<PAGE>
February 28, 1999
[ARTWORK APPEARS HERE]
Evergreen Select
Money Market Funds
Annual Report
[LOGO OF EVERGREEN FUNDS(SM) APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareholders ................................................... 1
Evergreen Select Money Market Fund
Fund at a Glance ...................................................... 2
Evergreen Select Municipal Money Market Fund
Fund at a Glance ...................................................... 3
Evergreen Select Treasury Money Market Fund
Fund at a Glance ...................................................... 4
Evergreen Select 100% Treasury Money Market Fund
Fund at a Glance ...................................................... 5
Financial Highlights
Evergreen Select Money Market Fund .................................... 6
Evergreen Select Municipal Money Market Fund .......................... 7
Evergreen Select Treasury Money Market Fund ........................... 8
Evergreen Select 100% Treasury Money Market Fund ...................... 9
Schedule of Investments
Evergreen Select Money Market Fund .................................... 10
Evergreen Select Municipal Money Market Fund .......................... 14
Evergreen Select Treasury Money Market Fund ........................... 20
Evergreen Select 100% Treasury Money Market Fund ...................... 22
Statements of Assets and Liabilities ..................................... 23
Statements of Operations ................................................. 24
Statements of Changes in Net Assets ...................................... 25
Combined Notes to Financial Statements ................................... 27
Report of Independent Accountants ........................................ 33
Additional Information ................................................... 34
- --------------------------------------------------------------------------------
Evergreen Funds
- --------------------------------------------------------------------------------
Evergreen Funds is one of the nation's fastest growing investment companies with
over $50 billion in assets under management.
With over 70 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broader range of quality investment products and
services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This annual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees, charges and other ongoing expenses, and should
be read carefully before investing or sending money.
---------------------------------------------------------------
Mutual Funds: ARE NOT FDIC INSURED May lose value . Are not bank guaranteed
---------------------------------------------------------------
Evergreen Distributor, Inc.
Evergreen/SM/ is a Service Mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
----------------------
April 1999
Dear Shareholders:
We are pleased to provide the Evergreen Select Money Market Funds annual report
covering the year ended February 28, 1999.
[PHOTO OF WILLIAM M. ENNIS MANAGING DIRECTOR APPEARS HERE]
William M. Ennis
Managing Director
[PHOTO OF DAVID C. FRANCIS, CFA MANAGING DIRECTOR APPEARS HERE]
David C. Francis, CFA
Managing Director
Increased Market Volatility in 1998
Throughout 1998, interest rates continued their decline and inflation remained
low; however, during the first two months of 1999 interest rates increased
slightly. Because of the significant market volatility in the third quarter of
1998 and the subsequent rebound in the 4th quarter, we believe investors should
be prepared for additional volatility. We remain optimistic about the economy
overall because, for almost seven years, the economy has sustained a low
inflation level along with low unemployment and solid growth. We encourage you
to take this opportunity to talk to your financial representative and review
your investment time horizon to ensure you are on track with your goals.
Introduction of the Euro
On January 1, 1999, eleven European countries adopted the euro as their
currency. Currently, the wholesale markets and government and financial sectors
have converted to the euro, and new securities will be issued in euro
denomination only. Full conversion to the new currency will not be completed
until 2002.
It is still unclear how the euro conversion will affect foreign
exchange rates, interest rates and the value of European securities, but we
believe the potential benefits to globally oriented investors are significant.
They include changes in currency risk, increased competition, and a central
bank. Foreign exchange risk may decrease for the countries participating in the
European Union; however, currency risk associated with rises and declines of the
value of the euro versus the dollar will still exist. Most noticeable for
investors will be the ability to compare the value of companies across the
European Union member countries without having to factor in the effect of
fluctuating currencies. Increased competition resulting from deregulation and
economic unification may produce a wave of merger and acquisition activity,
which could present attractive investment opportunities for those able to
identify the companies most inclined to benefit from restructuring. Finally, the
European Central Bank, comparable to the U.S. Federal Reserve, will provide
European Union countries with a unified monetary policy for the first time.
Year 2000/1/
We have been addressing the Year 2000 issue since February 1996 and have adopted
an industry best practices methodology for the project. Our team is on schedule
to complete or has completed the following milestones: Inventory and Assessment,
Remediation, Testing and Contingency. Although Evergreen Funds is striving to
identify and correct every issue under our control related to the Year 2000, it
would be impossible to guarantee a problem-free transition into the next
millennium. Our goal, however, is that our shareholders experience virtually no
impact on the products and services we deliver.
Thank you for your continued investment with Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
Managing Director
Evergreen Funds
/s/ David C. Francis
David C. Francis, CFA
Managing Director
Chief Investment Officer
First Capital Group
- --------------
1 The information above constitutes Year 2000 readiness disclosure.
1
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Select Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Commercial Paper -- 57.6%
Corporate Notes/Bonds -- 32.9%
Funding Agreements -- 4.6%
Municipals -- 2.8%
Certificates of Deposit -- 1.0%
Mutual Fund Shares -- 0.6%
Repurchase Agreements -- 0.5%
Portfolio
Management
--------------
[PHOTO OF KELLIE ALLEN APPEARS HERE]
Kellie Allen
Tenure: November 1996
[PHOTO OF BRYAN K. WHITE APPEARS HERE]
Bryan K. White
Tenure: November 1996
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Lipper
Inst. Inst.
Inst. Service Money 90-day
Shares Shares Markets Treasury
(Class I) (Class IS) Average Bill
Inception Date 11/19/96 11/26/96
................................................................................
Average Annual Total Return
................................................................................
One year return 5.53% 5.27% 5.20% 4.77%
................................................................................
Since Inception 5.63% 5.37% -- --
................................................................................
7-day annualized yield 5.02% 4.77% -- --
................................................................................
30-day annualized yield 5.01% 4.76% -- --
................................................................................
12-month distributions $0.054 $0.051 -- --
................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELDS
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class I Class IS
3/98 5.60 5.35
4/98 5.55 5.31
5/98 5.53 5.28
6/98 5.49 5.24
7/98 5.52 5.27
8/98 5.49 5.23
9/98 5.51 5.26
10/98 5.31 5.06
11/98 5.28 5.04
12/98 5.29 5.04
1/99 5.00 4.75
2/99 5.02 4.77
Total Net Assets: $5,096,187,897
Average Maturity: 61 days
An investment in the Fund is neither insured nor guaranteed by the FDIC or any
other government agency. Although the fund strives to maintain the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. Yields will fluctuate. Past performance is no guarantee of future results.
2
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Select Municipal Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Variable Rate Demand Notes -- 92.2%
Put Bonds -- 4.0%
Bonds & Notes -- 1.6%
Commercial Paper -- 1.4%
Mutual Fund Shares -- 0.8%
Portfolio
Management
--------------
[PHOTO OF STEVEN C. SHACHAT APPEARS HERE]
Steven C. Shachat
Tenure: May 1998
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Lipper
Inst.
Tax
Inst. Exempt
Inst. Service Money 90-day
Shares Shares Markets Treasury
(Class I) (Class IS) Average Bill
Inception Date 11/20/96 11/25/96
................................................................................
Average Annual Total Return
................................................................................
One year return 3.52% 3.27% 3.10% 4.77%
................................................................................
Since Inception 3.59% 3.33% -- --
................................................................................
7-day annualized yield 3.00% 2.75% -- --
................................................................................
30-day annualized yield 2.71% 2.46% -- --
................................................................................
12-month distributions $0.035 $0.032 -- --
................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class I Class IS
3/98 3.61 3.36
4/98 4.09 3.84
5/98 3.78 3.53
6/98 3.75 3.50
7/98 3.64 3.39
8/98 3.47 3.22
9/98 4.06 3.81
10/98 3.35 3.10
11/98 3.41 3.16
12/98 4.01 3.76
1/99 2.97 2.72
2/99 3.00 2.75
Total Net Assets: $1,001,243,347
Average Maturity: 11 days
An investment in the Fund is neither insured nor guaranteed by the FDIC or any
other government agency. Although the fund strives to maintain the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. Yields will fluctuate. Past performance is no guarantee of future results.
3
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Select Treasury Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Repurchase Agreements -- 76.1%
U.S. Treasury Notes -- 23.5%
Mutual Fund Shares -- 0.4%
Portfolio
Management
--------------
[PHOTO OF KELLIE ALLEN APPEARS HERE]
Kellie Allen
Tenure: November 1996
[PHOTO OF BRYAN K. WHITE APPEARS HERE]
Bryan K. White
Tenure: November 1996
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Lipper
Inst.
U.S.
Inst. Treasury
Inst. Service Money 90-day
Shares Shares Markets Treasury
(Class I) (Class IS) Average Bill
Inception Date 11/20/96 11/27/96
................................................................................
Average Annual Total Return
................................................................................
One year return 5.24% 4.97% 4.86% 4.77%
................................................................................
Since Inception 5.39% 5.13% -- --
................................................................................
7-day annualized yield 4.65% 4.40% -- --
................................................................................
30-day annualized yield 4.63% 4.38% -- --
................................................................................
12-month distributions $0.051 $0.049 -- --
................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class I Class IS
3/98 5.46 5.21
4/98 5.32 5.07
5/98 5.32 5.07
6/98 5.42 5.17
7/98 5.40 5.15
8/98 5.42 5.17
9/98 5.23 4.98
10/98 4.80 4.55
11/98 4.71 4.46
12/98 4.77 4.52
1/99 4.65 4.40
2/99 4.65 4.40
Total Net Assets: $3,533,382,009
Average Maturity: 50 days
An investment in the Fund is neither insured nor guaranteed by the FDIC or any
other government agency. Although the fund strives to maintain the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. Yields will fluctuate. Past performance is no guarantee of future results.
4
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Select 100% Treasury Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
U.S. Treasury Bills -- 56.3%
U.S. Treasury Notes -- 43.7%
Portfolio
Management
--------------
[PHOTO OF KELLIE ALLEN APPEARS HERE]
Kellie Allen
Tenure: December 1997
[PHOTO OF BRYAN K. WHITE APPEARS HERE]
Bryan K. White
Tenure: December 1997
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Lipper
Inst.
U.S.
Inst. Treasury
Inst. Service Money 90-day
Shares Shares Markets Treasury
(Class I) (Class IS) Average Bill
Inception Date 12/8/97 12/23/97
................................................................................
Average Annual Total Return
................................................................................
One year return 4.88% 4.62% 4.86% 4.77%
................................................................................
Since Inception 4.96% 4.69% -- --
................................................................................
7-day annualized yield 4.48% 4.23% -- --
................................................................................
30-day annualized yield 4.41% 4.16% -- --
................................................................................
12-month distributions $0.048 $0.045 -- --
................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class I Class IS
3/98 5.18 4.93
4/98 5.09 4.84
5/98 4.89 4.65
6/98 4.83 4.58
7/98 5.08 4.83
8/98 5.01 4.77
9/98 4.79 4.54
10/98 4.43 4.18
11/98 4.49 4.23
12/98 4.52 4.26
1/99 4.37 4.12
2/99 4.48 4.23
Total Net Assets: $644,548,118
Average Maturity: 75 days
An investment in the Fund is neither insured nor guaranteed by the FDIC or any
other government agency. Although the fund strives to maintain the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. Yields will fluctuate. Past performance is no guarantee of future results.
5
<PAGE>
E V E R G R E E N
Select Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended February 28,
--------------------------------
1999 1998 1997 (a)
<S> <C> <C> <C>
CLASS I SHARES
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%+
.............................................................................
<CAPTION>
Year Ended February 28,
--------------------------------
1999 1998 1997 (b)
<S> <C> <C> <C>
CLASS IS SHARES
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%+
.............................................................................
</TABLE>
(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.
See Combined Notes to Financial Statements.
6
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended February 28,
----------------------------
1999 1998 1997 (a)
<S> <C> <C> <C>
CLASS I SHARES
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%+
.............................................................................
<CAPTION>
Year Ended February 28,
----------------------------
1999 1998 1997 (b)
<S> <C> <C> <C>
CLASS IS SHARES
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%+
.............................................................................
</TABLE>
(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.
See Combined Notes to Financial Statements.
7
<PAGE>
E V E R G R E E N
Select Treasury Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended February 28,
--------------------------------
1999 1998 1997 (a)
<S> <C> <C> <C>
CLASS I SHARES
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%+
.............................................................................
<CAPTION>
Year Ended February 28,
--------------------------------
1999 1998 1997 (b)
<S> <C> <C> <C>
CLASS IS SHARES
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%+
.............................................................................
</TABLE>
(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.
See Combined Notes to Financial Statements.
8
<PAGE>
E V E R G R E E N
Select 100% Treasury Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
February 28,
------------------
1999 1998 (a)
<S> <C> <C>
CLASS I SHARES
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%+
.............................................................................
<CAPTION>
Year Ended
February 28,
------------------
1999 1998 (b)
<S> <C> <C>
CLASS IS SHARES
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%+
.............................................................................
</TABLE>
(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.
See Combined Notes to Financial Statements.
9
<PAGE>
E V E R G R E E N
Select Money Market Fund
Schedule of Investments
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CERTIFICATES OF DEPOSIT - 1.0%
$20,000,000 Rabobank Nederland N.V.,
5.75%, 4/27/99................................... $ 19,998,505
25,000,000 Swedbank Sparbanken Svenge,
5.85%, 5/14/99................................... 24,997,575
8,000,000 Swiss Bank (New York),
5.65%, 3/5/99.................................... 7,999,958
--------------
Total Certificates of Deposit
(cost $52,996,038)............................... 52,996,038
--------------
COMMERCIAL PAPER - 57.5%
Asset-Backed - 38.7%
40,131,000 Allomon Funding Corp.,
4.88%, 3/4/99.................................... 40,114,680
Alpine Securitization Corp.:
83,934,000 4.87%, 3/12/99.................................... 83,809,102
120,115,000 4.88%, 3/4/99..................................... 120,066,152
Atlantic Asset Securitization Corp.:
25,000,000 4.88%, 3/5/99..................................... 24,986,444
76,032,000 4.88%, 3/16/99.................................... 75,877,402
Barton Capital Corp.:
75,000,000 4.85%, 4/9/99..................................... 74,605,938
47,451,000 4.90%, 4/9/99..................................... 47,199,114
29,270,000 Bavaria Global Corp.,
4.90%, 4/6/99.................................... 29,126,577
Broadway Capital Corp.:
30,000,000 4.89%, 3/5/99..................................... 29,983,700
35,467,000 4.90%, 3/5/99..................................... 35,447,690
16,055,000 4.90%, 3/8/99..................................... 16,039,703
20,077,000 4.90%, 3/12/99.................................... 20,046,940
75,286,000 4.92%, 3/26/99.................................... 75,028,773
75,000,000 Budget Funding Corp.,
4.85%, 4/1/99.................................... 74,686,771
Concord Minutemen:
30,000,000 4.86%, 3/17/99.................................... 29,935,200
70,000,000 4.91%, 3/22/99.................................... 69,799,508
50,000,000 Corporate Recievables Corp.,
4.87%, 3/11/99................................... 49,932,361
15,000,000 Gotham Funding Corp.,
4.96%, 3/24/99................................... 14,952,467
Greenwich Funding Corp.:
100,000,000 4.87%, 3/11/99.................................... 99,864,722
62,719,000 4.87%, 3/16/99.................................... 62,591,733
Lyon Short Term Funding Corp.:
35,201,000 4.84%, 3/16/99.................................... 35,130,011
66,941,000 4.88%, 4/12/99.................................... 66,559,883
Moat Funding LLC:
40,000,000 4.90%, 4/5/99..................................... 39,809,444
50,000,000 4.92%, 4/1/99..................................... 49,788,167
50,000,000 4.95%, 4/7/99..................................... 49,745,625
50,000,000 5.32%, 3/16/99.................................... 49,889,167
30,000,000 5.37%, 3/16/99.................................... 29,932,875
31,483,000 Park Avenue Recreation Corp.,
4.85%, 3/10/99................................... 31,444,827
45,000,000 Special Purpose Accounts Recreation,
4.87%, 3/18/99................................... 44,896,512
50,000,000 Standard Credit Card Master Trust I,
4.86%, 3/3/99.................................... 49,986,500
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
COMMERCIAL PAPER - continued
Asset Backed - continued
$28,122,000 Thames Asset Global Gold Sch.,
4.86%, 3/24/99................................... $ 28,034,681
Thames Asset Global Securitization Corp.:
24,633,000 4.87%, 4/7/99..................................... 24,509,705
53,347,000 4.88%, 4/6/99..................................... 53,086,667
30,000,000 5.27%, 3/19/99.................................... 29,920,950
56,256,000 Triple A One Funding Corp.,
4.90%, 4/9/99.................................... 55,957,374
Westways Funding Corp.:
35,000,000 4.87%, 4/14/99.................................... 34,791,672
90,704,000 4.88%, 3/9/99..................................... 90,605,637
47,889,000 4.88%, 3/10/99.................................... 47,830,575
30,000,000 4.88%, 3/15/99.................................... 29,943,067
25,502,000 Windmill Funding Corp.,
4.86%, 3/24/99................................... 25,422,816
33,109,000 Wood Street Funding Corp.,
4.87%, 3/26/99................................... 32,997,027
--------------
1,974,378,159
--------------
Banks - 2.1%
75,000,000 Deutsche Bank AG (New York),
5.16%, 1/12/00................................... 75,000,000
5,000,000 Societe Generale,
5.82%, 4/1/99.................................... 4,999,919
Unibanco,
(LOC: West Deutsche Landes Bank):
25,000,000 5.49%, 4/15/99.................................... 24,828,437
--------------
104,828,356
--------------
Finance & Insurance - 14.7%
50,000,000 Aetna Svcs., Inc.,
4.98%, 3/1/99.................................... 50,000,000
50,000,000 Aristar, Inc.,
4.93%, 3/15/99................................... 49,904,139
30,000,000 Ascot Capital Corp.,
4.88%, 3/26/99................................... 29,898,333
18,000,000 Bankers Trust (New York),
4.88%, 3/2/99.................................... 17,997,560
Gotham Funding Corp.:
30,000,000 5.00%, 3/5/99..................................... 29,983,334
30,000,000 5.00%, 3/8/99..................................... 29,970,833
30,000,000 5.02%, 3/10/99.................................... 29,962,350
150,000,000 Lexington Parker Capital Corp.,
4.88%, 3/3/99.................................... 149,959,333
50,000,000 Mitsubishi Int'l. Corp.,
5.10%, 4/21/99................................... 49,638,750
Mont Blanc Capital Corp.:
55,000,000 4.87%, 4/12/99.................................... 54,687,508
75,000,000 4.89%, 3/15/99.................................... 74,857,375
37,400,000 4.89%, 4/9/99..................................... 37,201,874
34,719,000 Monte Rosa Capital Corp.,
4.87%, 3/15/99................................... 34,653,246
35,000,000 Old Line Funding Corp.,
4.87%, 3/5/99.................................... 34,981,061
</TABLE>
10
<PAGE>
E V E R G R E E N
Select Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
COMMERCIAL PAPER - continued
Finance & Insurance - continued
PHH Corp.:
$50,000,000 5.00%, 3/8/99.................................... $ 49,951,389
25,000,000 5.00%, 4/28/99................................... 24,798,611
--------------
748,445,696
--------------
Industrial Specialty Products & Services - 2.0%
Johnson Controls, Inc.:
50,000,000 4.87%, 3/1/99.................................... 50,000,000
50,000,000 5.35%, 3/5/99.................................... 49,970,278
--------------
99,970,278
--------------
Total Commercial Paper
(cost $2,927,622,489)........................... 2,927,622,489
--------------
CORPORATE BONDS & NOTES - 32.8%
Asset-Backed - 10.7%
29,800,000 Asset Backed Capital Fin., Inc.,
4.90%, 3/5/99................................... 29,783,775
Beta Financial Corp.:
10,000,000 5.69%, 3/5/99 (a)................................ 10,000,000
22,000,000 5.745%, 3/16/99 (a).............................. 22,004,160
55,000,000 Bravo Trust Series,
5.08%, 4/15/99 (a).............................. 55,000,000
Centauri Fin. Corp.:
10,000,000 5.49%, 3/26/99 (a)............................... 10,000,000
FRN:
40,000,000 5.15%, 1/19/00 (a)............................... 40,000,000
50,000,000 5.196%, VRDN (a)................................. 50,000,000
Contimortgage Home Equity Loan Trust:
28,617,255 5.51%, 9/15/99................................... 28,617,255
18,000,000 Heller Pass-Through Asset Trust,
6.35%, 8/15/99.................................. 18,059,804
30,000,000 Liberty Lighthouse United States Capital, MTN,
5.26%, 2/10/00.................................. 30,000,000
33,000,000 Restructured Asset Securitization, 5.14%, VRDN
(a)............................................. 33,000,000
Sigma Fin. Corp.:
120,000,000 4.86%, 3/26/99 (a)............................... 119,595,000
40,000,000 4.99%, VRDN (a).................................. 40,000,000
33,900,000 5.192%, 2/24/00 (a).............................. 33,899,666
25,000,000 5.705%, 3/2/99 (a)............................... 25,000,000
--------------
544,959,660
--------------
Automotive Equipment & Manufacturing - 1.1%
17,706,000 Ford Motor Credit Co.,
7.75%, 10/1/99.................................. 17,972,910
General Motors Acceptance Corp.:
2,500,000 8.00%, 10/1/99................................... 2,540,599
MTN:
6,250,000 6.25%, 10/18/99.................................. 6,292,919
2,070,000 6.375%, 10/12/99................................. 2,085,327
5,085,000 6.40%, 5/19/99................................... 5,090,811
23,995,000 7.375%, 4/15/99.................................. 24,041,225
--------------
58,023,791
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS & NOTES - continued
Banks - 2.9%
$14,430,000 Chase New York Corp.,
9.75%, 6/15/99................................... $ 14,590,041
12,225,000 Midlantic Corp.,
9.875%, 12/1/99.................................. 12,617,131
38,250,000 National City Capital Trust,
6.75%, 6/1/99.................................... 38,368,783
Orix America, Inc.:
34,000,000 5.05%, 5/4/99..................................... 34,000,000
25,000,000 5.85%, 3/15/99.................................... 25,000,000
9,069,000 Sovran Fin. Corp.,
9.75%, 6/15/99................................... 9,166,924
11,600,000 Tokai Financial Svcs., Inc.,
6.20%, 6/18/99 (a)............................... 11,622,791
--------------
145,365,670
--------------
Brokers - 7.9%
20,000,000 Bear Stearns Co., Inc., MTN,
6.40%, 12/27/99.................................. 20,188,432
40,000,000 Credit Suisse First Boston Inc., MTN,
5.30%, VRDN...................................... 40,000,000
Goldman Sachs Group LP, MTN:
30,000,000 5.35%, 3/17/99, VRDN.............................. 30,000,000
55,000,000 5.55%, 3/2/99, VRDN (a)........................... 55,000,000
15,000,000 6.82%, 12/15/99 (a)............................... 15,200,800
25,000,000 J.P. Morgan & Co., Inc., MTN,
5.75%, 3/10/99................................... 25,000,000
Lehman Brothers Holdings, Inc.:
55,000,000 5.06%, VRDN....................................... 55,000,000
11,500,000 6.30%, 8/11/99.................................... 11,530,508
20,875,000 6.625%, 1/24/00................................... 21,078,809
14,425,000 6.70%, 1/24/00.................................... 14,558,128
6,500,000 6.71%, 10/12/99................................... 6,559,946
10,000,000 7.11%, 9/27/99.................................... 10,108,350
12,551,000 7.625%, 7/15/99................................... 12,650,972
25,000,000 8.875%, 2/15/00................................... 25,710,323
2,500,000 10.00%, 5/15/99................................... 2,520,114
Merrill Lynch & Co., Inc., MTN:
40,000,000 5.09%, 2/7/00..................................... 40,000,000
9,360,000 6.77%, 4/15/99.................................... 9,370,331
10,000,000 Morgan Stanley Dean Witter Discover & Co.,
5.34%, 3/13/99................................... 10,000,000
--------------
404,476,713
--------------
Finance & Insurance - 9.0%
64,000,000 Aetna Svcs., Inc.,
5.66%, VRDN...................................... 64,000,000
62,400,000 Countrywide Funding Corp., MTN, 5.20%, 1/11/00.... 62,400,000
Finova Capital Corp.:
7,575,000 8.00%, 2/1/00..................................... 7,755,597
MTN:
2,000,000 6.19%, 10/20/99................................... 2,012,637
6,000,000 6.28%, 11/1/99.................................... 6,030,763
10,000,000 6.29%, 11/1/99.................................... 10,072,078
Puttable Asset Trust Securities
15,000,000 6.125%, 11/1/99................................... 15,058,520
</TABLE>
11
<PAGE>
E V E R G R E E N
Select Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS & NOTES - continued
Finance & Insurance - continued
Heller Financial, Inc.:
$10,000,000 7.875%, 11/1/99................................... $ 10,153,765
MTN:
10,000,000 5.27%, 4/25/99.................................... 9,996,256
7,850,000 6.64%, 5/13/99.................................... 7,863,971
40,000,000 IBM Credit Corp., MTN,
5.18%, VRDN...................................... 39,998,627
PHH Corp., MTN:
20,000,000 5.01%, VRDN....................................... 20,000,000
50,000,000 5.86%, 7/26/99.................................... 50,000,961
20,000,000 5.875%, 8/4/99.................................... 20,000,000
Transamerica Fin. Corp.:
6,160,000 6.80%, 3/15/99.................................... 6,162,523
MTN:
87,000,000 5.22%, VRDN....................................... 87,001,908
4,000,000 5.95%, 12/6/99.................................... 4,023,472
4,000,000 6.00%, 12/6/99.................................... 4,024,826
30,000,000 Xerox Credit Corp., MTN,
5.11%, 3/21/00................................... 29,987,208
--------------
456,543,112
--------------
Industrial Specialty Products & Services - 0.7%
35,000,000 Caterpillar Fin. Svc., Inc.,
4.99%, 4/7/99.................................... 34,994,002
--------------
Insurance - 0.3%
13,404,000 Hartford National Corp.,
9.85%, 6/1/99.................................... 13,531,645
--------------
Retailing & Wholesale - 0.1%
Sears Roebuck Acceptance Corp., MTN:
2,000,000 6.22%, 3/25/99.................................... 2,000,577
5,000,000 8.30%, 12/13/99................................... 5,118,359
--------------
7,118,936
--------------
Transportation - 0.1%
6,540,000 Greyhound Fin. Corp.,
6.75%, 3/25/99................................... 6,543,738
--------------
Total Corporate Bonds & Notes
(cost $1,671,557,267)............................ 1,671,557,267
--------------
FUNDING AGREEMENTS - 4.6%
75,000,000 General American, Cash Manager Plus,
5.14%, VRDN (a).................................. 75,000,000
50,000,000 Jackson National Funding,
5.93%, 7/20/99 (a)............................... 50,000,000
25,000,000 Jackson National Life Insurance Co.,
5.91%, 6/29/99 (a)............................... 25,000,000
Monumental Life Insurance Co.:
20,000,000 5.06%, 3/25/99 (a)................................ 20,000,000
40,000,000 5.08%, 3/8/99 (a)................................. 40,000,000
25,000,000 Pacific Mutual Life Insurance Co.,
5.37%, VRDN (a).................................. 25,000,000
--------------
Total Funding Agreements
(cost $235,000,000).............................. 235,000,000
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPALS - 2.8%
$ 7,210,000 Ali Inds., Inc.,
(LOC: National City Bank)
4.91%, VRDN (a)................................. $ 7,210,000
12,170,000 California, HFA, Ser. G2,
5.02%, VRDN (a)................................. 12,170,000
11,210,000 Coventry Madison LLC, Loan Program Notes,
4.88%, VRDN..................................... 11,210,000
15,080,000 FE LLC, Ser. A,
(LOC: National City Bank)
4.88%, VRDN..................................... 15,080,000
14,000,000 Hannahville, MI, Bldg. Program Bonds,
(LOC: National City Bank)
4.88%, VRDN..................................... 14,000,000
9,995,000 Hudson Cnty., NJ, Impt. Auth. Fac. Certificates,
Ser. L,
5.30%, VRDN (a)................................. 9,995,000
14,995,000 Indiana HFA, SFHRB, Ser. H,
4.97%, VRDN..................................... 14,995,000
20,000,000 Massachusetts HFA, Ser. K,
4.97%, VRDN..................................... 20,000,000
16,995,000 San Diego, CA, Pub. Facs. Fin., Ser. M,
5.02%, VRDN (a)................................. 16,995,000
6,270,000 Wise Investments LLC,
(LOC: First of America Bank)
4.88%, VRDN..................................... 6,270,000
7,400,000 Chancellor Ridge,
4.95%, VRDN..................................... 7,400,000
5,745,000 Folk Financial, Ser. A,
(LOC: First of America Bank N.A.)
4.88%, VRDN..................................... 5,745,000
--------------
Total Municipals
(cost $141,070,000)............................. 141,070,000
--------------
REPURCHASE AGREEMENT - 0.5%
$24,212,314 Dresdner Bank AG,*
4.73%, dated 2/26/99, due 3/1/99
(cost $24,212,314).............................. 24,212,314
--------------
</TABLE>
12
<PAGE>
E V E R G R E E N
Select Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 0.6%
2,000,000 Fidelity Institutional Cash Fund.................. $ 2,000,000
29,067,681 Fidelity U.S. Treasury Portfolio.................. 29,067,681
--------------
Total Mutual Fund Shares
(cost $31,067,681)............................... 31,067,681
--------------
</TABLE>
<TABLE>
<S> <C> <C>
Total Investments -
(cost $5,083,525,789)..................... 99.8% 5,083,525,789
Other Assets and
Liabilities - net......................... 0.2 12,662,108
----- --------------
Net Assets - .............................. 100.0% $5,096,187,897
===== ==============
</TABLE>
Variable Rate Demand Notes are payable on demand on no more than
seven calendar days notice given by the Fund to the issuer or other
parties not affiliated with the issuer. Interest rates are determined
and reset by the issuer daily, weekly, or monthly depending upon the
terms of the security. Interest rates presented for these securities
are those in effect at February 28, 1999.
(a) Securities may be sold to "qualified institutional buyers" under
Rule 144A or securities offered pursuant to Section 4(2) of the
Securities Act of 1933, as amended. These securities have been
determined to be liquid under the guidelines established by the
Board of Trustees.
*Collateralized by $25,005,000 U.S. Treasury Bills, 5/27/99 to 6/10/99;
value including accrued interest--$24,697,034.
Summary of Abbreviations:
FRN Floating Rate Note
HFA Housing Finance Authority
LOC Letter of Credit
MTN Medium Term Note
SFHRB Single Family Housing Revenue Bond
VRDN Variable Rate Demand Note
See Combined Notes to Financial Statements.
13
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Schedule of Investments
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 99.0%
Alabama - 1.4%
$ 2,000,000 Haleyville, AL IDRB, Babcock Lumber Co. Proj.,
(LOC: First Commercial Bank), 3.25%, VRDN...... $ 2,000,000
5,000,000 Huntsville, AL IDRB, Hitachi Seiki, USA Proj.,
(LOC: Bank of Tokyo-Mitsubishi), 4.25%, VRDN... 5,000,000
2,500,000 Montgomery, AL IDRB,
(LOC: First Commercial Bank of Birmingham),
3.20%, VRDN (a)................................ 2,500,000
2,000,000 South Dallas, AL IDA, Cahaba Valley Lumber
Proj.,
(LOC: Amsouth Bank, N.A.),
3.20%, VRDN.................................... 2,000,000
Tuscaloosa Cnty., AL IDA, (LOC: Amsouth Bank,
N.A.):
1,250,000 Brion Hardin Proj.,
3.35%, VRDN..................................... 1,250,000
1,300,000 Hardwear Corp. Proj.,
3.35%, VRDN..................................... 1,300,000
---------------
14,050,000
---------------
Alaska - 0.3%
2,500,000 Alaska Hsg. Fin. Corp.,
(LIQ: Merrill Lynch & COLL: FNMA),
3.40%, VRDN (a)................................ 2,500,000
---------------
Arizona - 1.1%
11,250,000 Coconino Cnty., AZ Unified Sch. Dist. #1,
(LOC: Flagstaff Bank),
4.10%, 7/31/99................................. 11,250,000
---------------
Arkansas - 0.8%
8,300,000 Conway Cnty., AR IDRB, Cardon Creek Fibre Corp.,
Ser. 1995, (LOC: KBC Bank N.V.),
3.15%, VRDN.................................... 8,300,000
---------------
California - 4.6%
California CDA, IDRB:
5,000,000 Nichirin-Flex Proj.,
(LOC: Dai-Ichi Kangyo Bank),
5.00%, VRDN..................................... 5,000,000
15,400,000 Sutter Hlth. Obl. Group,
(LOC: Industrial Bank of Japan & Ins. by AMBAC),
3.55%, VRDN..................................... 15,400,000
8,600,000 Los Angeles, CA MHRB, Channel Gateway Apts.,
Ser. 89B,
(LOC: Fuji Bank, Ltd.),
4.50%, VRDN.................................... 8,600,000
13,900,000 Olcese, CA Wtr. Dist. COPs, Rio Bravo Wtr.
Delivery Proj., Ser. A, (LOC: Sumitomo Bank,
Ltd.),
5.25%, 3/16/99................................. 13,900,000
2,755,000 San Francisco, CA IDA, Hoefer Scientific Proj.,
Ser. A,
(LOC: Sumitomo Bank, Ltd.),
4.55%, VRDN.................................... 2,755,000
---------------
45,655,000
---------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Colorado - 1.4%
$ 3,000,000 Arapahoe Cnty., CO Sch. Dist. #5, Cherry Creek,
Ser. 1996A,
(LOC: Northwest Bank),
3.30%, VRDN (a)................................ $ 3,000,000
3,375,000 Colorado HFA, RB, Children's Hosp., Ser. 1996B,
(LOC: Northwest Bank & Ins. by MBIA),
3.30%, VRDN (a)................................ 3,375,000
3,350,000 Colorado Postsecond Edl. Fac., Denver Univ.,
Ser. 1996C,
(LOC: Northwest Bank & Ins. by AMBAC),
3.30%, VRDN (a)................................ 3,350,000
4,300,000 Colorado Springs, CO Util. Sys. Impt., Floating
Rate Trust Receipt, Ser. 1998-19,
(LOC: Bank of New York),
3.15%, VRDN (a) ............................... 4,300,000
---------------
14,025,000
---------------
Connecticut - 0.3%
3,245,000 Connecticut IDRB, Zotos Int'l. Proj., (LOC: Dai-
Ichi Kangyo Bank, Ltd),
5.35%, VRDN.................................... 3,245,000
---------------
Delaware - 1.2%
Delaware EDA, RB, Delmarva Pwr. & Light Co.
Proj.,
(Gtd. by Delmarva P&L):
3,000,000 Ser. 87A,
3.45%, VRDN..................................... 3,000,000
9,200,000 Ser. 94,
3.45%, VRDN..................................... 9,200,000
---------------
12,200,000
---------------
District of Columbia - 0.2%
2,000,000 Washington, D.C. GO, Ser. A-6, (LOC: Sumitomo
Bank, Ltd.),
3.35%, VRDN.................................... 2,000,000
---------------
Florida - 2.0%
20,000 Capital Proj. Fin. Auth., FL RB, Capital Proj.
Loan Program,
(SPA: Credit Suisse First Boston & Ins. by
FSA),
2.90%, VRDN.................................... 20,000
2,800,000 Florida Board of Ed. RB, ABN-Amro Munitops
Certificates Trust, Ser.1998-9,
(LOC: ABN Amro Bank N.V. & Ins. by FSA),
3.07%, VRDN (a)................................ 2,800,000
Florida Turnpike Auth., Turnpike RB:
3,350,000 (LOC: Northwest Bank & Ins. by MBIA),
3.07%, VRDN (a)................................. 3,350,000
5,000,000 Ser. 1996A,
(LOC: Chase Manhattan Bank & Ins. by FGIC),
3.30%, VRDN (a)................................. 5,000,000
7,000,000 Miami-Dade Cnty., FL IDRB, Professional
Modification Svcs. Inc. Proj.,
(LOC: Bankers Trust Co.),
3.10%, VRDN.................................... 7,000,000
</TABLE>
14
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 1,500,000 Orlando & Orange Cnty., FL, Expressway RB,
(LOC: Northwest Bank & Ins. by AMBAC),
3.30%, VRDN (a)................................. $ 1,500,000
--------------
19,670,000
--------------
Georgia - 0.5%
5,000,000 Macon Trust Pooled Variable Rate Certificates,
Ser. 1998A
(LOC: Bank of America NT & SA),
3.12%, VRDN (a)................................. 5,000,000
--------------
Hawaii - 2.1
Hawaii GO:
19,620,000 Ser. 1997 CN,
(LIQ: Toronto Dominion & Ins. by FGIC),
3.07%, VRDN (a).................................. 19,620,000
1,000,000 Ser. CF,
4.25%, 7/1/99.................................... 1,003,300
--------------
20,623,300
--------------
Idaho - 1.1%
1,100,000 Bonner Cnty., ID IDA, McFarland Cascade Proj.,
(LOC: U.S. Bank of Washington, N.A.),
3.05%, VRDN..................................... 1,100,000
5,335,000 Idaho Hlth. Facs. Auth., Holy Cross Hlth. Sys.,
(LIQ: Merrill Lynch & Ins. by MBIA),
3.25%, VRDN (a)................................. 5,335,000
5,000,000 Minidoka Cnty., ID IDA, Nature's Best Produce
Proj.,
(LOC: Banque Nationale Paris),
3.05%, VRDN..................................... 5,000,000
--------------
11,435,000
--------------
Illinois - 6.2%
15,000,000 Chicago, IL GO, ABN-Amro Munitops Cerificates
Trust, Ser. 1998-3,
(SPA: ABN-Amro Bank N.V. & Ins. by FGIC),
3.09%, VRDN (a)................................. 15,000,000
5,150,000 Chicago, IL O'Hare Int'l. Arpt. RB, PFOTER, PT-
1002,
(LIQ: Merrill Lynch & Ins. by AMBAC),
3.02%, VRDN (a)................................. 5,150,000
1,925,000 Illinois Dev. Fin. Auth., IDRB, Kris & Dee
Assoc., Inc. Proj.,
(LOC: Bronson-Gore Bank & LaSalle National
Bank),
3.20%, VRDN..................................... 1,925,000
Illinois Hlth. Fac. Auth.,
(LOC: Bear Stearns Capital Markets & Ins. by
AMBAC):
6,100,000 Ser. 1997-20, Cl. A,
3.12%, VRDN (a).................................. 6,100,000
12,970,000 Ser. 1997-21,
3.12%, VRDN (a).................................. 12,970,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Illinois - continued
$ 930,000 Lombard, IL IDRB, Chicago Roll Co. Proj., Ser.
1995,
(LOC: ANB & Tr., Chicago),
3.15%, VRDN..................................... $ 930,000
20,000,000 Metropolitan Pier & Exposition Auth., IL PFOTER,
PX-1,
(LIQ: Merrill Lynch & Ins. by FGIC),
3.25%, VRDN (a)................................. 20,000,000
--------------
62,075,000
--------------
Indiana - 3.0%
11,300,000 Indiana Dev. Fin. Auth., Env., RB, PSI Energy,
Inc. Proj., Ser. 1998,
(LOC: Morgan Guaranty Trust),
3.35%, VRDN..................................... 11,300,000
12,000,000 Indiana Hlth. Facs. Fin. Auth., RB, Mary Sherman
Hosp. Proj.,
(LOC: Harris Trust & Savings Bank),
3.15%, VRDN..................................... 12,000,000
5,230,000 Madison, IN IDRB, Century Tube Corp. Proj., Ser.
1997,
(LOC: Bank of Tokyo-Mitsubishi Ltd.),
4.10%, VRDN..................................... 5,230,000
Mount Vernon, IN Solid Wst. Disposal, RB, B & M
Plastics, Inc. Proj.,
(LOC: Suntrust Bank, Nashville):
925,000 Ser. 97A,
3.20%, VRDN...................................... 925,000
925,000 Ser. 97B,
3.20%, VRDN...................................... 925,000
--------------
30,380,000
--------------
Iowa - 1.6%
5,370,000 Iowa Fin. Auth. Hosp. Facs. RB, (LOC: Bear
Stearns Capital Markets & Ins. by MBIA),
3.10%, VRDN (a)................................. 5,370,000
7,400,000 Iowa Fin. Auth. RB, Burlington Med. Ctr. Proj,
(LOC: First Bank, Milwaukee & Ins. by FSA),
3.00%, 3/4/99................................... 7,400,000
2,800,000 Scott Cnty., IA IDRB, M.A. Ford Manufacturing Co.
Proj., Ser. 1997,
(LOC: Firstar Bank of Milwaukee),
3.10%, VRDN..................................... 2,800,000
--------------
15,570,000
--------------
Kansas - 0.6%
Johnson Cnty., KS Private Activity RB, Stouse
Sign & Decal Proj.,
(LOC: Mercantile Bank of St. Louis):
1,500,000 3.32%, VRDN (a).................................. 1,500,000
2,700,000 3.32%, VRDN (a).................................. 2,700,000
</TABLE>
15
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Kansas - continued
$ 1,000,000 Kansas Dev. Fin. Auth. IDA, Farmland Foods Proj.,
(LOC: Rabobank Nederland),
3.20%, VRDN..................................... $ 1,000,000
1,000,000 Liberal, KS IDRB, Farmland National Beef Packing
Proj.,
(LOC: U.S. Bank, N.A.),
3.20%, VRDN..................................... 1,000,000
--------------
6,200,000
--------------
Kentucky - 0.8%
1,400,000 Hopkinsville, KY IDRB, American Precision
Machinery,
(LOC: Bank of Tokyo-Mitsubishi),
4.15%, VRDN..................................... 1,400,000
5,000,000 Jefferson Cnty., KY Indl. Bldg., RB, Dant Clayton
Corp. Proj.,
(LOC: Harris Trust & Savings Bank),
3.25%, VRDN..................................... 5,000,000
1,250,000 Ohio Cnty., KY PCRB, Thomas Inds. Proj., Ser.
1998,
(LOC: National City Bank, Kentucky),
3.20%, VRDN..................................... 1,250,000
--------------
7,650,000
--------------
Louisiana - 0.6%
1,000,000 Grant Parish, LA IDRB, Farmland Inds. Proj., Ser.
1998,
(LOC: Rabobank Nederland N.V.),
3.20%, VRDN..................................... 1,000,000
4,995,000 Louisiana HFA, RB, PFOTER,
(SPA: Credit Suisse First Boston & COLL: GNMA),
3.07%, VRDN (a)................................. 4,995,000
--------------
5,995,000
--------------
Maryland - 0.9%
9,485,000 Maryland GO, Bankers Trust Participant, BTP-271,
(LOC: Toronto Dominion),
3.15%, VRDN (a)................................. 9,485,000
--------------
Massachusetts - 0.5%
Massachusetts IFA:
2,700,000 Battery Engineering Proj., Ser. 96, (LOC: Bank of
Tokyo-Mitsubishi),
4.25%, VRDN...................................... 2,700,000
2,400,000 Weissman Realty Trust, Ser. 1998,
(LOC: Citizens Bank of Rhode Island),
3.15%, VRDN (a).................................. 2,400,000
--------------
5,100,000
--------------
Michigan - 2.4%
21,305,000 Michigan Trunk Line MSTR, Muni. Trust
Certificates Class A,
(LOC: Bank One Capital Holdings & Ins. by MBIA),
3.12%, VRDN (a)................................. 21,305,000
2,820,000 Monroe Cnty., MI PCRB, PFOTER, PT-1018,
(LOC: Merrill Lynch and Ins. by FGIC),
3.02%, VRDN (a)................................. 2,820,000
--------------
24,125,000
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Minnesota - 1.0%
$ 5,750,000 Burnsville, MN MHRB, Refunding Hsg., Berkshire
Proj.,
(LOC: Sumitomo Bank, Ltd.),
4.40%, VRDN..................................... $ 5,750,000
2,700,000 Minnesota Wtr. PCRB, Ser. 98-1, (LIQ: Commerzbank
AG),
3.07%, VRDN (a)................................. 2,700,000
1,500,000 St. Paul, MN Port Auth., IDRB, Miratec Sys. Inc.
Proj., Ser. A, (LOC: U.S. Bank, N.A.),
3.35%, VRDN..................................... 1,500,000
--------------
9,950,000
--------------
Mississipi - 0.5%
5,000,000 Mississipi Business Fin. Corp., Morton Int'l.,
Inc. Proj., Ser. A, (Gtd. by Morton Int'l.),
3.25%, VRDN..................................... 5,000,000
--------------
Missouri - 1.8%
1,000,000 Jasper Cnty., MO IDRB, Farmers Chemical Co.
Proj.,
(LOC: Rabobank Nederland N.V.),
3.20%, VRDN..................................... 1,000,000
3,960,000 Missouri Hsg. Dev. Community Mtge., RB, PFOTER,
PT-157,
(LIQ: Merrill Lynch & COLL: GNMA),
3.02%, VRDN (a)................................. 3,960,000
13,060,000 St. Louis Cnty., MO MHRB, PFOTER, PT-1015,
(LIQ: Merrill Lynch),
3.02%, VRDN (a)................................. 13,060,000
--------------
18,020,000
--------------
Nebraska - 4.5%
2,510,000 Buffalo Cnty., NE IDRB, Agrex, Inc. Proj., Ser.
1985,
(LOC: Dai-Ichi Kangyo Bank & Bank of Tokyo-
Mitsubishi),
4.70%, VRDN..................................... 2,510,000
1,000,000 Gage Cnty., NE IDRB, Farmland Inds., Inc. Proj.,
(LOC: Rabobank Nederland),
3.20%, VRDN..................................... 1,000,000
5,245,000 Nebraska Higher Ed. Loan Program, PFOTER, PT-79,
(LOC: Bank Nationale de Paris),
3.02%, VRDN (a)................................. 5,245,000
Nebraska Pub. Pwr. Dist. RB,
(LOC: Bank One Capital Holdings & Ins. by MBIA):
10,890,000 Ser. A,
3.12%, VRDN (a).................................. 10,890,000
19,800,000 Muni. Trust Certificate Program,
3.12%, VRDN (a).................................. 19,800,000
5,100,000 Nuckolls Cnty., NE IDRB, Agrex, Inc. Proj., Ser.
1985,
(LOC: Dai-Ichi Kangyo Bank & Bank of Tokyo-
Mitsubishi),
4.70%, VRDN..................................... 5,100,000
1,000,000 Saline Cnty., NE IDRB, Farmland Foods Proj., Ser.
1997B,
(LOC: Rabobank Nederland N.V.),
3.20%, VRDN..................................... 1,000,000
--------------
45,545,000
--------------
</TABLE>
16
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Nevada - 1.9%
$10,995,000 Clark Cnty., NV IDRB, PFOTER, PA-344,
(LIQ: Merrill Lynch),
3.07%, VRDN (a)................................. $ 10,995,000
8,350,000 Nevada GO Capital Impt.,
Muni. Trust Certificates,
Ser. 1998B Class A,
(LOC: Bank One Captial
Holdings, Inc.),
3.12%, VRDN (a)................................. 8,350,000
--------------
19,345,000
--------------
New Hampshire - 0.8%
2,500,000 New Hampshire Business Fin. Auth., IDRB, Voith
Sulzer Paper Proj., Ser. 97,
(LOC: Firstar Bank, Milwaukee),
3.10%, VRDN..................................... 2,500,000
5,045,000 New Hampshire HFA, SFHRB, PFOTER, PT-115,
(LIQ: Rabobank Nederland N.V.),
3.02%, VRDN (a)................................. 5,045,000
--------------
7,545,000
--------------
New Jersey - 0.6%
5,500,000 New Jersey Trust Fund Auth., Transportation Sys.
RB,
(LOC: Chase Manhattan Bank & Ins. by FSA),
3.02%, VRDN (a)................................. 5,500,000
--------------
New York - 4.8%
7,300,000 Franklin Cnty., NY IDRB, Kes Chateaugay Proj.,
Ser. 1991A, (LOC: Bank of Tokyo-Mitsubishi),
4.40%, VRDN..................................... 7,300,000
6,750,000 New York City, NY GO, PFOTER, PA-156,
(LIQ: Merrill Lynch),
3.04%, VRDN (a)................................. 6,750,000
21,845,000 New York City, NY Muni. Wtr. & Swr., ABN-Amro
Munitops Certificates Trust, Ser. 1998-2, (LOC:
ABN Amro Bank N.V. & Ins. by AMBAC),
3.09%, VRDN (a)................................. 21,845,000
New York Thruway Auth.:
1,530,000 Local Hwy. & Bridge Svcs., PFOTER, PA-172,
(LIQ: Merrill Lynch),
3.07%, VRDN (a).................................. 1,530,000
9,600,000 MSTR, Ser. D,
(SPA: Societe Generale),
3.40%, VRDN (a).................................. 9,600,000
1,000,000 Syracuse, NY GO, (LOC: Syracuse, NY),
4.50%, 6/30/99.................................. 1,003,376
--------------
48,028,376
--------------
North Carolina - 1.6%
10,875,000 North Carolina Eastern Pwr. Agcy., ROCs, Ser. 98-
46,
(LIQ: Toronto Dominion),
3.07%, VRDN (a)................................. 10,875,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
North Carolina - continued
$ 5,000,000 Robeson Cnty., NC Indl. Facs., PCRB, Core Inds.,
Inc.
Proj., Ser. 1991,
(LOC: Bank One, N.A.),
3.15%, VRDN..................................... $ 5,000,000
--------------
15,875,000
--------------
Ohio - 2.3%
22,600,000 Hamilton Cnty., OH Hlth. Sys. RB, Franciscan
Sisters Poor Hlth. Proj., (LOC: Sumitomo Bank,
Ltd.),
3.90%, VRDN..................................... 22,600,000
--------------
Oklahoma - 0.1%
1,000,000 Garfield Cnty., OK IDRB, Farmland Inds. Inc.
Proj., Ser. 1998,
(LOC: Rabobank Nederland N.V.),
3.20%, VRDN..................................... 1,000,000
--------------
Oregon - 1.9%
3,900,000 Metropolitan Svc. Dist., OR Wst. Disposal RB,
Riedel Compost Co. Proj.,
(LOC: U.S. Bank, N.A.),
3.15%, VRDN..................................... 3,900,000
15,600,000 Oregon EDA, RB, GA Pacific Corp. Proj., Ser. 98,
(LOC: Deutsche Bank),
3.22%, VRDN..................................... 15,600,000
--------------
19,500,000
--------------
Pennsylvania - 3.0%
10,000,000 Cmnwlth. of PA, Tender Option Certificates,
(LOC: Chase Manhattan
Bank & Ins. by FGIC),
3.07%, VRDN (a)................................. 10,000,000
10,925,000 Montgomergy Cnty., PA, Abbington Memorial Hosp.,
Ser. 1998 31, Cl. A,
(LIQ: Bear Stearns Capital Markets & Ins. by
AMBAC),
3.20%, VRDN (a)................................. 10,925,000
5,015,000 Philadelphia, PA Arpt. RB, Muni. Security Trust
Certificate,
Ser. 1998A,
(LOC: Bank One Capital Holdings & Ins. by FGIC),
3.15%, VRDN (a)................................. 5,015,000
4,000,000 Philadelphia, PA Wtr. & Wst. Wtr. Mgmt. RB,
(LOC: Commerz Bank & Ins. by AMBAC),
3.12%, 3/4/99 (a)............................... 4,000,000
--------------
29,940,000
--------------
South Carolina - 1.1%
1,850,000 Aiken Cnty., SC Consolidated
Sch. Dist.,
(LOC: SCSDE),
4.25%, 4/1/99................................... 1,850,567
South Carolina Jobs EDA RB:
3,500,000 Ebyl Cartex, Inc. Proj.,
(LOC: Southtrust Bank, N.A.),
3.22%, VRDN...................................... 3,500,000
5,500,000 Mita, SC, Inc. Proj.,
(LOC: Bank of Tokyo-Mitsubishi),
4.25%, VRDN...................................... 5,500,000
--------------
10,850,567
--------------
</TABLE>
17
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Tennessee - 0.5%
$ 4,995,000 Henderson, TN IDB, Premier Manufacturing Corp.,
Ser. 95, (LOC: National City Bank),
3.10%, VRDN..................................... $ 4,995,000
--------------
Texas - 6.4%
9,000,000 Amarillo, TX Hlth. Facs. Corp. RB, Panhandle
Pooled Hlth. Care, (LOC: Banque Paribas),
3.10%, VRDN..................................... 9,000,000
Brazos River, TX Harbor Navigation Dist. RB:
3,400,000 BASF Corp. Proj.,
(Gtd. by BASF Corp.),
3.25%, 3/1/99.................................... 3,400,000
14,700,000 Merey Sweeney Proj.,
(LOC: Chase Manhattan Bank & Gtd. by BASF Corp.),
3.40%, VRDN...................................... 14,700,000
6,570,000 Brazosport, TX Independent Sch. Dist., ROCs, Ser.
98-19,
(LIQ: Toronto Dominion & Gtd. by Perm. Sch.
Fund),
3.07%, VRDN (a)................................. 6,570,000
4,900,000 Cypress-Fairbanks, TX Independent Sch. Dist.,
PFOTER,
(LIQ: Merrill Lynch & Gtd. by Perm. Sch. Fund),
3.25%, VRDN (a)................................. 4,900,000
2,830,000 Galveston, TX HFA, MHRB, Village-By-The-Sea Apts.
Proj.,
(LOC: Sumitomo Bank, Ltd.),
4.45%, VRDN..................................... 2,830,000
7,000,000 Gulf Coast, TX IDA, Nisseki Chemical Proj.,
(LOC: Bank of Tokyo-Mitsubishi),
4.25%, VRDN..................................... 7,000,000
11,000,000 Texas GO, ROCs, Ser. 98-11,
(LIQ: Toronto Dominion),
3.07%, VRDN (a)................................. 11,000,000
4,595,000 Texas Pub. Fin. Auth. Bldg. RB, General Svcs.
Commision Proj., (LOC: Citibank, N.A. & Ins. by
AMBAC),
3.12%, VRDN (a)................................. 4,595,000
--------------
63,995,000
--------------
Virginia - 1.2%
1,900,000 Buena Vista, VA IDRB, Everbrite, Inc. Proj.,
(LOC: Marshall & Isley Bank),
3.30%, VRDN..................................... 1,900,000
1,500,000 Chesapeake, VA IDA, Sumitomo Machine Co. Proj.,
(LOC: Sumitomo Bank),
4.40%, VRDN..................................... 1,500,000
8,200,000 Peninsula Port Auth. of VA IDRB, Kinyo, VA, Inc.
Proj.,
(LOC: Industrial Bank of Japan),
4.25%, VRDN..................................... 8,200,000
--------------
11,600,000
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Washington - 5.5%
$ 7,676,000 Port of Seattle, WA, ABN Munitops Certificates
Trust, Ser. 1998-16, (LOC: ABN Amro Bank N.V. &
Ins. by MBIA),
3.09%, VRDN (a)................................. $ 7,676,000
2,000,000 Washington EDA, Ace Tank Proj., (LOC: U.S. Bank,
N.A.),
3.15%, VRDN..................................... 2,000,000
4,475,000 Washington HFA, MHRB, Cedar Landing Apt. Proj.,
Ser. 1998A, (LOC: U.S. Bank Trust, N.A.),
3.15%, VRDN..................................... 4,475,000
41,380,000 Washington GO, ROCs,
Ser. 98-15,
(LIQ: Toronto Dominion Bank),
3.07%, VRDN (a)................................. 41,380,000
--------------
55,531,000
--------------
Wisconsin - 2.1%
4,000,000 Ladysmith, WI Solid Wst. Disposal Fac. RB,
Cityforest Corp. Proj., Ser. 1998,
(LOC: Union Bank of California),
3.15%, VRDN..................................... 4,000,000
3,100,000 Mantowoc, WI IDRB, Northern Labs, Inc. Proj.,
Ser. 1997,
(LOC: Firstar Bank, Milwaukee),
3.10%, VRDN..................................... 3,100,000
Wisconsin Hsg. & EDA:
8,250,000 Floating Rate Trust Receipts,
Ser. 18,
(LOC: Commerzbank A.G.),
3.20%, VRDN...................................... 8,250,000
4,200,000 Home Owner Caisse de Depots et Consignations
Program,
(LOC: Caisse de Depots et Consignations),
3.12%, VRDN (a).................................. 4,200,000
1,000,000 Wisconsin GO,
5.50%, 5/1/99................................... 1,003,051
--------------
20,553,051
--------------
Wyoming - 4.6%
5,300,000 Converse Cnty., WY Env. Impt. RB, Pacificorp
Proj., Ser. 1995,
(Gtd. by Pacificorp),
3.50%, VRDN..................................... 5,300,000
11,500,000 Lincoln Cnty., WY Env. Impt. RB, Pacificorp
Proj., Ser. 1995,
(Gtd. by Pacificorp),
3.50%, VRDN..................................... 11,500,000
Sweetwater Cnty., WY Env. Impt. RB:
8,000,000 Pacificorp Proj., Ser. 1995,
(Gtd. by Pacificorp),
3.50%, VRDN...................................... 8,000,000
21,500,000 SF Phosphates, Ltd. Proj.,
(LOC: Rabobank Nederlands N.V.),
3.15%, VRDN...................................... 21,500,000
--------------
46,300,000
--------------
</TABLE>
18
<PAGE>
E V E R G R E E N
Select Municipal Money Market Fund
Schedule of Investments(continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Other - 19.2%
$ 7,100,000 Charter Mac Low Floater Certificate Trust I, Third
Tranche,
(Ins. by MBIA),
3.22%, 3/4/99 (a)................................ $ 7,100,000
24,813,000 Clipper Tax Exempt Certificates Trust, Multistate,
Ser. 1998-1, (LOC: State Street Bank & Ins. by
MBIA),
3.27%, VRDN (a).................................. 24,813,000
16,465,000 Macon Trust Pooled Variable Rate Certificates,
Various Issuers, (LOC: Bank of America NT & SA),
3.17%, VRDN (a).................................. 16,465,000
Morgan Keegan Muni. Products, MSTR:
1,970,000 Ser. 1998A,
(LOC: Credit Local de France & Gtd by U.S.
Treasury),
3.22%, VRDN (a)................................... 1,970,000
2,000,000 Ser. 1998B,
(LOC: Natwest, PLC & Gtd by U.S. Treasury),
3.22%, VRDN (a)................................... 2,000,000
27,965,000 Ser. 1999A,
(LOC: Credit Local de France & Gtd by U.S.
Treasury),
3.12%, VRDN (a)................................... 27,965,000
7,000,000 Ser. 1999B,
(LOC: Credit Local de France),
3.22%, VRDN (a)................................... 7,000,000
18,135,000 Muni. Securites Pool Trust, PFOTER, (SPA: Societe
Generale & Ins. by MBIA),
3.07%, VRDN (a).................................. 18,135,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Other - continued
Pooled PFOTER:
$ 4,865,000 PPT-6,
(LIQ: Credit Suisse First Boston & Ins. by FSA),
3.90%, VRDN (a)................................... $ 4,865,000
6,660,000 PPT-8,
(LIQ: Credit Suisse First Boston),
3.40%, VRDN (a)................................... 6,660,000
33,240,000 SG-P-3,
(LIQ: Societe Generale),
3.07%, VRDN (a)................................... 33,240,000
42,450,000 SG-P-4,
(LIQ: Societe Generale & Ins. by AMBAC),
3.07%, VRDN (a)................................... 42,450,000
--------------
192,663,000
--------------
Total Municipal Obligations
(cost $990,869,294).............................. 990,869,294
--------------
<CAPTION>
Shares
<C> <S> <C>
MUTUAL FUND SHARES - 0.8% (cost $8,000,000)
8,000,000 Federated Municipal Obl. Fund,
3.12%, 3/1/99.................................... $ 8,000,000
--------------
Total Investments -
(cost $998,869,294)....................... 99.8% 998,869,294
Other Assets and
Liabilities - net......................... 0.2 2,374,053
----- --------------
Net Assets - .............................. 100.0% $1,001,243,347
===== ==============
</TABLE>
(a) Securities may be sold to "qualified institutional buyers" under Rule
144A or securities offered pursuant to Section 4(2) of the Securities
Act of 1933, as amended. These securities have been determined to be
liquid under the guidelines established by the Board of Trustees.
Variable Rate Demand Notes are payable on demand on no more than seven cal-
endar days notice given by the Fund to the issuer or other parties not af-
filiated with the issuer. Interest rates are determined and reset by the is-
suer daily, weekly or monthly depending upon the terms of the security. In-
terest rates presented for these securities are those in effect at February
28, 1999.
Certain obligations held in the portfolio have credit enhancements or li-
quidity features that may, under certain circumstances, provide for repay-
ment of principal and interest on the obligation upon demand date, interest
rate reset date or final maturity. These enhancements include: letters of
credit; liquidity guarantees; standby bond purchase agreements; tender op-
tion purchase agreements; and third party insurance (i.e. AMBAC, FGIC and
MBIA). Variable rate demand notes held in the portfolio may be considered
derivative securities within the standards imposed by the Securities and Ex-
change Commission under Rule 2a-7 which were designed to minimize both
credit and market risk.
Summary of Abbreviations:
AMBAC American Municipal Bond Assurance Corp.
CDA Community Development Administration
COLL Collateral
COPs Certificates of Participation
EDA Economic Development Authority
FGIC Financial Guaranty Insurance Corp.
FNMA Federal National Mortgage Association
FRN Floating Rate Note
FSA Financial Security Assurance Inc.
GNMA Government National Mortgage Association
GO Government Obligation
HFA Housing Finance Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDRB Industrial Development Revenue Bond
IFA Industrial Finance Agency
LIQ Liquidity Provider
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
MHRB Multifamily Housing Revenue Bond
MSTR Municipal Securities Trust Receipts
MTN Medium Term Notes
PCRB Pollution Control Revenue Bond
PFOTER Puttable Floating Option Tax Exempt Receipts
RB Revenue Bond
ROCs Reset Option Certificates
SCSDE South Carolina School District Education
SFHRB Single Family Housing Revenue Bond
SPA Securities Purchase Agreement
VRDN Variable Rate Demand Note
See Combined Notes to Financial Statements.
19
<PAGE>
E V E R G R E E N
Select Treasury Money Market Fund
Schedule of Investments
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
U.S. TREASURY NOTES - 25.3%
$215,000,000 6.25%, 3/31/99+.................................. $ 215,122,147
50,000,000 6.375%, 4/30/99+................................. 50,061,308
25,000,000 6.375%, 5/15/99.................................. 25,037,019
75,000,000 6.875%, 8/31/99+................................. 75,498,676
50,000,000 5.75%, 9/30/99................................... 50,279,368
200,000,000 5.625%, 11/30/99................................. 201,329,865
200,000,000 5.625%, 12/31/99................................. 201,421,727
75,000,000 5.875%, 2/15/00.................................. 75,777,867
--------------
Total U.S. Treasury Notes
(cost $894,527,977)............................. 894,527,977
--------------
REPURCHASE AGREEMENTS - 81.9%*
180,000,000 ABN Amro, Inc.,
4.75%, dated 2/26/99, due 3/1/99 (1)............ 180,000,000
180,000,000 Barclays Bank, PLC,
4.75%, dated 2/22/99, due 3/1/99 (2)............ 180,000,000
222,066,745 Dean Witter Reynolds, Inc.,
5.25%, dated 9/2/98, due 3/31/99 (3)**.......... 222,066,745
400,000,000 Deutsche Bank GC,
4.81%, dated 2/22/99, due 3/1/99 (4)............ 400,000,000
50,625,000 Dresdner Bank AG,
4.665%, dated 12/4/98, due 4/30/99 (5)**........ 50,625,000
180,000,000 Dresdner Bank AG,
4.73%, dated 2/22/99, due 3/1/99 (6)............ 180,000,000
180,000,000 First Boston Corp.,
4.75%, dated 2/22/99, due 3/1/99 (7)............ 180,000,000
180,000,000 Greenwich Capital Markets,
4.75%, dated 2/26/99, due 3/1/99 (8)............ 180,000,000
155,000,000 HSBC Securities, Inc.,
4.75%, dated 2/22/99, due 3/1/99 (9)............ 155,000,000
180,000,000 J.P. Morgan,
4.73%, dated 2/26/99, due 3/1/99 (10)........... 180,000,000
80,000,000 Lehman Brothers,
4.70%, dated 2/26/99, due 3/1/99 (11)........... 80,000,000
180,000,000 Merrill Lynch, Pierce, Fenner & Smith Inc.,
4.70%, dated 2/26/99, due 3/1/99 (12)........... 180,000,000
6,067,552 Morgan Stanley,
4.50%, dated 2/26/99, due 3/1/99 (13)........... 6,067,552
180,000,000 Smith Barney, Inc.,
4.76%, dated 2/22/99, due 3/1/99 (14)........... 180,000,000
180,000,000 Societe Generale,
4.75%, dated 2/26/99, due 3/1/99 (15)........... 180,000,000
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENTS - continued
$180,000,000 State Street Bank & Trust Co.,
4.74%, dated 2/26/99, due 3/1/99 (16)........... $ 180,000,000
180,000,000 Warburg Dillon Reed LLC,
4.75%, dated 2/26/99,
due 3/1/99 (17)................................. 180,000,000
--------------
Total Repurchase Agreements
(cost $2,893,759,297)........................... 2,893,759,297
--------------
<CAPTION>
Shares
<C> <S> <C>
MUTUAL FUND SHARES - 0.4% (cost $12,923,332)
12,923,332 Fidelity U.S. Treasury Portfolio................. 12,923,332
--------------
Total Investments -
(cost $3,801,210,606)................... 107.6% 3,801,210,606
Other Assets and
Liabilities - net....................... (7.6) (267,828,597)
----- --------------
Net Assets - ............................ 100.0% $3,533,382,009
===== ==============
</TABLE>
20
<PAGE>
E V E R G R E E N
Select Treasury Money Market Fund
Schedule of Investments(continued)
February 28, 1999
+ A portion of these securities are on loan (see Note 7).
** Represents collateral received for securities on loan.
* Collateralized by:
(1) $473,355,000 U.S. Treasury STRIPS, 2/15/11 to 5/15/20; value
including accrued interest--$183,600,097.
(2) $180,851,000 U.S. Treasury Notes, 5.875% to 6.875%, 9/31/99 to
11/15/99; value including accrued interest--$183,600,706.
(3) $245,450,362 GNMA, 5.50% to 17.00%, 5/15/99 to 6/15/29; value
including accrued interest--$88,274,194, $26,513,000 U.S. Treasury
Bills, 8/12/99; value including accrued interest--$25,957,685,
$10,595,000 U.S. Treasury Bonds, 3.625% to 5.25%, 4/15/28 to
11/15/28; value including accrued interest--$10,121,150,
$74,664,000 U.S. Treasury Notes, 4.00% to 6.375%, 3/31/99 to
8/15/02; value included accrued interest--$76,417,711, $63,924,000
U.S. Treasury STRIPS, 5/15/99 to 11/15/26; value including accrued
interest--$25,268,905, $544,065 U.S. Treasury TIGERS, 2/15/00 to
5/15/11; value including accrued interest--$469,202.
(4) $1,040,746,808 GNMA, 6.00% to 9.00%, 12/15/19 to 2/15/29; value
including accrued--$408,000,000.
(5) $36,084,000 U.S. Treasury Bonds, 12.75%, 11/15/10; value including
accrued interest--$51,747,618.
(6) $47,823,000 U.S. Treasury Bonds, 6.00% to 7.50%, 11/15/16 to
8/15/28; value including accrued interest--$52,591,575,
$129,491,000 U.S. Treasury Notes, 4.00% to 8.50%, 4/15/00 to
12/31/00; value included accrued interest--$131,010,852.
(7) $180,625,000 U.S. Treasury Notes, 5.375% to 7.25%, 3/31/99 to
5/15/04; value including accrued interest--$185,388,018.
(8) $35,996,000 U.S. Treasury Bonds, 12.00% to 13.25%, 8/15/13 to
5/15/14; value including accrued interest--$57,695,538,
$118,171,000 U.S. Treasury Notes, 6.125% to 8.00%, 3/31/00 to
8/15/04; value included accrued interest--$125,907,240.
(9) $417,149,000 U.S. Treasury STRIPS, 5/15/99 to 11/15/26; value
including accrued interest--$158,101,301.
(10) $182,143,000 U.S. Treasury Notes, 4.75% to 6.375%, 5/15/00 to
2/15/04; value including accrued interest--$183,600,079.
(11) $67,182,000 U.S. Treasury Notes, 5.25% to 8.00%, 8/15/99 to
8/15/05; value including accrued interest--$67,348,461, $69,462,000
U.S. Treasury STRIPS, 6.75%, 8/15/26; value including accrued
interest--$14,251,519.
(12) $138,695,000 U.S. Treasury Notes, 6.875%, 5/15/06; value including
accrued interest--$153,154,162, $100,704,000 U.S. Treasury STRIPS,
8.875%, 2/15/19; value including accrued interest--$30,450,875.
(13) $6,015,000 U.S. Treasury Notes, 5.50%, 2/28/03; value including
accrued interest--$6,216,178.
(14) $174,888,000 U.S. Treasury Notes, 6.875% to 8.750%, 11/30/99 to
05/15/06; value including accrued interest--$183,654,142.
(15) $161,000 U.S. Treasury Notes, 6.875%, 5/15/06; value including
accrued interest--$177,816, $256,338,000 U.S. Treasury STRIPS,
5/15/05; value including accrued interest--$183,436,754.
(16) $73,015,000 U.S. Treasury Bonds, 6.125% to 8.125%, 8/15/19 to
11/15/27; value including accrued interest--$82,404,054,
$105,935,000 U.S. Treasury Bills, 7/29/99 to 12/09/99; value
including accrued interest--$103,005,985.
(17) $161,000 U.S. Treasury Notes, 6.875%, 5/15/06; value including
accrued interest--$177,816, $256,338,000 U.S. Treasury STRIPS,
5/15/05; value including accrued interest--$183,436,754.
Summary of Abbreviations:
GNMA Government National Mortgage Association
STRIPS Separately Traded Registered Interest and Principal Securities
TIGERS Treasury Investors Growth Receipt
See Combined Notes to Financial Statements.
21
<PAGE>
E V E R G R E E N
Select 100% Treasury Money Market Fund
Schedule of Investments
February 28, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
U.S. TREASURY BILLS - 51.0%
$ 31,789,000 4.33%*, 3/11/99.................................... $ 31,750,765
18,998,000 4.31% - 4.40%*, 3/18/99............................ 18,959,173
49,759,000 4.26% - 4.27%*, 3/25/99............................ 49,617,485
113,168,000 4.485% - 4.66%*, 4/22/99........................... 112,431,531
30,284,000 4.365%*, 4/29/99................................... 30,067,356
64,676,000 4.36% - 4.37%*, 5/6/99............................. 64,157,856
21,857,000 4.25% - 4.335%*, 5/20/99........................... 21,650,425
------------
Total U.S. Treasury Bills
(cost $328,634,591)............................... 328,634,591
------------
U.S. TREASURY NOTES - 39.6%
110,000 6.25%, 3/31/99..................................... 110,164
7,170,000 7.00%, 4/15/99..................................... 7,187,435
145,126,000 6.375% - 6.50%, 4/30/99............................ 145,558,576
12,527,000 6.25%, 5/31/99..................................... 12,565,145
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
U.S. TREASURY NOTES - continued
$ 2,661,000 6.75%, 6/30/99..................................... $ 2,672,010
20,350,000 5.875%, 7/31/99.................................... 20,453,375
30,969,000 5.875%, 8/31/99.................................... 31,145,926
3,704,000 5.875%, 11/15/99................................... 3,734,628
14,566,000 5.625%, 11/30/99................................... 14,664,957
16,895,000 5.875%, 2/15/00.................................... 17,066,853
------------
Total U.S. Treasury Notes
(cost $255,159,069)............................... 255,159,069
------------
Total Investments -
(cost $583,793,660)........................ 90.6% 583,793,660
Other Assets and
Liabilities - net.......................... 9.4 60,754,458
----- ------------
Net Assets - ............................... 100.0% $644,548,118
===== ============
</TABLE>
*Effective yield (calculated at the date of purchase) is the yield at
which the security accretes on an annual basis until maturity date.
See Combined Notes to Financial Statements.
22
<PAGE>
E V E R G R E E N
Select Money Market Funds
Statements of Assets and Liabilities
February 28, 1999
<TABLE>
<CAPTION>
Select Select Select Select
Money Market Municipal Treasury 100% Treasury
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in
securities............. $5,059,313,475 $ 998,869,294 $ 907,451,309 $583,793,660
Investments in
repurchase
agreements............. 24,212,314 0 2,893,759,297 0
- ---------------------------------------------------------------------------------------
Investments at
amortized cost......... 5,083,525,789 998,869,294 3,801,210,606 583,793,660
Cash.................... 1,526 52,833 0 35,604,985
Interest receivable..... 27,433,669 4,632,887 23,933,719 5,912,543
Receivable for
securities sold........ 0 0 0 21,575,147
Receivable for Fund
shares sold............ 99,279 0 0 0
Prepaid expenses and
other assets........... 65,662 39,967 111,390 34,453
- ---------------------------------------------------------------------------------------
Total assets.......... 5,111,125,925 1,003,594,981 3,825,255,715 646,920,788
- ---------------------------------------------------------------------------------------
Liabilities
Distributions payable... 12,986,669 2,006,560 11,482,830 2,195,199
Payable for securities
lending................ 0 0 278,854,372 0
Payable for Fund shares
redeemed............... 83,948 0 0 0
Advisory fee payable.... 225,033 114,964 338,377 22,875
Distribution Plan
expenses payable....... 905,766 53,685 657,330 43,644
Due to other related
parties................ 94,486 21,238 84,248 17,393
Accrued expenses and
other liabilities...... 642,126 155,187 456,549 93,559
- ---------------------------------------------------------------------------------------
Total liabilities..... 14,938,028 2,351,634 291,873,706 2,372,670
- ---------------------------------------------------------------------------------------
Net assets.............. $5,096,187,897 $1,001,243,347 $3,533,382,009 $644,548,118
- ---------------------------------------------------------------------------------------
Net assets represented by
Paid-in capital......... $5,096,605,405 $1,001,133,466 $3,533,384,465 $644,392,800
Undistributed net
investment income...... 0 109,881 0 155,318
Accumulated net
realized gains or
losses on securities... (417,508) 0 (2,456) 0
- ---------------------------------------------------------------------------------------
Total net assets...... $5,096,187,897 $1,001,243,347 $3,533,382,009 $644,548,118
- ---------------------------------------------------------------------------------------
Net assets consists of
Class I................. $2,853,494,803 $ 857,241,571 $2,061,540,261 $546,122,130
Class IS................ 2,242,693,094 144,001,776 1,471,841,748 98,425,988
- ---------------------------------------------------------------------------------------
$5,096,187,897 $1,001,243,347 $3,533,382,009 $644,548,118
- ---------------------------------------------------------------------------------------
Shares outstanding
Class I................. 2,853,720,676 857,151,962 2,061,542,055 545,977,107
Class IS................ 2,242,897,791 143,982,480 1,471,841,660 98,415,693
- ---------------------------------------------------------------------------------------
Net asset value per share
Class I................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------
Class IS................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
23
<PAGE>
E V E R G R E E N
Select Money Market Funds
Statements of Operations
Year Ended February 28, 1999
<TABLE>
<CAPTION>
Select Select Select Select
Money Market Municipal Treasury 100% Treasury
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income
Interest............... $187,504,846 $26,588,831 $164,198,355 $22,154,564
- ---------------------------------------------------------------------------------
Expenses
Advisory fee........... 5,052,624 1,113,470 4,657,617 1,134,410
Distribution Plan
expenses.............. 4,207,699 251,544 3,301,223 100,747
Administrative services
fees.................. 897,971 197,833 846,768 120,236
Trustees' fees and
expenses.............. 85,376 15,629 85,172 7,958
Transfer agent fee..... 27,708 1,178 37,724 449
Custodian fees......... 767,375 258,287 672,867 96,846
Registration and filing
fees.................. 481,506 165,469 564,231 158,601
Organization expenses.. 2,742 2,742 2,742 0
Other.................. 91,548 39,403 119,065 32,923
- ---------------------------------------------------------------------------------
Total expenses........ 11,614,549 2,045,555 10,287,409 1,652,170
Less: Fee credits...... (163,094) (37,947) (128,584) (19,364)
Fee waivers and
expense
reimbursements...... (360,561) (471,568) (597,104) (780,902)
- ---------------------------------------------------------------------------------
Net expenses.......... 11,090,894 1,536,040 9,561,721 851,904
- ---------------------------------------------------------------------------------
Net investment income.. 176,413,952 25,052,791 154,636,634 21,302,660
- ---------------------------------------------------------------------------------
Net realized gains or
losses on securities.. (70,426) 179,190 706 156,345
- ---------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ $176,343,526 $25,231,981 $154,637,340 $21,459,005
- ---------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
24
<PAGE>
E V E R G R E E N
Select Money Market Funds
Statements of Changes in Net Assets
Year Ended February 28, 1999
<TABLE>
<CAPTION>
Select Select Select Select
Money Market Municipal Treasury 100% Treasury
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income... $ 176,413,952 $ 25,052,791 $ 154,636,634 $ 21,302,660
Net realized gains or
losses on securities... (70,426) 179,190 706 156,345
- ------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 176,343,526 25,231,981 154,637,340 21,459,005
- ------------------------------------------------------------------------------------------------
Distributions to share-
holders from net in-
vestment income
Class I................. (90,470,553) (21,858,290) (91,096,717) (19,522,149)
Class IS................ (85,943,399) (3,194,501) (63,539,917) (1,780,511)
- ------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (176,413,952) (25,052,791) (154,636,634) (21,302,660)
- ------------------------------------------------------------------------------------------------
Capital share transac-
tions
Proceeds from shares
sold................... 16,973,312,489 2,469,570,427 11,534,563,778 1,683,680,800
Net asset value of
shares issued in
reinvestment of
distributions.......... 55,547,088 2,005,608 10,002,025 65,916
Payment for shares
redeemed............... (14,857,459,624) (2,164,226,922) (10,390,277,275) (1,289,855,545)
Net asset value of
shares issued in
acquisition of:
CoreFund Elite Cash
Reserve............... 657,769,349 0 0 0
CoreFund Elite Tax
Free Reserve.......... 0 189,948,627 0 0
CoreFund Elite
Treasury Reserve...... 0 0 117,332,798 0
- ------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
capital share
transactions.......... 2,829,169,302 497,297,740 1,271,621,326 393,891,171
- ------------------------------------------------------------------------------------------------
Total increase in net
assets............... 2,829,098,876 497,476,930 1,271,622,032 394,047,516
Net assets
Beginning of period..... 2,267,089,021 503,766,417 2,261,759,977 250,500,602
- ------------------------------------------------------------------------------------------------
End of period........... $ 5,096,187,897 $ 1,001,243,347 $ 3,533,382,009 $ 644,548,118
- ------------------------------------------------------------------------------------------------
Undistributed net
investment income...... $ 0 $ 109,881 $ 0 $ 155,318
- ------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
25
<PAGE>
E V E R G R E E N
Select Money Market Funds
Statements of Changes in Net Assets
Year Ended February 28, 1998
<TABLE>
<CAPTION>
Select Select Select Select
Money Market Municipal Treasury 100% Treasury
Fund Fund Fund Fund (a)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income... $ 91,336,644 $ 11,772,037 $ 77,362,008 $ 2,312,567
Net realized gains or
losses on securities... (333,234) (21,765) 0 (1,027)
- --------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 91,003,410 11,750,272 77,362,008 2,311,540
- --------------------------------------------------------------------------------------------
Distributions to
shareholders from net
investment income
Class I................. (48,087,627) (10,940,574) (30,337,499) (2,267,246)
Class IS................ (43,249,017) (831,463) (47,024,509) (45,321)
- --------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (91,336,644) (11,772,037) (77,362,008) (2,312,567)
- --------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold................... 11,102,724,706 1,292,087,527 6,960,790,322 305,672,656
Net asset value of
shares issued in
reinvestment of
distributions.......... 26,164,108 806,793 7,040,441 45,452
Payment for shares
redeemed............... (10,304,091,494) (1,009,525,052) (5,583,211,658) (55,316,479)
- --------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
capital share
transactions.......... 824,797,320 283,369,268 1,384,619,105 250,401,629
- --------------------------------------------------------------------------------------------
Total increase in net
assets............... 824,464,086 283,347,503 1,384,619,105 250,400,602
Net assets
Beginning of period..... 1,442,624,935 220,418,914 877,140,872 100,000
- --------------------------------------------------------------------------------------------
End of period........... $ 2,267,089,021 $ 503,766,417 $ 2,261,759,977 $250,500,602
- --------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from December 8, 1997 (commencement of operations) to
February 28, 1998.
See Combined Notes to Financial Statements.
26
<PAGE>
Combined Notes to Financial Statements
1. ORGANIZATION
The Evergreen Select Money Market Funds consist of Evergreen Select Money Mar-
ket Fund ("Select Money Market Fund"), Evergreen Select Municipal Money Market
Fund ("Select Municipal Fund"), Evergreen Select Treasury Money Market Fund
("Select Treasury Fund") and Evergreen Select 100% Treasury Money Market Fund
("Select 100% Treasury Fund") (collectively, the "Funds"). Each Fund is a di-
versified series of Evergreen Select Money Market Trust (the "Trust"), a Dela-
ware business trust organized on September 18, 1997. The Trust is an open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act").
The Funds offer Institutional Shares ("Class I") and Institutional Service
Shares ("Class IS") which are sold without a front-end sales charge. Class IS
shares pay an ongoing distribution fee.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
A. Valuation of Securities
As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein,
securities are valued utilizing the amortized cost method. The amortized cost
of an instrument is determined by valuing it at original cost and thereafter
assuming a constant accretion of any discount or amortization of any premium
from its face value at a constant rate until maturity.
B. Repurchase Agreements
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are segregated by the custodian on the Fund's behalf.
Collateral for certain tri-party repurchase agreements is held at the
counterparty's custodian in a segregated account for the benefit of the Fund
and the counterparty. Each Fund monitors the adequacy of the collateral daily
and will require the seller to provide additional collateral in the event the
market value of the securities pledged falls below the carrying value of the
repurchase agreement, including accrued interest. Each Fund will only enter
into repurchase agreements with banks and other financial institutions, which
are deemed by the investment advisor to be creditworthy pursuant to guidelines
established by the Board of Trustees.
C. Securities Lending
In order to generate income and to offset expenses, each Fund may lend portfo-
lio securities to brokers, dealers and other financial organizations. The
Funds' investment advisor will monitor the creditworthiness of such borrowers.
Loans of securities may not exceed 33 1/3% of a Fund's total assets and will be
collateralized by cash, letters of credit or U.S. Government securities that
are maintained at all times in an amount equal to at least 100% of the current
market value of the loaned securities, including accrued interest. Each Fund
monitors the adequacy of the collateral daily and will require the borrower to
provide additional collateral in the event the value of the collateral falls
below 100% of the market value of the securities on loan. While such securities
are on loan, the borrower will pay a Fund any income accruing thereon, and the
Fund may invest any cash collateral received in portfolio securities, thereby
increasing its return. A Fund will have the right to call any such loan and ob-
tain the securities loaned at any time on five days' notice. Any gain or loss
in the market price of the loaned securities, which occurs during the term of
the loan, would affect a Fund and its investors. A Fund may pay fees in connec-
tion with such loans.
27
<PAGE>
Combined Notes to Financial Statements(continued)
D. Security Transactions and Investment Income
Securities transactions are accounted for no later than one business day after
the trade date. Realized gains and losses are computed on the identified cost
basis. Interest income is recorded on the accrual basis and includes accretion
of discounts and amortization of premiums.
E. Federal Taxes
The Funds have qualified and intend to continue to qualify as regulated invest-
ment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable in-
come, net tax-exempt income and net capital gains, if any, to their sharehold-
ers. The Funds also intend to avoid any excise tax liability by making the re-
quired distributions under the Code. Accordingly, no provision for federal
taxes is required. To the extent that realized capital gains can be offset by
capital loss carryforwards, it is each Fund's policy not to distribute such
gains.
F. Distributions
Distributions from net investment income are declared daily and paid monthly.
Distributions from net realized capital gains, if any, are paid at least annu-
ally. Distributions to shareholders are recorded at the close of business on
the ex-dividend date.
Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles. The significant difference between financial statement
amounts available for distributions and distributions made in accordance with
income tax regulations are primarily due to differing treatment of capital loss
carryforwards acquired through fund acquisitions.
G. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plan for the Class IS shares.
H. Organization Expenses
For each Fund, other than Select 100% Treasury Fund, organization expenses are
amortized to operations over a five-year period on a straight-line basis. In
the event any of the initial shares of the Funds are redeemed by any holder
during the five-year amortization period, redemption proceeds will be reduced
by any unamortized organization expenses in the same proportion as the number
of initial shares being redeemed bears to the number of initial shares out-
standing at the time of the redemption. Organization Expenses for Select 100%
Treasury Fund were reflected in its operating results for the Fund's initial
fiscal year.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB") serves as the investment advisor to the
Funds and is paid an advisory fee that is computed daily and paid monthly based
on a percentage of each Fund's average daily net assets.
<TABLE>
<CAPTION>
Annual
Advisory Fee
------------
<S> <C>
Select Money Market Fund................................... 0.15%
Select Municipal Fund...................................... 0.15%
Select Treasury Fund....................................... 0.15%
Select 100% Treasury Fund.................................. 0.25%
</TABLE>
During the year ended February 28, 1999, the amount of advisory fees waived
and/or expenses reimbursed by FUNB and the impact on each Fund's expense ratio
represented as a percentage of its average daily net assets were as follows:
<TABLE>
<CAPTION>
Fees % of Average
Waived Net Assets
-------- ------------
<S> <C> <C>
Select Money Market Fund.......................... $360,561 0.01%
Select Municipal Fund............................. 471,568 0.06%
Select Treasury Fund.............................. 597,104 0.02%
Select 100% Treasury Fund......................... 780,902 0.17%
</TABLE>
28
<PAGE>
Combined Notes to Financial Statements(continued)
Evergreen Investment Services, Inc. ("EIS"), a subsidiary of First Union Corpo-
ration ("First Union"), serves as the administrator and The BISYS Group, Inc.
("BISYS") serves as the sub-administrator for each Fund. As administrator, EIS
provides the Funds with facilities, equipment and personnel. As sub-administra-
tor to the Funds, BISYS provides the officers of the Funds. Officers of the
Funds and affiliated Trustees receive no compensation directly from the Funds.
The administrator and sub-administrator for the Funds are entitled to an annual
fee based on the average daily net assets of the funds administered by EIS for
which First Union or its investment advisory subsidiaries are also the invest-
ment advisors. The administration fee is calculated by applying percentage
rates, which start at 0.05% and decline to 0.01% per annum as net assets in-
crease, to the average daily net asset value of each Fund. The sub-administra-
tion fee is calculated by applying percentage rates, which start at 0.01% and
decline to 0.004% per annum as net assets increase, to the average daily net
assets of each Fund.
During the year ended February 28, 1999, the Funds paid or accrued the follow-
ing amounts for administrative and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
-------------- ------------------
<S> <C> <C>
Select Money Market Fund.............. $718,303 $179,668
Select Municipal Fund................. 158,249 39,584
Select Treasury Fund.................. 680,841 165,927
Select 100% Treasury Fund............. 96,901 23,335
</TABLE>
Evergreen Service Company ("ESC"), an indirectly, wholly owned subsidiary of
First Union, serves as the transfer and dividend disbursing agent for the
Funds.
4. DISTRIBUTION PLAN
Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of BISYS, serves
as the principal underwriter to each of the Funds.
Each Fund has adopted a Distribution Plan, as allowed by Rule 12b-1 of the 1940
Act, for its Class IS shares. Distribution plans permit a Fund to compensate
its principal underwriter for costs related to selling shares of the Fund and
for various other services. These costs, which consist primarily of commissions
and service fees to broker-dealers who sell shares of the Fund, are paid by the
Fund through "Distribution Plan expenses". Class IS shares currently pay a
service fee equal to 0.25% of the average daily net assets of the class. Dis-
tribution Plan expenses are calculated daily and paid monthly.
The Plans may be terminated at any time by vote of the Independent Trustees or
by a vote of a majority of the outstanding voting shares of Class IS.
5. ACQUISITIONS
Effective July 27, 1998, the Funds noted below acquired substantially all the
assets, and assumed certain liabilities, of the following open-end management
investment companies registered under the 1940 Act, through a tax free exchange
of shares. The acquired net assets, valued at $1 per share, and classes of
shares exchanged are as follows:
<TABLE>
<CAPTION>
Class of Value of
Shares Net Assets
Acquired Fund Acquiring Fund Exchanged Acquired
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
CoreFund Elite Cash
Reserve................. Select Money Market Fund Class I and IS $657,769,349
CoreFund Elite Tax Free
Reserve................. Select Municipal Fund Class I and IS 189,948,627
CoreFund Elite Treasury
Reserve................. Select Treasury Fund Class I and IS 117,332,798
</TABLE>
On July 27, 1998, the aggregate net assets of the Select Money Market Fund, Se-
lect Municipal Fund and Select Treasury Fund immediately after the acquisitions
were $3,259,642,735, $732,088,341 and $2,907,379,461, respectively.
29
<PAGE>
Combined Notes to Financial Statements(continued)
6. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class I shares and Class IS shares. Transactions in shares (valued
at $1.00 per share) of the Funds were as follows:
Select Money Market Fund
<TABLE>
<CAPTION>
Year Ended February 28,
------------------------------
1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Class I
Shares sold................................... 9,521,437,669 4,210,325,753
Shares issued in reinvestment of
distributions................................ 13,413,769 4,406,765
Shares redeemed............................... (8,390,782,294) (3,738,159,269)
Shares issued in connection with the
acquisition of CoreFund Elite Cash Reserve... 657,746,423 0
- ------------------------------------------------------------------------------
Net increase.................................. 1,801,815,567 476,573,249
- ------------------------------------------------------------------------------
Class IS
Shares sold................................... 7,451,894,027 6,892,398,953
Shares issued in reinvestment of
distributions................................ 42,133,319 21,757,343
Shares redeemed............................... (6,466,677,330) (6,565,932,225)
Shares issued in connection with the
acquisition of CoreFund Elite Cash Reserve... 28,779 0
- ------------------------------------------------------------------------------
Net increase.................................. 1,027,378,795 348,224,071
- ------------------------------------------------------------------------------
</TABLE>
Select Municipal Fund
<TABLE>
<CAPTION>
Year Ended February 28,
-----------------------------
1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Class I
Shares sold.................................... 2,038,312,243 1,122,156,301
Shares issued in reinvestment of
distributions................................. 731,373 614,402
Shares redeemed................................ (1,813,875,532) (886,886,123)
Shares issued in connection with the
acquisition of CoreFund Elite Tax Free
Reserve....................................... 189,965,707 0
- ------------------------------------------------------------------------------
Net increase................................... 415,133,791 235,884,580
- ------------------------------------------------------------------------------
Class IS
Shares sold.................................... 431,276,415 169,931,226
Shares issued in reinvestment of
distributions................................. 1,274,235 192,391
Shares redeemed................................ (350,351,390) (122,638,929)
Shares issued in connection with the
acquisition of CoreFund Elite Tax Free
Reserve....................................... 1,789 0
- ------------------------------------------------------------------------------
Net increase................................... 82,201,049 47,484,688
- ------------------------------------------------------------------------------
</TABLE>
Select Treasury Fund
<TABLE>
<CAPTION>
Year Ended February 28,
------------------------------
1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Class I
Shares sold................................... 6,034,259,691 3,647,541,042
Shares issued in reinvestment of
distributions................................ 1,893,286 270,054
Shares redeemed............................... (5,236,345,065) (2,758,881,077)
Shares issued in connection with the
acquisition of CoreFund Elite Treasury
Reserve...................................... 5,032,720 0
- ------------------------------------------------------------------------------
Net increase.................................. 804,840,632 888,930,019
- ------------------------------------------------------------------------------
Class IS
Shares sold................................... 5,500,302,900 3,313,249,280
Shares issued in reinvestment of
distributions................................ 8,108,739 6,770,387
Shares redeemed............................... (5,153,932,210) (2,824,330,581)
Shares issued in connection with the
acquisition of CoreFund Elite Treasury
Reserve...................................... 112,303,677 0
- ------------------------------------------------------------------------------
Net increase.................................. 466,783,106 495,689,086
- ------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
Combined Notes to Financial Statements(continued)
Select 100% Treasury Fund
<TABLE>
<CAPTION>
Year Ended February 28,
---------------------------
1999 1998 (a)
- -------------------------------------------------------------------------------
<S> <C> <C>
Class I
Shares sold....................................... 1,309,604,631 281,511,760
Shares issued in reinvestment of distributions.... 23,432 40,594
Shares redeemed................................... (1,008,655,646) (36,647,664)
- -------------------------------------------------------------------------------
Net increase...................................... 300,972,417 244,904,690
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period from December 8, 1997 (commencement of class operations) to
February 28, 1998.
<TABLE>
<CAPTION>
Year Ended February 28,
-------------------------
1999 1998 (b)
- --------------------------------------------------------------------------------
<S> <C> <C>
Class IS
Shares sold.......................................... 374,076,169 24,160,896
Shares issued in reinvestment of distributions....... 42,484 4,858
Shares redeemed...................................... (281,199,899) (18,668,815)
- --------------------------------------------------------------------------------
Net increase......................................... 92,918,754 5,496,939
- --------------------------------------------------------------------------------
</TABLE>
(b) For the period from December 23, 1997 (commencement of class operations) to
February 28, 1998.
7. SECURITIES TRANSACTIONS
The Select Treasury Fund loaned securities during the year ended February 28,
1999 to certain brokers who paid the Fund a negotiated lenders' fee. At Febru-
ary 28, 1999, the value of securities on loan and the value of collateral in-
cluding accrued interest amounted to $277,123,474 and $278,854,372, respective-
ly. During the year ended February 28, 1999, the Fund earned $504,087 in income
from securities lending, which is included in interest income on the Fund's
statement of operations.
As of February 28, 1999, the Funds had capital loss carryovers for federal in-
come tax purposes as follows:
<TABLE>
<CAPTION>
Expiration
------------------------
2005 2006 2007
------ -------- --------
<S> <C> <C> <C>
Select Money Market Fund...................... $6,000 $135,000 $239,000
Select Treasury Money Market Fund............. 2,000
</TABLE>
8. EXPENSE OFFSET ARRANGEMENTS
The Funds have entered into expense offset arrangements with ESC and their cus-
todian whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each Fund's related expenses. The assets deposited
with ESC and the custodian under these expense offset arrangements could have
been invested in income-producing assets. The amount of fee credits received by
each Fund and the impact on each Fund's expense ratio represented as a percent-
age of its average net assets were as follows:
<TABLE>
<CAPTION>
Total
Fee Credits % of Average
Received Net Assets
----------- ------------
<S> <C> <C>
Select Money Market Fund....................... $163,094 0.00%
Select Municipal Fund.......................... 37,947 0.01%
Select Treasury Fund........................... 128,584 0.00%
Select 100% Treasury Fund...................... 19,364 0.00%
</TABLE>
31
<PAGE>
Combined Notes to Financial Statements(continued)
9. DEFERRED TRUSTEES' FEES
Each Independent Trustee of the Funds may defer any or all compensation related
to performance of their duties as a Trustee. Each Trustees' deferred balances
are allocated to deferral accounts, which are included in the accrued expenses
for each Fund. The investment performance of the deferral accounts is based on
the investment performance of certain Evergreen Funds. Any gains earned or
losses incurred in the deferral accounts are reported in the Trustees' fees and
expenses. Trustees will be paid either in one lump sum or in quarterly install-
ments for up to ten years at their election, not earlier than either the year
in which the Trustee ceases to be a member of the Board of Trustees or January
1, 2000.
10. FINANCING AGREEMENT
Certain Evergreen Funds and State Street Bank and Trust Company ("State
Street") and a group of banks (collectively, the "Banks") entered into a fi-
nancing agreement dated December 22, 1997, as amended on November 20, 1998. Un-
der this agreement, the Banks provided an unsecured credit facility in the ag-
gregate amount of $400 million ($275 million committed and $125 million uncom-
mitted). The credit facility was allocated, under the terms of the financing
agreement, among the Banks. The credit facility could be accessed by the Funds
for temporary or emergency purposes only and was subject to each Fund's borrow-
ing restrictions. Borrowings under this facility bear interest at 0.50% per an-
num above the Federal Funds rate. A commitment fee of 0.065% per annum will be
incurred on the unused portion of the committed facility, which was allocated
to all funds. For its assistance in arranging this financing agreement, the
Capital Market Group of First Union was paid a one-time arrangement fee of
$27,500. State Street serves as administrative agent for the Banks, and as ad-
ministrative agent is entitled to a fee of $20,000 per annum which is allocated
to all of the funds.
This agreement was amended and renewed on December 22, 1998. The amended fi-
nancing agreement became effective on December 22, 1998 among all of the Ever-
green Funds, State Street and The Bank of New York ("BONY"). Under this agree-
ment, State Street and BONY provide an unsecured credit facility in the aggre-
gate amount of $150 million ($125 million committed and $25 million uncommit-
ted). The remaining terms and conditions of the agreement are unaffected.
During the year ended February 28, 1999, the Funds had no borrowings under
these agreements.
32
<PAGE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of
Evergreen Select Money Market Fund
Evergreen Select Municipal Money Market Fund
Evergreen Select Treasury Money Market Fund
Evergreen Select 100% Treasury Money Market Fund
In our opinion, the accompanying statements of assets and liabilities, includ-
ing the schedules of investments, and the related statements of operations and
of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Evergreen Select Money Market
Fund, Evergreen Select Municipal Money Market Fund, Evergreen Select Treasury
Money Market Fund and Evergreen Select 100% Treasury Money Market Fund (the
"Funds"), each a series of Evergreen Select Money Market Trust, at February 28,
1999, and the results of each of their operations, the changes in each of their
net assets and the financial highlights for each of the periods indicated in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial state-
ments") are the responsibility of the Funds' management; our responsibility is
to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at February 28, 1999 by
correspondence with the custodians and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA
April 12, 1999
33
<PAGE>
Additional Information(unaudited)
YEAR 2000
Like other investment companies, the Funds could be adversely affected if the
computer systems used by the Funds' investment advisors and the Funds' other
service providers are not able to perform their intended functions effectively
after 1999 because of the inability of computer software to distinguish the
year 2000 from the year 1900. The Funds' investment advisors are taking steps
to address this potential year 2000 problem with respect to the computer sys-
tems that they use and to obtain satisfactory assurances that comparable steps
are being taken by the Funds' other major service providers. At this time, how-
ever, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the Funds from this problem.
FEDERAL TAX STATUS OF DIVIDENDS
100% of the dividends distributed by Select Municipal Fund for the year ended
February 28, 1999 are exempt from federal income tax, other than alternative
minimum tax.
34
<PAGE>
Evergreen Select Funds
Money Market
Money Market Fund
Treasury Money Market Fund
100% Treasury Money Market Fund
Municipal Money Market Fund
Municipal Fixed Income
Intermediate Term Municipal Bond Fund
Taxable Fixed Income
International Bond Fund
Total Return Bond Fund
Income Plus Fund
Core Bond Fund
Fixed Income Fund
Adjustable Rate Fund
Limited Duration Fund
Growth and Income/Balanced
Equity Income Fund
Balanced Fund
Growth
Special Equity Fund
Small Cap Growth Fund
Small Company Value Fund
Strategic Growth Fund
Core Equity Fund
Equity Index Fund
Large Cap Blend Fund
Strategic Value Fund
Diversified Value Fund
Social Principles
Secular Growth Fund
64486 540713 04/99
---------------
BULK RATE
[LOGO OF EVERGREEN FUNDS(SM) APPEARS HERE] U.S. POSTAGE
PAID
200 Berkeley Street PERMIT NO. 19
Boston, MA 02116 HUDSON, MA
---------------
