EVERGREEN SELECT MONEY MARKET TRUST, 485BPOS, 1999-06-29

EVERGREEN SELECT MONEY MARKET TRUST
485BPOS, 1999-06-29

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1933 Act No. 333-37727
1940 Act No. 811-08405

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 5 [X]

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 6 [X]

EVERGREEN SELECT MONEY MARKET TRUST
(Exact Name of Registrant as Specified in Charter)

200 Berkeley Street, Boston, Massachusetts 02116-5034
(Address of Principal Executive Offices)

(617) 210-3200
(Registrant's Telephone Number)

The Corporation Trust Company
1209 Orange Street
Wilmington, Delaware 19801
(Name and Address of Agent for Service)

It is proposed that this filing will become effective:
[X] immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(11
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1)

<PAGE>

EVERGREEN SELECT MONEY MARKET TRUST

CONTENTS OF
POST-EFFECTIVE AMENDMENT NO. 5
to
REGISTRATION STATEMENT

This Post-Effective Amendment No. 5 to Registrant's Registration Statement
No. 333-37227/811-08405 consists of the following pages, items of information
and documents:

The Facing Sheet

The Contents Page

PART A
------

Prospectus for Evergreen Select Money Market Fund, Evergreen Select
Municipal Money Market Fund, Evergreen Select Treasury Money Market Fund and
Evergreen Select 100% Treasury Money Market Fund is contained herein.

PART B
------

Statement of Additional Information for Evergreen Select Money Market Fund,
Evergreen Select Municipal Money Market Fund, Evergreen Select Treasury Money
Market Fund and Evergreen Select 100% Treasury Money Market Fund are contained
herein.

PART C
------

Exhibits

Indemnification

Business and Other Connections of Investment Adviser

Principal Underwriter

Location of Accounts and Records

Undertakings

Signatures

<PAGE>

EVERGREEN SELECT MONEY MARKET TRUST

PART A

PROSPECTUSES

<PAGE>
Evergreen
Select
Money Market
Funds

Evergreen Select Money Market Fund
Evergreen Select Municipal Money Market Fund
Evergreen Select Treasury Money Market Fund
Evergreen Select 100% Treasury Money Market Fund

Institutional shares
Institutional Service shares

Prospectus, July 1, 1999

The Securities and Exchange Commission has not determined that the information
in this prospectus is accurate or complete, nor has it approved or disapproved
these securities. Anyone who tells you otherwise is committing a crime.

<PAGE>

FUND SUMMARIES:
Evergreen Select Money Market Fund........................
Evergreen Select Municipal Money Market Fund..............
Evergreen Select Treasury Money Market Fund...............
Evergreen Select 100% Treasury
Money Market Fund.........................................
GENERAL INFORMATION:
The Funds' Investment Advisor.............................
Calculating the Share Price...............................
How to Choose an Evergreen Fund...........................
How to Choose the Share Class
That Best Suits You.......................................
How to Buy Shares.........................................
How to Redeem Shares......................................
Other Services............................................
The Tax Consequences of
Investing in the Funds....................................
Fees and Expenses of the Funds............................
Financial Highlights......................................
Other Fund Practices......................................

In general, Funds included in this prospectus seek to provide investors with
current income consistent with stability of principal and liquidity.

Fund Summaries Key
Each Fund's summary is organized around the following basic topics and
questions:

Investment Goal
What is the Fund's financial objective? You can find clarification on how the
Fund seeks to achieve its objective by looking at the Fund's strategy and
investment policies. The Fund's Board of Trustees can change the investment
objective without a shareholder vote.

Investment Strategy
How does the Fund go about trying to meet its goals? What types of investments
does it contain? What style of investing and investment philosophy does it
follow? Does it have limits on the amount invested in any particular type of
security?

Risk Factors
What are the specific risks for an investor in the Fund?

Performance
How well has the Fund performed in the past year? The past five years? The past
ten years?

Expenses
How much does it cost to invest in the Fund? What is the difference between
sales charges and expenses?

<PAGE>

Select Money Market Funds

typically rely on a combination of the following strategies:
o maintaining $1.00 per share net asset value;

o investing in high-quality, short-term money market instruments including
U.S. government securities;

o investing in compliance with industry-standard requirements for money
market funds for the quality, maturity and diversification
of investments; and

o selling a portfolio investment when the issuer's investment fundamentals
begin to deteriorate, when the investment no longer appears to meet the
Fund's investment objective, when the Fund must meet redemptions, or for
other reasons which the portfolio manager deems necessary.

may be appropriate for investors who:
o are seeking a conservative investment which invests in relatively safe
securities;

o are seeking a Fund for short-term investment; and

o are seeking liquidity.

Following this overview, you will find information on each Fund's specific
investment strategies and risks.

Risk Factors For All Mutual Funds
Please remember that mutual fund shares are:
o not guaranteed to achieve their investment goal
o not insured, endorsed or guaranteed by the FDIC, a bank or any government
agency
o subject to investment risks, including possible loss of your original
investment

Although Select Money Market Funds seek to preserve the value of your investment
at $1.00 per share, it is possible to lose money by investing in the Funds.

Here are the most important factors that may affect the value of your
investment:

Interest Rate Risk
When interest rates go up, the value of debt securities tends to fall. Since
your Fund invests a significant portion of its portfolio in debt securities, if
interest rates rise, then the value of your investment may decline. When
interest rates go down, interest earned by your Fund on its investments may also
decline, which could cause the Fund to reduce the dividends it pays.

Credit Risk
The value of a debt security is directly affected by the issuer's ability to
repay principal and pay interest on time. Since your Fund invests in debt
securities, the value of your investment may decline if an issuer fails to pay
an obligation on a timely basis.

<PAGE>

Select Money Market Fund
FUND FACTS:

Goal:
High Current Income
Preservation of Capital
Liquidity

Principal Investment:
Short-term Corporate Debt Securities

Classes of Shares Offered in this Prospectus:
Institutional
Institutional Service

Investment Advisor:
Evergreen Investment Management

NASDAQ Symbol:
EMIXX (Institutional)
EMSXX (Institutional Service)

Dividend Payment Schedule:
Monthly

[GRAPHIC OMITTED] investment Goal

The Fund seeks as high a level of current income as is consistent with
preserving capital and providing liquidity.

[GRAPHIC OMITTED]investment Strategy

The following supplements the investment strategies discussed in the "Overview"
on page 1.

The Fund invests principally in short-term corporate debt securities determined
to present minimal credit risk. In addition, the Fund may invest in short-term
securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities, including the Interamerican Development Bank and the
International Bank for Reconstruction and Development. The Fund may also invest
in commercial paper and bank obligations. The portfolio manager focuses
primarily on the interest rate environment in determining which securities to
purchase for the portfolio.

[GRAPHIC OMITTED]Risk Factors

Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 1 under the headings:

o Interest Rate Risk
o Credit Risk

Because obligations of the Interamerican Development Bank and the International
Bank of Reconstruction and Development are supported only by appropriated but
unpaid commitments of member countries, there is no assurance that the
commitments will be undertaken in the future.

For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices."

<PAGE>

Performance

The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.

The chart below shows the percentage gain or loss for Institutional shares of
the Fund in each calendar year since the Institutional shares' inception on
11/19/1996. It should give you a general idea of how the Fund's return has
varied from year-to-year. This graph includes the effects of Fund expenses.

Year-by-Year Total Return for Institutional Shares (%)

1997 1998

5.70% 5.63%

Best Quarter: 4th Quarter 1997 +1.43%
Worst Quarter: 4th Quarter 1998 +1.34%

Year to date total return through 3/31/1999 is +1.24%.

The next table lists the Fund's average annual total return by class over the
past one year and since inception (through 12/31/1998). This table is intended
to provide you with some indication of the risks of investing in the Fund.

Average Annual Total Return
(for the period ended 12/31/1998)
Inception Performance
Date Since
Of Class 1 year 5 year 10 year Class Inception
Institutional 11/19/1996 5.63% N/A N/A 5.67%
Institutional
Service 11/26/1996 5.36% N/A N/A 5.41%

To obtain current yield information call 1-800-343-2898.

Expenses

This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.

You pay no shareholder transaction fees.

Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)*
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses**
Institutional 0.15% 0.00% 0.07% 0.22%
Institutional
Service 0.15% 0.25% 0.07% 0.47%

*Actual expenses for the fiscal year ended 2/28/1999.

**From time to time, the Fund's investment advisor may, at its discretion,
reduce or waive its fees or reimburse a Fund for certain of its expenses in
order to reduce expense ratios. The Fund's investment advisor may cease these
waivers or reimbursements at any time. The annual operating expenses do not
reflect fee waivers and expense reimbursements. Including current fee waivers
and expense reimbursements, Total Fund Operating Expenses were 0.21% for
Institutional shares and 0.46% for Institutional Service shares.

The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.

Example of Fund Expenses

Institutional Institutional Service
After 1 year $22 $48
After 3 years $71 $151
After 5 years $124 $263
After 10 years $279 $592

<PAGE>

Select Municipal Money Market Fund
FUND FACTS:

Goal:
High Current Income Exempt from Federal Tax
Preservation of Capital
Liquidity

Principal Investment:
Municipal Money Market Securities

Classes of Shares Offered in this Prospectus:
Institutional
Institutional Service

Investment Advisor:
Evergreen Investment Management

NASDAQ Symbols:
EMMXX (Institutional)
EISXX (Institutional Service)

Dividend Payment Schedule:
Monthly

[GRAPHIC OMITTED] investment Goal

The Fund seeks as high a level of current income exempt from federal income tax
as is consistent with preserving capital and providing liquidity.

[GRAPHIC OMITTED]investment Strategy

The following supplements the investment strategies discussed in the "Overview"
on page 1.

The Fund invests principally in short-term municipal money market securities,
notes and commercial paper determined to present minimal credit risk and issued
by any U.S. state, the District of Columbia and their political subdivisions.
Under normal circumstances, at least 80% of the Fund's annual interest income
will be exempt from federal income tax, other than the alternative minimum tax.
The Fund may temporarily invest up to 20% of its net assets in taxable
securities under one or more of the following circumstances: (a) pending
investment of proceeds from sale of Fund shares or of portfolio securities; (b)
pending settlement of purchases of portfolio securities, and (c) to maintain
liquidity for the purpose of meeting anticipated redemptions. The Fund may
temporarily invest more than 20% of its total assets in taxable securities for
defensive purposes which may result in the Fund not achieving its investment
objective. In determining what securities to purchase for the portfolio the
portfolio manager focuses on the supply and demand of the security in the market
place as well as the current interest rate environment.

Risk Factors

Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 1 under the headings:

o Interest Rate Risk
o Credit Risk

For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices."

<PAGE>

[GRAPHIC OMITTED]Performance

The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.

The chart below shows the percentage gain or loss for Institutional shares of
the Fund in each calendar year since the Institutional shares' inception on
11/20/1996. It should give you a general idea of how the Fund's return has
varied from year-to-year. This graph includes the effects of Fund expenses.

Year-by-Year Total Return for Institutional Shares (%)
1997 1998

3.66% 3.61%

Best Quarter: 2nd Quarter 1997 +0.96%
Worst Quarter: 1st Quarter 1997 +0.81%

Year to date total return through 3/31/1999 is +0.75%.

Average Annual Total Return
(for the period ended 12/31/1998)
Inception Performance
Date Since
Of Class 1 year 5 year 10 year Class Inception
Institutional 11/20/1996 3.61% N/A N/A 3.63%
Institutional
Service 11/25/1996 3.35% N/A N/A 3.38%

To obtain current yield information call 1-800-343-2898.

Expenses

This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.

You pay no shareholder transaction fees.

Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)*
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses**
Institutional 0.15% 0.00% 0.09% 0.24%
Institutional
Service 0.15% 0.25% 0.09% 0.49%

*Actual expenses for the fiscal year ended 2/28/1999.

**From time to time, the Fund's investment advisor may, at its discretion,
reduce or waive its fees or reimburse a Fund for certain of its expenses in
order to reduce expense ratios. The Fund's investment advisor may cease these
waivers or reimbursements at any time. The annual operating expenses do not
reflect fee waivers and expense reimbursements. Including current fee waivers
and expense reimbursements, Total Fund Operating Expenses were 0.18% for
Institutional shares and 0.42% for Institutional Service shares.

Example of Fund Expenses

Institutional Institutional Service
After 1 year $25 $50
After 3 years $77 $157
After 5 years $135 $274
After 10 years $305 $616

<PAGE>

Select Treasury Money Market Fund
FUND FACTS:

Goal:
Stability of Principal
Current Income

Principal Investments:
Short-term U.S. Treasury Obligations
Repurchase Agreements backed by
Short-term Treasury Obligations

Classes of Shares Offered in this Prospectus:
Institutional
Institutional Service

Investment Advisor:
Evergreen Investment Management

NASDAQ Symbols:
EIMXX (Institutional)
EITXX (Institutional Service)

Dividend Payment Schedule:
Monthly

[GRAPHIC OMITTED] investment Goal

The Fund seeks to maintain stability of principal while earning current income.

[GRAPHIC OMITTED]investment Strategy

The following supplements the investment strategies discussed in the "Overview"
on page 1.

The Fund will invest in short-term U.S. Treasury obligations and repurchase
agreements backed by such obligations. U.S. Treasury securities are guaranteed
as to principal and interest, and supported by the full faith and credit of the
U.S. government. The portfolio manager focuses primarily on the interest rate
environment in determining which securities to purchase for the portfolio.

[GRAPHIC OMITTED]Risk Factors

Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 1 under the headings:

o Interest Rate Risk

For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices."

<PAGE>

[GRAPHIC OMITTED]Performance

The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.

Year-by-Year Total Return for Institutional Shares (%)

1997 1998

5.49% 5.37%

Best Quarter: 4th Quarter 1997 +1.38%
Worst Quarter: 4th Quarter 1998 +1.22%

Year to date total return through 3/31/1999 is +1.16%.

Average Annual Total Return
(for the period ended 12/31/1998)
Inception Performance
Date Since
Of Class 1 year 5 year 10 year Class Inception
Institutional 11/20/1996 5.37% N/A N/A 5.44%
Institutional
Service 11/27/1996 5.11% N/A N/A 5.18%

To obtain current yield information call 1-800-343-2898.

[GRAPHIC OMITTED] Expenses

This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.

You pay no shareholder transaction fees.

Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)*
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses**
Institutional 0.15% 0.00% 0.08% 0.23%
Institutional
Service 0.15% 0.25% 0.07% 0.47%

*Actual expenses for the fiscal year ended 2/28/1999.

**From time to time, the Fund's investment advisor may, at its discretion,
reduce or waive its fees or reimburse a Fund for certain of its expenses in
order to reduce expense ratios. The Fund's investment advisor may cease these
waivers or reimbursements at any time. The annual operating expenses do not
reflect fee waivers and expenses reimbursements. Including current fee waivers
and expense reimbursement, Total Fund Operating Expenses were 0.21% for
Institutional shares and 0.45% for Institutional Service shares.

Example of Fund Expenses

Institutional Institutional Service
After 1 year $24 $48
After 3 years $74 $151
After 5 years $130 $263
After 10 years $293 $591

<PAGE>

Select 100% Treasury Money Market Fund
FUND FACTS:

Goal:
Stability of Principal
Current Income

Principal Investment:
U.S. Treasury Securities

Classes of Shares Offered in this Prospectus:
Institutional
Institutional Service

Investment Advisor:
Evergreen Investment Management

NASDAQ Symbols:
EIMIX (Institutional)
EIMSX (Institutional Service)

Dividend Payment Schedule:
Monthly

[GRAPHIC OMITTED] investment Goal

The Fund seeks to maintain stability of principal while earning current income.

investment Strategy

The following supplements the investment strategies discussed in the "Overview"
on page 1.

The Fund will invest only in U.S. Treasury securities, which are high quality
debt securities issued by the U.S. Treasury, guaranteed as to principal and
interest and supported by the full faith and credit of the U.S. government. The
portfolio manager focuses primarily on the interest rate environment in
determining which securities to purchase for the portfolio.

Risk Factors

Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 1 under the headings:

o Interest Rate Risk

For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices."

<PAGE>

[GRAPHIC OMITTED]Performance

The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.

The chart below shows the percentage gain or loss for Institutional shares of
the Fund in each calendar year since the Institutional shares' inception on
12/08/1997. It should give you a general idea of how the Fund's return has
varied from year-to-year. This graph includes the effects of Fund expenses.

Year-by-Year Total Return for Institutional Shares (%)

1998

4.99%

Best Quarter: 1st Quarter 1998 +1.27%
Worst Quarter: 4th Quarter 1998 +1.13%

Year to date total return through 3/31/1999 is +1.10%.

Average Annual Total Return
(for the period ended 12/31/1998)
Inception Performance
Date Since
Of Class 1 year 5 year 10 year Class Inception
Institutional 12/08/1997 4.99% N/A N/A 5.03%
Institutional
Service 12/23/1997 4.73% N/A N/A 4.75%

To obtain current yield information call 1-800-343-2898.

[GRAPHIC OMITTED] Expenses

This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.

You pay no shareholder transaction fees.

Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)*
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses**
Institutional 0.25% 0.00% 0.09% 0.34%
Institutional
Service 0.25% 0.25% 0.08% 0.58%

*Actual expenses for the fiscal year ended 2/28/1999.

** From time to time, the Fund's investment advisor may, at its discretion,
reduce or waive its fees or reimburse a Fund for certain of its expenses in
order to reduce expense ratios. The Fund's investment advisor may cease these
waivers or reimbursements at any time. The annual operating expenses do not
reflect fee waivers and expenses reimbursements. Including current fee waivers
and expense reimbursements and restated to reflect current fees, Total Fund
Operating Expenses would have been 0.17% for Institutional shares and 0.41% for
Institutional Service shares.

Example of Fund Expenses

Institutional Institutional Service
After 1 year $35 $60
After 3 years $109 $189
After 5 years $191 $329
After 10 years $430 $738

<PAGE>

The Funds' Investment Advisor

An investment advisor manages a Fund's investments and supervises its daily
business affairs. The investment advisor for the Evergreen Select Money Market
Funds is Evergreen Investment Management. All investment advisors for the
Evergreen Funds are subsidiaries of First Union Corporation, the sixth largest
bank holding company in the United States, with over $223 billion in
consolidated assets as of 3/31/1999. First Union Corporation is located at 301
South College Street, Charlotte, North Carolina 28288-0013.

Evergreen Investment Management (EIM) (formerly known as Capital Management
Group, or CMG), a division of First Union National Bank (FUNB), has been
managing money for over 50 years and currently manages over $28.8 billion in
assets for 44 of the Evergreen Funds.
EIM is located at 201 South College Street, Charlotte, North Carolina
28288-0013.

For the fiscal year ended 2/28/1999, aggregate advisory fees paid to EIM by each
Fund were as follows:

% of the Fund's average
Fund daily net assets
Money Market 0.14%
Municipal Money Market 0.09%
Treasury Money Market 0.13%
100% Treasury Money Market 0.08%

Year 2000 Compliance
The investment advisors and other service providers for the Evergreen Funds are
taking steps to address any potential Year 2000-related computer problems.
However, there is some risk that these problems could disrupt the Funds'
operations or financial markets generally. In addition, issuers of securities,
especially foreign issuers, in which the Funds may invest, may be adversely
affected by Year 2000 problems. Such problems could negatively impact the value
of the Funds' securities.

Calculating The Share Price

The value of one share of a Fund, also known as the net asset value, or NAV, is
calculated twice daily on each day the New York Stock Exchange is open at 12:00
noon (Eastern time) and as of the time the Exchange closes (normally 4:00 p.m.
Eastern time). The share price is calculated for each share by adding up the
total assets of the Fund, subtracting all liabilities, then dividing the result
by the total number of shares outstanding. Each class of shares is calculated
separately. Each security held by a Fund is valued on an amortized cost basis
according to Rule 2a-7 under the Investment Company Act of 1940. Under this
method of valuation, a security is initially valued at its acquisition cost, and
thereafter a constant straightline amortization of any discount or premium is
assumed each day regardless of the impact of fluctuating interest rates on the
market value of the security.

The price per share you pay for a Fund purchase or the amount you receive for a
Fund redemption is based on the next price calculated after the order is
received and all required information is provided. The value of your account at
any given time is the latest share price multiplied by the number of shares you
own.

Select Municipal Money Market Fund Only
Prior to investing in Select Municipal Money Market Fund the investor may want
to determine which investment (tax-free or taxable) will result in a higher
after-tax return. To do this, the yield on the tax-free investment should be
divided by the decimal determined by subtracting from 1 the highest federal tax
rate to which the investor currently is subject. For example, if the tax-free
yield is 6% and the investor's maximum tax bracket is 36%, the computation is:

6% Tax-Free Yield/(1-.36 Tax Rate) = 6/.64 = 9.38% Taxable Yield.

How To Choose AN EVERGREEN Fund

When choosing an Evergreen Fund, you should:
o Most importantly, read the prospectus to see if the Fund is suitable
for you.
o Consider talking to an investment professional. He or she is qualified to
give you investment advice based on your investment goals and financial
situation and will be able to answer questions you may have after reading
the Fund's prospectus.
He or she can also assist you through all phases of opening your account.
o Request any additional information you want about the Fund, such as the
Statement of Additional Information, Annual Report or Semi-annual Report by
calling 1-800-343-2898.

How To Choose The Share
Class That Best Suits You

After choosing a Fund, you select a share class. The Funds offer two different
institutional classes. Each institutional class of shares has its own expenses.
Pay particularly close attention to this fee structure so you know how much you
will be paying before you invest. Institutional shares are only offered to
investment advisory clients of an investment advisor of an Evergreen Fund (or
the advisor's affiliates).

Each class of shares is sold without a front-end sales charge or contingent
deferred sales charge. Institutional Service shares pay an ongoing service fee.
Institutional shares do not pay a service fee. The minimum initial investment in
either class of shares is $1 million, which may be waived in certain situations.
There is no minimum amount required for subsequent purchases.

Each Fund has adopted for its Institutional Service shares a distribution plan
which provides for the payment of an annual service fee of up to 0.25% of the
average daily net assets of the class for personal services rendered to
shareholders and/or the maintenance of accounts. As a result, income
distributions paid by a Fund with respect to Institutional Service shares will
generally be less than those paid with respect to Institutional shares.

<PAGE>

How To Buy Shares

Institutional investors may buy shares through broker-dealers, banks and certain
other financial intermediaries, or directly through the Funds' distributor,
Evergreen Distributor, Inc. (EDI).

<PAGE>

- ------------------------ ----------------------------------------------------------- ------------------------------------------
<S> <C> <C>
Method Opening an Account Adding to an Account
- ------------------------ ----------------------------------------------------------- ------------------------------------------
- ------------------------ ----------------------------------------------------------- ------------------------------------------
By Phone o Call 1-800-343-2898 to set up an account number o Call the Evergreen Express
and get wiring instructions (call before 12 noon if you Line** at 1-800-346-3858 24 hours a
want wired funds to be credited that day). day or 1-800-343-2898 between 8 a.m.
o Instruct your bank to wire or transfer your and 6 p.m. Eastern time, on any
purchase (they may charge a wiring fee). business day.
o Complete the account application and mail to: o If your bank account is set up
Evergreen Service Company Overnight Address: on file, you can request either:
P.O. Box 2121 Evergreen Service Company - Federal Funds Wire (offers
Boston, MA 02106-2121 200 Berkeley St. immediate access to funds) or
Boston, MA 02116-5039 - Electronic transfer through the
o Wires received after 4 p.m. Eastern time on Automated Clearing House which
market trading days will receive the next market day's avoids wiring fees.
closing price.*
- ------------------------ ----------------------------------------------------------- ------------------------------------------
- ------------------------ ------------------------------------------------------------------------------------------------------
By Exchange o You can make an additional investment by
exchange from an existing Evergreen Funds account by
contacting your investment representative or calling
the Evergreen Express Line** at 1-800-346-3858.***
o You can only exchange shares within the same class.
o There is no sales charge or redemption fee when
exchanging funds within the Evergreen Funds family.
o Orders placed before 4 p.m. Eastern time on market
trading days will receive that day's closing share
price (if not, you will receive the next market day's
closing price).*
o Exchanges are limited to three per calendar quarter,
but in no event more than five per calendar year.
o Exchanges between accounts which do not have
identical ownership must be made in writing with a
signature guarantee (see below).
- ------------------------ ------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

How To REDEEM Shares

We offer you several convenient ways to redeem your shares in any of the
Evergreen Funds:

- ------------------------- -----------------------------------------------------------------------------------------------------
<S> <C>
Methods Requirements
- ------------------------- -----------------------------------------------------------------------------------------------------
- ------------------------- -----------------------------------------------------------------------------------------------------
Call Us o Call the Evergreen Express Line** at 1-800-346-3858 24 hours a day or 1-800-343-2898
between 8 a.m. and 6 p.m. Eastern time, on any business day.
o This service must be authorized ahead of time, and is only available for regular
accounts.***
o All authorized requests made before 4 p.m. Eastern
time on market trading days will be processed at
that day's closing price. Requests after 4 p.m.
will be processed the following business day.*
o We can either:
- wire the proceeds into your bank account (service charges may apply)
- electronically transmit the proceeds to your bank account via the Automated Clearing House
service
- mail you a check.
o All telephone calls are recorded for your
protection. We are not responsible for acting on
telephone orders we believe are genuine.
o See exceptions list below for requests that must be
made in writing.
- ------------------------- -----------------------------------------------------------------------------------------------------
- ------------------------- -----------------------------------------------------------------------------------------------------
Write Us o You can mail a redemption request to: Evergreen Service Company Overnight Address:
P.O. Box 2121 Evergreen Service Company
Boston, MA 02106-2121 200 Berkeley St.
Boston, MA 02116-5039
o Your letter of instructions must:
- list the Fund name and the account number
- indicate the number of shares or dollar value you
wish to redeem
- be signed by the registered owner(s)
o See exceptions list below for requests that must be
signature guaranteed.
- ------------------------- -----------------------------------------------------------------------------------------------------
- ------------------------- -----------------------------------------------------------------------------------------------------
Redeem Your Shares in o You may also redeem your shares through participating broker-dealers by delivering a
Person letter as described above to your broker-dealer.
o A fee may be charged for this service.
- ------------------------- -----------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

* The Fund's shares may be made available through financial service firms who
have a service agreement with the Fund, which are also investment dealers. The
Fund has approved the acceptance of purchase and repurchase request orders
effective as of the time of their receipt by certain authorized financial
intermediaries.

** The Evergreen Express Line is only available to Institutional
Service shares.

*** Once you have authorized either the telephone exchange or
redemption service, anyone with a Personal Identification Number (PIN) and the
required account information (including your broker) can request a telephone
transaction in your account. All calls are recorded or monitored for
verification, recordkeeping and quality-assurance purposes. The Evergreen Funds
reserve the right to terminate the exchange privilege of any shareholder who
exceeds the listed maximum number of exchanges.

<PAGE>

Timing of Proceeds
Normally, we will send your redemption proceeds on the next business day after
we receive your request; however, we reserve the right to wait up to seven
business days to redeem any investments made by check and five business days for
investments made by Automated Clearing House transfer. We also reserve the right
to redeem in kind by paying you the proceeds of a redemption in securities
rather than in cash, and to redeem the remaining amount in the account if your
redemption brings the account balance below the initial minimum of $1,000,000.

Exceptions: Redemption Requests That Require A Signature Guarantee
To protect you and Evergreen Funds against fraud, certain redemption requests
must be made in writing with your signature guaranteed. A signature guarantee
can be obtained at most banks and securities dealers. A notary public is not
authorized to provide a signature guarantee. The following circumstances require
signature guarantees:

<PAGE>

o You want the proceeds transmitted Who Can Provide A Signature Guarantee:
to a bank account not listed on the o Commercial Bank
account o Trust Company
o You want the proceeds payable to o Savings Association
anyone other than the registered o Credit Union
owner(s) of the account o Member of a U.S. stock exchange
o Either your address or the address of
your bank account has been changed
within 30 days

<PAGE>

Other Services

Evergreen Express Line
(Institutional Service shares only)
Use our automated, 24-hour service to check the value of your investment in a
Fund; purchase, redeem or exchange Fund shares; find a Fund's price, yield or
total return; order a statement or duplicate tax form; or hear market commentary
from Evergreen portfolio managers.

Automatic Reinvestment of Dividends
For the convenience of investors, all dividends and capital gains distributions
are automatically reinvested, unless you request otherwise. Distributions can be
made by check or electronic transfer through the Automated Clearing House to
your bank account. The details of your dividends and other distributions will be
included on your statement.

Telephone Investment Plan
You may make additional investments electronically in an existing Fund account.
Telephone requests received by 4 p.m. Eastern time will be invested the day the
request is received.

Reinvestment Privileges
Under certain circumstances, shareholders may, within one year of redemption,
reinstate their accounts at the current price (NAV).

The Tax Consequences of Investing in the fundS

You may be taxed in two ways:
o On Fund distributions (capital gains and dividends) o On any profit you make
when you sell any or all of your shares.

Fund Distributions
A mutual fund passes along to all of its shareholders the net income or profits
it receives from its investments. The shareholders of the Fund then pay any
taxes due, whether they receive these distributions in cash or elect to have
them reinvested. The Select Municipal Money Market Fund expects that
substantially all of its regular dividends will be exempt from federal income
tax other than the alternative minimum tax. Otherwise, the Funds will distribute
two types of taxable income to you:

o Dividends. To the extent that regular dividends are derived from
interest that is not tax exempt, or from short-term
capital gains, you will have to include them in your federal taxable
income. Each Fund pays a monthly dividend from the dividends, interest
and other income on the securities in which it invests.

o Capital Gains. When a mutual fund sells a security it owns for a profit,
the result is a capital gain. Evergreen Select Money Market Funds
generally distribute capital gains, if any, at least once a year, near
the end of the calendar year. Short-term capital gains reflect securities
held by the Fund for a year or less and are considered ordinary income
just like dividends. Profits on securities held longer than 12 months are
considered long-term capital gains and are taxed at a special tax rate
(20% for most taxpayers, on sales made after January 1, 1998).

Dividend and Capital Gain Reinvestment
Unless you choose otherwise on the account application, all dividend and capital
gain payments will be reinvested to buy additional shares. Distribution checks
that are returned and distribution checks that are uncashed when the shareholder
has failed to respond to mailings from the shareholder servicing agent will
automatically be reinvested to buy additional shares.

No interest will accrue on amounts represented by uncashed distribution or
redemption checks.

We will send you a statement each January with the federal tax status of
dividends and distributions paid by each Fund during the previous calendar year.

Profits You Realize When You Redeem Shares
When you sell shares in a mutual fund, whether by redeeming or exchanging, you
have created a taxable event. You must report any gain or loss on your tax
return unless the transaction was entered into by a tax-deferred retirement
plan. Investments in money market funds typically do not generate capital gains.
It is your responsibility to keep accurate records of your mutual fund
transactions. You will need this information when you file your income tax
return, since you must report any capital gains or losses you incur when you
sell shares. Remember, an exchange is a purchase and a sale for tax purposes.

Tax Reporting
Evergreen Service Company provides you with a tax statement of your dividend and
capital gains distributions for each calendar year on Form 1099 DIV. Proceeds
from a sale are reported on Form 1099B. You must report these on your tax
return. Since the IRS receives a copy as well, you could pay a penalty if you
neglect to report them.

Evergreen Service Company will send you a tax information guide each year during
tax season, which may include a cost basis statement detailing the gain or loss
on taxable transactions you had during the year. Please consult your own tax
advisor for further information regarding the federal, state and local tax
consequences of an investment in the Funds.

FEES and Expenses OF THE FUNDS

Every mutual fund has fees and expenses that are assessed either directly or
indirectly. This section describes each of those fees.

Management Fee
The management fee pays for the normal expenses of managing the Fund, including
portfolio manager salaries, research costs, corporate overhead expenses and
related expenses.

12b-1 Fee
The Trustees of the Evergreen Funds have approved a policy to assess 12b-1 fees
for Institutional Service shares. Up to 0.75% of each Fund's daily net assets
are payable as a 12b-1 fee. However, currently the 12b-1 fees are limited to
0.25% of each Fund's daily net assets. These fees will increase the cost of your
investment. The Fund may use this fee as a "service fee" to pay broker-dealers
for additional shareholder services and/or the maintenance of accounts.

Other Expenses
Other expenses include miscellaneous fees from affiliated and outside service
providers. These may include legal, audit, custodial and safekeeping fees, the
printing and mailing of reports and statements, automatic reinvestment of
distributions and other conveniences for which the shareholder pays no
transaction fees.

Total Fund Operating Expenses
The total cost of running the Fund is called the expense ratio. As a
shareholder, you are not charged these fees directly; instead they are taken out
before the Fund's net asset value is calculated, and are expressed as a
percentage of the Fund's average daily net assets. The effect of these fees is
reflected in the performance results for that share class. Because these fees
are "invisible," investors should examine them closely in the prospectus,
especially when comparing one fund with another fund in the same investment
category. There are three things to remember about expense ratios: 1) your total
return in the Fund is reduced in direct proportion to the fees; 2) expense
ratios can vary greatly between funds and fund families, from under 0.25% to
over 3.0%; and 3) the Fund's advisor may waive a portion of the Fund's expenses
for a period of time, reducing its expense ratio.

<PAGE>

FINANCIAL HIGHLIGHTS
This section looks in detail at the results for one share in each share class
of the Funds--how much income it earned, how much of this income was passed
along as a distribution and how much the return was reduced
by expenses. The tables for the Funds have been derived from financial
statements audited by PricewaterhouseCoopers LLP, the Funds' independent
accountants. For a more complete picture of the Funds' financial statements,
please see the Funds' Annual Report as well as the Statement of Additional
Information.
- --------------------------------------------------------------------------------

SELECT MONEY MARKET FUND CLASS I

Year Ended February 28,
--------------------------------
1999 1998 1997 (a)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.054 0.056 0.015
.............................................................................
Less distributions to shareholders from
net investment income (0.054) (0.056) (0.015)
---------- ---------- --------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Total return 5.53% 5.71% 1.57%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $2,853,495 $1,051,741 $575,331
.............................................................................
Ratios to average net assets
Expenses 0.21% 0.20% 0.07%+
.............................................................................
Net investment income 5.35% 5.60% 5.48%+
.............................................................................

(a) For the period from November 19, 1996 (commencement of class operations) to
February 28, 1997.
(b) For the period from November 26, 1996 (commencement of class operations) to
February 28, 1997.
+ Annualized.

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

SELECT MUNICIPAL MONEY MARKET FUND CLASS I

Year Ended February 28,
----------------------------
1999 1998 1997 (a)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
======== ======== ========
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.035 0.036 0.010
.............................................................................
Less distributions to shareholders from net
investment income (0.035) (0.036) (0.010)
-------- -------- --------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
======== ======== ========
.............................................................................
Total return 3.52% 3.67% 0.96%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $857,242 $441,988 $206,124
.............................................................................
Ratios to average net assets
Expenses 0.18% 0.10% 0.05%+
.............................................................................
Net investment income 3.41% 3.63% 3.50%+
.............................................................................

(a) For the period from November 20, 1996 (commencement of class operations) to
February 28, 1997.
(b) For the period from November 25, 1996 (commencement of class operations) to
February 28, 1997.
+ Annualized.

SELECT MONEY MARKET FUNDS 15

EVERGREEN

SELECT MONEY MARKET FUND CLASS IS

Year Ended February 28,
--------------------------------
1999 1998 1997 (b)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.051 0.053 0.014
.............................................................................
Less distributions to shareholders from
net investment income (0.051) (0.053) (0.014)
---------- ---------- --------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Total return 5.27% 5.45% 1.40%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $2,242,693 $1,215,348 $867,294
.............................................................................
Ratios to average net assets
Expenses 0.46% 0.45% 0.32%+
.............................................................................
Net investment income 5.12% 5.33% 5.24%+
.............................................................................

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

SELECT MUNICIPAL MONEY MARKET FUND CLASS IS

Year Ended February 28,
---------------------------
1999 1998 1997 (b)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
======== ======= =======
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.032 0.034 0.008
.............................................................................
Less distributions to shareholders from net
investment income (0.032) (0.034) (0.008)
-------- ------- -------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
======== ======= =======
.............................................................................
Total return 3.27% 3.41% 0.85%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $144,002 $61,778 $14,295
.............................................................................
Ratios to average net assets
Expenses 0.42% 0.35% 0.30%+
.............................................................................
Net investment income 3.17% 3.34% 3.19%+
.............................................................................

16 SELECT MONEY MARKET FUNDS

EVERGREEN

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

SELECT TREASURY MONEY MARKET FUND CLASS I

Year Ended February 28,
--------------------------------
1999 1998 1997 (a)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Income from investment operations
..........................................................................
Net investment income 0.051 0.055 0.015
.............................................................................
Less distributions to shareholders from
net investment income (0.051) (0.055) (0.015)
---------- ---------- --------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Total return 5.24% 5.51% 1.49%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $2,061,540 $1,256,701 $367,771
.............................................................................
Ratios to average net assets
Expenses 0.21% 0.18% 0.06%+
.............................................................................
Net investment income 5.10% 5.42% 5.24%+
.............................................................................

(a) For the period from November 20, 1996 (commencement of class operations) to
February 28, 1997.
(b) For the period from November 27, 1996 (commencement of class operations) to
February 28, 1997.
+ Annualized.

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

SELECT 100% TREASURY MONEY MARKET FUND CLASS I

Year Ended February 28,
-----------------------
1999 1998 (a)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00
======== ========
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.048 0.012
.............................................................................
Less distributions to shareholders from net investment
income (0.048) (0.012)
-------- --------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00
======== ========
.............................................................................
Total return 4.88% 1.18%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $546,122 $245,004
.............................................................................
Ratios to average net assets
Expenses 0.17% 0.20%+
.............................................................................
Net investment income 4.72% 5.18%+
.............................................................................

(a) For the period from December 8, 1997 (commencement of class operations) to
February 28, 1998.
(b) For the period from December 23, 1997 (commencement of class operations) to
February 28, 1998.
+ Annualized.

SELECT MONEY MARKET FUNDS 17

EVERGREEN

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

SELECT TREASURY MONEY MARKET FUND CLASS IS

Year Ended February 28,
--------------------------------
1999 1998 1997 (b)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.049 0.052 0.013
.............................................................................
Less distributions to shareholders from
net investment income (0.049) (0.052) (0.013)
---------- ---------- --------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ========
.............................................................................
Total return 4.97% 5.25% 1.33%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $1,471,842 $1,005,059 $509,369
.............................................................................
Ratios to average net assets
Expenses 0.45% 0.43% 0.31%+
.............................................................................
Net investment income 4.81% 5.17% 4.98%+
.............................................................................

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

SELECT 100% TREASURY MONEY MARKET FUND CLASS IS

Year Ended February 28,
-----------------------
1999 1998 (b)
- -----------------------------------------------------------------------------

Net asset value, beginning of period $ 1.00 $ 1.00
======= ======
.............................................................................
Income from investment operations
.............................................................................
Net investment income 0.045 0.009
.............................................................................
Less distributions to shareholders from net investment
income (0.045) (0.009)
------- ------
.............................................................................
Net asset value, end of period $ 1.00 $ 1.00
======= ======
.............................................................................
Total return 4.62% 0.93%
.............................................................................
Ratios and supplemental data
.............................................................................
Net assets, end of period (thousands) $98,426 $5,497
.............................................................................
Ratios to average net assets
Expenses 0.40% 0.42%+
.............................................................................
Net investment income 4.41% 4.74%+
.............................................................................

<PAGE>

OTHER FUND PRACTICES

The Funds may borrow money as a temporary measure for extraordinary or emergency
purposes, such as the redemption of Fund shares. The Funds, except Select 100%
Treasury Money Market Fund, may also lend their securities. Borrowing is a form
of leverage that may magnify a Fund's gain or loss. Lending securities may cause
the Fund to lose the opportunity to sell these securities at the most desirable
price and, therefore, lose money.

Please consult the Statement of Additional Information for more information
regarding these and other investment practices used by the Funds, including
risks.

<PAGE>

Notes

<PAGE>

Evergreen Select Funds
Select Money Market
Select Money Market Fund
Select Treasury Money Market Fund
Select Municipal Money Market Fund
Select 100% Treasury Money Market Fund

Select Fixed Income
Select Adjustable Rate Fund
Select Core Bond Fund
Select Fixed Income Fund
Select Income Plus Fund
Select Intermediate Term Municipal Bond Fund
Select International Bond Fund
Select Limited Duration Fund
Select Total Return Bond Fund

Select Equity Trust
Select Strategic Value Fund
Select Large Cap Blend Fund
Select Strategic Growth Fund
Select Social Principles Fund
Select Equity Income Fund
Select Small Company Value Fund
Select Core Equity Fund
Select Small Cap Growth Fund
Select Balanced Fund
Select Diversified Value Fund
Select Special Equity Fund
Select Equity Index Fund
Select Secular Growth Fund

Express Line
(Institutional Service shares only)
800.346.3858

Investor Services
800.343.2898

www.evergreen-funds.com

<PAGE>

Evergreen Express Line
(Institutional Service shares only)
Call 1-800-346-3858
24 hours a day to
o check your account
o order a statement
o get a Fund's current price, yield and
total return
o buy, redeem or exchange Fund shares

Shareholder Services
Call 1-800-343-2898
Each business day, 8 a.m. to 6 p.m. Eastern time to
o buy, redeem or exchange shares
o order applications
o get assistance with your account

Information Line for Hearing and Speech Impaired (TTY/TDD)
Call 1-800-343-2888
Each business day, 8 a.m. to 6 p.m. Eastern time

Write us a letter
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-2121
o to buy, redeem or exchange shares
o to change the registration on your account
o for general correspondence

For express, registered, or certified mail:
Evergreen Service Company
200 Berkeley Street
Boston, MA 02116-5039

Visit us on-line:
www.evergreen-funds.com

Regular communications you will receive:
Account Statements -- You will receive quarterly statements for each Fund
you own.

Confirmation Notices -- We send a confirmation of any transaction you make
within five days of the transaction.

Annual and Semiannual reports -- You will receive a detailed financial
report on your Fund(s) twice a year.

Tax Forms -- Each January you will receive any tax forms you need to file
your taxes as well as the Evergreen Tax Information Guide.

<PAGE>

For More Information about the Evergreen Select Money Market Funds,
Ask for:

The Funds' most recent Annual or Semi-annual Report, which contains a
complete financial accounting for each Fund and a complete list of the Fund's
holdings as of a specific date, as well as commentary from the Fund's portfolio
manager. This Report discusses the market conditions and investment strategies
that significantly affected the Fund's performance during the most recent fiscal
year or period.

The Statement of Additional Information (SAI), which contains more detailed
information about the policies and procedures of the Funds. The SAI has been
filed with the Securities and Exchange Commission (SEC) and its contents are
legally considered to be part of this prospectus.

For questions, other information, or to request a copy, without charge, of
any of the documents, call 1-800-343-2898 or ask your investment representative.
We will mail material within three business days.

Information about these Funds (including the SAI) is also available on the
SEC's Internet web site at http://www.sec.gov, or, for a duplication fee, by
writing the SEC Public Reference Section, Washington DC 20549-6009. This
material can also be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. For more information, call the SEC at 1-800-SEC-0330.

Evergreen Distributor, Inc.

90 Park Avenue
New York, New York 10016

SEC File No. 811-08405

<PAGE>

EVERGREEN SELECT MONEY MARKET TRUST

PART B

STATEMENT OF ADDITIONAL INFORMATION

<PAGE>

EVERGREEN SELECT MONEY MARKET TRUST

200 Berkeley Street
Boston, Massachusetts 02116
(800) 633-2700

STATEMENT OF ADDITIONAL INFORMATION

July 1, 1999

Evergreen Select Money Market Fund ("Money Fund")
Evergreen Select Municipal Money Market Fund ("Municipal Fund")
Evergreen Select Treasury Money Market Fund ("Treasury Fund")
Evergreen Select 100% Treasury Money Market Fund (100% Treasury Fund")

(Each a "Fund"; together, the "Funds")

Each Fund is a series of an open-end management investment company known as
Evergreen Select Money Market Trust (the "Trust")

The Funds offer two classes of shares: Institutional and Institutional
Service. This Statement of Additional Information ("SAI") pertains to each class
of shares of the Funds. It is not a prospectus but should be read in conjunction
with the prospectuses dated July 1, 1999, as supplemented from time to time, for
the Fund in which you are making or contemplating an investment. You may obtain
a prospectus without charge by calling (800)-343-2898.

Certain information may be incorporated by reference to the Funds' Annual
Report dated February 28, 1999. You may obtain a copy of the Annual Report
without charge by calling (800)-343-2898.

TABLE OF CONTENTS

PART 1

TRUST HISTORY................................................................1-1
INVESTMENT POLICIES..........................................................1-1
OTHER SECURITIES AND PRACTICES...............................................1-3
PRINCIPAL HOLDERS OF FUND SHARES.............................................1-3
EXPENSES.....................................................................1-6
PERFORMANCE..................................................................1-8
SERVICE PROVIDERS............................................................1-9
FINANCIAL STATEMENTS........................................................1-10

PART 2

ADDITIONAL INFORMATION ON SECURITIES AND INVESTMENT PRACTICES................2-1
PURCHASE, REDEMPTION AND PRICING OF SHARES..................................2-14
SALES CHARGE WAIVERS AND REDUCTIONS.........................................2-16
PERFORMANCE CALCULATIONS....................................................2-19
PRINCIPAL UNDERWRITER.......................................................2-22
DISTRIBUTION EXPENSES UNDER RULE 12b-1 2-23
TAX INFORMATION.............................................................2-26
BROKERAGE...................................................................2-29
ORGANIZATION................................................................2-30
INVESTMENT ADVISORY AGREEMENT...............................................2-31
MANAGEMENT OF THE TRUST.....................................................2-33
CORPORATE AND MUNICIPAL BOND RATINGS........................................2-35
ADDITIONAL INFORMATION......................................................2-46

PART 1

TRUST HISTORY

The Evergreen Select Money Market Trust is an open-end management
investment company, which was organized as a Delaware business trust on
September 18, 1997. Each Fund is a diversified series of Evergreen Select Money
Market Trust. A copy of the Declaration of Trust is on file as an exhibit to the
Trust's Registration Statement, of which this SAI is a part. The foregoing is
qualified in its entirety by reference to the Declaration of Trust.

INVESTMENT POLICIES

FUNDAMENTAL INVESTMENT RESTRICTIONS

Each Fund has adopted the fundamental investment restrictions set forth
below which may not be changed without the vote of a majority of the Fund's
outstanding shares, as defined in the Investment Company Act of 1940 (the"1940
Act"). Where necessary, an explanation beneath a fundamental policy describes
the Fund's practices with respect to that policy, as allowed by current law. If
the law governing a policy changes, the Fund's practices may change accordingly
without a shareholder vote. Unless otherwise stated, all references to the
assets of the Fund are in terms of current market value.

1. Diversification

Each Fund may not make any investment that is inconsistent with its
classification as a diversified investment company under the 1940 Act.

Further Explanation of Diversification Policy:

To remain classified as a diversified investment company under the 1940
Act, each Fund must conform with the following: With respect to 75% of its total
assets, a diversified investment company may not invest more than 5% of its
total assets, determined at market or other fair value at the time of purchase,
in the securities of any one issuer, or invest in more than 10% of the
outstanding voting securities of any one issuer, determined at the time of
purchase. These limitations do not apply to investments in securities issued or
guaranteed by the United States (U.S.) government or its agencies or
instrumentalities.

2. Concentration

Each Fund may not concentrate its investments in the securities of
issuers primarily engaged in any particular industry (other than securities that
are issued or guaranteed by the U.S. government or its agencies or
instrumentalities).

Further Explanation of Concentration Policy:

Each Fund may not invest more than 25% of its total assets, taken at
market value, in the securities of issuers primarily engaged in any particular
industry (other than securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities).

3. Issuing Senior Securities

Except as permitted under the 1940 Act, each Fund may not issue senior
securities.

4. Borrowing

Each Fund may not borrow money, except to the extent permitted by
applicable law.

Further Explanation of Borrowing Policy:

Each Fund may borrow from banks and enter into reverse repurchase
agreements in an amount up to 33 1/3% of its total assets, taken at market
value. Each Fund may also borrow up to an additional 5% of its total assets from
banks or others. A Fund may borrow only as a temporary measure for extraordinary
or emergency purposes such as the redemption of Fund shares. A Fund may purchase
additional securities so long as borrowings do not exceed 5% of its total
assets. Each Fund may obtain such short-term credit as may be necessary for the
clearance of purchases and sales of portfolio securities. Each Fund may purchase
securities on margin and engage in short sales to the extent permitted by
applicable law.

5. Underwriting

Each Fund may not underwrite securities of other issuers, except
insofar as a Fund may be deemed to be an underwriter in connection with the
disposition of its portfolio securities.

6. Real Estate

Each Fund may not purchase or sell real estate, except that, to the
extent permitted by applicable law, a Fund may invest in (a) securities that are
directly or indirectly secured by real estate, or (b) securities issued by
issuers that invest in real estate.

7. Commodities

Each Fund may not purchase or sell commodities or contracts on
commodities, except to the extent that a Fund may engage in financial futures
contracts and related options and currency contracts and related options and may
otherwise do so in accordance with applicable law and without registering as a
commodity pool operator under the Commodity Exchange Act.

8. Lending

Each Fund may not make loans to other persons, except that a Fund may
lend its portfolio securities in accordance with applicable law. The acquisition
of investment securities or other investment instruments shall not be deemed to
be the making of a loan.

Further Explanation of Lending Policy:

To generate income and offset expenses, a Fund (except for 100%
Treasury Fund) may lend portfolio securities to broker-dealers and other
financial institutions in an amount up to 33 1/3% of its total assets, taken at
market value. While securities are on loan, the borrower will pay the Fund any
income accruing on the security. The Fund may invest any collateral it receives
in additional portfolio securities, such as U.S. Treasury notes, certificates of
deposit, other high-grade, short-term obligations or interest bearing cash
equivalents. Gains or losses in the market value of a security lent will affect
the Fund and its shareholders.

When a Fund lends its securities, it will require the borrower to give
the Fund collateral in cash or government securities. The Fund will require
collateral in an amount equal to at least 100% of the current market value of
the securities lent, including accrued interest. The Fund has the right to call
a loan and obtain the securities lent any time on notice of not more than five
business days. The Fund may pay reasonable fees in connection with such loans.

9. Investments in Federally Tax-Exempt Securities

Each Fund will, during periods of normal market conditions, invest its
assets in accordance with applicable guidelines issued by the Securities and
Exchange Commission ("SEC") or its staff concerning investment in tax-exempt
securities for funds with the words tax-exempt, tax free or municipal in their
names.

OTHER SECURITIES AND PRACTICES

Each Fund will invest in short-term securities that are determined to
present minimal credit risk and are, at the time of acquisition, eligible
securities pursuant to Rule 2a-7 under the 1940 Act, ("Rule 2a-7"). Short-term
securities are those having remaining maturities of 397 days or less. Each Fund
will also comply with the diversification requirements and other applicable
requirements prescribed by Rule 2a-7.

Listed below are securities and investment practices the funds may use
in addition to those discussed in the prospectus. See Additional Information on
Securities and Investment Practices in Part 2 of this SAI for further
information. The information applies below to all Funds unless otherwise noted.

U.S. Government Securities
When-Issued, Delayed-Delivery and Forward Commitment Transactions
Repurchase Agreements
Reverse Repurchase Agreements
Illiquid and Restricted Securities (Money Fund and Municipal Fund only)
Investment in Other Investment Companies
Short Sales
Municipal Bonds (Municipal Fund only)
Virgin Islands, Guam and Puerto Rico (Municipal Fund only)

PRINCIPAL HOLDERS OF FUND SHARES

As of June 1, 1999 the officers and Trustees of the Trust owned as a
group less than 1% of the outstanding shares of any class of each Fund.

Set forth below is information with respect to each person who, to each
Fund's knowledge, owned beneficially or of record more than 5% of the
outstanding shares of any class of each Fund as of June 1, 1999.

--------------------------------------------------------------------------
Money Fund
Institutional Class
--------------------------------------------------------------------------
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 54.10%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon St. 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
First Union Capital Markets Corp. 7.97%
Div of Wheat First Securities Inc.
Attn: Money Funds
8739 Research Dr.
Charlotte, NC 28288-0675
------------------------------------------------------------- ------------

<PAGE>

------------------------------------------------------------- ------------
Comcast Investment Holdings 6.28%
Attn: Rosemarie Teta
1201 Market Street
Suite 2201
Wilmington, DE 19801
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
Comcast Corporate Funding 5.97%
Attn: Rosemarie Teta
1201 Market Street
Suite 2201
Wilmington, DE 19801
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
ODO Inc. 5.46%
2100 S. Congress Avenue ACCM
Delray Beach, FL 33445
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
Byrd & Co. 5.31%
c/o First Union National Bank
Sweep Funds Processing PA 4905
530 Walnut Street
Philadelphia, PA 19101
------------------------------------------------------------- ------------
--------------------------------------------------------------------------
Money Fund
Institutional Service Class
--------------------------------------------------------------------------
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 40.00%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon St. 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
First Union National Capital Markets Corp. 20.15%
Div of Wheat First Securities, Inc.
Attn: Money Funds
8739 Research Drive
Charlotte, NC 28288-0675
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
BISYS Funds Services, Inc. 14.38%
FBO First Union Sweep Customers
Attn: Mike Bryan
3435 Stelzer Road
Columbus, OH 43219-6004
------------------------------------------------------------- ------------
--------------------------------------------------------------------------
Municipal Fund
Institutional Class
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 90.39%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
--------------------------------------------------------------------------
Municipal Fund
Institutional Service Class
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 42.74%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
Donaldson Lufkin Jenrette 13.44%
Securities Corporation, Inc.
P.O. Box 2052
Jersey City, NJ 07303-9998
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
First Union Capital Markets Corp. 10.29%
Division of Wheat First Securities, Inc.
Attn: Money Funds
8739 Research Drive
Charlotte, NC 28288-0675
------------------------------------------------------------- ------------
--------------------------------------------------------------------------
Treasury Fund
Institutional Class
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 59.66%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 37.76%
Attn: Ginny Batten
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
--------------------------------------------------------------------------
Treasury Fund
Institutional Service Class
--------------------------------------------------------------------------
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 53.36%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 27.69%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
------------------------------------------------------------- ------------
First Union Capital Markets Corp. 5.77%
Division of Wheat First Securities, Inc.
Attn: Money Funds
8739 Research Drive
Charlotte, NC 28288-0675
------------------------------------------------------------- ------------
--------------------------------------------------------------------------
100% Treasury Fund
Institutional Class
--------------------------------------------------------------------------
First Union National Bank Trust Accounts 86.44%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 6.61%
Division of Wheat First Securities, Inc.
Attn: Money Funds
8739 Research Drive
Charlotte, NC 28288-0675
------------------------------------------------------------- ------------
--------------------------------------------------------------------------
100% Treasury Fund
Institutional Service Class
------------------------------------------------------------- ------------
First Union National Bank Trust Accounts 96.80%
Attn: Ginny Batten CMG - 1151-2
401 S. Tryon Street, 3rd Floor
Charlotte, NC 28202-1911
------------------------------------------------------------- ------------

EXPENSES

Advisory Fees

Each Fund has its own investment advisor. (For more information, see
Investment Advisory Agreements in Part 2 of this SAI.)

Evergreen Investment Management (EIM), formerly the Capital Management
Group of First Union National Bank (FUNB), is the investment advisor to each of
the Funds. EIM is entitled to receive from each of the Funds an annual fee based
on a percent of the Fund's average net assets, as follows:

--------------------------------- ------------------
Money Fund 0.15%
--------------------------------- ------------------
--------------------------------- ------------------
Municipal Fund 0.15%
--------------------------------- ------------------
--------------------------------- ------------------
Treasury Fund 0.15%
--------------------------------- ------------------
--------------------------------- ------------------
100% Treasury Fund 0.25%
--------------------------------- ------------------

EIM has voluntarily agreed to reduce the investment advisory fee for
100% Treasury Fund by 0.10%.

Advisory Fees Paid

Below are the advisory fees paid by each Fund for the fiscal period
ended February 28, 1999, 1998 and 1997.

----------------------------- ---------------------- ---------------------
Fiscal Period/Fund Advisory Fee Waiver
----------------------------- ---------------------- ---------------------
--------------------------------------------------------------------------
Year Ended 1999
--------------------------------------------------------------------------
----------------------------- ---------------------- ---------------------
Money Fund $5,052,624 $360,561
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
Municipal Fund $1,113,470 $471,568
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
Treasury Fund $4,657,617 $597,104
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
100% Treasury Fund $1,134,410 $780,902
----------------------------- ---------------------- ---------------------
--------------------------------------------------------------------------
Year Ended 1998
--------------------------------------------------------------------------
----------------------------- ---------------------- ---------------------
Money Fund $2,502,328 $522,139
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
Municipal Fund $489,951 $515,003
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
Treasury Fund $2,181,556 $708,945
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
100% Treasury Fund(1) $111,904 $175,317
----------------------------- ---------------------- ---------------------
--------------------------------------------------------------------------
Period Ended 1997
--------------------------------------------------------------------------
----------------------------- ---------------------- ---------------------
Money Fund (2) $337,302 $0
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
Municipal Fund (3) $77,430 $0
----------------------------- ---------------------- ---------------------
----------------------------- ---------------------- ---------------------
Treasury Fund (3) $199,136 $0
----------------------------- ---------------------- ---------------------

1. Period from December 8, 1997 (commencement of operations) to
February 28, 1998.
2. Period from November 19, 1996 (commencement of operations) to
February 28, 1997.
3. Period from November 20, 1996 (commencement of operations) to
February 28, 1997.

<PAGE>

12b-1 Fees

Below are the 12b-1 service fees paid by the Institutional Service
shares of each Fund for the fiscal periods ended February 28, 1999 and 1998. The
Institutional shares do not pay 12b-1 fees. For more information, see
"Distribution Expenses Under Rule 12b-1" in Part 2 of this SAI.

----------------------------- ----------------------
Fund/Period Service Fee
----------------------------- ----------------------
----------------------------------------------------
Year Ended 1999
----------------------------------------------------
----------------------------- ----------------------
Money Fund $4,207,699
----------------------------- ----------------------
----------------------------- ----------------------
Municipal Fund $251,544
----------------------------- ----------------------
----------------------------- ----------------------
Treasury Fund $3,301,223
----------------------------- ----------------------
----------------------------- ----------------------
100% Treasury Fund $100,747
----------------------------- ----------------------
----------------------------------------------------
Year Ended 1998
----------------------------------------------------
----------------------------- ----------------------
Money Fund $2,025,350
----------------------------- ----------------------
----------------------------- ----------------------
Municipal Fund $62,315
----------------------------- ----------------------
----------------------------- ----------------------
Treasury Fund $1,467,114
----------------------------- ----------------------
----------------------------- ----------------------
100% Treasury Fund(1) $2,203
----------------------------- ----------------------
----------------------------------------------------
Year Ended 1997
----------------------------------------------------
----------------------------- ----------------------
Money Fund (2) $297,918
----------------------------- ----------------------
----------------------------- ----------------------
Municipal Fund $11,834
----------------------------- ----------------------
----------------------------- ----------------------
Treasury Fund $165,813
----------------------------- ----------------------

Trustee Compensation

Listed below is the Trustee compensation paid by the Trust individually
and by the Trust and the eight other trusts in the Evergreen Fund complex for
the fiscal period ended February 28, 1999. The Trustees do not receive pension
or retirement benefits from the Funds. For more information, see Management of
the Trust in Part 2 of this SAI.

------------------------------- ------------------------------ -----------------------------
Total Compensation from
Trust and Fund Complex Paid
Aggregate Compensation from to Trustees*
Trustee Trust
<S> <C> <C>
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Laurence B. Ashkin $10,876 $75,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Charles A. Austin, III $10,876 $75,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

K. Dun Gifford $10,523 $72,500
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

James S. Howell $14,476 $98,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Leroy Keith Jr. $10,523 $72,500
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Gerald M. McDonnell $10,876 $75,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Thomas L. McVerry $12,432 $86,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

William Walt Pettit $9,900 $67,500
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

David M. Richardson $10,523 $72,500
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Russell A. Salton, III $11,648 $78,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Michael S. Scofield $11,648 $78,000
------------------------------- ------------------------------ -----------------------------
------------------------------- ------------------------------ -----------------------------

Richard J. Shima $10,523 $72,500
------------------------------- ------------------------------ -----------------------------
</TABLE>

* Certain Trustees have elected to defer all or part of their
total compensation for the fiscal period ended February 28,
1999. The amounts listed below will be payable in later years
to the respective Trustees:

Austin $10,825
Howell $78,700
McDonnell $75,000
McVerry $86,000
Pettit $67,500
Salton $78,000
Scofield $5,500

PERFORMANCE
Total Return
Below are the annual total returns for each class of shares of the
Funds as of February 28, 1999. For more information, see "Total Return" under
Performance Calculations in Part 2 of this SAI.
<TABLE>
<CAPTION>

- --------------------------- ----------------- --------------------- --------------------
Class
Fund/Class One Year Since Inception Inception Date
<S> <C> <C> <C>
- --------------------------- ----------------- --------------------- --------------------
- ----------------------------------------------------------------------------------------
Money Fund
- ----------------------------------------------------------------------------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional 5.53% 5.63% 11/19/96
- --------------------------- ----------------- --------------------- --------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional Service 5.27% 5.37% 11/26/96
- --------------------------- ----------------- --------------------- --------------------
- ----------------------------------------------------------------------------------------
Municipal Fund
- ----------------------------------------------------------------------------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional 3.52% 3.59% 11/20/96
- --------------------------- ----------------- --------------------- --------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional Service 3.27% 3.33% 11/25/96
- --------------------------- ----------------- --------------------- --------------------
- ----------------------------------------------------------------------------------------
Treasury Fund
- ----------------------------------------------------------------------------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional 5.24% 5.39% 11/20/96
- --------------------------- ----------------- --------------------- --------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional Service 4.97% 5.13% 11/27/96
- --------------------------- ----------------- --------------------- --------------------
- ----------------------------------------------------------------------------------------
100% Treasury Fund
- ----------------------------------------------------------------------------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional 4.88% 4.96% 12/8/97
- --------------------------- ----------------- --------------------- --------------------
- --------------------------- ----------------- --------------------- --------------------
Institutional Service 4.62% 4.69% 12/23/97
- --------------------------- ----------------- --------------------- --------------------
</TABLE>

<PAGE>

Current Yield

Below are the current and effective yields for each class of shares of
the Funds for the 7-day period ended February 28, 1999. For more information,
see "7-Day Current and Effective Yield" under Performance Calculation in Part 2
of this SAI.

- --------------------------- ------------------------ ------------------------
Fund Current Yield Effective Yield
- --------------------------- ------------------------ ------------------------
- -----------------------------------------------------------------------------
Money Fund
- -----------------------------------------------------------------------------
- --------------------------- ------------------------ ------------------------
Institutional 5.02% 5.15%
- --------------------------- ------------------------ ------------------------
- --------------------------- ------------------------ ------------------------
Institutional Service 4.77% 4.88%
- --------------------------- ------------------------ ------------------------
- -----------------------------------------------------------------------------
Municipal Fund
- -----------------------------------------------------------------------------
- --------------------------- ------------------------ ------------------------
Institutional 3.00% 3.05%
- --------------------------- ------------------------ ------------------------
- --------------------------- ------------------------ ------------------------
Institutional Service 2.75% 2.79%
- --------------------------- ------------------------ ------------------------
- -----------------------------------------------------------------------------
Treasury Fund
- -----------------------------------------------------------------------------
- --------------------------- ------------------------ ------------------------
Institutional 4.65% 4.75%
- --------------------------- ------------------------ ------------------------
- --------------------------- ------------------------ ------------------------
Institutional Service 4.40% 4.49%
- --------------------------- ------------------------ ------------------------
- -----------------------------------------------------------------------------
100% Treasury Fund
- -----------------------------------------------------------------------------
- --------------------------- ------------------------ ------------------------
Institutional 4.48% 4.58%
- --------------------------- ------------------------ ------------------------
- --------------------------- ------------------------ ------------------------
Institutional Service 4.23% 4.32%
- --------------------------- ------------------------ ------------------------

Below are the tax equivalent yields for each class of shares of the
Municipal Fund for the 7-day period ended February 28, 1999. The maximum federal
tax rate of 39.6% is assumed. For more information, see "Tax Equivalent Yield"
under Performance Calculations in Part 2 of this SAI.

- --------------------------------------- ==============================
Tax Equivalent Yield
- --------------------------------------- ==============================
======================================================================
Municipal Fund
======================================================================
- --------------------------------------- ==============================
Institutional 4.97%
- --------------------------------------- ==============================
- --------------------------------------- ==============================
Institutional Service 4.55%
- --------------------------------------- ==============================

SERVICE PROVIDERS
Administrator

Evergreen Investment Services, Inc. ("EIS") serves as administrator to
each of the Funds, subject to the supervision and control of the Trust's Board
of Trustees. EIS provides the Funds with facilities, equipment and personnel and
is entitled to receive a fee from the Fund based on the total assets of all
mutual funds for which EIS serves as administrator and a First Union Corporation
subsidiary serves as advisor. The fee paid to EIS is calculated in accordance
with the following schedule:

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

Assets Fee
---------------------- -----------------
---------------------- -----------------
first $7 billion 0.050%
---------------------- -----------------
---------------------- -----------------
next $3 billion 0.035%
---------------------- -----------------
---------------------- -----------------
next $5 billion 0.030%
---------------------- -----------------
---------------------- -----------------
next $10 billion 0.020%
---------------------- -----------------
---------------------- -----------------
next $5 billion 0.015%
---------------------- -----------------
---------------------- -----------------
over $30 billion 0.010%
---------------------- -----------------
Transfer Agent

Evergreen Service Company ("ESC"), a subsidiary of First Union
Corporation, is the Funds' transfer agent. ESC issues and redeems shares, pays
dividends and performs other duties in connection with the maintenance of
shareholder accounts. The transfer agent's address is P.O. Box 2121, Boston,
Massachusetts 02106-2121. The Fund pays ESC annual fees as follows:

----------------------------- -------------------- -------------------------
Annual Fee Per Annual Fee Per Closed
Fund Type Open Account* Account**
----------------------------- -------------------- -------------------------
----------------------------- -------------------- -------------------------
Monthly Dividend Funds $25.50 $9.00
----------------------------- -------------------- -------------------------
----------------------------- -------------------- -------------------------
Quarterly Dividend Funds $24.50 $9.00
----------------------------- -------------------- -------------------------
----------------------------- -------------------- -------------------------
Semiannual Dividend Funds $23.50 $9.00
----------------------------- -------------------- -------------------------
----------------------------- -------------------- -------------------------
Annual Dividend Funds $23.50 $9.00
----------------------------- -------------------- -------------------------
----------------------------- -------------------- -------------------------
Money Market Funds $25.50 $9.00
----------------------------- -------------------- -------------------------

*For shareholder accounts only. The Fund pays ESC cost plus 15% for
broker accounts.
** Closed accounts are maintained on the system in order to facilitate
historical and tax information.

Distributor

Evergreen Distributor, Inc. (the "Distributor") markets the Funds
through broker-dealers and other financial representatives. The Distributor's
address is 125 W. 55th Street, New York, NY 10019.

Independent Auditors

KPMG LLP, 99 High Street, Boston, Massachusetts 02110, audits each
Fund's financial statements.

Custodian

State Street Bank and Trust Company keeps custody of each Fund's
securities and cash and performs other related duties. The custodian's address
is 225 Franklin Street, Boston, Massachusetts 02110.

Legal Counsel

Sullivan & Worcester LLP provides legal advice to the Funds. Its
address is 1025 Connecticut Avenue, N.W., Washington, D.C. 20036.

FINANCIAL STATEMENTS

The financial statements for the Funds have been audited by
PricewaterhouseCoopers LLP, independent accountants. A report of
PricewaterhouseCoopers LLP on the financial statements for the Funds appears in
the Funds' Annual Report which is incorporated by reference. Annual Reports may
be obtained without charge by writing to ESC, P.O. Box 2121, Boston,
Massachusetts 02106-2121, or by calling ESC toll-free at 1-800-343-2898.

<PAGE>

EVERGREEN FUNDS
Statement of Additional Information ("SAI")

PART 2

ADDITIONAL INFORMATION ON SECURITIES
AND INVESTMENT PRACTICES

The prospectus describes the Fund's investment objective and the
securities in which it primarily invests. The following describes other
securities the Fund may purchase and investment strategies it may use. Some of
the information below will not apply to the Fund in which you are interested.
See the list under Other Securities and Practices in Part 1 of this SAI to
determine which of the sections below are applicable.

Defensive Investments

The Fund may invest up to 100% of its assets in high quality money
market instruments, such as notes, certificates of deposit, commercial paper,
banker's acceptances, bank deposits or U.S. government securities if, in the
opinion of the advisor, market conditions warrant a temporary defensive
investment strategy. Evergreen Equity Income Fund may also invest in debt
securities and high grade preferred stocks for defensive purposes when its
investment advisor determines a temporary defensive strategy is warranted.

U.S. Government Securities

The Fund may invest in securities issued or guaranteed by U.S.
Government agencies or instrumentalities.

These securities are backed by (1) the discretionary authority of the
U.S. Government to purchase certain obligations of agencies or instrumentalities
or (2) the credit of the agency or instrumentality issuing the obligations.

Some government agencies and instrumentalities may not receive
financial support from the U.S. Government. Examples of such agencies are:

(i) Farm Credit System, including the National Bank for Cooperatives,
Farm Credit Banks and Banks for Cooperatives;

(ii) Farmers Home Administration;

(iii) Federal Home Loan Banks;

(iv) Federal Home Loan Mortgage Corporation;

(v) Federal National Mortgage Association; and

(vi) Student Loan Marketing Association.

Securities Issued by the Government National Mortgage Association ("GNMA")

The Fund may invest in securities issued by the GNMA, a corporation
wholly-owned by the U.S. Government. GNMA securities or "certificates" represent
ownership in a pool of underlying mortgages. The timely payment of principal and
interest due on these securities is guaranteed.

Unlike conventional bonds, the principal on GNMA certificates is not
paid at maturity but over the life of the security in scheduled monthly
payments. While mortgages pooled in a GNMA certificate may have maturities of up
to 30 years, the certificate itself will have a shorter average maturity and
less principal volatility than a comparable 30-year bond.

The market value and interest yield of GNMA certificates can vary due
not only to market fluctuations, but also to early prepayments of mortgages
within the pool. Since prepayment rates vary widely, it is impossible to
accurately predict the average maturity of a GNMA pool. In addition to the
guaranteed principal payments, GNMA certificates may also make unscheduled
principal payments resulting from prepayments on the underlying mortgages.

Although GNMA certificates may offer yields higher than those available
from other types of U.S. Government securities, they may be less effective as a
means of locking in attractive long-term rates because of the prepayment
feature. For instance, when interest rates decline, prepayments are likely to
increase as the holders of the underlying mortgages seek refinancing. As a
result, the value of a GNMA certificate is not likely to rise as much as the
value of a comparable debt security would in response to same decline. In
addition, these prepayments can cause the price of a GNMA certificate originally
purchased at a premium to decline in price compared to its par value, which may
result in a loss.

When-Issued, Delayed-Delivery and Forward Commitment Transactions

The Fund may purchase securities on a when-issued or delayed delivery
basis and may purchase or sell securities on a forward commitment basis.
Settlement of such transactions normally occurs within a month or more after the
purchase or sale commitment is made.

The Fund may purchase securities under such conditions only with the
intention of actually acquiring them, but may enter into a separate agreement to
sell the securities before the settlement date. Since the value of securities
purchased may fluctuate prior to settlement, the Fund may be required to pay
more at settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued,
delayed delivery or forward commitment basis the Fund will hold liquid assets
worth at least the equivalent of the amount due. The liquid assets will be
monitored on a daily basis and adjusted as necessary to maintain the necessary
value.

Purchases made under such conditions may involve the risk that yields
secured at the time of commitment may be lower than otherwise available by the
time settlement takes place, causing an unrealized loss to the Fund. In
addition, when the Fund engages in such purchases, it relies on the other party
to consummate the sale. If the other party fails to perform its obligations, the
Fund may miss the opportunity to obtain a security at a favorable price or
yield.

Repurchase Agreements

The Fund may enter into repurchase agreements with entities that are
registered as U.S. Government securities dealers, including member banks of the
Federal Reserve System having at least $1 billion in assets, primary dealers in
U.S. government securities or other financial institutions believed by the
investment advisor to be creditworthy. In a repurchase agreement the Fund
obtains a security and simultaneously commits to return the security to the
seller at a set price (including principal and interest) within period of time
usually not exceeding seven days. The resale price reflects the purchase price
plus an agreed upon market rate of interest which is unrelated to the coupon
rate or maturity of the underlying security. A repurchase agreement involves the
obligation of the seller to pay the agreed upon price, which obligation is in
effect secured by the value of the underlying security.

The Fund's custodian or a third party will take possession of the
securities subject to repurchase agreements, and these securities will be marked
to market daily. To the extent that the original seller does not repurchase the
securities from the Fund, the Fund could receive less than the repurchase price
on any sale of such securities. In the event that such a defaulting seller filed
for bankruptcy or became insolvent, disposition of such securities by the Fund
might be delayed pending court action. The Fund's investment advisor believes
that under the regular procedures normally in effect for custody of the Fund's
portfolio securities subject to repurchase agreements, a court of competent
jurisdiction would rule in favor of the Fund and allow retention or disposition
of such securities. The Fund will only enter into repurchase agreements with
banks and other recognized financial institutions, such as broker-dealers, which
are deemed by the investment advisor to be creditworthy pursuant to guidelines
established by the Board of Trustees.

Reverse Repurchase Agreements

As described herein, the Fund may also enter into reverse repurchase
agreements. These transactions are similar to borrowing cash. In a reverse
repurchase agreement, the Fund transfers possession of a portfolio instrument to
another person, such as a financial institution, broker, or dealer, in return
for a percentage of the instrument's market value in cash, and agrees that on a
stipulated date in the future the Fund will repurchase the portfolio instrument
by remitting the original consideration plus interest at an agreed upon rate.

The use of reverse repurchase agreements may enable the Fund to avoid
selling portfolio instruments at a time when a sale may be deemed to be
disadvantageous, but the ability to enter into reverse repurchase agreements
does not ensure that the Fund will be able to avoid selling portfolio
instruments at a disadvantageous time.

When effecting reverse repurchase agreements, liquid assets of the
Fund, in a dollar amount sufficient to make payment for the obligations to be
purchased, are segregated at the trade date. These securities are marked to
market daily and maintained until the transaction is settled.

Options

An option is a right to buy or sell a security for a specified price
within a limited time period. The option buyer pays the option seller (known as
the "writer") for the right to buy, which is a "call" option, or the right to
sell, which is a "put" option. Unless the option is terminated, the option
seller must then buy or sell the security at the agreed-upon price when asked to
do so by the option buyer.

The Fund may buy or sell put and call options on securities it holds or
intends to acquire, and may purchase put and call options for the purpose of
offsetting previously written put and call options of the same series. The Fund
may also buy and sell options on financial futures contracts. The Fund will use
options as a hedge against decreases or increases in the value of securities it
holds or intends to acquire.

The Fund may write only covered options. With regard to a call option,
this means that the Fund will own, for the life of the option, the securities
subject to the call option. The Fund will cover put options by holding, in a
segregated account, liquid assets having a value equal to or greater than the
price of securities subject to the put option. If the Fund is unable to effect a
closing purchase transaction with respect to the covered options it has sold, it
will not be able to sell the underlying securities or dispose of assets held in
a segregated account until the options expire or are exercised, resulting in a
potential loss of value to the Fund.

Futures Transactions

The Fund may enter into financial futures contracts and write options
on such contracts. The Fund intends to enter into such contracts and related
options for hedging purposes. The Fund will enter into futures on securities or
index-based futures contracts in order to hedge against changes in interest or
exchange rates or securities prices. A futures contract on securities is an
agreement to buy or sell securities at a specified price during a designated
month. A futures contract on a securities index does not involve the actual
delivery of securities, but merely requires the payment of a cash settlement
based on changes in the securities index. The Fund does not make payment or
deliver securities upon entering into a futures contract. Instead, it puts down
a margin deposit, which is adjusted to reflect changes in the value of the
contract and which continues until the contract is terminated.

The Fund may sell or purchase futures contracts. When a futures
contract is sold by the Fund, the value of the contract will tend to rise when
the value of the underlying securities declines and to fall when the value of
such securities increases. Thus, the Fund sells futures contracts in order to
offset a possible decline in the value of its securities. If a futures contract
is purchased by the Fund, the value of the contract will tend to rise when the
value of the underlying securities increases and to fall when the value of such
securities declines. The Fund intends to purchase futures contracts in order to
establish what is believed by the investment advisor to be a favorable price or
rate of return for securities the Fund intends to purchase.

The Fund also intends to purchase put and call options on futures
contracts for hedging purposes. A put option purchased by the Fund would give it
the right to assume a position as the seller of a futures contract. A call
option purchased by the Fund would give it the right to assume a position as the
purchaser of a futures contract. The purchase of an option on a futures contract
requires the Fund to pay a premium. In exchange for the premium, the Fund
becomes entitled to exercise the benefits, if any, provided by the futures
contract, but is not required to take any action under the contract. If the
option cannot be exercised profitably before it expires, the Fund's loss will be
limited to the amount of the premium and any transaction costs.

The Fund may enter into closing purchase and sale transactions in order
to terminate a futures contract and may sell put and call options for the
purpose of closing out its options positions. The Fund's ability to enter into
closing transactions depends on the development and maintenance of a liquid
secondary market. There is no assurance that a liquid secondary market will
exist for any particular contract or at any particular time. As a result, there
can be no assurance that the Fund will be able to enter into an offsetting
transaction with respect to a particular contract at a particular time. If the
Fund is not able to enter into an offsetting transaction, the Fund will continue
to be required to maintain the margin deposits on the contract and to complete
the contract according to its terms, in which case it would continue to bear
market risk on the transaction.

Although futures and options transactions are intended to enable the
Fund to manage market, interest rate or exchange rate risk, unanticipated
changes in interest rates or market prices could result in poorer performance
than if it had not entered into these transactions. Even if the investment
advisor correctly predicts interest rate movements, a hedge could be
unsuccessful if changes in the value of the Fund's futures position did not
correspond to changes in the value of its investments. This lack of correlation
between the Fund's futures and securities positions may be caused by differences
between the futures and securities markets or by differences between the
securities underlying the Fund's futures position and the securities held by or
to be purchased for the Fund. The Fund's investment advisor will attempt to
minimize these risks through careful selection and monitoring of the Fund's
futures and options positions.

The Fund does not intend to use futures transactions for speculation or
leverage. The Fund has the ability to write options on futures, but currently
intends to write such options only to close out options purchased by the Fund.
The Fund will not change these policies without supplementing the information in
the prospectus and SAI.

The Fund will not maintain open positions in futures contracts it has
sold or call options it has written on futures contracts if, in the aggregate,
the value of the open positions (marked to market) exceeds the current market
value of its securities portfolio plus or minus the unrealized gain or loss on
those open positions, adjusted for the correlation of volatility between the
hedged securities and the futures contracts. If this limitation is exceeded at
any time, the Fund will take prompt action to close out a sufficient number of
open contracts to bring its open futures and options positions within this
limitation.

"Margin" in Futures Transactions

Unlike the purchase or sale of a security, the Fund does not pay or
receive money upon the purchase or sale of a futures contract. Rather the Fund
is required to deposit an amount of "initial margin" in cash or U.S. Treasury
bills with its custodian (or the broker, if legally permitted). The nature of
initial margin in futures transactions is different from that of margin in
securities transactions in that futures contract initial margin does not involve
the borrowing of funds by the Fund to finance the transactions. Initial margin
is in the nature of a performance bond or good faith deposit on the contract
which is returned to the Fund upon termination of the futures contract, assuming
all contractual obligations have been satisfied.

A futures contract held by the Fund is valued daily at the official
settlement price of the exchange on which it is traded. Each day the Fund pays
or receives cash, called "variation margin," equal to the daily change in value
of the futures contract. This process is known as "marking to market". Variation
margin does not represent a borrowing or loan by the Fund but is instead
settlement between the Fund and the broker of the amount one would owe the other
if the futures contract expired. In computing its daily net asset value the Fund
will mark-to-market its open futures positions. The Fund is also required to
deposit and maintain margin when it writes call options on futures contracts.

Foreign Securities

The Fund may invest in foreign securities or U.S. securities traded in
foreign markets. In addition to securities issued by foreign companies,
permissible investments may also consist of obligations of foreign branches of
U.S. banks and of foreign banks, including European certificates of deposit,
European time deposits, Canadian time deposits and Yankee certificates of
deposit. The Fund may also invest in Canadian commercial paper and Europaper.
These instruments may subject the Fund to investment risks that differ in some
respects from those related to investments in obligations of U.S. issuers. Such
risks include the possibility of adverse political and economic developments;
imposition of withholding taxes on interest or other income; seizure,
nationalization, or expropriation of foreign deposits; establishment of exchange
controls or taxation at the source; greater fluctuations in value due to changes
in exchange rates, or the adoption of other foreign governmental restrictions
which might adversely affect the payment of principal and interest on such
obligations. Such investments may also entail higher custodial fees and sales
commissions than domestic investments. Foreign issuers of securities or
obligations are often subject to accounting treatment and engage in business
practices different from those respecting domestic issuers of similar securities
or obligations. Foreign branches of U.S. banks and foreign banks may be subject
to less stringent reserve requirements than those applicable to domestic
branches of U.S. banks.

Foreign Currency Transactions

As one way of managing exchange rate risk, the Fund may enter into
forward currency exchange contracts (agreements to purchase or sell currencies
at a specified price and date). The exchange rate for the transaction (the
amount of currency the Fund will deliver and receive when the contract is
completed) is fixed when the Fund enters into the contract. The Fund usually
will enter into these contracts to stabilize the U.S. dollar value of a security
it has agreed to buy or sell. The Fund intends to use these contracts to hedge
the U.S. dollar value of a security it already owns, particularly if the Fund
expects a decrease in the value of the currency in which the foreign security is
denominated. Although the Fund will attempt to benefit from using forward
contracts, the success of its hedging strategy will depend on the investment
advisor's ability to predict accurately the future exchange rates between
foreign currencies and the U.S. dollar. The value of the Fund's investments
denominated in foreign currencies will depend on the relative strengths of those
currencies and the U.S. dollar, and the Fund may be affected favorably or
unfavorably by changes in the exchange rates or exchange control regulations
between foreign currencies and the U.S. dollar. Changes in foreign currency
exchange rates also may affect the value of dividends and interest earned, gains
and losses realized on the sale of securities and net investment income and
gains, if any, to be distributed to shareholders by the Fund. The Fund may also
purchase and sell options related to foreign currencies in connection with
hedging strategies.

High Yield, High Risk Bonds

The Fund may invest a portion of its assets in lower rated bonds. Bonds
rated below BBB by Standard & Poor's Ratings Services ("S&P") or Fitch IBCA,
Inc. ("Fitch") or below Baa by Moody's Investors Service, Inc. ("Moody's"),
commonly known as "junk bonds," offer high yields, but also high risk. While
investment in junk bonds provides opportunities to maximize return over time,
they are considered predominantly speculative with respect to the ability of the
issuer to meet principal and interest payments. Investors should be aware of the
following risks:

(1) The lower ratings of junk bonds reflect a greater possibility that
adverse changes in the financial condition of the issuer or in general economic
conditions, or both, or an unanticipated rise in interest rates may impair the
ability of the issuer to make payments of interest and principal, especially if
the issuer is highly leveraged. Such issuer's ability to meet its debt
obligations may also be adversely affected by the issuer's inability to meet
specific forecasts or the unavailability of additional financing. Also, an
economic downturn or an increase in interest rates may increase the potential
for default by the issuers of these securities.

(2) The value of junk bonds may be more susceptible to real or
perceived adverse economic or political events than is the case for higher
quality bonds.

(3) The value of junk bonds, like those of other fixed income
securities, fluctuates in response to changes in interest rates, generally
rising when interest rates decline and falling when interest rates rise. For
example, if interest rates increase after a fixed income security is purchased,
the security, if sold prior to maturity, may return less than its cost. The
prices of junk bonds, however, are generally less sensitive to interest rate
changes than the prices of higher-rated bonds, but are more sensitive to news
about an issuer or the economy which is, or investors perceive as, negative.

(4) The secondary market for junk bonds may be less liquid at certain
times than the secondary market for higher quality bonds, which may adversely
effect (a) the bond's market price, (b) the Fund's ability to sell the bond and
the Fund's ability to obtain accurate market quotations for purposes of valuing
its assets.

For bond ratings descriptions, see "Corporate and Municipal Bond
Ratings" below.

Illiquid and Restricted Securities

The Fund may not invest more than 15% of its net assets in securities
that are illiquid. A security is illiquid when the Fund cannot dispose of it in
the ordinary course of business within seven days at approximately the value at
which the Fund has the investment on its books.

The Fund may invest in "restricted" securities, i.e., securities
subject to restrictions on resale under federal securities laws. Rule 144A under
the Securities Act of 1933 ("Rule 144A") allows certain restricted securities to
trade freely among qualified institutional investors. Since Rule 144A securities
may have limited markets, the Board of Trustees will determine whether such
securities should be considered illiquid for the purpose of determining the
Fund's compliance with the limit on illiquid securities indicated above. In
determine the liquidity of Rule 144A securities, the Trustees will consider: (1)
the frequency of trades and quotes for the security; (2) the number of dealers
willing to purchase or sell the security and the number of other potential
buyers; (3) dealer undertakings to make a market in the security; and (4) the
nature of the security and the nature of the marketplace trades.

Investment in Other Investment Companies

The Fund may purchase the shares of other investment companies to the
extent permitted under the 1940 Act. Currently, the Fund may not (1) own more
than 3% of the outstanding voting stocks of another investment company, (2)
invest more than 5% of its assets in any single investment company, and (3)
invest more than 10% of its assets in investment companies. However, the Fund
may invest all of its investable assets in securities of a single open-end
management investment company with substantially the same fundamental investment
objectives, policies and limitations as the Fund. Investing in other investment
companies may expose a Fund to duplicate expenses and lower it value.

Short Sales

A short sale is the sale of a security the Fund has borrowed. The Fund
expects to profit from a short sale by selling the borrowed security for more
than the cost of buying it to repay the lender. After a short sale is completed,
the value of the security sold short may rise. If that happens, the cost of
buying it to repay the lender may exceed the amount originally received for the
sale by the Fund.

The Fund may engage in short sales, but it may not make short sales of
securities or maintain a short position unless, at all times when a short
position is open, it owns an equal amount of such securities or of securities
which, without payment of any further consideration, are convertible into or
exchangeable for securities of the same issue as, and equal in amount to, the
securities sold short. The Fund may effect a short sale in connection with an
underwriting in which the Fund is a participant.

Municipal Bonds

The Fund may invest in municipal bonds of any state, territory or
possession of the United States ("U.S."), including the District of Columbia.
The Fund may also invest in municipal bonds of any political subdivision, agency
or instrumentality (e.g., counties, cities, towns, villages, districts,
authorities) of the U.S. or its possessions. Municipal bonds are debt
instruments issued by or for a state or local government to support its general
financial needs or to pay for special projects such as airports, bridges,
highways, public transit, schools, hospitals, housing and water and sewer works.
Municipal bonds may also may be issued to refinance public debt.

Municipal bonds are mainly divided between "general obligation" and
"revenue" bonds. General obligation bonds are backed by the full faith and
credit of governmental issuers with the power to tax. They are repaid from the
issuer's general revenues. Payment, however, may be dependent upon legislative
approval and may be subject to limitations on the issuer's taxing power.
Enforcement of payments due under general obligation bonds varies according to
the law applicable to the issuer. In contrast, revenue bonds are supported only
by the revenues generated by the project or facility.

The Fund may also invest in industrial development bonds. Such bonds
are usually revenue bonds issued to pay for facilities with a public purpose
operated by private corporations. The credit quality of industrial development
bonds is usually directly related to the credit standing of the owner or user of
the facilities. To qualify as a municipal bond, the interest paid on an
industrial development bond must qualify as fully exempt from federal income
tax. However, the interest paid on an industrial development bond may be subject
to the federal alternative minimum tax.

The yields on municipal bonds depend on such factors as market
conditions, the financial condition of the issuer and the issue's size, maturity
date and rating. Municipal bonds are rated by S&P, Moody's and Fitch. Such
ratings, however, are opinions, not absolute standards of quality. Municipal
bonds with the same maturity, interest rates and rating may have different
yields, while municipal bonds with the same maturity and interest rate, but
different ratings, may have the same yield. Once purchased by the Fund, a
municipal bond may cease to be rated or receive a new rating below the minimum
required for purchase by the Fund. Neither event would require the Fund to sell
the bond, but the Fund's investment advisor would consider such events in
determining whether the Fund should continue to hold it.

The ability of the Fund to achieve its investment objective depends
upon the continuing ability of issuers of municipal bonds to pay interest and
principal when due. Municipal bonds are subject to the provisions of bankruptcy,
insolvency and other laws affecting the rights and remedies of creditors. Such
laws extend the time for payment of principal and/or interest, and may otherwise
restrict the Fund's ability to enforce its rights in the event of default. Since
there is generally less information available on the financial condition of
municipal bond issuers compared to other domestic issuers of securities, the
Fund's investment advisor may lack sufficient knowledge of an issue's
weaknesses. Other influences, such as litigation, may also materially affect the
ability of an issuer to pay principal and interest when due. In addition, the
market for municipal bonds is often thin and can be temporarily affected by
large purchases and sales, including those by the Fund.

From time to time, Congress has considered restricting or eliminating
the federal income tax exemption for interest on municipal bonds. Such actions
could materially affect the availability of municipal bonds and the value of
those already owned by the Fund. If such legislation were passed, the Trust's
Board of Trustees may recommend changes in the Fund's investment objectives and
policies or dissolution of the Fund.

Virgin Islands, Guam and Puerto Rico

The Fund may invest in obligations of the governments of the Virgin
Islands, Guam and Puerto Rico to the extent such obligations are exempt from the
income or intangibles taxes, as applicable, of the state for which the Fund is
named. The Fund does not presently intend to invest more than (a) 10% of its net
assets in the obligations of each of the Virgin Islands and Guam or (b) 25% of
its net assets in the obligations of Puerto Rico. Accordingly, the Fund may be
adversely affected by local political and economic conditions and developments
within the Virgin Islands, Guam and Puerto Rico affecting the issuers of such
obligations.

Master Demand Notes

The Fund may invest in master demand notes. These are unsecured obligations that
permit the investment of fluctuating amounts by the Fund at varying rates of
interest pursuant to direct arrangements between the Fund, as lender, and the
issuer, as borrower. Master demand notes may permit daily fluctuations in the
interest rate and daily changes in the amounts borrowed. The Fund has the right
to increase the amount under the note at any time up to the full amount provided
by the note agreement, or to decrease the amount. The borrower may repay up to
the full amount of the note without penalty. Master demand notes permit the Fund
to demand payment of principal and accrued interest at any time (on not more
than seven days' notice). Notes acquired by the Fund may have maturities of more
than one year, provided that (1) the Fund is entitled to payment of principal
and accrued interest upon not more than seven days' notice, and (2) the rate of
interest on such notes is adjusted automatically at periodic intervals, which
normally will not exceed 31 days, but may extend up to one year. The notes are
deemed to have a maturity equal to the longer of the period remaining to the
next interest rate adjustment or the demand notice period. Because these types
of notes are direct lending arrangements between the lender and borrower, such
instruments are not normally traded and there is no secondary market for these
notes, although they are redeemable and thus repayable by the borrower at face
value plus accrued interest at any time. Accordingly, the Fund's right to redeem
is dependent on the ability of the borrower to pay principal and interest on
demand. In connection with master demand note arrangements, the Fund`s
investment advisor considers, under standards established by the Board of
Trustees, earning power, cash flow and other liquidity ratios of the borrower
and will monitor the ability of the borrower to pay principal and interest on
demand. These notes are not typically rated by credit rating agencies. Unless
rated, the Fund may invest in them only if at the time of an investment the
issuer meets the criteria established for commercial paper discussed in this
statement of additional information (which limits such investments to commercial
paper rated A-1 by S&P, Prime-1 by Moody's or F-1 by Fitch.

Brady Bonds

The Fund may also invest in Brady Bonds. Brady Bonds are created
through the exchange of existing commercial bank loans to foreign entities for
new obligations in connection with debt restructurings under a plan introduced
by former U.S. Secretary of the Treasury, Nicholas F. Brady (the "Brady Plan").
Brady Bonds have been issued only recently, and, accordingly, do not have a long
payment history. They may be collateralized or uncollateralized and issued in
various currencies (although most are U.S. dollar-denominated) and they are
actively traded in the over-the-counter secondary market.

U.S. dollar-denominated, collateralized Brady Bonds, which may be
fixed-rate par bonds or floating rate discount bonds, are generally
collateralized in full as to principal due at maturity by U.S. Treasury zero
coupon obligations that have the same maturity as the Brady Bonds. Interest
payments on these Brady Bonds generally are collateralized by cash or securities
in an amount that, in the case of fixed rate bonds, is equal to at least one
year of rolling interest payments based on the applicable interest rate at that
time and is adjusted at regular intervals thereafter. Certain Brady Bonds are
entitled to "value recovery payments" in certain circumstances, which in effect
constitute supplemental interest payments, but generally are not collateralized.
Brady Bonds are often viewed as having up to four valuation components: (1)
collateralized repayment of principal at final maturity, (2) collateralized
interest payments, (3) uncollateralized interest payments, and (4) any
uncollateralized repayment of principal at maturity (these uncollateralized
amounts constitute the "residual risk"). In the event of a default with respect
to collateralized Brady Bonds as a result of which the payment obligations of
the issuer are accelerated, the U.S. Treasury zero coupon obligations held as
collateral for the payment of principal will not be distributed to investors,
nor will such obligations be sold and the proceeds distributed. The collateral
will be held by the collateral agent to the scheduled maturity of the defaulted
Brady Bonds, which will continue to be outstanding, at which time the face
amount of the collateral will equal the principal payments that would have then
been due on the Brady Bonds in the normal course. In addition, in light of the
residual risk of Brady Bonds and, among other factors, the history of defaults
with respect to commercial bank loans by public and private entities of
countries issuing Brady Bonds, investments in Brady Bonds are to be viewed as
speculative.

Obligations of Foreign Branches of United States Banks

The Fund may invest in obligations of foreign branches of U.S. banks.
These may be general obligations of the parent bank in addition to the issuing
branch, or may be limited by the terms of a specific obligation and by
government regulation. Payment of interest and principal upon these obligations
may also be affected by governmental action in the country of domicile of the
branch (generally referred to as sovereign risk). In addition, evidences of
ownership of such securities may be held outside the U.S. and the Fund may be
subject to the risks associated with the holding of such property overseas.
Examples of governmental actions would be the imposition of currency controls,
interest limitations, withholding taxes, seizure of assets or the declaration of
a moratorium. Various provisions of federal law governing domestic branches do
not apply to foreign branches of domestic banks.

Obligations of United States Branches of Foreign Banks

The Fund may invest in obligations of U.S. branches of foreign banks.
These may be general obligations of the parent bank in addition to the issuing
branch, or may be limited by the terms of a specific obligation and by federal
and state regulation as well as by governmental action in the country in which
the foreign bank has its head office. In addition, there may be less publicly
available information about a U.S. branch of a foreign bank than about a
domestic bank.

Payment-in-kind Securities

The Fund may invest in payment-in-kind ("PIK") securities. PIKs pay
interest in either cash or additional securities, at the issuer's option, for a
specified period. The issuer's option to pay in additional securities typically
ranges from one to six years, compared to an average maturity for all PIK
securities of eleven years. Call protection and sinking fund features are
comparable to those offered on traditional debt issues.

PIKs, like zero coupon bonds, are designed to give an issuer
flexibility in managing cash flow. Several PIKs are senior debt. In other cases,
where PIKs are subordinated, most senior lenders view them as equity
equivalents.

An advantage of PIKs for the issuer -- as with zero coupon securities
- -- is that interest payments are automatically compounded (reinvested) at the
stated coupon rate, which is not the case with cash-paying securities. However,
PIKs are gaining popularity over zeros since interest payments in additional
securities can be monetized and are more tangible than accretion of a discount.

As a group, PIK bonds trade flat (i.e., without accrued interest).
Their price is expected to reflect an amount representing accredit interest
since the last payment. PIKs generally trade at higher yields than comparable
cash-paying securities of the same issuer. Their premium yield is the result of
the lesser desirability of non-cash interest, the more limited audience for
non-cash paying securities, and the fact that many PIKs have been issued to
equity investors who do not normally own or hold such securities.

Calculating the true yield on a PIK security requires a discounted cash
flow analysis if the security (ex interest) is trading at a premium or a
discount because the realizable value of additional payments is equal to the
current market value of the underlying security, not par.

Regardless of whether PIK securities are senior or deeply subordinated,
issuers are highly motivated to retire them because they are usually their most
costly form of capital.

Zero Coupon "Stripped" Bonds

The Fund may invest in zero coupon "stripped" bonds. These represent
ownership in serially maturing interest payments or principal payments on
specific underlying notes and bonds, including coupons relating to such notes
and bonds. The interest and principal payments are direct obligations of the
issuer. Coupon zero coupon bonds of any series mature periodically from the date
of issue of such series through the maturity date of the securities related to
such series. Principal zero coupon bonds mature on the date specified therein,
which is the final maturity date of the related securities. Each zero coupon
bond entitles the holder to receive a single payment at maturity. There are no
periodic interest payments on a zero coupon bond. Zero coupon bonds are offered
at discounts from their face amounts.

In general, owners of zero coupon bonds have substantially all the
rights and privileges of owners of the underlying coupon obligations or
principal obligations. Owners of zero coupon bonds have the right upon default
on the underlying coupon obligations or principal obligations to proceed
directly and individually against the issuer and are not required to act in
concert with other holders of zero coupon bonds.

For federal income tax purposes, a purchaser of principal zero coupon
bonds or coupon zero coupon bonds (either initially or in the secondary market)
is treated as if the buyer had purchased a corporate obligation issued on the
purchase date with an original issue discount equal to the excess of the amount
payable at maturity over the purchase price. The purchaser is required to take
into income each year as ordinary income an allocable portion of such discounts
determined on a "constant yield" method. Any such income increases the holder's
tax basis for the zero coupon bond, and any gain or loss on a sale of the zero
coupon bonds relative to the holder's basis, as so adjusted, is a capital gain
or loss. If the holder owns both principal zero coupon bonds and coupon zero
coupon bonds representing interest in the same underlying issue of securities, a
special basis allocation rule (requiring the aggregate basis to be allocated
among the items sold and retained based on their relative fair market value at
the time of sale) may apply to determine the gain or loss on a sale of any such
zero coupon bonds.

Mortgage-Backed or Asset-Backed Securities

The Fund may invest in mortgage-backed securities and asset-backed
securities. Two principal types of mortgage-backed securities are collateralized
mortgage obligations ("CMOs") and real estate mortgage investment conduits
("REMICs"). CMOs are securities collateralized by mortgages, mortgage
pass-throughs, mortgage pay-through bonds (bonds representing an interest in a
pool of mortgages where the cash flow generated from the mortgage collateral
pool is dedicated to bond repayment), and mortgage-backed bonds (general
obligations of the issuers payable out of the issuers' general funds and
additionally secured by a first lien on a pool of single family detached
properties). Many CMOs are issued with a number of classes or series which have
different maturities and are retired in sequence.

Investors purchasing CMOs in the shortest maturities receive or are
credited with their pro rata portion of the scheduled payments of interest and
principal on the underlying mortgages plus all unscheduled prepayments of
principal up to a predetermined portion of the total CMO obligation. Until that
portion of such CMO obligation is repaid, investors in the longer maturities
receive interest only. Accordingly, the CMOs in the longer maturity series are
less likely than other mortgage pass-throughs to be prepaid prior to their
stated maturity. Although some of the mortgages underlying CMOs may be supported
by various types of insurance, and some CMOs may be backed by GNMA certificates
or other mortgage pass-throughs issued or guaranteed by U.S. government agencies
or instrumentalities, the CMOs themselves are not generally guaranteed.

REMICs, which were authorized under the Tax Reform Act of 1986, are
private entities formed for the purpose of holding a fixed pool of mortgages
secured by an interest in real property. REMICs are similar to CMOs in that they
issue multiple classes of securities.

In addition to mortgage-backed securities, the Fund may invest in
securities secured by other assets including company receivables, truck and auto
loans, leases, and credit card receivables. These issues may be traded
over-the-counter and typically have a short-intermediate maturity structure
depending on the pay down characteristics of the underlying financial assets
which are passed through to the security holder.

Credit card receivables are generally unsecured and the debtors are
entitled to the protection of a number of state and federal consumer credit
laws, many of which give such debtors the right to set off certain amounts owed
on the credit cards, thereby reducing the balance due. Most issuers of
asset-backed securities backed by automobile receivables permit the servicers of
such receivables to retain possession of the underlying obligations. If the
services were to sell these obligations to another party, there is a risk that
the purchaser would acquire an interest superior to that of the holders of the
rated asset-backed securities. In addition, because of the large number of
vehicles involved in a typical issuance and technical requirements under state
laws, the trustee for the holders of asset-backed securities backed by
automobile receivables may not have a proper security interest in all of the
obligations backing such receivables. Therefore, there is the possibility that
recoveries on repossessed collateral may not, in some cases, be available to
support payments on these securities.

In general, issues of asset-backed securities are structured to include
additional collateral and/or additional credit support to protect against the
risk that a portion of the collateral supporting the asset-backed securities may
default and/or may suffer from these defects. In evaluating the strength of
particular issues of asset-backed securities, the investment advisor considers
the financial strength of the guarantor or other provider of credit support, the
type and extent of credit enhancement provided as well as the documentation and
structure of the issue itself and the credit support.

Variable or Floating Rate Instruments

The Fund may invest in variable or floating rate instruments which may
involve a demand feature and may include variable amount master demand notes
which may or may not be backed by bank letters of credit. Variable or floating
rate instruments bear interest at a rate which varies with changes in market
rates. The holder of an instrument with a demand feature may tender the
instrument back to the issuer at par prior to maturity. A variable amount master
demand note is issued pursuant to a written agreement between the issuer and the
holder, its amount may be increased by the holder or decreased by the holder or
issuer, it is payable on demand, and the rate -of interest varies based upon an
agreed formula. The quality of the underlying credit must, in the opinion of the
investment advisor, be equivalent to the long-term bond or commercial paper
ratings applicable to permitted investments for the Fund. The investment advisor
will monitor, on an ongoing basis, the earning power, cash flow, and liquidity
ratios of the issuers of such instruments and will similarly monitor the ability
of an issuer of a demand instrument to pay principal and interest on demand.

Limited Partnerships

Each Fund may invest in limited and master limited partnerships. A
limited partnership is a partnership consisting of one or more general partners,
jointly and severally responsible as ordinary partners, and by whom the business
is conducted, and one or more limited partners who contribute cash as capital to
the partnership and who generally are not liable for the debts of the
partnership beyond the amounts contributed. Limited partners are not involved in
the day-to-day management of the partnership. They receive income, capital gains
and other tax benefits associated with the partnership project in accordance
with terms established in the partnership agreement. Typical limited
partnerships are in real estate, oil and gas and equipment leasing, but they
also finance movies, research and development, and other projects.

For an organization classified as a partnership under the Internal
Revenue Code of 1986, as amended (the "Code"), each item of income, gain, loss,
deduction, and credit is not taxed at the partnership level but flows through to
the holder of the partnership unit. This allows the partnership to avoid double
taxation and to pass through income to the holder of the partnership unit at
lower individual rates.

A master limited partnership is a publicly traded limited partnership.
The partnership units are registered with the Securities and Exchange Commission
("SEC") and are freely exchanged on a securities exchange or in the
over-the-counter market.

PURCHASE, REDEMPTION AND PRICING OF SHARES

You may buy shares of the Fund through the Distributor, broker-dealers
that have entered into special agreements with the Distributor or certain other
financial institutions. The Fund offers different classes of shares that differ
primarily with respect to sales charges and distribution fees. Depending upon
the class of shares, you will pay an initial sales charge when you buy the
Fund's shares, a contingent deferred sales charge (a "CDSC") when you redeem the
Fund's shares or no sales charges at all. The classes of shares available
depends on the Fund. Refer to the prospectus for which classes are offered.

Class A Shares

With certain exceptions, when you purchase Class A shares you will pay
a maximum sales charge of 4.75%. The prospectus contains a complete table of
applicable sales charges and a discussion of sales charge reductions or waivers
that may apply to purchases. If you purchase Class A shares in the amount of $1
million or more, without an initial sales charge, the Fund will charge a CDSC of
1.00% if you redeem during the month of your purchase or the 12-month period
following the month of your purchase (see "Contingent Deferred Sales Charge"
below).

No front-end sales charges are imposed on Class A shares purchased by
(a) institutional investors, which may include bank trust departments and
registered investment advisors; (b) investment advisors, consultants or
financial planners who place trades for their own accounts or the accounts of
their clients and who charge such clients a management, consulting, advisory or
other fee; (c) clients of investment advisors or financial planners who place
trades for their own accounts if the accounts are linked to the master account
of such investment advisors or financial planners on the books of the
broker-dealer through whom shares are purchased; (d) institutional clients of
broker-dealers, including retirement and deferred compensation plans and the
trusts used to fund these plans, which place trades through an omnibus account
maintained with the Fund by the broker-dealer; (e) shareholders of record on
October 12, 1990 in any series of Evergreen Investment Trust in existence on
that date, and the members of their immediate families; (f) current and retired
employees of First Union National Bank ("FUNB") and its affiliates, EDI and any
broker-dealer with whom EDI has entered into an agreement to sell shares of the
Fund, and members of the immediate families of such employees; and (g) upon the
initial purchase of an Evergreen fund by investors reinvesting the proceeds from
a redemption within the preceding 30 days of shares of other mutual funds,
provided such shares were initially purchased with a front-end sales charge or
subject to a CDSC.

Class B Shares

The Fund offers Class B shares at net asset value without an initial
sales charge. With certain exceptions, however, the Fund will charge a CDSC on
shares you redeem within 72 months after the month of your purchase, in
accordance with the following schedule:

REDEMPTION TIME CDSC RATE
<S> <C>

Month of purchase and the first 12-month
period following the month of purchase. ...................................5.00%
Second 12-month period following the month of purchase.....................4.00%
Third 12-month period following the month of purchase......................3.00%
Fourth 12-month period following the month of purchase.....................3.00%
Fifth 12-month period following the month of purchase......................2.00%
Sixth 12-month period following the month of purchase......................1.00%
Thereafter.................................................................0.00%
</TABLE>

Class B shares that have been outstanding for seven years after the
month of purchase will automatically convert to Class A shares without
imposition of a front-end sales charge or exchange fee. Conversion of Class B
shares represented by stock certificates will require the return of the stock
certificate to ESC.

Class C Shares

Class C shares are available only through broker-dealers who have
entered into special distribution agreements with the Distributor. The Fund
offers Class C shares at net asset value without an initial sales charge. With
certain exceptions, however, the Fund will charge a CDSC of 1.00% on shares you
redeem within 12-months after the month of your purchase. See "Contingent
Deferred Sales Charge" below.

Class Y Shares

No CDSC is imposed on the redemption of Class Y shares. Class Y shares
are not offered to the general public and are available only to (1) persons who
at or prior to December 31, 1994 owned shares in a mutual fund advised by (2)
certain institutional investors and (3) investment advisory clients of EIM,
EAMC, EIMC, MIC, First International Advisors, Ltd., or their affiliates. Class
Y shares are offered at net asset value without a front-end or back-end sales
charge and do not bear any Rule 12b-1 distribution expenses.

INSTITUTIONAL SHARES, INSTITUTIONAL SERVICE SHARES AND CHARITABLE SHARES

Each institutional class of shares is sold without a front-end sales
charge or contingent deferred sales charge. Institutional Service shares pay an
ongoing service fee. The minimum initial investment in any institutional class
of shares is $1 million, which may be waived in certain circumstances. There is
no minimum amount required for subsequent purchases.

Contingent Deferred Sales Charge

The Fund charges a CDSC as reimbursement for certain expenses, such as
commissions or shareholder servicing fees, that it has incurred in connection
with the sale of its shares (see "Distribution Expenses Under Rule 12b-1,"
below). Institutional, Institutional Service and Charitable shares do not charge
a CDSC. If imposed, the Fund deducts the CDSC from the redemption proceeds you
would otherwise receive. The CDSC is a percentage of the lesser of (1) the net
asset value of the shares at the time of redemption or (2) the shareholder's
original net cost for such shares. Upon request for redemption, to keep the CDSC
a shareholder must pay as low as possible, the Fund will first seek to redeem
shares not subject to the CDSC and/or shares held the longest, in that order.
The CDSC on any redemption is, to the extent permitted by the National
Association of Securities Dealers, Inc. ("NASD"), paid to the Distributor or its
predecessor.

SALES CHARGE WAIVERS AND REDUCTIONS

The following information is not applicable to Institutional,
Institutional Service and Charitable shares.

If you making a large purchase, there are several ways you can combine
multiple purchases of Class A shares in Evergreen Funds and take advantage of
lower sales charges. These are described below.

Combined Purchases

You can reduce your sales charge by combining purchases of Class A
shares of multiple Evergreen Funds. For example, if you invested $75,000 in each
of two different Evergreen Funds, you would pay a sales charge based on a
$150,000 purchase (i.e., 3.75% of the offering price, rather than 4.75%).

Rights of Accumulation

You can reduce your sales charge by adding the value of Class A shares
of Evergreen Funds you already own to the amount of your next Class A
investment. For example, if you hold Class A shares valued at $99,999 and
purchase an additional $5,000, the sales charge for the $5,000 purchase would be
at the next lower sales charge of 3.75%, rather than 4.75%.

Your account, and therefore your rights of accumulation, can be linked
to immediate family members which includes father and mother, brothers and
sisters, and sons and daughters. The same rule applies with respect to
individual retirement plans. Please note, however, that retirement plans
involving employees stand alone and do not pass on rights of accumulation.

Letter of Intent

You can, by completing the "Letter of Intent" section of the
application, purchase Class A shares over a 13-month period and receive the same
sales charge as if you had invested all the money at once. All purchases of
Class A shares of an Evergreen Fund during the period will qualify as Letter of
Intent purchases.

Waiver of Initial Sales Charges

The Fund may sell its shares at net asset value without an initial
sales charge to:

1. purchasers of shares in the amount of $1 million or more;

2. a corporate or certain other qualified retirement plan or a
non-qualified deferred compensation plan or a Title 1
tax-sheltered annuity or TSA plan sponsored by an organization
having 100 or more eligible employees (a "Qualifying Plan") or
TSA plan sponsored by a public educational entity having
5,000 or more eligible employees (an "Educational TSA Plan");

3. institutional investors, which may include bank trust
departments and registered investment advisors;

4. investment advisors, consultants or financial planners who
place trades for their own accounts or the accounts of their
clients and who charge such clients a management, consulting,
advisory or other fee;

5. clients of investment advisors or financial planners who place
trades for their own accounts if the accounts are linked to a
master account of such investment advisors or financial
planners on the books of the broker-dealer through whom shares
are purchased;

6. institutional clients of broker-dealers, including retirement
and deferred compensation plans and the trusts used to fund
these plans, which place trades through an omnibus account
maintained with the Fund by the broker-dealer;

7. employees of First Union National Bank ("FUNB"), its
affiliates, the Distributor, any broker-dealer with whom the
Distributor, has entered into an agreement to sell shares of
the Fund, and members of the immediate families of such
employees;

8. certain Directors, Trustees, officers and employees of the
Evergreen Funds, the Distributor or their affiliates and to
the immediate families of such persons; or

9. a bank or trust company in a single account in the name of
such bank or trust company as Trustee if the initial
investment in or any Evergreen fund made pursuant to this
waiver is at least $500,000 and any commission paid at the
time of such purchase is not more than 1% of the amount
invested.

With respect to items 8 and 9 above, the Fund will only sell shares to
these parties upon the purchasers written assurance that the purchase is for
their personal investment purposes only. Such purchasers may not resell the
securities except through redemption by the Fund. The Fund will not charge any
CDSC on redemptions by such purchasers.

Waiver of CDSCS

The Fund does not impose a CDSC when the shares you are redeeming
represent:

1. an increase in the share value above the net cost of such shares;

2. certain shares for which the Fund did not pay a commission on
issuance, including shares acquired through reinvestment of
dividend income and capital gains distributions;

3. shares that are in the accounts of a shareholder who has died
or become disabled;

4. a lump-sum distribution from a 401(k) plan or other benefit plan
qualified under the Employee Retirement Income Security Act of
1974 ("ERISA");

5. an automatic withdrawal from the ERISA plan of a shareholder who
is a least 59 years old;

6. shares in an account that we have closed because the account has
an aggregate net asset value of less than $1,000;

7. an automatic withdrawal under an Systematic Income Plan of up to
1.0% per month of your initial account balance;

8. a withdrawal consisting of loan proceeds to a retirement plan
participant;

9. a financial hardship withdrawal made by a retirement plan
participant;

10. a withdrawal consisting of returns of excess contributions or
excess deferral amounts made to a retirement plan; or

11. a redemption by an individual participant in a Qualifying Plan
that purchased Class C shares (this waiver is not available in the
event a Qualifying Plan, as a whole, redeems substantially all of
its assets).

Exchanges

Investors may exchange shares of the Fund for shares of the same class
of any other Evergreen fund which offers the same class of shares. Shares of any
class of the Evergreen Select Funds may be exchanged for the same class of
shares of any other Evergreen Select Fund. See "By Exchange" under "How to Buy
Shares" in the prospectus. Before you make an exchange, you should read the
prospectus of the Evergreen fund into which you want to exchange. The Trust's
Board of Trustees reserves the right to discontinue, alter or limit the exchange
privilege at any time.

Automatic Reinvestment

As described in the prospectus, a shareholder may elect to receive
dividends and capital gains distributions in cash instead of shares. However,
ESC will automatically reinvest all dividends and distributions in additional
shares when it learns that the postal or other delivery service is unable to
deliver checks or transaction confirmations to the shareholder's address of
record. When a check is returned, the Fund will hold the check amount in a
no-interest account in the shareholder's name until the shareholder updates his
or her address or automatic reinvestment begins. Uncashed or returned redemption
checks will also be handled in the manner described above.

Calculation of Net Asset Value

The Fund calculates its net asset value ("NAV") once daily on Monday
through Friday, as described in the prospectus. The Fund will not compute its
NAV on the days the New York Stock Exchange is closed: New Year's Day, Martin
Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day.

The NAV of the Fund is calculated by dividing the value of the Fund's
net assets attributable to that class by all of the shares issued for that
class.

Valuation of Portfolio Securities

Current values for the Fund's portfolio securities are determined as
follows:

(1) Securities that are traded on an established securities exchange or
the over-the-counter National Market System ("NMS") are valued on the
basis of the last sales price on the exchange where primarily traded or
on the NMS prior to the time of the valuation, provided that a sale has
occurred.

(2) Securities traded on an established securities exchange or in the
over-the-counter market for which there has been no sale and other
securities traded in the over-the-counter market are valued at the mean
of the bid and asked prices at the time of valuation.

(3) Short-term investments maturing in more than 60 days, for which
market quotations are readily available, are valued at current market
value.

(4) Short-term investments maturing in sixty days or less are valued at
amortized cost, which approximates market.

(5) Securities, including restricted securities, for which market
quotations are not readily available; listed securities or those on NMS
if, in the investment advisor's opinion, the last sales price does not
reflect an accurate current market value; and other assets are valued
at prices deemed in good faith to be fair under procedures established
by the Board of Trustees.

PERFORMANCE CALCULATIONS

Total Return

Total return quotations for a class of shares of the Fund as they may
appear from time to time in advertisements are calculated by finding the average
annual compounded rates of return over one, five and ten year periods, or the
time periods for which such class of shares has been effective, whichever is
relevant, on a hypothetical $1,000 investment that would equate the initial
amount invested in the class to the ending redeemable value. To the initial
investment all dividends and distributions are added, and all recurring fees
charged to all shareholder accounts are deducted. The ending redeemable value
assumes a complete redemption at the end of the relevant periods. The following
is the formula used to calculate average annual total return:

n
P(1+T) = ERV

P = initial payment of $1,000
T = average total return
N = number of years
ERV = ending redeemable value of the initial $1,000

<PAGE>

Yield

Described below are yield calculations the Fund may use. Yield
quotations are expressed in annualized terms and may be quoted on a compounded
basis. Yields based on these calculations do not represent the Fund's yield for
any future period.

30-Day Yield

If the Fund invests primarily in bonds, it may quote its 30-day yield
in advertisements or in reports or other communications to shareholders. It is
calculated by dividing the net investment income per share earned during the
period by the maximum offering price per share on the last day of the period,
according to the following formula:

6
Yield = 2[(a-b/cd +1) -1]

Where:
a = Dividends and interest earned during the period
b = Expenses accrued for the period (net of reimbursements)
c = The average daily number of shares outstanding during the period
that were entitled to receive dividends
d = The maximum offering price per share on the last day of the period

7-Day Current and Effective Yield

If the Fund invests primarily in money market instruments, it may
quote its 7-day current yield or effective yield in advertisements or in reports
or other communications to shareholders.

The current yield is calculated by determining the net change,
excluding capital changes and income other than investment income, in the value
of a hypothetical, pre-existing account having a balance of one share at the
beginning of the 7-day base period, subtracting a hypothetical charge reflecting
deductions from shareholder accounts, and dividing the difference by the value
of the account at the beginning of the base period to obtain the base period
return, and then multiplying the base period return by (365/7).

The effective yield is based on a compounding of the current yield,
according to the following formula:
365/7
Effective Yield = {(base period return)]+1) ]-1

<PAGE>

Tax Equivalent Yield

If the Fund invests primarily in municipal bonds, it may quote in
advertisements or in reports or other communications to shareholders a tax
equivalent yield, which is what an investor would generally need to earn from a
fully taxable investment in order to realize, after income taxes, a benefit
equal to the tax free yield provided by the Fund. Tax equivalent yield is
calculated using the following formula:

Tax Equivalent Yield = Yield/1- Income Tax Rate

The quotient is then added to that portion, if any, of the
Fund's yield that is not tax exempt. Depending on the Fund's objective, the
income tax rate used in the formula above may be federal or a combination of
federal and state.

PRINCIPAL UNDERWRITER

The Distributor is the principal underwriter for the Trust and with
respect to each class of shares of the Fund. The Trust has entered into a
Principal Underwriting Agreement ("Underwriting Agreement") with the Distributor
with respect to each class of the Fund. The Distributor is a subsidiary of The
BISYS Group, Inc.

The Distributor, as agent, has agreed to use its best efforts to find
purchasers for the shares. The Distributor may retain and employ representatives
to promote distribution of the shares and may obtain orders from broker-dealers,
and others, acting as principals, for sales of shares to them. The Underwriting
Agreement provides that the Distributor will bear the expense of preparing,
printing, and distributing advertising and sales literature and prospectuses
used by it.

All subscriptions and sales of shares by the Distributor are at the
public offering price of the shares, which is determined in accordance with the
provisions of the Trust's Declaration of Trust, By-Laws, current prospectuses
and SAI. All orders are subject to acceptance by the Fund and the Fund reserves
the right, in its sole discretion, to reject any order received. Under the
Underwriting Agreement, the Fund is not liable to anyone for failure to accept
any order.

The Distributor has agreed that it will, in all respects, duly conform
with all state and federal laws applicable to the sale of the shares. The
Distributor has also agreed that it will indemnify and hold harmless the Trust
and each person who has been, is, or may be a Trustee or officer of the Trust
against expenses reasonably incurred by any of them in connection with any
claim, action, suit, or proceeding to which any of them may be a party that
arises out of or is alleged to arise out of any misrepresentation or omission to
state a material fact on the part of the Distributor or any other person for
whose acts the Distributor is responsible or is alleged to be responsible,
unless such misrepresentation or omission was made in reliance upon written
information furnished by the Trust.

The Underwriting Agreement provides that it will remain in effect as
long as its terms and continuance are approved annually (I) by a vote of a
majority of the Trust's Trustees who are not interested persons of the Fund, as
defined in the 1940 Act (the "Independent Trustees"), and (ii) by vote of a
majority of the Trust's Trustees, in each case, cast in person at a meeting
called for that purpose.

The Underwriting Agreement may be terminated, without penalty, on 60
days' written notice by the Board of Trustees or by a vote of a majority of
outstanding shares subject to such agreement. The Underwriting Agreement will
terminate automatically upon its "assignment," as that term is defined in the
1940 Act.

From time to time, if, in the Distributor's judgment, it could benefit
the sales of shares, the Distributor may provide to selected broker-dealers
promotional materials and selling aids, including, but not limited to, personal
computers, related software, and data files.

DISTRIBUTION EXPENSES UNDER RULE 12b-1

The Fund bears some of the costs of selling its Class A, Class B, Class
C and Institutional Service shares, as applicable, including certain
advertising, marketing and shareholder service expenses, pursuant to Rule 12b-1
of the 1940 Act. These "12b-1 fees" or "distribution fees" are indirectly paid
by the shareholder, as shown by the Fund's expense table in the prospectus.

Under the Distribution Plans (each a "Plan," together, the "Plans")
that the Fund has adopted for its Class A Class B, Class C and Institutional
Service shares, as applicable, the Fund may incur expenses for distribution
costs up to a maximum annual percentage of the average daily net assets
attributable to a class, as follows:

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

Class A 0.75%*
------------------------------- ---------------
------------------------------- ---------------

Class B 1.00%
------------------------------- ---------------
------------------------------- ---------------

Class C 1.00%
------------------------------- ---------------
------------------------------- ---------------

Institutional Service 0.75%*
------------------------------- ---------------

*Currently limited to 0.25% or less. See the expense table in
the prospectus of the Fund in which you are interested.

Of the amounts above, each class may pay under its Plan a maximum
service fee of 0.25% to compensate organizations, which may include the Fund's
investment advisor or its affiliates, for personal services provided to
shareholders and the maintenance of shareholder accounts. The Fund may not,
during any fiscal period, pay distribution or service fees greater than the
amounts above.

<PAGE>

Amounts paid under the Plans are used to compensate the Distributor
pursuant to Distribution Agreements (each an "Agreement," together, the
"Agreements") that the Fund has entered into with respect to its Class A, Class
B, Class C and Institutional Service shares, as applicable. The compensation is
based on a maximum annual percentage of the average daily net assets
attributable to a class, as follows:

----------------------------- -------------
Class A 0.25%*
----------------------------- -------------
----------------------------- -------------
Class B 1.00%
----------------------------- -------------
----------------------------- -------------
Class C 1.00%
----------------------------- -------------
----------------------------- -------------
Institutional Service 0.25%*
----------------------------- -------------

*May be lower. See the expense table in the prospectus of the Fund in
which you are interested.

The Agreements provide that the Distributor will use the distribution
fees received from the Fund for the following purposes:

(1) to compensate broker-dealers or other persons for distributing
Fund shares;

(2) to compensate broker-dealers, depository institutions and
other financial intermediaries for providing administrative,
accounting and other services with respect to the Fund's
shareholders; and

(3) to otherwise promote the sale of Fund shares.

The Agreements also provide that the Distributor may use distribution
fees to make interest and principal payments in respect of amounts that have
been financed to pay broker-dealers or other persons for distributing Fund
shares. The Distributor may assign its rights to receive compensation under the
Plans to secure such financings. FUNB or its affiliates may finance payments
made by the Distributor to compensate broker-dealers or other persons for
distributing shares of the Fund.

In the event the Fund acquires the assets of another mutual fund,
compensation paid to the Distributor under the Agreements may be paid by the
Fund's Distributor to the acquired fund's distributor or its predecessor.

Since the Distributor's compensation under the Agreements is not
directly tied to the expenses incurred by the Distributor, the compensation
received by it under the Agreements during any fiscal year may be more or less
than its actual expenses and may result in a profit to the Distributor.
Distribution expenses incurred by the Distributor in one fiscal year that exceed
the compensation paid to the Distributor for that year may be paid from
distribution fees received from the Fund in subsequent fiscal years.

Distribution fees are accrued daily and paid at least monthly on Class
A, Class B and Class C shares and are charged as class expenses, as accrued. The
distribution fees attributable to the Class B and Class C shares are designed to
permit an investor to purchase such shares through broker-dealers without the
assessment of a front-end sales charge, while at the same time permitting the
Distributor to compensate broker-dealers in connection with the sale of such
shares. In this regard, the purpose and function of the combined contingent
deferred sales charge and distribution services fee on the Class B shares are
the same as those of the front-end sales charge and distribution fee with
respect to the Class A

shares in that in each case the sales charge and/or distribution fee provide for
the financing of the distribution of the Fund's shares.

Under the Plans, the Treasurer of the Trust reports the amounts
expended under the Plans and the purposes for which such expenditures were made
to the Trustees of the Trust for their review on a quarterly basis. Also, each
Plan provides that the selection and nomination of the Independent Trustees are
committed to the discretion of such Independent Trustees then in office.

The investment advisor may from time to time from its own funds or such
other resources as may be permitted by rules of the Securities and Exchange
Commission ("SEC") make payments for distribution services to the Distributor;
the latter may in turn pay part or all of such compensation to brokers or other
persons for their distribution assistance.

Each Plan and the Agreement will continue in effect for successive
12-month periods provided, however, that such continuance is specifically
approved at least annually by the Trustees of the Trust or by vote of the
holders of a majority of the outstanding voting securities of that class and, in
either case, by a majority of the Independent Trustees of the Trust.

The Plans permit the payment of fees to brokers and others for
distribution and shareholder-related administrative services and to
broker-dealers, depository institutions, financial intermediaries and
administrators for administrative services as to Class A, Class B, Class C and
Institutional Service shares. The Plans are designed to (i) stimulate brokers to
provide distribution and administrative support services to the Fund and holders
of Class A, Class B, Class C and Institutional Service shares and (ii) stimulate
administrators to render administrative support services to the Fund and holders
of Class A, Class B, Class C and Institutional shares. The administrative
services are provided by a representative who has knowledge of the shareholder's
particular circumstances and goals, and include, but are not limited to
providing office space, equipment, telephone facilities, and various personnel
including clerical, supervisory, and computer, as necessary or beneficial to
establish and maintain shareholder accounts and records; processing purchase and
redemption transactions and automatic investments of client account cash
balances; answering routine client inquiries regarding Class A, Class B, Class C
and Institutional Service shares; assisting clients in changing dividend
options, account designations, and addresses; and providing such other services
as the Fund reasonably requests for its Class A, Class B, Class C and
Institutional Service shares.

In the event that the Plan or Distribution Agreement is terminated or
not continued with respect to one or more classes of the Fund, (i) no
distribution fees (other than current amounts accrued but not yet paid) would be
owed by the Fund to the Distributor with respect to that class or classes, and
(ii) the Fund would not be obligated to pay the Distributor for any amounts
expended under the Distribution Agreement not previously recovered by the
Distributor from distribution services fees in respect of shares of such class
or classes through deferred sales charges.

All material amendments to any Plan or Agreement must be approved by a
vote of the Trustees of the Trust or the holders of the Fund's outstanding
voting securities, voting separately by class, and in either case, by a majority
of the Independent Trustees, cast in person at a meeting called for the purpose
of voting on such approval; and any Plan or Distribution Agreement may not be
amended in order to increase materially the costs that a particular class of
shares of the Fund may bear pursuant to the Plan or Distribution Agreement
without the approval of a majority of the holders of the outstanding voting
shares of the class affected. Any Plan or Distribution Agreement may be
terminated (I) by the Fund without penalty at any time by a majority vote of the
holders of the outstanding voting securities of the Fund, voting separately by
class or by a majority vote of the Independent Trustees, or (ii) by the
Distributor. To terminate any Distribution Agreement, any party must give the
other parties 60 days' written notice; to terminate a Plan only, the Fund need
give no notice to the Distributor. Any Distribution Agreement will terminate
automatically in the event of its assignment. For more information about 12b-1
fees, see "Expenses" in the prospectus and "12b-1 Fees" under "Expenses" in Part
1 of this SAI.

TAX INFORMATION

Requirements for Qualifications as a Regulated Investment Company

The Fund intends to qualify for and elect the tax treatment applicable
to regulated investment companies ("RIC") under Subchapter M of the Internal
Revenue Code of 1986, as amended (the "Code"). (Such qualification does not
involve supervision of management or investment practices or policies by the
Internal Revenue Service.) In order to qualify as a RIC, the Fund must, among
other things, (i) derive at least 90% of its gross income from dividends,
interest, payments with respect to proceeds from securities loans, gains from
the sale or other disposition of securities or foreign currencies and other
income (including gains from options, futures or forward contracts) derived with
respect to its business of investing in such securities; and (ii) diversify its
holdings so that, at the end of each quarter of its taxable year, (a) at least
50% of the market value of the Fund's total assets is represented by cash, U.S.
government securities and other securities limited in respect of any one issuer,
to an amount not greater than 5% of the Fund's total assets and 10% of the
outstanding voting securities of such issuer, and (b) not more than 25% of the
value of its total assets is invested in the securities of any one issuer (other
than U.S. government securities and securities of other regulated investment
companies). By so qualifying, the Fund is not subject to federal income tax if
it timely distributes its investment company taxable income and any net realized
capital gains. A 4% nondeductible excise tax will be imposed on the Fund to the
extent it does not meet certain distribution requirements by the end of each
calendar year. The Fund anticipates meeting such distribution requirements.

Taxes on Distributions

Unless the Fund is a municipal bond fund, distributions will be taxable
to shareholders whether made in shares or in cash. Shareholders electing to
receive distributions in the form of additional shares will have a cost basis
for federal income tax purposes in each share so received equal to the net asset
value of a share of the Fund on the reinvestment date.

To calculate ordinary income for federal income tax purposes,
shareholders must generally include dividends paid by the Fund from its
investment company taxable income (net taxable investment income plus net
realized short-term capital gains, if any). The Fund will include dividends it
receives from domestic corporations when the Fund calculates its gross
investment income. Unless the Fund is a municipal bond fund or U.S. Treasury
money market fund, it anticipates that all or a portion of the ordinary
dividends which it pays will qualify for the 70% dividends-received deduction
for corporations. The Fund will inform shareholders of the amounts that so
qualify. If the Fund is a municipal bond fund or U.S. Treasury money market
fund, none of its income will consist of corporate dividends; therefore, none of
its distributions will qualify for the 70% dividends-received deduction for
corporations.

From time to time, the Fund will distribute the excess of its net
long-term capital gains over its short-term capital loss to shareholders (i.e.,
capital gain dividends). For federal tax purposes, shareholders must include
such capital gain dividends when calculating their net long-term capital gains.
Capital gain dividends are taxable as net long-term capital gains to a
shareholder, no matter how long the shareholder has held the shares.

Distributions by the Fund reduce its NAV. A distribution that reduces
the Fund's NAV below a shareholder's cost basis is taxable as described above,
although from an investment standpoint, it is a return of capital. In
particular, if a shareholder buys Fund shares just before the Fund makes a
distribution, when the Fund makes the distribution the shareholder will receive
what is in effect a return of capital. Nevertheless, the shareholder may incur
taxes on the distribution. Therefore, shareholders should carefully consider the
tax consequences of buying Fund shares just before a distribution.

All distributions, whether received in shares or cash, must be reported
by each shareholder on his or her federal income tax return. Each shareholder
should consult a tax advisor to determine the state and local tax implications
of Fund distributions.

If more than 50% of the value of the Fund's total assets at the end of
a fiscal year is represented by securities of foreign corporations and the Fund
elects to make foreign tax credits available to its shareholders, a shareholder
will be required to include in his gross income both cash dividends and the
amount the Fund advises him is his pro rata portion of income taxes withheld by
foreign governments from interest and dividends paid on the Fund's investments.
The shareholder may be entitled, however, to take the amount of such foreign
taxes withheld as a credit against his U.S. income tax, or to treat the foreign
tax withheld as an itemized deduction from his gross income, if that should be
to his advantage. In substance, this policy enables the shareholder to benefit
from the same foreign tax credit or deduction that he would have received if he
had been the individual owner of foreign securities and had paid foreign income
tax on the income therefrom. As in the case of individuals receiving income
directly from foreign sources, the credit or deduction is subject to a number of
limitations.

Special Tax Information for Municipal Bond Fund Shareholders

The Fund expects that substantially all of its dividends will be
"exempt interest dividends," which should be treated as excludable from federal
gross income. In order to pay exempt interest dividends, at least 50% of the
value of the Fund's assets must consist of federally tax-exempt obligations at
the close of each quarter. An exempt interest dividend is any dividend or part
thereof (other than a capital gain dividend) paid by the Fund with respect to
its net federally excludable municipal obligation interest and designated as an
exempt interest dividend in a written notice mailed to each shareholder not
later than 60 days after the close of its taxable year. The percentage of the
total dividends paid by the Fund with respect to any taxable year that qualifies
as exempt interest dividends will be the same for all shareholders of the Fund
receiving dividends with respect to such year. If a shareholder receives an
exempt interest dividend with respect to any share and such share has been held
for six months or less, any loss on the sale or exchange of such share will be
disallowed to the extent of the exempt interest dividend amount.

Any shareholder of the Fund who may be a "substantial user" (as defined
by the Code) of a facility financed with an issue of tax-exempt obligations or a
"related person" to such a user should consult his tax advisor concerning his
qualification to receive exempt interest dividends should the Fund hold
obligations financing such facility.

Under regulations to be promulgated, to the extent attributable to
interest paid on certain private activity bonds, the Fund's exempt interest
dividends, while otherwise tax-exempt, will be treated as a tax preference item
for alternative minimum tax purposes. Corporate shareholders should also be
aware that the receipt of exempt interest dividends could subject them to
alternative minimum tax under the provisions of Section 56(g) of the Code
(relating to "adjusted current earnings").

Interest on indebtedness incurred or continued by shareholders to
purchase or carry shares of the Fund will not be deductible for federal income
tax purposes to the extent of the portion of the interest expense relating to
exempt interest dividends. Such portion is determined by multiplying the total
amount of interest paid or accrued on the indebtedness by a fraction, the
numerator of which is the exempt interest dividends received by a shareholder in
his taxable year and the denominator of which is the sum of the exempt interest
dividends and the taxable distributions out of the Fund's investment income and
long-term capital gains received by the shareholder.

Taxes on The Sale or Exchange of Fund Shares

Upon a sale or exchange of Fund shares, a shareholder will realize a
taxable gain or loss depending on his or her basis in the shares. A shareholder
must treat such gains or losses as a capital gain or loss if the shareholder
held the shares as capital assets. Capital gain on assets held for more than 12
months is generally subject to a maximum federal income tax rate of 20% for an
individual. Generally, the Code will not allow a shareholder to realize a loss
on shares he or she has sold or exchanged and replaced within a 61-day period
beginning 30 days before and ending 30 days after he or she sold or exchanged
the shares. The Code will not allow a shareholder to realize a loss on the sale
of Fund shares held by the shareholder for six months or less to the extent the
shareholder received exempt interest dividends on such shares. Moreover, the
Code will treat a shareholder's loss on shares held for six months or less as a
long-term capital loss to the extent the shareholder received distributions of
net capital gains on such shares.

Shareholders who fail to furnish their taxpayer identification numbers
to the Fund and to certify as to its correctness and certain other shareholders
may be subject to a 31% federal income tax backup withholding requirement on
dividends, distributions of capital gains and redemption proceeds paid to them
by the Fund. If the withholding provisions are applicable, any such dividends or
capital gain distributions to these shareholders, whether taken in cash or
reinvested in additional shares, and any redemption proceeds will be reduced by
the amounts required to be withheld. Investors may wish to consult their own tax
advisors about the applicability of the backup withholding provisions.

Other Tax Considerations

The foregoing discussion relates solely to U.S. federal income tax law
as applicable to U.S. persons (i.e., U.S. citizens and residents and U.S.
domestic corporations, partnerships, trusts and estates). It does not reflect
the special tax consequences to certain taxpayers (e.g., banks, insurance
companies, tax exempt organizations and foreign persons). Shareholders are
encouraged to consult their own tax advisors regarding specific questions
relating to federal, state and local tax consequences of investing in shares of
the Fund.

<PAGE>

Each shareholder who is not a U.S. person should consult his or her tax advisor
regarding the U.S. and foreign tax consequences of ownership of shares of the
Fund, including the possibility that such a shareholder may be subject to a U.S.
withholding tax at a rate of 30% (or at a lower rate under a tax treaty) on
amounts treated as income from U.S. sources under the Code.

BROKERAGE

Brokerage Commissions

If the Fund invests in equity securities, it expects to buy and sell
them through brokerage transactions for which commissions are payable. Purchases
from underwriters will include the underwriting commission or concession, and
purchases from dealers serving as market makers will include a dealer's mark-up
or reflect a dealer's mark-down. Where transactions are made in the
over-the-counter market, the Fund will deal with primary market makers unless
more favorable prices are otherwise obtainable.

If the Fund invests in fixed income securities, it expects to buy and
sell them directly from the issuer or an underwriter or market maker for the
securities. Generally, the Fund will not pay brokerage commissions for such
purchases. When the Fund buys a security from an underwriter, the purchase price
will usually include an underwriting commission or concession. The purchase
price for securities bought from dealers serving as market makers will similarly
include the dealer's mark up or reflect a dealer's mark down. When the Fund
executes transactions in the over-the-counter market, it will deal with primary
market makers unless more favorable prices are otherwise obtainable.

Selection of Brokers

When buying and selling portfolio securities, the advisor seeks brokers
who can provide the most benefit to the Fund. When selecting a broker, the
investment advisor will primarily look for the best price at the lowest
commission, but in the context of the broker's:

1. ability to provide the best net financial result to the Fund;
2. efficiency in handling trades;
3. ability to trade large blocks of securities;
4. readiness to handle difficult trades;
5. financial strength and stability; and
6. provision of "research services," defined as (a) reports and
analyses concerning issuers, industries, securities and
economic factors and (b) other information useful in making
investment decisions.

The Fund may pay higher brokerage commissions to a broker providing it
with research services, as defined in item 6, above. Pursuant to Section 28(e)
of the Securities Exchange Act of 1934, this practice is permitted if the
commission is reasonable in relation to the brokerage and research services
provided. Research services provided by a broker to the investment advisor do
not replace, but supplement, the services the investment advisor is required to
deliver to the Fund. It is impracticable for the investment advisor to allocate
the cost, value and specific application of such research services among its
clients because research services intended for one client may indirectly benefit
another.

When selecting a broker for portfolio trades, the investment advisor
may also consider the amount of Fund shares a broker has sold, subject to the
other requirements described above.

If the Fund is advised by EAMC, Lieber & Company, an affiliate of EAMC
and a member of the New York and American Stock Exchanges, will to the extent
practicable effect substantially all of the portfolio transactions effected on
those exchanges for the Fund.

Simultaneous Transactions

The investment advisor makes investment decisions for the Fund
independently of decisions made for its other clients. When a security is
suitable for the investment objective of more than one client, it may be prudent
for the investment advisor to engage in a simultaneous transaction, that is, buy
or sell the same security for more than one client. The investment advisor
strives for an equitable result in such transactions by using an allocation
formula. The high volume involved in some simultaneous transactions can result
in greater value to the Fund, but the ideal price or trading volume may not
always be achieved for the Fund.

ORGANIZATION

Description of Shares

The Declaration of Trust authorizes the issuance of an unlimited number
of shares of beneficial interest of series and classes of shares. Each share of
the Fund represents an equal proportionate interest with each other share of
that series and/or class. Upon liquidation, shares are entitled to a pro rata
share of the Trust based on the relative net assets of each series and/or class.
Shareholders have no preemptive or conversion rights. Shares are redeemable and
transferable.

Voting Rights

Under the terms of the Declaration of Trust, the Trust is not required
to hold annual meetings. At meetings called for the initial election of Trustees
or to consider other matters, each share is entitled to one vote for each dollar
of "NAV"applicable to such share. Shares generally vote together as one class on
all matters. Classes of shares of the Fund have equal voting rights. No
amendment may be made to the Declaration of Trust that adversely affects any
class of shares without the approval of a majority of the votes applicable to
the shares of that class. Shares have non-cumulative voting rights, which means
that the holders of more than 50% of the votes applicable to shares voting for
the election of Trustees can elect 100% of the Trustees to be elected at a
meeting and, in such event, the holders of the remaining shares voting will not
be able to elect any Trustees.

After the initial meeting as described above, no further meetings of
shareholders for the purpose of electing Trustees will be held, unless required
by law (for such reasons as electing or removing Trustees, changing fundamental
policies, and approving advisory agreements or 12b-1 plans), unless and until
such time as less than a majority of the Trustees holding office have been
elected by shareholders, at which time, the Trustees then in office will call a
shareholders' meeting for the election of Trustees.

Limitation of Trustees' Liability

The Declaration of Trust provides that a Trustee will not be liable for
errors of judgment or mistakes of fact or law, but nothing in the Declaration of
Trust protects a Trustee against any liability to which he would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of his duties involved in the conduct of his office.

Banking Laws

The Glass-Steagall Act and other banking laws and regulations presently
prohibit member banks of the Federal Reserve System ("Member Banks") or their
non-bank affiliates from sponsoring, organizing, controlling, or distributing
the shares of registered, open-end investment companies such as the Trust. Such
laws and regulations also prohibit banks from issuing, underwriting or
distributing securities in general. However, under the Glass-Steagall Act and
such other laws and regulations, a Member Bank or an affiliate thereof may act
as investment advisor, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer, FUNB and
its affiliates are subject to, and in compliance with, the aforementioned laws
and regulations.

Changes to applicable laws and regulations or future judicial or
administrative decisions could result in FUNB and its affiliates being prevented
from continuing to perform the services required under the investment advisory
contract or from acting as agent in connection with the purchase of shares of
the Fund by its customers. If FUNB and its affiliates were prevented from
continuing to provide for services called for under the investment advisory
agreement, it is expected that the Trustees would identify, and call upon the
Fund's shareholders to approve a new investment advisor. If this were to occur,
it is not anticipated that the shareholders of the Fund would suffer any adverse
financial consequences.

INVESTMENT ADVISORY AGREEMENT

On behalf of the Fund, the Trust has entered into an investment
advisory agreement with the Fund's investment advisor (the "Advisory
Agreement"). Under the Advisory Agreement, and subject to the supervision of the
Trust's Board of Trustees, the investment advisor furnishes to the Fund (unless
the Fund is Masters ) investment advisory, management and administrative
services, office facilities, and equipment in connection with its services for
managing the investment and reinvestment of the Fund's assets. The investment
advisor pays for all of the expenses incurred in connection with the provision
of its services.

If the Fund is Evergreen Masters Fund, the Advisory Agreement is
similar to the above except that the investment advisor selects sub-advisors
(hereinafter referred to as "Managers") for the Fund and monitors each Manager's
investment program and results. The investment advisor has primary
responsibility under the multi-manager strategy to oversee the Managers,
including making recommendations to the Trust regarding the hiring, termination
and replacement of Managers.

The Fund pays for all charges and expenses, other than those
specifically referred to as being borne by the investment advisor, including,
but not limited to, (1) custodian charges and expenses; (2) bookkeeping and
auditors' charges and expenses; (3) transfer agent charges and expenses; (4)
fees and expenses of Independent Trustees; (5) brokerage commissions, brokers'
fees and expenses; (6) issue and transfer taxes; (7) applicable costs and
expenses under the Distribution Plan (as described above) (8) taxes and trust
fees payable to governmental agencies; (9) the cost of share certificates; (10)
fees and expenses of the registration and qualification of the Fund and its
shares with the SEC or under state or other securities laws; (11) expenses of
preparing, printing and mailing prospectuses, SAIs, notices, reports and proxy
materials to shareholders of the Fund; (12) expenses of shareholders' and
Trustees' meetings; (13) charges and expenses of legal counsel for the Fund and
for the Independent Trustees on matters relating to the Fund; (14) charges and
expenses of filing annual and other reports with the SEC and other authorities;
and (15) all extraordinary charges and expenses of the Fund. For information on
advisory fees paid by the Fund, see "Expenses" in Part 1 of this SAI.

The Advisory Agreement continues in effect for two years from its
effective date and, thereafter, from year to year only if approved at least
annually by the Board of Trustees of the Trust or by a vote of a majority of the
Fund's outstanding shares. In either case, the terms of the Advisory Agreement
and continuance thereof must be approved by the vote of a majority of the
Independent Trustees cast in person at a meeting called for the purpose of
voting on such approval. The Advisory Agreement may be terminated, without
penalty, on 60 days' written notice by the Trust's Board of Trustees or by a
vote of a majority of outstanding shares. The Advisory Agreement will terminate
automatically upon its "assignment" as that term is defined in the 1940 Act.

Managers (Evergreen Masters Fund only)

Evergreen Masters Fund's investment program is based upon the
investment advisor's multi-manager concept. The investment advisor allocates the
Fund's portfolio assets on an equal basis among a number of investment
management organizations - currently four in number - each of which employs a
different investment style, and periodically rebalances the Fund's portfolio
among the Managers so as to maintain an approximate equal allocation of the
portfolio among them throughout all market cycles. Each Manager provides these
services under a Portfolio Management Agreement. Each Manager has discretion,
subject to oversight by the Trustees and the investment advisor, to purchase and
sell portfolio assets consistent with the Fund's investment objectives, policies
and restrictions and specific investment strategies developed by the investment
advisor. The Fund's current Managers are, EAMC MFS Institutional Advisors, Inc.
("MFS"), OppenheimerFunds, Inc. ("Oppenheimer") and Putnam Investment
Management, Inc. ("Putnam").

The Trust and FUNB have received an order from, the SEC that will
permit the investment advisor to employ a "manager of managers" strategy in
connection with its management of the Fund. The exemptive order permits the
investment advisor, subject to certain conditions, and without shareholder
approval, to: (a) select new Managers who are unaffiliated with the investment
advisor with the approval of the Trust's Board of Trustees; (b) change the
material terms of the Portfolio Management Agreements with the Managers; and (c)
continue the employment of a Manager after an event which would otherwise cause
the automatic termination of a Portfolio Management Agreement. Shareholders
would be notified of any Manager changes. Shareholders have the right to
terminate arrangements with a Manager by vote of a majority of the outstanding
shares of the Fund. The order also permits the Fund to disclose the Managers'
fees only in the aggregate.

<PAGE>

Transactions Among Advisory Affiliates

The Trust has adopted procedures pursuant to Rule 17a-7 of the 1940 Act
("Rule 17a-7 Procedures"). The Rule 17a-7 Procedures permit the Fund to buy or
sell securities from another investment company for which a subsidiary of First
Union Corporation is an investment advisor. The Rule 17a-7 Procedures also allow
the Fund to buy or sell securities from other advisory clients for whom a
subsidiary of First Union Corporation is an investment advisor. The Fund may
engage in such transaction if it is equitable to each participant and consistent
with each participant's investment objective.

MANAGEMENT OF THE TRUST

The Trust is supervised by a Board of Trustees that is responsible for
representing the interest of the shareholders. The Trustees meet periodically
throughout the year to oversee the Fund's activities, reviewing, among other
things, the Fund's performance and its contractual arrangements with various
service providers. Each Trustee is paid a fee for his or her services. See
"Expenses-Trustee Compensation" in Part 1 of this SAI.

The Trust has an Executive Committee which consists of the Chairman of
the Board, James Howell, the Vice Chairman of the Board, Michael Scofield, and
Russell Salton, each of whom is an Independent Trustee. The Executive Committee
recommends Trustees to fill vacancies, prepares the agenda for Board Meetings
and acts on routine matters between scheduled Board meetings.

Set forth below are the Trustees and officers of the Trust and their
principal occupations and affiliations over the last five years. Unless
otherwise indicated, the address for each Trustee and officer is 200 Berkeley
Street, Boston, Massachusetts 02116. Each Trustee is also a Trustee of each of
the other Trusts in the Evergreen Fund complex..

Name Position with Trust Principal Occupations for Last Five Years
<S> <C> <C>

Laurence B. Ashkin Trustee Real estate developer and construction consultant; and
(DOB: 2/2/28) President of Centrum Equities and Centrum Properties, Inc.

Charles A. Austin III Trustee Investment Counselor to Appleton Partners, Inc.; former
(DOB: 10/23/34) Director, Executive Vice President and Treasurer, State
Street Research & Management Company (investment advice);
Director, The Andover Companies (Insurance); and Trustee,
Arthritis Foundation of New England

K. Dun Gifford Trustee Trustee, Treasurer and Chairman of the Finance Committee,
(DOB: 10/12/38) Cambridge College; Chairman Emeritus and Director, American
Institute of Food and Wine; Chairman and President, Oldways
Preservation and Exchange Trust (education); former Chairman
of the Board, Director, and Executive Vice President, The
London Harness Company; former Managing Partner, Roscommon
Capital Corp.;former Chief Executive Officer, Gifford Gifts
of Fine Foods; former Chairman, Gifford, Drescher & Associates
(environmental consulting)

James S. Howell Chairman of the Board Former Chairman of the Distribution Foundation for the
(DOB: 8/13/24) of Trustees Carolinas; and former Vice President of Lance Inc. (food
manufacturing).

Leroy Keith, Jr. Trustee Chairman of the Board and Chief Executive Officer, Carson
(DOB: 2/14/39) Products Company; Director of Phoenix Total Return Fund and
Equifax, Inc.; Trustee of Phoenix Series Fund, Phoenix
Multi-Portfolio Fund, and The Phoenix Big Edge Series Fund;
and former President, Morehouse College.

Gerald M. McDonnell Trustee Sales Representative with Nucor-Yamoto, Inc. (steel
(DOB: 7/14/39) producer).

Thomas L. McVerry Trustee Former Vice President and Director of Rexham Corporation
(DOB: 8/2/39) (manufacturing); and former Director of Carolina
Cooperative Federal Credit Union.

William Walt Pettit Trustee Partner in the law firm of William Walt Pettit, P.A.
(DOB: 8/26/55)

David M. Richardson Trustee Vice Chair and former Executive Vice President, DHR
(DOB: 9/14/41) International, Inc. (executive recruitment); former Senior
Vice President, Boyden International Inc. (executive
recruitment); and Director, Commerce and Industry
Association of New Jersey, 411 International, Inc., and J&M
Cumming Paper Co.

Russell A. Salton, III MD Trustee Medical Director, U.S. Health Care/Aetna Health Services;
(DOB: 6/2/47) former Managed Health Care Consultant; and former
President, Primary Physician Care.

Michael S. Scofield Vice Chairman of the Attorney, Law Offices of Michael S. Scofield.
(DOB: 2/20/43) Board of Trustees

Richard J. Shima Trustee Former Chairman, Environmental Warranty, Inc. (insurance
(DOB: 8/11/39) agency); Executive Consultant, Drake Beam Morin, Inc.
(executive outplacement); Director of Connecticut
Natural Gas Corporation, Hartford Hospital, Old State House
Association, Middlesex Mutual Assurance Company, and Enhance
Financial Services, Inc.; Chairman, Board of Trustees,
Hartford Graduate Center; Trustee, Greater Hartford YMCA;
former Director, Vice Chairman and Chief Investment Officer,
The Travelers Corporation; former Trustee, Kingswood-Oxford
School; and former Managing Director and Consultant,
Russell Miller, Inc.

William J. Tomko* President and Treasurer Executive Vice President/Operations, BISYS Fund Services.
(DOB:8/30/58)

Nimish S. Bhatt* Vice President and Vice President, Tax, BISYS Fund Services; former Assistant
(DOB: 6/6/63) Assistant Treasurer Vice President, EAMC/First Union Bank; former Senior Tax
Consulting/Acting Manager, Investment Companies Group,
PricewaterhouseCoopers LLP, New York.

Bryan Haft* Vice President Team Leader, Fund Administration, BISYS Fund Services.
(DOB: 1/23/65)
Senior Vice President and Assistant General Counsel, First
Michael H. Koonce Secretary Union Corporation; former Senior Vice President and General
(DOB: 4/20/60) Counsel, Colonial Management Associates, Inc.
</TABLE>

*Address: BISYS, 3435 Stelzer Road, Columbus, Ohio 43219-8001

CORPORATE AND MUNICIPAL BOND RATINGS

The Fund relies on ratings provided by independent rating services to
help determine the credit quality of bonds and other obligations the Fund
intends to purchase or already owns. A rating is an opinion of an issuer's
ability to pay interest and/or principal when due. Ratings reflect an issuer's
overall financial strength and whether it can meet its financial commitments
under various economic conditions.

If a security held by the Fund loses its rating or has its rating
reduced after the Fund has purchased it, the Fund is not required to sell or
otherwise dispose of the security, but may consider doing so.

The principal rating services, commonly used by the Fund and investors
generally, are S&P and Moody's. The Fund may also rely on ratings provided by
Fitch. Rating systems are similar among the different services. As an example,
the chart below compares basic ratings for long-term bonds. The "Credit Quality"
terms in the chart are for quick reference only. Following the chart are the
specific definitions each service provides for its ratings.

<PAGE>

COMPARISON OF LONG-TERM BOND RATINGS

----------------- ---------------- --------------- =================================================

MOODY'S S&P FITCH Credit Quality
<S> <C> <C> <C>
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

Aaa AAA AAA Excellent Quality (lowest risk)
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

Aa AA AA Almost Excellent Quality (very low risk)
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

A A A Good Quality (low risk)
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

Baa BBB BBB Satisfactory Quality (some risk)
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

Ba BB BB Questionable Quality (definite risk)
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

B B B Low Quality (high risk)
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

Caa/Ca/C CCC/CC/C CCC/CC/C In or Near Default
----------------- ---------------- --------------- =================================================
----------------- ---------------- --------------- =================================================

D DDD/DD/D In Default
----------------- ---------------- --------------- =================================================
</TABLE>

CORPORATE BONDS

LONG-TERM RATINGS

Moody's Corporate Long-Term Bond Ratings

Aaa Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as "gilt
edged." Interest payments are protected by a large or by an exceptionally stable
margin and principal is secure. While the various protective elements are likely
to change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.

Aa Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long-term risk appear somewhat larger than the Aaa securities.

A Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper-medium-grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment some time in the future.

Baa Bonds which are rated Baa are considered as medium-grade obligations, (i.e.
they are neither highly protected nor poorly secured). Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well-assured. Often the protection of interest
and principal payments may be very moderate, and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C Bonds which are rated C are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.

Note: Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa to Caa. The modifier 1 indicates that the company ranks
in the higher end of its generic rating category; the modifier 2 indicates a
mid-range raking and the modifier 3 indicates that the company ranks in the
lower end of its generic rating category.

S&P Corporate Long-Term Bond Ratings

AAA An obligation rated AAA has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.

AA An obligation rated AA differs from the highest-rated obligations only in
small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

A An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.

BBB An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity of the obligor to meet its financial commitment on the
obligation.

BB, B, CCC, CC and C: As described below, obligations rated BB, B, CCC, CC, and
C are regarded as having significant speculative characteristics. BB indicates
the least degree of speculation and C the highest. While such obligations will
likely have some quality and protective characteristics, these may be outweighed
by large uncertainties or major exposures to adverse conditions.

BB An obligation rated BB is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions, which could lead to the
obligor's inadequate capacity to meet its financial commitment on the
obligation.

B An obligation rated B is more vulnerable to nonpayment than obligations rated
BB, but the obligor currently has the capacity to meet its financial commitment
on the obligation. Adverse business, financial, or economic conditions will
likely impair the obligor's capacity or willingness to meet it financial
commitment on the obligation.

CCC An obligation rated CCC is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.

CC An obligation rated CC is currently highly vulnerable to nonpayment.

C The C rating may be used to cover a situation where a bankruptcy petition has
been filed or similar action has been taken, but payments on this obligation are
being continued.

D The D rating, unlike other ratings, is not prospective; rather, it is used
only where a default has actually occurred--and not where a default is only
expected. S&P changes ratings to D either:

! On the day an interest and/or principal payment is due and is not paid.
An exception is made if there is a grace period and S&P believes that a
payment will be made, in which case the rating can be maintained; or

! Upon voluntary bankruptcy filing or similar action. An exception is
made if S&P expects that debt service payments will continue to be made
on a specific issue. In the absence of a payment default or bankruptcy
filing, a technical default (i.e., covenant violation) is not
sufficient for assigning a D rating.

Plus (+) or minus (-) The ratings from AA to CCC may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.

Fitch Corporate Long-Term Bond Ratings

Investment Grade

AAA Highest credit quality. AAA ratings denote the lowest expectation of credit
risk. They are assigned only in case of exceptionally strong capacity for timely
payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.

AA Very high credit quality. AA ratings denote a very low expectation of credit
risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.

A High credit quality. A ratings denote a lower expectation of credit risk. The
capacity for timely payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.

BBB Good credit quality. BBB ratings indicate that there is currently a low
expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity. This is the lowest
investment-grade category.

<PAGE>

Speculative Grade

BB Speculative. BB ratings indicate that there is a possibility of credit risk
developing, particularly as the result of adverse economic change over time;
however, business or financial alternatives may be available to allow financial
commitments to be met. Securities rated in this category are not investment
grade.

B Highly speculative. B ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.

CCC, CC, C High default risk. Default is a real possibility. Capacity for
meeting financial commitment is solely reliant upon sustained, favorable
business or economic developments. A CC rating indicates that default of some
kind appears probable. C ratings signal imminent default.

DDD, DD, D Default. Securities are not meeting current obligations and are
extremely speculative. DDD designates the highest potential for recovery of
amounts outstanding on any securities involved. For U.S. corporates, for
example, DD indicates expected recovery of 50%-90% of such outstandings, and D
the lowest recovery potential, i.e. below 50%.

+ or - may be appended to a rating to denote relative status within major rating
categories. Such suffixes are not added to the AAA rating category or to
categories below CCC.

CORPORATE SHORT-TERM RATINGS

Moody's Corporate Short-Term Issuer Ratings

Prime-1 Issuers rated Prime-1 (or supporting institutions) have a superior
ability for repayment of senior short-term debt obligations. Prime-1 repayment
ability will often be evidenced by many of the following characteristics.

- -- Leading market positions in well-established industries.

- -- High rates of return on funds employed.

- -- Conservative capitalization structure with moderate reliance on debt and
ample asset protection.

- -- Broad margins in earnings coverage of fixed financial changes and high
internal cash generation.

- -- Well-established access to a range of financial markets and assured sources
of alternate liquidity.

Prime-2 Issuers rated Prime-2 (or supporting institutions) have a strong ability
for repayment of senior short-term debt obligations. This will normally be
evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.

Prime-3 Issuers rated Prime-3 (or supporting institutions) have an acceptable
ability for repayment of senior short-term obligations. The effect of industry
characteristics and market compositions may be more pronounced. Variability in
earnings and profitability may result in changes in the level of debt protection
measurements and may require relatively high financial leverage. Adequate
alternate liquidity is maintained.

Not Prime Issuers rated Not Prime do not fall within any of the Prime rating
categories.

S&P Corporate Short-Term Obligation Ratings

A-1 A short-term obligation rated A-1 is rated in the highest category by S&P.
The obligor's capacity to meet its financial commitment on the obligation is
strong. Within this category certain obligations are designated with a plus sign
(+). This indicates that the obligor's capacity to meet its financial commitment
on these obligations is extremely strong.

A-2 A short-term obligation rated A-2 is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than
obligations in higher rating categories. However, the obligor's capacity to meet
its financial commitment on the obligation is satisfactory.

A-3 A short-term obligation rated A-3 exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more likely
to lead to a weakened capacity of the obligor to meet its financial commitment
on the obligation.

B A short-term obligation rated B is regarded as having significant speculative
characteristics. The obligor currently has the capacity to meet its financial
commitment on the obligation; however, it faces major ongoing uncertainties
which could lead to the obligor's inadequate capacity to meet its financial
commitment on the obligation.

C A short-term obligation rated C is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation.

D The D rating, unlike other ratings, is not prospective; rather, it is used
only where a default has actually occurred--and not where a default is only
expected. S&P changes ratings to D either:

! Upon voluntary bankruptcy filing or similar action, An exception is
made if S&P expects that debt service payments will continue to be made
on a specific issue. In the absence of a payment default or bankruptcy
filing, a technical default (i.e., covenant violation) is not
sufficient for assigning a D rating.

Fitch Corporate Short-Term Obligation Ratings

F1 Highest credit quality. Indicates the strongest capacity for timely payment
of financial commitments; may have an added "+" to denote any exceptionally
strong credit feature.

F2 Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.

F3 Fair credit quality. The capacity for timely payment of financial commitments
is adequate; however, near-term adverse changes could result in a reduction to
non-investment grade.

B Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.

C High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.

D Default. Denotes actual or imminent payment default.

MUNICIPAL BONDS

LONG-TERM RATINGS

Moody's Municipal Long-Term Bond Ratings

Aaa Bonds rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt edge."
Interest payments are protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective elements are likely to
change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.

Aa Bonds rated Aa are judged to be of high quality by all standards. Together
with the Aaa group they comprise what are generally known as high grade bonds.
They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which make the
long-term risk appear somewhat larger than the Aaa securities.

A Bonds rated A possess many favorable investment attributes and are to be
considered as upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment some time in the future.

Baa Bonds rated Baa are considered as medium-grade obligations, i.e., they are
neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.

Ba Bonds rated Ba are judged to have speculative elements; their future cannot
be considered as well-assured. Often the protection of interest and principal
payments may be very moderate, and thereby not well safeguarded during both good
and bad times over the future. Uncertainty of position characterizes bonds in
this class.

B Bonds rated B generally lack characteristics of the desirable investment.
Assurance of interest and principal payments or of maintenance of other terms of
the contract over any long period of time may be small.

Caa Bonds rated Caa are of poor standing. Such issues may be in default or there
may be present elements of danger with respect to principal or interest.

Ca Bonds rated Ca represent obligations which are speculative in a high degree.
Such issues are often in default or have other marked shortcomings.

C Bonds rated C are the lowest rated class of bonds, and issues so rated can be
regarded as having extremely poor prospects of ever attaining any real
investment standing.

Note: Moody's applies numerical modifiers 1, 2 and 3 in each generic rating
classification from Aa to B. The modifier 1 indicates that the company ranks in
the higher end of its generic rating category; the modifier 2 indicates a
mid-range raking and the modifier 3 indicates that the company ranks in the
lower end of its generic rating category.

S&P Municipal Long-Term Bond Ratings

AAA An obligation rated AAA has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.

AA An obligation rated AA differs from the highest-rated obligations only in
small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

BB, B, CCC, CC and C: As described below, obligations rated BB, B, CCC,
CC, and C are regarded as having significant speculative characteristics. BB
indicates the least degree of speculation and C the highest. While such
obligations will likely have some quality and protective characteristics, these
may be outweighed by large uncertainties or major exposures to adverse
conditions.

<PAGE>

CC An obligation rated CC is currently highly vulnerable to nonpayment.

C The C rating may be used to cover a situation where a bankruptcy petition has
been filed or similar action has been taken, but payments on this obligation are
being continued.

D An obligation rated D is in payment default. The D rating category is used
when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless S&P believes that such payments
will be made during such grace period. The D rating also will be used upon the
filing of a bankruptcy petition or the taking of a similar action if payments on
an obligation are jeopardized.

Plus (+) or minus (-) The ratings from AA to CCC may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.

Fitch Municipal Long-Term Bond Ratings

Investment Grade

Speculative Grade

CCC, CC, C High default risk. Default is a real possibility. Capacity for
meeting financial commitments is solely reliant upon sustained, favorable
business or economic developments. A CC rating indicates that default of some
kind appears probable. C ratings signal imminent default.

DDD, DD, D Default. Securities are not meeting current obligations and are
extremely speculative. DDD designates the highest potential for recovery of
amounts outstanding on any securities involved. DD designates lower recovery
potential and D the lowest.

+ or - may be appended to a rating to denote relative status within major rating
categories. Such suffixes are not added to the AAA rating category or to
categories below CCC.

SHORT-TERM MUNICIPAL RATINGS

Moody's Municipal Short-Term Issuer Ratings

- -- Leading market positions in well-established industries.

- -- High rates of return on funds employed.

- -- Conservative capitalization structure with moderate reliance on debt and
ample asset protection.

- -- Broad margins in earnings coverage of fixed financial changes and high
internal cash generation.

- -- Well-established access to a range of financial markets and assured sources
of alternate liquidity.

Not Prime Issuers rated Not Prime do not fall within any of the Prime rating
categories.

Moody's Municipal Short-Term Loan Ratings

MIG 1 This designation denotes best quality. There is strong protection by
established cash flows, superior liquidity support, or demonstrated broad-based
access to the market for refinancing.

MIG 2 This designation denotes high quality. Margins of protection are ample
although not so large as in the preceding group.

MIG 3 This designation denotes favorable quality. Liquidity and cash-flow
protection may be narrow and market access for refinancing is likely to be less
well established.

SG This designation denotes speculative quality. Debt instruments in this
category may lack margins of protection.

S&P Commercial Paper Ratings

A-1 This designation indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus sign (+) designation.

A-2 Capacity for timely payment on issues with this designation is satisfactory.
However, the relative degree of safety is not as high as for issues designated
A-1.

A-3 Issues carrying this designation have an adequate capacity for timely
payment. They are, however, more vulnerable to the adverse effects of changes in
circumstances than obligations carrying the higher designations.

B Issues rated B are regarded as having only speculative capacity for timely
payment.

C This rating is assigned to short-term debt obligations with a doubtful
capacity for payment.

D Debt rated D is in payment default. The D rating category is used when
interest payments of principal payments are not made on the date due, even if
the applicable grace period has not expired, unless S&P believes such payments
will be made during such grace period.

S&P Municipal Short-Term Obligation Ratings

SP-1 Strong capacity to pay principal and interest. An issue determined to
possess a very strong capacity to pay debt service is given a plus (+)
designation.

SP-2 Satisfactory capacity to pay principal and interest, with some
vulnerability to adverse financial and economic changes over the term of the
notes.

SP-3 Speculative capacity to pay principal and interest.

Fitch Municipal Short-Term Obligation Ratings

F1 Highest credit quality. Indicates the strongest capacity for timely payment
of financial commitments; may have an added "+" to denote any exceptionally
strong credit feature.

F2 Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.

F3 Fair credit quality. The capacity for timely payment of financial commitments
is adequate; however, near-term adverse changes could result in a reduction to
non-investment grade.

B Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.

C High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.

D Default. Denotes actual or imminent payment default.

ADDITIONAL INFORMATION

Except as otherwise stated in its prospectus or required by law, the
Fund reserves the right to change the terms of the offer stated in its
prospectus without shareholder approval, including the right to impose or change
fees for services provided.

No dealer, salesman or other person is authorized to give any
information or to make any representation not contained in the Fund's
prospectus, SAI or in supplemental sales literature issued by the Fund or the
Distributor, and no person is entitled to rely on any information or
representation not contained therein.

The Fund's prospectus and SAI omit certain information contained in the
Trust's registration statement, which you may obtain for a fee from the SEC in
Washington, D.C.

EVERGREEN SELECT MONEY MARKET TRUST

PART C

OTHER INFORMATION

Item 23 Exhibits

<TABLE>
<CAPTION>
Exhibit
Number Description Location
- ------- ----------- -----------
<S> <C> <C>
(a) Declaration of Trust Incorporated by reference to
Registrant's Pre-Effective Amendment No. 1
Filed on October 8, 1997

(b) By-laws Incorporated by reference to
Registrant's Pre-Effective Amendment No. 1
Filed on October 8, 1997

(c) Provisions of instruments defining the rights Included as part of Exhibits 1 and 2 of
of holders of the securities being registered Registrant's Pre-Effective Amendment No. 1
are contained in the Declaration of Trust filed on November 17, 1997
Articles II, III.(6)(c), VI.(3), IV.(8), V, VI,
VII, VIII and By-laws Articles II, III and VIII

(d) Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and First Registrant's Post-Effective Amendment No. 2
Union National Bank Filed on May 29, 1998

(e) Principal Underwriting Agreement between the Incorporated by reference to
Registrant and Evergreen Distributor, Inc. Registrant's Post-Effective Amendment No. 2
Filed on May 29, 1998

(f) Deferred Compensation Plan Incorporated by reference to
Registrant's Pre-Effective Amendment No. 1
Filed on November 20, 1997

(g) Custodian Agreement between the Registrant Incorporated by reference to
and State Street Bank and Trust Company Registrant's Post-Effective Amendment No. 2
Filed on May 29, 1998

(h)(1) Administrative Services Agreement between Evergreen Incorporated by reference to
Investment Services, Inc. and the Registrant Registrant's Post-Effective Amendment No. 2
Filed on May 29, 1998

(h)(2) Transfer Agent Agreement between the Incorporated by reference to
Registrant and Evergreen Service Company Registrant's Post-Effective Amendment No. 2
Filed on May 29, 1998

(i) Opinion and Consent of Sullivan & Worcester LLP Incorporated by reference to
Registrant's Post-Effective Amendment No. 1
Filed on December 12, 1997

(j) Consent of PricewaterhouseCoopers LLP Contained herein

(k) Not applicable

(l) Not applicable

(m) 12b-1 Distribution Plan for Incorporated by reference to
Institutional Service Shares Registrant's Post-Effective Amendment No. 2
Filed on May 29, 1998

(n) Financial Data Schedules Contained herein

(o) Multiple Class Plan Incorporated by reference to
Registrant's Post-Effective Amendment No. 4
Filed on April 28, 1999

</TABLE>

Item 24. Persons Controlled by or Under Common Control with Registrant.

None

Item 25. Indemnification.

Registrant has obtained from a major insurance carrier a trustees and
officers liability policy covering certain types of errors and omissions.
Provisions for the indemnification of the Registrant's Trustees and officers are
contained the Registrant's Declaration of Trust.

Provisions for the indemnification of Registrant's Investment Advisor are
contained in their Investment Advisory and Management Agreement.

Provisions for the indemnification of Evergreen Distributor, Inc., the
Registrant's principal underwriter, are contained in the Principal Underwriting
Agreement between Evergreen Distributor, Inc. and the Registrant.

Provisions for the indemnification of Evergreen Service Company, the
Registrant's transfer agent, are contained in the Master Transfer and Record
keeping Agreement between Evergreen Service Company and the Registrant.

Provision for the indemnification of State Street Bank & Trust Co., the
Registrant's custodian, are contained in the Custodian Agreement between State
Street Bank & Trust Co. and the Registrant.

Item 26. Business or Other Connections of Investment Adviser.

The Directors and principal executive officers of First Union National Bank
are:

Edward E. Crutchfield, Jr. Chairman and Chief Executive Officer,
First Union Corporation; Chief Executive
Officer and Chairman, First Union National
Bank

Anthony Terracciano President, First Union Corporation;
President, First Union National Bank

John R. Georgius Vice Chairman, First Union Corporation; Vice
Chairman, First Union National Bank

Marion A. Cowell, Jr. Executive Vice President, Secretary &
General Counsel, First Union Corporation;
Secretary and Executive Vice President,
First Union National Bank

Robert T. Atwood Executive Vice President and Chief Financial
Officer, First Union Corporation; Chief
Financial Officer and Executive Vice
President, First Union National Bank

All of the above persons are located at the following address: First Union
National Bank, One First Union Center, Charlotte, NC 28288.

Item 27. Principal Underwriters.

Evergreen Distributor, Inc. acts as principal underwriter for each
registered investment company or series thereof that is a part of the Evergreen
"fund complex" as such term is defined in Item 22(a) of Schedule 14A
under the Securities Exchange Act of 1934.

The Directors and principal executive officers of Evergreen Distributor,
Inc. are:

Lynn C. Mangum Director, Chairman and Chief Executive
Officer

Dennis Sheehan Director, Chief Financial Officer

J. David Huber President

Kevin J. Dell Vice President, General Counsel and Secretary

All of the above persons are located at the following address: Evergreen
Distributor, Inc., 90 Park Avenue, New York, New York 10016. The Registrant has
not paid, directly or indirectly, any commissions or other compensation to the
principal underwriter in the last fiscal year.

Item 28. Location of Accounts and Records.

All accounts and records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and the Rules 31a-1 through 31a-3 promulgated
thereunder are maintained at one of the following locations:

Evergreen Investment Services, Inc., Evergreen Service Company and
Evergreen Investment Management Company (formerly known as Keystone Investment
Management Company), all located at 200 Berkeley Street, Boston, Massachusetts
02110

First Union National Bank, One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28288

Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase, New
York 10577

Iron Mountain, 3431 Sharp Slot Road, Swansea, Massachusetts 02777

State Street Bank and Trust Company, 2 Heritage Drive, North Quincy,
Massachusetts 02171

Item 29. Management Services.

Not Applicable

Item 30. Undertakings.

The Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders, upon request and without charge.

<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Columbus, and State of Ohio, on the 28th day of
June, 1999.

EVERGREEN SELECT MONEY MARKET TRUST

By: /s/ Anthony J. Fischer
-----------------------------
Name: Anthony J. Fischer
Title: President

Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on the 28th day of June, 1999.
<TABLE>
<CAPTION>
<S> <C> <C>
/s/William J. Tomko /s/ Laurence B. Ashkin /s/ Charles A. Austin, III
- ------------------------- ----------------------------- --------------------------------
William J. Tomko Laurence B. Ashkin* Charles A. Austin III*
President and Treasurer (Principal Trustee Trustee
Financial and Accounting Officer)

/s/ K. Dun Gifford /s/ James S. Howell /s/ William Walt Pettit
- ---------------------------- ---------------------------- --------------------------------
K. Dun Gifford* James S. Howell* William Walt Pettit*
Trustee Chairman of the Board Trustee
and Trustee

/s/Gerald M. McDonnell /s/ Thomas L. McVerry /s/ Michael S. Scofield
- ------------------------------- ----------------------------- --------------------------------
Gerald M. McDonell* Thomas L. McVerry* Michael S. Scofield*
Trustee Trustee Vice Chairman of the Board
and Trustee

/s/ David M. Richardson /s/ Russell A. Salton, III MD /s/ Leroy Keith, Jr.
- ------------------------------ ------------------------------- --------------------------------
David M. Richardson* Russell A. Salton, III MD* Leroy Keith, Jr.*
Trustee Trustee Trustee

/s/ Richard J. Shima
- ------------------------------
Richard J. Shima*
Trustee
</TABLE>

*By: /s/ Catherine E. Foley
- -------------------------------
Catherine E. Foley
Attorney-in-Fact

*Catherine E. Foley, by signing her name hereto, does hereby sign this
document on behalf of each of the above-named individuals pursuant to powers of
attorney duly executed by such persons and incorporated by reference to Exhibit
19 to the Registrant's Post-Effective Amendment No. 2 filed on May 29, 1998.

<PAGE>

INDEX TO EXHIBITS

Exhibit
Number Exhibit
- -------------- -------
(j) Consent of PricewaterhouseCoopers LLP
(n) Financial Data Schedules

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 5 to the registration statement on Form N-1A (the "Registration
Statement") of Evergreen Select Fixed Income Trust of our report dated April 12,
1999, relating to the financial statements and financial highlights of Evergreen
Select Money Market Fund, Evergreen Select Municipal Money Market Fund,
Evergreen Select Treasury Money Market Fund and Evergreen Select 100% Treasury
Money Market Fund (the "Funds"), appearing in the Funds' February 28, 1999
Annual Report to Shareholders, which is also incorporated by reference into the
Registration Statement. We also consent to the references to us under the
heading "Financial Highlights" in the Prospectus and under the headings
"Independent Accountants" and "Financial Statements" in such Statement of
Additional Information.

PricewaterhouseCoopers LLP
Boston, MA
June 25, 1999

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 106
<NAME> EVERGREEN SELECT MONEY MARKET FUND (2L45) CLASS IS
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> "5,083,525,789 "
<INVESTMENTS-AT-VALUE> "5,083,525,789 "
<RECEIVABLES> "27,532,948 "
<ASSETS-OTHER> "67,188 "
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> "5,111,125,925 "
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> "14,938,020 "
<TOTAL-LIABILITIES> "14,938,020 "
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> "2,242,891,402 "
<SHARES-COMMON-STOCK> "2,242,897,789 "
<SHARES-COMMON-PRIOR> "1,215,518,996 "
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> "(210,671)"
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> "2,242,680,731 "
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> "93,594,613 "
<OTHER-INCOME> 0
<EXPENSES-NET> "(7,651,214)"
<NET-INVESTMENT-INCOME> "85,943,399 "
<REALIZED-GAINS-CURRENT> "(33,860)"
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> "85,909,539 "
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> "(85,943,399)"
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> "7,451,922,804 "
<NUMBER-OF-SHARES-REDEEMED> "(6,466,677,330)"
<SHARES-REINVESTED> "42,133,319 "
<NET-CHANGE-IN-ASSETS> "1,027,344,935 "
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> "(2,519,448)"
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> "(7,907,971)"
<AVERAGE-NET-ASSETS> "1,677,284,824 "
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.51
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.51)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.46
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 105
[NAME] EVERGREEN SELECT MONEY MARKET FUND (2L45) CLASS I
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] MAR-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "5,083,525,789 "
[INVESTMENTS-AT-VALUE] "5,083,525,789 "
[RECEIVABLES] "27,532,948 "
[ASSETS-OTHER] "67,188 "
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] "5,111,125,925 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "14,938,020 "
[TOTAL-LIABILITIES] "14,938,020 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "2,853,714,003 "
[SHARES-COMMON-STOCK] "2,853,695,618 "
[SHARES-COMMON-PRIOR] "1,051,905,109 "
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] "(206,837)"
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "2,853,507,166 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "93,910,233 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(3,439,680)"
[NET-INVESTMENT-INCOME] "90,470,553 "
[REALIZED-GAINS-CURRENT] "(36,566)"
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "90,433,987 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(90,470,553)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "10,179,159,033 "
[NUMBER-OF-SHARES-REDEEMED] "(8,390,782,294)"
[SHARES-REINVESTED] "13,413,770 "
[NET-CHANGE-IN-ASSETS] "1,801,779,001 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] "(2,533,176)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(3,706,578)"
[AVERAGE-NET-ASSETS] "1,690,800,030 "
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.54
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.54)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 0.21
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 106
[NAME] EVERGREEN SELECT MUNICIPAL MONEY MARKET FUND (2L47) CLASS IS
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] MAR-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "998,869,294 "
[INVESTMENTS-AT-VALUE] "998,869,294 "
[RECEIVABLES] "4,632,887 "
[ASSETS-OTHER] "92,800 "
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] "1,003,594,981 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "2,351,634 "
[TOTAL-LIABILITIES] "2,351,634 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "143,987,376 "
[SHARES-COMMON-STOCK] "143,982,480 "
[SHARES-COMMON-PRIOR] "61,781,431 "
[ACCUMULATED-NII-CURRENT] "14,895 "
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] "106,916 "
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "144,109,187 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "3,612,109 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(417,607)"
[NET-INVESTMENT-INCOME] "3,194,502 "
[REALIZED-GAINS-CURRENT] "22,565 "
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "3,217,067 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(3,194,501)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "431,278,204 "
[NUMBER-OF-SHARES-REDEEMED] "(350,351,390)"
[SHARES-REINVESTED] "1,274,235 "
[NET-CHANGE-IN-ASSETS] "82,223,614 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] "(3,269)"
[GROSS-ADVISORY-FEES] "(150,903)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(495,254)"
[AVERAGE-NET-ASSETS] "100,623,206 "
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.03
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.03)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 0.42
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 105
[NAME] EVERGREEN SELECT MUNICIPAL MONEY MARKET FUND (2L47) CLASS I
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] MAR-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "998,869,294 "
[INVESTMENTS-AT-VALUE] "998,869,294 "
[RECEIVABLES] "4,632,887 "
[ASSETS-OTHER] "92,800 "
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] "1,003,594,981 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "2,351,634 "
[TOTAL-LIABILITIES] "2,351,634 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "857,146,090 "
[SHARES-COMMON-STOCK] "857,151,962 "
[SHARES-COMMON-PRIOR] "442,018,171 "
[ACCUMULATED-NII-CURRENT] "94,986 "
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] "(106,916)"
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "857,134,160 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "22,976,722 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(1,118,433)"
[NET-INVESTMENT-INCOME] "21,858,289 "
[REALIZED-GAINS-CURRENT] "156,625 "
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "22,014,914 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(21,858,290)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "2,228,277,950 "
[NUMBER-OF-SHARES-REDEEMED] "(1,813,875,532)"
[SHARES-REINVESTED] "731,373 "
[NET-CHANGE-IN-ASSETS] "415,253,316 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] "(29,916)"
[GROSS-ADVISORY-FEES] "(962,567)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(1,550,301)"
[AVERAGE-NET-ASSETS] "641,689,581 "
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.04
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.04)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 0.18
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 106
[NAME] EVERGREEN SELECT TREASURY MONEY MARKET FUND CLASS IS
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] AUG-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "3,801,210,606 "
[INVESTMENTS-AT-VALUE] "3,801,210,606 "
[RECEIVABLES] "23,933,719 "
[ASSETS-OTHER] "111,390 "
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] "3,825,255,715 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "291,873,706 "
[TOTAL-LIABILITIES] "291,873,706 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "1,471,842,785 "
[SHARES-COMMON-STOCK] "1,471,841,660 "
[SHARES-COMMON-PRIOR] "1,005,058,554 "
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] "(1,037)"
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "1,471,841,748 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "69,492,851 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(5,952,935)"
[NET-INVESTMENT-INCOME] "63,539,916 "
[REALIZED-GAINS-CURRENT] 280
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "63,540,196 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(63,539,917)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "5,612,606,577 "
[NUMBER-OF-SHARES-REDEEMED] "(5,153,932,210)"
[SHARES-REINVESTED] "8,108,739 "
[NET-CHANGE-IN-ASSETS] "466,782,913 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] "(1,980,763)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(6,261,551)"
[AVERAGE-NET-ASSETS] "1,320,505,720 "
[PER-SHARE-NAV-BEGIN] 0.00
[PER-SHARE-NII] 0.00
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 0.00
[EXPENSE-RATIO] 0.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 105
[NAME] EVERGREEN SELECT TREASURY MONEY MARKET FUND CLASS I
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] AUG-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "3,801,210,606 "
[INVESTMENTS-AT-VALUE] "3,801,210,606 "
[RECEIVABLES] "23,933,719 "
[ASSETS-OTHER] "111,390 "
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] "3,825,255,715 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "291,873,706 "
[TOTAL-LIABILITIES] "291,873,706 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "2,061,541,680 "
[SHARES-COMMON-STOCK] "2,061,542,055 "
[SHARES-COMMON-PRIOR] "1,256,701,423 "
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] "(1,419)"
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "2,061,540,261 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "94,705,504 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(3,608,786)"
[NET-INVESTMENT-INCOME] "91,096,718 "
[REALIZED-GAINS-CURRENT] 426
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "91,097,144 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(91,096,717)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "6,039,289,999 "
[NUMBER-OF-SHARES-REDEEMED] "(5,236,345,065)"
[SHARES-REINVESTED] "1,893,286 "
[NET-CHANGE-IN-ASSETS] "804,839,119 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] "(2,676,854)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(4,025,858)"
[AVERAGE-NET-ASSETS] "1,784,565,314 "
[PER-SHARE-NAV-BEGIN] 0.00
[PER-SHARE-NII] 0.00
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 0.00
[EXPENSE-RATIO] 0.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 106
[NAME] EVERGREEN SELECT 100% TREASURY MONEY MARKET FUND (2L70) CLASS IS
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] MAR-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "583,793,660 "
[INVESTMENTS-AT-VALUE] "583,793,660 "
[RECEIVABLES] "27,487,690 "
[ASSETS-OTHER] "34,453 "
[OTHER-ITEMS-ASSETS] "35,604,985 "
[TOTAL-ASSETS] "646,920,788 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "2,372,670 "
[TOTAL-LIABILITIES] "2,372,670 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "98,415,693 "
[SHARES-COMMON-STOCK] "98,415,693 "
[SHARES-COMMON-PRIOR] "5,496,939 "
[ACCUMULATED-NII-CURRENT] "13,818 "
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "98,429,511 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "1,940,128 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(159,617)"
[NET-INVESTMENT-INCOME] "1,780,511 "
[REALIZED-GAINS-CURRENT] "10,327 "
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "1,790,838 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(1,780,511)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "374,076,169 "
[NUMBER-OF-SHARES-REDEEMED] "(281,199,899)"
[SHARES-REINVESTED] "42,484 "
[NET-CHANGE-IN-ASSETS] "92,929,081 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (33)
[GROSS-ADVISORY-FEES] "(101,376)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(235,534)"
[AVERAGE-NET-ASSETS] "40,373,850 "
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.05
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.05)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 0.40
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 105
[NAME] EVERGREEN SELECT 100% TREASURY MONEY MARKET FUND (2L70) CLASS I
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] FEB-28-1999
[PERIOD-START] MAR-01-1998
[PERIOD-END] FEB-28-1999
[INVESTMENTS-AT-COST] "583,793,660 "
[INVESTMENTS-AT-VALUE] "583,793,660 "
[RECEIVABLES] "27,487,690 "
[ASSETS-OTHER] "34,453 "
[OTHER-ITEMS-ASSETS] "35,604,985 "
[TOTAL-ASSETS] "646,920,788 "
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] "2,372,670 "
[TOTAL-LIABILITIES] "2,372,670 "
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] "545,977,107 "
[SHARES-COMMON-STOCK] "545,977,107 "
[SHARES-COMMON-PRIOR] "245,004,690 "
[ACCUMULATED-NII-CURRENT] "141,500 "
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] "546,118,607 "
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] "20,214,436 "
[OTHER-INCOME] 0
[EXPENSES-NET] "(692,287)"
[NET-INVESTMENT-INCOME] "19,522,149 "
[REALIZED-GAINS-CURRENT] "146,018 "
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] "19,668,167 "
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] "(19,522,149)"
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] "1,309,604,631 "
[NUMBER-OF-SHARES-REDEEMED] "(1,008,655,646)"
[SHARES-REINVESTED] "23,432 "
[NET-CHANGE-IN-ASSETS] "301,118,435 "
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (994)
[GROSS-ADVISORY-FEES] "(1,033,034)"
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] "(1,416,636)"
[AVERAGE-NET-ASSETS] "413,423,578 "
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.05
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.05)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 0.17
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0

</TABLE>