many of these companies have been trading at exceptionally attractive
prices."
Portfolio Management
--------------------
[PHOTO APPEARS HERE] [PHOTO APPEARS HERE]
Liu-Er Chen, CFA Antonio T. Docal, CFA
Tenure: May 1999 Tenure: May 1999
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CURRENT INVESTMENT STYLE 1
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Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and price-
to-book ratio relative to the S&P 500, as well as the size of the companies in
which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
The Fund incurs 12b-1 expenses of 0.25% for Class A and 1.00% for Classes B and
C. Class Y does not pay a 12b-1 fee. Returns reflect expense limits previously
in effect, without which returns would have been lower.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of April 30, 2000 and subject to change.
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PERFORMANCE AND RETURNS 2
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Portfolio Inception Date: 9/6/1994 Class A Class B Class C Class Y
Class Inception Date 9/6/1994 9/6/1994 9/6/1994 9/6/1994
Average Annual Returns *
6 month with sales charge 12.47% 12.65% 15.74% n/a
6 month w/o sales charge 18.03% 17.65% 17.74% 18.28%
1 year with sales charge 19.96% 20.00% 23.38% n/a
1 year w/o sales charge 26.00% 25.00% 25.38% 26.33%
5 years 7.52% 7.42% 7.79% 8.90%
Since Portfolio Inception 1.42% 1.36% 1.56% 2.59%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
*Adjusted for maximum applicable sales charge.
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LONG TERM GROWTH
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[GRAPH]
Class A MSCI EMF MSCI EAFE CPI
9/6/94 9,525 10,000 10,000 10,000
4/30/95 7,171 7,838 10,479 10,167
10/31/95 7,523 7,912 10,328 10,288
4/30/96 8,784 8,965 11,710 10,462
10/31/96 8,104 8,425 11,444 10,596
4/30/97 9,205 9,350 11,640 10,723
10/31/97 9,578 7,710 12,007 10,817
4/30/98 10,569 7,991 13,879 10,877
10/31/98 7,759 5,321 13,202 10,977
4/30/99 8,589 7,177 15,240 11,124
10/31/99 9,171 7,696 16,287 11,258
4/30/00 10,826 8,763 17,400 11,487
Comparison of a $10,000 investment in Evergreen Emerging Markets Growth Fund,
Class A shares2, versus a similar investment in the Morgan Stanley Capital
International Emerging Markets Free Index (MSCI EMF), the Morgan Stanley Capital
International Europe, Australasia, and Far East Index (MSCI EAFE) and the
Consumer Price Index (CPI).
The MSCI EMF and the MSCI EAFE are unmanaged market indices which do not include
transaction costs associated with buying and selling securities or any mutual
fund expenses. 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.
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.
Funds that invest in high yield, lower-rated bonds may contain more risk due to
the increased possibility of default.
2
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EVERGREEN
Emerging Markets Growth Fund
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Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000 the Evergreen Emerging Markets
Fund Class A shares had a total return of 18.03%. During the same six-month
period, the Morgan Stanley Capital International Emerging Markets Free Index
returned 13.87%, while the median return of free emerging markets funds was
18.37%, according to Lipper Inc., an independent monitor of mutual fund
performance. Fund returns are before deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $78,974,084
Number of Holdings 162
What was the investment environment like in emerging markets during the
six-month period?
The six months actually encompassed two different periods in the emerging
markets. The first four months, from November 1999 through February 2000,
brought a continuation of the rally that began earlier in 1999, as emerging
markets recovered from the financial crisis of 1997 and 1998. This market move
was spurred on by acceleration of global economic growth, rising commodity
prices, attractive valuations in emerging markets, political and economic
reforms, and explosive performance in technology, media and telecommunication
industries in equity markets throughout the world.
This sustained rally was interrupted in the final two months of the period, as
fears of high stock valuations of technology companies and the effects of
interest rate increases in the United States caused investors to avoid riskier
assets, including technology stocks and emerging market stocks.
While the stock markets fluctuated, the actual economies of emerging nations
continued to recover.
In Latin America, economic fundamentals were strong, with high growth rates in
gross domestic product, stable to declining interest rates, and rising corporate
profitability. Corporate earnings rates in Latin America are expected to rise by
20% in 2000. In emerging European markets, economic fundamentals also were good,
as the region appeared to be moving towards convergence with Western Europe.
Concerns about Hungary and Poland abated, while aid from the International
Monetary Fund helped Turkey. In Russia, the resignation of President Yeltsin and
the rise of Vladimir Putin as his successor appeared to bring greater stability
and confidence to a volatile situation.
Emerging Asian markets also showed progress. The economies of countries such as
Indonesia and Thailand continued to recover from the economic crisis of the
previous two years, while other countries such as Korea had already advanced to
almost full recovery. Local political factors continued to weigh on Asian
countries, however, with elections in Thailand and Korea adding some uncertainty
to the local outlooks. Political controversy in the Philippines, for example,
contributed to relatively poor market performance.
Investments in South Africa were hurt by political instability in neighboring
Southern African nations.
3
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EVERGREEN
Emerging Markets Growth Fund
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Portfolio Manager Interview
What were your principal strategies during the period?
We kept the Fund well diversified, with country weightings similar to that of
the MSCI Emerging Market Index. Our largest weightings tended to be in the most
developed, most liquid markets, where stocks are most easily traded. Within each
country, we concentrated on fundamental company analysis, picking stocks based
on analysis of the underlying strengths of each company.
Relative to the MSCI Emerging Markets Index, the Fund's largest over-weightings
were in Mexico and Turkey, while under-weighted countries included Russia, South
Africa, Greece, Israel and Chile.
In keeping with our stock selection style, the industry allocations were well
diversified.
Top 5 Sectors
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(as a percentage of 4/30/2000 net assets)
Telecommunication Services 22.3%
Information Technology 18.4%
Financials 17.5%
Consumer Discretionary 9.6%
Materials 8.6%
Top 10 Countries
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(as a percentage of 4/30/2000 net assets)
Mexico 13.0%
Korea 12.4%
Taiwan 11.9%
Brazil 10.2%
India 7.9%
Turkey 7.2%
South Africa 4.7%
Hong Kong 3.6%
Greece 3.4%
Israel 3.3%
What were some of the investments that contributed to performance?
Relative to the benchmark, Turkey was our largest over-weighting, and that
market performed well. Vestel Electronics, a television manufacturer taking
advantages of technological improvements in digital TV and set-top control
boxes, was a particularly strong performer. Vestel, which sells most of its
products in Western Europe, is developing new products utilizing advances in the
internet.
The Fund's second largest position in Korea, Samsung Electronics, also performed
very well. Samsung has grown to become a leading force in the global electronics
industry, and is a market leader in the manufacture of DRAM memory chips,
wireless telephone systems, and thin-film transistors.
4
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EVERGREEN
Emerging Markets Growth Fund
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Portfolio Manager Interview
In Latin America, one of the leading investments was in Embraer, the Brazilian
manufacturer of jet aircraft for the airline industry. Embraer has grown to be
one of the world's leading companies in the manufacture of jet aircraft with
seating capacity for fewer than 100 passengers.
On the negative side, the Fund's under-weighting in Russia held back
performance, as that country's equity market rebounded strongly amid hopes of
political reform and stability under President Putin.
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
Telefonos de Mexico SA, ADR ("Telmex") 4.7%
Samsung Electronics 3.4%
Taiwan Semiconductor 3.1%
Vestel Electronik Sanayi ve Ticaret AS 2.5%
Mahanagar Telephone Nigam Ltd., GDR 1.9%
United Microelectronics Corp. 1.9%
Hellenic Telecommunications
Organization SA, GDR 1.8%
Korea Electric Power Corp., ADR 1.7%
Turkiye Garanti Bankasi AS 1.7%
Embraer-Empresa Brasileira de Aeronautica SA 1.7%
What is your outlook for emerging markets?
We believe the emerging markets hold great potential value for investors. The
corrections in these markets in March and April had more to do with questions
about technology valuations and interest rates in the United States than they
did with the underlying fundamentals of emerging markets.
We believe economic growth should be healthy throughout the world and commodity
prices should continue to be firm. This should be a very favorable environment
for emerging markets.
We will continue to concentrate on having a well diversified portfolio of
companies with solid balance sheets and historically growing income. The stocks
of many of these companies have been trading at exceptionally attractive prices.
5
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EVERGREEN
Global Leaders Fund
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Fund at a Glance as of April 30, 2000
"Despite the incredible challenges of the past six months,we believe that we are
well positioned from a company-specific,industry and geographic allocation to
benefit in the coming months."
Portfolio Management
--------------------
Edwin D. Miska Anthony T. Han, CFA
Tenure: November 1995 Tenure: January 2000
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CURRENT INVESTMENT STYLE 1
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Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
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 are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns would have been lower.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
All data is as of April 30, 2000 and subject to change.
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PERFORMANCE AND RETURNS 2
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Portfolio Inception Date: 11/1/1995 Class A Class B Class C Class Y
Class Inception Date 6/3/1996 6/3/1996 6/3/1996 11/1/1995
Average Annual Returns *
6 month with sales charge 1.14% 0.85% 3.86% n/a
6 month w/o sales charge 6.21% 5.85% 5.86% 6.31%
1 year with sales charge 7.38% 6.97% 9.99% n/a
1 year w/o sales charge 12.72% 11.97% 11.99% 13.08%
Since Portfolio Inception 14.98% 15.27% 15.50% 16.53%
Maximum Sales Charge 4.75% 5.00% 2.00 n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $0.32 $0.32 $0.32 $0.32
*Adjusted for maximum applicable sales charge.
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LONG TERM GROWTH
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Class A MSCI World CPI
11/1/95 9,525 10,000 10,000
4/30/96 10,643 10,980 10,176
10/31/96 11,390 11,289 10,306
4/30/97 11,984 12,169 10,430
10/31/97 13,083 13,237 10,521
4/30/98 15,327 15,762 10,579
10/31/98 14,364 15,313 10,677
4/30/99 16,613 18,342 10,820
10/31/99 17,635 19,192 10,951
4/30/00 18,731 20,659 11,173
Comparison of a $10,000 investment in Evergreen Global Leaders Fund, Class A
shares2, versus a similar investment in the Morgan Stanley Capital International
World Index (MSCI World) and the Consumer Price Index (CPI).
The MSCI World is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
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.
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.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
6
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EVERGREEN
Global Leaders Fund
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Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000, the Evergreen Global Leaders Fund
Class A shares had a total return of 6.21%. During the same six-month period,
the Morgan Stanley Capital International World Index returned 7.49%, while the
median return of global funds was 13.15%, according to Lipper Inc., an
independent monitor of mutual fund performance. Fund returns are before
deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $422,237,362
Number of Holdings 105
What factors influenced the Fund's performance?
The Fund's returns were realized during an unusual time in the world's equity
markets that actually encompassed three different periods. During November and
December 1999, the first two months of the six-month period, stock markets
throughout the world rallied on strong synchronized global expansion. While the
large-cap, industry-leading companies in which the Fund invests participated in
this rally, they did not benefit as strongly as did smaller cap,
internet-related technology stocks or emerging markets companies. Moreover,
weakness in the euro, the Japanese yen and the British pound all undercut gains
outside the U.S.
The second period, which encompassed the first two months of 2000, was more
difficult for global stock investing in general, as evidenced by negative
returns of market indices in 19 of the 23 countries in which the Fund invests.
During this period, positive performance tended to be focused narrowly in the
so-called "TMT stocks" of the technology, media and telecommunications
industries, the "new economy". Broadly diversified strategies such as those
employed by the Fund were not rewarded and most individual issues outside this
focus depreciated in value. This speculative run climaxed in mid-March, and was
followed by a steep and swift sell-off. Money was rotated aggressively out of
these areas and back into "old economy" established names.
The final six weeks of the period marked a return toward fundamental investing
principles. Market leadership began to broaden again to include companies that
were able to show strong earnings growth, regardless of the industry in which
they were achieved. Investor fascination waned with internet, technology and
bio-tech stocks, many of which had no record of earnings and no prospects for
any. The Fund regained momentum during this period, and performed well relative
to the overall markets.
Top 5 Sectors
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(as a percentage of 4/30/2000 net assets)
Consumer Discretionary 22.6%
Financials 17.8%
Information Technology 17.7%
Industrials 14.0%
Health Care 9.8%
7
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EVERGREEN
Global Leaders Fund
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Portfolio Manager Interview
What were your principal strategies during the six-month period?
We kept our country allocations relatively consistent, with about 48.0% of net
assets invested in the U.S. down slightly from 49.5% at October 31, 1999.
Investments in the United Kingdom increased somewhat, from 7.4% of net assets on
October 31, 1999, to 10.1% on April 30, 2000. At the same time, investments in
Japan decreased from 8.4% to 6.5% of net assets. We maintained our level of
diversification having 18 countries represented in the Fund.
In the U.S., we maintained positions in high-quality, globally oriented
companies that had risen to industry leadership in many different areas. These
included companies such as Cisco Systems, General Electric, Intel, Microsoft,
Citigroup, and Wal-Mart. We also added several companies, including Sun
Microsystems, Inc., financial services giant American Express Corp.,
Anheuser-Busch Cos. and global telecommunications service provider, Bell
Atlantic. The extreme volatility during the period provided a unique opportunity
to add these distinguished companies to our portfolio. We took advantage of
price declines that were unrelated to these companies' strong fundamentals. On
the sell side, we sold off or cut back our positions in names that largely
disappointed, or showed signs of having near-term weakening outlooks, such as:
SLM Holding, Inc., Carnival Corp., Maytag Corp. and Marriott International Corp.
We also took advantage of extreme valuations in some technology holdings and
took profits with partial sales of Cisco Systems, Intel, Microsoft and Oracle
Corp.
In the United Kingdom, we added several new names, including Royal Bank of
Scotland, which is poised to become a leading global financial services company
following its acquisition of Natwest. We also invested in two companies
benefiting from the growth in technology: Sema Group, Europe's second largest
technology services company, and Bowthorpe, a leading technology component
manufacturer. We also added shares of Airtours Plc, a leading global player in
the tourism and travel agent industry. We sold shares of industrial companies
Laporte Plc, Williams Plc, Morgan Crucible and High Street retailer Next Plc.
Within continental Europe, the Fund made several changes, particularly in
Germany. The Fund's longtime holdings in utility giants RWE and VEW were sold as
mounting competitive pressures from falling electricity rates took their toll on
the ability of these companies to generate continued strong profit growth. The
Fund replaced them with fast growing firms, DePfa Bank, a leader in alternative
financing for public sector and infrastructure projects, and Marschollek Lauten
AG, a growing leader in diversified financial services tapping into the growing
European savings markets. A further play on that theme, Bipop-Carire, of Italy
was also added to the portfolio. The addition of Finnish company Tieto, a leader
in the Nordic region for information technology and consulting services rounded
out the Fund's new purchases.
The reduced weighting in Japan came primarily from our decision to cut our
position in Seven-Eleven Japan Co., a long-time holding that had grown to become
the Fund's largest position. Seven-Eleven's stock rose sharply during the early
months of the period under review after the company announced it was forming an
8
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EVERGREEN
Global Leaders Fund
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Portfolio Manager Interview
alliance with a leading internet retailer. Under this agreement, Seven-Eleven
store locations would also become distribution points for the retailer's
products sold over the internet. In addition, Seven-Eleven announced it was
considering installing ATM machines in its network of stores. As a result of the
company's strong performance, we took profits by reducing the Fund's position by
about half. We also realized profits in partial sales of the shares of Nintendo,
as competitive pressures from Sony's new platform, Playstation 2 and Microsoft's
intention to enter the field may weigh negatively on Nintendo's future profit
picture. At the same time, we did invest in another Japanese firm, NTT Mobile
Communications Network, the country's leading mobile phone company, that is
poised for global expansion.
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
Seven-Eleven Japan Co., Ltd. 4.1%
Cisco Systems, Inc. 3.4%
Bombardier, Inc., Cl. B 3.2%
Nokia Corp., ADR 2.7%
General Electric Corp. 2.6%
Intel Corp. 2.4%
Citigroup, Inc. 2.1%
Wal-Mart Stores, Inc. 1.9%
Oracle Systems Corp. 1.9%
Luxottica Group SpA, ADS 1.7%
What were some of the leading contributors to performance in the United States?
Our investments in the U.S. outperformed the benchmark S&P 500 Index, 9% to 7%,
with the leading performance coming from many of the Fund's largest positions,
namely within the technology group.
Cisco Systems, the Fund's second largest position, was up 89.1%, while Oracle
Systems rose by 239.0% and Intel by 64.4%. Microsoft's stock did not perform as
well, declining by 24% as investors worried about uncertainties created by the
government's anti-trust case against the software giant. Other domestic
companies that performed well included Walt Disney Co. which rose 63.5%, Morgan
Stanley Dean-Witter, which was up 39.0% and Harley-Davidson, which rose 34.4%.
What were some of the better performing companies outside the United States?
The foreign portion of the portfolio had a return of about 5%, with adverse
currency movements detracting from results. Among the leading foreign
investments contributing to the Fund's returns were two Japanese companies:
Seven-Eleven Japan, mentioned earlier, which has risen 196% in the last twelve
months, and Nintendo, which appreciated by 81.3%. Bombardier Inc., a Canadian
aircraft manufacturer, rose 54.3% on strong continued profit growth from
aerospace. Technology and Media shares led the performance in Europe, as
Getronics, a global technology services company headquartered in the
Netherlands, rose by 24%. VNU, a Dutch publishing and media company, had a 58%
return. British media giant Pearson Publishing Plc, best known as publisher of
"The Financial Times," rose 51.2%. Finnish mobile phone giant, Nokia, also
appreciated 106% during the six months. Overall, investments in Germany, France,
Belgium, Italy and the United Kingdom tended to lag, primarily because of
currency movements.
Our Asian Pacific allocations had mixed results. Our small position in Malaysia
rose 47.7%. This was offset by Hong Kong which was down 17% and Australia which
fell 12.8%.
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EVERGREEN
Global Leaders Fund
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Portfolio Manager Interview
Top 10 Countries
----------------
(as a percentage of 4/30/2000 net assets)
United States 48.0%
United Kingdom 10.1%
Japan 6.5%
Germany 6.0%
Italy 4.9%
France 4.7%
Canada 4.0%
Netherlands 3.8%
Finland 3.2%
Switzerland 1.6%
What is your investment outlook?
We have a positive outlook and believe that we have opportunities to achieve
strong performance investing in industry-leading companies that should be able
to continue to increase their earnings.
Despite the incredible challenges of the past six months, we believe that we are
well positioned from a company-specific, industry and geographic allocation to
benefit in the coming months. We believe four key factors will affect the
investment environment:
First, continued strength in demand for technology, including information
services and hardware. In much of the world, the "build-out" of the internet and
traditional and wireless telecommunications networks lags the U.S. We expect
countries and corporations will continue to invest in upgrading networks and
expanding communications systems, creating demand for hardware, software and
consulting services.
Second, growth in the U.S. should continue, albeit at a slower, more sustainable
pace. We believe the Federal Reserve will succeed in slowing growth and avoiding
an increase in inflation. If successful, the Federal Reserve's policies should
lengthen the record period of prosperity in the U.S., which has a major impact
on markets throughout the world.
Third, the environment in Europe should improve, helped by accelerating economic
growth and the dividends of corporate re-structuring, which has made many
leading European companies more efficient competitors. As the U.S. economy
begins to decelerate, growth in Europe should pick up. An increase in economic
growth in Europe also would help support the value of the euro on world currency
markets.
Lastly, the economies in Asia, including Japan, should continue their slow
recovery from the financial crisis of 1998. Japan, the region's leading economy,
finally has begun to embrace economic reforms, although not at the pace
economists outside Japan would like.
We believe the Fund is appropriately positioned to harness the changes underway
in the world. We will continue to rely on an investment approach that emphasizes
disciplined stock selection, fundamental analysis and prudent country
allocation. We plan to invest opportunistically and selectively in companies
with records of consistent earnings leadership, that have demonstrated their
ability to grow as the economic environment changes, and that are proactive with
respect to their shareholder's interests. We believe the companies best able to
take advantage of these opportunities are those with sound management teams and
strong balance sheets.
10
<PAGE>
EVERGREEN
Global Opportunities Fund
Fund at a Glance as of April 30, 2000
"In general, we are looking for companies with reasonable valuations and
catalysts that may drive future earnings growth. We believe we are finding many
such companies in international markets."
Portfolio Management
-----------------------------
[PHOTO] [PHOTO]
J.Gary Craven, Gilman C.Gunn
CFA, CPA Tenure: June 1997
Tenure: January 1998
[PHOTO] [PHOTO]
Francis X. Claro, CFA Liu-Er Chen, CFA
Tenure: January 1998 Tenure: January 1998
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE 1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
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 are 0.25% for Class A and 1.00% for
Classes B and C. 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.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS 2
--------------------------------------------------------------------------------
Portfolio Inception Date: 3/16/1988 Class A Class B Class C Class Y
Class Inception Date 3/16/1988 2/1/1993 2/1/1993 1/13/1997
Average Annual Returns *
6 month with sales charge 33.26% 34.34% 37.44% n/a
6 month w/o sales charge 39.91% 39.34% 39.44% 40.11%
1 year with sales charge 57.82% 59.42% 62.55% n/a
1 year w/o sales charge 65.70% 64.42% 64.55% 66.04%
5 years 16.03% 16.07% 16.29% 17.26%
10 years 16.33% 16.27% 16.30% 16.94%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $4.90 $4.90 $4.90 $4.90
*Adjusted for maximum applicable sales charge unless noted.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Class A MSCI World CPI
4/30/90 9,525 10,000 10,000
4/31/91 10,408 10,944 10,489
4/30/92 12,029 10,954 10,822
4/30/93 15,096 12,742 11,171
4/30/94 19,612 14,321 11,435
4/30/95 20,545 15,793 11,784
4/30/96 26,470 18,837 12,126
4/30/97 22,955 20,877 12,428
4/30/98 29,413 27,041 12,607
4/30/99 27,381 31,468 12,894
4/30/00 45,364 35,444 13,314
Comparison of a $10,000 investment in Evergreen Global Opportunities Fund, Class
A shares2, versus a similar investment in the Morgan Stanley Capital
International World Index (MSCI World) and the Consumer Price Index (CPI).
The MSCI World is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
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.
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.
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.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
All data is as of April 30, 2000 and subject to change.
11
<PAGE>
E V E R G R E E N
Global Opportunities Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000, the Evergreen Global
Opportunities Fund Class A shares had a total return of 39.91%. During the same
six-month period, the Morgan Stanley Capital International World Index returned
7.49%, while the median return of global small cap stock funds was 33.45%,
according to Lipper, Inc., an independent monitor of mutual fund performance.
Fund returns are before deduction of any applicable sales charges
Portfolio
Characteristics
---------------
Total Net Assets $257,391,539
Number of Holdings 154
What was the investment environment like during the six months, and how did that
affect overall strategy?
Small company stocks in the U.S., especially in technology and biotechnology,
continued their meteoric ride during the first four months of the period.
Increased use of the internet and advances in telecommunications and genetic
research helped propel many small-cap companies to extraordinarily high stock
valuations. However, in March and April 2000, the final two months of the
period, concerns about valuations and the impact of rising interest rates caused
a correction in technology stocks.
For most of the period, the Fund maintained a healthy weighting in the U.S. to
take advantage of growth prospects in technology and biotechnology. Outside the
U.S., investments tended to be less aggressive, giving the Fund greater
diversification and overall balance. For the six-month period ended April 30,
2000, the target asset allocation was 50% U.S. and 50% foreign.
Top 5 Sectors
-------------
(as a percentage of 4/30/2000 net assets)
Information Technology 22.0%
Industrials 21.7%
Consumer Discretionary 14.2%
Financials 9.0%
Energy 8.6%
What were the primary factors contributing to performance in the U.S.?
G. Craven: Technology and biotechnology were the main determinants of
performance. In technology, our electronic hardware investments were up 77% for
the period, while software company investments climbed by 59%. Most of our
biotechnology investments were made in December and sold in March. We took
advantage of the very rapid run-up in the biotech industry after the
announcements about advances in genomics, or the science of gene mapping. These
advances should increase prospects for more accurate and less expensive
development of new drug therapies. Our biotechnology investments rose by 61%. We
were also successful in the area of industrial services, particularly in
companies engaged in building communications networks. Two examples were Mastec
and Dycom Industries, both of which install underground cable and wire lines.
12
<PAGE>
EVERGREEN
Global Opportunities Fund
Portfolio Manager Interview
We maintain a long-term, bullish attitude toward the technology industry,
although the area suffered steep declines in stock prices in the final two
months of the period, March and April 2000. While we continue to see
opportunities for investments in companies with strong earnings growth, it is
fair to say that many stock prices had climbed too high, too fast, reaching
levels that could not be sustained by a realistic analysis of companies'
long-term earnings potential. This growing awareness contributed to the
correction in prices.
Outside of technology and biotechnology, we increased our investments in energy
companies, believing that rising oil and gas prices would generate increased
exploration activities. We invested in Cal Dive International, which provides
construction services for deepwater oil exploration activities.
What were some of the stocks that led the performance in the U.S.?
G. Craven: Spyglass, a diversified software and consulting company linking
wireless communications systems to the internet, was a very strong performer.
Extended Systems was another leading investment. It develops software helping
mobile devices connect with computer networks and desktop computers. A third
leading investment was Tollgrade, which produces testing equipment for
high-speed internet systems. Tollgrade should benefit as fast internet service
reaches homes and small businesses.
Medarex was one of our outstanding biotechnology investments. This company
produces antibodies used by biotech companies in testing new drugs.
What were some of the factors influencing performance outside the U.S.?
G. Gunn: We were less aggressive in our international investments, partly to
balance the overall risks of the portfolio. Knowing the domestic portion of the
portfolio emphasized technology and biotechnology stocks for most of the period,
we tried to increase the Fund's diversification with investments in other
industries, including commercial services, manufacturing, finance and energy.
Europe was our leading area of emphasis and represented 28% of the Fund. As in
the U.S., European markets started the six-month period with exceptional
performance, especially among technology companies, but gave back some of those
gains during the final two months of the period. Over the full six months, the
European investments were significant contributors to performance.
Especially in the final weeks of the period, we have increased our investments
in moderate and low-priced stocks of European companies with catalysts that we
believe can help them generate strong earnings growth.
An excellent example is the largest holding of the Fund, FKI--a company based in
the United Kingdom. We built up our position in FKI during the final weeks of
the period. FKI is transforming itself from an engineering company into a major
supplier of logistics systems for companies, especially corporations doing
business on the internet, to manage their warehouse supply and mailing
operations. FKI supplies both the hardware and software for these sophisticated
systems.
13
<PAGE>
EVERGREEN
Global Opportunities Fund
Portfolio Manager Interview
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
FKI Plc. 2.7%
Three-Five Systems, Inc. 1.9%
Tollgrade Communications, Inc. 1.7%
Transciel SA 1.4%
Garban Plc. 1.4%
Embraer-Empresa Brasileira de Aero SA 1.4%
Canadian Natural Resources, Ltd. 1.3%
Mastec, Inc. 1.3%
Rural Celluar Corp., Cl. A 1.2%
Triton Energy, Ltd. 1.2%
What were some of your themes outside of Europe?
G. Gunn: Japan was our largest area of emphasis outside Europe, with about 10%
of net assets on April 30, 2000. Japanese small company stocks, in particular,
helped performance substantially, even though we reduced the Fund's weighting in
Japanese technology companies as the period progressed. Two non-tech companies
in Japan that we have added recently are Makita Corp., which manufactures power
tools such as saws and drills, and Shimano, which manufactures parts such as
braking systems for bicycles. Both Makita and Shimano are leading companies in
the global market niches in which they compete, and yet their stock prices were
very inexpensive in relation to their earnings and cash flow.
We increased our investments in Canada during the six months, investing in three
energy companies that were well positioned to take advantage of the revival in
world energy prices. We also invested in Sobey's, a Canadian company whose stock
represented exceptional value. After a major acquisition, Sobey's has grown to
be Canada's second largest supermarket chain. The stock has been selling at a
price/earnings ratio of about 12, while we expect the company should increase
earnings by 20% to 30% in each of the next two years.
We had only one investment in the emerging markets, but it was a very strong
performer. Embraer of Brazil is one of the world's leading manufacturers of
small-sized commercial jet planes for the airline and commuter airline industry.
As airline companies move away from noisy, propeller-driven planes, Embraer is
well positioned as one of only two companies in the world with a major position
in the manufacturer of jet aircraft capable of carrying between 30 and 70
passengers.
Top 10 Countries
----------------
(as a percentage of 4/30/2000 net assets)
United States 52.6%
United Kingdom 10.0%
Japan 9.8%
Switzerland 7.2%
Canada 3.8%
France 3.6%
Australia 2.4%
Germany 2.2%
Sweden 1.7%
Brazil 1.5%
14
<PAGE>
EVERGREEN
Global Opportunities Fund
Portfolio Manager Interview
What is your outlook for small company stocks outside the U.S., Gilman?
We believe we are finding some great small-cap companies in foreign markets,
whose stock performance should not be too dependent on larger market trends. In
investing in these companies, our challenge is to navigate through the
uncertainty coming out of the U.S., where the stock markets have become
increasingly volatile as interest rates rose.
In general, we are looking for companies with reasonable valuations and
catalysts that may drive future earnings growth. We believe we are finding many
good companies in international markets.
What is your outlook for small company stocks in the U.S., Gary?
While we are very bullish about the long-term potential of technology, we think
recent stock valuations remain too high. When they adjust to more realistic
levels, we believe technology stocks again will be the best place to achieve
long-term stock performance. While we wait for technology stocks to return to
realistic prices, we are finding other areas of the small-cap stock market
increasingly interesting, with high earnings growth rates and relatively lower
prices. We have increased our emphasis in health care services and energy.
Small company stock investing has great long-term performance potential, but
historically most of the performance comes in very short periods of time that
are difficult to predict. As a result, it is important for investors not to try
to guess when small company stocks are most likely to rally. We believe that
people need to remain invested in small company stocks so they can gain the
benefit of the upswings and the long-term performance of the sector, which we
are confident will be significant over time.
15
<PAGE>
EVERGREEN
International Growth Fund
Fund at a Glance as of April 30, 2000
"We reduced our exposure to emerging markets and to the technology
industries,while adding to more defensive industries such as energy,natural
resources,foods and tobacco industries."
Portfolio
Management
----------
Gilman C. Gunn
Tenure: January 1991
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
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 the higher 12b-1 fees applicable to Class B. These fees are 0.25% for
Class A and 1.00% for Classes B and C. 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.
All data is as of April 30, 2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS1
--------------------------------------------------------------------------------
Portfolio Inception Date: 9/6/1979 Class A Class B Class C Class Y
Class Inception Date 1/20/1998 9/6/1979 3/6/1998 3/9/1998
Average Annual Returns *
6 month with sales charge 5.19% 4.86% 7.98% n/a
6 month w/o sales charge 10.38% 9.86% 9.98% 10.40%
1 year with sales charge 14.17% 13.82% 16.95% n/a
1 year w/o sales charge 19.86% 18.82% 18.95% 20.03%
5 years 13.61% 13.65% 13.91% 14.90%
10 years 10.21% 9.85% 9.85% 10.97%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month income distributions
per share $0.11 $0.06 $0.06 $0.14
6-month capital gain distributions
per share $0.41 $0.41 $0.41 $0.41
*Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Class B MSCI EAFE CPI
4/30/90 10,000 10,000 10,000
4/30/91 9,913 10,471 10,489
4/30/92 10,436 9,615 10,822
4/30/93 11,841 11,735 11,171
4/30/94 13,915 13,724 11,435
4/30/95 13,356 14,531 11,784
4/30/96 15,931 16,238 12,126
4/30/97 17,744 16,141 12,428
4/30/98 22,447 19,245 12,607
4/30/99 21,527 21,132 12,894
4/30/00 25,578 24,128 13,314
Comparison of a $10,000 investment in Evergreen International Growth Fund, Class
B shares2, versus a similar investment in the Morgan Stanley Capital
International Europe, Australasia, and Far East Index (MSCI EAFE) and
the Consumer Price Index (CPI).
The MSCI EAFE is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
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.
Funds that invest in high yield, lower-rated bonds may contain more risk due to
the increased possibility of default.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
16
<PAGE>
EVERGREEN
International Growth Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000 the Evergreen International Growth
Fund Class B shares had a total return of 9.86%. During the same six-month
period, the Morgan Stanley Capital International EAFE Index, a common benchmark
for international investing, returned 6.72%, while the international funds
median return was 12.58%, according to Lipper Inc., an independent monitor of
mutual fund performance. Fund returns are before deduction of any applicable
sales charges.
The Fund's returns reflect our strategy of blending elements of the growth and
value styles, which we believe is a prudent course for the long term in
international investing. During the six months, however, this strategy resulted
in performance somewhat below that of more aggressive funds with greater
emphasis on technology or emerging market investments.
Portfolio
Characteristics
---------------
Total Net Assets $793,761,578
Number of Holdings 160
What was the investment environment like during the six-month period?
It was a very volatile environment, with fast-growing technology stocks leading
international markets for the first four months of the period. These stocks gave
ground in the final two months to those companies in more defensive industries,
including natural resources, energy, foods and beverages. Throughout the period,
performance depended less on national markets and more on industries or sectors.
Technology stocks, as represented by the NASDAQ Composite Index in the U.S., had
strong, even spectacular performance early in the period before falling sharply
amid fears about their high valuations and the potential effects of interest
rate increases in the U.S. An additional source of volatility and uncertainty
was the effect of currency. The euro, introduced in January 1999, continued its
downtrend against the dollar, losing 9% of its value in the first four months of
2000.
Among major, non-U.S. markets, the economy of Japan appeared increasingly
fragile in early 2000, in part because of the same worries about high technology
that created volatility in American markets.
17
<PAGE>
EVERGREEN
International Growth Fund
Portfolio Manager Interview
Top 10 Countries
----------------
(as a percentage of 4/30/2000 net assets)
Japan 21.0%
United Kingdom 13.5%
Canada 11.1%
France 10.9%
Netherlands 6.2%
Germany 6.1%
United States 5.3%
Switzerland 4.9%
Italy 3.6%
Sweden 3.2%
Within this environment, what were your principal strategies?
We became more cautious as the period progressed, with respect to industry
allocations and currency positions.
We reduced our exposure to emerging markets and to the technology industries,
while adding to more defensive industries such as energy, natural resources,
foods and tobacco industries. We increased our currency hedge of investments in
Japan because of our concern about the value of the yen. At the same time,
because of the prolonged weakness in the euro, we eliminated our hedge there,
believing the European currency was at, or approaching, a bottoming of its
value.
By the close of the fiscal period, on April 30, the Fund's emerging markets
investments totaled about 3% of net assets. While Fund investments in these
markets, particularly in Mexico and Brazil, helped performance early in the
period, we became concerned about the short-term prospects in these markets,
especially as the Federal Reserve Board raised short-term rates in the U.S.
At the close of the fiscal period, 55% of net assets were invested in Europe and
21% in Japan. Within industries, the leading allocation was to energy, at 10.7%
of net assets, followed by banking at 10%. Telecommunications, which had been a
major area of emphasis early in the period and which contributed to performance,
was reduced to 9% of net assets. Meanwhile, pharmaceutical companies were
increased to about 7.5% of assets at the end of the period, keeping with the
Fund's heightened interest in defensive stocks.
Top 5 Sectors
-------------
(as a percentage of 4/30/2000 net assets)
Financials 25.6%
Energy 10.7%
Materials 10.0%
Information Technology 9.4%
Health Care 8.6%
18
<PAGE>
EVERGREEN
International Growth Fund
Portfolio Manager Interview
What were examples of stocks that contributed to performance?
Petro-Canada, the Fund's largest holding at the end of the period, was an
excellent performer that illustrates both our increased weighting in energy and
natural resources and our greater emphasis on value stocks. Petro-Canada is a
major Canadian integrated oil and gas company with fast-growing revenues. Its
stock has been selling at a very low price, when compared to comparable U.S. and
European companies and offers exceptional value.
Nokia, the Fund's second largest holding, is a good example of the type of
growth company in which we invest. This Finnish-based corporation has a dominant
position in the world cellular phone market. Its leadership in both technology
and in design give it strong opportunities to continue growing as mobile phone
use expands to include such uses as data retrieval and e-mail.
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
Petro-Canada 2.9%
Nokia OYJ 2.1%
Total Fina SA, Cl. B 2.1%
Allianz AG 1.6%
Koninklijke (Royal) Philips Electronics N.V. 1.5%
AXA 1.5%
ENI SpA 1.5%
Manulife Financial Corp. 1.5%
Barclays Bank Plc. 1.5%
BP Amoco 1.4%
What is your outlook for international investing?
We believe developments in the U.S. will have a major impact on foreign markets.
Factors such as the interest rates and trends in the stock markets, especially
the technology-heavy NASDAQ, will be a strong influence on overseas stock
performance. Many foreign currencies also are directly or indirectly linked to
the value of the U.S. dollar.
We expect to continue to see high levels of market volatility in the short run.
As a result, we plan to continue to emphasize more defensive investments and
value stocks, which are stocks with more reasonable prices when compared to
factors such as earnings and cash flow. During the past six months, we have
raised the Fund's value component from about 30% to about 40% of net assets.
We currently have about 55% of net assets invested in Europe, with much of it in
defensive industries. These investments are largely unhedged, as we believe the
euro is at or near its bottom versus the U.S. dollar.
19
<PAGE>
EVERGREEN
Latin America Fund
Fund at a Glance as of April 30, 2000
"We believe global economic growth should be healthy and commodity prices should
continue to be firm. This should be a very favorable environment for Latin
American investing, especially at current prices."
Portfolio
Management
------------------
[PHOTO]
Antonio T. Docal, CFA
Tenure: October 1996
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
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. The 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%.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
All data is as of April 30, 2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS1
--------------------------------------------------------------------------------
Portfolio Inception Date: 11/1/1993 Class A Class B Class C Class Y
Class Inception Date 11/1/1993 11/1/1993 11/1/1993 3/30/1998
Average Annual Returns *
6 month with sales charge 18.64% 19.16% 22.07% n/a
6 month w/o sales charge 24.58% 24.16% 24.07% 24.70%
1 year with sales charge 14.35% 14.14% 17.19% n/a
1 year w/o sales charge 20.00% 19.14% 19.19% 20.27%
5 years 7.27% 7.23% 7.49% 8.45%
Since Portfolio Inception 5.10% 5.15% 5.11% 5.98%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
*Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Class A MSCI World S & P 500 CPI MSCI EMFLA
11/1/93 9,525 10,000 10,000 10,000 10,000
4/30/94 9,525 10,896 9,862 10,110 10,387
10/31/94 10,211 11,464 10,487 10,254 12,388
4/30/95 9,258 12,016 11,584 10,418 9,888
10/31/95 9,869 12,613 13,259 10,542 9,981
4/30/96 10,908 14,333 15,084 10,720 11,310
10/31/96 11,521 14,737 16,454 10,857 10,628
4/30/97 14,483 15,885 18,876 10,988 11,795
10/31/97 13,730 17,279 21,738 11,084 9,727
4/30/98 15,619 20,575 26,627 11,145 10,081
10/31/98 10,012 19,989 26,518 11,248 6,713
4/30/99 11,506 23,942 32,441 11,399 9,054
10/31/99 11,086 25,053 33,328 11,536 9,708
4/30/00 13,809 26,968 35,726 11,770 11,055
Comparison of a $10,000 investment in Evergreen Latin America Fund, Class A
shares2, versus a similar investment in the Morgan Stanley Capital International
World Index (MSCI World), the Morgan Stanley Capital International Emerging
Markets Free Latin America Index (MSCI EMFLA), the Standard & Poor's 500 Index
(S&P 500) and the Consumer Price Index (CPI).
The MSCI World, MSCI EMFLA and the S&P 500 are unmanaged market indices which do
not include transaction costs associated with buying and selling securities or
any mutual fund expenses. 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.
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.
Funds that invest in high yield, lower-rated bonds may contain more risk due to
the increased possibility of default.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
20
<PAGE>
EVERGREEN
Latin America Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000, the Evergreen Latin America Fund
Class A shares had a total return of 24.58%. During the same six-month period,
the Morgan Stanley Capital International Emerging Markets Free Latin America
Index and the Morgan Stanley Capital International World Index returned 20.84%
and 7.49%, respectively. The Standard & Poor's 500 Index returned 7.19% for the
same period. Fund performance is before deduction of any applicable sales
charges.
Portfolio
Characteristics
---------------
Total Net Assets $30,964,411
Number of Holdings 58
What was the investment environment like during the period?
The economies of Latin America continued to emerge from the financial crisis of
1997 and 1998, with progress led by the region's two largest, and most liquid
markets, Mexico and Brazil. Economic fundamentals were strong, with high growth
rates in gross domestic product, stable to declining interest rates, and rising
corporate profitability. Corporate earnings rates in Latin America are expected
to rise by 20% in 2000.
As evidence of the region's progress, Moody's, one of the leading credit rating
services, recently upgraded the credit rating of Mexican debt to investment
grade, further encouraging confidence in Latin American markets.
Over the full six months, equity markets in Latin America advanced strongly,
spurred on by accelerating global economic growth, rising prices of commodities
such as oil and copper, attractive valuations in emerging markets, political and
economic reforms, and explosive performance in technology, media and
telecommunications industries, "TMT stocks", in equity markets throughout the
world.
However, the rally in Latin American markets and in emerging markets in general
was interrupted in the final two months of the period. We believe this
interruption was caused primarily by the ripple effects of market volatility in
the U.S. rather than by any underlying issues in Latin America. Fears of high
stock valuations of technology companies and the effects of interest rate
increases by the Federal Reserve Board in the U.S. caused investors to avoid
riskier assets, including technology stocks and emerging market stocks, such as
in Latin America.
Top 5 Sectors
-------------
(as a percentage of 4/30/2000 net assets)
Telecommunication Services 29.7%
Materials 13.3%
Financials 12.3%
Consumer Discretionary 11.7%
Consumer Staples 11.2%
21
<PAGE>
EVERGREEN
Latin America Fund
Portfolio Manager Interview
What were your principal strategies during the six months?
We positioned the Fund aggressively over the six months, with the largest
allocations in Brazil and Mexico, which together accounted for 88% of net
assets. We also over-weighted the most liquid stock sectors, emphasizing
telecommunications, financial services and cyclical sectors. We de-emphasized
utility stocks, which we believed offered the least potential return on
investment, while avoiding the extremely volatile internet stocks, which
suffered a steep correction in the final two months of the period. Over the
period, the Fund averaged a 29.7% weighting in telecommunications, an 11.3%
weighting in banking; and a 7.3% weighting in beverages, a defensive industry.
Relative to the Morgan Stanley Latin American index, our largest relative
over-weighting was in broadcasting and publishing, while our largest relative
under-weighting was in utilities.
Despite the effects of volatility in the U.S., we kept the Fund fully invested
because of attractive valuation levels and continued earnings growth in
corporations throughout the region.
Top Countries
-------------
(as a percentage of 4/30/2000 net assets)
Mexico 48.5%
Brazil 39.5%
Chile 4.3%
Argentina 3.1%
United States 3.1%
Peru 0.5%
Venezuela 0.5%
What stocks helped Fund performance?
Several stocks made strong contributions to the Fund's returns.
Telmex, Mexico's large telephone and telecommunications company and the Fund's
largest position, did very well. The stock of this well managed company
continued to trade at attractive valuations. We believe Telmex will continue to
be a key player in industry consolidation.
Embraer, a long-time holding of the Fund, performed exceptionally well. Based in
Brazil, Embraer has grown to have a leading global position in the production of
jet aircraft capable of seating fewer than 100 passengers. The company's planes
are in demand by leading airlines and commuter airline companies throughout the
world.
Petroleo, our largest Brazilian holding, also did extremely well in an energy
industry rally, fueled by rising oil prices. This diversified company is
involved in virtually all aspects of the oil industry, and has one of the
world's ten largest oil reserves among publicly traded companies. The stock
price has benefited from the company's increasing efficiency from restructuring
and increasing focus on profitability.
22
<PAGE>
EVERGREEN
Latin America Fund
Portfolio Manager Interview
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
Telefonos de Mexico SA, ADR ("Telmex") 11.4%
Petroleo Brasileiro SA, ADR ("Petrobras") 5.5%
Embraer-Empresa Brasileira de Aeronautica SA 5.1%
Grupo Televisa SA, ADR 4.4%
Tele Norte Leste Participacoes SA, ADR 4.2%
Wal-Mart de Mexico SA de CV 3.8%
Fomento Economico Mexicano, Ser. B, ADR 3.7%
Telesp-Telecommunications de Sao Paulo SA 3.2%
Caemi Mineracao E Metalurgia SA 3.1%
Grupo Financiero Bancomer SA, Ser. O 3.0%
What is your outlook for investing in Latin America?
We continue to be cautiously optimistic about the outlook in Latin America.
Stock valuations are very attractive after recent corrections caused more by
uncertainty in the U.S. than by economic fundamentals in Latin America.
Throughout the region, economies are growing, earnings growth rates are strong,
and the economic fundamentals are improving. We expect local interest rates will
trend downward.
We believe global economic growth should be healthy and commodity prices should
continue to be firm. This should be a very favorable environment for Latin
American investing, especially at current prices.
23
<PAGE>
EVERGREEN
Perpetual Global Fund
Fund at a Glance as of April 30, 2000
"The Federal Reserve Board's tight monetary policy and the extent to which it
slows U.S. consumer spending will be a big influence on world markets."
Portfolio Management
--------------------
Ian Brady Kathryn Langridge
Tenure: April 1995 Tenure: April 1995
Robert Yerbury Margaret Roddan
Tenure: April 1995 Tenure: April 1995
Stephen Whittaker Paul Chesson
Tenure: April 1995 Tenure: January 2000
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes B and Y prior to their inception is
based on the performance of Class A, one of the original classes offered along
with Class C. These historical returns for Classes B and Y have not been
adjusted to reflect the effect of each class' 12b-1 fees. These fees are 0.25%
for Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If
these fees had been reflected, returns for Class B 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. 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.
All data is as of April 30, 2000 and subject to change.
--------------------------------------------------------------------------------
PEFORMANCE AND RETURNS2
--------------------------------------------------------------------------------
Portfolio Inception Date: 3/29/1994 Class A Class B Class C Class Y
Class Inception Date 3/29/1994 10/18/1999 3/29/1994 11/19/1997
Average Annual Returns *
6 month with sales charge 5.57% 5.54% 8.47% n/a
6 month w/o sales charge 10.84% 10.31% 10.36% 11.01%
1 year with sales charge 11.45% 11.46% 14.15% n/a
1 year w/o sales charge 17.02% 16.46% 16.14% 17.42%
5 years 16.95% 17.78% 17.24% 18.26%
Since Portfolio Inception 13.94% 14.76 13.97% 14.98%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $3.35 $3.35 $3.35 $3.35
*Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Evergreen Consumer Price MSCI World
Perpetual Global; A Index - US Equity Index
03/29/94 9,525 10,000 10,000
04/30/94 9,505 10,014 10,311
04/30/95 9,634 10,319 11,371
04/30/96 12,582 10,618 13,563
04/30/97 13,237 10,883 15,031
04/30/98 16,942 11,039 19,470
04/30/99 18,912 11,291 22,656
04/30/00 22,128 11,659 25,519
Comparison of a $10,000 investment in Evergreen Perpetual Global Fund, Class A
shares2, versus a similar investment in the Morgan Stanley Capital International
World Index (MSCI World) and the Consumer Price Index (CPI).
The MSCI World is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
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.
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.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
24
<PAGE>
EVERGREEN
Perpetual Global Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000, the Evergreen Perpetual Global
Fund Class A shares had a total return of 10.84%. In comparison, the MSCI World
Index returned 7.49% during the same period. The six-month period was marked by
significant volatility in the world's financial markets, as investors bid up the
prices of technology shares, then rotated out of them when their valuations
became excessive. Fund returns are before the deduction of any applicable sales
charge.
Portfolio
Characteristics
---------------
Total Net Assets $236,218,269
Number of Holdings 348
What was the investment environment like in the global markets during the
period?
In many ways, overseas markets mirrored the activity in the U.S. market. For
most of the period, investors throughout the world ignored the upside potential
and attractive prices of value stocks and favored virtually any stock in the
technology area. When it became apparent that many technology issues had become
overvalued, investors abandoned these high-flying shares and moved into market
sectors that were more reasonably priced. Stock market volatility in Continental
Europe and Japan was exacerbated by a 14% decline in the value of the euro and a
4% decline in the value of the yen.
How did you manage the Fund in this environment?
Early in the period, we made significant changes in asset allocation. We reduced
the Fund's exposure to Continental Europe and the United Kingdom (UK) and raised
its positions in Japan and in the emerging markets of Latin America and Eastern
Europe. As a result, Continental Europe and the UK accounted for 29% and 7% of
the Fund's net assets, respectively. Net assets in Japan and the emerging
markets stood at 17% and 4%, respectively, at the end of the period. Investment
in other Asian markets was steady at 9%.
What portion of the portfolio benefited the Fund the most?
Despite the Fund's reduced commitment to Continental Europe, European stocks
were the largest contributors to Fund performance. In Europe we emphasized
technology, telecommunications and media stocks. A major theme in Europe is the
lead it has over the U.S. in wireless e-commerce. Europe's early decision to
adopt a single digital protocol and the technological edge of companies such as
Nokia and Ericsson are likely to make wireless the access point of choice to the
internet earlier in Europe than in the U.S.
In the UK, the Fund was underweighted in major telecommunications stocks because
we believed they were overvalued. As a result, the UK portion of the portfolio
held back performance for most of the period. More recently, as investors began
to focus on valuation levels, many of the Fund's UK holdings began to outperform
the market.
25
<PAGE>
EVERGREEN
Perpetual Global Fund
Portfolio Manager Interview
Why did you raise the Fund's allocation to Japan?
The many changes taking place in the economy and in the business culture in
Japan have boosted our enthusiasm about the long-term potential of Japanese
stocks. Corporate restructuring continues to be a major influence in the
Japanese markets. Business confidence continues to rise. The real GDP trend is
up, and exports are improving. In addition, Japan's monetary policy tends toward
easing and interest rates are close to zero. Inflation is a negative number.
These factors are favorable for the stock market. In building the Fund's
position in Japan, we focused on what we refer to as "world class blue-chip
technology stocks" in all areas of the broad technology sector. Because we
expect the yen to weaken, we covered approximately half of the Fund's yen
exposure to the U.S. dollar. A weaker yen will be favorable for the Japanese
market because it will increase the value of exports in Japanese yen.
Top 5 Sectors
-------------
(as a percentage of 4/30/2000 net assets)
Information Technology 17.7%
Industrials 17.0%
Financials 14.8%
Consumer Discretionary 12.2%
Telecommunication Services 9.8%
What changes did you make in Asia not including Japan?
In Hong Kong, we favored companies related to telecommunications in China and
property developers. Because the Hong Kong dollar is tied to the U.S. dollar,
Hong Kong property developers have been affected by higher U.S. interest rates.
As a result, property sales have declined, profits are weak and stocks are
historically cheap. In Korea and Taiwan, we continued to emphasize technology
stocks.
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
LM Ericsson Telephone, Ser. B 1.6%
Nippon Telegraph & Telephone Corp. 1.5%
Nokia OYJ 1.5%
Bell Atlantic Corp. 1.3%
Ricoh Co., Ltd. 1.3%
BankAmerica Corp. 1.3%
CBS Corp. 1.2%
Koninklijke (Royal) Philips Electronics N.V. 1.2%
Canon, Inc. 1.2%
Microsoft Corp. 1.2%
26
<PAGE>
EVERGREEN
Perpetual Global Fund
Portfolio Manager Interview
How did you manage the Fund's U.S. investments?
The Fund's U.S. investments remained at 36% of net assets. We continued to hold
a diversified portfolio in the U.S., with exposure to technology and value
stocks. During a time of extraordinary market turbulence in the U.S., broader
diversification in other markets limited the Fund's volatility. The Fund's 36%
commitment to North American stocks is well below the 52% allocation in the MSCI
World Index.
Top 10 Countries
----------------
(as a percentage of 4/30/2000 net assets)
United States 35.8%
Japan 15.8%
United Kingdom 7.7%
France 6.5%
Netherlands 5.2%
Germany 5.0%
Hong Kong 2.9%
Spain 2.6%
Finland 2.1%
Ireland 2.0%
Did you make changes in the emerging markets?
We increased the Fund's investments in Mexico and Brazil to 2%, mostly in
telecommunications stocks. We also raised the Fund's commitment in Eastern
Europe and Israel to 2%.
What is your outlook?
We believe the Federal Reserve Board's tight monetary policy and the extent to
which it slows U.S. consumer spending will have a major influence on world
markets. However, because there are autonomous economic recoveries taking place
in Japan and Continental Europe, a downturn in consumer demand in the U.S. will
have fewer negative implications for other markets than would have been the case
a year ago. As economic growth in Japan and Continental Europe continues to
improve, these countries will be less dependent on exports to the U.S.
27
<PAGE>
EVERGREEN
Perpetual International Fund
Fund at a Glance as of April 30, 2000
"Even though we reduced the Fund's commitment to Continental Europe, European
stocks were the largest contributors to performance."
Portfolio Management
--------------------
Robert Yerbury Kathryn Langridge
Tenure: April 1995 Tenure: May 1996
Margaret Roddan Stephen Whittaker
Tenure: May 1996 Tenure: May 1996
Pat Chesson
Tenure: January 2000
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
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 are 0.25% for Class A and 1.00% for
Classes B and C. 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.
All data is as of April 30, 2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
--------------------------------------------------------------------------------
Portfolio Inception Date: 5/29/1996 Class A Class B Class C Class Y
Class Inception Date 12/27/1996 10/18/1999 12/27/1996 5/29/1996
Average Annual Returns *
6 month with sales charge 6.39% 6.20% 9.32% n/a
6 month w/o sales charge 11.71% 11.20% 11.32% 11.84%
1 year with sales charge 14.70% 15.07% 17.57% n/a
1 year w/o sales charge 20.41% 20.07% 19.57% 20.76%
Since Portfolio Inception 14.07% 14.19% 13.49% 14.36%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain
distributions per share $1.92 $1.92 $1.92 $1.92
*Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Perpetual Consumer Price MSCI EAFE
International;A Index - US Equity Index
5/29/96 9,525 10,000 10,000
4/30/97 10,121 10,101 9,905
10/31/97 10,580 10,189 10,217
4/30/98 12,344 10,246 11,810
10/31/98 11,363 10,340 11,234
4/30/99 13,249 10,479 12,968
10/31/99 14,283 10,605 13,859
4/30/00 15,958 10,821 14,806
Comparison of a $10,000 investment in Evergreen Perpetual International Fund,
Class A shares2, versus a similar investment in the Morgan Stanley Capital
International Europe, Australasia, and Far East Index (MSCI EAFE) and the
Consumer Price Index (CPI).
The MSCI EAFE is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
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.
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.
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.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
28
<PAGE>
EVERGREEN
Perpetual International Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended April 30, 2000, the Evergreen Perpetual
International Fund's Class A shares had a total return of 11.71%. In comparison,
the Morgan Stanley Capital International Europe, Australasia, and Far East Index
returned 6.84% for the same period. The six-month period was marked by
significant volatility in the world's financial markets, as investors bid up the
prices of technology stocks then rotated out of them when their valuations
became excessive. Fund returns are before the deduction of any applicable sales
charges.
Portfolio
Characteristics
---------------
Total Net Assets $210,092,274
Number of Holdings 294
What was the investment environment like in the international markets during the
period?
In many ways, overseas markets mirrored the activity in the U.S. market. For
most of the period, investors throughout the world ignored the upside potential
and attractive prices of value stocks and favored virtually any stock in the
technology area. When it became apparent that many technology issues had become
overvalued, investors abandoned these high-flying shares and moved into market
sectors that were more reasonably priced. Stock market volatility in Continental
Europe and Japan was exacerbated by a 14% decline in the value of the euro and a
4% decline in the value of the yen.
How did you manage the Fund in this environment?
Early in the period, we made significant changes in asset allocation. We reduced
the Fund's exposure to Continental Europe and the UK and raised its positions in
Japan, Asia and in the emerging markets of Latin America and Eastern Europe. As
a result, Continental Europe and the UK accounted for 43% and 14% of the Fund's
net assets, respectively. Net assets in Japan, Asia and the emerging markets
stood at 26%, 11% and 4%, respectively, at the end of the period.
Top 10 Countries
----------------
(as a percentage of 4/30/2000 net assets)
Japan 26.1%
United Kingdom 14.2%
France 9.0%
Netherlands 7.9%
Germany 6.8%
United States 6.6%
Spain 4.3%
Hong Kong 4.0%
Finland 3.0%
Ireland 3.0%
29
<PAGE>
EVERGREEN
Perpetual International Fund
Portfolio Manager Interview
What portion of the portfolio benefited the Fund the most?
Even though we reduced the Fund's commitment to Continental Europe, European
stocks were the largest contributors to performance. In Europe, we emphasized
technology, telecommunications and media stocks. A major theme in Europe is the
lead it has over the U.S. in wireless e-commerce. Europe's early decision to
adopt a single digital protocol and the technological edge of companies such as
Nokia and Ericsson are likely to make wireless the access point of choice to the
internet earlier in Europe than in the U.S.
In the UK, the Fund was under-weighted in major telecommunications stocks
because we believed they were overvalued. As a result, the UK portion of the
portfolio held back performance for most of the period. More recently, as
investors began to focus on valuation levels, many of the Fund's UK holdings
began to outperform other markets.
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
LM Ericsson Telephone, Ser. B 2.3%
Nokia OYJ 2.1%
Philips Electronics 1.8%
Honda Motor Co., Ltd. 1.7%
Mabuchi Motor Co. 1.6%
Total Fina SA, Cl. B 1.5%
Canon, Inc. 1.5%
Shin Etsu Chemical Co., Ltd. 1.5%
Vodafone Airtouch Plc 1.5%
Uni Charm Corp. 1.4%
Why did you raise the Fund's allocation to Japan?
The many changes taking place in the economy and in the business culture in
Japan have boosted our enthusiasm about the long-term potential of Japanese
stocks. Corporate restructuring continues to be a major influence in the
Japanese markets. Business confidence continues to rise. The real GDP trend is
up, and exports are improving. In addition, Japan's monetary policy is biased
toward easing, and interest rates are close to zero. Inflation is a negative
number. These factors are favorable for the stock market. In building the Fund's
position in Japan, we focused on what we refer to as "world class blue-chip
technology stocks" in all areas of the broad technology sector. Because we
expect the yen to weaken, we covered approximately half of the Fund's yen
exposure to the U.S. dollar. A weaker yen will be favorable for the Japanese
market because it will increase the value of exports in Japanese yen.
Top 5 Sectors
-------------
(as a percentage of 4/30/2000 net assets)
Industrials 19.5%
Information Technology 16.2%
Financials 15.2%
Consumer Discretionary 10.4%
Materials 7.8%
30
<PAGE>
EVERGREEN
Perpetual International Fund
Portfolio Manager Interview
What changes did you make in Asia not including Japan?
We raised the Fund's exposure in Hong Kong, where we favored companies related
to telecommunications in China and property developers. Because the Hong Kong
dollar is tied to the U.S. dollar, Hong Kong property developers have been
affected by higher U.S. interest rates. As a result, property sales have
declined, profits are weak and stocks are historically cheap. In Asia, we also
added to investments in Korea and Taiwan, where we emphasized technology stocks.
Did you make changes in the emerging markets?
We increased the Fund's investments in Mexico and Brazil to 2%, mostly in
telecommunications stocks. We also raised the Fund's commitment in Eastern
Europe and Israel to 2%.
What is your outlook?
The Federal Reserve Board's tight monetary policy and the extent to which it
slows U.S. consumer spending will be a big influence on world markets. However,
because there are autonomous economic recoveries taking place in Japan and
Continental Europe, a down turn in consumer demand in the U.S. will have fewer
negative implications for other markets than would have been the case a year
ago. As economic growth in Japan and in Continental Europe continues to improve,
these countries will be less dependent on exports to the U.S.
31
<PAGE>
EVERGREEN
Precious Metals Fund
Fund at a Glance as of April 30, 2000
"During the period, gold could not compete with the allure of the bull market
and the supremacy of the U.S. dollar."
Portfolio
Management
--------------
[PHOTO]
John Madden, CFA
Tenure: October 1995
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 4/30/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
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. The historical
returns for Classes A and Y have been adjusted to eliminate the effect of the
higher 12b-1 fees applicable to Class B. These fees are 0.25% for Class A and
1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had
not been eliminated, returns would have been lower.
All data is as of April 30, 2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
--------------------------------------------------------------------------------
Portfolio Inception Date: 1/30/1978 Class A Class B Class C Class Y
Class Inception Date 1/20/1998 1/30/1978 1/29/1998 2/29/2000
Average Annual Returns*
6 month with sales charge -23.42% -23.97% -21.50% n/a
6 month w/o sales charge -19.61% -19.97% -19.90% -19.80%
1 year with sales charge -25.27% -26.11% -23.65% n/a
1 year w/o sales charge -21.53% -22.22% -22.09% -22.06%
5 years -14.01% -14.14% -13.83% -13.33%
10 years -3.42% -3.73% -3.73% -3.10%
Since Portfolio Inception 5.68% 5.28% 5.23% -10.98%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
*Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Precious Consumer Price S & P 500 Composite Lipper Gold
Metals;B Index - US Total Return Fund Index
4/30/90 10,000 10,000 10,000 10,000
4/30/91 9,238 10,489 11,762 8,736
4/30/92 9,145 10,822 13,412 8,192
4/30/93 12,038 11,171 14,651 10,433
4/30/94 15,284 11,435 15,430 12,365
4/30/95 14,396 11,784 18,126 12,345
4/30/96 17,623 12,126 23,602 15,601
4/30/97 13,501 12,428 29,534 11,159
4/30/98 11,375 12,607 41,662 8,529
4/30/99 8,793 12,894 50,758 7,015
4/30/00 6,840 13,314 55,898 5,378
Comparison of a $10,000 investment in Evergreen Precious Metals Fund, Class B
shares2, versus a similar investment in the Standard & Poor's 500 Index (S&P
500), the Lipper Gold Fund Index (LGFI) and the Consumer Price Index (CPI).
The S&P 500 and the LGFI are unmanaged market indices which do not include
transaction costs associated with buying and selling securities or any mutual
fund expenses. 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.
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 industry may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that industry.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
32
<PAGE>
EVERGREEN
Precious Metals Fund
Portfolio Manager Interview
How did the Evergreen Precious Metals Fund perform during the six-month period?
During the six-month period ended April 30, 2000, the Fund's Class B shares
returned -19.97%. For the same period, the Standard & Poor's 500 Index and the
Lipper Gold Fund Index returned 7.19% and -20.52%, respectively. Fund returns
are before the deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $60,022,131
Number of Holdings 46
How do you describe the investment environment during the period?
In general, the investment environment for gold was negative, however, there
were flurries of optimism. One period of optimism came in the latter part of
1999, when major central bank holders of gold bullion announced they would limit
their future gold sales and leasing. Gold and gold shares jumped dramatically,
but gradually gave back most of their gains. In early February 2000, gold
rallied on news that several companies, notably Placer Dome of Canada, had
modified their hedging policies and would reduce or eliminate forward selling, a
practice detrimental to gold prices. Once again, gold's gains were short-lived.
It seems that while such developments have helped support the metal's price,
they are not as important for performance as the investment environment. During
the period, gold could not compete with the allure of the bull market and the
supremacy of the U.S. dollar. The strength of the general market and of the U.S.
dollar produced a psychology that was not conducive to good performance by
either the metal or by gold-related equities. As a result, the performance of
gold and gold shares was disappointing.
How did higher interest rates affect gold?
Higher interest rates are not good for gold, unless there is strong evidence of
inflation. So far, however, gold has not reacted much to the largely anecdotal
evidence that inflation is heating up.
Top Sectors
-----------
(as a percentage of 4/30/2000 net assets)
Materials (Metals & Mining) 96.7%
Financials 0.5%
33
<PAGE>
EVERGREEN
Precious Metals Fund
Portfolio Manager Interview
Did you make any big changes to the geographic composition of the Fund?
There were no major geographic realignments of the Fund. At 36% of net assets,
South African stocks continued to account for the largest regional weighting in
the portfolio. Assets in Australia declined slightly when Acacia Resources, a
major portfolio holding, was taken over by Anglogold. We sold our shares of
Acacia and reinvested the proceeds in North America.
Geographic Allocation
---------------------
(as a percentage of 4/30/2000 net assets)
South Africa 36.1%
Canada 36.0%
United States 19.9%
Australia 7.4%
Papua New Guinea 0.6%
Did you make any changes in major Fund holdings?
We made some significant changes in individual holdings. We began taking profits
in the Fund's largest holding, Franco-Nevada, which was affected by poor market
performance. When Franco-Nevada merged with Euro-Nevada, we reduced the Fund's
position further because we were concerned about managerial and operational
issues in the company. We added to other North American holdings, such as
Homestake, Placer Dome and Battle Mountain. We favored these companies largely
because of their policies of minimal hedging.
Top 10 Holdings
---------------
(as a percentage of 4/30/2000 net assets)
Franco Nevada Mining, Ltd. 7.6%
Newmont Mining Corp. 5.9%
Harmony Gold Mining, Ltd. 5.5%
Meridian Gold, Inc. 5.5%
Goldfields, Ltd. 5.2%
AngloGold, Ltd. 5.1%
Homestake Mining Co. 5.0%
Impala Platinum Holdings, Ltd. 4.7%
Anglo-American Platinum Corp., Ltd. 4.1%
Goldcorp, Inc., Cl. A 4.0%
How did non-gold stocks in the portfolio perform?
The Fund's non-gold holdings declined modestly from 16% to 14% of net assets.
The biggest change involved Stillwater, a long-time portfolio holding. In our
previous communication to shareholders, we reported that Stillwater had
operational difficulties in its mine in Montana. As a result, we reduced the
Fund's holdings but maintained a position in the hope that Stillwater's problems
would be remedied. There has been little improvement in Stillwater's operational
situation, and its stock price at the end of the six-month period was at about
the same level. In the interim, however, palladium prices were strong and
Stillwater's stock had a brief run--up to more than $40 a share. We sold the
majority of Stillwater shares at this higher price. The Fund's other
platinum/palladium investments have also outperformed gold stocks. Diamonds have
not been as rewarding.
34
<PAGE>
EVERGREEN
Precious Metals Fund
Portfolio Manager Interview
What is your outlook?
As an investment, gold has not been able to compete with the worldwide bull
market in stocks or the continued strength of the U.S. dollar. Gold usually
makes its best moves in times of adversity. Some sectors of the economy, such as
housing and retail sales, are slowing. There are areas, such as commodities and
wages, in which inflation may be accelerating and there are aspects of public
and private finance, such as current account balances and margin debt, which are
bothersome. The Federal Reserve Board is concerned about the pace of economic
growth and the potential for higher inflation.
This would suggest that investors should be similarly concerned. There are no
signs of recession, and the strength of the dollar does not seem to be
threatened. However, the absence of definitive warnings of problems is not
surprising, because financial shocks by their very nature are unpredictable. We
believe it is possible that some event, or events, will alter the current
atmosphere in the market. In the meantime, gold continues to be ignored, and
gold stock prices are as low as they have been in years. When the change comes,
gold will again draw investor interest. Given the oversold condition of the
industry, any reasonable amount of investor activity could result in significant
gains for gold equities.
35
<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, 2000 # ----------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 # 1995 (a) #
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 9.32 $ 7.90 $ 9.99 $ 8.46 $ 7.90 $ 8.17
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.02) (0.01) 0.14 0 (0.01) 0.05
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.70 1.44 (1.98) 1.53 0.62 (0.32)
------ ------ ------ ------ ------ ------
Total from investment
operations 1.68 1.43 (1.84) 1.53 0.61 (0.27)
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 (0.01) 0 0 (0.05) 0
Net realized gains 0 0 (0.25) 0 0 0
------ ------ ------ ------ ------ ------
Total distributions to
shareholders 0 (0.01) (0.25) 0 (0.05) 0
------ ------ ------ ------ ------ ------
Net asset value, end of
period $11.00 $ 9.32 $ 7.90 $ 9.99 $ 8.46 $ 7.90
------ ------ ------ ------ ------ ------
Total return* 18.03% 18.16% (18.89%) 18.09% 7.70% (3.30%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $9,224 $8,390 $6,195 $2,777 $1,645 $1,117
Ratios to average net
assets
Expenses** 2.15%+ 2.16% 2.04% 1.75% 1.74% 1.73%+
Net investment income
(loss) (0.29%)+ (0.09%) 1.54% (0.02%) (0.09%) 0.76%+
Portfolio turnover rate 27% 205% 380% 157% 107% 65%
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ----------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 # 1995 (a) #
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 9.01 $ 7.69 $ 9.85 $ 8.39 $ 7.85 $ 8.16
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.06) (0.08) 0.08 (0.08) (0.08) 0.01
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.65 1.41 (1.99) 1.54 0.62 (0.32)
------ ------ ------ ------ ------ ------
Total from investment
operations 1.59 1.33 (1.91) 1.46 0.54 (0.31)
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 (0.01) 0 0 0 0
Net realized gains 0 0 (0.25) 0 0 0
------ ------ ------ ------ ------ ------
Total distributions to
shareholders 0 (0.01) (0.25) 0 0 0
------ ------ ------ ------ ------ ------
Net asset value, end of
period $10.60 $ 9.01 $ 7.69 $ 9.85 $ 8.39 $ 7.85
------ ------ ------ ------ ------ ------
Total return* 17.65% 17.32% (19.89%) 17.40% 6.90% (3.80%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $3,659 $3,452 $2,970 $4,020 $2,881 $1,940
Ratios to average net
assets
Expenses** 2.90%+ 2.90% 2.78% 2.50% 2.50% 2.48%+
Net investment income
(loss) (1.03%)+ (0.97%) 0.80% (0.79%) (0.87%) 0.03%+
Portfolio turnover rate 27% 205% 380% 157% 107% 65%
</TABLE>
(a) For the ten-month period ended October 31, 1995. The Fund changed its year
end from December 31 to October 31, effective October 31, 1995.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
36
<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, 2000 # -----------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 # 1995 (a) #
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 9.02 $ 7.68 $ 9.85 $ 8.38 $7.84 $ 8.16
------ ------ ------- ------ ----- ------
Income from investment
operations
Net investment income
(loss) (0.06) (0.08) 0.05 (0.06) (0.08) 0.02
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.66 1.43 (1.97) 1.53 0.62 (0.34)
------ ------ ------- ------ ----- ------
Total from investment
operations 1.60 1.35 (1.92) 1.47 0.54 (0.32)
------ ------ ------- ------ ----- ------
Distributions to
shareholders from
Net investment income 0 (0.01) 0 0 0 0
Net realized gains 0 0 (0.25) 0 0 0
------ ------ ------- ------ ----- ------
Total distributions to
shareholders 0 (0.01) (0.25) 0 0 0
------ ------ ------- ------ ----- ------
Net asset value, end of
period $10.62 $ 9.02 $ 7.68 $ 9.85 $8.38 $ 7.84
------ ------ ------- ------ ----- ------
Total return* 17.74% 17.60% (20.00%) 17.50% 6.90% (3.90%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $1,409 $1,024 $ 577 $1,282 $ 85 $ 56
Ratios to average net
assets
Expenses** 2.90%+ 2.90% 2.78% 2.50% 2.51% 2.50%+
Net investment income
(loss) (0.96%)+ (0.96%) 0.59% (0.61%) (0.91%) 0.72%+
Portfolio turnover rate 27% 205% 380% 157% 107% 65%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April Year Ended October 31,
30, 2000 # -----------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 # 1995 (a) #
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 9.41 $ 7.96 $ 10.04 $ 8.48 $ 7.92 $ 8.17
------- ------- ------- ------- ------- ------
Income from investment
operations
Net investment income 0 0 0.16 0.03 0.01 0.05
Net realized and unrealized
gains or losses on
securities and foreign
currency related transactions 1.72 1.47 (1.98) 1.53 0.62 (0.30)
------- ------- ------- ------- ------- ------
Total from investment
operations 1.72 1.47 (1.82) 1.56 0.63 (0.25)
------- ------- ------- ------- ------- ------
Distributions to shareholders
from
Net investment income 0 (0.02) (0.01) 0 (0.07) 0
Net realized gains 0 0 (0.25) 0 0 0
------- ------- ------- ------- ------- ------
Total distributions to
shareholders 0 (0.02) (0.26) 0 (0.07) 0
------- ------- ------- ------- ------- ------
Net asset value, end of
period $ 11.13 $ 9.41 $ 7.96 $ 10.04 $ 8.48 $ 7.92
------- ------- ------- ------- ------- ------
Total return 18.28% 18.57% (18.63%) 18.40% 7.90% (3.10%)
Ratios and supplemental data
Net assets, end of period
(thousands) $64,682 $52,372 $48,953 $61,142 $28,959 $9,355
Ratios to average net assets
Expenses** 1.90%+ 1.91% 1.78% 1.50% 1.50% 1.48%+
Net investment income (loss) (0.01%)+ 0.04% 1.71% 0.25% 0.11% 0.94%+
Portfolio turnover rate 27% 205% 380% 157% 107% 65%
</TABLE>
(a) For the ten-month period ended October 31, 1995. The Fund changed its year
end from December 31 to October 31, effective October 31, 1995.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
37
<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, 2000 # -------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 (a) #
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 18.35 $ 14.95 $ 13.67 $ 11.91 $ 11.29
-------- -------- -------- -------- -------
Income from investment
operations
Net investment income
(loss) (0.04) (0.06) (0.04) (0.01) 0
Net realized and
unrealized gains on
securities and
foreign currency
related transactions 1.17 3.46 1.38 1.78 0.62
-------- -------- -------- -------- -------
Total from investment
operations 1.13 3.40 1.34 1.77 0.62
-------- -------- -------- -------- -------
Distributions to
shareholders from
Net realized gains (0.32) 0 (0.06) (0.01) 0
-------- -------- -------- -------- -------
Total distributions to
shareholders (0.32) 0 (0.06) (0.01) 0
-------- -------- -------- -------- -------
Net asset value, end of
period $ 19.16 $ 18.35 $ 14.95 $ 13.67 $ 11.91
-------- -------- -------- -------- -------
Total return* 6.21% 22.74% 9.82% 14.88% 5.50%
Ratios and supplemental
data
Net assets, end of
period (thousands) $143,319 $185,806 $142,622 $ 38,604 $12,975
Ratios to average net
assets
Expenses** 1.70%+ 1.79% 1.85% 1.91% 1.75%+
Net investment income
(loss) (0.37%)+ (0.37%) (0.25%) (0.05%) 0.10%+
Portfolio turnover rate 20% 33% 16% 29% 20%
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # -------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 (a) #
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 17.92 $ 14.70 $ 13.52 $ 11.87 $ 11.29
-------- -------- -------- -------- -------
Income from investment
operations
Net investment loss (0.11) (0.19) (0.16) (0.11) (0.02)
Net realized and
unrealized gains on
securities and
foreign currency
related transactions 1.15 3.41 1.40 1.77 0.60
-------- -------- -------- -------- -------
Total from investment
operations 1.04 3.22 1.24 1.66 0.58
-------- -------- -------- -------- -------
Distributions to
shareholders from
Net realized gains (0.32) 0 (0.06) (0.01) 0
-------- -------- -------- -------- -------
Total distributions to
shareholders (0.32) 0 (0.06) (0.01) 0
-------- -------- -------- -------- -------
Net asset value, end of
period $ 18.64 $ 17.92 $ 14.70 $ 13.52 $ 11.87
-------- -------- -------- -------- -------
Total return* 5.85% 21.90% 9.19% 14.01% 5.10%
Ratios and supplemental
data
Net assets, end of
period (thousands) $228,414 $207,433 $166,556 $134,375 $41,948
Ratios to average net
assets
Expenses** 2.44%+ 2.58% 2.61% 2.66% 2.50%+
Net investment loss (1.18%)+ (1.16%) (1.09%) (0.83%) (0.68%)+
Portfolio turnover rate 20% 33% 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.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
38
<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, 2000 # -------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 (a) #
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $17.89 $14.67 $13.51 $11.86 $11.29
------ ------ ------ ------ ------
Income from investment
operations
Net investment loss (0.11) (0.19) (0.16) (0.11) (0.02)
Net realized and
unrealized gains on
securities and foreign
currency related
transactions 1.15 3.41 1.38 1.77 0.59
------ ------ ------ ------ ------
Total from investment
operations 1.04 3.22 1.22 1.66 0.57
------ ------ ------ ------ ------
Distributions to
shareholders from
Net realized gains (0.32) 0 (0.06) (0.01) 0
------ ------ ------ ------ ------
Total distributions to
shareholders (0.32) 0 (0.06) (0.01) 0
------ ------ ------ ------ ------
Net asset value, end of
period $18.61 $17.89 $14.67 $13.51 $11.86
------ ------ ------ ------ ------
Total return* 5.86% 21.95% 9.05% 14.02% 5.00%
Ratios and supplemental
data
Net assets, end of
period (thousands) $5,936 $4,486 $3,875 $2,386 $ 554
Ratios to average net
assets
Expenses** 2.44%+ 2.57% 2.61% 2.65% 2.50%+
Net investment loss (1.18%)+ (1.15%) (1.06%) (0.80%) (0.67%)+
Portfolio turnover rate 20% 33% 16% 29% 20%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 #
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 18.54 $ 15.05 $ 13.71 $ 11.91 $ 10.00
------- ------- ------- ------- -------
Income from investment
operations
Net investment income
(loss) (0.02) (0.03) (0.01) 0.03 0.07
Net realized and
unrealized gains on
securities and foreign
currency related
transactions 1.18 3.52 1.41 1.78 1.88
------- ------- ------- ------- -------
Total from investment
operations 1.16 3.49 1.40 1.81 1.95
------- ------- ------- ------- -------
Distributions to
shareholders from
Net investment income 0 0 0 0 (0.04)
Net realized gains (0.32) 0 (0.06) (0.01) 0
------- ------- ------- ------- -------
Total distributions to
shareholders (0.32) 0 (0.06) (0.01) (0.04)
------- ------- ------- ------- -------
Net asset value, end of
period $ 19.38 $ 18.54 $ 15.05 $ 13.71 $ 11.91
------- ------- ------- ------- -------
Total return 6.31% 23.19% 10.23% 15.22% 19.60%
Ratios and supplemental
data
Net assets, end of
period (thousands) $44,569 $47,043 $41,873 $35,461 $18,607
Ratios to average net
assets
Expenses** 1.44%+ 1.57% 1.61% 1.64% 1.47%+
Net investment income
(loss) (0.17%)+ (0.16%) (0.09%) 0.23% 0.62%+
Portfolio turnover rate 20% 33% 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.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
39
<PAGE>
EVERGREEN
Global Opportunities Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31, Year Ended September 30,
April 30, 2000 # ------------------------------ -----------------------------
(Unaudited) 1999 # 1998 # 1997 (a) # 1997 # 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 26.08 $ 19.26 $ 23.53 $ 24.90 $ 24.56 $ 23.43 $ 19.42
------- ------- ------- ------- -------- -------- -------
Income from investment
operations
Net investment income
(loss) (0.15) (0.18) (0.12) 0.02 (0.17) (0.06) (0.16)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 9.40 8.22 (2.62) (1.39) 1.76 1.19 4.17
------- ------- ------- ------- -------- -------- -------
Total from investment
operations 9.25 8.04 (2.74) (1.37) 1.59 1.13 4.01
------- ------- ------- ------- -------- -------- -------
Distributions to
shareholders from
Net realized gains (4.90) (1.22) (1.53) 0 (1.25) 0 0
------- ------- ------- ------- -------- -------- -------
Total distributions to
shareholders (4.90) (1.22) (1.53) 0 (1.25) 0 0
------- ------- ------- ------- -------- -------- -------
Net asset value, end of
period $ 30.43 $ 26.08 $ 19.26 $ 23.53 $ 24.90 $ 24.56 $ 23.43
------- ------- ------- ------- -------- -------- -------
Total return* 39.91% 44.04% (12.42%) (5.50%) 6.95% 4.82% 20.65%
Ratios and supplemental
data
Net assets, end of
period (thousands) $68,377 $53,533 $58,944 $98,031 $113,477 $250,427 $94,679
Ratios to average net
assets
Expenses** 1.64%+ 1.77% 1.81% 1.87%+ 1.67% 1.62% 1.83%
Net investment loss (0.97%)+ (0.81%) (0.54%) (1.40%)+ (0.69%) (0.53%) (0.83%)
Portfolio turnover rate 106% 136% 127% 7% 72% 67% 35%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31, Year Ended September 30,
April 30, 2000 # -------------------------------- ------------------------------
(Unaudited) 1999 # 1998 # 1997 (a) # 1997 # 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 24.65 $ 18.39 $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20
-------- -------- -------- -------- -------- -------- --------
Income from investment
operations
Net investment loss (0.24) (0.32) (0.28) (0.06) (0.32) (0.21) (0.25)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 8.80 7.80 (2.49) (1.28) 1.68 1.13 4.05
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations 8.56 7.48 (2.77) (1.34) 1.36 0.92 3.80
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from
Net realized gains (4.90) (1.22) (1.53) 0 (1.25) 0 0
-------- -------- -------- -------- -------- -------- --------
Total distributions to
shareholders (4.90) (1.22) (1.53) 0 (1.25) 0 0
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 28.31 $ 24.65 $ 18.39 $ 22.69 $ 24.03 $ 23.92 $ 23.00
-------- -------- -------- -------- -------- -------- --------
Total return* 39.34% 43.02% (13.06%) (5.58%) 6.14% 4.00% 19.79%
Ratios and supplemental
data
Net assets, end of
period (thousands) $157,705 $111,267 $122,147 $216,471 $238,936 $385,839 $238,320
Ratios to average net
assets
Expenses** 2.39%+ 2.53% 2.55% 2.62%+ 2.46% 2.40% 2.58%
Net investment loss (1.72%)+ (1.57%) (1.30%) (2.15%)+ (1.45%) (1.37%) (1.59%)
Portfolio turnover rate 106% 136% 127% 7% 72% 67% 35%
</TABLE>
(a) For the one-month period ended October 31, 1997. The Fund changed its fis-
cal year end from September 30 to October 31, effective October 31, 1997.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
40
<PAGE>
EVERGREEN
Global Opportunities Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31, Year Ended September 30,
April 30, 2000 # ------------------------------ ----------------------------
(Unaudited) 1999 # 1998 # 1997 (a) # 1997 # 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 24.70 $ 18.43 $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26
------- ------- ------- ------- ------- -------- -------
Income from investment
operations
Net investment loss (0.25) (0.32) (0.28) (0.07) (0.33) (0.24) (0.27)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 8.85 7.81 (2.49) (1.27) 1.68 1.17 4.05
------- ------- ------- ------- ------- -------- -------
Total from investment
operations 8.60 7.49 (2.77) (1.34) 1.35 0.93 3.78
------- ------- ------- ------- ------- -------- -------
Distributions to
shareholders from
Net realized gains (4.90) (1.22) (1.53) 0 (1.25) 0 0
------- ------- ------- ------- ------- -------- -------
Total distributions to
shareholders (4.90) (1.22) (1.53) 0 (1.25) 0 0
------- ------- ------- ------- ------- -------- -------
Net asset value, end of
period $ 28.40 $ 24.70 $ 18.43 $ 22.73 $ 24.07 $ 23.97 $ 23.04
------- ------- ------- ------- ------- -------- -------
Total return* 39.44% 42.98% (13.03%) (5.57%) 6.08% 4.04% 19.63%
Ratios and supplemental
data
Net assets, end of
period (thousands) $30,252 $19,963 $23,043 $43,869 $49,524 $124,549 $86,339
Ratios to average net
assets
Expenses** 2.39%+ 2.53% 2.56% 2.62%+ 2.45% 2.40% 2.58%
Net investment loss (1.71%)+ (1.57%) (1.31%) (2.15%)+ (1.48%) (1.38%) (1.59%)
Portfolio turnover rate 106% 136% 127% 7% 72% 67% 35%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ---------------------------- Period Ended
(Unaudited) 1999 # 1998 # 1997 (a) # September 30, 1997 (b)
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $26.19 $19.58 $23.90 $25.24 $23.05
------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.09) (0.20) 0.09 0 (0.28)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 9.43 8.03 (2.88) (1.34) 2.47
------ ------ ------ ------ ------
Total from investment
operations 9.34 7.83 (2.79) (1.34) 2.19
------ ------ ------ ------ ------
Distributions to
shareholders from
Net realized gains (4.90) (1.22) (1.53) 0 0
------ ------ ------ ------ ------
Total distributions to
shareholders (4.90) (1.22) (1.53) 0 0
------ ------ ------ ------ ------
Net asset value, end of
period $30.63 $26.19 $19.58 $23.90 $25.24
------ ------ ------ ------ ------
Total return 40.11% 42.20% (12.45%) (5.31%) 9.50%
Ratios and supplemental
data
Net assets, end of
period (thousands) $1,058 $ 231 $ 31 $ 0 $ 0
Ratios to average net
assets
Expenses** 1.37%+ 1.72% 1.49% 1.62%+ 1.42%+
Net investment income
(loss) (0.60%)+ (0.49%) 0.17% (1.62%)+ (1.22%)+
Portfolio turnover rate 106% 136% 127% 7% 72%
</TABLE>
(a) For the one-month period ended October 31, 1997. The Fund changed its fis-
cal 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.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
41
<PAGE>
EVERGREEN
International Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # --------------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $ 8.72 $ 7.47 $ 6.88
------ ----------- ----------
Income from investment operations
Net investment income 0.01 0.06 0.10
Net realized and unrealized gains
on securities, futures contracts
and foreign currency
related transactions 0.87 1.19 0.49
------ ----------- ----------
Total from investment operations 0.88 1.25 0.59
------ ----------- ----------
Distributions to shareholders
from
Net investment income (0.11) 0 0
Net realized gains (0.41) 0 0
------ ----------- ----------
Total distributions to
shareholders (0.52) 0 0
------ ----------- ----------
Net asset value, end of period $ 9.08 $ 8.72 $ 7.47
------ ----------- ----------
Total return* 10.38% 16.73% 8.58%
Ratios and supplemental data
Net assets, end of period
(millions) $ 143 $ 128 $ 129
Ratios to average net assets
Expenses** 1.11%+ 1.22% 1.53%+
Net investment income (loss) 0.23%+ 0.77% 1.08%+
Portfolio turnover rate 76% 131% 155%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ----------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 8.62 $ 7.43 $ 8.65 $ 7.69 $ 7.11 $7.77
------ ------ ------ ------ ------ -----
Income from investment
operations
Net investment income
(loss) $(0.03) 0 (0.02) (0.05) (0.02) 0.07
Net realized and
unrealized gains on
securities, futures
contracts and
foreign currency
related transactions 0.86 1.19 0.67 1.27 0.75 0.05
------ ------ ------ ------ ------ -----
Total from investment
operations 0.83 1.19 0.65 1.22 0.73 0.12
------ ------ ------ ------ ------ -----
Distributions to
shareholders from
Net investment income (0.06) 0 (0.33) (0.10) (0.10) (0.04)
Net realized gains (0.41) 0 (1.54) (0.16) (0.05) (0.74)
------ ------ ------ ------ ------ -----
Total distributions to
shareholders (0.47) 0 (1.87) (0.26) (0.15) (0.78)
------ ------ ------ ------ ------ -----
Net asset value, end of
period $ 8.98 $ 8.62 $ 7.43 $ 8.65 $ 7.69 $7.11
------ ------ ------ ------ ------ -----
Total return* 9.86% 16.02% 9.35% 15.69% 10.47% 2.19%
Ratios and supplemental
data
Net assets, end of
period (millions) $ 55 $ 64 $ 75 $ 152 $ 148 $ 129
Ratios to average net
assets
Expenses** 1.87%+ 1.97% 2.30% 2.39% 2.43% 2.57%
Net investment income
(loss) (0.56%)+ 0.01% (0.13%) (0.49%) (0.21%) 0.88%
Portfolio turnover rate 76% 131% 155% 101% 52% 76%
</TABLE>
(a) For the period from January 20, 1998 (commencement of class operations) to
October 31, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
42
<PAGE>
EVERGREEN
International Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ----------------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of
period $8.62 $ 7.43 $ 7.64
----- ----------- -----------
Income from investment
operations
Net investment income (loss) (0.02) 0 0.03
Net realized and unrealized
gains or losses on
securities, futures contracts
and foreign currency related
transactions 0.86 1.19 (0.24)
----- ----------- -----------
Total from investment
operations 0.84 1.19 (0.21)
----- ----------- -----------
Distributions to shareholders
from
Net investment income (0.06) 0 0
Net realized gains (0.41) 0 0
----- ----------- -----------
Total distributions to
shareholders (0.47) 0 0
----- ----------- -----------
Net asset value, end of period $8.99 $ 8.62 $ 7.43
----- ----------- -----------
Total return* 9.98% 16.02% (2.75%)
Ratios and supplemental data
Net assets, end of period
(millions) $ 2 $ 2 $ 3
Ratios to average net assets
Expenses** 1.86%+ 1.97% 2.19%+
Net investment income (loss) (0.53%)+ (0.02%) 0.44%+
Portfolio turnover rate 76% 131% 155%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ---------------------------
(Unaudited) 1999 # 1998 (b) #
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $8.73 $ 7.45 $ 7.73
----- ----------- -----------
Income from investment
operations
Net investment income 0.02 0.08 0.07
Net realized and unrealized
gains or losses on securities,
futures contracts and foreign
currency related transactions 0.87 1.20 (0.35)
----- ----------- -----------
Total from investment
operations 0.89 1.28 (0.28)
----- ----------- -----------
Distributions to shareholders
from
Net investment income (0.14) 0 0
Net realized gains (0.41) 0 0
----- ----------- -----------
Total distributions to
shareholders (0.55) 0 0
----- ----------- -----------
Net asset value, end of period $9.07 $ 8.73 $ 7.45
----- ----------- -----------
Total return 10.40% 17.18% (3.62%)
Ratios and supplemental data
Net assets, end of period
(millions) $ 593 $ 506 $ 428
Ratios to average net assets
Expenses** 0.87%+ 0.97% 1.18%+
Net investment income 0.47%+ 1.02% 1.13%+
Portfolio turnover rate 76% 131% 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.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
43
<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, 2000 # ------------------------------------------
(Unaudited) 1999 # 1998 # 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 8.38 $ 7.56 $13.15 $ 11.13 $ 9.86 $ 10.55
------ ------ ------ ------- ------- -------
Income from investment
operations
Net investment income 0.04 0.08 0.14 0.02 0.39 0.44
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 2.02 0.74 (2.87) 2.10 1.24 (0.81)
------ ------ ------ ------- ------- -------
Total from investment
operations 2.06 0.82 (2.73) 2.12 1.63 (0.37)
------ ------ ------ ------- ------- -------
Distributions to
shareholders from
Net investment income 0 0 0 (0.10) (0.36) (0.30)
Net realized gains 0 0 (2.86) 0 0 (0.02)
------ ------ ------ ------- ------- -------
Total distributions to
shareholders 0 0 (2.86) (0.10) (0.36) (0.32)
------ ------ ------ ------- ------- -------
Net asset value, end of
period $10.44 $ 8.38 $ 7.56 $ 13.15 $ 11.13 $ 9.86
------ ------ ------ ------- ------- -------
Total return* 24.58% 10.85% (27.18%) 19.18% 16.74% (3.35%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $5,498 $4,853 $6,483 $13,621 $11,021 $14,333
Ratios to average net
assets
Expenses** 1.80%+ 1.95% 1.86% 1.69% 1.83% 1.86%
Net investment income 0.72%+ 1.05% 1.33% 0.20% 3.05% 4.02%
Portfolio turnover rate 14% 238% 197% 105% 112% 57%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ---------------------------------------------
(Unaudited) 1999 # 1998 # 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $ 8.07 $ 7.34 $ 12.91 $ 10.98 $ 9.76 $ 10.49
------- ------- ------- ------- ------- -------
Income from investment operations
Net investment income (loss) 0 0.01 0.06 (0.08) 0.23 0.32
Net realized and unrealized gains or losses on
securities and foreign currency related transactions 1.95 0.72 (2.77) 2.09 1.30 (0.75)
------- ------- ------- ------- ------- -------
Total from investment operations 1.95 0.73 (2.71) 2.01 1.53 (0.43)
------- ------- ------- ------- ------- -------
Distributions to shareholders from
Net investment income 0 0 0 (0.08) (0.31) (0.28)
Net realized gains 0 0 (2.86) 0 0 (0.02)
------- ------- ------- ------- ------- -------
Total distributions to shareholders 0 0 (2.86) (0.08) (0.31) (0.30)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.02 $ 8.07 $ 7.34 $ 12.91 $ 10.98 $ 9.76
------- ------- ------- ------- ------- -------
Total return* 24.16% 9.95% (27.60%) 18.40% 15.82% (4.00%)
Ratios and supplemental data
Net assets, end of period (thousands) $20,895 $20,752 $32,046 $75,271 $79,026 $97,165
Ratios to average net assets
Expenses** 2.55%+ 2.68% 2.61% 2.50% 2.59% 2.61%
Net investment income (loss) (0.02%)+ 0.16% 0.60% (0.51%) 2.30% 3.27%
Portfolio turnover rate 14% 238% 197% 105% 112% 57%
</TABLE>
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
44
<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, 2000 # ------------------------------------------
(Unaudited) 1999 # 1998 # 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 8.06 $ 7.32 $12.92 $ 10.99 $ 9.77 $ 10.50
------ ------ ------ ------- ------ -------
Income from investment
operations
Net investment income
(loss) 0 0.01 0.05 (0.07) 0.23 0.32
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 1.94 0.73 (2.79) 2.08 1.30 (0.75)
------ ------ ------ ------- ------ -------
Total from investment
operations 1.94 0.74 (2.74) 2.01 1.53 (0.43)
------ ------ ------ ------- ------ -------
Distributions to
shareholders from
Net investment income 0 0 0 (0.08) (0.31) (0.28)
Net realized gains 0 0 (2.86) 0 0 (0.02)
------ ------ ------ ------- ------ -------
Total distributions to
shareholders 0 0 (2.86) (0.08) (0.31) (0.30)
------ ------ ------ ------- ------ -------
Net asset value, end of
period $10.00 $ 8.06 $ 7.32 $ 12.92 $10.99 $ 9.77
------ ------ ------ ------- ------ -------
Total return* 24.07% 10.11% (27.86%) 18.38% 15.80% (4.00%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $4,197 $3,717 $4,725 $10,961 $8,791 $11,242
Ratios to average net
assets
Expenses** 2.55%+ 2.65% 2.61% 2.47% 2.59% 2.61%
Net investment income
(loss) (0.01%)+ 0.11% 0.54% (0.52%) 2.26% 3.27%
Portfolio turnover rate 14% 238% 197% 105% 112% 57%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # -------------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 8.42 $ 7.58 $ 10.94
------ ---------- -----------
Income from investment operations
Net investment income 0 0.06 0.07
Net realized and unrealized gains
or losses on securities and
foreign currency
related transactions 2.08 0.78 (3.43)
------ ---------- -----------
Total from investment operations 2.08 0.84 (3.36)
------ ---------- -----------
Net asset value, end of period $10.50 $ 8.42 $ 7.58
------ ---------- -----------
Total return 24.70% 11.08% (30.71%)
Ratios and supplemental data
Net assets, end of period
(thousands) $ 375 $ 270 $ 28
Ratios to average net assets
Expenses** 1.52%+ 1.58% 1.49%+
Net investment income 0.94%+ 0.71% 1.33%+
Portfolio turnover rate 14% 238% 197%
</TABLE>
(a) For the period from March 30, 1998 (commencement of class operations) to
October 31, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
45
<PAGE>
EVERGREEN
Perpetual Global Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended One-Month Year Ended September 30,
April 30, 2000 # Period Ended --------------------------------------------
(Unaudited) October 31, 1999 (a) 1999 # 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES (b)
Net asset value,
beginning of period $ 23.86 $ 23.09 $ 18.92 $ 20.94 $ 17.86 $ 15.88 $14.23
------- ------- ------- ------- ------- ------- ------
Income from investment
operations
Net investment income
(loss) (0.09) (0.03) 0.02 (0.03) 0.04 (0.04) 0.05
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 2.45 0.80 5.74 (0.97) 3.67 2.82 1.60
------- ------- ------- ------- ------- ------- ------
Total from investment
operations 2.36 0.77 5.76 (1.00) 3.71 2.78 1.65
------- ------- ------- ------- ------- ------- ------
Distributions to
shareholders from
Net realized gains (3.35) 0 (1.59) (1.02) (0.63) (0.80) 0
------- ------- ------- ------- ------- ------- ------
Total distributions to
shareholders (3.35) 0 (1.59) (1.02) (0.63) (0.80) 0
------- ------- ------- ------- ------- ------- ------
Net asset value, end of
period $ 22.87 $ 23.86 $ 23.09 $ 18.92 $ 20.94 $ 17.86 $15.88
------- ------- ------- ------- ------- ------- ------
Total return* 10.84% 3.33% 32.49% (4.97%) 21.59% 18.40% 11.60%
Ratios and supplemental
data
Net assets, end of
period (thousands) $89,181 $86,341 $88,743 $59,012 $46,556 $13,098 $6,854
Ratios to average net
assets
Expenses** 1.94%+ 2.16%+ 1.84% 1.75% 1.89% 1.95% 2.06%
Net investment income
(loss) (0.79%)+ (1.49%)+ 0.11% (0.01%) 0.07% (0.21%) 0.26%
Portfolio turnover rate 90% 13% 144% 162% 128% 130% 155%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 # Period Ended
(Unaudited) October 31, 1999 (c)
<S> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $23.87 $22.91
------ ------
Income from investment operations
Net investment income (loss) (0.16) 0
Net realized and unrealized gains on
securities and foreign currency related
transactions 2.41 0.96
------ ------
Total from investment operations 2.25 0.96
------ ------
Distributions to shareholders from
Net realized gains (3.35) 0
------ ------
Total distributions to shareholders (3.35) 0
------ ------
Net asset value, end of period $22.77 $23.87
------ ------
Total return* 10.31% 4.19%
Ratios and supplemental data
Net assets, end of period (thousands) $2,443 $1,048
Ratios to average net assets
Expenses** 2.71%+ 2.91%+
Net investment loss (1.41%)+ (2.24%)+
Portfolio turnover rate 90% 13%
</TABLE>
(a) For the one-month period ended October 31, 1999. The Fund changed its fis-
cal year end from September 30 to October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of the Evergreen Perpetual Global Fund. Class B shares of Mentor
Perpetual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
(c) For the period from October 18, 1999 (commencement of class operations) to
October 31, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
46
<PAGE>
EVERGREEN
Perpetual Global Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended One-Month Year Ended September 30,
April 30, 2000 # Period Ended ------------------------------------------------
(Unaudited) October 31, 1999 (a) 1999 # 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS C SHARES (b)
Net asset value,
beginning of period $ 22.71 $ 21.99 $ 18.21 $ 20.32 $ 17.46 $ 15.67 $ 14.15
-------- -------- -------- ------- ------- ------- -------
Income from investment
operations
Net investment loss (0.17) (0.03) (0.21) (0.12) (0.02) (0.05) (0.05)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 2.31 0.75 5.58 (0.97) 3.51 2.64 1.57
-------- -------- -------- ------- ------- ------- -------
Total from investment
operations 2.14 0.72 5.37 (1.09) 3.49 2.59 1.52
-------- -------- -------- ------- ------- ------- -------
Distributions to
shareholders from
Net realized gains (3.35) 0 (1.59) (1.02) (0.63) (0.80) 0
-------- -------- -------- ------- ------- ------- -------
Total distributions to
shareholders (3.35) 0 (1.59) (1.02) (0.63) (0.80) 0
-------- -------- -------- ------- ------- ------- -------
Net asset value, end of
period $ 21.50 $ 22.71 $ 21.99 $ 18.21 $ 20.32 $ 17.46 $ 15.67
-------- -------- -------- ------- ------- ------- -------
Total return* 10.36% 3.27% 31.54% (5.65%) 20.74% 17.39% 10.74%
Ratios and supplemental
data
Net assets, end of
period (thousands) $144,581 $133,075 $128,192 $99,277 $89,030 $42,131 $12,667
Ratios to average net
assets
Expenses** 2.69%+ 2.91%+ 2.58% 2.50% 2.64% 2.70% 2.72%
Net investment loss (1.53%)+ (2.24%)+ (0.67%) (0.77%) (0.68%) (0.91%) (0.40%)
Portfolio turnover rate 90% 13% 144% 162% 128% 130% 155%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended One-Month Year Ended September 30,
April 30, 2000 # Period Ended ---------------------------
(Unaudited) October 31, 1999 (a) 1999 # 1998 (c)
<S> <C> <C> <C> <C>
CLASS Y SHARES (b)
Net asset value,
beginning of period $23.99 $23.21 $ 18.96 $ 18.81
------ ------ ------------ ------------
Income from investment
operations
Net investment income
(loss) (0.05) (0.02) 0.09 0
Net realized and
unrealized gains on
securities and foreign
currency related
transactions 2.46 0.80 5.75 0.30
------ ------ ------------ ------------
Total from investment
operations 2.41 0.78 5.84 0.30
------ ------ ------------ ------------
Distributions to
shareholders from
Net realized gains (3.35) 0 (1.59) (0.15)
------ ------ ------------ ------------
Total distributions to
shareholders (3.35) 0 (1.59) (0.15)
------ ------ ------------ ------------
Net asset value, end of
period $23.05 $23.99 $ 23.21 $ 18.96
------ ------ ------------ ------------
Total return 11.01% 3.36% 32.87% 1.60%
Ratios and supplemental
data
Net assets, end of
period (thousands) $ 14 $ 1 $ 1 $ 1
Ratios to average net
assets
Expenses** 1.65%+ 1.83%+ 1.52% 1.50%+
Net investment income
(loss) (0.40%)+ (0.87%)+ 0.40% (0.02%)+
Portfolio turnover rate 90% 13% 144% 162%
</TABLE>
(a) For the one-month period ended October 31, 1999. The Fund changed its fis-
cal year end from September 30 to October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of the Evergreen Perpetual Global Fund. Class B shares of Mentor
Perpetual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
(c) For the period from November 19, 1997 (commencement of class operations) to
September 30, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
47
<PAGE>
EVERGREEN
Perpetual International Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ----------------------------
(Unaudited) 1999 (c) # 1998 # 1997 (a)
<S> <C> <C> <C> <C>
CLASS A SHARES (b)
Net asset value, beginning of
period $ 18.41 $ 14.65 $ 13.83 $ 12.53
-------- ------- ------- -------
Income from investment
operations
Net investment income (loss) (0.05) 0.07 0.11 0.01
Net realized and unrealized
gains on securities and
foreign currency
related transactions 2.06 3.69 0.91 1.29
-------- ------- ------- -------
Total from investment
operations 2.01 3.76 1.02 1.30
-------- ------- ------- -------
Distributions to shareholders
from
Net investment income 0 0 (0.03) 0
Net realized gains (1.92) 0 (0.03) 0
Tax return on capital 0 0 (0.14) 0
-------- ------- ------- -------
Total distributions to
shareholders (1.92) 0 (0.20) 0
-------- ------- ------- -------
Net asset value, end of period $ 18.50 $ 18.41 $ 14.65 $ 13.83
-------- ------- ------- -------
Total return* 11.71% 25.67% 7.43% 10.38%
Ratios and supplemental data
Net assets, end of period
(thousands) $120,879 $93,578 $62,782 $33,213
Ratios to average net assets
Expenses** 1.83%+ 1.80% 1.35% 1.35%+
Net investment income (loss) (0.53%)+ 0.42% 0.96% 0.71%+
Portfolio turnover rate 70% 118% 120% 107%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 # Period Ended
(Unaudited) October 31, 1999 (d) #
<S> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $18.55 $17.88
------ ------
Income from investment operations
Net investment loss (0.11) (0.01)
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions 2.05 0.68
------ ------
Total from investment operations 1.94 0.67
------ ------
Distributions to shareholders from
Net realized gains (1.92) 0
------ ------
Total distributions to shareholders (1.92) 0
------ ------
Net asset value, end of period $18.57 $18.55
------ ------
Total return* 11.20% 3.75%
Ratios and supplemental data
Net assets, end of period (thousands) $4,487 $ 248
Ratios to average net assets
Expenses** 2.59%+ 2.56%+
Net investment loss (1.15%)+ (0.36%)+
Portfolio turnover rate 70% 118%
</TABLE>
(a) For the period from December 27, 1996 (commencement of class operations) to
October 31, 1997.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual International
Portfolio Class A, Class B and Class Y shares became owners of that number
of full and fractional shares of Class A, Class C and Class Y shares, re-
spectively, of Evergreen Perpetual International Fund. Class B shares of
Mentor Perpetual International Portfolio were redesignated as Class C
shares of Evergreen Perpetual International Fund.
(c) As a result of the conversion of Mentor Perpetual International Portfolio
to Evergreen Perpetual International Fund, the shareholders of Mentor Per-
petual International Portfolio, Class E, became owners of that number of
full and fractional shares of Evergreen Perpetual International Fund, Class
A, having a net asset value of their shares immediately prior to the con-
version of shares.
(d) For the period from October 18, 1999 (commencement of class operations) to
October 31, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
48
<PAGE>
EVERGREEN
Perpetual International Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # -----------------------------
(Unaudited) 1999 # 1998 # 1997 (a) #
<S> <C> <C> <C> <C>
CLASS C SHARES (b)
Net asset value, beginning of
period $ 18.11 $ 14.52 $ 13.81 $ 12.53
------- ------- ------- -------
Income from investment
operations
Net investment income (loss) (0.12) (0.06) 0.03 0
Net realized and unrealized
gains on securities and
foreign currency related
transactions 2.03 3.65 0.88 1.28
------- ------- ------- -------
Total from investment
operations 1.91 3.59 0.91 1.28
------- ------- ------- -------
Distributions to shareholders
from
Net investment income 0 0 (0.03) 0
Net realized gains (1.92) 0 (0.03) 0
Tax return on capital 0 0 (0.14) 0
------- ------- ------- -------
Total distributions to
shareholders (1.92) 0 (0.20) 0
------- ------- ------- -------
Net asset value, end of period $ 18.10 $ 18.11 $ 14.52 $ 13.81
------- ------- ------- -------
Total return* 11.32% 24.72% 6.64% 10.22%
Ratios and supplemental data
Net assets, end of period
(thousands) $81,702 $60,544 $42,354 $19,371
Ratios to average net assets
Expenses** 2.58%+ 2.56% 2.10% 2.10%+
Net investment income (loss) (1.27%)+ (0.36%) 0.21% 0.04%+
Portfolio turnover rate 70% 118% 120% 107%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 (c) #
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES (b)
Net asset value,
beginning of period $18.56 $14.74 $ 13.89 $ 12.12 $12.50
------ ------ ------- ------- ------
Income from investment
operations
Net investment income
(loss) (0.03) 0.10 0.27 0.15 0.04
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 2.08 3.72 0.79 1.67 (0.42)
------ ------ ------- ------- ------
Total from investment
operations 2.05 3.82 1.06 1.82 (0.38)
------ ------ ------- ------- ------
Distributions to
shareholders from
Net investment income 0 0 (0.02) (0.05) 0
Net realized gains (1.92) 0 (0.05) 0 0
Tax return on capital 0 0 (0.14) 0 0
------ ------ ------- ------- ------
Total distributions to
shareholders (1.92) 0 (0.21) (0.05) 0
------ ------ ------- ------- ------
Net asset value, end of
period $18.69 $18.56 $ 14.74 $ 13.89 $12.12
------ ------ ------- ------- ------
Total return 11.84% 25.92% 7.69% 15.07% (3.04%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $3,024 $6,572 $10,979 $16,110 $8,741
Ratios to average net
assets
Expenses** 1.59%+ 1.55% 1.10% 1.10% 1.10%+
Net investment income
(loss) (0.33%)+ 0.64% 1.21% 1.20% 0.89%+
Portfolio turnover rate 70% 118% 120% 107% 59%
</TABLE>
(a) For the period from December 27, 1996 (commencement of class operations) to
October 31, 1997.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual International
Portfolio Class A, Class B and Class Y shares became owners of that number
of full and fractional shares of Class A, Class C and Class Y shares, re-
spectively, of Evergreen Perpetual International Fund. Class B shares of
Mentor Perpetual International Fund. Class B shares of Mentor Perpetual In-
ternational Portfolio were redesignated as Class C shares of Evergreen Per-
petual International Fund.
(c) For the period from May 29, 1996 (commencement of class operations) to Oc-
tober 31, 1996.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
49
<PAGE>
EVERGREEN
Precious Metals Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ---------------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $ 11.88 $ 11.64 $ 12.45
------- ----------- -----------
Income from investment
operations
Net investment income (loss) 0.01 (0.01) (0.01)
Net realized and unrealized
gains or losses on securities
and foreign currency
related transactions (2.34) 0.25 (0.80)
------- ----------- -----------
Total from investment
operations (2.33) 0.24 (0.81)
------- ----------- -----------
Net asset value, end of period $ 9.55 $ 11.88 $ 11.64
------- ----------- -----------
Total return* (19.61%) 2.06% (6.51%)
Ratios and supplemental data
Net assets, end of period
(thousands) $52,943 $ 69,387 $ 83,431
Ratios to average net assets
Expenses** 2.12%+ 2.01% 2.01%+
Net investment income (loss) 0.14%+ (0.07%) (0.12%)+
Portfolio turnover rate 21% 33% 44%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31, Year Ended February 28,
April 30, 2000 # ------------------------------ -------------------------
(Unaudited) 1999 # 1998 # 1997 (b) # 1997 1996
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $11.72 $ 11.58 $ 15.87 $ 23.94 $ 26.35 $ 19.30
------ ------- ------- -------- ----------- -----------
Income from investment
operations
Net investment loss (0.06) (0.10) (0.19) (0.14) (0.26) (0.25)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (2.28) 0.24 (3.29) (7.93) (1.16) 7.30
------ ------- ------- -------- ----------- -----------
Total from investment
operations (2.34) 0.14 (3.48) (8.07) (1.42) 7.05
------ ------- ------- -------- ----------- -----------
Distributions to
shareholders from
Net investment income 0 0 0 0 0 0
Net realized gains 0 0 (0.81) 0 (0.99) 0
------ ------- ------- -------- ----------- -----------
Total distributions to
shareholders 0 0 (0.81) 0 (0.99) 0
------ ------- ------- -------- ----------- -----------
Net asset value, end of
period $ 9.38 $ 11.72 $ 11.58 $ 15.87 $ 23.94 $ 26.35
------ ------- ------- -------- ----------- -----------
Total return* (19.97%) 1.21% (22.60%) (33.71%) (5.16%) 36.53%
Ratios and supplemental
data
Net assets, end of
period (thousands) $6,882 $13,781 $25,765 $111,173 $ 190,108 $ 217,270
Ratios to average net
assets
Expenses** 2.85%+ 2.76% 2.72% 2.48%+ 2.33% 2.28%
Net investment loss (0.91%)+ (0.94%) (1.52%) (1.04%)+ (1.08%) (1.08%)
Portfolio turnover rate 21% 33% 44% 19% 41% 39%
</TABLE>
(a) For the period from January 20, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the eight-month period ended October 31, 1997. The Fund changed its
fiscal year end from February 28 to October 31, effective October 31, 1997.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
50
<PAGE>
EVERGREEN
Precious Metals Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 2000 # ---------------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of
period $11.71 $ 11.58 $ 13.65
------ ----------- -----------
Income from investment
operations
Net investment loss (0.06) (0.09) (0.14)
Net realized and unrealized
gains or losses on securities
and foreign currency related
transactions (2.27) 0.22 (1.93)
------ ----------- -----------
Total from investment
operations (2.33) 0.13 (2.07)
------ ----------- -----------
Net asset value, end of period $ 9.38 $ 11.71 $ 11.58
------ ----------- -----------
Total return* (19.90%) 1.12% (15.16%)
Ratios and supplemental data
Net assets, end of period
(thousands) $ 197 $ 465 $ 557
Ratios to average net assets
Expenses** 2.81%+ 2.85% 2.83%+
Net investment loss (0.96%)+ (0.80%) (1.44%)+
Portfolio turnover rate 21% 33% 44%
</TABLE>
<TABLE>
<CAPTION>
Period Ended
April 30, 2000 # (b)
(Unaudited)
<S> <C>
CLASS Y SHARES
Net asset value, beginning of period $10.56
------
Income from investment operations
Net investment loss (0.01)
Net realized and unrealized gains or losses on securities
and foreign currency related transactions (1.15)
------
Total from investment operations (1.16)
------
Net asset value, end of period $ 9.40
------
Total return (10.98%)
Ratios and supplemental data
Net assets, end of period (thousands) $ 1
Ratios to average net assets
Expenses** 1.78%+
Net investment loss (0.21%)+
Portfolio turnover rate 21%
</TABLE>
(a) For the period from January 29, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the period from February 29, 2000 (commencement of class operations) to
April 30, 2000.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
51
<PAGE>
EVERGREEN
Emerging Markets Growth Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 95.0%
Aerospace & Defense - 0.7%
36,653 Elbit Systems Ltd.................................... $ 522,305
-----------
Air Freight & Couriers - 0.3%
23,400 Embotelladora Andina SA, Ser. A...................... 272,025
-----------
Auto Components - 0.7%
9,289 Alpha Credit Bank, GDR............................... 511,607
-----------
Automobiles - 0.4%
30,000 * Hyundai Motor Co................................... 282,496
-----------
Banks - 13.4%
35,800,000 Akbank Turk Anonim Sirket............................ 805,067
66,300 Amalgamated Bank South Africa........................ 234,673
36,314,252 Banco Bradesco SA.................................... 265,493
9,016 Banco de Galicia y Buenos Aires SA de CV, Class B,
ADR................................................. 156,090
6,400 * Banco Frances del Rio de la Plata SA, ADR.......... 126,400
3,890,000 Banco Itau SA........................................ 290,861
18,097 Bank Handlowy w Warszawie............................ 261,131
225,500 Bank Hapoalim Ltd.................................... 692,627
3,024,000 * Bank Negara Indonesa............................... 76,557
1,294,630 Bank Sinopac......................................... 719,356
486,960 * Chinatrust Commercial Bank......................... 402,683
31,800 Credicorp Ltd........................................ 335,888
170,400 * Grupo Financiero Banamex AC, Ser. O................ 615,685
1,245,400 Grupo Financiero Bancomer SA, Ser. O................. 555,864
179,000 * Grupo Financiero Banorte SA de CV, Ser. O.......... 243,486
10,000 Housing & Commercial Bank............................ 171,210
28,000 * Kookmin Bank....................................... 302,771
154,000 Malayan Banking Berhad............................... 640,316
22,633 Nedcor Ltd........................................... 429,261
2,833 OTP Bank Rt.......................................... 125,571
2,475,200 PT Bank Pan Indonesia Tbk............................ 117,494
500,000 * Siam Commercial Bank............................... 400,630
30,000 State Bank of India, GDR, 144A....................... 277,500
78,800,000 Turkiye Garanti Bankasi AS........................... 1,327,424
6,000 Uniao de Bancos Brasileiros SA, GDR ("Unibanco")..... 149,625
26,460,000 Yapi ve Kredi Bankasi AS............................. 843,860
-----------
10,567,523
-----------
Beverages - 2.1%
18,200 Fomento Economico Mexicano, Ser. B, ADR.............. 750,750
80,200 * Grupo Modelo SA de CV, Ser. C...................... 170,457
10,753 Hellenic Bottling.................................... 170,000
9,600 Panamerican Beverages, Inc., Cl. A................... 157,800
50,500 * South African Brew................................. 372,687
-----------
1,621,694
-----------
Chemicals - 1.8%
11,000 L.G. Chemical Ltd.................................... 252,760
46,000 Reliance Industries Ltd., GDR, 144A.................. 1,179,900
-----------
1,432,660
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Communications Equipment - 0.8%
6,768 ECI Telecommunications Ltd........................... $ 188,235
10,000 * Utstarcom, Inc..................................... 475,000
-----------
663,235
-----------
Computers & Peripherals - 2.2%
53,900 * Asustek Computer, Inc.............................. 597,225
1,000,000 Legend Holdings...................................... 1,155,446
-----------
1,752,671
-----------
Construction & Engineering - 0.6%
120,000 Italian-Thai Development Plc......................... 85,906
30,000 Larsen & Toubro Ltd., GDR, 144A...................... 405,000
-----------
490,906
-----------
Construction Materials - 0.6%
20,768 * Cemex SA de CV, Ser. B, ADR........................ 454,300
-----------
Diversified Financials - 1.8%
1,168,000 Ayala Corp........................................... 265,937
68,175 Rembrandt Group Ltd.................................. 528,870
15,584 Samsung Securities Co................................ 262,600
1,100,000 * Skyworth Digital................................... 353,053
-----------
1,410,460
-----------
Diversified Telecommunication Services - 22.0%
58,127 * Bezeq Israeli Telecommunication Corp. Ltd.......... 308,449
11,000 * Compania Anonima Nacional Telefonos de Venezuela,
Class D, ADR........................................ 319,000
15,900 Compania de Telecom de Chile SA, ADR................. 294,150
44,800 * Embratel Participacoes SA, ADR..................... 1,008,000
62,794 Hellenic Telecommunications Organization SA, GDR..... 1,413,599
266,000 Indosat, ADR......................................... 352,702
29,000 * Korea Telecom Corp................................. 1,000,500
37,500 Mahanagar Telep Ni, GDR.............................. 478,125
118,463 * Mahanagar Telephone Nigam Ltd., GDR................ 1,540,019
15,981 * Matav Rt., ADR..................................... 556,339
47,000 Philippine Long Distance Telephone Co................ 866,562
13,100 * Rostelecom......................................... 254,631
16,100 * SPT Telecom AS..................................... 298,685
25,600 * STET Hellas Telecommunications SA.................. 585,600
35,334 Tele Norte Leste Participacoes SA, ADR............... 629,387
328,000 * Telecom Asia Corp.................................. 439,459
103,578 * Telecomasia Corporation Public Co., Ltd............ 25,654
2,900 * Telecomunicacoes Brasileiras SA, ADR Preference
Shares ("Telebras")................................. 342,744
27,500 Telecomunicacoes De Sao Paulo........................ 694,375
14,200 Telefonica de Argentina, Class B, ADR................ 498,775
63,614 Telefonos de Mexico SA, ADR ("Telmex")............... 3,741,298
</TABLE>
52
<PAGE>
EVERGREEN
Emerging Markets Growth Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Diversified Telecommunication Services - continued
200,000 Telekom Malaysia Berhad............................... $ 694,737
55,800 Telekomunikacja Polaska SA............................ 409,450
756,000 Telekomunikasi Indonesia, Ser. B...................... 330,152
10,000 Videsh Sanchar........................................ 152,327
4,200 * Vimpel-Communications............................... 140,700
-----------
17,375,419
-----------
Electric Utilities - 3.2%
17,000 * BSES, Ltd., GDR..................................... 289,000
73,500 * Centrais Eletricas Brasileiras SA, ADR.............. 545,818
105,300 Electricity Generating Public Co...................... 127,942
14,031 Empresa Nacional de Electric, ADR..................... 161,357
83,800 Korea Electric Power Corp., ADR....................... 1,372,225
-----------
2,496,342
-----------
Electrical Equipment - 0.4%
405,000 Walsin Lihwa Corp..................................... 326,965
-----------
Electronic Equipment & Instruments - 1.4%
38,100 Delta Electronics, Inc................................ 394,362
41,000 * Hon Hai Precision................................... 395,326
209,000 * Yageo Corp.......................................... 340,193
-----------
1,129,881
-----------
Food & Drug Retailing - 0.9%
122,720 President Chain Store Corp............................ 437,211
31,100 * Santa Isabel SA, ADR................................ 264,350
-----------
701,561
-----------
Food Products - 1.1%
890,000 Cia Cervejaria Brahma................................. 645,749
850,000 * Golden Agri-Resources Ltd........................... 196,747
-----------
842,496
-----------
Gas Utilities - 0.0%
3,900 * Gulf Indonesia Resources Ltd........................ 27,300
-----------
Hotels, Restaurants & Leisure - 1.5%
104,500 * Corp Interamericana Entretenimiento S.A............. 428,661
94,200 Genting Berhad........................................ 379,279
65,000 Indian Hotels Co Ltd.................................. 341,250
-----------
1,149,190
-----------
Household Durables - 2.7%
6,995 L.G. Electronics, GDR, 144A........................... 186,575
5,195,000 Vestel Electronik Sanayi ve Ticaret AS................ 1,954,158
-----------
2,140,733
-----------
Industrial Conglomerates - 1.0%
46,600 * ALFA SA de CV, Ser. A............................... 144,108
68,443 Barlow Ltd............................................ 428,999
71,400 * Grupo Carso SA de CV, Ser. A1....................... 242,806
-----------
815,913
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Insurance - 2.3%
27,886,210 Aksigorta AS.......................................... $ 741,121
105,450 Cathay Life Insurance Co., Ltd........................ 255,051
24,940 Hyundai Fire & Marine Co. Ltd......................... 191,250
19,435 Liberty Life Association of Africa, Ltd............... 182,010
21,682 Samsung Fire & Marine Co., Ltd........................ 443,507
-----------
1,812,939
-----------
Internet Software & Services - 0.7%
1,000 * Asiainfo Holdings Inc............................... 43,500
100,000 * Hongkong.com Corp................................... 18,744
1,000,000 Vanda Systems & Communications Holdings............... 510,322
-----------
572,566
-----------
IT Consulting & Services - 0.5%
2,300 * Check Point Software Tech Ltd....................... 397,900
-----------
Media - 1.5%
11,650 * Grupo Televisa SA, ADR.............................. 739,047
60,000 Star Publications..................................... 217,895
22,300 * TV Azteca SA de CV, ADR............................. 245,300
-----------
1,202,242
-----------
Metals & Mining - 3.9%
12,370 Anglo American Plc.................................... 524,318
16,405 Anglo-American Platinum Corp., Ltd.................... 396,788
15,300 AngloGold Ltd, ADR.................................... 297,394
715,000 China Steel Corp...................................... 507,125
26,600 Companhia Vale do Rio Doce, ADR....................... 658,938
26,037 De Beers Centenary.................................... 533,757
62,400 * Siderca SA.......................................... 134,252
-----------
3,052,572
-----------
Multi-line Retail - 1.4%
500,000 China Merchants Hldgs Intl............................ 309,724
274,912 New Clicks Holdings Ltd............................... 407,472
10,000 Shinsegae Department Store............................ 375,760
-----------
1,092,956
-----------
Multi-Utilities - 0.6%
101,863 Petroleos de Chile SA................................. 454,701
-----------
Oil & Gas - 3.2%
3,600 LUKoil Oil Co., ADR................................... 217,008
11,418 MOL Magyar Olaj-es Gazipari Rt., GDR.................. 201,154
20,120 * Petroleo Brasileiro SA, ADR ("Petrobras")........... 476,671
41,300 PTT Exploration & Production Public Co., Ltd.......... 209,402
52,443 * SK Corp., GDR, 144A................................. 990,026
14,576 Ssangyong Oil Refining Co, Ltd........................ 269,914
12,900 Surgutneftegaz Jsc.................................... 195,822
-----------
2,559,997
-----------
</TABLE>
53
<PAGE>
EVERGREEN
Emerging Markets Growth Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Paper & Forest Products - 2.3%
41,800 Aracruz Celulose SA................................... $ 781,137
20,183 Empresas CMPC......................................... 235,028
600,000 Indah Kiat Pulp & Paper............................... 180,380
124,200 * Kimberly Clark Corp. de Mexico SA de CV, Cl. A...... 399,921
33,977 Sappi Ltd............................................. 238,022
-----------
1,834,488
-----------
Pharmaceuticals - 1.3%
43,400 Pliva D.D., GDR, 144A................................. 535,990
20,500 * Taro Pharmaceutical Industries Ltd.................. 228,062
5,600 Teva Pharmaceutical Industries, Ltd., ADR............. 246,400
-----------
1,010,452
-----------
Real Estate - 1.1%
950,000 China Everbright Pacific Ltd.......................... 664,703
96,975 * Corporacion GEO SA de CV, Ser. B.................... 222,599
-----------
887,302
-----------
Semiconductor Equipment & Products - 10.8%
94,000 Advanced Semiconductor Engineering Inc................ 301,095
64,082 * Hyundai Electronics Industries...................... 1,016,304
10,003 Samsung Electronics................................... 2,704,122
143,000 * Siliconware Precision Industries.................... 324,841
82,000 * Taiwan Secom Co..................................... 191,633
383,860 * Taiwan Semiconductor Manufacturing Co., Ltd......... 2,471,659
453,501 United Microelectronics Corp.......................... 1,534,151
-----------
8,543,805
-----------
Software - 2.0%
16,800 Aptech Ltd............................................ 700,481
25,000 * Pentamedia Graphics................................. 363,975
12,000 * Pentamedia Graphics, GDR............................ 246,000
26,000 * Tata Elxsi India.................................... 62,543
29,800 * Tata Infotech....................................... 205,493
-----------
1,578,492
-----------
Specialty Retail - 1.8%
374,600 * Grupo Elektra SA de CV.............................. 366,240
95,000 Siam Makro Plc........................................ 124,787
393,400 * Wal-Mart de Mexico SA de CV......................... 907,203
-----------
1,398,230
-----------
Textiles & Apparel - 0.7%
243,960 Far East Textile, Inc................................. 374,771
93,000 * Pou Chen, Corp...................................... 214,300
-----------
589,071
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Trading Companies & Distributors - 0.5%
32,204 Elektrim Spolka Akcyjna SA........................... $ 403,451
-----------
Transportation Infrastructure - 0.5%
240,000 * New World Infrastructure Ltd....................... 255,739
1,500,000 Zhejiang Expressway.................................. 173,317
-----------
429,056
-----------
Wireless Telecommunications Services - 0.3%
4,100 * Tele Centro Sul Participacoes SA, ADR.............. 261,375
-----------
Total Common Stocks
(cost $63,455,874).................................. 75,069,277
-----------
PREFERRED STOCKS - 1.7%
Aerospace & Defense - 1.7%
250,000 Embraer-Empresa Brasileira de Aeronautica SA
(cost $402,837)..................................... 1,308,502
-----------
RIGHTS - 0.0%
Electronic Equipment & Instruments - 0.0%
3,810 Delta Electronics, Inc............................... 3,494
-----------
Software - 0.0%
16,800 Aptech Ltd........................................... 0
-----------
Total Rights
(cost $0)........................................... 3,494
-----------
WARRANTS - 0.0%
Banks - 0.0%
218,400 * PT Bank Pan Indonesia, expire 7/8/2002 (cost $0)... 3,456
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENT - 2.3%
$1,814,000 State Street Bank & Trust Co., purchased 04/28/2000,
5.76% maturing 5/1/2000, maturity value $1,814,871
(cost $1,814,000) (a).............................. 1,814,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments-
(cost $65,672,711)............................. 99.0% 78,198,729
Other Assets and Liabilities - net............. 1.0 775,355
----- -----------
Net Assets..................................... 100.0% $78,974,084
===== ===========
</TABLE>
(a) The repurchase agreement is fully collateralized by: $1,875,000 FHLB,
6.500, 1/8/2004, value including accrued interest $1,851,563.
* Non-income producing security.
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 Receipts
GDR Global Depository Receipts
54
<PAGE>
EVERGREEN
Emerging Markets Growth Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
At April 30, 2000, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
Mexico............................................ $10,227,726 13.1%
Korea............................................. 9,822,019 12.6%
Taiwan............................................ 9,393,586 12.0%
Brazil............................................ 8,058,676 10.3%
India............................................. 6,241,613 8.0%
Turkey............................................ 5,671,629 7.3%
South Africa...................................... 3,677,247 4.7%
Hong Kong......................................... 2,832,255 3.6%
Greece............................................ 2,680,806 3.4%
Israel............................................ 2,583,979 3.3%
Malaysia.......................................... 1,932,226 2.5%
Thailand.......................................... 1,811,637 2.3%
Chile............................................. 1,681,611 2.1%
Philippines....................................... 1,132,499 1.4%
Indonesia......................................... 1,088,041 1.4%
Other Countries+.................................. 9,363,179 12.0%
----------- ------
$78,198,729 100.0%
=========== ======
</TABLE>
+ Includes short-term investments.
See Combined Notes to Financial Statements.
55
<PAGE>
EVERGREEN
Global Leaders Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 99.1%
Australia - 1.1%
70,000 National Australia Bank, Ltd.......................... $ 4,773,125
------------
Belgium - 0.7%
14,366 Colruyt NV............................................ 554,925
75,000 UCB SA................................................ 2,522,752
------------
3,077,677
------------
Canada - 4.0%
500,000 Bombardier, Inc., Cl. B............................... 13,437,774
120,000 Du Pont Canada, Inc., Cl. A........................... 3,565,400
------------
17,003,174
------------
Denmark - 0.8%
75,000 Coloplast............................................. 3,158,030
------------
Finland - 3.2%
200,000 Nokia Corp., ADR...................................... 11,375,000
40,000 Tieto Corp............................................ 1,927,292
------------
13,302,292
------------
France - 4.7%
45,600 Carrefour SA.......................................... 2,968,175
40,000 Hermes International.................................. 5,672,784
88,400 Sanofi Synthelabo..................................... 3,298,960
48,320 Societe Technip....................................... 5,512,928
15,564 Sodexho Alliance...................................... 2,331,794
------------
19,784,641
------------
Germany - 6.0%
70,000 Altana AG............................................. 5,059,141
46,250 DePfa Deutsche Pfandbriefbank AG (DePfa-Bank)......... 4,646,069
44,000 Hugo Boss AG.......................................... 5,600,056
10,500 Marschollek Lauten.................................... 3,722,765
10,000 SAP AG................................................ 4,690,956
31,000 SAP AG, ADR........................................... 1,522,875
------------
25,241,862
------------
Hong Kong - 1.3%
181,000 Cheung Kong Holdings, Ltd. ........................... 2,161,069
350,000 Henderson Land Development Co., Ltd. ................. 1,532,250
1,570,822 Hong Kong & China Gas Co., Ltd. ...................... 1,714,167
------------
5,407,486
------------
Ireland - 0.9%
14,510 CRH Plc............................................... 232,162
217,137 CRH Plc, London Exchange.............................. 3,480,149
------------
3,712,311
------------
Italy - 4.9%
119,000 Benetton Group SpA, ADS............................... 4,455,062
50,000 Bipop-Carire SpA...................................... 4,545,500
425,000 * Industrie Natuzzi SpA, ADR.......................... 4,675,000
300,000 Luxottica Group SpA, ADS.............................. 7,162,500
------------
20,838,062
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Japan - 6.5%
40,000 Nintendo Co., Ltd...................................... $ 6,665,741
110 NTT Mobile Communication Network, Inc.................. 3,676,341
140,400 Seven-Eleven Japan Co., Ltd............................ 17,287,599
------------
27,629,681
------------
Malaysia - 0.7%
101,000 AMMB Holdings Berhad................................... 382,737
254,000 Commerce Asset Holding Berhad.......................... 715,211
254,000 Malayan Banking Berhad................................. 1,056,105
92,000 Malaysian Oxygen Berhad................................ 290,526
81,000 Nestle Berhad.......................................... 387,947
134,000 Perusahaan Otomobil Nasional Berhad.................... 185,132
------------
3,017,658
------------
Netherlands - 3.8%
163,700 CSM NV................................................. 2,812,692
40,000 Getronics NV........................................... 2,385,478
72,086 IHC Caland NV.......................................... 2,916,236
80,931 Numico Kon NV.......................................... 3,009,192
90,000 VNU NV................................................. 4,815,048
------------
15,938,646
------------
Spain - 1.0%
2,400 Endesa SA.............................................. 52,364
195,500 Endesa SA, ADR......................................... 4,129,938
------------
4,182,302
------------
Sweden - 0.6%
99,000 Hennes & Mauritz, Cl.B................................. 2,627,928
------------
Switzerland - 1.6%
30,000 ABB AG................................................. 3,366,096
2,165 Schweizerische Rueckversicherungs-Gesellschaft......... 3,478,713
------------
6,844,809
------------
United Kingdom - 10.1%
300,000 Airtours Plc........................................... 1,578,748
7,937 Astrazeneca Plc........................................ 331,520
87,755 Astrazeneca Plc, ADR................................... 3,696,679
110,000 * Bowthorpe Plc........................................ 2,029,485
368,102 Granada Group Plc...................................... 3,610,635
362,100 Lloyds TSB Group Plc................................... 3,534,850
130,000 Pearson Publishing Plc................................. 4,398,231
530,200 Rentokil Initial Plc................................... 1,454,936
325,000 Royal Bank of Scotland Group Plc....................... 5,070,211
140,000 SEMA Group Plc......................................... 2,260,381
19,024 SmithKline Beecham Plc................................. 260,651
50,000 SmithKline Beecham, Plc, ADR........................... 3,437,500
281,841 Smiths Industries Plc.................................. 3,302,767
250,000 TI Group Plc........................................... 1,358,440
130,000 Vodafone AirTouch Plc, ADR............................. 6,110,000
------------
42,435,034
------------
</TABLE>
56
<PAGE>
EVERGREEN
Global Leaders Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United States - 47.2%
125,000 Abbott Laboratories..................................... $ 4,804,687
25,000 American Express Co..................................... 3,751,562
42,312 American International Group, Inc....................... 4,641,097
70,000 Anheuser Busch Companies, Inc. ......................... 4,939,375
61,600 Avon Products, Inc...................................... 2,556,400
65,000 Bell Atlantic Corp. .................................... 3,851,250
120,000 Black & Decker Corp..................................... 5,047,500
70,000 Carnival Corp., Cl. A................................... 1,741,250
207,500 * Cisco Systems, Inc. .................................. 14,385,586
150,000 Citigroup, Inc.......................................... 8,915,625
30,000 Computer Associates International, Inc.................. 1,674,375
108,000 * Dell Computer Corp.................................... 5,413,500
112,900 Disney (Walt) Co........................................ 4,889,981
68,000 Federal National Mortgage Assn.......................... 4,101,250
50,000 Gannett Co., Inc........................................ 3,193,750
101,250 Gap, Inc. .............................................. 3,720,938
69,000 General Electric Co. ................................... 10,850,250
75,000 General Mills, Inc. .................................... 2,728,125
110,000 Harley-Davidson, Inc. .................................. 4,379,375
97,500 Home Depot, Inc. ....................................... 5,466,094
90,000 Honeywell International, Inc............................ 5,040,000
80,000 Intel Corp.............................................. 10,145,000
80,000 Marriott International, Inc., Cl. A..................... 2,560,000
42,350 Marsh & McLennan Co., Inc. ............................. 4,174,122
119,775 MBNA Corp. ............................................. 3,181,523
74,500 McGraw-Hill Companies, Inc. ............................ 3,911,250
68,000 Merck & Co., Inc. ...................................... 4,726,000
98,000 * Microsoft Corp. ...................................... 6,835,500
50,000 Morgan Stanley, Dean Witter & Co. ...................... 3,837,500
98,500 * Oracle Systems Corp. ................................. 7,873,844
80,000 Pitney Bowes, Inc. ..................................... 3,270,000
123,700 SBC Communications, Inc. ............................... 5,419,606
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United States - continued
68,000 Schering-Plough Corp. ............................... $ 2,741,250
60,000 Schwab (Charles) & Co., Inc. ........................ 2,670,000
25,000 * Sun Microsystems, Inc.............................. 2,298,438
350,000 TJX Co., Inc......................................... 6,715,625
75,000 Tribune Co........................................... 2,915,625
52,665 United Technologies Corp............................. 3,275,105
175,000 Viad Corp............................................ 4,440,625
145,000 Wal-Mart Stores, Inc. ............................... 8,029,375
100,000 Wells Fargo Co....................................... 4,106,250
------------
199,218,608
------------
Total Common Stocks (cost $289,755,940).............. 418,193,326
------------
WARRANTS - 0.0%
Malaysia - 0.0%
26,750 * Commerce Asset Holding, Warrants @ 7.45MYR expire
3/16/2002 (b)....................................... 30,411
33,200 * United Engineers Berhad, expire 11/18/2002......... 46,305
------------
Total Warrants
(cost $16,302) 76,716
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENT - 0.0%
$114,000 State Street Bank & Trust Co., purchased 4/28/2000,
5.80%, maturing 5/1/2000, maturity value $114,055
(cost $114,000) (a)................................. 114,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments - (cost $289,886,242)......... 99.1% 418,384,042
Other Assets and Liabilities - net.............. 0.9 3,853,320
----- ------------
Net Assets...................................... 100.0% $422,237,362
===== ============
</TABLE>
(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, 2000.
(b) Investment is being fair valued in accordance with procedures established
by the Board of Trustees.
* Non-income producing security.
Summary of Abbreviations:
ADR American Depository Receipts
ADS American Depository Shares
57
<PAGE>
EVERGREEN
Global Leaders Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
At April 30, 2000, the Fund held securities in the following sectors:
<TABLE>
<CAPTION>
Percent of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
Consumer Discretionary............................ $ 95,275,671 22.8%
Financials........................................ 75,027,945 17.9%
Information Technology............................ 74,817,710 17.9%
Industrials....................................... 59,266,475 14.2%
Health Care....................................... 41,199,672 9.8%
Consumer Staples.................................. 37,244,430 8.9%
Telecommunication Services........................ 19,057,198 4.6%
Materials......................................... 7,568,237 1.8%
Utilities......................................... 5,896,468 1.4%
Energy............................................ 2,916,236 0.7%
Cash & Cash Equivalents........................... 114,000 0.0%
------------ ------
$418,384,042 100.0%
============ ======
</TABLE>
See Combined Notes to Financial Statements.
58
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 92.4%
Aerospace & Defense - 1.1%
42,100 * M Systems Flash Disk Pioneers Ltd................. $ 2,778,600
------------
Auto Components - 0.1%
19,040 Brembo SpA.......................................... 236,618
------------
Banks - 1.2%
503,400 Anglo Irish Bank Corp. Plc.......................... 1,112,067
465 Verwalt & Private Bank.............................. 2,022,267
------------
3,134,334
------------
Beverages - 0.2%
13,900 Fomento Economico Mexicano, Ser. B, ADR............. 573,375
------------
Biotechnology - 1.3%
24,000 * Alkermes, Inc..................................... 1,278,000
30,700 * Myriad Genetics, Inc. ............................ 1,976,312
------------
3,254,312
------------
Commercial Services & Supplies - 10.3%
4,250 Altran Technologies SA.............................. 868,554
20,797 * Atos SA........................................... 2,247,989
9,900 * Benesse Corp. .................................... 864,296
5,200 * Benesse Corp. (New)............................... 475,638
28,691 Capita Group Plc.................................... 737,063
700,056 Computershare Ltd................................... 2,856,514
23,300 * Diamond Technology Partners, Inc. ................ 1,843,612
60,000 Elanders AB......................................... 1,913,897
5,000 Enea Data AB........................................ 880,549
89,600 * Harbinger Corp. .................................. 1,691,200
435 Kuoni Reisen Holding AG............................. 1,884,231
50,400 * Mosaic Group, Inc................................. 568,357
67 Net One Systems Co.................................. 2,288,849
404,226 Parity Group........................................ 2,209,054
1,560 Penauille Polyservices.............................. 942,391
3,100 * Telegate SA....................................... 391,731
9 The Goodwill Group.................................. 138,314
27,182 Transiciel SA....................................... 3,627,598
------------
26,429,837
------------
Communications Equipment - 3.3%
87,400 * Davox Corp. ...................................... 2,228,700
100 * Echelon Corp...................................... 3,256
53,000 * Performance Technologies, Inc. ................... 1,851,688
68,000 * Tollgrade Communications, Inc. ................... 4,488,000
------------
8,571,644
------------
Computers & Peripherals - 2.0%
17,000 * Asustek Computer, Inc. ........................... 188,364
3,962 * Logitech International SA......................... 2,614,454
190,000 * Maxtor Corp....................................... 2,268,125
------------
5,070,943
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - Continued
Construction & Engineering - 2.0%
32,650 * Dycom Industries, Inc. ........................... $ 1,697,800
14,632 GTI Holding NV...................................... 262,714
37,300 * Mastec, Inc....................................... 3,221,787
------------
5,182,301
------------
Construction Materials - 0.8%
34,050 * Cemex SA de CV, Ser. B, ADR....................... 744,844
39,400 Texas Industries, Inc............................... 1,285,425
------------
2,030,269
------------
Distributors - 0.5%
300,000 Li & Fung........................................... 1,170,852
------------
Diversified Financials - 5.8%
9,000 Acom Co., Ltd....................................... 867,380
75,900 * Anixter International, Inc. ...................... 2,556,881
167,850 Close Brothers Group Plc............................ 2,600,275
140,226 DCC Plc............................................. 1,383,152
915,000 Garban Plc.......................................... 3,533,033
123,000 * NextCard, Inc..................................... 1,299,188
9,200 Orix Corp........................................... 1,313,373
13,500 Takefuji Corp. ..................................... 1,428,552
------------
14,981,834
------------
Diversified Telecommunication Services - 3.1%
7,400 * AT&T Canada, Inc.................................. 315,425
64,900 * ITC DeltaCom, Inc................................. 2,133,587
23,350 * Netcom AB, Series B............................... 1,658,928
69,300 * Primus Telecomm Group, Inc........................ 2,273,906
17,650 Tele Norte Leste Participacoes SA, ADR.............. 314,392
46,100 * US LEC Corp., Cl. A............................... 1,204,363
------------
7,900,601
------------
Electric Utilities - 1.0%
38,400 Avista Corp......................................... 1,135,200
51,100 CMP Group, Inc...................................... 1,478,706
------------
2,613,906
------------
Electrical Equipment - 0.9%
261,000 Makita Corp......................................... 2,266,519
------------
Electronic Equipment & Instruments - 3.4%
46,400 * Conductus, Inc.................................... 742,400
25,000 * Hon Hai Precision................................. 241,052
255,901 Pressac Holdings Plc................................ 1,055,827
126,900 * Robotic Vision Systems, Inc....................... 1,895,569
55,600 * Three-Five Systems, Inc. ......................... 4,837,200
------------
8,772,048
------------
Energy Equipment & Services - 3.1%
30,300 * Atwood Oceanics, Inc. ............................ 1,836,938
58,600 * Cal Dive International, Inc....................... 2,915,350
22,600 Fugro NV............................................ 1,058,101
</TABLE>
59
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Energy Equipment & Services - continued
79,000 * Patterson Energy, Inc............................. $ 2,231,750
------------
8,042,139
------------
Food & Drug Retailing - 1.2%
15,200 Doutor Coffee Co.................................... 1,252,419
151,001 Sobeys, Inc......................................... 1,942,446
------------
3,194,865
------------
Food Products - 1.6%
1,120 Lindt & Spruengli AG................................ 2,694,546
144,000 Meiji Seika Kaisha.................................. 939,870
12,900 Nutreco Holding NV.................................. 501,346
------------
4,135,762
------------
Health Care Equipment & Supplies - 0.8%
906 Phonak Holding AG................................... 2,075,150
------------
Health Care Providers & Services - 3.3%
96,400 * Apria Healthcare Group, Inc. ..................... 1,343,575
205,473 Cochlear Ltd........................................ 2,669,916
109,500 * LifePoint Hospitals, Inc. ........................ 1,875,188
105,900 * Oxford Health Plans, Inc. ........................ 2,012,100
191,534 Sonic Healthcare Ltd. .............................. 637,578
------------
8,538,357
------------
Hotels, Restaurants & Leisure - 1.8%
147,326 Compass Group Plc................................... 2,121,759
71,600 * Papa John's International, Inc.................... 1,969,000
47,700 Sol Melia SA........................................ 585,415
------------
4,676,174
------------
Household Durables - 3.1%
88,100 Ethan Allen Interiors, Inc.......................... 2,351,169
110,000 Noritz Corp......................................... 1,398,231
111,200 Standard Pacific Corp............................... 1,118,950
69,700 * Toll Brothers, Inc................................ 1,511,619
73,200 * Universal Electronics, Inc. ...................... 1,500,600
------------
7,880,569
------------
Industrial Conglomerates - 2.7%
1,815,450 FKI Plc............................................. 6,896,822
------------
Insurance - 1.9%
16,000 Clarica Life Insurance Co........................... 314,403
86,800 E. W. Blanch Holdings, Inc.......................... 1,931,300
162,700 Mediolanum SpA...................................... 2,699,368
------------
4,945,071
------------
Internet Software & Services - 0.8%
27,100 * Netegrity, Inc.................................... 1,202,562
11,900 * Retek, Inc........................................ 255,850
12,100 * Spyglass, Inc. ................................... 641,300
------------
2,099,712
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
IT Consulting & Services - 0.3%
29,600 Logica Plc.......................................... $ 896,368
------------
Leisure Equipment & Products - 0.6%
4,983 * Club Mediterranee SA.............................. 620,616
52,000 Shimano, Inc........................................ 967,644
------------
1,588,260
------------
Machinery - 5.2%
39,700 * Astec Industries, Inc............................. 997,463
1,155 * Georg Fischer AG.................................. 331,186
120,000 Jot Automation Group................................ 867,281
53,600 Oshkosh Truck Corp.................................. 1,688,400
4,380 * Saurer Arbon AG................................... 2,158,824
17,600 Singulus Technologies AG............................ 1,998,420
6,500 Swisslog Holding.................................... 2,856,977
18,900 Union Tool Co....................................... 2,565,144
------------
13,463,695
------------
Media - 2.7%
840,939 Aegis Group Plc..................................... 2,291,276
25,800 * Citadel Communications Corp....................... 1,007,813
39,300 * Lamar Advertising Co., Cl. A...................... 1,731,656
2,500 Publigroupe SA...................................... 1,928,039
------------
6,958,784
------------
Office Electronics - 0.4%
444,111 Cannons Plc......................................... 961,128
------------
Oil & Gas - 5.5%
39,954 Alberta Energy Ltd.................................. 1,263,991
125,843 * Canadian Natural Resources, Ltd. ................. 3,356,607
84,159 Canadian Occidental Petroleum Ltd................... 1,932,207
187,600 Fletcher Challenge, Energy Shares................... 432,718
47,200 * Newfield Exploration Co........................... 1,917,500
47,900 * Stone Energy Corp. ............................... 2,263,275
84,200 Triton Energy Ltd................................... 3,068,038
------------
14,234,336
------------
Paper & Forest Products - 0.2%
162,750 * Kimberly Clark Corp. de Mexico SA de CV, Cl. A.... 524,051
------------
Pharmaceuticals - 2.3%
32,400 Alpharma, Inc., Cl. A............................... 1,251,450
13,400 Altana AG........................................... 968,464
53,000 Banyu Pharmaceutical Co., Ltd....................... 1,167,801
93,000 Santen Pharmaceuticals Co........................... 2,057,770
10,400 * Shire Pharmaceuticals Group Plc, ADR.............. 418,600
------------
5,864,085
------------
Semiconductor Equipment & Products - 5.0%
20,600 * Advanced Energy Industries, Inc. ................. 1,421,400
</TABLE>
60
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Semiconductor Equipment & Products - continued
32,600 * Alpha Industries, Inc. ........................... $ 1,695,200
82,600 * Artisan Components, Inc. ......................... 815,675
36,600 * Cymer, Inc........................................ 1,429,687
7,500 Insilicon, Inc. .................................... 72,188
8,500 * Intersil Holding Corp. ........................... 297,500
23,800 * Lattice Semiconductor Corp. ...................... 1,603,525
29,200 * Photon Dynamics, Inc. ............................ 2,160,800
126,200 * Semitool, Inc. ................................... 2,529,916
98,000 * Siliconware Precision Industries.................. 222,618
42,000 * Taiwan Semiconductor Manufactoring Co., Ltd....... 270,436
74,000 United Microelectronics Corp. ...................... 250,335
------------
12,769,280
------------
Software - 5.9%
53,400 * Bottomline Technologies, Inc. .................... 1,922,400
12,332 Dassault Systemes SA................................ 948,452
38,000 * Documentum, Inc................................... 2,242,000
3,000 Oracle Corp. Japan.................................. 2,555,201
6,900 * Remedy Corp....................................... 366,563
82,300 * Saga Systems, Inc. ............................... 1,532,837
140,830 Sage Group Plc...................................... 1,568,844
46,750 SER Systeme AG...................................... 1,959,270
32,700 * Sonic Foundry, Inc. .............................. 1,463,325
61,400 * Xybernaut Corp. .................................. 598,650
------------
15,157,542
------------
Specialty Retail - 3.5%
69,700 * American Eagle Outfitters, Inc. .................. 1,184,900
340,158 Ashtead Group Plc................................... 487,241
107,400 Claire's Stores, Inc. .............................. 1,980,187
11,167 Fielmann AG......................................... 363,439
18,300 Paris Miki, Inc. ................................... 1,165,616
10,500 Toys R Us Japan..................................... 1,594,223
51,100 * Zale Corp. ....................................... 2,107,875
------------
8,883,481
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Textiles & Apparel - 2.2%
79,100 * Guess?, Inc. .................................... $ 2,175,250
117,600 * Quiksilver, Inc. ................................ 2,219,700
105,400 * Unify Corp. ..................................... 1,264,800
------------
5,659,750
------------
Wireless Telecommunications Services - 1.3%
7,600 * Alamosa Pcs Holdings, Inc. ...................... 216,600
42,900 * Rural Celluar Corp., Cl. A....................... 3,171,919
------------
3,388,519
------------
Total Common Stocks (cost $194,916,144)............ $237,801,893
------------
PREFERRED STOCKS - 1.3%
Aerospace & Defense - 1.3%
669,960 Embraer-Empresa Brasileira de Aeronautica SA
(cost $1,005,778)................................. 3,506,575
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENT - 7.9%
$20,291,000 Evergreen Joint Repurchase Agreement, Investments
in a joint trading account purchased 4/28/2000,
5.80%, maturing 5/1/2000, maturity value
$20,300,807
(cost $20,291,000) (a)............................ 20,291,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments - (cost $216,212,922).... 101.6% 261,599,468
Other Assets and Liabilities - net.......... (1.6) (4,207,929)
----- ------------
Net Assets.................................. 100.0% $257,391,539
===== ============
</TABLE>
(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, 2000.
* Non-income producing security.
Summary of Abbreviations
ADR American Depository Receipts
See Combined Notes to Financial Statements.
61
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
At April 30, 2000, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percent of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
United States+.................................... $139,556,247 53.3%
United Kingdom.................................... 25,777,290 9.9%
Japan............................................. 25,306,837 9.7%
Switzerland....................................... 18,565,674 7.1%
Canada............................................ 9,693,437 3.7%
France............................................ 9,255,601 3.5%
Australia......................................... 6,164,008 2.4%
Germany........................................... 5,681,324 2.2%
Sweden............................................ 4,453,374 1.7%
Brazil............................................ 3,820,967 1.5%
Italy............................................. 2,935,986 1.1%
Ireland........................................... 2,495,220 1.0%
Mexico............................................ 1,842,270 0.7%
Netherlands....................................... 1,822,161 0.7%
Taiwan............................................ 1,172,806 0.4%
Hong Kong......................................... 1,170,852 0.4%
Finland........................................... 867,281 0.3%
Spain............................................. 585,415 0.2%
New Zealand....................................... 432,718 0.2%
------------ ------
$261,599,468 100.0%
============ ======
</TABLE>
+ Includes short-term investments.
See Combined Notes to Financial Statements.
62
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 93.9%
Automobiles - 2.7%
101,000 Honda Motor Co., Ltd................................ $ 4,516,317
46,578 Peugeot SA.......................................... 9,637,508
149,000 Toyota Motor Corp................................... 7,407,583
------------
21,561,408
------------
Banks - 8.9%
442,780 * Banco Bilbao Vizcaya SA........................... 6,037,970
78,680 Banco Popular Espanol SA............................ 2,124,381
658,000 Bank Of Tokyo-Mitsubishi Ltd........................ 8,491,895
44,740 Banque Nationale de Paris........................... 3,615,842
448,538 Barclays Bank Plc................................... 11,473,918
508,291 DBS Group Holdings.................................. 6,999,612
106,450 Deutsche Bank AG.................................... 7,151,576
738,000 Sumitomo Bank Ltd................................... 9,230,551
259,384 Toronto Dominion Bank Ontario....................... 5,998,988
21,480 * UBS AG............................................ 5,262,416
45,200 Uniao de Bancos Brasileiros SA, GDR ("Unibanco").... 1,127,175
484 Verwalt & Private Bank.............................. 2,104,897
368,000 Wing Hang Bank Ltd.................................. 902,378
------------
70,521,599
------------
Beverages - 1.6%
108,200 * Al-Ahram Beverage Co. SA, GDR..................... 1,921,123
36,226 * Al-Ahram Beverage Co. SA, GDR, 144A............... 643,204
110,050 Fomento Economico Mexicano, Ser. B, ADR............. 4,539,563
64,670 Heineken NV......................................... 3,586,281
41,400 Pernod Ricard SA.................................... 1,872,428
------------
12,562,599
------------
Chemicals - 2.9%
273,018 Akzo Nobel NV....................................... 11,176,476
1,092,500 Asahi Chemical Industry Co., Ltd.................... 6,291,117
56,700 BASF AG............................................. 2,478,846
46,424 Bayer AG............................................ 1,934,212
227,000 Nippon Shokubai Co.................................. 1,006,647
------------
22,887,298
------------
Commercial Services &
Supplies - 1.2%
86,070 Iss International................................... 5,441,485
14 Net One Systems Co.................................. 478,267
48,000 Secom Co., Ltd...................................... 4,026,108
------------
9,945,860
------------
Communications
Equipment - 3.0%
76,756 Ericsson LM Telephone, Ser. B....................... 6,822,946
291,466 Nokia OJY........................................... 16,719,717
------------
23,542,663
------------
Computers & Peripherals - 2.2%
73,000 * Asustek Computer, Inc............................. 808,858
292,000 NEC Corp............................................ 7,947,785
920,000 Toshiba Corp........................................ 8,926,168
------------
17,682,811
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Construction Materials - 2.7%
204,073 * Cemex SA de CV, Ser. B, ADR...................... $ 4,464,097
40,000 Compagnie Generale des Etablissements Michelin, Cl.
B................................................. 1,327,286
6,231 Holderbank Financiere Glarus AG.................... 7,045,577
108,072 Lafarge SA......................................... 8,950,416
------------
21,787,376
------------
Containers & Packaging - 0.5%
1,730,649 Jefferson Smurfit Group Plc........................ 3,775,999
------------
Diversified Financials - 8.8%
42,100 Acom Co., Ltd...................................... 4,057,409
219,250 Close Brothers Group Plc........................... 3,396,547
656,580 Edperbrascan Corp.................................. 7,936,243
376,540 Fortis (NL) NV..................................... 9,468,364
335,000 Garban Plc......................................... 1,293,515
938,550 HSBC Holdings Plc.................................. 10,513,081
547,625 HSBC Holdings Plc (London Exchange)................ 6,053,639
263,000 Hutchison Whampoa, Ltd............................. 3,815,411
202,400 Lend Lease Corp., Ltd.............................. 2,193,348
47,620 Orix Corp.......................................... 6,798,134
401,000 Rembrandt Controlling Investments Ltd.............. 2,004,852
5,502 Societe Eurafrance SA.............................. 2,400,897
80,000 Takefuji Corp...................................... 8,465,491
163,300 Technical & Industrial Investments Ltd............. 732,146
255,550 Technical Investment Corp.......................... 1,102,402
------------
70,231,479
------------
Diversified Telecommunication Services - 6.7%
39,400 * AT&T Canada, Inc................................. 1,679,425
17,750 BCE Inc............................................ 2,055,591
169,736 British Telecommunications Plc..................... 3,039,112
76,581 * Colt Telecom Group Plc........................... 3,404,098
94,540 Deutsche Telekom................................... 6,135,708
60,480 France Telecom SA.................................. 9,357,999
91,800 Hellenic Telecommunications Organization SA, GDR... 2,066,573
50,167 KPN NV............................................. 5,055,516
443 Nippon Telegraph & Telephone Corp.................. 5,495,718
2,062,490 Tecnost SpA........................................ 7,237,537
254,504 Telecom Italia Mobile (TIM) SpA.................... 2,429,381
238,786 * Telefonica SA.................................... 5,314,127
------------
53,270,785
------------
Electric Utilities - 0.4%
197,200 Korea Electric Power Corp., ADR.................... 3,229,150
------------
Electrical Equipment - 0.4%
22,000 Makita Corp........................................ 191,047
267,000 Matsushita Electric Works Ltd...................... 2,963,783
------------
3,154,830
------------
</TABLE>
63
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Electronic Equipment & Instruments - 0.8%
100,000 * Hon Hai Precision................................. $ 964,210
32,300 Kyocera Corp........................................ 5,403,518
------------
6,367,728
------------
Food & Drug Retailing - 0.6%
379,800 Sobeys, Inc......................................... 4,885,671
------------
Food Products - 1.6%
1,309 Lindt & Spruengli AG................................ 3,149,251
5,485 Nestle SA........................................... 9,668,841
------------
12,818,092
------------
Health Care Providers &
Services - 0.1%
134,407 Sonic Healthcare Ltd................................ 447,414
------------
Hotels, Restaurants &
Leisure - 0.5%
250,334 Compass Group Plc................................... 3,605,259
------------
Household Durables - 2.3%
247,191 Electrolux AB....................................... 4,176,827
272,400 Koninklijke (Royal) Philips Electronics N.V......... 12,151,638
94,000 Matsushita-Kotobuki Electronics Industries Ltd...... 2,175,624
------------
18,504,089
------------
Household Products - 1.1%
285,000 Kao Corp............................................ 8,680,739
------------
Industrial Conglomerates - 1.6%
49,270 Compagnie de Saint Gobain........................... 6,723,183
233,431 FKI Plc............................................. 886,795
32,300 Siemens AG.......................................... 4,786,320
------------
12,396,298
------------
Insurance - 7.2%
33,355 Allianz AG.......................................... 12,835,739
559,258 Allied Zurich Plc................................... 5,564,011
76,800 Assicurazioni Generali SpA.......................... 2,185,331
80,548 AXA................................................. 11,943,191
172,000 Clarica Life Insurance Co........................... 3,379,837
185,500 * Industrial Alliance Life Insurance Co............. 2,567,864
752,700 * Manulife Financial Corp........................... 11,817,324
441,950 Prudential Corp. Plc................................ 6,777,730
------------
57,071,027
------------
Internet Software &
Services - 0.1%
2 * Yahoo Japan Corp.................................. 999,861
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Machinery - 2.8%
310,000 Assa Abloy AB....................................... $ 6,292,661
80,000 Fanuc Ltd........................................... 8,384,021
26,000 Fuji Machine Manufacturing Co., Ltd................. 1,807,712
749,439 Invensys Plc........................................ 3,617,203
2,081 * Saurer Arbon AG................................... 1,025,688
6,400 Union Tool Co....................................... 868,620
------------
21,995,905
------------
Media - 2.6%
4,968 Edipresse SA........................................ 2,405,427
9,100 Groupe Danone....................................... 1,989,611
98,450 Mondadori Edit SpA.................................. 2,380,724
200,205 Quebecor, Inc., Cl. B............................... 6,016,019
822,600 Seat Pagine Gialle SpA.............................. 2,460,346
2,675 Springer (Axel) Verlag AG........................... 2,675,027
100,300 Telegraaf Holdings NV............................... 2,776,514
------------
20,703,668
------------
Metals & Mining - 1.6%
94,660 Anglo American Plc.................................. 4,012,283
730,450 Billiton Plc........................................ 2,718,087
238,000 Placer Dome, Inc. - Canadian Exchange............... 1,920,521
191,585 * Thyssen Krupp AG.................................. 4,023,325
------------
12,674,216
------------
Multi-Utilities - 0.7%
37,124 Suez Lyonn des Eaux................................. 5,821,776
------------
Office Electronics - 0.1%
389,700 Cannons Plc......................................... 843,374
------------
Oil & Gas - 10.7%
1,313,300 BP Amoco............................................ 11,338,103
342,464 * Canadian Natural Resources, Ltd................... 9,134,532
310,647 Canadian Occidental Petroleum Ltd................... 7,132,148
2,389,567 ENI SpA............................................. 11,882,784
414,000 Nippon Oil Co....................................... 1,433,468
1,362,782 Petro-Canada........................................ 22,959,964
91,650 Repsol-YPF, SA...................................... 1,874,678
343,810 Shell Transportation & Trading Co. Plc.............. 2,816,991
108,263 Total Fina SA, Cl. B................................ 16,426,614
------------
84,999,282
------------
Paper & Forest Products - 2.5%
50,000 Aracruz Celulose SA................................. 934,375
312,949 Glaxo Wellcome Plc.................................. 9,671,838
564,200 * Kimberly Clark Corp. de Mexico SA de CV, Cl. A.... 1,816,712
528,600 Sappi Ltd........................................... 3,703,045
166,141 Stora Enso Oyj...................................... 1,714,290
110,900 Timberwest Forest Corp.............................. 778,824
62,219 UPM-Kymmene Oyj..................................... 1,612,054
------------
20,231,138
------------
</TABLE>
64
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Pharmaceuticals - 7.3%
90,000 Aventis............................................. $ 4,950,049
19,733 * Aventis SA........................................ 1,088,914
150,000 Banyu Pharmaceutical Co., Ltd....................... 3,305,097
377,000 Chugai Pharmaceutical Co., Ltd...................... 7,259,732
3,114 Novartis AG......................................... 4,349,903
147,592 Pharmacia Corp...................................... 7,391,123
380 Roche Holding AG.................................... 3,968,456
46,793 Schering AG......................................... 6,614,895
75,656 SmithKline Beecham Plc.............................. 1,036,576
272,000 Taisho Pharmaceutical Co............................ 9,115,771
170,000 Yamanouchi Pharmaceutical Co., Ltd.................. 8,986,715
------------
58,067,231
------------
Real Estate - 0.7%
650,600 British Land Co., Plc............................... 4,322,774
9,465 Brookfield Pptys Corp............................... 123,993
708,000 Henderson Investment Ltd............................ 468,109
6,058 Simco Registered Shares............................. 391,571
------------
5,306,447
------------
Semiconductor Equipment & Products - 3.1%
172,946 Hyundai Electronics Industries...................... 2,742,825
44,000 Murata Manufacturing Co., Ltd....................... 8,554,367
13,400 Rohm Co., Ltd....................................... 4,490,858
440,000 * Siliconware Precision Industries.................. 999,510
24,313 * STMicroelectronics................................ 4,639,409
356,000 * Taiwan Semiconductor Manufactoring Co., Ltd....... 2,292,270
263,000 United Microelectronics Corp........................ 889,704
------------
24,608,943
------------
Specialty Retail - 0.6%
2,465,600 Ashtead Group Plc................................... 3,531,713
2,820 Paris Miki, Inc..................................... 179,620
4,500 Toys R Us Japan..................................... 683,238
------------
4,394,571
------------
Tobacco - 1.1%
1,286,500 British America Tobacco Industries Plc.............. 8,012,069
156,500 Swedish Match....................................... 9,658
156,500 Swedish Match Co. AB................................ 466,044
------------
8,487,771
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Trading Companies & Distributors - 0.5%
805,000 Marubeni Corp...................................... 2,332,685
235,000 Mitsubishi Corp.................................... 2,045,087
------------
4,377,772
------------
Wireless Telecommunications Services - 1.7%
110 NTT Mobile Communication Network, Inc.............. 3,676,341
2,079,377 Vodafone Airtouch Plc.............................. 9,518,215
------------
13,194,556
------------
Total Common Stocks
(cost $683,793,537)............................... 745,636,685
------------
PREFERRED STOCKS - 0.7%
Aerospace & Defense - 0.7%
1,124,620 Embraer-Empresa Brasileira de Aeronautica SA
(cost $2,271,512)................................. 5,886,269
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENT - 5.3%
$41,655,000 Evergreen Joint Repurchase Agreement, Investments
in repurchase agreements, in a joint trading
account, purchased 4/28/2000, 5.80%, maturing
5/1/2000, maturity value $41,675,133
(cost $41,655,000) (a)............................ 41,655,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $727,720,049)......................... 99.9% 793,177,954
Other Assets and Liabilities - net........... 0.1 583,624
----- ------------
Net Assets................................... 100.0% $793,761,578
===== ============
</TABLE>
(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, 2000.
* Non-income producing security.
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 Receipts
GDR Global Depository Receipts
See Combined Notes to Financial Statements.
65
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
At April 30, 2000, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
Japan............................................. $166,677,093 21.0%
United Kingdom.................................... 106,933,851 13.5%
Canada............................................ 88,386,944 11.1%
France............................................ 86,497,285 10.9%
Netherlands....................................... 48,854,198 6.2%
Germany........................................... 48,635,647 6.1%
United States+.................................... 41,655,000 5.3%
Switzerland....................................... 38,980,457 4.9%
Italy............................................. 28,576,103 3.6%
Sweden............................................ 25,159,259 3.2%
Finland........................................... 20,046,061 2.5%
Hong Kong......................................... 15,698,979 2.0%
Spain............................................. 15,351,156 1.9%
Mexico............................................ 10,820,371 1.4%
Brazil............................................ 7,947,819 1.0%
Other Countries................................... 42,957,731 5.4%
------------ ------
$793,177,954 100.0%
============ ======
</TABLE>
+ Includes short-term investments
See Combined Notes to Financial Statements.
66
<PAGE>
EVERGREEN
Latin America Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 90.8%
Air Freight & Couriers - 0.5%
14,200 Embotelladora Andina SA, Ser. A..................... $ 165,075
-----------
Banks - 11.3%
44,326,177 Banco Bradesco SA................................... 324,068
16,972 Banco de Galicia y Buenos Aires SA de CV, Class B,
ADR................................................ 293,828
9,730 * Banco Frances del Rio de la Plata SA, ADR......... 192,168
3,200,000 Banco Itau SA....................................... 239,269
14,900 Credicorp Ltd....................................... 157,381
249,700 * Grupo Financiero Banamex AC, Ser. O............... 902,210
2,083,595 Grupo Financiero Bancomer SA, Ser. O................ 929,979
179,000 * Grupo Financiero Banorte SA de CV, Ser. O......... 243,486
8,600 Uniao de Bancos Brasileiros SA, GDR ("Unibanco").... 214,462
-----------
3,496,851
-----------
Beverages - 7.3%
30,282 Coca-Cola Co. Femsa SA, ADR......................... 562,109
27,504 Fomento Economico Mexicano, Ser. B, ADR............. 1,134,540
48,300 * Grupo Modelo SA de CV, Ser. C..................... 102,657
28,428 Panamerican Beverages, Inc., Cl. A.................. 467,285
-----------
2,266,591
-----------
Construction & Engineering - 0.7%
38,343 * Apasco SA de CV................................... 232,258
-----------
Construction Materials - 2.1%
30,114 * Cemex SA de CV, Ser. B, ADR....................... 658,744
-----------
Diversified Telecommunication Services - 26.9%
204,300 Carso Global Telecom, Ser. A1....................... 542,774
5,214 Compania Anonima Nacional Telefonos de Venezuela,
Class D, ADR....................................... 151,206
12,700 Compania de Telecom de Chile SA, ADR................ 234,950
17,000,000 * Embratel Participacoes SA......................... 381,335
33,500 * Embratel Participacoes SA, ADR.................... 753,750
73,139 Tele Norte Leste Participacoes SA, ADR.............. 1,302,796
4,900 * Telecom Argentina - France Telecom SA, Class B,
ADR................................................ 136,894
8,000 Telecomunicacoes De Sao Paulo....................... 202,000
2,674 Telefonica de Argentina, Class B, ADR............... 93,924
59,874 Telefonos de Mexico SA, ADR ("Telmex").............. 3,521,340
40,088,020 Telesp - Telecomunicacoes de Sao Paulo S.A. ........ 998,925
-----------
8,319,894
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Electric Utilities - 2.2%
36,879 * Centrais Eletricas Brasileiras SA, ADR............. $ 273,867
488,000 Chilgener SA......................................... 96,606
11,100 Companhia Brasileira De Distr, ADR................... 316,350
-----------
686,823
-----------
Food & Drug Retailing - 0.7%
25,000 Embotelladora Andina SA.............................. 49,976
19,784 * Santa Isabel SA, ADR............................... 168,164
-----------
218,140
-----------
Food Products - 3.2%
844,000 Cia Cervejaria Brahma................................ 612,374
134,282 Grupo Industrial Bimbo, Ser. A....................... 173,810
33,700 Souza Cruz Cia SA.................................... 205,317
-----------
991,501
-----------
Industrial Conglomerates - 1.8%
103,254 * ALFA SA de CV, Ser. A.............................. 319,309
67,900 Grupo Carso SA de CV, Ser. A1........................ 230,903
-----------
550,212
-----------
Machinery - 0.0%
76,320 Inepar Energia SA (b)................................ 0
-----------
Media - 6.8%
21,631 * Grupo Televisa SA, ADR............................. 1,372,216
68,200 * TV Azteca SA de CV, ADR............................ 750,200
-----------
2,122,416
-----------
Metals & Mining - 7.1%
10,460,000 Caemi Mineracao E Metalurgia SA...................... 950,119
31,900 Companhia Vale do Rio Doce, ADR...................... 790,230
115,588 * Hylsamex SA de CV, Ser. B.......................... 211,277
111,000 * Siderca SA......................................... 238,813
-----------
2,190,439
-----------
Multi-Utilities - 1.3%
89,091 Petroleos de Chile SA................................ 397,689
-----------
Oil & Gas - 5.5%
71,550 * Petroleo Brasileiro SA, ADR ("Petrobras").......... 1,695,120
-----------
Paper & Forest Products - 2.9%
20,900 Aracruz Celulose SA.................................. 390,569
20,000 Empresas CMPC........................................ 232,897
81,205 * Kimberly Clark Corp. de Mexico SA de CV, Cl. A..... 261,478
-----------
884,944
-----------
</TABLE>
67
<PAGE>
EVERGREEN
Latin America Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Real Estate - 1.0%
132,489 * Corporacion GEO SA de CV, Ser. B................... $ 304,119
-----------
Specialty Retail - 6.7%
349,100 * Grupo Elektra SA de CV............................. 341,309
143,300 * Organizacion Soriana, Ser. B....................... 571,068
507,888 Wal-Mart de Mexico SA de CV.......................... 1,171,219
-----------
2,083,596
-----------
Wireless Telecommunications Services - 2.8%
13,600 * Tele Centro Sul Participacoes SA, ADR.............. 867,000
-----------
Total Common Stocks
(cost $19,363,735).................................. 28,131,412
-----------
PREFERRED STOCKS - 5.6%
Aerospace & Defense - 5.1%
303,323 Embraer-Empresa Brasileira de Aeronautica SA......... 1,587,595
-----------
Machinery - 0.0%
38,160 Inepar Energia SA (b)................................ 0
-----------
Metals & Mining - 0.5%
32,800 Usinas Siderurgicas de Minas Gerais SA (Usiminas).... 137,159
-----------
Total Preferred Stocks
(cost $507,831)..................................... 1,724,754
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
WARRANTS - 0.0%
Construction Materials - 0.0%
2,219 * Cemex SA de CV, ADR, expire 12/13/2002 (cost
$3,883)............................................ $ 6,102
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C> <C>
REPURCHASE AGREEMENT - 3.1%
$ 949,000 Evergreen Joint Repurchase Agreement, Investments
in repurchase agreements, in a joint trading
account, purchased 4/28/2000, 5.80%, maturing
5/1/2000, maturity value $949,459 (cost $949,000)
(a)................................................ 949,000
-----------
Total Investments -
(cost $20,824,449).......................... 99.5% 30,811,268
Other Assets and
Liabilities - net........................... 0.5 153,143
----- -----------
Net Assets................................... 100.0% $30,964,411
===== ===========
</TABLE>
(a) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest at
April 30, 2000.
(b) Security is being fair valued in accordance with procedures established by
the Board of Trustees.
* Non-income producing security.
Summary of Abbreviations
ADR American Depository Receipts
GDR Global Depository Receipts
See Combined Notes to Financial Statements.
68
<PAGE>
EVERGREEN
Latin America Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
At April 30, 2000, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
Mexico............................................ $15,010,393 48.7%
Brazil............................................ 12,242,305 39.7%
Chile............................................. 1,345,356 4.4%
Argentina......................................... 955,627 3.1%
Cash & Cash Equivalents........................... 949,000 3.1%
Peru.............................................. 157,381 0.5%
Venezuela......................................... 151,206 0.5%
----------- ------
$30,811,268 100.0%
=========== ======
</TABLE>
See Combined Notes to Financial Statements.
69
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 94.5%
Aerospace & Defense - 0.4%
58,000 British Aerospace Plc.............................. $ 356,697
78,666 Meggitt Plc........................................ 181,882
131,000 Rolls-Royce Plc.................................... 499,703
------------
1,038,282
------------
Air Freight & Couriers - 0.4%
45,620 TNT Post Group NV.................................. 995,355
------------
Airlines - 0.5%
36,000 British Airways Plc................................ 188,329
49,264 Lufthansa AG (a)................................... 1,023,358
------------
1,211,687
------------
Auto Components - 0.1%
50,697 BBA Group Plc...................................... 311,784
------------
Automobiles - 1.2%
22,000 Brilliance China Automotive (a).................... 357,500
50,000 Honda Motor Co., Ltd............................... 2,235,801
40,000 Mahindra & Mahindra, Ltd., GDR..................... 260,000
------------
2,853,301
------------
Banks - 4.2%
30,650 Abbey National Bank Plc............................ 349,792
27,000,000 Banco Bradesco SA.................................. 197,397
3,200 Banco de Galicia y Buenos Aires SA de CV, Cl. B,
ADR (a)........................................... 55,400
68,000 Bangkok Bank Public Co., Ltd....................... 115,224
29,000 Bank of Scotland................................... 258,267
60,000 BankAmerica Corp................................... 2,940,000
16,720 Barclays Bank Plc.................................. 427,709
124,553 Dah Sing Financial Group........................... 487,709
35,000 DBS Group Holdings................................. 481,981
21,319 FleetBoston Financial Corp......................... 755,492
51,000 Grupo Financiero Banamex AC, Ser. O................ 184,272
59,000 Grupo Financiero Banorte SA de CV, Ser. O.......... 80,255
10,000 Housing & Commercial Bank, GDR..................... 172,250
49,000 Lloyds TSB Group Plc............................... 478,342
1 Overseas Chinese Bank, Ltd......................... 7
125,810 Overseas Union Bank, Ltd........................... 575,047
2,872,000 PT Bank Nisp....................................... 118,152
200,000 Public Bk Bhd...................................... 278,947
27,346 Royal Bank of Scotland Group Plc................... 426,615
25,075 Standard Chartered Bank............................ 338,482
2,000 Taipei Fund, GDR................................... 210,000
5,800 Uniao de Bancos Brasileiros SA, GDR ("Unibanco")... 144,638
100,000 * United Engineers, Ltd. Berhad.................... 257,895
37,200 Zagrebacka Banka D.D., GDR......................... 527,931
------------
9,861,804
------------
Beverages - 0.8%
12,000 * Al-Ahram Beverage Co. SA, GDR.................... 213,064
13,000 Anheuser Busch Companies, Inc...................... 917,312
20,585 Bass Plc........................................... 241,175
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Beverages - continued
6,800 Coca-Cola Co. Femsa SA, ADR (a)..................... $ 126,225
6,700 Companhia Cervejaria Brahma, ADR (a)................ 103,850
28,000 Diageo Plc.......................................... 225,820
2,900 Fomento Economico Mexicano, Ser. B, ADR............. 119,625
------------
1,947,071
------------
Biotechnology - 0.1%
18,000 * Celltech Group Plc, Cl. F......................... 297,066
------------
Building Products - 0.7%
3,026 Geberit International AG............................ 980,855
26,000 York International Corp............................. 627,250
------------
1,608,105
------------
Chemicals - 1.2%
19,832 Akzo Nobel NV (a)................................... 811,858
1,000 Asahi Chemical Industry Co., Ltd.................... 5,758
14,600 Rohm & Haas Co...................................... 520,125
30,000 Shin Etsu Chemical Co., Ltd......................... 1,585,891
------------
2,923,632
------------
Commercial Services &
Supplies - 7.3%
7,916 * Atos SA........................................... 855,656
61,675 * Avenir ASA........................................ 571,415
60,000 Canon, Inc.......................................... 2,744,063
3,488 Cap Gemini NV....................................... 684,923
14,400 Concord EFS, Inc.................................... 322,200
33,500 Electronic Data Systems Corp........................ 2,303,125
60,664 * ITG Group Plc..................................... 690,474
37,800 * Republic Services, Inc., Cl. A.................... 517,388
140,000 Ricoh Co., Ltd. (a)................................. 2,955,145
17,000 Secom Co., Ltd...................................... 1,425,913
51,550 Securicor Plc....................................... 102,934
8,812 * Telegate SA (a)................................... 1,113,527
250,000 Toppan Printing Co., Ltd............................ 2,615,378
16,900 Waste Management, Inc............................... 268,288
------------
17,170,429
------------
Communications
Equipment - 4.7%
200 Bookham Technology.................................. 9,108
29,300 * Cisco Systems, Inc................................ 2,031,314
15,000 Datacraft Asia, Ltd................................. 112,500
41,975 LM Ericsson Telephone, Ser. B....................... 3,731,215
29,250 Lanoptics, Ltd...................................... 292,500
13,200 Lucent Technologies, Inc............................ 820,875
4,700 Motorola, Inc....................................... 559,594
59,622 Nokia OJY........................................... 3,420,169
14,600 World Access, Inc................................... 229,950
------------
11,207,225
------------
Computers & Peripherals - 2.1%
16,000 Compal Electronic, GDR.............................. 224,400
31,500 Compaq Computer Corp................................ 921,375
</TABLE>
70
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Computers & Peripherals - continued
9,150 * Dell Computer Corp................................ $ 458,644
5,800 Hon Hai Precision Industry Co., Ltd., GDR........... 161,965
11,200 International Business Machines Corp................ 1,250,200
10,300 Ritek Corp., GDR.................................... 195,957
10,400 * Sun Microsystems, Inc............................. 956,150
33,700 * Unisys Corp....................................... 781,419
------------
4,950,110
------------
Construction Materials - 1.6%
5,360 * Cemex SA de CV, Ser. B, ADR....................... 117,250
89,280 CRH Plc............................................. 1,428,494
11,195 Imerys SA........................................... 1,323,059
11,750 Lafarge SA.......................................... 973,123
------------
3,841,926
------------
Containers & Packaging - 1.1%
31,275 Ifco Systems NV (a)................................. 759,137
20,892 Pechiney SA......................................... 915,459
60,200 * Smurfit Container Corp. (a)....................... 918,050
------------
2,592,646
------------
Distributors - 1.9%
39,900 Arrow Electronics, Inc.............................. 1,748,119
49,152 Buhrmann NV......................................... 1,266,794
26,900 * Kent Electronics Corp............................. 785,144
13,600 Synnex Technology International Corp., GDR.......... 360,400
46,622 Wolseley Plc........................................ 255,510
------------
4,415,967
------------
Diversified Financials - 8.2%
408,000 Aeon Credit Service Co., Ltd........................ 151,903
9,000 Aiful Corp.......................................... 908,207
4,500 Aiful Corp.......................................... 495,765
22,100 Associates First Capital Corp., Cl. A............... 490,344
20,000 Atlantic Korean Smaller Cy Fund..................... 290,000
25,000 Boustead Holdings Berhad............................ 25,132
27,000 Citigroup, Inc...................................... 1,604,812
14,200 Federal Home Loan Mortgage Assn..................... 652,312
10,300 Federal National Mortgage Assn...................... 621,219
43,000 Fleming Russia Securities Fund, Ltd................. 700,040
5,000 Formosa Growth Fund, Ltd............................ 137,875
20,562 Fortis (B).......................................... 519,102
9,100 Household International, Inc........................ 379,925
40,312 HSBC Holdings Plc (a)............................... 451,551
111,000 Hutchison Whampoa, Ltd.............................. 1,610,307
11,000 Indian Opportunities Fund........................... 162,800
26,729 ING Groep NV (a).................................... 1,458,446
67,060 Irish Life & Permanent Plc.......................... 555,133
160,000 Kokusai Securities Co., Ltd. (a).................... 2,281,165
30,000 Lonrho Plc.......................................... 306,641
10,440 Orix Corp........................................... 1,490,393
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Diversified Financials - continued
805 Sulzer AG.......................................... $ 515,334
30,000 Taiwan Opportunities Fund LT....................... 480,000
25,374 Veba AG (a)........................................ 1,273,326
17,612 Vivendi SA (a)..................................... 1,742,004
------------
19,303,736
------------
Diversified Telecommunication Services - 7.9%
9,500 Adelphia Communications Corp., Cl. A (a)........... 470,844
55,267 AT&T Corp.......................................... 2,580,278
18,200 AT&T Wireless Group................................ 578,987
50,200 Bell Atlantic Corp................................. 2,974,350
19,000 Cable & Wireless Plc............................... 315,345
48,000 Carso Global Telecom, Ser. A1...................... 127,524
5,700 Compania de Telecom de Chile SA, ADR............... 105,450
5,600 * Embratel Participacoes SA, ADR................... 126,000
42,070 * Global TeleSystems Group, Inc. (a)............... 612,644
18,800 GTE Corp........................................... 1,273,700
15,000 Hellenic Telecommunications Organization SA (OTE),
ADR (a)........................................... 175,312
11,000 Hellenic Telecommunications Organization SA, GDR... 247,629
180,000 Indosat, ADR....................................... 238,671
5,000 Korea Telecom Corp................................. 172,500
17,000 Mahanagar Telep Ni, GDR............................ 216,750
5,500 * Matav Rt., ADR................................... 191,469
20,100 * MCI WorldCom, Inc................................ 913,294
290 Nippon Telegraph & Telephone Corp.................. 3,597,649
3,800 Nuevo Gurpo Iusacell SA de CV, ADR (a)............. 60,563
6,200 SBC Communications, Inc............................ 271,637
20,900 Tele Centro Oeste Celular Participacoes SA, ADR
(a)............................................... 240,350
8,490 Tele Norte Leste Participacoes SA, ADR............. 151,226
58,486 Telecel-Comunicacoes Pessoais, SA.................. 925,151
1,800 Telecom Argentina - France Telecom SA, Cl. B, ADR
(a)............................................... 50,288
64,004 * Telefonica SA.................................... 1,424,394
10,580 Telefonos de Mexico SA, ADR ("Telmex") (a)......... 622,236
------------
18,664,241
------------
Electric Utilities - 2.0%
8,000 BSES, Ltd., GDR.................................... 136,000
60,000 Cez................................................ 174,318
6,700 Empresa Nacional de Electric, ADR (a).............. 77,050
46,780 Endesa SA.......................................... 1,020,665
26,000 Powergen Plc....................................... 163,542
32,000 Scot & Southern Energy Plc......................... 275,020
20,000 Scottish Power Plc................................. 159,799
1,500 Tata Electric Companies, GDR....................... 150,000
</TABLE>
71
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Electric Utilities - continued
100,000 The Tokyo Electric Power Co., Inc.................. $ 2,360,783
13,947 United Utilities Plc............................... 134,849
------------
4,652,026
------------
Electrical Equipment - 2.5%
97,250 Elexis AG.......................................... 707,280
12,072 Entrelec Groupe SA................................. 609,093
18,000 Mabuchi Motor Co................................... 1,983,058
32,675 Molex, Inc., Class A (a)........................... 1,307,000
19,132 Schneider Electric SA.............................. 1,252,289
------------
5,858,720
------------
Electronic Equipment & Instruments - 3.6%
28,275 ELMOS Semiconductor AG............................. 1,143,864
12,643 Epcos AG........................................... 1,781,531
107,000 Hitachi, Ltd....................................... 1,277,878
12,000 Kyocera Corp....................................... 2,007,499
12,100 Optibase, Ltd...................................... 229,144
37,140 Stonesoft Oyj...................................... 692,161
1,000,000 TCL International Holdings, Ltd.................... 603,400
6,000 TDK Corp........................................... 803,777
------------
8,539,254
------------
Energy Equipment &
Services - 1.6%
16,600 Grant Pride, Inc................................... 319,550
21,000 Halliburton Co..................................... 927,937
15,990 IHC Caland NV...................................... 646,875
75,490 Petroleum Geo-Services (a)......................... 1,179,729
16,600 * Weatherford International, Inc................... 674,375
------------
3,748,466
------------
Food & Drug Retailing - 0.5%
4,200,000 Companhia Brasileira de Distribuicao Grupo Pao de
Acucar............................................ 119,801
267,940 Fyffes............................................. 450,631
35,000 Sainsbury (J.) Plc................................. 182,552
102,400 Tesco Plc.......................................... 348,358
------------
1,101,342
------------
Food Products - 0.2%
155,000 Kerry Properties................................... 191,034
93,400 Northern Foods Plc................................. 147,600
41,000 Unilever Plc....................................... 246,403
------------
585,037
------------
Gas Utilities - 1.0%
37,333 BG Group Plc....................................... 225,382
69,330 Gas Natural Sdg.................................... 1,159,714
30,000 Kinder Morgan, Inc................................. 909,375
------------
2,294,471
------------
Health Care Equipment & Supplies - 0.2%
43,500 Nycomed Amersham Plc............................... 331,864
6,100 * Sybron International Corp........................ 189,863
------------
521,727
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Health Care Providers &
Services - 1.0%
26,000 Cardinal Health, Inc................................ $ 1,431,625
110,400 * HEALTHSOUTH Corp.................................. 890,100
------------
2,321,725
------------
Hotels, Restaurants & Leisure - 0.5%
749,000 Cafe De Coral Holdings, Ltd......................... 269,245
13,000 Carnival Corp., Cl. A............................... 323,375
64,000 First Choice Holidays Plc........................... 132,029
68,412 Hilton Group Plc.................................... 287,588
40,000 Resorts World Berhad................................ 129,474
559 Sodexho Alliance.................................... 83,749
------------
1,225,460
------------
Household Durables - 1.4%
100,300 Fairview Holdings Plc............................... 245,175
62,874 Koninklijke (Royal) Philips Electronics N.V......... 2,804,780
37,000 Sanyo Electric Co., Ltd............................. 246,975
50,000 Taylor Woodrow...................................... 122,610
------------
3,419,540
------------
Industrial Conglomerates - 2.1%
80,000 Citic Pacific, Ltd.................................. 367,689
24,800 Grupo Carso SA de CV, Ser. A1....................... 84,336
18,200 Honeywell International, Inc........................ 1,019,200
51,000 Johnson Electric Holdings, Ltd...................... 409,220
55,000 NatSteel Electronics, Ltd. (a)...................... 315,851
9,741 Siemens AG.......................................... 1,443,454
31,100 Tyco International, Ltd............................. 1,428,656
------------
5,068,406
------------
Insurance - 1.8%
6,900 AXA................................................. 1,023,092
19,000 Britannic Assurance Plc............................. 256,772
6,800 Chubb Corp.......................................... 432,650
40,000 Legal & General Group Plc........................... 104,627
34,200 Metlife, Inc. (a)................................... 566,438
4,300 Munchener Ruckvers.................................. 1,260,694
14,750 Prudential Corp. Plc................................ 226,206
39,330 Sun Life & Provincial Holdings Plc.................. 281,680
------------
4,152,159
------------
Internet Software &
Services - 0.8%
16,600 * America Online, Inc............................... 992,887
18,300 Marchfirst, Inc..................................... 390,019
3,300 Starmedia Network, Inc. (a)......................... 72,188
2,300 VeriSign, Inc....................................... 320,562
------------
1,775,656
------------
Leisure Equipment &
Products - 0.4%
450,000 e-New Media Co., Ltd................................ 72,215
23,020 Infogrames Entertainment SA (a)..................... 650,845
9,400 Intranet Solutions, Inc. (a)........................ 209,150
------------
932,210
------------
</TABLE>
72
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Machinery - 1.8%
7,770 Coflexip SA (a)..................................... $ 755,817
31,400 Fuji Machine Manufacturing Co., Ltd................. 2,183,160
27,150 Konecranes International (a)........................ 900,895
7,500 Larsen & Toubro, Ltd., GDR.......................... 101,250
7,500 Larsen & Toubro, Ltd., GDS.......................... 101,250
25,500 TI Group Plc........................................ 138,561
------------
4,180,933
------------
Marine - 0.2%
17,000 P & O Finance BV.................................... 168,073
32,750 Smith (H.W.) Group Plc.............................. 185,731
------------
353,804
------------
Media - 4.2%
108,000 ABS-CBN Broadcasting Corp........................... 128,182
9,600 * AMFM, Inc......................................... 637,200
50,000 BEC World Public Co., Ltd........................... 328,386
27,200 Benpres Holdings Corp., GDR, 144A................... 95,200
48,000 * CBS Corp.......................................... 2,820,000
17,500 * Cox Communications, Inc., Cl. A (a)............... 749,219
20,400 Daily Mail & General Trust, Cl. A................... 317,618
16,000 Disney (Walt) Co.................................... 693,000
5,000 Globo Cabo SA, ADR (a).............................. 84,375
2,260 * Grupo Televisa SA, ADR............................ 143,369
40,607 Gruppo Editoriale L'Espresso (a).................... 572,195
340 Imako Publications.................................. 7,902
60,000 Nanyang Press Holdings.............................. 149,210
1,550,000 Oriental Press Group................................ 318,390
240,000 Shaw Brothers (Hong Kong), Ltd...................... 246,495
32,000 * Singapore Press Holdings, Ltd..................... 626,311
289 Societe Television Francaise 1...................... 197,836
11,500 Trinity Mirror Plc.................................. 89,256
7,000 TV Azteca SA de CV, ADR (a)......................... 77,000
30,230 VNU NV.............................................. 1,617,321
------------
9,898,465
------------
Metals & Mining - 1.6%
30,300 Barrick Gold Corp................................... 509,419
23,670 Eramet SLN.......................................... 1,124,336
5,000 Hindalco Industries Ltd., GDR, 144A................. 82,500
25,000 Johnson Matthey Plc................................. 329,101
9,600 Phelps Dodge Corp................................... 444,000
42,700 Placer Dome, Inc.................................... 346,937
17,000 Pohang Iron & Steel, Ltd., ADR...................... 357,000
12,850 Rio Tinto Plc....................................... 200,068
30,000 Sasol, Ltd., ADR (a)................................ 172,500
576,000 Yanzhou Coal Mining Co., Ltd........................ 115,360
------------
3,681,221
------------
Multi-line Retail - 1.1%
30,000 * Costco Wholesale Corp............................. 1,621,875
44,326 Next Plc............................................ 346,792
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Multi-line Retail - continued
35,000 Selfridges Plc...................................... $ 147,056
7,500 Target Corp......................................... 499,219
------------
2,614,942
------------
Oil & Gas - 4.5%
10,000 Amerada Hess Corp................................... 636,250
14,100 Burlington Resources, Inc........................... 554,306
27,500 * Canadian Natural Resources, Ltd................... 733,507
42,000 Enterprise Oil Plc.................................. 308,650
13,500 EOG Resources, Inc.................................. 335,812
30,000 Exxon Mobil Corp.................................... 2,330,625
35,327 PC Holdings SA...................................... 53,734
910,000 Petroleo Brasileiro SA.............................. 216,777
21,620 Royal Dutch Petroleum Co. (a)....................... 1,246,111
96,000 Shell Transportation & Trading Co. Plc.............. 786,572
13,000 Talisman Energy, Inc................................ 387,568
12,800 Tosco Corp.......................................... 410,400
15,980 Total Fina SA, Class B.............................. 2,424,626
3,760,000 Tupras-Turkiye Petrol Rafinerileri AS............... 258,276
------------
10,683,214
------------
Paper & Forest Products - 1.1%
38,930 Empresa Nacional de Celulosas SA.................... 720,212
22,400 International Paper Co.............................. 823,200
25,800 Mead Corp........................................... 898,163
64,900 Siam Pulp & Paper................................... 161,973
------------
2,603,548
------------
Personal Products - 0.2%
453 L'Oreal............................................. 307,220
19,100 Reckitt Benckiser Plc............................... 196,492
------------
503,712
------------
Pharmaceuticals - 3.0%
13,200 Abbott Laboratories................................. 507,375
15,700 American Home Products Corp......................... 882,144
225,000 British Biotech..................................... 94,585
807,500 Dankos Labs......................................... 81,772
38,900 * Elan Corp. Plc, ADR (a)........................... 1,667,837
14,600 Johnson & Johnson................................... 1,204,500
12,300 Merck & Co., Inc.................................... 854,850
7,600 Merck Kgaa.......................................... 218,329
2,000 PowderJect Pharmaceuticals Plc...................... 13,763
17,000 Sankyo Co........................................... 374,578
75,000 Slovakofarma Reg S, GDR............................. 199,313
5,900 Warner-Lambert Co................................... 671,494
9,000 Zeneca Group........................................ 377,358
------------
7,147,898
------------
Real Estate - 0.7%
500,000 Amoy Properties, Ltd. (a)........................... 349,844
180,000 Burford Holdings Plc................................ 231,067
17,000 Chelsfield Plc...................................... 75,130
52,000 Cheung Kong Holdings, Ltd. ......................... 620,860
</TABLE>
73
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Real Estate - continued
16,000 Corporacion GEO SA de CV, Ser. B................... $ 36,727
18 Inversiones y Representaciones, SA, GDR............ 534
28,000 Land Securities Plc................................ 337,858
------------
1,652,020
------------
Road & Rail - 0.1%
16,600 Railtrack Group Plc................................ 213,224
------------
Semiconductor Equipment & Products - 2.4%
33,700 Be Semiconductor I................................. 683,197
18,700 Galileo Technology, Ltd............................ 328,419
4,600 * LSI Logic Corp................................... 287,500
25,000 Mirae Corp., ADR................................... 237,500
12,600 * National Semiconductor Corp...................... 765,450
1,800 Orbotech, Ltd...................................... 153,450
4,600 Rohm Co., Ltd...................................... 1,541,638
2,153 Samsung Electronics, Ltd., GDR, 144A............... 345,018
3,575 * Samsung Electronics, Ltd., GDR, 144A, non-voting
shares............................................ 290,022
7,257 Taiwan Semiconductor Manufacturing Co., Ltd.,
ADR (a)........................................... 379,632
20,000 Winbond Electronics Corp., GDR..................... 631,000
------------
5,642,826
------------
Software - 3.9%
15,000 Autodesk, Inc...................................... 575,625
18,500 * BMC Software, Inc................................ 866,031
43,700 Computer Associates International, Inc. ........... 2,439,006
39,100 * Microsoft Corp. ................................. 2,727,225
6,200 * Oracle Systems Corp.............................. 495,613
19,100 * Rational Software Corp. ......................... 1,625,888
52,000 Sapiens International Corp. NV (a)................. 412,750
80,000 Singapore Computer................................. 178,142
------------
9,320,280
------------
Specialty Retail - 1.6%
16,000 Grupo Elektras A De CV............................. 162,000
4,600 Home Depot, Inc.................................... 257,888
428,500 Signet Group Plc................................... 386,949
50,000 * Staples, Inc..................................... 953,125
13,500 Tandy Corp......................................... 769,500
52,000 * Toys "R" Us, Inc................................. 793,000
19,530 Trader.Com NV (a).................................. 324,911
101,000 Wal-Mart de Mexico SA de CV........................ 232,912
------------
3,880,285
------------
Tobacco - 1.0%
59,500 British America Tobacco Industries Plc............. 370,554
31,000 Philip Morris Cos., Inc. .......................... 678,125
36,000 PT Bat Indonesia Tbk............................... 138,988
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Tobacco - continued
150,000 PT HM Sampoerna..................................... $ 217,880
89,798 Tabacalera, Ser. A (a).............................. 1,055,545
------------
2,461,092
------------
Trading Companies & Distributors - 0.9%
720,000 Marubeni Corp....................................... 2,086,377
------------
Transportation Infrastructure - 0.4%
10,722 Autopistas del Mare Nostrum SA...................... 158,882
77,785 Autopistas, Concesionaria Espanola SA............... 685,929
------------
844,811
------------
Wireless Telecommunications Services - 1.8%
189,000 China Telecom (Hong Kong), Ltd...................... 1,352,738
40,000 Smartone Telecom.................................... 125,045
2,300 Tele Centro Sul Participacoes SA, ADR............... 146,625
1,800 Telemig Celular Participacoes, ADR (a).............. 105,300
2,300 Telesp Celular Participacoes SA, ADR................ 101,488
505,287 Vodafone Airtouch Plc............................... 2,312,919
------------
4,144,115
------------
Total Common Stocks (cost $207,745,910)............. 223,303,333
------------
CONVERTIBLE DEBENTURES - 0.0%
Pharmaceuticals - 0.0%
Scotia Holdings
19,000 8.50%, 3/26/2002 (cost $31,417)..................... 25,884
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS - 0.0%
Energy Equipment & Services - 0.0%
BG Transco Holdings Plc:
$ 5,000 1.00%, 12/14/2022................................... 7,669
5,000 7.00%, 12/16/2024................................... 7,786
5,000 7.06%, 12/14/2009................................... 7,836
------------
Total Corporate Bonds (cost $26,949)................ 23,291
------------
<CAPTION>
Shares Value
<C> <S> <C>
PREFERRED STOCKS - 0.6%
Automobiles - 0.5%
475 Porsche AG.......................................... 1,209,535
------------
</TABLE>
74
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
PREFERRED STOCKS - (continued)
Metals & Mining - 0.1%
3,200 Compania Vale do Rio Doce Navegacao SA.............. 79,224
------------
Total Preferred Stocks (cost $1,018,104)............ 1,288,759
------------
WARRANTS - 0.1%
Banks - 0.1%
300,000 * Deutsche Bank AG, expire 3/28/2002................ $ 219,748
------------
Construction Materials - 0.0%
335 * Cemex SA de CV, ADR, expire 12/13/2002............ 921
------------
Total Warrants
(cost $155,162).................................... $ 220,669
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 13.3%
Mutual Fund Shares - 11.2%
26,424,842 Navigator Prime Portfolio
(cost $26,424,842) (b)............................. $ 26,424,842
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 2.1%
$ 4,973,097 State Street Bank & Trust Co., 5.67%, purchased
4/28/2000, maturing 5/1/2000, maturity value
$4,975,447 (cost $4,973,097) (c).................. 4,973,097
------------
Total Short-Term Investments (cost $31,397,939).... 31,397,939
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments - (cost $240,375,481).... 108.5% 256,259,875
Other Assets and Liabilities - net.......... (8.5) (20,041,606)
----- ------------
Net Assets.................................. 100.0% $236,218,269
===== ============
</TABLE>
(a) All or a portion of this security is on loan.
(b) Represents investment of cash collateral received for securities on loan.
(c) The repurchase agreement is fully collateralized by $5,015,000 FNMA, 6.40%,
12/21/2001 value plus accrued interest $5,076,995.
* Non-income producing security.
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 Receipts
GDR Global Depository Receipts
GDS Global Depository Shares
At April 30, 2000, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percentage of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
United States+.................................... $109,551,773 42.7%
Japan............................................. 37,206,849 14.5%
United Kingdom.................................... 18,154,905 7.1%
France............................................ 15,248,038 5.9%
Netherlands....................................... 12,289,875 4.8%
Germany........................................... 11,787,543 4.6%
Hong Kong......................................... 6,899,199 2.7%
Spain............................................. 6,225,341 2.4%
Finland........................................... 5,013,226 2.0%
Ireland........................................... 4,792,569 1.9%
Sweden............................................ 3,731,215 1.5%
Taiwan............................................ 2,781,229 1.1%
Singapore......................................... 2,509,587 1.0%
Mexico............................................ 2,175,214 0.8%
Canada............................................ 1,977,431 0.8%
Other Countries................................... 15,915,881 6.2%
------------ ------
$256,259,875 100.0%
============ ======
</TABLE>
+ Includes short-term investments.
See Combined Notes to Financial Statements.
75
<PAGE>
EVERGREEN
Perpetual International Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 92.5%
Aerospace & Defense - 0.7%
20,000 Alvis Plc............................................ $ 30,205
81,200 British Aerospace Plc................................ 499,377
103,000 Meggitt Plc.......................................... 238,143
165,000 Rolls-Royce Plc...................................... 629,397
76,000 Singapore Tech Eng................................... 106,886
------------
1,504,008
------------
Air Freight & Couriers - 0.8%
72,625 TNT Post Group NV.................................... 1,584,561
------------
Airlines - 0.7%
62,800 British Airways Plc.................................. 328,529
55,769 Lufthansa AG (a)..................................... 1,158,486
------------
1,487,015
------------
Auto Components - 0.2%
70,645 BBA Group Plc........................................ 434,464
------------
Automobiles - 1.9%
24,000 Brilliance China Automotive (a)...................... 390,000
80,000 Honda Motor Co., Ltd................................. 3,577,281
16,000 Mahindra & Mahindra, Ltd., GDR....................... 104,000
------------
4,071,281
------------
Banks - 3.7%
80,400 Abbey National Bank Plc.............................. 917,561
17,300 Banco Bradesco SA (a)................................ 116,775
3,100 Banco de Galicia y Buenos Aires SA de CV, Class B,
ADR................................................. 53,669
68,000 Bangkok Bank Public Co., Ltd......................... 115,224
54,000 Bank of Scotland..................................... 480,911
25,770 Barclays Bank Plc.................................... 659,215
55,000 Commerce Asset Holding Berhad........................ 154,868
89,994 Dah Sing Financial Group............................. 352,388
15,000 DBS Group Holdings................................... 206,563
38,000 Grupo Financiero Banamex AC, Ser. O.................. 137,301
47,000 Grupo Financiero Banorte SA de CV, Ser. O............ 63,932
20,000 Housing & Commercial Bank, GDR....................... 344,500
93,500 Lloyds TSB Group Plc................................. 912,755
31,300 Overseas Chinese Bank, Ltd........................... 214,597
157,372 Overseas Union Bank, Ltd............................. 719,309
2,144,000 PT Bank Nisp......................................... 88,202
250,000 Public Bank Bhd...................................... 348,684
38,332 Royal Bank of Scotland Group Plc..................... 598,004
46,350 Standard Chartered Bank.............................. 625,668
400 Taipei Fund, GDR..................................... 42,000
5,100 Uniao de Bancos Brasileiros SA, GDR ("Unibanco")
(a)................................................. 127,181
46,000 * United Engineers, Ltd. Berhad...................... 118,632
27,700 Zagrebacka Banka D.D., GDR........................... 393,110
------------
7,791,049
------------
Beverages - 0.7%
8,000 * Al-Ahram Beverage Co. SA, GDR...................... 142,043
35,299 Bass Plc............................................. 413,565
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Beverages - continued
6,000 Coca-Cola Co. Femsa SA, ADR (a)....................... $ 111,375
5,300 Companhia Cervejaria Brahma, ADR (a).................. 82,150
49,500 Diageo Plc............................................ 399,218
2,300 Fomento Economico Mexicano, Ser. B, ADR (a)........... 94,875
28,200 Scot & Newcastle...................................... 206,358
------------
1,449,584
------------
Biotechnology - 0.3%
31,522 * Celltech Group Plc, Cl. F........................... 520,229
------------
Building Products - 0.5%
3,483 Geberit International AG.............................. 1,128,988
------------
Chemicals - 2.3%
32,020 Akzo Nobel NV (a)..................................... 1,310,795
2,000 Asahi Chemical Industry Co., Ltd...................... 11,517
50,000 Imperial Chemical Industries Plc...................... 428,162
60,000 Shin Etsu Chemical Co., Ltd........................... 3,171,782
------------
4,922,256
------------
Commercial Services & Supplies - 7.7%
9,468 * Atos SA............................................. 1,023,415
69,198 * Avenir ASA.......................................... 641,116
70,000 Canon, Inc............................................ 3,201,407
3,908 Cap Gemini NV......................................... 767,397
5,575 Enea Data AB.......................................... 981,812
77,282 * ITG Group Plc....................................... 879,618
120,000 Ricoh Co., Ltd. (a)................................... 2,532,981
28,000 Secom Co., Ltd........................................ 2,348,563
92,750 Securicor Plc......................................... 185,202
9,879 * Telegate SA (a)..................................... 1,248,359
225,000 Toppan Printing Co., Ltd.............................. 2,353,840
------------
16,163,710
------------
Communications Equipment - 4.6%
360 Bookham Technology.................................... 16,395
15,000 Datacraft Asia, Ltd................................... 112,500
54,480 LM Ericsson Telephone, Ser. B......................... 4,842,802
17,550 Lanoptics, Ltd........................................ 175,500
77,764 Nokia OJY............................................. 4,460,870
------------
9,608,067
------------
Computers & Peripherals - 1.9%
32,000 Compal Electronic, GDR................................ 448,800
200,000 Computer & Technologies Holdings, Ltd................. 228,522
5,800 Hon Hai Precision Industry Co., Ltd., GDR............. 161,965
105,000 NEC Corp.............................................. 2,857,936
10,300 Ritek Corp., GDR...................................... 195,957
------------
3,893,180
------------
Construction Materials - 2.1%
4,000 * Cemex SA de CV, Ser. B, ADR (a)..................... 87,500
99,169 CRH Plc............................................... 1,586,720
</TABLE>
76
<PAGE>
EVERGREEN
Perpetual International Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Construction Materials - continued
13,030 Imerys SA............................................ $ 1,539,924
15,000 Lafarge SA........................................... 1,242,285
------------
4,456,429
------------
Containers & Packaging - 0.9%
38,665 Ifco Systems (a)..................................... 938,514
23,710 Pechiney SA.......................................... 1,038,940
------------
1,977,454
------------
Distributors - 1.3%
55,168 Buhrmann NV.......................................... 1,421,844
100,000 Li & Fung............................................ 390,284
17,200 Synnex Technology International Corp., GDR........... 455,800
65,622 Wolseley Plc......................................... 359,639
------------
2,627,567
------------
Diversified Financials - 8.6%
300,000 Aeon Credit Service Co., Ltd......................... 111,693
23,100 Aiful Corp........................................... 2,402,352
5,000 Atlantic Korean Smaller Cy Fund...................... 72,500
3,000 Boustead Holdings Berhad............................. 3,016
37,000 Fleming Russia Securities Fund, Ltd.................. 602,360
21,917 Fortis (B)........................................... 553,310
50,230 HSBC Holdings Plc (a)................................ 562,647
91,000 Hutchison Whampoa, Ltd............................... 1,320,161
33,766 ING Groep NV (a)..................................... 1,842,414
100,000 Irish Life & Permanent Plc........................... 827,815
130,000 Kokusai Securities Co., Ltd. (a)..................... 1,853,446
45,000 Lonrho Plc........................................... 459,962
20,280 Orix Corp............................................ 2,895,131
100,837 Schroder Uts Limited................................. 56,826
860 Sulzer AG............................................ 550,544
26,000 Taiwan Opportunities Fund LT......................... 416,000
26,889 Veba AG (a).......................................... 1,349,352
21,579 Vivendi SA (a)....................................... 2,134,381
------------
18,013,910
------------
Diversified Telecommunication Services - 5.1%
174,000 Asia Satellite Telecommunications Holdings, Ltd...... 543,946
24,000 British Telecommunications Plc....................... 429,718
23,000 Cable & Wireless Plc................................. 381,733
42,000 Carso Global Telecom, Ser. A1........................ 111,583
5,000 Compania de Telecom de Chile SA, ADR (a)............. 92,500
6,300 * Embratel Participacoes SA, ADR (a)................. 141,750
47,720 * Global TeleSystems Group, Inc. (a)................. 694,923
13,000 Hellenic Telecommunications Organization SA (OTE),
ADR (a)............................................. 151,938
8,200 Hellenic Telecommunications Organization SA, GDR..... 184,596
190,000 Indosat, ADR......................................... 251,930
5,000 Korea Telecom Corp................................... 172,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Diversified Telecommunication Services - continued
16,000 Mahanagar Telep Ni, GDR.............................. $ 204,000
5,000 * Matav Rt., ADR..................................... 174,063
230 Nippon Telegraph & Telephone Corp.................... 2,853,307
3,800 Nuevo Grupo Iusacell SA de Cv, ADR (a)............... 60,563
19,900 Tele Centro Oeste Celular Participacoes SA, ADR (a).. 228,850
7,291 Tele Norte Leste Participacoes SA, ADR (a)........... 129,871
89,804 Telecel-Comunicacoes Pessoais, SA.................... 1,420,550
1,600 Telecom Argentina - France Telecom SA, Class B, ADR.. 44,700
740 * Telecomunicacoes Brasileiras SA, ADR Preference
Shares ("Telebras") (a)............................. 87,459
80,046 * Telefonica SA...................................... 1,781,405
9,380 Telefonos de Mexico SA, ADR ("Telmex") (a)........... 551,661
------------
10,693,546
------------
Electric Utilities - 2.5%
8,000 BSES, Ltd., GDR...................................... 136,000
10,840 Centrais Eletricas Brasileiras, Cl. B (a)............ 90,111
40,000 Cez.................................................. 116,212
5,100 Companhia Paranaense de Energia-Copel, Plc., ADR
(a)................................................. 37,613
6,900 Empresa Nacional de Electric, ADR (a)................ 79,350
57,850 Endesa SA............................................ 1,262,194
28,000 Powergen Plc......................................... 176,122
32,000 Scot & Southern Energy Plc........................... 275,020
40,000 Scottish Power Plc................................... 319,598
800 Tata Electric Companies, GDR......................... 80,000
100,000 The Tokyo Electric Power Co., Inc.................... 2,360,783
23,895 United Utilities Plc................................. 231,033
------------
5,164,036
------------
Electrical Equipment - 3.4%
98,720 Elexis AG............................................ 717,971
15,728 Entrelec Groupe SA................................... 793,557
30,000 Mabuchi Motor Co..................................... 3,305,096
10,000 Nidec Corp........................................... 842,476
21,080 Schneider Electric SA................................ 1,379,796
------------
7,038,896
------------
Electronic Equipment & Instruments - 6.4%
76,000 Cookson Group Plc.................................... 223,640
33,657 ELMOS Semiconductor AG............................... 1,361,592
18,453 Epcos AG............................................. 2,600,221
30,149 * Graphisoft NV...................................... 561,873
207,000 Hitachi, Ltd......................................... 2,472,157
15,000 Kyocera Corp......................................... 2,509,374
10,900 Optibase, Ltd........................................ 206,419
45,930 Stonesoft Oyj........................................ 855,977
1,210,000 TCL International Holdings, Ltd...................... 730,114
15,000 TDK Corp............................................. 2,009,443
------------
13,530,810
------------
</TABLE>
77
<PAGE>
EVERGREEN
Perpetual International Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Energy Equipment & Services - 1.2%
23,280 IHC Caland NV......................................... $ 941,791
102,200 Petroleum Geo-Services (a)............................ 1,597,143
------------
2,538,934
------------
Food & Drug Retailing - 0.8%
21,000 Boots Co. Plc......................................... 161,273
321,640 Fyffes................................................ 540,945
70,000 Safeway Plc........................................... 235,956
47,700 Sainsbury (J.) Plc.................................... 248,793
171,400 Tesco Plc............................................. 583,092
------------
1,770,059
------------
Food Products - 0.3%
105,000 Kerry Properties...................................... 129,410
90,000 Northern Foods Plc.................................... 142,228
25,775 Tate & Lyle Plc....................................... 91,497
51,000 Unilever Plc.......................................... 306,501
------------
669,636
------------
Gas Utilities - 0.9%
73,333 BG Group Plc.......................................... 442,717
88,020 Gas Natural Sdg....................................... 1,472,349
------------
1,915,066
------------
Health Care Equipment & Supplies - 0.2%
62,800 Nycomed Amersham Plc.................................. 479,105
------------
Hotels, Restaurants & Leisure - 0.7%
1,200,000 Cafe De Coral Holdings, Ltd........................... 431,366
70,000 First Choice Holidays Plc............................. 144,407
125,941 Hilton Group Plc...................................... 529,427
40,000 Resorts World Berhad.................................. 129,474
1,090,000 Sino-i.com, Ltd....................................... 71,368
726 Sodexho Alliance...................................... 108,769
------------
1,414,811
------------
Household Durables - 2.2%
142,500 Fairview Holdings Plc................................. 348,329
82,934 Koninklijke (Royal) Philips Electronics N.V........... 3,699,647
53,000 Sanyo Electric Co., Ltd............................... 353,775
67,500 Taylor Woodrow........................................ 165,523
------------
4,567,274
------------
Industrial Conglomerates - 1.9%
60,000 Citic Pacific, Ltd.................................... 275,766
21,900 Grupo Carso SA de CV, Ser. A1......................... 74,474
51,000 Johnson Electric Holdings, Ltd........................ 409,221
47,000 NatSteel Electronics, Ltd. (a)........................ 269,909
14,317 Siemens AG............................................ 2,121,540
20,193 Smiths Industries Plc................................. 236,633
100,000 Swire Pacific Ltd..................................... 564,885
------------
3,952,428
------------
Insurance - 1.8%
8,390 AXA................................................... 1,244,021
21,000 Britannic Assurance Plc............................... 283,801
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Insurance - continued
55,000 Legal & General Group Plc............................. $ 143,862
4,940 Munchener Ruckvers.................................... 1,448,333
25,640 Prudential Corp. Plc.................................. 393,214
46,440 Sun Life & Provincial Holdings Plc.................... 332,602
15,000 United Assurance Group Plc............................ 934
------------
3,846,767
------------
Internet Software & Services - 0.0%
3,000 Starmedia Network, Inc. (a)........................... 65,625
------------
Leisure Equipment & Products - 0.5%
800,000 e-New Media Co., Ltd.................................. 128,383
29,015 Infogrames Entertainment SA (a)....................... 820,341
------------
948,724
------------
Machinery - 2.2%
8,325 Coflexip SA (a)....................................... 809,804
35,300 Fuji Machine Manufacturing Co., Ltd................... 2,454,316
28,800 Konecranes International (a).......................... 955,646
15,000 Larsen & Toubro, Ltd., GDR............................ 202,500
40,500 TI Group Plc.......................................... 220,067
------------
4,642,333
------------
Marine - 0.4%
55,999 Associated British Ports Holdings Plc................. 227,769
28,600 P & O Finance BV...................................... 282,758
46,650 Smith (H.W.) Group Plc................................ 264,561
------------
775,088
------------
Media - 2.5%
114,000 ABS-CBN Broadcasting Corp............................. 135,303
30,000 BEC World Public Co., Ltd............................. 197,032
11,600 Benpres Holdings Corp., GDR, 144A..................... 40,600
36,400 Daily Mail & General Trust, Cl. A..................... 566,730
2,400 Globo Cabo SA, ADR (a)................................ 40,500
2,000 * Grupo Televisa SA, ADR (a).......................... 126,875
57,169 Gruppo Editoriale L'Espresso (a)...................... 805,571
330 Imako Publications.................................... 7,670
8,000 Nanyang Press Holdings................................ 19,895
660,000 Oriental Press Group.................................. 135,572
62,000 Rank Group............................................ 142,625
250,000 Shaw Brothers (Hong Kong), Ltd........................ 256,766
28,000 * Singapore Press Holdings, Ltd....................... 548,022
377 Societe Television Francaise 1........................ 258,076
21,600 Trinity Mirror Plc.................................... 167,646
6,100 TV Azteca SA de CV, ADR (a)........................... 67,100
33,550 VNU NV................................................ 1,794,943
------------
5,310,926
------------
Metals & Mining - 2.0%
30,600 Acerinox Sa........................................... 1,210,103
2,600 Companhia Vale do Rio Doce, ADR (a)................... 64,407
26,320 Eramet SLN............................................ 1,250,212
4,000 Hindalco Industries Ltd., GDR, 144A................... 66,000
30,000 Johnson Matthey Plc................................... 394,921
</TABLE>
78
<PAGE>
EVERGREEN
Perpetual International Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Metals & Mining - continued
14,000 Pohang Iron & Steel, Ltd., ADR (a).................... $ 294,000
41,450 Rio Tinto Plc......................................... 645,356
20,000 Sasol, Ltd., ADR (a).................................. 115,000
504,000 Yanzhou Coal Mining Co., Ltd.......................... 100,940
------------
4,140,939
------------
Multi-line Retail - 0.4%
70,000 Debenhams Retail Plc.................................. 194,269
51,026 Next Plc.............................................. 399,211
63,000 Selfridges Plc........................................ 264,700
------------
858,180
------------
Multi-Utilities - 0.0%
300,000 Bangkok Expressway.................................... 94,575
------------
Oil & Gas - 3.4%
52,000 Enterprise Oil Plc.................................... 382,138
3,311 PC Holdings SA, ADR (a)............................... 50,700
10,500 Petroleo Brasileiro SA, ADR ("Petrobras") (a)......... 248,760
25,240 Royal Dutch Petroleum Co. (a)......................... 1,454,756
201,000 Shell Transportation & Trading Co. Plc................ 1,646,884
21,332 Total Fina SA, Cl. B.................................. 3,236,678
3,140,000 Tupras-Turkiye Petrol Rafinerileri AS................. 215,688
------------
7,235,604
------------
Paper & Forest Products - 0.4%
45,250 Empresa Nacional de Celulosas SA (a).................. 837,133
27,700 Siam Pulp & Paper..................................... 69,132
------------
906,265
------------
Personal Products - 1.9%
1,260 L'Oreal............................................... 854,518
22,100 Reckitt Benckiser Plc................................. 227,355
44,000 Uni Charm Corp........................................ 2,981,808
------------
4,063,681
------------
Pharmaceuticals - 2.3%
290,000 British Biotech....................................... 121,909
525,000 Dankos Labs........................................... 53,165
55,674 * Elan Corp. Plc, ADR (a)............................. 2,387,023
9,300 Merck Kgaa............................................ 267,166
2,600 PowderJect Pharmaceuticals Plc........................ 17,892
63,000 Sankyo Co............................................. 1,388,141
41,920 Scotia Holdings Plc................................... 101,439
12,000 Zeneca Group.......................................... 503,144
------------
4,839,879
------------
Real Estate - 1.1%
360,000 Amoy Properties, Ltd.................................. 251,887
163,000 Burford Holdings Plc.................................. 209,244
21,000 Chelsfield Plc........................................ 92,808
96,000 Cheung Kong Holdings, Ltd............................. 1,146,203
14,000 Corporacion GEO SA de CV, Ser. B...................... 32,136
125,000 DBS Land, Ltd......................................... 177,263
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Real Estate - continued
12 Inversiones y Representaciones, SA, GDR.............. $ 356
30,000 Land Securities Plc.................................. 361,991
------------
2,271,888
------------
Road & Rail - 0.2%
27,600 Railtrack Group Plc.................................. 354,518
------------
Semiconductor Equipment & Products - 2.8%
43,600 Be Semiconductor I................................... 883,900
18,300 Galileo Technology, Ltd.............................. 321,394
32,000 Mirae Corp., ADR (a)................................. 304,000
1,440 Orbotech, Ltd. (a)................................... 122,760
7,600 Rohm Co., Ltd........................................ 2,547,053
1,490 Samsung Electronics, Ltd., GDR, 144A................. 238,772
6,575 * Samsung Electronics, Ltd., GDR, 144A, non-voting
shares.............................................. 533,397
3,628 Taiwan Semiconductor Manufacturing Co., Ltd., ADR
(a)................................................. 189,790
25,000 Winbond Electronics Corp., GDR....................... 788,750
------------
5,929,816
------------
Software - 0.3%
36,400 Sapiens International Corp. NV (a)................... 288,925
136,000 Singapore Computer................................... 302,842
------------
591,767
------------
Specialty Retail - 0.7%
65,000 Body Shop International Plc.......................... 129,538
28,400 D.F.S. Furniture Co. Plc............................. 171,121
14,000 Grupo Elektras A De CV............................... 141,750
482,750 Signet Group Plc..................................... 435,939
28,100 Trader.Com Nv........................................ 467,487
84,400 Wal-Mart de Mexico SA de CV.......................... 194,631
------------
1,540,466
------------
Textiles & Apparel - 0.4%
9,340 Gucci Group Nv....................................... 829,995
------------
Tobacco - 1.2%
89,700 British America Tobacco Industries Plc............... 558,634
20,000 PT Bat Indonesia Tbk................................. 77,215
250,000 PT HM Sampoerna...................................... 363,133
121,876 Tabacalera, Ser. A (a)............................... 1,432,611
------------
2,431,593
------------
Trading Companies & Distributors - 0.8%
550,000 Marubeni Corp........................................ 1,593,760
------------
Transportation Infrastructure - 0.5%
12,433 Autopistas del Mare Nostrum SA....................... 184,236
98,795 Autopistas, Concesionaria Espanola SA................ 871,201
53,000 Stagecoach Holdings Plc.............................. 52,193
------------
1,107,630
------------
</TABLE>
79
<PAGE>
EVERGREEN
Perpetual International Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Wireless Telecommunications Services - 2.2%
161,000 China Telecom (Hong Kong), Ltd........................ $ 1,152,333
40,000 Smartone Telecom...................................... 125,045
1,700 Tele Centro Sul Participacoes SA, ADR (a)............. 108,375
1,600 Telemig Celular Participacoes SA, ADR (a)............. 93,600
2,000 Telesp Celular Participacoes SA (a)................... 88,250
668,308 Vodafone Airtouch Plc................................. 3,059,137
------------
4,626,740
------------
Total Common Stocks (cost $174,462,900)............... 194,375,112
------------
CONVERTIBLE DEBENTURES - 0.0%
Pharmaceuticals - 0.0%
Scotia Holdings
19,000 8.50%, 3/26/2002 (cost $31,758)....................... 25,884
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS - 0.0%
Energy Equipment & Services - 0.0%
BG Transco Holdings Plc
$ 5,000 1.00%, 12/14/2022..................................... 7,669
5,000 7.00%, 12/16/2024..................................... 7,786
5,000 7.06%, 12/14/2009..................................... 7,836
------------
Total Corporate Bonds
(cost $26,919)....................................... 23,291
------------
<CAPTION>
Shares Value
<C> <S> <C>
PREFERRED STOCKS - 0.7%
Automobiles - 0.7%
560 Porsche AG (cost $1,231,664).......................... 1,425,978
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
WARRANTS - 0.1%
Banks - 0.1%
200,000 * Deutsche Bank AG, expire 3/28/2002............... $ 146,499
------------
Construction Materials - 0.0%
250 * Cemex SA de CV, ADR, expire 12/13/2002........... 687
------------
Total Warrants
(cost $103,488)................................... 147,186
------------
SHORT-TERM INVESTMENTS - 19.1%
Mutal Fund Shares - 13.9%
29,357,213 Navigator Prime Portfolio (cost $26,424,842) (b)... 29,357,213
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 5.2%
$10,887,118 State Street Bank & Trust Co., 5.67%, purchased
4/28/2000, maturing 5/1/2000, maturity
value $10,882,257 (cost $10,877,118) (c).......... 10,877,118
------------
Total Short-Term Investments (cost $40,234,331).... 40,234,331
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments - (cost $216,091,060).... 112.4% 236,231,782
Other Assets and Liabilities - net.......... (12.4) (26,139,508)
----- ------------
Net Assets.................................. 100.0% $210,092,274
===== ============
</TABLE>
(a) All or a portion of this security is on loan.
(b) Represents investment of cash collateral received for securities on loan.
(c) The repurchase agreement is fully collateralized by $10,960,000 FNMA,
6.40%, 12/21/2001 $10,965,845 value plus accrued interest at April 30,
2000.
* Non-income producing security.
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 Receipts
GDR Global Depository Receipts
80
<PAGE>
EVERGREEN
Perpetual International Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
At April 30, 2000, the Fund held securities in the following countries:
<TABLE>
<CAPTION>
Percent of
Market Value Portfolio Assets
--------------------------------------------------------------------------------
<S> <C> <C>
Japan............................................. $ 54,877,727 23.2%
United States+.................................... 41,465,769 17.6%
United Kingdom.................................... 29,899,075 12.7%
France............................................ 18,969,600 8.0%
Netherlands....................................... 16,703,162 7.1%
Germany........................................... 14,393,921 6.1%
Spain............................................. 9,051,234 3.8%
Hong Kong......................................... 8,462,799 3.6%
Finland........................................... 6,272,493 2.7%
Ireland........................................... 6,222,122 2.6%
Sweden............................................ 5,824,614 2.5%
Singapore......................................... 2,804,391 1.2%
Taiwan............................................ 2,699,062 1.1%
Norway............................................ 2,238,258 0.9%
Mexico............................................ 1,856,444 0.8%
Other Countries................................... 14,491,111 6.1%
------------ ------
$236,231,782 100.0%
============ ======
</TABLE>
+ Includes short-term investments
See Combined Notes to Financial Statements.
81
<PAGE>
EVERGREEN
Precious Metals Fund
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 97.2%
Banks - 0.5%
81,282 Standard Bank Investment Corp., Ltd.................... $ 299,690
-----------
Metals & Mining - 96.7%
200,000 Agnico-Eagle Mines, Ltd. .............................. 1,087,500
100,800 Anglo-American Platinum Corp., Ltd. ................... 2,438,050
80,819 AngloGold, Ltd......................................... 3,075,186
2,074,000 * Avgold, Ltd. ........................................ 1,085,864
90,000 Barrick Gold Corp...................................... 1,513,125
118,700 Barrick Gold Corp. - Canadian Exchange................. 1,995,834
675,000 Battle Mountain Gold Co................................ 1,392,187
499,750 Canyon Resources Corp.................................. 624,688
80,000 De Beers Centenary..................................... 1,639,997
1,100,000 Delta Gold NL.......................................... 1,027,840
393,113 Franco Nevada Mining, Ltd.............................. 4,565,834
50,000 * Freeport McMoran Copper & Gold, Inc., Cl. B.......... 481,250
991,400 Gencor, Ltd............................................ 2,324,793
800,000 * Geomaque Exploration, Ltd............................ 126,950
84,482 Gold Fields Of South Africa, Ltd....................... 194,369
100,000 * Goldcorp, Inc., Cl. A................................ 600,000
401,700 * Goldcorp, Inc., Cl. A - Canadian Exchange............ 2,400,598
961,824 Goldfields, Ltd. ...................................... 3,120,733
675,200 Harmony Gold Mining, Ltd. ............................. 3,316,003
500,500 Homestake Mining Co. .................................. 3,003,000
90,000 Impala Platinum Holdings, Ltd. ........................ 2,853,772
910,000 * Kinross Gold Corp.................................... 1,194,375
200,000 * Kinross Gold Corp. - Canadian Exchange............... 270,106
1,000,000 * Lihir Gold, Ltd...................................... 338,720
596,500 * Meridian Gold, Inc................................... 3,280,750
75,000 * Meridian Gold, Inc. - Canadian Exchange.............. 392,498
75,000 Namibian Minerals Corp................................. 290,625
700,000 Newcrest Mining........................................ 1,398,096
150,400 Newmont Mining Corp.................................... 3,525,000
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 97.2%
Metals & Mining - continued
1,084,824 Normandy Mining, Ltd. ................................ $ 538,507
337,100 * Orvana Minerals Corp................................ 59,184
222,500 Placer Dome, Inc...................................... 1,807,812
65,000 Placer Dome, Inc. - Canadian Exchange................. 524,512
135,000 * Randgold Resources, Inc., GDR, 144A................. 573,750
300,000 * Repadre Capital Corp. .............................. 334,256
127,200 * Rio Narcea Gold Mine, Inc........................... 94,483
1,073,648 Ross Mining NL........................................ 219,454
499,600 Sons of Gwalia, Ltd................................... 1,269,184
44,250 * Stillwater Mining Co. .............................. 1,239,000
25,000 Teck Corp., Cl. B..................................... 182,322
657,500 * TVX Gold, Inc. ..................................... 421,787
1,000,000 * Viceroy Resource Corp............................... 465,933
288,585 Western Area Gold Mining.............................. 766,098
-----------
58,054,025
-----------
Total Common Stocks (cost $80,529,108)................ 58,353,715
-----------
WARRANTS - 0.0%
Metals & Mining - 0.0%
227,500 * Atlas Corp. (cost $102,375)......................... 0
-----------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENT - 1.2%
$736,000 Evergreen Joint Repurchase Agreement, investments in
repurchase agreements in a joint trading account,
purchased 4/28/2000, 5.80%, maturing 5/1/2000,
maturity value $736,356 (cost $736,000) (a).......... 736,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments - (cost $81,367,483)......... 98.4% 59,089,715
Other Assets and Liabilities - net.............. 1.6 932,416
----- -----------
Net Assets...................................... 100.0% $60,022,131
===== ===========
</TABLE>
(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, 2000.
* Non-income producing security.
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.
82
<PAGE>
EVERGREEN
Precious Metals Fund
Schedule of Investments (continued)
April 30, 2000 (Unaudited)
Summary of Abbreviations
GDR Global Depository Receipts
<TABLE>
<CAPTION>
At April 30, 2000, the Fund held securities in Percentage of
the following countries: Market Value Portfolio Assets
------------------------------------------------------------------------------
<S> <C> <C>
South Africa.................................... $21,688,306 36.7%
Canada.......................................... 21,608,484 36.6%
United States+.................................. 11,001,125 18.6%
Australia....................................... 4,453,080 7.5%
Papua New Guinea................................ 338,720 0.6%
----------- ------
$59,089,715 100.0%
=========== ======
</TABLE>
+ Includes short-term investments.
See Combined Notes to Financial Statements.
83
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Assets and Liabilities
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Emerging Global Global
Markets Leaders Opportunities International
Growth Fund Fund Fund Growth Fund
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $65,672,711 $289,886,242 $216,212,922 $727,720,049
Net unrealized gains on
securities............ 12,526,018 128,497,800 45,386,546 65,457,905
---------------------------------------------------------------------------------
Market value of
securities............ 78,198,729 418,384,042 261,599,468 793,177,954
Cash................... 863 0 477 209,237
Restricted Cash........ 0 0 0 780,000
Foreign currency, at
value (cost $81,336,
$3,567,848, $36,803
and $210,780,
respectively)......... 80,939 3,557,088 36,729 211,792
Receivable for
securities sold....... 0 285,229 1,323,243 2,812,094
Receivable for Fund
shares sold........... 536,511 2,060,547 755,507 2,305,099
Dividends and interest
receivable............ 244,213 732,096 191,891 2,151,174
Unrealized gains on
forward foreign
currency exchange
contracts............. 0 0 38,309 1,367,395
Receivable for daily
variation margin on
open futures
contracts............. 0 0 0 69,550
Deferred organization
expenses.............. 0 4,045 0 0
Prepaid expenses and
other assets.......... 33,378 66,492 55,580 114,535
---------------------------------------------------------------------------------
Total assets........... 79,094,633 425,089,539 264,001,204 803,198,830
---------------------------------------------------------------------------------
Liabilities
Payable for securities
purchased............. 83,491 1,112,869 6,157,286 8,163,183
Payable for Fund shares
redeemed.............. 0 1,579,281 265,001 1,031,283
Unrealized losses on
forward foreign
currency exchange
contracts............. 0 0 82,778 0
Due to custodian bank.. 0 17,579 0 0
Advisory fee payable... 9,045 30,186 18,679 32,994
Distribution Plan
expenses payable...... 594 22,228 16,557 7,528
Due to other related
parties............... 637 3,470 2,077 6,433
Accrued expenses and
other liabilities..... 26,782 86,564 67,287 195,831
---------------------------------------------------------------------------------
Total liabilities...... 120,549 2,852,177 6,609,665 9,437,252
---------------------------------------------------------------------------------
Net assets.............. $78,974,084 $422,237,362 $257,391,539 $793,761,578
---------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $71,988,459 $274,505,157 $138,733,526 $651,704,691
Undistributed
(overdistributed) net
investment income
(loss)................ (47,535) (1,687,838) (1,843,260) 1,298,592
Accumulated net
realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. (5,491,511) 20,956,770 75,181,453 75,237,735
Net unrealized gains or
losses on securities
and foreign currency
related transactions.. 12,524,671 128,463,273 45,319,820 65,520,560
---------------------------------------------------------------------------------
Total net assets........ $78,974,084 $422,237,362 $257,391,539 $793,761,578
---------------------------------------------------------------------------------
Net assets consists of
Class A................ $ 9,223,626 $143,319,029 $ 68,376,681 $143,415,141
Class B................ 3,658,827 228,414,034 157,704,870 54,550,789
Class C................ 1,409,214 5,935,749 30,251,943 2,336,083
Class Y................ 64,682,417 44,568,550 1,058,045 593,459,565
---------------------------------------------------------------------------------
Total net assets........ $78,974,084 $422,237,362 $257,391,539 $793,761,578
---------------------------------------------------------------------------------
Shares outstanding
Class A................ 838,380 7,479,292 2,246,882 15,800,809
Class B................ 345,133 12,257,006 5,569,771 6,071,432
Class C................ 132,721 318,988 1,065,218 259,970
Class Y................ 5,809,516 2,299,377 34,546 65,419,588
---------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 11.00 $ 19.16 $ 30.43 $ 9.08
---------------------------------------------------------------------------------
Class A--Offering price
(based on sales charge
of 4.75%)............. $ 11.55 $ 20.12 $ 31.95 $ 9.53
---------------------------------------------------------------------------------
Class B................ $ 10.60 $ 18.64 $ 28.31 $ 8.98
---------------------------------------------------------------------------------
Class C................ $ 10.62 $ 18.61 $ 28.40 $ 8.99
---------------------------------------------------------------------------------
Class Y................ $ 11.13 $ 19.38 $ 30.63 $ 9.07
---------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
84
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Assets and Liabilities
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Latin Perpetual Perpetual Precious
America Global International Metals
Fund Fund Fund Fund
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $ 20,824,449 $240,375,481 $216,091,060 $ 81,367,483
Net unrealized gains on
securities............ 9,986,819 15,884,394 20,140,722 (22,277,768)
----------------------------------------------------------------------------------
Market value of
securities............ 30,811,268 256,259,875 236,231,782 59,089,715
Investment in wholly-
owned, unconsolidated
foreign subsidiary, at
value................. 0 0 0 871,232
Cash................... 723 0 0 542
Foreign currency, at
value (cost $11,054,
$71,716, $241,699 and
$0, respectively)..... 10,794 71,480 243,102 0
Receivable for
securities sold....... 0 6,414,823 449,314 0
Receivable for Fund
shares sold........... 12,378 616,191 1,759,986 13,088
Dividends and interest
receivable............ 218,213 648,741 708,288 89,673
Unrealized gains on
forward foreign
currency exchange
contracts............. 0 600,528 744,347 0
Deferred organization
expenses.............. 0 0 6,231 0
Prepaid expenses and
other assets.......... 28,219 75,922 104,581 153,125
----------------------------------------------------------------------------------
Total assets.......... 31,081,595 264,687,560 240,247,631 60,217,375
----------------------------------------------------------------------------------
Liabilities
Payable for securities
purchased............. 0 1,611,234 189,973 0
Payable for Fund shares
redeemed.............. 90,934 375,853 463,634 102,360
Payable for securities
on loan............... 0 26,424,842 29,357,213 0
Advisory fee payable... 1,680 19,825 16,993 3,250
Distribution Plan
expenses payable...... 2,176 13,773 9,109 1,667
Due to other related
parties............... 255 2,882 527 492
Accrued expenses and
other liabilities..... 22,139 20,882 117,908 87,475
----------------------------------------------------------------------------------
Total liabilities..... 117,184 28,469,291 30,155,357 195,244
----------------------------------------------------------------------------------
Net assets.............. $ 30,964,411 $236,218,269 $210,092,274 $ 60,022,131
----------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $ 44,642,584 $195,009,507 $174,310,784 $177,513,930
Undistributed
(overdistributed) net
investment income
(loss)................ 17,909 (1,470,196) (774,729) (33,968)
Accumulated net
realized gains or
losses on securities
and foreign currency
related transactions.. (23,682,495) 26,221,636 15,700,531 (95,176,918)
Net unrealized gains or
losses on securities
and foreign currency
related transactions.. 9,986,413 16,457,322 20,855,688 (22,280,913)
----------------------------------------------------------------------------------
Total net assets........ $ 30,964,411 $236,218,269 $210,092,274 $ 60,022,131
----------------------------------------------------------------------------------
Net assets consists of
Class A................ $ 5,498,193 $ 89,180,991 $120,878,824 $ 52,942,736
Class B................ 20,894,777 2,442,525 4,487,317 6,881,628
Class C................ 4,196,697 144,580,841 81,702,055 196,865
Class Y................ 374,744 13,912 3,024,078 902
----------------------------------------------------------------------------------
Total net assets........ $ 30,964,411 $236,218,269 $210,092,274 $ 60,022,131
----------------------------------------------------------------------------------
Shares outstanding
Class A................ 526,754 3,900,071 6,534,455 5,544,010
Class B................ 2,085,567 107,248 241,579 733,661
Class C................ 419,605 6,723,860 4,513,812 20,983
Class Y................ 35,679 604 161,765 96
----------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 10.44 $ 22.87 $ 18.50 $ 9.55
----------------------------------------------------------------------------------
Class A--Offering price
(based on sales charge
of 4.75%)............. $ 10.96 $ 24.01 $ 19.42 $ 10.03
----------------------------------------------------------------------------------
Class B................ $ 10.02 $ 22.77 $ 18.57 $ 9.38
----------------------------------------------------------------------------------
Class C................ $ 10.00 $ 21.50 $ 18.10 $ 9.38
----------------------------------------------------------------------------------
Class Y................ $ 10.50 $ 23.05 $ 18.69 $ 9.40
----------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
85
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Operations
Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Emerging Global Global International
Markets Leaders Opportunities Growth
Growth Fund Fund Fund Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income
Dividends (net of
foreign withholding
taxes of $53,870,
$210,130, $36,264 and
$496,669
respectively)......... $ 734,668 $ 2,537,803 $ 468,083 $ 4,077,785
Interest............... 36,368 205,712 251,641 1,201,951
Securities lending
income................ 0 0 82,233 0
-------------------------------------------------------------------------------
Total investment
income................. 771,036 2,743,515 801,957 5,279,736
-------------------------------------------------------------------------------
Expenses
Advisory fee........... 591,909 1,924,270 1,118,267 2,141,334
Distribution Plan
expenses.............. 40,389 1,329,054 963,470 503,313
Administrative services
fees.................. 30,524 156,201 92,545 285,005
Transfer agent fee..... 32,280 667,226 274,812 385,655
Trustees' fees and
expenses.............. 947 5,583 2,181 9,839
Printing and postage
expenses.............. 9,665 46,174 35,255 88,112
Custodian fee.......... 78,598 142,656 96,676 436,255
Registration and filing
fees.................. 19,196 30,133 24,737 56,516
Professional fees...... 12,498 13,688 12,558 15,479
Organization expenses.. 0 3,935 0 0
Interest expense....... 0 93,559 0 0
Other.................. 4,369 9,850 22,350 12,636
-------------------------------------------------------------------------------
Total expenses......... 820,375 4,422,329 2,642,851 3,934,144
Less: Expense
reductions............ (3,788) (8,390) (11,814) (17,716)
-------------------------------------------------------------------------------
Net expenses.......... 816,587 4,413,939 2,631,037 3,916,428
-------------------------------------------------------------------------------
Net investment income
(loss)................ (45,551) (1,670,424) (1,829,080) 1,363,308
-------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities,
futures contracts and
foreign currency
related transactions
Net realized gains or
losses on:
Securities............ 5,734,452 22,482,265 75,261,710 108,542,848
Futures contracts..... 0 0 0 (585,213)
Foreign currency
related transactions.. (28,858) (1,463,932) 295,538 992,059
-------------------------------------------------------------------------------
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 5,705,594 21,018,333 75,557,248 108,949,694
-------------------------------------------------------------------------------
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 5,847,470 8,995,095 (6,969,053) (36,132,436)
-------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 11,553,064 30,013,428 68,588,195 72,817,258
-------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ $11,507,513 $28,343,004 $66,759,115 $ 74,180,566
-------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
86
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Operations
Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Latin Perpetual
America Perpetual International Precious
Fund Global Fund Fund Metals Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income
Dividends (net of foreign
withholding taxes of
$26,579, $117,692,
$139,974 and $0,
respectively)........... $ 431,112 $ 1,230,909 $ 996,821 $ 744,973
Interest................. 10,840 54,948 165,019 37,969
Securities lending
income.................. 0 64,479 80,619 0
--------------------------------------------------------------------------------
Total investment income... 441,952 1,350,336 1,242,459 782,942
--------------------------------------------------------------------------------
Expenses
Advisory fee............. 120,622 1,214,850 958,819 253,720
Distribution Plan
expenses................ 150,346 835,286 511,591 130,941
Administrative services
fees.................... 12,113 176,633 103,348 24,656
Transfer agent fee....... 79,203 227,899 168,124 319,296
Trustees' fees and
expenses................ 298 1,991 1,251 800
Printing and postage
expenses................ 4,534 34,003 30,691 6,333
Custodian fee............ 23,075 168,644 146,624 32,415
Registration and filing
fees.................... 19,936 21,933 63,208 32,462
Professional fees........ 10,859 12,901 12,386 11,424
Organization expenses.... 0 0 1,487 0
Interest expense......... 0 122,772 0 0
Other.................... 861 12,938 26,436 3,157
--------------------------------------------------------------------------------
Total expenses.......... 421,847 2,829,850 2,023,965 815,204
Less: Expense
reductions............. (1,218) (9,318) (6,777) (1,888)
--------------------------------------------------------------------------------
Net expenses............. 420,629 2,820,532 2,017,188 813,316
--------------------------------------------------------------------------------
Net investment income
(loss).................. 21,323 (1,470,196) (774,729) (30,374)
--------------------------------------------------------------------------------
Equity in earnings of
wholly-owned,
unconsolidated foreign
subsidiary.............. 0 0 0 7,281
--------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities,
futures contracts and
foreign currency related
transactions
Net realized gains or
losses on:
Securities............... 2,578,057 28,030,431 16,985,454 (3,501,908)
Foreign currency related
transactions............ (17,244) (622,124) (721,448) (27,148)
--------------------------------------------------------------------------------
Net realized gains or
losses on securities and
foreign currency related
transactions............ 2,560,813 27,408,307 16,264,006 (3,529,056)
--------------------------------------------------------------------------------
Net change in unrealized
gains or losses on
securities and foreign
currency related
transactions............ 4,721,982 (2,859,653) 2,807,492 (11,648,194)
--------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities,
futures contracts and
foreign currency related
transactions............ 7,282,795 24,548,654 19,071,498 (15,177,250)
--------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations......... $7,304,118 $23,078,458 $18,296,769 $(15,200,343)
--------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
87
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Emerging Global
Markets Global Opportunities International
Growth Fund Leaders Fund Fund Growth Fund
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ (45,551) $ (1,670,424) $ (1,829,080) $ 1,363,308
Net realized gains on
securities, futures
contracts and foreign
currency related
transactions.......... 5,705,594 21,018,333 75,557,248 108,949,694
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 5,847,470 8,995,095 (6,969,053) (36,132,436)
------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 11,507,513 28,343,004 66,759,115 74,180,566
------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A............... 0 0 0 (1,647,272)
Class B............... 0 0 0 (434,017)
Class C............... 0 0 0 (14,174)
Class Y............... 0 0 0 (8,437,450)
Net realized gains
Class A............... 0 (2,399,007) (8,748,259) (5,822,537)
Class B............... 0 (3,743,776) (21,954,075) (3,020,381)
Class C............... 0 (81,393) (3,916,863) (108,412)
Class Y............... 0 (756,519) (19,537) (24,547,445)
------------------------------------------------------------------------------------
Total distributions to
shareholders.......... 0 (6,980,695) (34,638,734) (44,031,688)
------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 23,321,526 807,020,214 87,618,846 187,126,569
Payment for shares
redeemed.............. (21,092,868) (857,572,379) (71,744,646) (162,784,354)
Net asset value of
shares issued in
reinvestment of
distributions......... 0 6,660,487 24,403,217 39,812,987
------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 2,228,658 (43,891,678) 40,277,417 64,155,202
------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 13,736,171 (22,529,369) 72,397,798 94,304,080
Net assets
Beginning of period.... 65,237,913 444,766,731 184,993,741 699,457,498
------------------------------------------------------------------------------------
End of period.......... $ 78,974,084 $ 422,237,362 $257,391,539 $ 793,761,578
------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income
(loss)................. $ (47,535) $ (1,687,838) $ (1,843,260) $ 1,298,592
------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
88
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Latin Perpetual Perpetual
America Global International Precious
Fund Fund Fund Metals Fund
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ 21,323 $ (1,470,196) $ (774,729) $ (30,374)
Equity in earnings of
wholly-owned
unconsolidated foreign
subsidiary............ 0 0 0 7,281
Net realized gains on
securities and foreign
currency
related transactions.. 2,560,813 27,408,307 16,264,006 (3,529,056)
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 4,721,982 (2,859,653) 2,807,492 (11,648,194)
---------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations............ 7,304,118 23,078,458 18,296,769 (15,200,343)
---------------------------------------------------------------------------------
Distributions to
shareholders from
Net realized gains
Class A................ 0 (12,054,416) (9,627,088) 0
Class B................ 0 (55,946) (88,879) 0
Class C................ 0 (19,605,127) (6,472,082) 0
Class Y................ 0 (195) (681,351) 0
---------------------------------------------------------------------------------
Total distributions to
shareholders.......... 0 (31,715,684) (16,869,400) 0
---------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 3,293,438 90,507,137 110,144,552 13,384,996
Payment for shares
redeemed.............. (9,225,367) (96,700,942) (78,664,237) (21,795,314)
Net asset value of
shares issued in
reinvestment of
distributions......... 0 30,583,329 16,242,631 0
---------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (5,931,929) 24,389,524 47,722,946 (8,410,318)
---------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 1,372,189 15,752,298 49,150,315 (23,610,661)
Net assets
Beginning of period.... 29,592,222 220,465,971 160,941,959 83,632,792
---------------------------------------------------------------------------------
End of period.......... $30,964,411 $236,218,269 $210,092,274 $ 60,022,131
---------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income
(loss)................. $ 17,909 $ (1,470,196) $ (774,729) $ (33,968)
---------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
89
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Year Ended October 31, 1999
<TABLE>
<CAPTION>
Emerging Global Global International
Markets Leaders Opportunities Growth
Growth Fund Fund Fund Fund
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ (27,662) $ (2,879,111) $ (2,523,448) $ 5,747,760
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 4,505,679 8,377,332 38,823,524 45,948,984
Net change in
unrealized gains on
securities and foreign
currency
related transactions.. 5,594,474 76,159,336 31,754,002 52,884,054
--------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 10,072,491 81,657,557 68,054,078 104,580,798
--------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A................ (10,598) 0 0 0
Class B................ (4,073) 0 0 0
Class C................ (995) 0 0 0
Class Y................ (136,530) 0 0 0
Net realized gains
Class A................ 0 0 (3,485,496) 0
Class B................ 0 0 (7,900,493) 0
Class C................ 0 0 (1,472,665) 0
Class Y................ 0 0 (1,957) 0
--------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (152,196) 0 (12,860,611) 0
--------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 44,051,855 2,630,916,446 136,044,293 301,153,523
Payment for shares
redeemed.............. (47,543,215) (2,622,732,751) (221,303,957) (341,962,909)
Net asset value of
shares issued in
reinvestment of
distributions......... 114,987 0 10,894,229 0
--------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (3,376,373) 8,183,695 (74,365,435) (40,809,386)
--------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 6,543,922 89,841,252 (19,171,968) 63,771,412
Net assets
Beginning of period.... 58,693,991 354,925,479 204,165,709 635,686,086
--------------------------------------------------------------------------------------
End of period.......... $ 65,237,913 $ 444,766,731 $ 184,993,741 $ 699,457,498
--------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income
(loss)................. $ (1,984) $ (17,414) $ (14,180) $ 10,468,197
--------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
90
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Year Ended October 31, 1999
<TABLE>
<CAPTION>
Perpetual Perpetual Precious
Latin Global International Metals
America Fund Fund(a)(b) Fund(c)(d) Fund
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ 108,337 $ (359,126) $ 212,934 $ (215,783)
Equity in earnings of
wholly-owned
unconsolidated foreign
subsidiary............ 0 0 0 19,428
Net realized gains or
losses on securities
and foreign currency
related transactions.. (4,041,319) 2,327,201 16,868,585 (27,031,931)
Net change in
unrealized gains on
securities and foreign
currency
related transactions.. 6,649,537 5,226,695 15,449,779 28,217,759
-----------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 2,716,555 7,194,770 32,531,298 989,473
-----------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 26,101,038 13,477,514 166,034,604 87,565,275
Payment for shares
redeemed.............. (42,507,400) (17,143,425) (155,946,116) (114,675,177)
-----------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (16,406,362) (3,665,911) 10,088,488 (27,109,902)
-----------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... (13,689,807) 3,528,859 42,619,786 (26,120,429)
Net assets
Beginning of period.... 43,282,029 216,937,112 118,322,173 109,753,221
-----------------------------------------------------------------------------------
End of period.......... $ 29,592,222 $220,465,971 $ 160,941,959 $ 83,632,792
-----------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income
(loss)................. $ (3,414) $ 0 $ 0 $ (3,594)
-----------------------------------------------------------------------------------
</TABLE>
(a) The Perpetual Global Fund changed its fiscal year end from September 30 to
October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, recep-
tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per-
petual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
(c) Effective October 18, 1999, shareholders of Mentor Perpetual International
Portfolio Class A, Class B and Class Y shares became owners of that number
of full and fractional shares of Class A, Class C and Class Y shares, re-
ceptively, of Evergreen Perpetual International Fund. Class B shares of
Mentor Perpetual International Portfolio were redesignated as Class C
shares of Evergreen Perpetual International Fund.
(d) As a result of the conversion of Mentor Perpetual International Portfolio
to Evergreen Perpetual International Fund, the shareholders of Mentor Per-
petual International Portfolio, Class E, became owners of that number of
full and fractional shares of Evergreen Perpetual International Fund, Class
A, having a net asset value equal to the net asset value of their shares
immediately prior to the conversion of shares.
See Combined Notes to Financial Statements.
91
<PAGE>
EVERGREEN
International and Global Growth Funds
Statement of Changes in Net Assets
Year Ended September 30, 1999
<TABLE>
<CAPTION>
Perpetual
Global
Fund
--------------------------------------------------------------------------------
<S> <C>
Operations
Net investment loss............................................ $ (711,706)
Net realized gains on securities and foreign currency related
transactions.................................................. 30,027,040
Net unrealized gains on securities and foreign currency related
transactions.................................................. 22,354,768
--------------------------------------------------------------------------------
Net increase in net assets resulting from operations........... 51,670,102
--------------------------------------------------------------------------------
Distributions to shareholders from
Net realized gains
Class A........................................................ (4,794,385)
Class C........................................................ (8,456,186)
Class Y........................................................ (85)
--------------------------------------------------------------------------------
Total distributions to shareholders............................ (13,250,656)
--------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold...................................... 122,357,893
Payment for shares redeemed.................................... (114,784,615)
Net asset value of shares issued in reinvestment of
distributions................................................. 12,654,681
--------------------------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.................................................. 20,227,959
--------------------------------------------------------------------------------
Total increase in net assets.................................. 58,647,405
Net assets
Beginning of period............................................ 158,289,707
--------------------------------------------------------------------------------
End of period.................................................. $ 216,937,112
--------------------------------------------------------------------------------
Undistributed net investment income............................. $ 0
--------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
92
<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"), Ev-
ergreen Perpetual Global Fund ("Perpetual Global Fund"), Evergreen Perpetual
International Fund ("Perpetual International 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 man-
agement investment company registered under the Investment Company Act of 1940,
as amended (the "1940 Act").
The Funds offer Class A, Class B, Class C and Class Y shares. Class A shares
are sold with a maximum front-end sales charge of 4.75%. Class B and Class C
shares are sold without a front-end sales charge, but pay a higher ongoing dis-
tribution fee than Class A. Class B shares are sold subject to a contingent de-
ferred sales charge that is payable upon redemption and decreases depending on
how long the shares have been held. Class B shares purchased after January 1,
1997 will automatically convert to Class A shares after seven years. Class B
shares purchased prior to January 1, 1997 follow the conversion rights at the
time the shares were initially purchased. Class C shares are sold subject to a
2.00% contingent deferred sales charge payable on shares redeemed within one
year after the month of purchase and a 1.00% contingent deferred sales charge
if such shares are redeemed within two years after the month of purchase. Class
C shares purchased prior to February 1, 2000 follow the contingent deferred
sales charge schedule at the time the shares were initially purchased. 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
Securities traded on an established exchange or the Nasdaq National Market Sys-
tem (NMS) are valued at the last sales price on the exchange where the security
is primarily traded. Securities traded in the over-the-counter market are val-
ued on the basis of the last sales price. Securities traded on an exchange or
NMS and other securities traded in the over-the-counter markets for which there
has been no sale are valued at the mean between the bid and asked price.
Securities for which market quotations are not readily available, including
restricted securities, are val-ued at fair value as determined in good faith
according to procedures approved by the Board of Trustees.
Mutual fund shares held in a fund are valued at the net asset value of each mu-
tual fund.
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
93
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
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 ad-
visor to be creditworthy pursuant to guidelines established by the Board of
Trustees.
Pursuant to an exemptive order issued by the Securities and Exchange Commis-
sion, the Funds may transfer uninvested cash balances into a joint trading ac-
count. These balances are invested in one or more repurchase agreements that
are fully collateralized by U.S. Treasury and/or federal agency obligations.
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 investments, other assets and liabilities at the daily rate of
exchange; purchases and sales of investments 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 is a component of net unrealized gains or losses on se-
curities and foreign currency related transactions. Net realized foreign cur-
rency gain or loss on foreign currency related transactions includes foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency related transactions and the differ-
ence between the amounts of interest and dividends recorded on the books of the
Fund and the amount actually received. The portion 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 gain or loss
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 securities denominated
in a foreign currency and to hedge certain foreign currency assets or liabili-
ties. Forward contracts are recorded at the forward rate and marked-to-market
daily. Realized gains and losses arising from such transactions are included in
net realized gain or loss on foreign currency related transactions. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract and is subject to the credit risk that the
other party will not fulfill their obligations under the contract. Forward con-
tracts involve elements of market risk in excess of the amount reflected in the
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 qualified financial organizations.
The Funds' investment advisors will monitor the creditworthiness of such bor-
rowers. 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 moni-
94
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
tors the adequacy of the collateral daily and will require the borrower to pro-
vide 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 in-
creasing 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.
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 and capital
gains realized on some foreign securities may be 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 income, and
net capital gains, if any, to their shareholders. The Funds also intend to
avoid any excise tax liability by making the required distributions under the
Code. Accordingly, no provision for federal taxes is required. To the extent
that realized capital gains can be offset by capital loss carryforwards, it is
each Fund's policy not to distribute such gains.
I. Distributions
Distributions from net investment income and/or 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
accordance with income tax regulations, which may differ from generally
accepted accounting principles.
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 for Global Leaders Fund and Perpetual International Fund
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 out-
standing at the time of the redemption.
3. INVESTMENT IN FOREIGN SUBSIDIARY
Precious Metals (Bermuda) Ltd., a wholly-owned, unconsolidated foreign subsidi-
ary of the Precious Metals Fund, was acquired in May 1975 and has as its pri-
mary objective the acquisition of precious metals. The Fund
95
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
accounts for its investments in the subsidiary under the equity method of ac-
counting. At April 30, 2000, the fair value of the Fund's investment in the
foreign subsidiary was determined as follows:
<TABLE>
<S> <C>
Cash and cash equivalents............................... $902,847
Accrued expenses........................................ (31,615)
--------
$871,232
========
</TABLE>
During the six months ended April 30, 2000, 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 $21,167, $13,886 and $7,281, re-
spectively. Management fees paid or accrued to EIMC totaled $2,891 during the
six months ended April 30, 2000.
4. INVESTMENT ADVISORY AGREEMENTS AND OTHER AFFILIATED TRANSACTIONS
Evergreen Investment Management ("EIM"), a division of First Union National
Bank ("FUNB"), is the investment advisor to Emerging Markets Growth Fund and is
paid an advisory fee that is computed and paid daily at an annual rate starting
at 1.42% and declining to 1.27% of the Fund's average daily net assets. Prior
to January 3, 2000, the management fee was computed by applying percentage
rates, starting at 1.50% and declining to 1.35% per annum as net assets in-
creased, to the average daily net assets of the Fund.
Evergreen Investment Management Company ("EIMC") an indirect wholly owned sub-
sidiary of FUNB, is the investment sub-advisor to Emerging Markets Growth Fund.
Under the terms of the sub-advisory agreement, EIMC is responsible for the in-
vestment decisions for the Fund and is paid by EIM at no additional expense to
the Fund.
Evergreen Asset Management Corp. ("EAMC"), an indirect wholly-owned subsidiary
of FUNB, is the investment advisor to the Global Leaders Fund and is paid a
management fee that is computed and paid daily at an annual rate of 0.87% of
the Fund's average daily net assets. Prior to January 3, 2000, the management
fee was computed daily at an annual rate of 0.95% of the Fund's average daily
net assets.
Lieber & Company, an affiliate of First Union, is the investment sub-advisor to
Global Leaders Fund and also provides brokerage services with respect to sub-
stantially all security transactions of the Fund effected on the New York or
American Stock Exchanges. For the six months ended April 30, 2000, Global Lead-
ers Fund incurred brokerage commissions of $75,063 with Lieber & Company.
Lieber & Company is reimbursed by EAMC for providing investment sub-advisory
services at no additional expense to the Fund.
EIMC is the investment advisor for Global Opportunities Fund, International
Growth Fund, Latin America Fund and Precious Metals Fund. In return for provid-
ing investment management and administrative services to the Funds, EIMC is
paid an advisory fee that is computed and paid daily based on average daily net
assets, in accordance with the following schedules:
<TABLE>
<CAPTION>
Global Opportunities Fund International Growth Fund Latin America Fund
Average Daily Net Assets Current Prior to 1/3/2000 Current Prior to 1/3/2000 Current Prior to 1/3/2000
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
on the first $200
million 0.91% 1.00% 0.66% 0.75% 0.66% 0.75%
on the next $200 million 0.86% 0.95% 0.56% 0.65% 0.56% 0.65%
on the next $200 million 0.76% 0.85% 0.46% 0.55% 0.46% 0.55%
in excess of $600
million 0.66% 0.75% 0.36% 0.45% 0.36% 0.45%
</TABLE>
<TABLE>
<CAPTION>
Precious Metals Fund
Average Daily Net Assets Current Prior to 1/3/2000
----------------------------------------------------------------------
<S> <C> <C>
on the first $200 million 0.660% 0.750%
on the next $200 million 0.535% 0.625%
in excess of $200 million 0.410% 0.500%
</TABLE>
For Precious Metals Fund, Harbor Capital Management Company, Inc. ("Harbor Cap-
ital"), is a consultant to EIMC and its subsidiary pursuant to a Consultant
Agreement. In accordance with the terms of the Consultant Agreement, Harbor
Capital provides EIMC with monthly reports discussing the world's gold bullion
markets, the gold stock markets, and advice regarding economic factors and
trends in the precious metals sectors. For
96
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
its services, Harbor Capital receives from EIMC a fee at the annual rate of
.035% of the Fund's average daily net assets. Expenses associated with these
services are a cost of EIMC and are not a Fund expense.
Mentor Perpetual Advisors, LLC ("Mentor Perpetual"), an advisory firm organized
in 1995, is owned equally by Perpetual Plc and Mentor Investment Advisors, LLC
("Mentor Advisors"). Mentor Perpetual, a subsidiary of First Union, serves as
the investment advisor to the Perpetual Global Fund and the Perpetual Interna-
tional Fund and is paid a management fee that is computed and paid daily at an
annual rate of 1.10% on the first $75 million and 1.00% over $75 million on the
Perpetual Global Fund's average daily net assets and 1.00% on the Perpetual In-
ternational Fund's average daily net assets.
Evergreen Investment Services ("EIS"), an indirect, wholly-owned subsidiary of
FUNB, is the administrator to the Funds. As administrator, EIS provides the
Funds with facilities, equipment and personnel. Prior to March 15, 2000, The
BISYS Group, Inc. ("BISYS") served as the sub-administrator to each Fund except
Perpetual Global Fund and Perpetual International Fund, and provided the offi-
cers of the Funds. Officers of the Funds and affiliated Trustees receive no
compensation directly from the Funds.
During the six months ended April 30, 2000, the following amounts were paid or
accrued to EIS for administrative and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
Fee Fee
---------------------------------
<S> <C> <C>
Emerging Markets Growth Fund.. $ 28,788 $1,736
Global Leaders Fund........... 150,201 6,000
Global Opportunities Fund..... 92,545 0
International Growth Fund..... 285,005 0
Latin America Fund............ 12,113 0
Perpetual Global Fund......... 176,633 0
Perpetual International Fund.. 103,348 0
Precious Metals Fund.......... 24,656 0
</TABLE>
Evergreen Service Company ("ESC"), an indirect, wholly owned subsidiary of
FUNB, is the transfer and dividend disbursing agent for the Funds.
5. 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". Under the Distribu-
tion Plans, Class A incurs distributions fees equal to 0.25% of the average
daily net asset of the class, all of which is used to pay for shareholder serv-
ice fees. Class B and Class C incur distribution fees equal to 1.00% of the av-
erage daily net assets of each class. Of this amount, 0.25% is used to pay for
shareholder service fees and 0.75% is used to pay for distribution-related
costs. Distribution Plan expenses are calculated and paid daily.
During the six months ended April 30, 2000, 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...... $ 12,493 $ 21,211 $ 6,685
Global Leaders Fund............... 193,079 1,110,992 24,983
Global Opportunities Fund......... 80,121 746,374 136,975
International Growth Fund......... 179,030 310,400 13,883
Latin America Fund................ 7,555 119,895 22,896
Perpetual Global Fund............. 114,077 6,504 714,705
Perpetual International Fund...... 138,576 14,318 358,697
Precious Metals Fund.............. 78,217 50,926 1,798
</TABLE>
97
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
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.
6. 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 Class Y. Transactions in shares of
the Funds were as follows:
Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,281,480 $ 15,402,049 3,543,290 $ 29,482,483
Automatic conversion of
Class B shares to Class A
shares................... 10,616 133,796 10 77
Shares redeemed........... (1,354,264) (16,316,813) (3,428,541) (28,781,121)
Shares issued in
reinvestment of
distributions............ 0 0 1,318 10,188
-------------------------------------------------------------------------------
Net increase (decrease)... (62,168) (780,968) 116,077 711,627
-------------------------------------------------------------------------------
Class B
Shares sold............... 98,904 1,135,607 407,049 3,522,757
Automatic conversion of
Class B shares to Class A
shares................... (10,986) (133,796) (11) (77)
Shares redeemed........... (125,991) (1,453,906) (410,595) (3,530,980)
Shares issued in
reinvestment of
distributions............ 0 0 525 3,951
-------------------------------------------------------------------------------
Net decrease.............. (38,073) (452,095) (3,032) (4,349)
-------------------------------------------------------------------------------
Class C
Shares sold............... 46,245 563,921 683,522 5,671,715
Shares redeemed........... (27,000) (302,690) (645,248) (5,421,662)
Shares issued in
reinvestment of
distributions............ 0 0 128 965
-------------------------------------------------------------------------------
Net increase.............. 19,245 261,231 38,402 251,018
-------------------------------------------------------------------------------
Class Y
Shares sold............... 503,696 6,219,949 606,350 5,374,900
Shares redeemed........... (258,644) (3,019,459) (1,201,144) (9,809,452)
Shares issued in
reinvestment of
distributions............ 0 0 12,822 99,883
-------------------------------------------------------------------------------
Net increase (decrease)... 245,052 3,200,490 (581,972) (4,334,669)
-------------------------------------------------------------------------------
Net increase (decrease)... $ 2,228,658 $ (3,376,373)
</TABLE>
--------------------------------------------------------------------------------
98
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Global Leaders Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
-------------------------- -----------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 40,295,078 $ 769,732,232 149,775,697 $ 2,553,984,674
Automatic conversion of
Class B shares to Class
A shares............... 58,537 1,173,161 29,476 486,432
Shares redeemed......... (43,118,047) (826,408,818) (149,220,868) (2,545,616,938)
Shares issued in
reinvestment of
distributions.......... 120,000 2,254,809 0 0
------------------------------------------------------------------------------------
Net increase
(decrease)............. (2,644,432) (53,248,616) 584,305 8,854,168
------------------------------------------------------------------------------------
Class B
Shares sold............. 1,543,526 28,855,789 2,983,412 49,075,131
Automatic conversion of
Class B shares to Class
A shares............... (60,074) (1,173,161) (30,042) (486,432)
Shares redeemed......... (999,441) (18,643,918) (2,712,290) (44,818,465)
Shares issued in
reinvestment of
distributions.......... 198,173 3,632,517 0 0
------------------------------------------------------------------------------------
Net increase............ 682,184 12,671,227 241,080 3,770,234
------------------------------------------------------------------------------------
Class C
Shares sold............. 120,337 2,238,130 436,197 7,288,074
Shares redeemed......... (55,796) (1,034,556) (449,559) (7,565,353)
Shares issued in
reinvestment of
distributions.......... 3,744 68,542 0 0
------------------------------------------------------------------------------------
Net increase
(decrease)............. 68,285 1,272,116 (13,362) (277,279)
------------------------------------------------------------------------------------
Class Y
Shares sold............. 318,496 6,194,063 1,229,283 20,568,567
Shares redeemed......... (594,011) (11,485,087) (1,473,987) (24,731,995)
Shares issued in
reinvestment of
distributions.......... 37,105 704,619 0 0
------------------------------------------------------------------------------------
Net decrease............ (238,410) (4,586,405) (244,704) (4,163,428)
------------------------------------------------------------------------------------
Net increase
(decrease)............. $ (43,891,678) $ 8,183,695
------------------------------------------------------------------------------------
Global Opportunities Fund
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
-------------------------- -----------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 1,648,978 $ 50,230,581 4,627,373 $ 99,881,014
Automatic conversion of
Class B shares to Class
A shares............... 32,209 883,618 14,891 303,460
Shares redeemed......... (1,732,734) (51,907,878) (5,772,965) (124,989,786)
Shares issued in
reinvestment of
distributions.......... 245,681 6,048,679 122,671 2,341,786
------------------------------------------------------------------------------------
Net increase
(decrease)............. 194,134 5,255,000 (1,008,030) (22,463,526)
------------------------------------------------------------------------------------
Class B
Shares sold............. 945,349 27,727,757 1,129,857 22,630,544
Automatic conversion of
Class B shares to Class
A shares............... (32,209) (883,618) (15,664) (303,460)
Shares redeemed......... (558,205) (15,728,776) (3,636,366) (72,583,990)
Shares issued in
reinvestment of
distributions.......... 700,434 16,095,967 395,618 7,188,374
------------------------------------------------------------------------------------
Net increase
(decrease)............. 1,055,369 27,211,330 (2,126,555) (43,068,532)
------------------------------------------------------------------------------------
Class C
Shares sold............. 261,854 7,699,807 301,760 6,526,297
Shares redeemed......... (102,002) (2,975,480) (818,441) (16,857,938)
Shares issued in
reinvestment of
distributions.......... 97,180 2,239,034 74,801 1,362,112
------------------------------------------------------------------------------------
Net increase
(decrease)............. 257,032 6,963,361 (441,880) (8,969,529)
------------------------------------------------------------------------------------
Class Y
Shares sold............. 58,566 1,960,701 345,945 7,006,438
Shares redeemed......... (33,623) (1,132,512) (338,842) (6,872,243)
Shares issued in
reinvestment of
distributions.......... 789 19,537 102 1,957
------------------------------------------------------------------------------------
Net increase............ 25,732 847,726 7,205 136,152
------------------------------------------------------------------------------------
Net increase
(decrease)............. $ 40,277,417 $ (74,365,435)
</TABLE>
--------------------------------------------------------------------------------
99
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
International Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
------------------------ --------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 8,293,046 $ 77,212,756 21,575,997 $ 171,780,072
Automatic conversion of
Class B shares to Class
A shares............... 1,590,160 14,978,987 1,347,930 10,713,110
Shares redeemed......... (9,450,347) (88,550,976) (25,523,574) (203,568,111)
Shares issued in
reinvestment of
distributions.......... 740,485 6,517,292 0 0
-------------------------------------------------------------------------------
Net increase
(decrease)............. 1,173,344 10,158,059 (2,599,647) (21,074,929)
-------------------------------------------------------------------------------
Class B
Shares sold............. 950,258 8,803,373 1,787,282 13,964,924
Automatic conversion of
Class B shares to Class
A shares............... (1,603,467) (14,978,987) (1,357,201) (10,713,110)
Shares redeemed......... (1,059,170) (9,836,955) (3,169,583) (25,101,734)
Shares issued in
reinvestment of
distributions.......... 367,890 3,169,605 0 0
-------------------------------------------------------------------------------
Net decrease............ (1,344,489) (12,842,964) (2,739,502) (21,849,920)
-------------------------------------------------------------------------------
Class C
Shares sold............. 204,960 1,912,535 1,396,578 10,829,107
Shares redeemed......... (229,171) (2,106,101) (1,578,331) (12,298,336)
Shares issued in
reinvestment of
distributions.......... 11,641 100,287 0 0
-------------------------------------------------------------------------------
Net decrease............ (12,570) (93,279) (181,753) (1,469,229)
-------------------------------------------------------------------------------
Class Y
Shares sold............. 10,700,955 99,197,905 13,098,531 104,579,420
Shares redeemed......... (6,621,862) (62,290,322) (12,649,097) (100,994,728)
Shares issued in
reinvestment of
distributions.......... 3,418,624 30,025,803 0 0
-------------------------------------------------------------------------------
Net increase............ 7,497,717 66,933,386 449,434 3,584,692
-------------------------------------------------------------------------------
Net increase
(decrease)............. $ 64,155,202 $ (40,809,386)
-------------------------------------------------------------------------------
Latin America Fund
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
------------------------ --------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 201,720 $ 2,182,881 1,930,232 $ 14,545,208
Automatic conversion of
Class B shares to Class
A shares............... 11,661 135,955 34,610 210,139
Shares redeemed......... (265,668) (2,847,412) (2,242,871) (17,283,474)
-------------------------------------------------------------------------------
Net decrease............ (52,287) (528,576) (278,029) (2,528,127)
-------------------------------------------------------------------------------
Class B
Shares sold............. 46,379 495,459 1,066,302 7,728,794
Automatic conversion of
Class B shares to Class
A shares............... (12,122) (135,955) (35,725) (210,139)
Shares redeemed......... (519,211) (5,375,924) (2,826,857) (20,333,293)
-------------------------------------------------------------------------------
Net decrease............ (484,954) (5,016,420) (1,796,280) (12,814,638)
-------------------------------------------------------------------------------
Class C
Shares sold............. 55,846 551,285 427,770 3,341,817
Shares redeemed......... (97,526) (976,786) (611,544) (4,630,544)
-------------------------------------------------------------------------------
Net decrease............ (41,680) (425,501) (183,774) (1,288,727)
-------------------------------------------------------------------------------
Class Y
Shares sold............. 5,932 63,813 58,016 485,219
Shares redeemed......... (2,297) (25,245) (29,686) (260,089)
-------------------------------------------------------------------------------
Net increase............ 3,635 38,568 28,330 225,130
-------------------------------------------------------------------------------
Net decrease............ $ (5,931,929) $ (16,406,362)
</TABLE>
--------------------------------------------------------------------------------
100
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Perpetual Global Fund
<TABLE>
<CAPTION>
One-Month Period
Six Months Ended Ended October 31, Year Ended
April 30, 2000 1999 (a) (b) September 30, 1999
------------------------ ---------------------- ------------------------
Shares Amount Shares Amount Shares Amount
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold............. 784,431 $ 18,181,048 314,307 $ 10,270,258 4,607,081 $ 98,857,851
Shares redeemed......... (1,049,163) (24,340,927) (538,932) (15,634,634) (4,131,024) (89,908,934)
Shares issued in
reinvestment of
distributions.......... 546,667 11,725,991 0 247,789 4,601,451
----------------------------------------------------------------------------------------------------
Net increase
(decrease)............. 281,935 5,566,112 (224,625) (5,364,376) 723,846 13,550,368
----------------------------------------------------------------------------------------------------
Class B (c)
Shares sold............. 148,977 3,482,177 43,920 1,030,263
Shares redeemed......... (88,384) (2,138,599) 0 0
Shares issued in
reinvestment of
distributions.......... 2,735 58,641 0 0
----------------------------------------------------------------------------------------------------
Net increase............ 63,328 1,402,219 43,920 1,030,263
----------------------------------------------------------------------------------------------------
Class C
Shares sold............. 3,101,705 68,816,040 98,302 2,176,993 1,142,468 23,500,042
Shares redeemed......... (3,167,523) (70,206,310) (67,902) (1,508,791) (1,216,923) (24,875,681)
Shares issued in
reinvestment of
distributions.......... 928,783 18,798,562 0 0 452,424 8,053,145
----------------------------------------------------------------------------------------------------
Net increase............ 862,965 17,408,292 30,400 668,202 377,969 6,677,506
----------------------------------------------------------------------------------------------------
Class Y
Shares sold............. 1,203 27,872 0 0 0 0
Shares redeemed......... (663) (15,106) 0 0 0 0
Shares issued in
reinvestment of
distributions.......... 6 135 0 0 5 85
----------------------------------------------------------------------------------------------------
Net increase............ 546 12,901 0 0 5 85
----------------------------------------------------------------------------------------------------
Net increase
(decrease)............. $ 24,389,524 $ (3,665,911) $ 20,227,959
</TABLE>
--------------------------------------------------------------------------------
(a) For the one-month period ended October 31, 1999. The Fund changed its fis-
cal year end from September 30 to October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per-
petual International Portfolio were redesignated as Class C shares of Ever-
green Perpetual Global Fund.
(c) For the period from October 18, 1999 (commencement of class operations) to
October 31, 1999.
Perpetual International Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999 (a)
------------------------ -------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (b)
Shares sold.............. 2,996,197 $ 55,753,515 8,955,978 $ 146,972,039
Automatic conversion of
Class B shares to Class
A shares................ 49 940 0 0
Shares redeemed.......... (2,091,360) (39,223,307) (8,308,120) (138,054,461)
Shares issued in
reinvestment of
distributions........... 547,336 9,432,273 0 0
------------------------------------------------------------------------------
Net increase............. 1,452,222 25,963,421 647,858 8,917,578
------------------------------------------------------------------------------
Class B (c)
Shares sold.............. 341,674 6,299,596 13,367 243,053
Automatic conversion of
Class B shares to Class
A shares................ (49) (940) 0 0
Shares redeemed.......... (118,531) (2,191,518) 0 0
Shares issued in
reinvestment of
distributions........... 5,118 88,843 0 0
------------------------------------------------------------------------------
Net increase............. 228,212 4,195,981 13,367 243,053
------------------------------------------------------------------------------
Class C
Shares sold.............. 2,439,999 46,269,740 1,150,156 18,818,762
Shares redeemed.......... (1,637,383) (31,290,200) (723,566) (11,761,221)
Shares issued in
reinvestment of
distributions........... 368,535 6,231,920 0 0
------------------------------------------------------------------------------
Net increase............. 1,171,151 21,211,460 426,590 7,057,541
------------------------------------------------------------------------------
Class Y
Shares sold.............. 93,795 1,821,701 44 750
Shares redeemed.......... (314,271) (5,959,212) (390,913) (6,130,434)
Shares issued in
reinvestment of
distributions........... 28,154 489,595 0 0
------------------------------------------------------------------------------
Net decrease............. (192,322) (3,647,916) (390,869) (6,129,684)
------------------------------------------------------------------------------
Net increase............. $ 47,722,946 $ 10,088,488
</TABLE>
--------------------------------------------------------------------------------
(a) Effective October 18, 1999, shareholders of Mentor Perpetual International
Portfolio Class A, Class B and Class Y shares became owners of that number
of full and fractional shares of Class A, Class C and Class Y shares, re-
spectively, of Evergreen Perpetual International Fund. Class B shares of
Mentor Perpetual International Portfolio were redesignated as Class C
shares of Evergreen Perpetual International Fund.
(b) As a result of the conversion of Mentor Perpetual International Portfolio
to Evergreen Perpetual International Fund, the shareholders of Mentor Per-
petual International Portfolio, Class E, became owners of that number of
full and fractional shares of Evergreen Perpetual International Fund, Class
A, having a net asset value equal to the net asset value of their shares
immediately prior to the conversion of shares.
(c) For the period from October 18, 1999 (commencement of class operations) to
October 31, 1999.
101
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Precious Metals Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 2000 October 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 811,237 $ 9,143,664 4,753,120 $ 53,717,724
Automatic conversion of
Class B shares to Class A
shares................... 357,922 3,983,506 451,153 5,261,155
Shares redeemed........... (1,467,356) (16,479,184) (6,526,818) (73,614,764)
-------------------------------------------------------------------------------
Net decrease.............. (298,197) (3,352,014) (1,322,545) (14,635,885)
-------------------------------------------------------------------------------
Class B
Shares sold............... 291,629 3,257,103 1,911,827 21,129,266
Automatic conversion of
Class B shares to Class A
shares................... (363,472) (3,983,506) (454,370) (5,261,155)
Shares redeemed........... (370,290) (4,125,260) (2,506,551) (28,224,561)
-------------------------------------------------------------------------------
Net decrease.............. (442,133) (4,851,663) (1,049,094) (12,356,450)
-------------------------------------------------------------------------------
Class C
Shares sold............... 85,728 983,219 1,133,571 12,718,285
Shares redeemed........... (104,413) (1,190,860) (1,142,043) (12,835,852)
-------------------------------------------------------------------------------
Net decrease.............. (18,685) (207,641) (8,472) (117,567)
-------------------------------------------------------------------------------
Class Y (a)
Shares sold............... 96 1,000
Shares redeemed........... 0 0
-------------------------------------------------------------------------------
Net increase.............. 96 1,000
-------------------------------------------------------------------------------
Net decrease.............. $ (8,410,318) $(27,109,902)
-------------------------------------------------------------------------------
</TABLE>
(a) For the period February 29, 2000 (commencement of class operations) to
April 30, 2000.
7. 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, 2000:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
-------------------------
<S> <C> <C>
Emerging Markets Growth Fund.......... $ 23,106,969 $ 21,519,829
Global Leaders Fund................... 86,200,492 108,945,134
Global Opportunities Fund............. 258,130,452 252,045,418
International Growth Fund............. 598,133,571 575,520,259
Latin America Fund.................... 4,564,802 10,733,884
Perpetual Global Fund................. 213,398,056 235,830,502
Perpetual International Fund.......... 148,457,520 129,640,840
Precious Metals Fund.................. 14,823,143 22,018,442
</TABLE>
At April 30, 2000, Global Opportunities Fund, International Growth Fund, Per-
petual Global Fund and Perpetual International Fund had forward foreign ex-
change contracts outstanding as follows:
Global Opportunities Fund
Forward Foreign Currency Exchange Contracts to Buy:
<TABLE>
<CAPTION>
Exchange U.S. Value at In Exchange Unrealized
Date Contracts to Receive April 30, 2000 for U.S. $ Loss
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/15/2000 466,450,000 Japanese Yen $4,331,436 $4,414,214 $(82,778)
</TABLE>
Forward Foreign Currency Exchange Contracts to Sell:
<TABLE>
<CAPTION>
Exchange U.S. Value at In Exchange Unrealized
Date Contracts to Deliver April 30, 2000 for U.S. $ Gain
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/15/2000 1,318,300,980 Japanese Yen $12,241,691 $12,280,000 $38,309
</TABLE>
102
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
International Growth Fund
Forward Foreign Currency Exchange Contracts to Buy:
<TABLE>
<CAPTION>
Exchange U.S. Value at In Exchange Unrealized
Date Contracts to Receive April 30, 2000 for U.S. $ Gain
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/15/2000 6,017,700,442 Japanese Yen $55,880,130 $56,055,000 $174,870
</TABLE>
Forward Foreign Currency Exchange Contracts to Sell:
<TABLE>
<CAPTION>
Exchange U.S. Value at In Exchange Unrealized
Date Contracts to Deliver April 30, 2000 for U.S. $ Gain
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/15/2000 2,369,972,800 Japanese Yen $22,007,475 $23,200,000 $1,192,525
</TABLE>
Perpetual Global Fund
Forward Foreign Currency Exchange Contracts to Sell:
<TABLE>
<CAPTION>
Exchange U.S. Value at In Exchange Unrealized
Date Contracts to Deliver April 30, 2000 for U.S. $ Gain
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/29/2001 2,145,727,500 Japanese Yen $20,899,472 $21,500,000 $600,528
</TABLE>
Perpetual International Fund
Forward Foreign Currency Exchange Contracts to Sell:
<TABLE>
<CAPTION>
Exchange U.S. Value at In Exchange Unrealized
Date Contracts to Deliver April 30, 2000 for U.S. $ Gain
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/29/2001 2,664,840,500 Japanese Yen $25,955,653 $26,700,000 $744,347
</TABLE>
At April 30, 2000, the International Growth Fund had open futures contracts
outstanding as follows:
<TABLE>
<CAPTION>
Initial
Contract Value at Unrealized
Expiration Contracts Amount April 30, 2000 Loss
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
06/2000 107 Nikkei 225 $10,945,825 $9,737,000 ($1,208,825)
</TABLE>
For the six months ended April 30, 2000 Global Opportunities Fund, Perpetual
Global Fund and Perpetual International Fund loaned securities to certain qual-
ified brokers who paid the Funds a negotiated lenders' fee. These fees are in-
cluded in interest income. Global Opportunities Fund participated in this pro-
gram during the six months, but did not participate at the period ending April
30, 2000. At April 30, 2000, the value of securities on loan and the value of
collateral (including accrued interest) were as follows:
<TABLE>
<CAPTION>
Value of
Securities Value of
on Loan Collateral
-----------------------
<S> <C> <C>
Perpetual Global Fund................... $25,195,438 $26,424,842
Perpetual International Fund............ 27,098,135 29,357,213
</TABLE>
During the six months ended April 30, 2000, Global Opportunities Fund, Perpet-
ual Global Fund and Perpetual International Fund earned $82,233, $64,479, and
$80,619 respectively, in income from securities lending.
For Federal tax purposes, the following funds had capital loss carryforwards as
of October 31, 1999:
<TABLE>
<CAPTION>
Capital Loss
Carryforward Expiration
-----------------------
<S> <C> <C>
Emerging Markets Growth Fund $10,853,315 2006
Global Leaders Fund 998,597 2005
International Growth Fund 22,838,189 2005
Latin America Fund 18,870,605 2006
5,971,777 2007
Precious Metals Fund 50,308,129 2006
33,416,250 2007
</TABLE>
103
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
8. EXPENSE REDUCTIONS
The Funds have entered into expense offset arrangements with ESC and their cus-
todian whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each Fund's related expenses. The assets deposited
with ESC and the custodian under these expense offset arrangements could have
been invested in income-producing assets. The amount of expense reductions re-
ceived by each Fund and the impact of the total expense reductions on each
Fund's annualized expense ratio represented as a percentage of its average net
assets were as follows:
<TABLE>
<CAPTION>
Total Expense % of Average
Reductions Net Assets
--------------------------
<S> <C> <C>
Emerging Markets Growth Fund......... $ 3,788 0.01%
Global Leaders Fund.................. 8,390 0.00%
Global Opportunities Fund............ 11,814 0.01%
International Growth Fund............ 17,716 0.00%
Latin America Fund................... 1,218 0.01%
Perpetual Global Fund................ 9,318 0.01%
Perpetual International Fund......... 6,777 0.01%
Precious Metals Fund................. 1,888 0.01%
</TABLE>
9. 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. At the election of the Trustees, the deferral account will be paid
either in one lump sum or in quarterly installments for up to ten years.
10. FINANCING AGREEMENT
On July 27, 1999, certain Evergreen Funds and a group of banks (the "Lenders")
entered into a credit agreement. The Perpetual Global Fund and Perpetual Inter-
national Fund entered into this agreement on August 6, 1999. Under this agree-
ment, the Lenders provide an unsecured revolving credit commitment in the ag-
gregate amount of $1.050 billion. The credit facility is allocated, under the
terms of the financing agreement, among the Lenders. The credit facility is ac-
cessed by the Funds for temporary or emergency purposes to fund the redemption
of their shares or for general working capital purposes as permitted by each
Fund's borrowing restrictions. Borrowings under this facility bear interest at
0.75% per annum above the Federal Funds rate (1.50% per annum above the Federal
Funds rate during the period from and including December 1, 1999 through and
including January 31, 2000). A commitment fee of 0.10% per annum is incurred on
the average daily unused portion of the revolving credit commitment. The com-
mitment fee is allocated to all funds. For its assistance in arranging this fi-
nancing agreement, First Union Capital Markets Corp. was paid a one-time ar-
rangement fee of $250,000. State Street serves as paying agent for the funds
and as paying agent is entitled to a fee of $20,000 per annum which is allo-
cated to all the funds.
Below is a summary of the borrowing activity for each Fund that significantly
utilized the line of credit during the six months ended April 30, 2000:
<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........... $ 93,559 0.02% 90 $2,857,991 6.694% $21,041,000
Perpetual Global
Fund........... 122,772 0.10% 122 5,365,623 6.752% 17,038,000
</TABLE>
11. CONCENTRATION OF CREDIT RISK
The Funds may invest a substantial portion of its assets in an industry or sec-
tor and, therefore, may be more affected by changes in the industry or sector
than would be a comparable mutual fund that is not weighed in any industry or
sector.
104
<PAGE>
Evergreen Funds
Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Florida Municipal Money Market Fund
New Jersey Municipal Money Market Fund
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Tax Advantaged
Short Intermediate Municipal Bond Fund
High Grade Municipal Bond Fund
Municipal Bond Fund
Connecticut Municipal Bond Fund
Florida Municipal Bond Fund
Florida High Income Municipal Bond Fund
Georgia Municipal Bond Fund
Maryland Municipal Bond Fund
New Jersey Municipal Bond Fund
North Carolina Municipal Bond Fund
Pennsylvania Municipal Bond Fund
South Carolina Municipal Bond Fund
Virginia Municipal Bond Fund
Tax-Free High Income Fund
Income
Short-Duration Income Fund
Intermediate Term Bond Fund
U.S. Government Fund
Quality Income Fund
Diversified Bond Fund
Strategic Income Fund
High Yield Bond Fund
Balanced
Tax Strategic Foundation Fund
Foundation Fund
Balanced Fund
Growth & Income
Utility Fund
Income and Growth Fund
Value Fund
Blue Chip Fund
Growth and Income Fund
Small Cap Value Fund
Select Equity Index Fund
Domestic Growth
Tax Strategic Equity Fund
Capital Growth Fund
Stock Selector Fund
Evergreen Fund
Strategic Growth Fund
Masters Fund
Omega Fund
Small Company Growth Fund
Growth Fund
Aggressive Growth Fund
Select Special Equity Fund
Global International
Global Leaders Fund
Perpetual Global Fund
International Growth Fund
Perpetual International 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
541076 6/2000
----------------
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----------------
