<PAGE>
Evergreen Select
Money Market
Funds
February 28, 1998
Annual Report
Evergreen Tree Funds Logo appears here in forefront of tree branch background.
Picture of Trees, American Flag and Lighthouse in picture with $20 bills in
background.
<PAGE>
Table of Contents
<TABLE>
<S> <C>
Letter to Shareholders ....................... 1
Evergreen Select Money Market Fund
Fund at a Glance .......................... 2
Evergreen Select Municipal Money
Market Fund
Fund at a Glance .......................... 3
Evergreen Select Treasury Money
Market Fund
Fund at a Glance .......................... 4
Evergreen Select 100% Treasury Money
Market Fund
Fund at a Glance .......................... 5
Financial Highlights
Evergreen Select Money Market Fund ........ 6
Evergreen Select Municipal Money Market
Fund ................................... 7
Evergreen Select Treasury Money
Market Fund ............................ 8
Evergreen Select 100% Treasury Money
Market Fund ............................ 9
</TABLE>
<TABLE>
<S> <C>
Schedule of Investments
Evergreen Select Money Market Fund ........ 10
Evergreen Select Municipal Money Market
Fund ................................... 13
Evergreen Select Treasury Money
Market Fund ............................ 17
Evergreen Select 100% Treasury Money
Market Fund ............................ 19
Statements of Assets and Liabilities ......... 20
Statements of Operations ..................... 21
Statements of Changes in Net Assets -
Year Ended February 28, 1998 and
Period Ended February 28, 1997 ............ 22
Combined Notes to Financial
Statements ................................... 23
Report of Independent Accountants
Price Waterhouse LLP ...................... 29
Additional Information ....................... 30
</TABLE>
- --------------------------------------------------------------------------------
Evergreen Funds
Evergreen Funds is one of the nation's fastest growing investment companies
with more than $47 billion in assets under management.
With over 80 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broader range of quality investment products
and services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
- ------------------------------------------------------------------------
This annual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees and expenses, and should be read carefully before
investing or sending money.
<TABLE>
<C> <C> <S>
Mutual Funds: ARE NOT FDIC INSURED May lose value o Are not bank guaranteed
</TABLE>
Evergreen Distributor, Inc.
Evergreen(SM) is a Service Mark of Evergreen Investment Services, Inc. Copyright
1998.
<PAGE>
Letter to Shareholders
April 1998
Dear Shareholders:
Picture of William M. Ennis
William M. Ennis
The 12-month period that ended on February 28,
1998, proved to be an especially rewarding one
for both domestic stock and long-term bond fund
investors, despite periods of dramatic
volatility and deep market corrections. The
Picture of David C. Francis markets continued their upward advance in early
David C. Francis 1998 in both the stock and the bond markets,
with stock market indices hitting new highs and
the yield on the 30-year Treasury Bond dipping
under 6%.
These strong recent returns, however, have
institutional investors concerneincreased the d about the lofty prices in the
stock market or worried about how far long-term uncertainty for many investors.
For those interest rates will decline before they begin to reverse directions,
money market funds provide a haven from market volatility and a means for
diversification as well as a source of current income and liquidity.
Yield Curve Flattens
For the 12 months that ended on February 28, 1998, the Evergreen Select Money
Market Funds provided strong returns while seeking to protect principal and
maintain stable net asset values. During that 12-month period, the yield curve
flattened rather dramatically as the yields on long-term investments dropped
far more than the yields on short-term investments. To illustrate, the yield on
the 30-year Treasury fell 88 basis points from 6.80% to 5.92%, while the yield
on a one-year Treasury fell just 26 basis points from 5.67% to 5.41%. This
allowed money funds to retain more of their dividend levels than
longer-maturity fixed income investments.
Safety and Liquidity
Market participants are currently debating how long the stock and bond markets
can sustain their rallies, and how significant any short-term volatility is
likely to be. In such an uncertain market environment, it makes increasing
sense to allocate a portion of an overall portfolio to relatively safe, liquid
institutional money funds, such as the Evergreen Select Money Market Funds.
As the information on the following pages attests, the Evergreen Select Money
Market Funds are managed in a conservative way, but still have been able to
provide competitive yields for the liquid portions of institutional investors'
portfolios.
At Evergreen Funds, we are committed to providing a strong array of Select
Funds, including money market funds, to help institutional investors assemble
personal portfolios that make sense for their needs and risk tolerances.
Thank you for your support of Evergreen Select Funds.
Sincerely,
(Signature of William M. Ennis)
William M. Ennis
Managing Director
Evergreen Funds
(Signature of David C. Francis, C.F.A.)
David C. Francis, C.F.A.
Chief Investment Officer
Managing Director
First Capital Group
1
<PAGE>
EVERGREEN
Select Money Market Fund
Fund at a Glance as of February 28, 1998
Portfolio
Management
- --------------------
Picture of Kellie Allen
Kellie Allen
Capital Management Group
Tenure: November 1996
Picture of Bryant K. White
Bryan K. White
Capital Management Group
Tenure: November 1996
Total Net Assets: $2,267,089,021
Average Maturity: 69 days
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Institutional
Institutional Service
Shares Shares
(Class I) (Class IS)
<S> <C> <C>
Inception Date 11/19/96 11/26/96
One year return 5.71 % 5.45 %
Average Annual Total Return
since Inception 5.71 % 5.45 %
7-day annualized yield 5.61 % 5.36 %
30-day annualized yield 5.62 % 5.37 %
12-month distributions $ 0.056 $ 0.053
</TABLE>
----------------------------------------
PORTFOLIO ALLOCATION
(as a percentage of portfolio assets)
(pie chart appears here with plot points)
Commercial Paper - 57.1%
Corporate Notes/Bonds - 26.3%
Certificates of Deposit - 6.8%
U.S. Government
Agency Notes - 3.9%
Variable Rate Notes - 2.2%
Funding Agreement - 2.0%
Repurrchase Agreement
and Mutual Fund Shares - 1.7%
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able to
maintain a stable NAV of $1.00 per share. Yields will fluctuate. Past
performance is no guarantee of future results.
2
<PAGE>
EVERGREEN
Select Municipal Money Market Fund
Fund at a Glance as of February 28, 1998
Portfolio
Management
- --------------------
Picture of Richard K. Marrone
Richard K. Marrone
Capital Management Group
Tenure: November 1996
Picture of Diane Beaver
Diane Beaver
Capital Management Group
Tenure: November 1996
Total Net Assets: $503,766,417
Average Maturity: 56 days
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Institutional
Institutional Service
Shares Shares
(Class I) (Class IS)
<S> <C> <C>
Inception Date 11/20/96 11/25/96
One year return 3.67 % 3.41 %
Average Annual Total Return
since Inception 3.64 % 3.39 %
7-day annualized yield 3.65 % 3.40 %
30-day annualized yield 3.47 % 3.22 %
12-month distributions $ 0.036 $ 0.034
</TABLE>
----------------------------------------
PORTFOLIO ALLOCATION
(as a percentage of portfolio assets)
(pie chart appears here with plot points)
General Obligation - 41.6%
Housing - 10.7%
Transportation - 9.2%
Education - 8.9%
Water & Sewer - 8.7%
Healthcare & Hospitals - 7.9%
Utilities - 7.3%
Pollution Control - 5.1%
Pre-refunded - 0.4%
Mutual Fund Shares - 0.2%
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able to
maintain a stable NAV of $1.00 per share. Yields will fluctuate. Past
performance is no guarantee of future results.
3
<PAGE>
EVERGREEN
Select Treasury Money Market Fund
Fund at a Glance as of February 28, 1998
Portfolio
Management
- --------------------
Picture of Kellie Allen
Kellie Allen
Capital Management Group
Tenure: November 1996
Picture of Bryan K. White
Bryan K. White
Capital Management Group
Tenure: November 1996
Total Net Assets: $2,261,759,977
Average Maturity: 36 days
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Institutional
Institutional Service
Shares Shares
(Class I) (Class IS)
<S> <C> <C>
Inception Date 11/20/96 11/27/96
One year return 5.51 % 5.25 %
Average Annual Total Return
since Inception 5.51 % 5.25 %
7-day annualized yield 5.46 % 5.21 %
30-day annualized yield 5.41 % 5.16 %
12-month distributions $ 0.055 $ 0.052
</TABLE>
----------------------------------------
PORTFOLIO ALLOCATION
(as a percentage of portfolio assets)
(pie chart appears here with plot points)
Repurchase Agreements - 72.3%
U.S Treasury Notes - 14.5%
U.S. Treasury Bills - 12.4%
Mutual Fund Shares - 0.8%
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able to
maintain a stable NAV of $1.00 per share. Yields will fluctuate. Past
performance is no guarantee of future results.
4
<PAGE>
EVERGREEN
Select 100% Treasury Money Market Fund
Fund at a Glance as of February 28, 1998
Portfolio
Management
- --------------------
Picture of Kellie Allen
Kellie Allen
Capital Management Group
Tenure: December 1997
Picture of Bryan K. White
Bryan K. White
Capital Management Group
Tenure: December 1997
Total Net Assets: $250,500,602
Average Maturity: 68 days
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Institutional
Institutional Service
Shares Shares
(Class I) (Class IS)
<S> <C> <C>
Inception Date 12/8/97 12/23/97
7-day annualized yield 5.17% 4.88%
30-day annualized yield 5.11% 4.84%
</TABLE>
The Fund was introduced in December 1997 and therefore has no annual
performance.
----------------------------------------
PORTFOLIO ALLOCATION
(as a percentage of portfolio assets)
(pie chart appears here with plot points)
U.S. Notes - 54.6%
U.S. Treasury Bills - 45.4%
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able to
maintain a stable NAV of $1.00 per share. Yields will fluctuate. Past
performance is no guarantee of future results.
5
<PAGE>
EVERGREEN
Select Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
November 19, 1996
(Commencement of
Class Operations)
Year Ended through
February 28, 1998 February 28, 1997
<S> <C> <C>
INSTITUTIONAL SHARES
- ---------------------------------------------------------------------------------------------
Net asset value beginning of period $ 1.000 $ 1.000
========= ===========
Income from investment operations
Net investment income 0.056 0.015
Less distributions from net investment income (0.056) (0.015)
--------- -----------
Net asset value end of period $ 1.000 $ 1.000
========= ===========
Total return 5.71% 1.57%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.20% 0.07%(a)
Total expenses excluding indirectly paid expenses 0.20% -
Total expenses excluding waivers and/or reimbursements 0.23% 0.43%(a)
Net investment income 5.60% 5.48%(a)
Net assets end of period (thousands) $1,051,741 $ 575,331
</TABLE>
<TABLE>
<CAPTION>
November 26, 1996
(Commencement of
Class Operations)
Year Ended through
February 28, 1998 February 28, 1997
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES
--------------------------------------------------------------------------------------------
Net asset value beginning of period $ 1.000 $ 1.000
========= ===========
Income from investment operations
Net investment income 0.053 0.014
Less distributions from net investment income (0.053) (0.014)
--------- -----------
Net asset value end of period $ 1.000 $ 1.000
========= ===========
Total return 5.45% 1.40%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.45% 0.32%(a)
Total expenses excluding indirectly paid expenses 0.45% -
Total expenses excluding waivers and/or reimbursements 0.48% 0.68%(a)
Net investment income 5.33% 5.24%(a)
Net assets end of period (thousands) $1,215,348 $ 867,294
</TABLE>
(a) Annualized.
See Combined Notes to Financial Statements.
6
<PAGE>
EVERGREEN
Select Municipal Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
November 20, 1996
(Commencement of
Class Operations)
Year Ended through
February 28, 1998 February 28, 1997
<S> <C> <C>
INSTITUTIONAL SHARES
- ----------------------------------------------------------------------------------------------
Net asset value beginning of period $ 1.000 $ 1.000
========= ============
Income from investment operations
Net investment income 0.036 0.010
Less distributions from net investment income (0.036) (0.010)
--------- ------------
Net asset value end of period $ 1.000 $ 1.000
========= ============
Total return 3.67% 0.96%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.10% 0.05%(a)
Total expenses excluding indirectly paid expenses 0.10% -
Total expenses excluding waivers and/or reimbursements 0.26% 0.45%(a)
Net investment income 3.63% 3.50%(a)
Net assets end of period (thousands) $ 441,988 $ 206,124
</TABLE>
<TABLE>
<CAPTION>
November 25, 1996
(Commencement of
Class Operations)
Year Ended through
February 28, 1998 February 28, 1997
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES
- ------------------------------------------------------------------------------------------------
Net asset value beginning of period $ 1.000 $ 1.000
========== ============
Income from investment operations
Net investment income 0.034 0.008
Less distributions from net investment income (0.034) (0.008)
---------- ------------
Net asset value end of period $ 1.000 $ 1.000
========== ============
Total return 3.41% 0.85%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.35% 0.30%(a)
Total expenses excluding indirectly paid expenses 0.35% -
Total expenses excluding waivers and/or reimbursements 0.51% 0.70%(a)
Net investment income 3.34% 3.19%(a)
Net assets end of period (thousands) $ 61,778 $ 14,295
</TABLE>
(a) Annualized.
See Combined Notes to Financial Statements.
7
<PAGE>
EVERGREEN
Select Treasury Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
November 20, 1996
(Commencement of
Class Operations)
Year Ended through
February 28, 1998 February 28, 1997
<S> <C> <C>
INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------------------
Net asset value beginning of period $ 1.000 $ 1.000
========= ===========
Income from investment operations
Net investment income 0.055 0.015
Less distributions from net investment income (0.055) (0.015)
--------- -----------
Net asset value end of period $ 1.000 $ 1.000
========= ===========
Total return 5.51% 1.49%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.18% 0.06%(a)
Total expenses excluding indirectly paid expenses 0.18% -
Total expenses excluding waivers and/or reimbursements 0.23% 0.45%(a)
Net investment income 5.42% 5.24%(a)
Net assets end of period (thousands) $1,256,701 $ 367,771
</TABLE>
<TABLE>
<CAPTION>
November 27, 1996
(Commencement of
Class Operations)
Year Ended through
February 28, 1998 February 28, 1997
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES
- ---------------------------------------------------------------------------------------------
Net asset value beginning of period $ 1.000 $ 1.000
========= ===========
Income from investment operations
Net investment income 0.052 0.013
Less distributions from net investment income (0.052) (0.013)
--------- -----------
Net asset value end of period $ 1.000 $ 1.000
========= ===========
Total return 5.25% 1.33%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.43% 0.31%(a)
Total expenses excluding indirectly paid expenses 0.43% -
Total expenses excluding waivers and/or reimbursements 0.48% 0.70%(a)
Net investment income 5.17% 4.98%(a)
Net assets end of period (thousands) $1,005,059 $ 509,369
</TABLE>
(a) Annualized
See Combined Notes to Financial Statements.
8
<PAGE>
EVERGREEN
Select 100% Treasury Money Market Fund
Financial Highlights
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
December 8, 1997
(Commencement of
Class Operations)
through
February 28, 1998
<S> <C>
INSTITUTIONAL SHARES
------------------------------------------------------------------------
Net asset value beginning of period $ 1.000
===========
Income from investment operations
Net investment income 0.012
Less distributions from net investment income (0.012)
-----------
Net asset value end of period $ 1.000
===========
Total return 1.18%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.20%(a)
Total expenses excluding indirectly paid expenses 0.20%(a)
Total expenses excluding waivers and/or reimbursements 0.60%(a)
Net investment income 5.18%(a)
Net assets end of period (thousands) $ 245,004
</TABLE>
<TABLE>
<CAPTION>
December 23, 1997
(Commencement of
Class Operations)
through
February 28, 1998
<S> <C>
INSTITUTIONAL SERVICE SHARES
- ------------------------------------------------------------------------
Net asset value beginning of period $ 1.000
===========
Income from investment operations
Net investment income 0.009
Less distributions from net investment income (0.009)
-----------
Net asset value end of period $ 1.000
===========
Total return 0.93%
Ratios/supplemental data
Ratios to average net assets
Total expenses 0.42%(a)
Total expenses excluding indirectly paid expenses 0.42%(a)
Total expenses excluding waivers and/or reimbursements 0.82%(a)
Net investment income 4.74%(a)
Net assets end of period (thousands) $ 5,497
</TABLE>
(a) Annualized
See Combined Notes to Financial Statements.
9
<PAGE>
EVERGREEN
Select Money Market Fund
Schedule of Investments
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT - 6.8%
$10,000,000 Bankers Trust,
5.98%, 8/12/98 .................... $ 9,999,957
50,000,000 Banque National de Paris (New York),
5.69%, 2/26/99 .................... 50,000,000
30,000,000 Bayerische Vereinsbank AG (New York),
5.71%, 2/26/99 .................... 30,000,000
10,000,000 First America Bank of Michigan,
5.95%, 8/13/98 .................... 9,999,083
Societe Generale (New York):
37,000,000 5.70%, 9/11/98 ................... 36,987,375
18,000,000 5.85%, 3/2/98 .................... 17,999,981
=============
Total Certificates of Deposit
(cost $154,986,396) ............... 154,986,396
=============
COMMERCIAL PAPER* - 57.7%
Automotive Equipment &
Manufacturing - 2.4%
30,000,000 Harley Davidson Dealer Funding,
5.85%, 3/3/98 ..................... 29,990,250
25,000,000 Hertz Corporation,
5.52%, 3/5/98 ..................... 24,984,667
=============
54,974,917
=============
Banks - 10.1%
75,000,000 Bank of America,
5.48%, 3/24/98 .................... 74,737,417
75,000,000 NationsBank Corp.,
5.57%, 3/9/98 ..................... 74,907,167
50,000,000 Norwest Corp.,
5.53%, 3/4/98 ..................... 49,976,958
Societe Generale:
15,000,000 5.70%, 6/18/98 ................... 14,996,993
15,000,000 6.11%, 5/26/98 ................... 14,999,145
=============
229,617,680
=============
Brokers - 5.3%
50,000,000 Merrill Lynch & Company Inc.,
5.49%, 3/4/98 ..................... 49,977,125
30,000,000 Morgan Stanley Group Inc.,
5.72%, 3/4/98 ..................... 29,985,700
40,000,000 Salomon Smith Barney Holdings Inc.,
5.51%, 3/4/98 ..................... 39,981,633
=============
119,944,458
=============
Finance - 34.4%
50,000,000 American Express Credit,
5.53%, 3/2/98 ..................... 49,992,319
21,278,000 Apex Funding Corp.,
(LOC: Bank of Tokyo-Mitsubishi Ltd.)
5.72%, 4/6/98 ..................... 21,156,290
44,496,000 Aristar, Inc.,
5.78%, 3/2/98 ..................... 44,488,856
50,000,000 Atlas Funding Corp.,
(LOC: Dai-Ichi Kangyo Bank Ltd.)
5.95%, 3/16/98 .................... 49,876,042
40,000,000 Banner Receivables Corp.,
5.62%, 3/19/98 .................... 39,887,600
30,000,000 Broadway Capital Corp.,
5.65%, 3/9/98 ..................... 29,962,333
40,000,000 Countrywide Funding Corp.,
5.51%, 3/11/98 .................... 39,938,778
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER* - continued
Finance - continued
Enterprise Funding Corp.,
(LOC: NationsBank):
$25,231,000 5.50%, 3/24/98 ................... $ 25,142,341
50,000,000 5.52%, 3/6/98 .................... 49,961,667
38,000,000 Gotham Funding Corp.,
(LOC: Bank of Tokyo-Mitsubishi Ltd.)
5.60%, 3/12/98 .................... 37,934,978
41,207,000 Lexington Parker Capital Corp.,
5.58%, 3/3/98 ..................... 41,194,226
50,000,000 Mont Blanc Capital Corp.,
5.51%, 3/23/98 .................... 49,831,639
Monte Rosa Capital Corp.:
25,000,000 5.48%, 3/5/98 ..................... 24,984,778
27,000,000 5.50%, 3/16/98 ................... 26,938,125
25,402,000 Old Line Funding Corp.,
5.50%, 3/2/98 ..................... 25,398,119
40,000,000 Orix America, Inc.,
5.83%, 10/26/98 ................... 40,000,000
45,000,000 Receivables Capital Corp.,
5.51%, 3/6/98 ..................... 44,965,562
50,000,000 Sanwa Business Credit Corp.,
(LOC: Sanwa Bank Ltd.)
5.73%, 3/17/98 .................... 49,872,666
15,000,000 Sigma Finance,
5.93%, 8/7/98 ..................... 15,000,000
17,000,000 Trident Capital Finance, Inc.,
5.50%, 3/11/98 .................... 16,974,028
Working Capital Management Corp.,
(LOC: Industrial Bank of Japan Ltd.):
30,000,000 5.77%, 3/10/98 ................... 29,956,725
25,000,000 5.80%, 3/4/98 .................... 24,987,917
=============
778,444,989
=============
Industrial - 3.8%
Fingerhut Owner Trust:
45,000,000 5.51%, 3/20/98 ................... 44,869,137
41,400,000 5.53%, 3/18/98 ................... 41,291,889
=============
86,161,026
=============
Telecommunication Services &
Equipment - 1.7%
38,000,000 GTE Corp.,
5.55%, 4/8/98 ..................... 37,777,383
=============
Total Commercial Paper
(cost $1,306,920,453) ............. 1,306,920,453
=============
CORPORATE BONDS & NOTES - 26.6%
Automotive Equipment &
Manufacturing - 1.1%
25,000,000 American Honda Finance Corp.,
5.62%, 10/22/98 ................... 25,002,504
=============
Banks - 11.2%
Abbey National PLC, Treasury
Services, MTN:
25,000,000 5.72%, 1/29/99 ................... 25,000,000
50,000,000 5.72%, 2/26/99 ................... 50,000,000
22,000,000 Bankers Trust New York Corp., FRN,
5.87%, 2/3/99 (a) ................. 22,000,000
30,000,000 Bankers Trust, FRN,
5.69%, 4/23/98 .................... 29,998,314
</TABLE>
10
<PAGE>
EVERGREEN
Select Money Market Fund
Schedule of Investments (continued)
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- -----------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS & NOTES - continued
Banks - continued
$5,600,000 First Interstate Bancorp, MTN,
9.38%, 11/15/98 ................... $ 5,729,052
10,000,000 Fleet Financial Group Note,
6.04%, 6/30/98 .................... 10,000,473
61,900,000 ING Barings Bank, FRN,
5.88%, 7/7/98 ..................... 61,900,262
19,000,000 Landesbank Hessen Thuringen,
5.93%, 6/30/98 .................... 18,992,352
20,000,000 PNC Bank, MTN,
5.63%, 5/12/98 .................... 19,997,317
7,790,000 Urban Mortgage Bank, FRN,
5.50%, 11/9/98 .................... 7,757,365
2,000,000 Wells Fargo & Company, FRN,
6.00%, 7/31/98 .................... 2,000,392
===========
253,375,527
===========
Brokers - 6.2%
10,000,000 Dean Witter Discover & Co.,
6.00%, 3/1/98 ..................... 10,000,000
Lehman Brothers Holdings Inc.:
7,000,000 6.38%, 6/1/98 .................... 7,003,680
17,200,000 6.84%, 9/25/98 ................... 17,274,694
5,720,000 7.63%, 8/1/98 .................... 5,754,710
11,400,000 7.85%, 5/11/98 ................... 11,436,071
4,000,000 8.06%, 3/10/98 ................... 4,002,060
4,500,000 8.10%, 3/17/98 ................... 4,504,435
5,500,000 8.88%, 11/1/98 ................... 5,600,808
5,000,000 Morgan Stanley Group Inc,
Series E,
5.86%, 2/26/99 .................... 5,010,092
Salomon Inc.:
3,830,000 6.22%, 11/19/98 .................. 3,835,180
Medium Term Senior Note
35,000,000 5.66%, 10/26/98 .................. 35,002,764
MTN
3,500,000 6.00%, 7/16/98 ................... 3,502,065
Senior Note
4,765,000 6.70%, 12/1/98 ................... 4,788,172
Series D
15,000,000 6.02%, 11/25/98 .................. 15,000,000
Shearson Lehman Holdings, MTN:
1,000,000 6.08%, 7/9/98 .................... 1,000,403
6,435,000 6.13%, 6/30/98 ................... 6,432,776
===========
140,147,910
===========
Consumer Products & Services - 0.1%
2,150,000 Pepsico Inc.,
7.63%, 12/18/98 ................... 2,177,587
===========
Finance - 6.8%
Associates Corp. of North America,
Senior Note:
25,000,000 6.38%, 8/15/98 ................... 25,046,498
9,140,000 7.30%, 3/15/98 ................... 9,144,686
25,000,000 Bravo Trust, FRN, Series1997-1-A,
5.65%, 10/15/98 (a) ............... 25,000,000
Chrysler Financial Corporation, MTN:
5,000,000 5.56%, 3/2/98 .................... 4,999,920
13,000,000 6.45%, 8/7/98 .................... 13,027,013
3,000,000 6.74%, 5/20/98 ................... 3,004,364
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS & NOTES - continued
Finance - continued
$6,000,000 Folk Financial, Series A,
(LOC: First of America Bank N.A.)
5.62%, VRDN ....................... $ 6,000,000
GMAC MTN:
1,500,000 6.05%, 10/9/98 ................... 1,500,038
5,340,000 6.25%, 9/8/98 .................... 5,346,599
18,000,000 7.75%, 3/2/98 .................... 18,000,910
25,000,000 Sigma Finance,
5.71%, 3/2/99 ..................... 25,000,000
Transamerica Finance Corp.:
MTN
3,800,000 5.74%, 12/9/98 ................... 3,792,361
Senior Note
3,410,000 6.80%, 3/15/99 ................... 3,448,830
4,660,000 Volkswagen International Finance,
9.75%, 10/27/98 ................... 4,762,262
6,500,000 Wise Investments LLC, Series A,
(LOC: First of America Bank NA)
5.62%, VRDN ....................... 6,500,000
===========
154,573,481
===========
Insurance - 0.3%
1,135,000 Allstate Corp.,
5.88%, 6/15/98 .................... 1,134,810
5,000,000 ITT Hartford Group,
8.20%, 10/15/98 ................... 5,065,933
1,000,000 Travelers Group Inc., Note,
5.75%, 4/15/98 (a) ................ 999,760
===========
7,200,503
===========
Local Debt - 0.5%
11,015,000 Manitoba Province Canada,
9.50%, 9/15/98 .................... 11,215,579
===========
Retailing & Wholesale - 0.2%
4,000,000 Sears Roebuck & Co. MTN,
7.40%, 3/16/98 .................... 4,002,454
===========
Telecommunication Services &
Equipment - 0.2%
4,000,000 GTE Corp.,
8.85%, 3/1/98 ..................... 4,000,000
===========
Total Corporate Bonds & Notes
(cost $601,695,545) ............... 601,695,545
===========
FUNDING AGREEMENT - 2.2% (cost $50,000,000)
50,000,000 General American, Cash Manager Plus,
5.75%, 3/2/98 ..................... 50,000,000
===========
GOVERNMENT AGENCY BONDS & NOTES - 4.0%
Federal Home Loan Banks, FRN,
50,000,000 5.62%, 2/26/99 ................... 49,983,140
15,000,000 Federal Home Loan Banks, MTN,
6.00%, 12/30/98 .................. 15,000,000
25,000,000 Federal National Mortgage Assn., FRN,
5.67%, 1/21/99 ................... 24,993,569
===========
Total Government Agency Bonds &
Notes (cost $89,976,709) .......... 89,976,709
===========
MUNICIPALS - 2.0%
$14,250,000 California Housing Finance Agency,
Series G2,
5.68%, VRDN ....................... $14,250,000
</TABLE>
11
<PAGE>
EVERGREEN
Select Money Market Fund
Schedule of Investments (continued)
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- --------------------------------------------------------------
<S> <C> <C>
MUNICIPALS - continued
$ 5,000,000 Hannahville Michigan, Building Program
Bonds,
(LOC: First of America Bank N.A.)
5.62%, VRDN ........................ $ 5,000,000
9,995,000 Hudson County New Jersey
Improvement Auth. Facility
Certificates, Series L,
5.96%, VRDN ........................ 9,995,000
16,995,000 San Diego California Public
Facilities Financing
Certificates, Series M,
5.68%, VRDN ........................ 16,995,000
===========
Total Municipals (cost $46,240,000) 46,240,000
===========
REPURCHASE AGREEMENT - 0.2%
(cost $5,136,332)
5,136,332 Donaldson, Lufkin & Jenrette
Securities Corp.,
5.63%, 3/2/98 (b) .................. 5,136,332
===========
</TABLE>
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------
<S> <C> <C> <C>
MUTUAL FUND SHARES - 1.4%
22,512,457 Fidelity Institutional Fund ......... $ 22,512,457
10,016,928 Fidelity U.S. Treasury Fund ......... 10,016,928
==============
Total Mutual Fund Shares
(cost $32,529,385)................... 32,529,385
==============
Total Investments -
(cost $2,287,484,820) ..... 100.9% 2,287,484,820
Other Assets and
Liabilities - Net ......... ( 0.9) (20,395,799)
===== ==============
Net Assets ................ 100.0% $2,267,089,021
====== ==============
</TABLE>
(a) Securities may be sold to "qualified institutional buyers" under Rule 144A
or securities offered pursuant to Section 4(2) of the Securities Act of
1933, as amended. These securities have been determined to be liquid under
guidelines established by the Board of Trustees.
(b) Collateralized by $928,000 U.S. Treasury Note, 6.13% due 12/31/01; value
including interest - $947,195 and $4,279,000 U.S. Treasury Note, 5.25%, due
7/31/98 value including interest - $4,292,820.
* Rates listed represent yield to maturity.
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated
with the issuer. Interest rates are determined and reset by the issuer daily,
weekly, or monthly depending upon the terms of the security. Interest rates
presented for these securities are those in effect at February 28, 1998.
Summary of Abbreviations:
FRN Floating Rate Note
LOC Letter of Credit
MTN Medium Term Note
VRDN Variable Rate Demand Note
See Combined Notes to Financial Statements.
12
<PAGE>
EVERGREEN
Select Municipal Money Market Fund
Schedule of Investments
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL OBLIGATIONS - 100.8%
Alabama - 0.3%
$ 1,500,000 Phenix County, IDB, Environmental
Improvement Revenue, Mead Coated
Board Project,
(LOC: ABN-Amro NA), 3.65%, VRDN .... $ 1,500,000
-----------
Arizona - 0.8%
4,200,000 Tempe IDA, MFHRB, Elliots Crossings,
(LOC: Citibank N.A.),
3.50%, VRDN ........................ 4,200,000
-----------
California - 1.7%
1,500,000 Los Angeles Department of Water &
Power,
5.60%, 2/1/99....................... 1,526,936
3,000,000 Los Angeles Unified School District,
TRANS,
4.50%, 7/1/98....................... 3,006,759
4,000,000 San Bernardino County, TRANS,
Series A,
4.50%, 6/30/98 ..................... 4,008,297
-----------
8,541,992
-----------
Colorado - 2.8%
4,495,000 Arapahoe County, E-470 Public
Highway Auth. Revenue,
3.51%, VRDN ........................ 4,495,000
5,000,000 Colorado State General Fund, TRANS,
4.50%, 6/26/98 ..................... 5,010,189
4,500,000 Denver City & County Airport Revenue,
Series 13,
3.65%, VRDN (a) .................... 4,500,000
-----------
14,005,189
-----------
Florida - 4.4%
1,000,000 Dade County GO, Series I,
(Ins. by AMBAC),
6.75%, 7/1/98 ...................... 1,010,367
1,880,000 Escambia County HFA, SFHRB,
3.61%, VRDN ........................ 1,880,000
9,745,000 Florida State Bond Finance Dept.,
General Services Revenue,
(LIQ: Bankers Trust),
3.60%, VRDN ........................ 9,745,000
2,600,000 Orlando TECP,
(LIQ: Morgan Guaranty),
3.60%, 7/17/98 ..................... 2,600,000
7,000,000 Tampa Occupational License, Series A,
3.45%, VRDN ........................ 7,000,000
-----------
22,235,367
-----------
Georgia - 6.0%
3,100,000 Eagle Tax Exempt Trust, Class A,
3.51%, VRDN (a) .................... 3,100,000
2,000,000 Fulton County Housing Authority,
MFHRB, Series 97 1,
(LOC: ING Barings Bank),
3.70%, VRDN ........................ 2,000,000
9,133,596 Georgia Municipal Associates, Pool
Bond, COP,
(SPA: Credit Suisse and Ins. by MBIA),
3.50%, VRDN ........................ 9,133,596
5,000,000 Georgia State GO, Series B,
6.75%, 3/1/98 ...................... 5,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Georgia - continued
$10,000,000 Gwinnett County School District,
Construction Sales Tax Notes,
4.00%, 12/31/98 .................... $10,040,635
1,000,000 Municipal Electric Authority, TECP,
3.55%, 4/9/98 ...................... 1,000,000
-----------
30,274,231
-----------
Hawaii - 1.4%
2,395,000 Hawaii Department of Budget &
Finance, Special Purpose Revenue,
(SPA: Commerzbank and Ins. by
MBIA),
3.61%, VRDN ........................ 2,395,000
Hawaii State GO:
2,600,000 (LIQ: Merrill Lynch and Ins. by FGIC),
3.51%, VRDN ........................ 2,600,000
2,000,000 Refunding, Series CD,
4.40%, 2/1/99 ...................... 2,016,153
-----------
7,011,153
-----------
Illinois - 11.6%
5,985,000 Chicago Board of Education
Certificates,
(SPA: Bank of New York and Ins. by
AMBAC),
3.50%, VRDN ........................ 5,985,000
7,250,000 Chicago Wastewater Transmission
Revenue,
(LIQ: Chase and Ins. by AMBAC),
3.60%, VRDN ........................ 7,250,000
5,160,000 City of Glenview, BAN,
5.50%, 12/1/98 ..................... 5,209,407
6,100,000 Illinois Health Facilities Authority,
MSTR, Series 1997 20 Class A,
(LIQ: Bear Stearns Capital Mkts. and
Ins. by AMBAC),
3.87%, VRDN ........................ 6,100,000
9,100,000 Illinois Health Facilities Authority
Revenue,
(SPA: Rabobank and Ins. by FGIC),
3.51%, VRDN ........................ 9,100,000
7,440,000 Illinois State Tender Option
Certificates,
(LIQ: Bankers Trust),
3.50%, VRDN ........................ 7,440,000
3,000,000 Illinois Student Assistance Commission,
Student Loan Revenue, Series A,
(SPA: Bank of America and Ins. by MBIA),
3.65%, VRDN ....................... 3,000,000
7,000,000 Lombard MFHRB, Clover Creek Apts.
Project,
(LOC: Continental Casualty Surety),
4.00%, VRDN ........................ 7,000,000
2,000,000 Metropolitan Pier & Exposition
Authority, Dedicated State Tax
Revenue, Series 8,
(SPA: Bank of New York and Ins. by
AMBAC),
3.65%, VRDN ........................ 2,000,000
5,150,000 O'Hare International Airport RB,
3.61%, VRDN ........................ 5,150,000
-----------
58,234,407
-----------
</TABLE>
13
<PAGE>
EVERGREEN
Select Municipal Money Market Fund
Schedule of Investments (continued)
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- -----------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Kansas - 0.8%
$3,950,000 Wichita GO, Series 194,
4.25%, 8/27/98 ..................... $ 3,961,499
-----------
Kentucky - 4.1%
2,500,000 Clark County PCRB, East Kentucky
Power Cooperative,
(LOC: Cooperative Finance
Corporation),
3.70%, VRDN ........................ 2,500,000
1,000,000 Kentucky Higher Education Student
Loan Corp., Insured Student Loan
Revenue, Series A,
4.45%, 6/1/98 ...................... 1,000,725
12,000,000 Kentucky State Turnpike Authority,
Resources Recovery, Series 17,
(LIQ: Commerzbank A.G and Ins. by
FSA),
3.65%, VRDN ........................ 12,000,000
5,000,000 Louisville & Jefferson County Regional
Airport Authority, BAN, Series AA1,
(LOC: National City Bank, KY),
3.55%, VRDN ........................ 5,000,000
-----------
20,500,725
-----------
Maryland - 2.3%
2,000,000 Anne Arundel County, Port Facilities
TECP, Baltimore Gas & Electric,
3.45%, 6/9/98 ...................... 2,000,000
9,485,000 Maryland State Tender Option
Certificates,
3.65%, VRDN ........................ 9,485,000
-----------
11,485,000
-----------
Massachusetts - 2.0%
9,960,000 Massachusetts State Health &
Educational Facilities Authority
MSTR, Series SGA 65,
(SPA: Societe Generale),
3.50%, VRDN ........................ 9,960,000
-----------
Michigan - 2.0%
2,000,000 Michigan State GO,
4.50%, 9/30/98 ..................... 2,012,190
8,000,000 Walled Lake Consolidated School
District, MSTR, Series SGA 68,
3.50%, VRDN ........................ 8,000,000
-----------
10,012,190
-----------
Mississippi - 0.9%
4,750,000 Mississippi Business Finance Corp.
Solid Waste Disposal Revenue,
Mississippi Power Co. Project,
3.75%, VRDN ........................ 4,750,000
-----------
Missouri - 6.3%
1,800,000 Independence Water Utility Revenue,
(LOC: Westbeutsche Landesbank),
3.35%, VRDN ........................ 1,800,000
4,000,000 Kansas City IDA,
3.85%, VRDN ........................ 4,000,000
4,000,000 Missouri State Housing Dev. Comm.
Mortgage Revenue,
(LIQ: Merrill Lynch),
3.61%, VRDN ........................ 4,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Missouri - continued
$8,645,000 St. Louis Airport, MSTR, Series SGA 71,
(SPA: Societe Generale and Ins. by
FGIC),
3.70%, VRDN ........................ $ 8,645,000
13,060,000 St. Louis County MFHRB,
(SPA: Merrill Lynch),
3.61%, VRDN ........................ 13,060,000
-----------
31,505,000
-----------
Nebraska - 1.6%
1,340,000 Lincoln Electric Systems RB, Series A,
4.50%, 9/1/98 ...................... 1,346,645
1,600,000 Lincoln Electric Systems
Revenue,TECP,
(LOC: Morgan Guaranty),
3.45%, 5/11/98 ..................... 1,600,000
5,245,000 Nebraska Higher Education Loan
Program,
(LOC: Bank Nationale de Paris),
3.61%, VRDN ........................ 5,245,000
-----------
8,191,645
-----------
Nevada - 0.8%
3,100,000 Clark County IDR, Nevada Cogeneration
I Project,
(LOC: Canadian Imperial Bank),
3.75%, VRDN ........................ 3,100,000
1,000,000 Nevada State GO, Series A,
9.70%, 5/1/98 ...................... 1,009,597
-----------
4,109,597
-----------
New Hampshire - 1.5%
7,580,000 New Hampshire HFA, SFHRB,
(LIQ: Rabobank Nederland),
3.61%, VRDN ........................ 7,580,000
-----------
New York - 8.8%
9,000,000 Erie County IDA, Solid Waste Disposal
Facility RB, Canfire Lackawanna Proj.,
(LOC: Bayerische Landesbank),
3.45%, VRDN ........................ 9,000,000
2,495,000 New York HFA RB,
(SPA: Merrill Lynch),
3.61%, VRDN ........................ 2,495,000
1,780,000 New York State Thruway Authority
Service Contract Revenue,
3.61%, VRDN (a) .................... 1,780,000
5,000,000 New York State Urban Development
Corp.,
(LIQ: Chase),
3.40%, VRDN ........................ 5,000,000
New York, NY, FRN:
7,000,000 (SPA: Merrill Lynch),
3.61%, VRDN ........................ 7,000,000
2,000,000 Series 26,
(LIQ: Bank of New York),
3.90%, VRDN ........................ 2,000,000
7,000,000 New York, NY, Municipal Securities Trust
Certificates, Series 1997 17,
(SPA: Bear Stearns and Ins. by
AMBAC-TCRS),
3.85%, VRDN (a) .................... 7,000,000
</TABLE>
14
<PAGE>
EVERGREEN
Select Municipal Money Market Fund
Schedule of Investments (continued)
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL OBLIGATIONS - continued
New York - continued
$8,000,000 Onondaga County IDA Solid Waste
Disposal Facility RB, Solvay
Paperboard Proj.,
(LIQ: Bear Stearns),
4.10%, VRDN ......................... $ 8,000,000
2,000,000 Suffolk County GO, Prefunded 3/1/98 @
101,
(COLL: US Govt. Securities),
7.38%, 3/1/98 ....................... 2,020,000
===========
44,295,000
===========
North Carolina - 1.7%
8,600,000 North Carolina Medical Care
Commission Hospital RB,
3.40%, VRDN ......................... 8,600,000
===========
Pennsylvania - 6.9%
15,000,000 Allegheny County Sanitation Authority,
Sewer Revenue, MSTR,
(LIQ: Chase and Ins. by MBIA),
3.60%, VRDN ......................... 15,000,000
2,000,000 Allegheny County, TECP, US Steel Corp.,
(LOC: Commerzbank AG),
3.40%, 6/12/98 ...................... 2,000,000
1,380,000 Pennsylvania HFA RB,
3.56%, VRDN ......................... 1,380,000
5,000,000 Philadelphia Airport, MSTR,
3.56%, VRDN ......................... 5,000,000
5,230,000 Philadelphia School District GO,
(LIQ: Merrill Lynch and Ins. by
AMBAC),
3.51%, VRDN ......................... 5,230,000
6,205,000 Pittsburgh, Floating Rate Receipt,
(SPA: Societe Generale and Ins. by
FGIC),
3.51%, VRDN ......................... 6,205,000
===========
34,815,000
===========
Tennessee - 4.6%
6,000,000 Johnson City MSTR,
(SPA: Societe Generale and Ins. by
FGIC),
3.50%, VRDN ......................... 6,000,000
5,625,000 Metro Government of Nashville &
Davidson County RB,
3.51%, VRDN (a) ..................... 5,625,000
8,550,000 Tennessee State GO,
(SPA: Bank of New York),
3.50%, VRDN ......................... 8,550,000
3,000,000 Tennessee State TECP, Series 1997,
(SPA: Union Bank of Switzerland),
3.45%, 7/15/98 ...................... 3,000,000
===========
23,175,000
===========
Texas - 18.1%
1,300,000 Brazos River Authority, PCRB,
(LOC: Union Bank of Switzerland),
3.95%, VRDN ......................... 1,300,000
5,000,000 City of Houston Water & Sewer
Revenue, TECP,
3.45%, 4/9/98 ....................... 5,000,000
8,500,000 Fort Worth, TECP,
(SPA: Canadian Imperial Bank of
Commerce),
3.85%, 3/12/98 ...................... 8,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Texas - continued
$2,000,000 Harris County Health Facility Services
Dev. Corp. Hospital Revenue,
Methodist Hosp., Series 1994,
(LOC: Morgan Guaranty, NY),
3.65%, VRDN ......................... $ 2,000,000
Houston Water & Sewer Systems MSTR:
11,445,000 (LIQ: Chase and Ins. by FGIC),
3.60%, VRDN ......................... 11,445,000
4,000,000 Series SCG 73,
(Ins. by FGIC),
3.50%, VRDN ......................... 4,000,000
12,000,000 San Antonio Electric & Gas Revenue,
(SPA: Societe Generale),
3.55%, VRDN ......................... 12,000,000
5,000,000 San Antonio Electric & Gas, TECP,
Series A,
3.45%, 8/10/98 (b) .................. 5,000,000
4,670,000 Tarrant County Health Facility Dev.
Corp. Health System Revenue,
(SPA: Commerzbank and Ins. by
MBIA),
3.29%, VRDN (a) ..................... 4,670,000
2,400,000 Texas Housing Agency, MFHRB,
Series 97 5,
3.70%, VRDN ......................... 2,400,000
12,205,000 Texas State Tender Option Certificates,
(LIQ: Bankers Trust),
3.475%, VRDN ........................ 12,205,000
22,500,000 Texas State TRANS, Series A,
4.75%, 8/31/98 ...................... 22,611,898
===========
91,131,898
===========
Wisconsin - 3.5%
3,845,000 Reedsburg School District, BAN,
3.90%, 12/1/98 ....................... 3,850,361
8,250,000 Wisconsin Housing and Economic Dev.
Authority, Home Ownership,
Series 18,
3.80%, VRDN ......................... 8,250,000
5,800,000 Wisconsin Public Power Inc. Systems,
MSTR, Series SGA 2,
(SPA: Societe Generale and Ins. by
AMBAC),
3.50%, VRDN ......................... 5,800,000
===========
17,900,361
===========
Other - 5.9%
Puttable Floating Option Tax Exempt
Receipts:
10,000,000 (LOC: Credit Suisse and Ins. by FSA),
4.05%, VRDN ......................... 10,000,000
1,990,000 (LIQ: Credit Suisse),
4.08%, VRDN ......................... 1,990,000
17,800,000 (SPA: Societe Generale),
3.49%, VRDN ......................... 17,800,000
===========
29,790,000
===========
Total Municipal Obligations
(cost $507,765,254).................. 507,765,254
===========
</TABLE>
15
<PAGE>
EVERGREEN
Select Municipal Money Market Fund
Schedule of Investments (continued)
February 28, 1998
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------
<S> <C> <C> <C>
MUTUAL FUND SHARES - 0.2%
(cost $900,000)
900,000 Federated Municipal Obligation Fund $ 900,000
------------
Total Investments
(cost $508,665,254)..... 101.0% 508,665,254
Other Assets and
Liabilities - Net ...... ( 1.0) (4,898,837)
----- ------------
Net Assets ............. 100.0% $503,766,417
====== ============
</TABLE>
(a) Securities that may be sold to "qualified institutional buyers" under Rule
144A or securities offered pursuant to Section 4(2) of the Securities Act
of 1933, as amended. These securities have been determined to be liquid
under guidelines established by the Board of Trustees.
(b) Liquidity provided by Morgan Guaranty Trust of New York, Texas Commerce
Bank, Toronto Dominion Bank and Union Bank of Switzerland. Variable Rate
Demand Notes are payable on demand on no more than seven calendar days
notice given by the Fund to the issuer or other parties not affiliated with
the issuer. Interest rates are determined and reset by the issuer daily,
weekly, or monthly depending upon the terms of the security. Interest rates
presented for these securities are those in effect at February 28, 1998.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstances, provide for repayment of
principal and interest on the obligation upon demand date, interest rate reset
date or final maturity. These enhancements include: letters of credit;
liquidity guarantees; standby bond purchase agreements; tender option purchase
agreements; and third party insurance (i.e. AMBAC, FGIC and MBIA). Variable
rate demand notes held in the portfolio may be considered derivative securities
within the standards imposed by the Securities and Exchange Commission under
Rule 2a-7 which were designed to minimize both credit and market risk.
Summary of Abbreviations:
AMBAC American Municipal Bond Assurance Corp.
BAN Bond Anticipation Note
COLL Collateral
COP Certificate of Participation
FGIC Financial Guaranty Insurance Co.
FRN Floating Rate Note
FSA Financial Security Assurance Inc.
GO General Obligations
HFA Housing Finance Authority
IDA Industrial Development Authority
IDB Industrial Development Bond
IDR Industrial Development Revenue
LIQ Liquidity Provider
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
MFHRB Multifamily Housing Revenue Bond
MSTR Municipal Securities Trust Receipt
PCRB Pollution Control Revenue Bond
RB Revenue Bonds
SFHRB Single Family Housing Revenue Bond
SPA Securities Purchase Agreement
TCRS Transferable Custody Receipts
TECP Tax Exempt Commercial Paper
TRANS Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
See Combined Notes to Financial Statements.
16
<PAGE>
EVERGREEN
Select Treasury Money Market Fund
Schedule of Investments
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------------------------------------------
<S> <C> <C>
UNITED STATES TREASURY BILLS - 15.4%
$ 50,000,000 5.37%(b) 3/12/98(+) ............. $ 49,917,958
50,000,000 5.34%(b) 4/16/98(+) ............. 49,658,833
250,000,000 5.37%(b) 4/16/98 ................ 248,359,167
==============
Total United States Treasury Bills
(cost $347,935,958).............. 347,935,958
==============
UNITED STATES TREASURY NOTES - 17.9%
60,000,000 6.13%, 3/31/98(+) ............... 60,015,863
25,000,000 5.88%, 4/30/98(+) ............... 24,999,330
50,000,000 6.25%, 6/30/98(+) ............... 50,080,397
30,000,000 4.75%, 8/31/98 .................. 29,853,158
30,000,000 6.13%, 8/31/98 .................. 30,073,201
65,000,000 6.00%, 9/30/98 .................. 65,083,865
20,000,000 5.88%, 10/31/98 ................. 20,020,279
50,000,000 5.75%, 12/31/98 ................. 50,007,603
25,000,000 5.13%, 12/31/98 ................. 24,881,011
50,000,000 6.25%, 3/31/99 .................. 50,363,281
==============
Total United States Treasury Notes
(cost $405,377,988).............. 405,377,988
==============
REPURCHASE AGREEMENTS*(a) - 89.4%
100,000,000 Barclays Bank PLC,
5.62%, dated 2/23/98,
due 3/2/98 (1) .................. 100,000,000
100,000,000 Dean Witter Reynolds, Inc.,
5.63%, dated 2/27/98,
due 3/2/98 (2) .................. 100,000,000
100,000,000 Deutsche Bank GC,
5.63%, dated 2/23/98,
due 3/2/98 (3) .................. 100,000,000
100,000,000 Donaldson, Lufkin & Jenrette
Securities Corp.,
5.63%, dated 2/27/98,
due 3/2/98 (4) .................. 100,000,000
200,000,000 Dresdner Bank AG,
5.63%, dated 2/23/98,
due 3/2/98 (5) .................. 200,000,000
50,500,000 Dresdner Bank AG,
5.45%, dated 2/27/98,
due 6/30/98 (7)** ............... 50,500,000
49,312,500 Dresdner Bank AG,
5.54%, dated 2/27/98,
due 4/16/98 (9)** ............... 49,312,500
61,950,000 Dresdner Bank AG,
5.57%, dated 2/27/98,
due 3/31/98 (10)** .............. 61,950,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS*(a) - continued
$ 49,500,000 Dresdner Bank AG,
5.58%, dated 2/27/98,
due 3/12/98 (11)** .............. $ 49,500,000
25,625,000 Dresdner Bank AG,
5.58%, dated 2/27/98,
due 4/30/98 (8)** ............... 25,625,000
70,000,000 Dresdner Bank AG,
5.63%, dated 2/27/98,
due 3/2/98 (6) .................. 70,000,000
100,000,000 First Boston Corp.,
5.63%, dated 2/23/98,
due 3/2/98 (12) ................. 100,000,000
100,000,000 Goldman, Sachs Group L.P.,
5.63%, dated 2/27/98,
due 3/2/98 (13) ................. 100,000,000
100,000,000 HSBC,
5.62%, dated 2/27/98,
due 3/2/98 (14) ................. 100,000,000
100,000,000 Merrill Lynch & Co., Inc.,
5.6%, dated 2/27/98,
due 3/2/98 (15) ................. 100,000,000
100,000,000 Morgan Guaranty Trust Co. New York,
5.63%, dated 2/27/98,
due 3/2/98 (16) ................. 100,000,000
15,255,467 Shearson Lehman Brothers,
5.63%, dated 2/27/98,
due 3/2/98 (17) ................. 15,255,467
500,000,000 Smith Barney,
5.65%, dated 2/23/98,
due 3/2/98 (18) ................. 500,000,000
100,000,000 Union Bank of Switzerland,
5.63%, dated 2/27/98,
due 3/2/98 (19) ................. 100,000,000
==============
Total Repurchase Agreements
(cost $2,022,142,967) ........... 2,022,142,967
==============
</TABLE>
<TABLE>
<CAPTION>
Shares
- ----------------------------------------------------------------------
<S> <C> <C> <C>
MUTUAL FUND SHARES - 1.0% (cost $21,521,376)
21,521,376 Fidelity U.S. Treasury Income
Portfolio ......................... 21,521,376
==========
Total Investments -
(cost $2,796,978,289) ... 123.7% 2,796,978,289
Other Assets and
Liabilities - Net ....... (23.7) (535,218,312)
===== =============
Net Assets .............. 100.0% $2,261,759,977
===== ==============
</TABLE>
(a) Repurchase agreements are puttable back to the issuer on no more than five
calendar days' notice given by the Fund.
(b) Effective yield (calculated at the date of purchase) is the yield at which
the security accretes on an annual basis until maturity date.
** Represents collateral received for securities on loan.
(+) Securities on loan (see Note 3).
* Collateralized by:
(1) $94,485,946 U.S. Treasury Bill 4/30/98, value - $94,485,946 and $5,514,054
U.S. Treasury Bond 7.25%, 5/15/16, value including accrued interest -
$5,516,636.
(2) $10,729,000 US Treasury Note 5.875%, 2/28/99, value including accrued
interest - $11,076,370, $43,182,594 GNMA 5.00% to 10.5%, 11/15/07 to
2/20/28, value including accrued interest - $21,909,171 and $328,968,924 US
Treasury STRIPS, 5/15/98 to 2/17/27, value including accrued interest -
$125,115,188.
(3) $102,972,000 U.S. Treasury Note, 5.50%, 02/15/08, value including accrued
interest - $102,000,171.
17
<PAGE>
EVERGREEN
Select Treasury Money Market Fund
Schedule of Investments (continued)
February 28, 1998
(4) $285,894,000 U.S. Treasury STRIPS, 05/15/05 to 02/15/23, value including
accrued interest - $96,185,368, $756,000 U.S. Treasury Note 7.75%,
12/31/99, value including accrued interest $793,562, and $4,125,000 U.S.
Treasury Bonds 6.25% to 10.38%, 11/15/09 to 8/15/23, value including
accrued interest - $5,022,141.
(5) $147,058,000 U.S. Treasury Bills 3/5/98 to 2/04/99, value including accrued
interest - $144,307,787 and $53,727,000 U.S. Treasury Bonds 6.00% to
13.87%, 8/15/03 to 11/15/27, value including accrued interest -
$59,694,970.
(6) $71,085,000 U.S. Treasury Bill 5/28/98, value including accrued interest -
$70,152,369 and $1,190,000 U.S. Treasury Note 7.75%, 12/31/99, value
including accrued interest - $1,248,664.
(7) $60,265,000 GNMA 7.00% to 7.50%, 1/15/25 to 3/15/26, value including
accrued interest - $51,376,737 and $155,000 U.S. Treasury Bond 13.88%,
5/15/11, value including accrued interest - $241,876.
(8) $31,284,000 GNMA 6.00% to 8.50%, 6/20/25 to 6/20/27, value including
accrued interest - $24,859,756, $730,000 U.S. Treasury Bonds 7.13% to
13.88%, 8/15/03 to 2/15/23, value including accrued interest - $996,847,
and $330,000 U.S. Treasury Note 6.38%, 5/15/00, value including accrued
interest - $341,202.
(9) $51,375,000 GNMA 6.00% to 8.50%, 6/20/25 to 6/20/27 value including accrued
interest - $50,220,925, $155,000 U.S. Treasury Bonds 11.13% to 13.88%,
8/15/03 to 5/15/11, value including accrued interest - $226,677.
(10) $63,470,000 GNMA 6.00% to 8.50%, 6/20/25 to 6/20/27, value including
accrued interest - $62,154,699, $895,000 U.S. Treasury Bonds 8.75% to
11.13%, 8/15/03 to 8/15/20, value including accrued interest -
$1,147,447.
(11) $54,265,000 GNMA 6.00% to 8.50%, 6/20/25 to 6/20/27, value including
accrued interest - $49,811,826 and $625,000 U.S. Treasury Bonds 6.63% to
13.88%, 8/15/03 to 2/15/27, value including accrued interest - $878,364.
(12) $102,277,000 U.S. Treasury Notes, 5.38% to 5.75% 1/31/00 to 11/15/00,
value including accrued interest - $102,711,731.
(13) $101,017,000 U.S. Treasury Note 5.63%, 12/31/99, value including accrued
interest - $102,000,444.
(14) $99,765,000 U.S. Treasury Note 6.87%, 7/31/99 value including accrued
interest - $102,003,508.
(15) $99,693,000 U.S. Treasury Notes 6.38% to 6.50%, 01/15/99 to 05/31/02,
value including accrued interest - $102,004,293.
(16) $58,800,000 U.S. Treasury Note 6.68%, 03/31/00, value including accrued
interest - $61,930,632 and $41,257,000 U.S. Treasury Bill 9/17/98, value
including accrued interest - $40,069,417.
(17) $15,092,000 U.S. Treasury Notes 6.25%, 06/30/02 to 02/15/03, value
including accrued interest - $15,559,818.
(18) $790,064,978 GNMA 6.50% to 9.00%, 7/15/98 to 2/20/28 value including
accrued interest - $510,000,000.
(19) $96,865,000 U.S. Treasury Note 6.88%, 3/31/00 value including accrued
interest - $102,000,886.
See Combined Notes to Financial Statements.
18
<PAGE>
EVERGREEN
Select 100% Treasury Money Market Fund
Schedule of Investments
February 28, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
- --------------------------------------------------------------
<S> <C> <C>
UNITED STATES TREASURY BILLS - 45.2%
$ 24,000 4.80%*, 3/5/98 .................. $ 23,987
227,000 5.39%*, 3/6/98 .................. 226,864
56,000 5.20%*, 3/26/98 ................. 55,798
113,702,000 5.23% - 5.27%*, 4/23/98 ......... 112,823,296
------------
Total United States Treasury Bills
(cost $113,129,945).............. 113,129,945
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------
<S> <C> <C> <C>
UNITED STATES TREASURY NOTES - 54.3%
$ 5,416,000 6.13%, 3/31/98 .................. $ 5,419,353
28,636,000 5.13%, 4/30/98 .................. 28,624,223
27,295,000 5.88%, 4/30/98 .................. 27,310,417
5,300,000 6.13%, 5/15/98 .................. 5,306,554
2,249,000 9.00%, 5/15/98 .................. 2,265,472
30,321,000 5.38%, 5/31/98 .................. 30,324,914
25,000,000 6.00%, 5/31/98 .................. 25,040,645
11,713,000 6.25%, 6/30/98 .................. 11,748,494
------------
Total United States Treasury Notes
(cost $136,040,072).............. 136,040,072
------------
Total Investments -
(cost $249,170,017)..... 99.5% 249,170,017
Other Assets and
Liabilities - Net ...... 0.5 1,330,585
----- ------------
Net Assets ............. 100.0% $250,500,602
===== ============
</TABLE>
* Effective yield (calculated at the date of purchase) is the yield at which
the bill accretes on an annual basis until maturity date.
See Combined Notes to Financial Statements.
19
<PAGE>
EVERGREEN
Select Money Market Funds
Statements of Assets and Liabilities
February 28, 1998
<TABLE>
<CAPTION>
Select Select Select Select
Money Market Municipal Treasury 100% Treasury
Fund Fund Fund Fund
----------------- --------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Assets
Investments in securities ........................ $2,282,348,488 $508,665,254 $ 774,835,322 $249,170,017
Investments in repurchase agreements ............. 5,136,332 0 2,022,142,967 0
- --------------------------------------------------- -------------- ------------ --------------- ------------
Total investments at amortized cost ............ 2,287,484,820 508,665,254 2,796,978,289 249,170,017
- --------------------------------------------------- -------------- ------------ --------------- ------------
Cash ............................................. 0 9,428 580 250
Interest receivable .............................. 11,647,125 4,368,208 12,791,882 2,223,178
Receivable for Fund shares sold .................. 192,230 0 470,000 0
Unamortized organization expenses ................ 10,200 10,200 10,200 0
Prepaid expenses and other assets ................ 43,316 39,887 69,107 105,842
- --------------------------------------------------- -------------- ------------ --------------- ------------
Total assets ................................... 2,299,377,691 513,092,977 2,810,320,058 251,499,287
- --------------------------------------------------- -------------- ------------ --------------- ------------
Liabilities
Payable for investments purchased ................ 25,000,000 8,098,258 300,035,978 0
Dividends payable ................................ 5,502,525 1,121,420 7,492,480 876,424
Payable for Fund shares redeemed ................. 942,230 0 0 0
Distribution fee payable ......................... 460,492 21,282 357,205 2,203
Due to related parties ........................... 92,899 19,018 334,621 5,356
Trustees' fees payable ........................... 17,826 11,446 7,593 557
Payable for securities on loan ................... 0 0 240,035,325 0
Accrued expenses and other liabilities ........... 272,698 55,136 296,879 114,145
- --------------------------------------------------- -------------- ------------ --------------- ------------
Total liabilities .............................. 32,288,670 9,326,560 548,560,081 998,685
- --------------------------------------------------- -------------- ------------ --------------- ------------
Net assets ........................................ $2,267,089,021 $503,766,417 $ 2,261,759,977 $250,500,602
=================================================== ============== ============ =============== ============
Net assets represented by
Paid-in capital .................................. $2,267,424,105 $503,799,602 $ 2,261,759,977 $250,501,629
Accumulated net realized loss on investments ..... (335,084) (33,185) 0 (1,027)
- --------------------------------------------------- -------------- ------------ --------------- ------------
Total net assets ............................... $2,267,089,021 $503,766,417 $ 2,261,759,977 $250,500,602
=================================================== ============== ============ =============== ============
Net assets consist of
Institutional Shares ............................. $1,051,740,861 $441,988,255 $ 1,256,701,423 $245,003,696
Institutional Service Shares ..................... 1,215,348,160 61,778,162 1,005,058,554 5,496,906
- --------------------------------------------------- -------------- ------------ --------------- ------------
$2,267,089,021 $503,766,417 $ 2,261,759,977 $250,500,602
=================================================== ============== ============ =============== ============
Shares outstanding
Institutional Shares ............................. 1,051,905,109 442,018,171 1,256,701,423 245,004,690
Institutional Service Shares ..................... 1,215,518,996 61,781,431 1,005,058,554 5,496,939
- --------------------------------------------------- -------------- ------------ --------------- ------------
Net asset value per share
Institutional Shares ............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
=================================================== ============== ============ =============== ============
Institutional Service Shares ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
=================================================== ============== ============ =============== ============
</TABLE>
See Combined Notes to Financial Statements.
20
<PAGE>
EVERGREEN
Select Money Market Funds
Statements of Operations
Year Ended February 28, 1998
<TABLE>
<CAPTION>
Select Select Select Select
Money Market Municipal Treasury 100% Treasury
Fund Fund Fund Fund *
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investment income
Interest ................................................ $96,611,881 $12,154,585 $81,492,855 $2,404,296
- ---------------------------------------------------------- ----------- ----------- ----------- ----------
Expenses
Advisory fee ............................................ 2,502,328 489,951 2,181,556 111,904
Distribution Plan expenses .............................. 2,025,350 62,315 1,467,114 2,203
Administrative services fees ............................ 559,160 110,388 484,490 13,018
Custodian fees .......................................... 354,162 97,802 339,891 11,450
Registration and filing fees ............................ 234,890 86,867 282,748 91,178
Professional fees ....................................... 51,697 28,244 42,613 24,063
Transfer agent fees ..................................... 35,146 6,469 12,359 114
Trustees' fees and expenses ............................. 28,712 14,365 17,777 1,111
Shareholders' reports expense ........................... 15,410 5,453 11,390 12,057
Organization expenses ................................... 2,742 2,742 2,742 0
Other ................................................... 9,832 4,209 24,934 56
Fee waivers and/or expense reimbursements ............... (522,139) (515,003) (708,945) (175,317)
- ---------------------------------------------------------- ----------- ----------- ----------- ----------
Total expenses ......................................... 5,297,290 393,802 4,158,669 91,837
Less: Indirectly paid expenses .......................... (22,053) (11,254) (27,822) (108)
- ---------------------------------------------------------- ----------- ----------- ----------- ----------
Net expenses ........................................... 5,275,237 382,548 4,130,847 91,729
- ---------------------------------------------------------- ----------- ----------- ----------- ----------
Net investment income .................................... 91,336,644 11,772,037 77,362,008 2,312,567
Net realized loss on investments ......................... (333,234) (21,765) 0 (1,027)
- ---------------------------------------------------------- ----------- ----------- ----------- ----------
Net increase in net assets resulting from operations ..... $91,003,410 $11,750,272 $77,362,008 $2,311,540
========================================================== =========== =========== =========== ==========
</TABLE>
* For the period from December 8, 1997 (commencement of operations) to February
28, 1998.
See Combined Notes to Financial Statements.
21
<PAGE>
EVERGREEN
Select Money Market Funds
Statements of Changes in Net Assets
Year Ended February 28, 1998
<TABLE>
<CAPTION>
Select
Money Market
Fund
--------------------
<S> <C>
Operations
Net investment income ..................................... $ 91,336,644
Net realized loss on investments .......................... (333,234)
- ------------------------------------------------------------ ------------------
Net increase in net assets resulting from operations ..... 91,003,410
- ------------------------------------------------------------ ------------------
Distributions to shareholders from net investment income
Institutional Shares ...................................... (48,087,627)
Institutional Service Shares .............................. (43,249,017)
- ------------------------------------------------------------ ------------------
Total distributions to shareholders ...................... (91,336,644)
- ------------------------------------------------------------ ------------------
Capital share transactions
Proceeds from shares sold ................................. 11,102,724,706
Proceeds from reinvestment of distributions ............... 26,164,108
Payment for shares redeemed ............................... (10,304,091,494)
- ------------------------------------------------------------ ------------------
Net increase from capital share transactions ............. 824,797,320
- ------------------------------------------------------------ ------------------
Total increase in net assets ............................ 824,464,086
Net assets
Beginning of year ......................................... 1,442,624,935
- ------------------------------------------------------------ ------------------
End of year ............................................... $ 2,267,089,021
============================================================ ==================
<CAPTION>
Select Select Select
Municipal Treasury 100% Treasury
Fund Fund Fund *
------------------- ------------------- ----------------
<S> <C> <C> <C>
Operations
Net investment income ..................................... $ 11,772,037 $ 77,362,008 $ 2,312,567
Net realized loss on investments .......................... (21,765) 0 (1,027)
- ------------------------------------------------------------- ----------------- ----------------- -------------
Net increase in net assets resulting from operations ..... 11,750,272 77,362,008 2,311,540
- ------------------------------------------------------------- ----------------- ----------------- -------------
Distributions to shareholders from net investment income
Institutional Shares ...................................... (10,940,574) (30,337,499) (2,267,246)
Institutional Service Shares .............................. (831,463) (47,024,509) (45,321)
- ------------------------------------------------------------- ----------------- ----------------- -------------
Total distributions to shareholders ...................... (11,772,037) (77,362,008) (2,312,567)
- ------------------------------------------------------------- ----------------- ----------------- -------------
Capital share transactions
Proceeds from shares sold ................................. 1,292,087,527 6,960,790,322 305,672,656
Proceeds from reinvestment of distributions ............... 806,793 7,040,441 45,452
Payment for shares redeemed ............................... (1,009,525,052) (5,583,211,658) (55,316,479)
- ------------------------------------------------------------- ----------------- ----------------- -------------
Net increase from capital share transactions ............. 283,369,268 1,384,619,105 250,401,629
- ------------------------------------------------------------- ----------------- ----------------- -------------
Total increase in net assets ............................ 283,347,503 1,384,619,105 250,400,602
Net assets
Beginning of year ......................................... 220,418,914 877,140,872 100,000
- ------------------------------------------------------------- ----------------- ----------------- -------------
End of year ............................................... $ 503,766,417 $ 2,261,759,977 $ 250,500,602
============================================================= ================= ================= =============
</TABLE>
* For the period from December 8, 1997 (commencement of operations) to
February 28, 1998.
Period Ended February 28, 1997
<TABLE>
<CAPTION>
Select
Money Market
Fund *
-------------------
<S> <C>
Operations
Net investment income ..................................................... $ 12,167,807
Net realized loss on investments .......................................... (1,850)
- ---------------------------------------------------------------------------- -----------------
Net increase in net assets resulting from operations ..................... 12,165,957
- ---------------------------------------------------------------------------- -----------------
Distributions to shareholders from net investment income
Institutional Shares ...................................................... (5,904,325)
Institutional Service Shares .............................................. (6,263,482)
- ---------------------------------------------------------------------------- -----------------
Total distributions to shareholders ...................................... (12,167,807)
- ---------------------------------------------------------------------------- -----------------
Capital share transactions
Proceeds from shares sold ................................................. 2,578,642,264
Proceeds from reinvestment of distributions ............................... 3,216,759
Payment for shares redeemed ............................................... (1,139,232,248)
- ---------------------------------------------------------------------------- -----------------
Net increase in net assets resulting from capital share transactions ..... 1,442,626,775
- ---------------------------------------------------------------------------- -----------------
Total increase in net assets ............................................ 1,442,624,925
Net assets
Beginning of period ....................................................... 10
- ---------------------------------------------------------------------------- -----------------
End of period ............................................................. $ 1,442,624,935
============================================================================ =================
<CAPTION>
Select Select
Municipal Treasury
Fund ** Fund **
----------------- -----------------
<S> <C> <C>
Operations
Net investment income ..................................................... $ 1,737,234 $ 6,801,751
Net realized loss on investments .......................................... (11,420) 0
- ----------------------------------------------------------------------------- --------------- ---------------
Net increase in net assets resulting from operations ..................... 1,725,814 6,801,751
- ----------------------------------------------------------------------------- --------------- ---------------
Distributions to shareholders from net investment income
Institutional Shares ...................................................... (1,587,125) (3,493,244)
Institutional Service Shares .............................................. (150,109) (3,308,507)
- ----------------------------------------------------------------------------- --------------- ---------------
Total distributions to shareholders ...................................... (1,737,234) (6,801,751)
- ----------------------------------------------------------------------------- --------------- ---------------
Capital share transactions
Proceeds from shares sold ................................................. 462,534,674 1,671,272,107
Proceeds from reinvestment of distributions ............................... 2,873 809,212
Payment for shares redeemed ............................................... (242,107,223) (794,940,457)
- ----------------------------------------------------------------------------- --------------- ---------------
Net increase in net assets resulting from capital share transactions ..... 220,430,324 877,140,862
- ----------------------------------------------------------------------------- --------------- ---------------
Total increase in net assets ............................................ 220,418,904 877,140,862
Net assets
Beginning of period ....................................................... 10 10
- ----------------------------------------------------------------------------- --------------- ---------------
End of period ............................................................. $ 220,418,914 $ 877,140,872
============================================================================= =============== ===============
</TABLE>
* The Fund commenced operations on November 19, 1996
** The Fund commenced operations on November 20, 1996
See Combined Notes to Financial Statements.
22
<PAGE>
Combined Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
The Evergreen Select Money Market Funds consist of Evergreen Select Money
Market Fund ("Select Money Market Fund") (formerly, Evergreen Institutional
Money Market Fund), Evergreen Select Municipal Money Market Fund ("Select
Municipal Fund") (formerly, Evergreen Institutional Tax Exempt Money Market
Fund), Evergreen Select Treasury Money Market Fund ("Select Treasury Fund")
(formerly, Evergreen Institutional Treasury Money Market Fund) and Evergreen
Select 100% Treasury Money Market Fund ("Select 100% Treasury Fund"),
collectively, the "Funds". Each Fund is a diversified series of Evergreen
Select Money Market Trust (the "Trust"), a Delaware business trust organized on
September 17, 1997 as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act").
Each Fund offers Institutional Shares and Institutional Service Shares which
are sold without a front-end sales charge. Institutional Service Shares pay an
ongoing distribution fee.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles, which
require management to make estimates and assumptions that affect amounts
reported herein. Actual results could differ from these estimates.
A. Valuation of Securities
Portfolio securities are valued at amortized cost which approximates market
value. The amortized cost method involves valuing a security at cost on the
date of purchase and thereafter assuming a straight-line amortization of any
discount or premium.
B. Repurchase Agreements
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held by the custodian on the Fund's behalf. Each
Fund monitors the adequacy of the collateral daily and will require the seller
to provide additional collateral in the event the market value of the
securities pledged falls below the carrying value of the repurchase agreement,
including accrued interest. Each Fund will only enter into repurchase
agreements with banks and other financial institutions which are deemed by the
investment adviser to be creditworthy pursuant to guidelines established by the
Board of Trustees.
C. Securities Lending
In order to generate income and to offset expenses, the Funds may lend
portfolio securities to brokers, dealers and other financial organizations. The
Funds' investment adviser will monitor the creditworthiness of such borrowers.
Loans of securities may not exceed 30% of a Fund's total assets and will be
collateralized by cash, letters of credit, U.S. Government securities or other
highly liquid 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. While such securities are on loan, the borrower will pay the
Fund any income accruing thereon, and the Fund may invest the collateral in
portfolio securities, thereby increasing its return. A Fund will have the right
to call any such loan and obtain 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 reasonable fees in connection with such loans.
D. 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.
E. Federal Taxes
The Funds have qualified and intend to continue to qualify as regulated
investment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable
income, net tax-exempt 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.
F. Distributions
Distributions from net investment income for the Funds are declared daily and
paid monthly. Distributions from net realized capital gains, if any, are paid
at least annually. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles.
23
<PAGE>
Combined Notes to Financial Statements (continued)
G. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the
relative net assets of each class. Currently, class specific expenses are
limited to expenses incurred under a distribution plan for the Institutional
Service Shares.
H. Organization Expenses
Organization expenses for each Fund, except Select 100% Treasury Fund, are
amortized to operations over a five-year period on a straight-line basis from
commencement of operations. In the event any of the initial shares of the Funds
are redeemed by any holder during the five-year amortization period, redemption
proceeds will be reduced by any unamortized organization expenses in the same
proportion as the number of initial shares being redeemed bears to the number
of initial shares outstanding at the time of the redemption.
2. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with a par
value of $0.001 authorized. Shares of beneficial interest of the Funds are
currently divided into Institutional Shares and Institutional Service Shares.
Transactions in shares of beneficial interest (valued at $1.00 per share) for
each Fund were as follows:
- --------------------------------------------------------------------------------
SELECT MONEY MARKET FUND
<TABLE>
<CAPTION>
November 19, 1996
Year (Commencement of
Ended Class Operations) to
February 28, 1998 February 28, 1997
------------------- ---------------------
<S> <C> <C>
Institutional Shares
Shares sold .......................................... 4,210,325,753 850,921,063
Shares issued in reinvestment of distributions ....... 4,406,765 24,669
Shares redeemed ...................................... (3,738,159,269) (275,613,872)
- ------------------------------------------------------ ----------------- -----------------
Net increase ......................................... 476,573,249 575,331,860
====================================================== ================= =================
</TABLE>
<TABLE>
<CAPTION>
November 26, 1996
Year (Commencement of
Ended Class Operations) to
February 28, 1998 February 28, 1997
------------------- ---------------------
<S> <C> <C>
Institutional Service Shares
Shares sold .......................................... 6,892,398,953 1,727,721,201
Shares issued in reinvestment of distributions ....... 21,757,343 3,192,090
Shares redeemed ...................................... (6,565,932,225) (863,618,376)
- ------------------------------------------------------ ----------------- -----------------
Net increase ......................................... 348,224,071 867,294,915
====================================================== ================= =================
</TABLE>
- --------------------------------------------------------------------------------
SELECT MUNICIPAL FUND
<TABLE>
<CAPTION>
November 20, 1996
Year (Commencement of
Ended Class Operations) to
February 28, 1998 February 28, 1997
------------------- ---------------------
<S> <C> <C>
Institutional Shares
Shares sold .......................................... 1,122,156,301 356,334,234
Shares issued in reinvestment of distributions ....... 614,402 0
Shares redeemed ...................................... (886,886,123) (150,200,643)
- ------------------------------------------------------ ---------------- -----------------
Net increase ......................................... 235,884,580 206,133,591
====================================================== ================ =================
</TABLE>
24
<PAGE>
Combined Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
SELECT MUNICIPAL FUND - continued
<TABLE>
<CAPTION>
November 25, 1996
Year (Commencement of
Ended Class Operations) to
February 28, 1998 February 28, 1997
------------------- ---------------------
<S> <C> <C>
Institutional Service Shares
Shares sold .......................................... 169,931,226 106,200,440
Shares issued in reinvestment of distributions ....... 192,391 2,873
Shares redeemed ...................................... (122,638,929) (91,906,580)
- ------------------------------------------------------ ---------------- ----------------
Net increase ......................................... 47,484,688 14,296,733
====================================================== ================ ================
</TABLE>
- --------------------------------------------------------------------------------
SELECT TREASURY FUND
<TABLE>
<CAPTION>
November 20, 1996
Year (Commencement of
Ended Class Operations) to
February 28, 1998 February 28, 1997
------------------- ---------------------
<S> <C> <C>
Institutional Shares
Shares sold ......................................... 3,647,541,042 684,739,426
Shares issued in reinvestment of distributions ...... 270,054 29,404
Shares redeemed ..................................... (2,758,881,077) (316,997,426)
- ----------------------------------------------------- ----------------- -----------------
Net increase ........................................ 888,930,019 367,771,404
===================================================== ================= =================
</TABLE>
<TABLE>
<CAPTION>
November 27, 1996
Year (Commencement of
Ended Class Operations) to
February 28, 1998 February 28, 1997
------------------- ---------------------
<S> <C> <C>
Institutional Service Shares
Shares sold .......................................... 3,313,249,280 986,532,681
Shares issued in reinvestment of distributions ....... 6,770,387 779,808
Shares redeemed ...................................... (2,824,330,581) (477,943,031)
- ------------------------------------------------------ ----------------- -----------------
Net increase ......................................... 495,689,086 509,369,458
====================================================== ================= =================
</TABLE>
- --------------------------------------------------------------------------------
SELECT 100% TREASURY FUND
<TABLE>
<CAPTION>
December 8, 1997
(Commencement of
Class Operations) to
February 28, 1998
---------------------
<S> <C>
Institutional Shares
Shares sold .......................................... 281,511,760
Shares issued in reinvestment of distributions ....... 40,594
Shares redeemed ...................................... (36,647,664)
- ------------------------------------------------------ ----------------
Net increase ......................................... 244,904,690
====================================================== ================
</TABLE>
<TABLE>
<CAPTION>
December 23, 1997
(Commencement of
Class Operations) to
February 28, 1998
---------------------
<S> <C>
Institutional Service Shares
Shares sold .......................................... 24,160,896
Shares issued in reinvestment of distributions ....... 4,858
Shares redeemed ...................................... (18,668,815)
- ------------------------------------------------------ ----------------
Net increase ......................................... 5,496,939
====================================================== ================
</TABLE>
25
<PAGE>
Combined Notes to Financial Statements (continued)
3. SECURITIES TRANSACTIONS
The Select Treasury Fund loaned securities during the year ended February 28,
1998 to certain brokers who paid the Fund a negotiated lenders' fee. These fees
are included in interest income. The Fund received repurchase agreements fully
collateralized by U.S. Government securities as collateral against the loaned
securities in an amount at least equal to 100% of the market value of the loaned
securities at the inception of each loan. The Fund monitors the adequacy of the
collateral daily and will require the broker to provide additional collateral in
the event the value of the collateral falls below 100% of the market value of
the securities on loan. At February 28, 1998, the value of securities on loan
and the value of collateral including accrued interest, amounted to $234,672,381
and $240,035,325, respectively. During the year ended February 28, 1998, the
Fund earned $310,021 in income from securities lending transactions.
On February 28, 1998, the cost of investments for federal income tax purposes
of each Fund was the same as for financial reporting purposes.
As of February 28, 1998, the Funds had capital loss carryovers for federal
income tax purposes as follows:
<TABLE>
<CAPTION>
Expiration
---------------------
2005 2006
--------- -----------
<S> <C> <C>
Select Money Market Fund ...... $2,000 $131,000
Select Municipal Fund ......... 1,000 0
Select 100% Treasury Fund ..... 0 1,000
</TABLE>
4. DISTRIBUTION PLAN
Evergreen Distributor, Inc. ("EDI") (formerly, Evergreen Keystone Distributor,
Inc.), a wholly-owned subsidiary of The BISYS Group Inc. ("BISYS"), serves as
the principal underwriter to the Funds.
Each Fund has adopted a Distribution Plan (the "Plan") for its Institutional
Service Shares as allowed by Rule 12b-1 of the 1940 Act. The Plan permits each
Fund to reimburse 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 shareholders through expenses called "Distribution Plan
expenses". Under the terms of the Plan, the Funds incur distribution-related
and shareholder servicing expenses which may not exceed 0.25% of the average
daily net assets of each Fund's outstanding Institutional Service Shares.
Distribution Plan expenses are calculated daily and paid monthly.
The Plan may be terminated at any time by vote of the Independent Trustees or
by a vote of a majority of the outstanding voting shares of the Institutional
Service Shares.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
The Capital Management Group ("CMG") of First Union National Bank of North
Carolina ("FUNB"), a subsidiary of First Union Corporation ("First Union"),
serves as the investment adviser to the Funds. The advisory fee is computed
daily and paid monthly based on a percentage of each Fund's average daily net
assets.
<TABLE>
<S> <C>
Annual
Advisory Fee
----------------
Select Money Market Fund .......... 0.15%
Select Municipal Fund ............. 0.15%
Select Treasury Fund .............. 0.15%
Select 100% Treasury Fund ......... 0.25%
</TABLE>
Currently, CMG has voluntarily agreed to reduce the investment advisory fee for
the 100% Treasury Fund by 0.10%.
For the year ended February 28, 1998, CMG voluntarily waived and reimbursed
expenses as follows:
<TABLE>
<CAPTION>
Advisory Expenses
Fee waiver Reimbursed
------------ -----------
<S> <C> <C>
Select Money Market Fund ...... $522,139 0
Select Municipal Fund ......... 489,951 $25,052
Select Treasury Fund .......... 708,945 0
Select 100% Treasury Fund ..... 111,904 63,413
</TABLE>
CMG can modify or discontinue these voluntary waivers and reimbursements at any
time.
26
<PAGE>
Combined Notes to Financial Statements (continued)
Evergreen Investment Services, Inc. ("EIS") (formerly, Evergreen Keystone
Investment Services, Inc.), a subsidiary of First Union, serves as the
administrator for each Fund. BISYS serves as the sub-administrator. The
administrator and sub-administrator for each Fund is entitled to an annual fee
based on the average daily net assets of the funds administered by EIS for
which First Union or its investment advisory subsidiaries are also the
investment advisers. The administration fee is calculated by applying
percentage rates, which start at 0.05% and decline to 0.01% per annum as net
assets increase, to the average daily net asset value of each Fund. The sub-
administration fee is calculated by applying percentage rates, which start at
0.01% and decline to 0.004% as net assets increase, to the average daily net
assets of each Fund.
During the year ended, February 28, 1998, the Funds paid or accrued the
following amounts to EIS for certain administrative services:
<TABLE>
<S> <C>
Select Money Market Fund .......... $405,460
Select Municipal Fund ............. 78,674
Select Treasury Fund .............. 347,689
Select 100% Treasury Fund ......... 8,363
</TABLE>
Effective May 5, 1997, Evergreen Service Company ("ESC") (formerly, Evergreen
Keystone Service Company), a wholly-owned subsidiary of FUNB, serves as the
transfer and dividend disbursing agent for the Funds. Prior to that date, State
Street Bank and Trust Company ("State Street") provided the transfer and
dividend disbursing services.
As of February 28, 1998, the Funds accrued or paid to ESC the following
amounts:
<TABLE>
<S> <C>
Select Money Market Fund ......... $21,636
Select Municipal Fund ............ 1,252
Select Treasury Fund ............. 3,075
</TABLE>
Officers of the Funds and affiliated Trustees receive no compensation directly
from the Funds. As sub-administrator, BISYS provides the officers of the Funds.
6. EXPENSE OFFSET ARRANGEMENT
The Funds have entered into an expense offset arrangement with their custodian.
The assets deposited with the custodian under this expense offset arrangement
could have been invested in income-producing assets.
7. DEFERRED TRUSTEES' FEES
Each Independent Trustee of the Funds may defer any or all compensation related
to performance of duties as a Trustee. Each Trustee's deferred balances are
allocated to deferral accounts which are included in the accrued expenses for
each 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 each Fund's Trustees' fees
and expenses. Trustees will be paid either in one lump sum or in quarterly
installments for up to ten years at their election, not earlier than either the
year in which the Trustee ceases to be a member of the Board of Trustees or
January 1, 2000.
8. FINANCING AGREEMENT
On October 31, 1996, a financing agreement among certain of the Evergreen
Funds, State Street and a group of banks (collectively, the "Banks") became
effective. Under this agreement, the Banks provided an unsecured credit
facility to certain Evergreen Funds in the aggregate amount of $225 million
($112.5 million committed and $112.5 million uncommitted) allocated evenly
among the Banks. Borrowings under this facility bore interest at 0.75% per
annum above the Federal Funds rate. A commitment fee of 0.10% per annum was
incurred on the unused portion of the committed facility, which was allocated
to all participating funds. State Street served as agent for the Banks, and as
agent was entitled to a fee of $15,000 which was allocated to all of the
participating Funds. This agreement was terminated on October 31, 1997.
On October 31, 1997, a temporary financing agreement between the participating
Funds and First Union became effective. Under this agreement, First Union
provided a fully committed unsecured credit facility in the aggregate amount of
$300 million. Borrowings under this facility bore interest at 1.00% per annum
above the Federal Funds rate. State Street served as administrative agent under
this agreement, but received no compensation for its services. This agreement
was terminated on December 22, 1997.
27
<PAGE>
Combined Notes to Financial Statements (continued)
On December 22, 1997, a financing agreement among all of the Evergreen Funds,
State Street and a group of banks (the "Banks") became effective. Under this
agreement, the Banks provide an unsecured credit facility in the aggregate
amount of $400 million ($275 million committed and $125 million uncommitted).
The credit facility is allocated, under the terms of the financing agreement,
among the Banks. The credit facility is to be accessed by the Funds for
temporary or emergency purposes only and is subject to each Fund's borrowing
restrictions. Borrowings under this facility bear interest at 0.50% per annum
above the Federal Funds rate. A commitment fee of 0.065% per annum will be
incurred on the unused portion of the committed facility, which will be
allocated to all funds. For its assistance in arranging this financing
agreement, the Capital Market Group of First Union was paid a one time
arrangement fee of $27,500. State Street serves as administrative agent for the
Banks, and as administrative agent is entitled to a fee of $20,000 per annum
which is allocated to all of the Funds
During the year ended February 28, 1998, the Funds had no borrowings under
these agreements.
28
<PAGE>
Report of Independent Accountants
To the Trustees and Shareholders of
Evergreen Select Money Market Fund
Evergreen Select Municipal Money Market Fund
Evergreen Select Treasury Money Market Fund
Evergreen Select 100% Treasury Money Market Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Evergreen Select
Money Market Fund, (formerly Evergreen Institutional Money Market Fund),
Evergreen Select Municipal Money Market Fund (formerly Evergreen Institutional
Tax Exempt Money Market Fund), Evergreen Select Treasury Money Market Fund
(formerly Evergreen Institutional Treasury Money Market Fund), and Evergreen
Select 100% Treasury Money Market Fund, ("collectively, the Funds"), each a
series of the Evergreen Select Money Market Trust, at February 28, 1998, and
the results of each of their operations, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at February 28, 1998 by correspondence with the custodian, and the
application of alternative auditing procedures where securities purchased had
not yet been received, provide a reasonable basis for the opinion expressed
above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
April 9, 1998
29
<PAGE>
ADDITIONAL INFORMATION (Unaudited)
On December 15, 1997, a special meeting of shareholders for each of the Funds
was held to consider a number of proposals. On October 16, 1997, the record
date for the meeting, the Funds had the following shares outstanding and number
of shares represented at the meeting:
<TABLE>
<CAPTION>
Select
Money
Market
Fund
-----------------
<S> <C>
Record Date Shares Outstanding ...................................................... 1,497,488,108
Shares represented at meeting ....................................................... 960,584,865
Percentage of record date shares represented at meeting ............................. 64.15%
The votes recorded at the meeting, by proposal, were as follows:
Proposal 1 - The proposed reorganization of each Fund as a series of the
Evergreen Select Money Market Trust, a Delaware business trust:
Shares voted "For" ............................................................ 944,468,517
Shares voted "Against" ........................................................ 2,049,172
Shares voted "Abstain" ........................................................ 14,067,176
Proposal 2 - Reclassification as non-fundamental of the investment
objective of those Funds whose investment objective is currently
classified as fundamental:
Shares voted "For" ............................................................ 934,111,405
Shares voted "Against" ........................................................ 12,377,112
Shares voted "Abstain" ........................................................ 14,096,348
Proposal 3 - Changes to Fundamental investment restrictions:
Proposal to amend the fundamental restriction concerning diversification of
investments:
Shares voted "For" ............................................................ 942,988,882
Shares voted "Against" ........................................................ 3,528,689
Shares voted "Abstain" ........................................................ 14,067,294
Proposal to amend the Fundamental restriction concerning concentration of a
Fund's assets in a particular industry:
Shares voted "For" ............................................................ 942,988,882
Shares voted "Against" ........................................................ 3,528,689
Shares voted "Abstain" ........................................................ 14,067,294
Proposal to amend the Fundamental restriction concerning the issuance of senior
securities:
Shares voted "For" ............................................................ 942,988,882
Shares voted "Against" ........................................................ 3,528,689
Shares voted "Abstain" ........................................................ 14,067,294
Proposal to amend the Fundamental restriction concerning borrowing:
Shares voted "For" ............................................................ 942,988,882
Shares voted "Against" ........................................................ 3,528,689
Shares voted "Abstain" ........................................................ 14,067,294
Proposal to amend the Fundamental restriction concerning underwriting:
Shares voted "For" ............................................................ 942,988,882
Shares voted "Against" ........................................................ 3,528,689
Shares voted "Abstain" ........................................................ 14,067,294
Proposal to amend the Fundamental restriction concerning investments in Real
Estate:
Shares voted "For" ............................................................ N/A
Shares voted "Against" ........................................................ N/A
Shares voted "Abstain" ........................................................ N/A
Proposal to amend the Fundamental restriction concerning commodities:
Shares voted "For" ............................................................ N/A
Shares voted "Against" ........................................................ N/A
Shares voted "Abstain" ........................................................ N/A
<CAPTION>
Select Select
Municipal Treasury
Fund Fund
--------------- -----------------
<S> <C> <C>
Record Date Shares Outstanding ...................................................... 366,770,953 1,654,867,977
Shares represented at meeting ....................................................... 287,352,896 1,360,726,756
Percentage of record date shares represented at meeting ............................. 78.35% 82.23%
The votes recorded at the meeting, by proposal, were as follows:
Proposal 1 - The proposed reorganization of each Fund as a series of the
Evergreen Select Money Market Trust, a Delaware business trust:
Shares voted "For" ............................................................ 285,090,877 1,357,664,278
Shares voted "Against" ........................................................ 2,158,373 2,664,651
Shares voted "Abstain" ........................................................ 103,646 397,827
Proposal 2 - Reclassification as non-fundamental of the investment
objective of those Funds whose investment objective is currently
classified as fundamental:
Shares voted "For" ............................................................ 284,800,659 1,340,971,819
Shares voted "Against" ........................................................ 2,267,336 19,357,110
Shares voted "Abstain" ........................................................ 284,901 397,827
Proposal 3 - Changes to Fundamental investment restrictions:
Proposal to amend the fundamental restriction concerning diversification of
investments:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
Proposal to amend the Fundamental restriction concerning concentration of a
Fund's assets in a particular industry:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
Proposal to amend the Fundamental restriction concerning the issuance of senior
securities:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
Proposal to amend the Fundamental restriction concerning borrowing:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
Proposal to amend the Fundamental restriction concerning underwriting:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
Proposal to amend the Fundamental restriction concerning investments in Real
Estate:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
Proposal to amend the Fundamental restriction concerning commodities:
Shares voted "For" ............................................................ 284,744,476 1,355,851,895
Shares voted "Against" ........................................................ 2,434,284 4,477,034
Shares voted "Abstain" ........................................................ 174,136 397,827
</TABLE>
30
<PAGE>
ADDITIONAL INFORMATION (Unaudited) (continued)
<TABLE>
<CAPTION>
Select
Money Select Select
Market Municipal Treasury
Fund Fund Fund
-------- ------------- --------------
<S> <C> <C> <C>
Proposal to amend the Fundamental restriction concerning lending:
Shares voted "For" ............................................................. N/A 284,744,476 1,355,851,895
Shares voted "Against" ......................................................... N/A 2,434,284 4,477,034
Shares voted "Abstain" ......................................................... N/A 174,136 397,827
Proposal to amend the Fundamental restriction concerning investment in federally
tax exempt securities:
Shares voted "For" ............................................................. N/A 284,744,476 N/A
Shares voted "Against" ......................................................... N/A 2,434,284 N/A
Shares voted "Abstain" ......................................................... N/A 174,136 N/A
Proposal to amend the Fundamental restriction concerning investment in Municipal
Securities:
Shares voted "For" ............................................................. N/A 284,744,476 N/A
Shares voted "Against" ......................................................... N/A 2,434,284 N/A
Shares voted "Abstain" ......................................................... N/A 174,136 N/A
Proposal to amend the Investment objective:
Shares voted "For" ............................................................. N/A 284,775,417 N/A
Shares voted "Against" ......................................................... N/A 2,299,675 N/A
Shares voted "Abstain" ......................................................... N/A 277,804 N/A
</TABLE>
FEDERAL INCOME TAX STATUS OF DIVIDENDS (Unaudited)
100% of the dividends distributed by Evergreen Select Municipal Money Market
Fund for the year ended February 28, 1998 are exempt from federal income tax,
other than alternative minimum tax.
31
<PAGE>
Evergreen Select Funds
MONEY MARKETS GROWTH AND INCOME /
Money Market Fund BALANCED FUNDS
Treasury Money Market Fund Equity Income Fund
100% Treasury Money market Fund Balanced Fund
Municipal Money Market Fund
GROWTH FUND
MUNICIPAL FIXED Small Company Growth Fund
INCOME FUNDS Small Company Value Fund
Intermediate Tax-Exempt Bond Fund Strategic Growth Fund
Common Stock Fund
TAXABLE FIXED Large Cap Blend Fund
INCOME FUNDS Strategic Value Fund
Total Return Bond Fund Diversified Value Fund
Income Plus Fund Social Principles Fund
Core Bond Fund
Fixed Income
Adjustable Rate Fund
Limited Duration Fund
67421 540713 RV02 4/98
BULK RATE
U.S. POSTAGE
PAID
CHARLOTTE, NC
PERMIT NO. 136
Evergreen Tree Funds Logo appears here
201 South College St.
Charlotte, NC 28288
