<PAGE>
Semiannual Report
as of February 28, 1999
Evergreen
Southern State
Municipal Bond Funds
[LOGO OF EVERGREEN FUNDS/SM/ APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareholders .................................................... 1
Evergreen Florida High Income Municipal Bond Fund
Fund at a Glance ....................................................... 2
Evergreen Florida Municipal Bond Fund
Fund at a Glance ....................................................... 4
Evergreen Georgia Municipal Bond Fund
Fund at a Glance ....................................................... 6
Evergreen Maryland Municipal Bond Fund
Fund at a Glance ....................................................... 8
Evergreen North Carolina Municipal Bond Fund
Fund at a Glance ....................................................... 10
Evergreen South Carolina Municipal Bond Fund
Fund at a Glance ....................................................... 12
Evergreen Virginia Municipal Bond Fund
Fund at a Glance ....................................................... 14
Financial Highlights
Evergreen Florida High Income Municipal Bond Fund ...................... 16
Evergreen Florida Municipal Bond Fund .................................. 18
Evergreen Georgia Municipal Bond Fund .................................. 20
Evergreen Maryland Municipal Bond Fund ................................. 22
Evergreen North Carolina Municipal Bond Fund ........................... 24
Evergreen South Carolina Municipal Bond Fund ........................... 26
Evergreen Virginia Municipal Bond Fund ................................. 28
Schedule of Investments
Evergreen Florida High Income Municipal Bond Fund ...................... 30
Evergreen Florida Municipal Bond Fund .................................. 34
Evergreen Georgia Municipal Bond Fund .................................. 38
Evergreen Maryland Municipal Bond Fund ................................. 41
Evergreen North Carolina Municipal Bond Fund ........................... 43
Evergreen South Carolina Municipal Bond Fund ........................... 46
Evergreen Virginia Municipal Bond Fund ................................. 48
Statements of Assets and Liabilities ...................................... 52
Statements of Operations .................................................. 53
Statements of Changes in Net Assets ....................................... 54
Combined Notes to Financial Statements .................................... 57
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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 broad range of quality investment products and
services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This semiannual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees, charges and other ongoing expenses, and should be
read carefully before investing or sending money.
-----------------------------------------------------------------
Mutual Funds: ARE NOT FDIC INSURED May lose value . Are not bank guaranteed
-----------------------------------------------------------------
Evergreen Distributor, Inc.
Evergreen(SM) is a Service Mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
----------------------
February 1999
Dear Shareholders:
[PHOTO OF WILLIAM M. ENNIS APPEARS HERE]
William M. Ennis
Managing Director
We are pleased to provide the Evergreen Southern State Municipal Bond Funds
semiannual report covering the six month period ended February 28, 1999.
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 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.
Visit us at www.evergreen-funds.com
You may have noticed our recent reconstruction on our web site. We have
redesigned the site to make it easier to use, as well as added more fund
information. We invite you to check it out and we welcome any feedback.
Thank you for your continued investment with Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
Managing Director
Evergreen Funds
/1/ The information above constitutes Year 2000 readiness disclosure. 1
<PAGE>
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EVERGREEN
Florida High Income Municipal Bond Fund
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Fund at a Glance as of February 28, 1999
Portfolio Characteristics
-------------------------
Total Net Assets $457,997,401
.......................................
Average Credit Quality BBB
.......................................
Average Maturity 21.0 years
.......................................
Average Duration 8.8 years
.......................................
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Performance and Returns/2/
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<TABLE>
<CAPTION>
Class A Class B Class C Class Y
Class Inception Date 6/17/92 7/10/95 3/6/98 9/20/95
................................................................................................................
<S>
Average Annual Returns* <C> <C> <C> <C>
................................................................................................................
6 months with sales charge -2.74% -3.26% 0.72% n/a
................................................................................................................
6 months w/o sales charge 2.10% 1.72% 1.72% 2.23%
................................................................................................................
1 year with sales charge 0.62% -0.11% 3.89% n/a
................................................................................................................
1 year w/o sales charge 5.67% 4.89% 4.89% 5.94%
................................................................................................................
5 years 6.22% 6.38% 7.10% 7.45%
................................................................................................................
Since Inception 7.35% 7.70% 8.01% 8.27%
................................................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................................................
30-day SEC Yield 5.01% 4.51% 4.51% 5.52%
................................................................................................................
Taxable Equivalent Yield** 8.29% 7.47% 7.47% 9.14%
................................................................................................................
6-month distributions per share $0.28 $0.24 $0.24 $0.30
................................................................................................................
Lipper Ranking out of 62 Florida
Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #9 #37 n/a #22
................................................................................................................
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
1 Source: Lipper Analytical Services, Inc., an independent mutual fund rating
company. The rankings are based on total return and do not include the
effect of a sales charge. For the 5-year period ending February 28, 1999,
the Fund's Class A shares ranked #1 out of 36 Florida Municipal Debt funds
tracked by Lipper Analytical Services, Inc. Past performance is no
guarantee of future results.
2 Historical performance shown for Classes B, C, and Y prior to their
inception is based on the performance of Class A, the original class
offered. These historical returns for Classes B, C, and Y have not been
adjusted to reflect the effect of each Class' 12b-1 fees. These fees for
Classes A, B, and C are .25%, 1.00%, 1.00%, respectively. Class Y does not
pay a 12b-1 fee. If these fees had been reflected, returns for Classes B
and C would have been lower while returns for Class Y would have been
higher.
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LONG TERM GROWTH
- --------------------------------------------------------------------------------
Lehman Brothers Consumer Price Evergreen FL High
Municipals Index - US Income Muni A
---------- ---------- -------------
6/30/92 10,000 10,000 10,000
2/28/93 10,957 10,207 10,971
2/28/94 11,563 10,464 11,852
2/28/95 11,781 10,763 12,063
2/28/96 13,083 11,040 13,500
2/28/97 13,804 11,384 14,390
2/28/98 15,065 11,548 15,926
2/28/99 16,000 11,768 16,827
Comparison of a $10,000 investment in Evergreen Florida High Income Municipal
Bond Fund, Class A, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
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CURRENT INVESTMENT STYLE/1/
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Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
1 Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBMBI is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
<PAGE>
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EVERGREEN
Florida High Income Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio Management
- --------------------
[PHOTO OF RICHARD K. MARRONE APPEARS HERE]
Richard K. Marrone
Tenure: January 1997
During the past six months, the Evergreen Florida High Income Municipal Bond
Fund (Class Y shares) posted a 2.23% total return. The Fund's 12-month total
return of 5.94% for Class Y ranked 2 out of 62 Florida municipal bond funds
tracked by Lipper Analytical Services, an independent mutual fund rating
company.
Within the portfolio, it was a relatively uneventful quarter evidenced by only
modest sector weighting adjustments. Duration remained relatively unchanged and
closed the period at 8.8 years. Few changes were made to the portfolio due to
our confidence that the Fund was well positioned for the current market
environment. In fact, we outperformed over 95% of the funds in our peer group
over the past year.
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
Housing -- 29.1%
Community Development -- 12.3%
Hospital -- 10.7%
Residential Care -- 9.4%
Sales Tax -- 6.9%
Industrial Development -- 5.3%
Education -- 3.8%
Water & Sewer -- 2.4%
Recreational Facilities -- 2.1%
Special Care -- 1.4%
Other -- 16.6%
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
AAA -- 16.0%
AA -- 0.5%
A -- 12.6%
BBB -- 21.8%
B -- 0.2%
Not Rated -- 48.9%
3
<PAGE>
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EVERGREEN
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
Portfolio
Characteristics
---------------
Total Net Assets $660,899,588
.............................................................................
Average Credit Quality AA+
.............................................................................
Average Maturity 14.2
.............................................................................
Average Duration 8.4 years
.............................................................................
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Performance and Returns/2/
- -----------------------------------------------------------------------------------------------------------------------
Class A Class B Class C Class Y
Class Inception Date 5/11/88 6/30/95 1/26/98 6/30/95
.......................................................................................................................
<S> <C> <C> <C> <C>
Average Annual Returns*
.......................................................................................................................
6 months with sales charge -2.62% -3.08% 0.83% n/a
.......................................................................................................................
6 months w/o sales charge 2.27% 1.80% 1.80% 2.31%
.......................................................................................................................
1 year with sales charge 0.77% -0.11% 3.83% n/a
.......................................................................................................................
1 year w/o sales charge 5.79% 4.82% 4.82% 5.87%
.......................................................................................................................
5 years 5.53% 5.57% 6.34% 6.62%
.......................................................................................................................
10 years 7.31% 7.47% 7.72% 7.86%
.......................................................................................................................
Since Inception 7.48% 7.63% 7.87% 7.99%
.......................................................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
.......................................................................................................................
30-day SEC Yield 4.32% 3.60% 3.61% 4.62%
.......................................................................................................................
Taxable Equivalent Yield 7.15% 5.96% 5.98% 7.65%
.......................................................................................................................
6-month distributions per share $0.46 $0.42 $0.42 $0.47
.......................................................................................................................
Lipper Ranking out of 62 Florida
Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #5 #39 #39 n/a
.......................................................................................................................
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
1 Source: Lipper Analytical Services, Inc., an independent mutual fund rating
company. The rankings are based on total return and do not include the
effect of a sales charge. For the 5-year period ending February 28,1999,
the Fund's Class A shares ranked #3 out of 36 Florida Municipal Debt funds
tracked by Lipper Analytical Services, Inc. Past performance is no
guarantee of future results.
2 Historical performance shown for Classes B, C, and Y prior to their
inception is based on the performance of Class A, the original class
offered. These historical returns for Classes B, C, and Y have not been
adjusted to reflect the effect of each Class' 12b-1 fees. These fees for
Classes A, B, and C are .25%, 1.00%, 1.00%, respectively. Class Y does not
pay a 12b-1 fee. If these fees had been reflected, returns for Classes B
and C would have been lower while returns for Class Y would have been
higher.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
Lehman Brothers Consumer Price
Municipals Index - US Evergreen FL Muni Bond A
---------- ---------- ------------------------
5/31/88 10,000 10,000 10,000
2/28/89 10,696 10,349 10,738
2/28/90 11,794 10,894 11,392
2/28/91 12,882 11,472 12,505
2/28/92 14,168 11,796 13,785
2/28/93 16,118 12,179 15,813
2/28/94 17,011 12,485 16,604
2/28/95 17,331 12,842 17,068
2/28/96 19,246 13,173 18,730
2/28/97 20,307 13,583 19,636
2/28/98 22,161 13,779 21,568
2/28/99 23,538 14,025 22,814
Comparison of a $10,000 investment in Evergreen Florida Municipal Bond Fund,
Class A, versus a similar investment in the Lehman Brothers Municipal Bond Index
(LBMBI) and the Consumer Price Index (CPI).
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------
Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
1 Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBMBI is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio Management
- -------------------
[PHOTO OF RICHARD K. MARRONE]
Richard K. Marrone
Tenure: January 1997
During the six months ended February 28, 1999, the Evergreen Florida Municipal
Bond Fund (class Y shares) posted a 2.31% total return.
Within the portfolio, it was a relatively uneventful period evidenced by only
slight sector weighting adjustments. We shortened the portfolio's duration
modestly during the six months as part of our new approach to focus on stability
of net asset value (NAV) and yield. This move proved beneficial during the final
months of the period as interest rates increased. Going forward, we will focus
on increasing the yield while also decreasing the volatility of the NAV. This
income-oriented emphasis will also provide a greater degree of price stability
over the long term.
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
Hospital -- 19.9%
Escrow -- 12.3%
Housing -- 11.0%
Public Facilities -- 7.9%
General Obligation-State -- 5.2%
Water & Sewer -- 4.8%
Transportation -- 4.5%
Residential Care -- 4.2%
Miscellaneous Revenue -- 4.0%
Education -- 3.8%
Other -- 22.4%
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
AAA -- 56.6%
AA -- 15.4%
A -- 9.5%
BBB -- 17.5%
Not Rated -- 1.0%
5
<PAGE>
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E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
Portfolio
Characteristics
---------------
Total Net Assets $90,035,454
................................................................................
Average Credit Quality AA
................................................................................
Average Maturity 13.3 years
................................................................................
Average Duration 8.0 years
................................................................................
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Performance and Returns/2/
- --------------------------------------------------------------------------------
Class A Class B Class Y
Class Inception Date 7/2/93 7/2/93 2/28/94
................................................................................
Average Annual Returns*
................................................................................
6 months with sales charge -2.49% -2.95% n/a
................................................................................
6 months w/o sales charge 2.41% 2.03% 2.53%
................................................................................
1 year with sales charge 0.82% 0.05% n/a
................................................................................
1 year w/o sales charge 5.84% 5.05% 6.10%
................................................................................
5 years 5.21% 5.15% 6.51%
................................................................................
Since Inception 4.79% 4.83% 5.93%
................................................................................
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
................................................................................
30-day SEC Yield 4.20% 3.66% 4.63%
................................................................................
Taxable Equivalent Yield** 6.95% 6.06% 7.67%
................................................................................
6-month distributions per share $0.28 $0.25 $0.30
................................................................................
Lipper Ranking out of 34 Georgia
Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #4 #16 #2
................................................................................
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
1 Source: Lipper Analytical Services, Inc., an independent mutual fund rating
company. The rankings are based on total return and do not include the
effect of a sales charge. Past performance is no guarantee of future
results.
2 Historical performance shown for Class Y prior to its inception is based on
the performance of Class A, one of the original classes offered along with
Class B. The historical returns for Class Y include the effect of the .25%
12b-1 fee applicable to Class A. Class Y does not pay a 12b-1 fee. If these
fees had not been reflected, returns for Class Y would have been higher.
Class B pays a 12b-1 fee of 1.00%.
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBMBI is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Lehman Brothers Consumer Price
Municipals Index - US Evergreen GA Muni Bond A
---------- ---------- ------------------------
7/31/93 10,000 10,000 10,000
2/28/94 10,315 10,159 10,096
2/28/95 10,509 10,450 10,110
2/28/96 11,670 10,719 11,183
2/28/97 12,314 11,053 11,685
2/28/98 13,438 11,212 12,913
2/28/99 14,273 11,426 13,665
Comparison of a $10,000 investment in Evergreen Georgia Municipal Bond Fund,
Class A, versus a similar investment in the Lehman Brothers Municipal Bond Index
(LBMBI) and the Consumer Price Index (CPI).
6
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio
Management
----------
[PHOTO OF CHARLES JEANNE APPEARS HERE]
Charles Jeanne
Tenure: November 1997
The Evergreen Georgia Municipal Bond Fund (Class Y shares) posted a 2.53% total
return during the past six months ended February 28, 1999. The Fund's 12-month
total return of 6.10% ranked 2 out of 34 Georgia municipal bond funds tracked by
Lipper Analytical Services, an independent mutual fund rating company.
During the past several months our primary strategy has been to emphasize
higher-yielding securities in order to bolster the Fund's current yield.
Consistent with this strategy, we purchased bonds--some of which were
higher-yielding--that rewarded our investors with a strong return. Typically,
these include industrial development authority bonds and hospital bonds. We were
pleased that our strategy provided investors a degree of protection from the
fluctuating market, and allowed the Fund to outperform over 90% of its peers.
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
General Obligation-Local -- 18.5%
Industrial Development -- 17.6%
Hospital -- 15.2%
Water & Sewer -- 11.9%
Public Facilities -- 8.2%
Electric Revenue -- 6.5%
Airport -- 4.0%
Housing -- 3.6%
General Obligation-State -- 2.6%
Other -- 11.9%
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
AAA -- 54.1%
AA -- 11.6%
A -- 7.1%
BBB -- 19.4%
Not Rated -- 7.8%
7
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
Portfolio
Characteristics
---------------
Total Net Assets $35,990,821
................................................................................
Average Credit Quality AA
................................................................................
Average Maturity 14.1 years
................................................................................
Average Duration 8.2 years
................................................................................
- --------------------------------------------------------------------------------
Performance and Returns/1/
- --------------------------------------------------------------------------------
Class A Class B Class Y
Class Inception Date 10/16/90 3/27/98 10/16/90
................................................................................
Average Annual Returns*
................................................................................
6 months with sales charge -2.34% -2.81% n/a
................................................................................
6 months w/o sales charge 2.56% 2.18% 2.69%
................................................................................
1 year with sales charge 0.89% 0.17% n/a
................................................................................
1 year w/o sales charge 5.92% 5.15% 6.18%
................................................................................
5 years 3.64% 4.38% 4.92%
................................................................................
Since Inception 5.37% 6.05% 6.17%
................................................................................
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
................................................................................
30-day SEC Yield 3.82% 3.24% 4.26%
................................................................................
Taxable Equivalent** 6.32% 5.36% 7.05%
................................................................................
6-month distributions per share $0.33 $0.28 $0.34
................................................................................
Lipper Ranking out of 35 Maryland
Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #3 n/a #1
................................................................................
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
Class C Shares were introduced in December 1998 and have no average annual
returns at this reporting period.
1 Historical performance shown for Class B prior to its inception is based on
the performance of Class Y, one of the original classes offered along with
Class A. These historical returns for Class B have not been adjusted to
reflect the effect of 12b-1 fees. These fees for Classes A and B are .25%
and 1.00% respectively. Class Y does not pay a 12b-1 fee. If these fees had
been reflected, returns for Class B would have been lower.
CURRENT INVESTMENT STYLE/1/
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBM10Y is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Lehman Brothers Consumer Price
Municipals Index - US Evergreen MD Muni Bd A
---------- ---------- ----------------------
10/30/90 10,000 10,000 10,000
2/28/91 10,473 10,097 10,204
2/28/92 11,519 10,382 10,958
2/28/93 13,105 10,719 12,444
2/28/94 13,830 10,989 12,939
2/28/95 14,091 11,303 12,987
2/28/96 15,648 11,594 14,186
2/28/97 16,510 11,955 14,463
2/28/98 18,018 12,127 15,431
2/28/99 19,137 12,359 16,343
Comparison of a $10,000 investment in Evergreen Maryland Municipal Bond Fund,
Class A, versus a similar investment in the Lehman Brothers Municipal 10-year
Bond Index (LBM10Y) and the Consumer Price Index (CPI).
8
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio
Management
----------
[PHOTO OF CHARLES JEANNE APPEARS HERE]
Charles Jeanne
Tenure: March 1998
For the six-month period ended February 28, 1999, the Evergreen Maryland
Municipal Bond Fund (Class Y shares) posted a 2.69% total return. The Fund's
12-month total return of 6.18% ranked number 1 out of 35 Maryland municipal bond
funds tracked by Lipper Analytical Services, an independent mutual fund rating
company.
After taking over management responsibilities of the Fund nearly a year ago, our
main focus has been to bolster the portfolio's current yield. This was
accomplished by selling shorter, lower-yielding securities and replacing them
with higher-yielding issues. Purchases typically included economic development
authority, healthcare and housing bonds.
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
Hospital -- 13.8%
Housing -- 13.0%
Water & Sewer -- 12.3%
General Obligation-Local -- 10.6%
Lease -- 9.8%
Education -- 7.9%
Resource Recovery -- 6.3%
Industrial Development -- 6.3%
Transportation -- 6.0%
General Obligation-State -- 3.1%
Other -- 10.9%
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
AAA -- 30.4%
AA -- 30.7%
A -- 18.0%
BBB -- 13.7%
Not Rated -- 7.2%
9
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
Portfolio
Characteristics
---------------
Total Net Assets $321,346,497
................................................................................
Average Credit Quality AA-
................................................................................
Average Maturity 13.3 years
................................................................................
Average Duration 7.9 years
................................................................................
- --------------------------------------------------------------------------------
Performance and Returns/2/
- --------------------------------------------------------------------------------
Class A Class B Class Y
Class Inception Date 1/11/93 1/11/93 2/28/94
................................................................................
Average Annual Returns*
................................................................................
6 months with sales charge -2.87% -3.37% n/a
................................................................................
6 months w/o sales charge 1.96% 1.59% 2.09%
................................................................................
1 year with sales charge 0.61% -0.20% n/a
................................................................................
1 year w/o sales charge 5.59% 4.80% 5.85%
................................................................................
5 years 4.98% 4.91% 6.26%
................................................................................
Since Inception 5.50% 5.63% 6.56%
................................................................................
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
................................................................................
30-day SEC Yield 4.17% 3.61% 4.62%
................................................................................
Taxable Equivalent Yield** 6.90% 5.98% 7.65%
................................................................................
6-month distributions per share $0.31 $0.27 $0.33
................................................................................
Lipper Ranking out of 40 North
Carolina Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #8 #25 #5
................................................................................
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
1 Source: Lipper Analytical Services, Inc., an independent mutual fund rating
company. The rankings are based on total return and do not include the
effect of a sales charge. For the 5-year period ending February 28, 1999,
the Fund's Class A shares ranked #6 and Class B shares ranked #20 out of 27
North Carolina Municipal Debt Funds tracked by Lipper Analytical Services,
Inc. Past performance is no guarantee of future results.
2 Historical performance shown for Class Y prior to its inception is based on
the performance of Class A, one of the original classes offered along with
Class B. The historical returns for Class Y include the effect of the .25%
12b-1 fee applicable to Class A. Class Y does not pay a 12b-1 fee. If these
fees had not been reflected, returns for Class Y would have been higher.
Class B pays a 12b-1 fee of 1.00%.
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBMBI is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Lehman Brothers Consumer Price
Municipals Index - US Evergreen NC Muni Bond A
---------- ---------- ------------------------
1/31/93 10,000 10,000 10,000
2/28/93 10,362 10,035 10,204
2/28/94 10,935 10,288 10,847
2/28/95 11,141 10,582 10,852
2/28/96 12,372 10,854 12,037
2/28/97 13,054 11,192 12,449
2/28/98 14,246 11,353 13,746
2/28/99 15,131 11,570 14,512
Comparison of a $10,000 investment in Evergreen North Carolina Municipal Bond
Fund, Class A, versus a similar investment in the Lehman Brothers Municipal Bond
Index (LBMBI) and the Consumer Price Index (CPI).
10
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio
Management
----------
[PHOTO OF RICHARD K. MARRONE APPEARS HERE]
Richard K. Marrone
Tenure: January 1993
The Evergreen North Carolina Municipal Bond Fund (Class Y shares) posted a 2.09%
total return during the past six months ended February 28, 1999. The Fund's
12-month total return of 5.85% ranked in the top 15% of North Carolina municipal
bond funds tracked by Lipper Analytical Services, an independent mutual fund
rating company.
Within the portfolio, it was a relatively uneventful period evidenced by only
modest sector weighting adjustments. We shortened the portfolio's duration from
8.8 years to 7.9 years during the six months as part of our new approach to
focus on stability of net asset value (NAV) and yield. This move proved
beneficial during the final months of the period as interest rates increased.
Going forward, we will focus on increasing the yield while also decreasing the
volatility of the NAV. This income-oriented emphasis will also provide a greater
degree of price stability over the long term.
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
Hospital -- 17.0%
Electric -- 14.3%
General Obligation-Local -- 11.7%
Airlines -- 7.8%
Industrial Development -- 7.2%
General Obligation-State -- 6.5%
Residential Care -- 5.8%
Escrow -- 5.4%
Housing -- 4.9%
Pre-refunded Bonds -- 4.8%
Other -- 14.6%
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
AAA -- 42.3%
AA -- 12.9%
A -- 14.3%
BBB -- 14.8%
Not Rated -- 15.7%
11
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
Portfolio Characteristics
-------------------------
Total Net Assets $71,262,099
...........................................
Average Credit Quality AA
...........................................
Average Maturity 13.6 years
...........................................
Average Duration 8.2 years
...........................................
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
- --------------------------------------------------------------------------------
Class A Class B Class Y
Class Inception Date 1/3/94 1/3/94 2/28/94
................................................................................
Average Annual Returns*
................................................................................
6 months with sales charge -2.77% -3.25% n/a
................................................................................
6 months w/o sales charge 2.08% 1.70% 2.20%
................................................................................
1 year with sales charge 0.43% -0.31% n/a
................................................................................
1 year w/o sales charge 5.48% 4.69% 5.74%
................................................................................
3 years 5.15% 5.17% 7.13%
................................................................................
Since Inception 4.95% 5.03% 6.19%
................................................................................
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
................................................................................
30-day SEC Yield 3.90% 3.06% 4.35%
................................................................................
Taxable Equivalent Yield** 6.46% 5.07% 7.20%
................................................................................
6-month distributions per share $0.33 $0.29 $0.34
................................................................................
Lipper Ranking out of 15 South Carolina
Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #2 #9 #1
................................................................................
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
1 Source: Lipper Analytical Services, Inc., an independent mutual fund rating
company. The rankings are based on total return and do not include the
effect of a sales charge. Past performance is no guarantee of future
results.
2 Historical performance shown for Class Y prior to its inception is based on
the performance of Class A, one of the original classes offered along with
Class B. The historical returns for Class Y include the effect of the .25%
12b-1 fee applicable to Class A. Class Y does not pay a 12b-1 fee. If these
fees had not been reflected, returns for Class Y would have been higher.
Class B pays a 12b-1 fee of 1.00%.
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBMBI is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
Lehman Brothers Consumer Price
Municipals Index - US Evergreen SC Muni Bond A
---------- ---------- ------------------------
1/31/94 10,000 10,000 10,000
2/28/94 9,741 10,034 9,639
2/28/95 9,925 10,321 9,719
2/28/96 11,021 10,587 10,870
2/28/97 11,628 10,917 11,475
2/28/98 12,690 11,074 12,577
2/28/99 13,479 11,285 13,265
Comparison of a $10,000 investment in Evergreen South Carolina Municipal Bond
Fund, Class A, versus a similar investment in the Lehman Brothers Municipal Bond
Index (LBMBI) and the Consumer Price Index (CPI).
12
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio Management
--------------------
[PHOTO OF CHARLES JEANNE APPEARS HERE]
Charles Jeanne
Tenure: January 1997
During the six months ended February 28, 1999, the Evergreen South Carolina
Municipal Bond Fund (Class Y shares) posted a 2.20% total return. The Fund's
12-month total return of 5.74% ranked number 1 out of 15 South Carolina
municipal bond funds tracked by Lipper Analytical Services, an independent
mutual fund rating company.
In managing the portfolio, we sought to temper market volatility by emphasizing
higher-yielding securities in order to bolster the Fund's current yield. In
addition, the Fund's duration strategy also had a positive impact on
performance. Duration was kept relatively long during the first months of the
quarter as interest rates declined modestly. We then shortened duration - from
8.5 years to 8.2 years - during the final two months as interest rates reversed
direction and increased. These two strategies allowed us to outperform all of
our peers during the past twelve months.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
[_] Hospital -- 20.9%
[_] Electric -- 16.8%
[_] General Obligation-Local -- 16.6%
[_] Industrial Development -- 10.0%
[_] Resource Recovery -- 8.8%
[_] Housing -- 8.6%
[_] Water & Sewer -- 4.9%
[_] Port Authority -- 3.0%
[_] Sales Tax -- 2.9%
[_] Public Facilities -- 2/2%
[_] Other -- 5.3%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
[_] AAA -- 53.1%
[_] AA -- 20.1%
[_] A -- 8.8%
[_] BBB -- 11.1%
[_] Not Rated -- 6.9%
13
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of February 28, 1999
Portfolio Characteristics
-------------------------
Total Net Assets $179,949,049
...................................................
Average Credit Quality AA
...................................................
Average Maturity 14.1 years
...................................................
Average Duration 8.1 years
...................................................
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
- --------------------------------------------------------------------------------
Class A Class B Class Y
Class Inception Date 7/2/93 7/2/93 2/28/94
................................................................................
Average Annual Returns*
................................................................................
6 months with sales charge -2.34% -2.84% n/a
................................................................................
6 months w/o sales charge 2.51% 2.13% 2.64%
................................................................................
1 year with sales charge 1.00% 0.29% n/a
................................................................................
1 year w/o sales charge 6.08% 5.29% 6.34%
................................................................................
5 years 5.36% 5.30% 6.65%
................................................................................
Since Inception 4.90% 4.94% 6.04%
................................................................................
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
................................................................................
30-day SEC Yield 4.25% 3.71% 4.71%
................................................................................
Taxable Equivalent Yield** 7.04% 6.14% 7.80%
................................................................................
6-month distributions per share $0.32 $0.28 $0.34
................................................................................
Lipper Ranking out of 34 Virginia
Municipal Debt Funds/1/
(for the 1 year period ending 2/28/99) #2 #13 #1
................................................................................
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
1 Source: Lipper Analytical Services, Inc., an independent mutual fund rating
company. The rankings are based on total return and do not include the
effect of a sales charge. Past performance is no guarantee of future
results.
2 Historical performance shown for Class Y prior to its inception is based on
the performance of Class A, one of the original classes offered along with
Class B. The historical returns for Class Y include the effect of the 0.25%
12b-1 fee applicable to Class A. Class Y does not pay a 12b-1 fee. If these
fees had not been reflected, returns for Class Y would have been higher.
Class B pays a 12b-1 fee of 1.00%.
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------
[STYLE BOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 2/28/99.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: 1999 Morningstar, Inc.
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than original cost. The LBMBI is an unmanaged index. The index does not include
transaction costs associated with buying and selling securities nor any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
Lehman Brothers Consumer Price
Municipals Index - US Evergreen VA Muni Bond A
---------- ---------- ------------------------
7/31/93 10,000 10,000 10,000
2/28/94 10,315 10,159 10,089
2/28/95 10,509 10,450 10,260
2/28/96 11,670 10,719 11,308
2/28/97 12,314 11,053 11,828
2/28/98 13,438 11,212 12,964
2/28/99 14,273 11,426 13,750
Comparison of a $10,000 investment in Evergreen Virginia Municipal Bond Fund,
Class A, versus a similar investment in the Lehman Brothers Municipal Bond Index
(LBMBI) and the Consumer Price Index (CPI).
14
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Portfolio
Management
------------------
[PHOTO OF CHARLES JEANNE APPEARS HERE]
Charles Jeanne
Tenure: July 1993
The Evergreen Virginia Municipal Bond Fund (Class Y shares) posted a 2.64% total
return during the six months ended February 28, 1999. The Fund's 12-month total
return of 6.34% ranked number 1 out of 34 Virginia municipal bond funds tracked
by Lipper Analytical Services, an independent mutual fund rating company.
Our strategy during the period has been to bolster the Fund's high coupon
structure. We sold some general obligation bonds and purchased higher yielding
issues such as industrial development authority, healthcare and housing bonds.
In addition, duration was kept relatively long at the onset of the period,
before it was shortened - from 8.3 years to 8.1 years - during the final two
months as interest rates reversed direction and increased. These strategies made
a significant contribution to total return and allowed us to outperform all the
funds in our peer group during the past twelve months.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
[_] General Obligation-Local -- 17.3%
[_] Housing -- 14.8%
[_] Public Facilities -- 12.0%
[_] Hospital --8.8%
[_] Industrial Development -- 8.6%
[_] Transportation -- 7.9%
[_] Water & Sewer -- 6.7%
[_] Education -- 5.4%
[_] Lease -- 4.0%
[_] Resource Recovery -- 3.1%
[_] Other -- 11.4%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(based on 2/28/99 portfolio assets)
[PIE CHART APPEARS HERE]
[_] AAA -- 29.6%
[_] AA -- 38.2%
[_] A -- 9.8%
[_] BB -- 11.6%
[_] Not Rated -- 10.8%
15
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida High Income Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31, Year Ended April 30,
February 28, 1999 ------------------------------------- ----------------------
(Unaudited) 1998 1997 1996 1995 (a) 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
CLASS A SHARES
- ------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 11.26 $ 10.89 $ 10.42 $ 10.40 $ 10.16 $ 10.08 $ 10.36
-------- -------- -------- ------- ------- ---------- ----------
............................................................................................................
Income from investment
operations
............................................................................................................
Net investment income 0.28 0.58 0.62 0.63 0.21 0.65 0.68
............................................................................................................
Net realized and
unrealized gains or
losses on securities (0.05) 0.37 0.47 0.02 0.24 0.08 (0.26)
-------- -------- -------- ------- ------- ---------- ----------
............................................................................................................
Total from investment
operations 0.23 0.95 1.09 0.65 0.45 0.73 0.42
-------- -------- -------- ------- ------- ---------- ----------
............................................................................................................
Less distributions to
shareholders from
............................................................................................................
Net investment income (0.28) (0.58) (0.62) (0.63) (0.21) (0.65) (0.68)
............................................................................................................
Net realized gains 0++ 0 0 0 0 0 (0.02)
-------- -------- -------- ------- ------- ---------- ----------
............................................................................................................
Total distributions to
shareholders (0.28) (0.58) (0.62) (0.63) (0.21) (0.65) (0.70)
-------- -------- -------- ------- ------- ---------- ----------
............................................................................................................
Net asset value, end of
period $ 11.21 $ 11.26 $ 10.89 $ 10.42 $ 10.40 $ 10.16 $ 10.08
-------- -------- -------- ------- ------- ---------- ----------
............................................................................................................
Total return* 2.10% 8.94% 10.77% 6.42% 4.43% 7.56% 3.94%
............................................................................................................
Ratios and supplemental
data
............................................................................................................
Net assets, end of
period (thousands) $292,023 $279,079 $119,942 $76,267 $59,551 $ 65,043 $ 72,683
............................................................................................................
Ratios to average net
assets
Expenses 0.87%+ 0.89% 0.88% 0.85% 1.07%+ 0.60% 0.14%+
............................................................................................................
Net investment income 5.08%+ 5.15% 5.86% 6.02% 5.92%+ 6.52% 6.16%+
............................................................................................................
Portfolio turnover rate 18% 70% 32% 42% 14% 28% 31%
............................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 ------------------------------------
(Unaudited) 1998 1997 1996 1995 (b)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------------------------------------
Net asset value,
beginning of period $ 11.26 $ 10.89 $ 10.42 $ 10.40 $10.41
-------- -------- ------- ------- --------
..................................................................................
Income from investment
operations
..................................................................................
Net investment income 0.24 0.50 0.54 0.55 0.08
..................................................................................
Net realized and
unrealized gains or
losses on securities (0.05) 0.37 0.47 0.02 (0.01)
-------- -------- ------- ------- --------
..................................................................................
Total from investment
operations 0.19 0.87 1.01 0.57 0.07
-------- -------- ------- ------- --------
..................................................................................
Less distributions to
shareholders from
..................................................................................
Net investment income (0.24) (0.50) (0.54) (0.55) (0.08)
..................................................................................
Net realized gains 0++ 0 0 0 0
-------- -------- ------- ------- --------
..................................................................................
Total distributions to
shareholders (0.24) (0.50) (0.54) (0.55) (0.08)
-------- -------- ------- ------- --------
..................................................................................
Net asset value, end of
period $ 11.21 $ 11.26 $ 10.89 $ 10.42 $10.40
-------- -------- ------- ------- --------
..................................................................................
Total return* 1.72% 8.13% 9.95% 5.63% 0.64%
..................................................................................
Ratios and supplemental
data
..................................................................................
Net assets, end of
period (thousands) $120,372 $103,309 $63,475 $19,219 $3,137
..................................................................................
Ratios to average net
assets
Expenses 1.62%+ 1.64% 1.63% 1.59% 1.09%+
..................................................................................
Net investment income 4.33%+ 4.46% 5.09% 5.27% 3.40%+
..................................................................................
Portfolio turnover rate 18% 70% 32% 42% 14%
..................................................................................
</TABLE>
(a) For the four months ended August 31, 1995. The Fund changed its fiscal year
end from April 30 to August 31, effective August 31, 1995.
(b) For the period from July 10, 1995 (commencement of class operations) to Au-
gust 31, 1995
* Excluding applicable sales charges.
+ Annualized.
++ Represents an amount less than $0.005 per share.
See Combined Notes to Financial Statements.
16
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida High Income Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1999 Period Ended
(Unaudited) August 31, 1998 (a)
<S> <C> <C>
- --------------------------------------------------------------------------------
CLASS C SHARES
- --------------------------------------------------------------------------------
Net asset value, beginning of period $11.26 $11.11
------ ------
................................................................................
Income from investment operations
................................................................................
Net investment income 0.24 0.24
................................................................................
Net realized and unrealized gains or
losses on securities (0.05) 0.15
------ ------
................................................................................
Total from investment operations 0.19 0.39
------ ------
................................................................................
Less distributions to shareholders from
................................................................................
Net investment income (0.24) (0.24)
................................................................................
Net realized gains 0++ 0
------ ------
................................................................................
Total distributions to shareholders (0.24) (0.24)
------ ------
................................................................................
Net asset value, end of period $11.21 $11.26
------ ------
................................................................................
Total return* 1.72% 3.50%
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $4,221 $1,098
................................................................................
Ratios to average net assets
Expenses 1.61%+ 1.65%+
................................................................................
Net investment income 4.30%+ 4.21%+
................................................................................
Portfolio turnover rate 18% 70%
................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 -------------------------
(Unaudited) 1998 1997 1996 (b)
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
CLASS Y SHARES
- --------------------------------------------------------------------------------
Net asset value, beginning of
period $ 11.26 $ 10.89 $10.42 $10.48
------- ------- ------ ------
................................................................................
Income from investment
operations
................................................................................
Net investment income 0.30 0.61 0.65 0.63
................................................................................
Net realized and unrealized
gains or losses on securities (0.05) 0.37 0.47 (0.06)
------- ------- ------ ------
................................................................................
Total from investment operations 0.25 0.98 1.12 0.57
------- ------- ------ ------
................................................................................
Less distributions to
shareholders from
................................................................................
Net investment income (0.30) (0.61) (0.65) (0.63)
................................................................................
Net realized gains 0++ 0 0 0
------- ------- ------ ------
................................................................................
Total distributions to
shareholders (0.30) (0.61) (0.65) (0.63)
------- ------- ------ ------
................................................................................
Net asset value, end of period $ 11.21 $ 11.26 $10.89 $10.42
------- ------- ------ ------
................................................................................
Total return 2.23% 9.22% 11.04% 5.54%
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period
(thousands) $41,381 $29,152 $6,326 $1,970
................................................................................
Ratios to average net assets
Expenses 0.62%+ 0.65% 0.63% 0.59%+
................................................................................
Net investment income 5.37%+ 5.47% 6.08% 6.27%+
................................................................................
Portfolio turnover rate 18% 70% 32% 42%
................................................................................
</TABLE>
(a) For the period from March 6, 1998 (commencement of class operations) to Au-
gust 31, 1998.
(b) For the period from September 20, 1995 (commencement of class operations)
to August 31, 1996.
* Excluding applicable sales charges.
+ Annualized.
++ Represents an amount less than $0.005 per share.
See Combined Notes to Financial Statements.
17
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31, Year Ended April 30,
February 28, 1999 ----------------------------------------- ----------------------
(Unaudited) 1998 1997 1996 1995 (a)(b) 1995 (a) 1994 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
CLASS A SHARES
- --------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.61 $ 9.52 $ 9.95
-------- -------- -------- -------- -------- ---------- ----------
..............................................................................................................
Income from investment
operations
..............................................................................................................
Net investment income 0.23 0.48 0.51 0.54 0.19 0.54 0.56
..............................................................................................................
Net realized and
unrealized gains or
losses on securities (0.01) 0.38 0.35 (0.04) 0.22 0.11 (0.36)
-------- -------- -------- -------- -------- ---------- ----------
..............................................................................................................
Total from investment
operations 0.22 0.86 0.86 0.50 0.41 0.65 0.20
-------- -------- -------- -------- -------- ---------- ----------
..............................................................................................................
Less distributions to
shareholders from
..............................................................................................................
Net investment income (0.23) (0.48) (0.52) (0.54) (0.22) (0.54) (0.56)
..............................................................................................................
Net realized gains (0.23) (0.21) (0.06) 0 (0.06) (0.02) (0.07)
-------- -------- -------- -------- -------- ---------- ----------
..............................................................................................................
Total distributions to
shareholders (0.46) (0.69) (0.58) (0.54) (0.28) (0.56) (0.63)
-------- -------- -------- -------- -------- ---------- ----------
..............................................................................................................
Net asset value, end of
period $ 9.91 $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.61 $ 9.52
-------- -------- -------- -------- -------- ---------- ----------
..............................................................................................................
Total return* 2.27% 8.96% 9.06% 5.15% 4.20% 7.05% 1.87%
..............................................................................................................
Ratios and supplemental
data
..............................................................................................................
Net assets, end of
period (thousands) $162,119 $164,255 $105,673 $115,723 $136,449 $ 168,542 $ 199,612
..............................................................................................................
Ratios to average net
assets
Expenses 0.33%+ 0.46% 0.74% 0.63% 0.82%+ 0.61% 0.56%
..............................................................................................................
Net investment income 4.71%+ 4.79% 5.22% 5.46% 4.89%+ 5.73% 5.37%
..............................................................................................................
Portfolio turnover rate 31% 64% 41% 30% 29% 53% 32%
..............................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 -----------------------------------
(Unaudited) 1998 1997 1996 1995 (c)
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
CLASS B SHARES
- --------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.67
------- ------- ------- ------- -------
................................................................................
Income from investment
operations
................................................................................
Net investment income 0.19 0.38 0.42 0.44 0.07
................................................................................
Net realized and
unrealized gains or
losses on securities (0.01) 0.39 0.35 (0.04) 0.10
------- ------- ------- ------- -------
................................................................................
Total from investment
operations 0.18 0.77 0.77 0.40 0.17
------- ------- ------- ------- -------
................................................................................
Less distributions to
shareholders from
................................................................................
Net investment income (0.19) (0.39) (0.43) (0.44) (0.07)
................................................................................
Net realized gains (0.23) (0.21) (0.06) 0 (0.03)
------- ------- ------- ------- -------
................................................................................
Total distributions to
shareholders (0.42) (0.60) (0.49) (0.44) (0.10)
------- ------- ------- ------- -------
................................................................................
Net asset value, end of
period $ 9.91 $ 10.15 $ 9.98 $ 9.70 $ 9.74
------- ------- ------- ------- -------
................................................................................
Total return* 1.80% 7.97% 8.06% 4.17% 1.49%
................................................................................
Ratios and supplemental
data
................................................................................
Net assets, end of
period (thousands) $66,388 $66,142 $31,281 $28,849 $27,351
................................................................................
Ratios to average net
assets
Expenses 1.25%+ 1.36% 1.66% 1.56% 1.44%+
................................................................................
Net investment income 3.79%+ 3.88% 4.29% 4.52% 3.22%+
................................................................................
Portfolio turnover rate 31% 64% 41% 30% 29%
................................................................................
</TABLE>
(a) On June 30, 1995, ABT Florida Tax-Free Fund sold substantially all of its
net assets to Evergreen Florida Municipal Bond Fund. As ABT Florida Tax-
Free Fund is the accounting survivor, its basis of accounting for assets
and liabilities and its operating results for periods prior to June 30,
1995 have been carried forward in these financial highlights.
(b) For the four months ended August 31, 1995. The Fund changed its fiscal year
end from April 30 to August 31, effective August 31, 1995.
(c) For the period from June 30, 1995 (commencement of class operations) to Au-
gust 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
18
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1999 Period Ended
(Unaudited) August 31, 1998 (a)
<S> <C> <C>
- --------------------------------------------------------------------------------
CLASS C SHARES
- --------------------------------------------------------------------------------
Net asset value, beginning of period $10.15 $10.06
------ ------
................................................................................
Income from investment operations
................................................................................
Net investment income 0.19 0.23
................................................................................
Net realized and unrealized gains or
losses on securities (0.01) 0.09
------ ------
................................................................................
Total from investment operations 0.18 0.32
------ ------
................................................................................
Less distributions to shareholders from
................................................................................
Net investment income (0.19) (0.23)
................................................................................
Net realized gains (0.23) 0
------ ------
................................................................................
Total distributions to shareholders (0.42) (0.23)
------ ------
................................................................................
Net asset value, end of period $ 9.91 $10.15
------ ------
................................................................................
Total return* 1.80% 3.25%
................................................................................
Ratios and supplemental data
................................................................................
Net assets, end of period (thousands) $9,895 $8,963
................................................................................
Ratios to average net assets
Expenses 1.25%+ 1.29%+
................................................................................
Net investment income 3.79%+ 3.86%+
................................................................................
Portfolio turnover rate 31% 64%
................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 ------------------------------------
(Unaudited) 1998 1997 1996 1995 (b)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------
CLASS Y SHARES
- ---------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.67
-------- -------- ------- ------- ------
.................................................................................
Income from investment
operations
.................................................................................
Net investment income 0.24 0.48 0.52 0.53 0.09
.................................................................................
Net realized and
unrealized gains or
losses on securities (0.01) 0.39 0.35 (0.03) 0.10
-------- -------- ------- ------- ------
.................................................................................
Total from investment
operations 0.23 0.87 0.87 0.50 0.19
-------- -------- ------- ------- ------
.................................................................................
Less distributions to
shareholders from
.................................................................................
Net investment income (0.24) (0.49) (0.53) (0.54) (0.09)
.................................................................................
Net realized gains (0.23) (0.21) (0.06) 0 (0.03)
-------- -------- ------- ------- ------
.................................................................................
Total distributions to
shareholders (0.47) (0.70) (0.59) (0.54) (0.12)
-------- -------- ------- ------- ------
.................................................................................
Net asset value, end of
period $ 9.91 $ 10.15 $ 9.98 $ 9.70 $ 9.74
-------- -------- ------- ------- ------
.................................................................................
Total return 2.31% 9.05% 9.14% 5.22% 1.67%
.................................................................................
Ratios and supplemental
data
.................................................................................
Net assets, end of
period (thousands) $422,498 $418,847 $24,850 $12,259 $3,602
.................................................................................
Ratios to average net
assets
Expenses 0.25%+ 0.33% 0.67% 0.57% 0.59%+
.................................................................................
Net investment income 4.78%+ 4.85% 5.27% 5.55% 4.93%+
.................................................................................
Portfolio turnover rate 31% 64% 41% 30% 29%
.................................................................................
</TABLE>
(a) For the period from January 26, 1998 (commencement of class operations) to
August 31, 1998.
(b) For the period from June 30, 1995 (commencement of class operations) to Au-
gust 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
19
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended August 31, December 31,
February 28, 1999 -------------------------------- -----------------
(Unaudited) 1998 1997 1996 1995 (a) 1994 1993 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
CLASS A SHARES
- ------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $10.19 $10.00
------ ------ ------ ------ ------ ------ ------
................................................................................................
Income from investment
operations
................................................................................................
Net investment income 0.24 0.49 0.49 0.48 0.33 0.48 0.20
................................................................................................
Net realized and
unrealized gains or
losses on securities 0 0.45 0.33 0.10 0.73 (1.45) 0.19
------ ------ ------ ------ ------ ------ ------
................................................................................................
Total from investment
operations 0.24 0.94 0.82 0.58 1.06 (0.97) 0.39
------ ------ ------ ------ ------ ------ ------
................................................................................................
Less distributions to
shareholders from
................................................................................................
Net investment income (0.24) (0.49) (0.49) (0.48) (0.33) (0.48) (0.20)
................................................................................................
Net realized gains (0.04) 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
................................................................................................
Total distributions to
shareholders (0.28) (0.49) (0.49) (0.48) (0.33) (0.48) (0.20)
------ ------ ------ ------ ------ ------ ------
................................................................................................
Net asset value, end of
period $10.31 $10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $10.19
------ ------ ------ ------ ------ ------ ------
................................................................................................
Total return* 2.41% 9.67% 8.73% 6.22% 12.28% (9.64%) 3.96%
................................................................................................
Ratios and supplemental
data
................................................................................................
Net assets, end of
period (thousands) $3,908 $3,932 $2,201 $1,954 $2,098 $1,387 $ 817
................................................................................................
Ratios to average net
assets
Expenses 0.50%+ 0.57% 0.94% 0.88% 0.71%+ 0.53% 0.25%+
................................................................................................
Net investment income 4.79%+ 4.81% 5.00% 4.96% 5.39%+ 5.26% 4.71%+
................................................................................................
Portfolio turnover rate 13% 50% 32% 21% 91% 147% 15%
................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended August 31, December 31,
February 28, 1999 ---------------------------------- -----------------
(Unaudited) 1998 1997 1996 1995 (a) 1994 1993 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
CLASS B SHARES
- --------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $10.19 $10.00
------- ------- ------- ------ ------ ------ ------
..................................................................................................
Income from investment
operations
..................................................................................................
Net investment income 0.21 0.41 0.41 0.41 0.28 0.43 0.18
..................................................................................................
Net realized and
unrealized gains or
losses on securities 0 0.45 0.33 0.10 0.73 (1.45) 0.19
------- ------- ------- ------ ------ ------ ------
..................................................................................................
Total from investment
operations 0.21 0.86 0.74 0.51 1.01 (1.02) 0.37
------- ------- ------- ------ ------ ------ ------
..................................................................................................
Less distributions to
shareholders from
..................................................................................................
Net investment income (0.21) (0.41) (0.41) (0.41) (0.28) (0.43) (0.18)
..................................................................................................
Net realized gains (0.04) 0 0 0 0 0 0
------- ------- ------- ------ ------ ------ ------
..................................................................................................
Total distributions to
shareholders (0.25) (0.41) (0.41) (0.41) (0.28) (0.43) (0.18)
------- ------- ------- ------ ------ ------ ------
..................................................................................................
Net asset value, end of
period $ 10.31 $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $10.19
------- ------- ------- ------ ------ ------ ------
..................................................................................................
Total return* 2.03% 8.86% 7.93% 5.44% 11.72% (10.15%) 3.74%
..................................................................................................
Ratios and supplemental
data
..................................................................................................
Net assets, end of
period (thousands) $13,508 $12,559 $10,870 $9,271 $7,538 $6,912 $3,692
..................................................................................................
Ratios to average net
assets
Expenses 1.25%+ 1.34% 1.69% 1.63% 1.46%+ 1.13% 0.75%+
..................................................................................................
Net investment income 4.04%+ 4.06% 4.25% 4.21% 4.64%+ 4.66% 4.15%+
..................................................................................................
Portfolio turnover rate 13% 50% 32% 21% 91% 147% 15%
..................................................................................................
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from July 2, 1993 (commencement of class operations) to De-
cember 31, 1993.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
20
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 --------------------------------- Period Ended
(Unaudited) 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
CLASS Y SHARES
- ----------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $9.83
------- ------- ------ ------ ------ -----
....................................................................................................
Income from investment
operations
....................................................................................................
Net investment income 0.26 0.51 0.51 0.50 0.35 0.42
....................................................................................................
Net realized and
unrealized gains or
losses on securities 0 0.45 0.33 0.10 0.73 (1.09)
------- ------- ------ ------ ------ -----
....................................................................................................
Total from investment
operations 0.26 0.96 0.84 0.60 1.08 (0.67)
------- ------- ------ ------ ------ -----
....................................................................................................
Less distributions to
shareholders from
....................................................................................................
Net investment income (0.26) (0.51) (0.51) (0.50) (0.35) (0.42)
....................................................................................................
Net realized gains (0.04) 0 0 0 0 0
------- ------- ------ ------ ------ -----
....................................................................................................
Total distributions to
shareholders (0.30) (0.51) (0.51) (0.50) (0.35) (0.42)
------- ------- ------ ------ ------ -----
....................................................................................................
Net asset value, end of
period $ 10.31 $ 10.35 $ 9.90 $ 9.57 $ 9.47 $8.74
------- ------- ------ ------ ------ -----
....................................................................................................
Total return 2.53% 9.94% 9.00% 6.48% 12.47% (6.86%)
....................................................................................................
Ratios and supplemental
data
....................................................................................................
Net assets, end of
period (thousands) $72,619 $67,630 $1,180 $1,620 $1,339 $ 284
....................................................................................................
Ratios to average net
assets
Expenses 0.25%+ 0.24% 0.69% 0.63% 0.46%+ 0.31%+
....................................................................................................
Net investment income 5.05%+ 5.09% 5.25% 5.21% 5.64%+ 5.68%+
....................................................................................................
Portfolio turnover rate 13% 50% 32% 21% 91% 147%
....................................................................................................
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994, (commencement of class operations)
to December 31, 1994.
+ Annualized.
See Combined Notes to Financial Statements.
21
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
February 28, 1999 Year Ended -------------------------------------------------
(Unaudited) August 31, 1998 (a) (b) 1997 (a) 1996 (a) 1995 (a) 1994 (a) 1993 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
- ---------------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 11.16 $ 10.91 $ 10.56 $ 10.69 $ 10.17 $ 11.24 $ 10.39
------- ------- ------- ------- ------- ------- -------
.....................................................................................................................
Income from investment
operations
.....................................................................................................................
Net investment income 0.24 0.36 0.37 0.38 0.40 0.45 0.49
.....................................................................................................................
Net realized and
unrealized gains or
losses on securities 0.05 0.25 0.35 (0.13) 0.54 (0.97) 0.85
------- ------- ------- ------- ------- ------- -------
.....................................................................................................................
Total from investment
operations 0.29 0.61 0.72 0.25 0.94 (0.52) 1.34
------- ------- ------- ------- ------- ------- -------
.....................................................................................................................
Less distributions to
shareholders from
.....................................................................................................................
Net investment income (0.24) (0.36) (0.37) (0.38) (0.40) (0.45) (0.49)
.....................................................................................................................
Net realized gains (0.09) 0 0 0 (0.02) (0.10) 0
------- ------- ------- ------- ------- ------- -------
.....................................................................................................................
Total distributions to
shareholders (0.33) (0.36) (0.37) (0.38) (0.42) (0.55) (0.49)
------- ------- ------- ------- ------- ------- -------
.....................................................................................................................
Net asset value, end of
period $ 11.12 $ 11.16 $ 10.91 $ 10.56 $ 10.69 $ 10.17 $ 11.24
------- ------- ------- ------- ------- ------- -------
.....................................................................................................................
Total return* 2.56% 5.70% 6.92% 2.36% 9.81% (4.74%) 13.24%
.....................................................................................................................
Ratios and supplemental
data
.....................................................................................................................
Net assets, end of
period (thousands) $25,500 $24,754 $27,786 $31,284 $32,172 $34,580 $33,907
.....................................................................................................................
Ratios to average net
assets
Expenses 0.78%+ 1.52%+ 1.69% 1.43% 1.24% 1.17% 1.00%
.....................................................................................................................
Net investment income 4.27%+ 3.56%+ 3.45% 3.57% 4.24% 4.22% 4.50%
.....................................................................................................................
Portfolio turnover rate 21% 37% 13% 138% 21% 27% 23%
.....................................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1999 Period Ended
(Unaudited) August 31, 1998 (c)
- -------------------------------------------------------------------------------
CLASS B SHARES
- -------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $11.16 $10.99
------ ------
...............................................................................
Income from investment operations
...............................................................................
Net investment income 0.19 0.16
...............................................................................
Net realized and unrealized gains or
losses on securities 0.05 0.17
------ ------
...............................................................................
Total from investment operations 0.24 0.33
------ ------
...............................................................................
Less distributions to shareholders from
...............................................................................
Net investment income (0.19) (0.16)
...............................................................................
Net realized gains (0.09) 0
------ ------
...............................................................................
Total distributions to shareholders (0.28) (0.16)
------ ------
...............................................................................
Net asset value, end of period $11.12 $11.16
------ ------
...............................................................................
Total return* 2.18% 2.99%
...............................................................................
Ratios and supplemental data
...............................................................................
Net assets, end of period (thousands) $2,335 $ 990
...............................................................................
Ratios to average net assets
Expenses 1.53%+ 1.49%+
...............................................................................
Net investment income 3.48%+ 3.41%+
...............................................................................
Portfolio turnover rate 21% 37%
...............................................................................
</TABLE>
(a) On February 28, 1998, Virtus Maryland Municipal Bond Fund sold substan-
tially all of its net assets to Evergreen Maryland Municipal Bond Fund. As
Virtus Maryland Municipal Bond Fund is the accounting survivor, its basis
of accounting for assets and liabilities and its operating results for the
periods prior to February 28, 1998 have been carried forward in these fi-
nancial highlights.
(b) For the eleven months ended August 31, 1998. The Fund changed its fiscal
year end from September 30 to August 31, effective August 31, 1998.
(c) For the period from March 27, 1998 (commencement of class operations) to
August 31, 1998.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
22
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Period Ended
February 28, 1999 (c)
(Unaudited)
<S> <C>
- ------------------------------------------------------------------------------
CLASS C SHARES
- ------------------------------------------------------------------------------
Net asset value, beginning of period $11.11
------
..............................................................................
Income from investment operations
..............................................................................
Net investment income 0.07
..............................................................................
Net realized and unrealized gains or losses on
securities 0.01
------
..............................................................................
Total from investment operations 0.08
------
..............................................................................
Less distributions to shareholders from net investment
income (0.07)
------
..............................................................................
Net asset value, end of period $11.12
------
..............................................................................
Total return* 0.69%
..............................................................................
Ratios and supplemental data
..............................................................................
Net assets, end of period (thousands) $ 16
..............................................................................
Ratios to average net assets
Expenses 1.53%+
..............................................................................
Net investment income 3.48%+
..............................................................................
Portfolio turnover rate 21%
..............................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
February 28, 1999 Year Ended ----------------------------------------------
(Unaudited) August 31, 1998 (a) (b) 1997 (a) 1996 (a) 1995 (a) 1994 (a) 1993 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
CLASS Y SHARES
- ------------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $11.16 $10.91 $10.56 $10.69 $10.17 $ 11.24 $ 10.39
------ ------ ------ ------ ------ ------- -------
..................................................................................................................
Income from investment
operations
..................................................................................................................
Net investment income 0.25 0.39 0.40 0.41 0.42 0.48 0.50
..................................................................................................................
Net realized and
unrealized gains or
losses on securities 0.05 0.25 0.35 (0.13) 0.54 (0.97) 0.85
------ ------ ------ ------ ------ ------- -------
..................................................................................................................
Total from investment
operations 0.30 0.64 0.75 0.28 0.96 (0.49) 1.35
------ ------ ------ ------ ------ ------- -------
..................................................................................................................
Less distributions to
shareholders from
..................................................................................................................
Net investment income (0.25) (0.39) (0.40) (0.41) (0.42) (0.48) (0.50)
..................................................................................................................
Net realized gains (0.09) 0 0 0 (0.02) (0.10) 0
------ ------ ------ ------ ------ ------- -------
..................................................................................................................
Total distributions to
shareholders (0.34) (0.39) (0.40) (0.41) (0.44) (0.58) (0.50)
------ ------ ------ ------ ------ ------- -------
..................................................................................................................
Net asset value, end of
period $11.12 $11.16 $10.91 $10.56 $10.69 $ 10.17 $ 11.24
------ ------ ------ ------ ------ ------- -------
..................................................................................................................
Total return 2.69% 5.94% 7.19% 2.61% 10.09% (4.50%) 13.37%
..................................................................................................................
Ratios and supplemental
data
..................................................................................................................
Net assets, end of
period (thousands) $8,140 $5,229 $5,683 $8,889 $9,447 $11,301 $12,014
..................................................................................................................
Ratios to average net
assets
Expenses 0.54%+ 1.25%+ 1.44% 1.18% 0.99% 0.92% 0.86%
..................................................................................................................
Net investment income 4.56%+ 3.83%+ 3.70% 3.82% 4.49% 4.46% 4.64%
..................................................................................................................
Portfolio turnover rate 21% 37% 13% 138% 21% 27% 23%
..................................................................................................................
</TABLE>
(a) On February 28, 1998, Virtus Maryland Municipal Bond Fund sold substan-
tially all of its net assets to Evergreen Maryland Municipal Bond Fund. As
Virtus Maryland Municipal Bond Fund is the accounting survivor, its basis
of accounting for assets and liabilities and its operating results for the
periods prior to February 28, 1998 have been carried forward in these fi-
nancial highlights.
(b) For the eleven months ended August 31, 1998. The Fund changed its fiscal
year end from September 30 to August 31, effective August 31, 1998.
(c) For the period from December 23, 1998 (commencement of class operations) to
February 28, 1999.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
23
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended August 31, December 31,
February 28, 1999 --------------------------------- -----------------
(Unaudited) 1998 1997 1996 1995 (b) 1994 1993 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
CLASS A SHARES
- -------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $10.61 $ 10.00
------- ------- ------ ------ ------ ------ -------
.................................................................................................
Income from investment
operations
.................................................................................................
Net investment income 0.25 0.51 0.49 0.49 0.33 0.49 0.46
.................................................................................................
Net realized and
unrealized gains or
losses on securities (0.04) 0.47 0.40 0.02 0.79 (1.45) 0.64
------- ------- ------ ------ ------ ------ -------
.................................................................................................
Total from investment
operations 0.21 0.98 0.89 0.51 1.12 (0.96) 1.10
------- ------- ------ ------ ------ ------ -------
.................................................................................................
Less distributions to
shareholders from
.................................................................................................
Net investment income (0.25) (0.51) (0.50) (0.48) (0.33) (0.49) (0.46)
.................................................................................................
Net realized gains (0.06) 0 0 0 0 0 (0.03)
------- ------- ------ ------ ------ ------ -------
.................................................................................................
Total distributions to
shareholders (0.31) (0.51) (0.50) (0.48) (0.33) (0.49) (0.49)
------- ------- ------ ------ ------ ------ -------
.................................................................................................
Net asset value, end of
period $ 10.74 $ 10.84 $10.37 $ 9.98 $ 9.95 $ 9.16 $ 10.61
------- ------- ------ ------ ------ ------ -------
.................................................................................................
Total return* 1.96% 9.66% 9.11% 5.21% 12.34% (9.12%) 11.28%
.................................................................................................
Ratios and supplemental
data
.................................................................................................
Net assets, end of
period (thousands) $17,108 $15,768 $8,115 $7,989 $8,279 $7,979 $12,739
.................................................................................................
Ratios to average net
assets
Expenses 0.45%+ 0.56% 1.11% 1.08% 0.92%+ 0.79% 0.32%+
.................................................................................................
Net investment income 4.74%+ 4.81% 4.77% 4.81% 5.09%+ 5.11% 4.91%+
.................................................................................................
Portfolio turnover rate 23% 53% 50% 86% 117% 126% 57%
.................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended August 31, December 31,
February 28, 1999 ----------------------------------- ------------------
(Unaudited) 1998 1997 1996 1995 (b) 1994 1993 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
CLASS B SHARES
- -----------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $ 10.61 $ 10.00
------- ------- ------- ------- ------- ------- -------
.....................................................................................................
Income from investment
operations
.....................................................................................................
Net investment income 0.21 0.43 0.41 0.42 0.28 0.44 0.42
.....................................................................................................
Net realized and
unrealized gains or
losses on securities (0.04) 0.47 0.40 0.02 0.79 (1.45) 0.64
------- ------- ------- ------- ------- ------- -------
.....................................................................................................
Total from investment
operations 0.17 0.90 0.81 0.44 1.07 (1.01) 1.06
------- ------- ------- ------- ------- ------- -------
.....................................................................................................
Less distributions to
shareholders from
.....................................................................................................
Net investment income (0.21) (0.43) (0.42) (0.41) (0.28) (0.44) (0.42)
.....................................................................................................
Net realized gains (0.06) 0 0 0 0 0 (0.03)
------- ------- ------- ------- ------- ------- -------
.....................................................................................................
Total distributions to
shareholders (0.27) (0.43) (0.42) (0.41) (0.28) (0.44) (0.45)
------- ------- ------- ------- ------- ------- -------
.....................................................................................................
Net asset value, end of
period $ 10.74 $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $ 10.61
------- ------- ------- ------- ------- ------- -------
.....................................................................................................
Total return* 1.59% 8.85% 8.30% 4.42% 11.78% (9.64%) 10.80%
.....................................................................................................
Ratios and supplemental
data
.....................................................................................................
Net assets, end of
period (thousands) $50,005 $49,320 $48,198 $49,382 $49,040 $44,616 $45,168
.....................................................................................................
Ratios to average net
assets
Expenses 1.20%+ 1.33% 1.86% 1.83% 1.67%+ 1.37% 0.79%+
.....................................................................................................
Net investment income 3.98%+ 4.07% 4.02% 4.06% 4.34%+ 4.53% 4.47%+
.....................................................................................................
Portfolio turnover rate 23% 53% 50% 86% 117% 126% 57%
.....................................................................................................
</TABLE>
(a) For the period from January 11, 1993 (commencement of class operations) to
December 31, 1993.
(b) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
24
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 ---------------------------------- Period Ended
(Unaudited) 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
CLASS Y SHARES
- -----------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $10.31
-------- -------- ------ ------ ------ ------
.....................................................................................................
Income from investment
operations
.....................................................................................................
Net investment income 0.27 0.54 0.51 0.51 0.35 0.43
.....................................................................................................
Net realized and
unrealized gains or
losses on securities (0.04) 0.47 0.41 0.03 0.79 (1.15)
-------- -------- ------ ------ ------ ------
.....................................................................................................
Total from investment
operations 0.23 1.01 0.92 0.54 1.14 (0.72)
-------- -------- ------ ------ ------ ------
.....................................................................................................
Less distributions to
shareholders from
.....................................................................................................
Net investment income (0.27) (0.54) (0.53) (0.51) (0.35) (0.43)
.....................................................................................................
Net realized gains (0.06) 0 0 0 0 0
-------- -------- ------ ------ ------ ------
.....................................................................................................
Total distributions to
shareholders (0.33) (0.54) (0.53) (0.51) (0.35) (0.43)
-------- -------- ------ ------ ------ ------
.....................................................................................................
Net asset value, end of
period $ 10.74 $ 10.84 $10.37 $ 9.98 $ 9.95 $ 9.16
-------- -------- ------ ------ ------ ------
.....................................................................................................
Total return 2.09% 9.93% 9.39% 5.47% 12.52% (7.01%)
.....................................................................................................
Ratios and supplemental
data
.....................................................................................................
Net assets, end of
period (thousands) $254,233 $256,231 $4,042 $3,771 $1,006 $ 642
.....................................................................................................
Ratios to average net
assets
Expenses 0.20%+ 0.20% 0.86% 0.84% 0.67%+ 0.59%+
.....................................................................................................
Net investment income 4.98%+ 5.04% 5.02% 5.05% 5.34%+ 5.58%+
.....................................................................................................
Portfolio turnover rate 23% 53% 50% 86% 117% 126%
.....................................................................................................
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994 (commencement of class operations) to
December 31, 1994.
+ Annualized.
See Combined Notes to Financial Statements.
25
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 ------------------------------- Period Ended
(Unaudited) 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
CLASS A SHARES
- --------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $10.44 $10.08 $ 9.69 $9.59 $8.62 $10.00
------ ------ ------ ----- ----- ------
..................................................................................................
Income from investment
operations
..................................................................................................
Net investment income 0.23 0.46 0.48 0.49 0.34 0.46
..................................................................................................
Net realized and
unrealized gains or
losses on securities (0.01) 0.39 0.40 0.10 0.97 (1.38)
------ ------ ------ ----- ----- ------
..................................................................................................
Total from investment
operations 0.22 0.85 0.88 0.59 1.31 (0.92)
------ ------ ------ ----- ----- ------
..................................................................................................
Less distributions to
shareholders from
..................................................................................................
Net investment income (0.23) (0.46) (0.48) (0.49) (0.34) (0.46)
..................................................................................................
Net realized gains (0.10) (0.03) (0.01) 0 0 0
------ ------ ------ ----- ----- ------
..................................................................................................
Total distributions to
shareholders (0.33) (0.49) (0.49) (0.49) (0.34) (0.46)
------ ------ ------ ----- ----- ------
..................................................................................................
Net asset value, end of
period $10.33 $10.44 $10.08 $9.69 $9.59 $ 8.62
------ ------ ------ ----- ----- ------
..................................................................................................
Total return* 2.08% 8.60% 9.33% 6.23% 15.35% (9.32%)
..................................................................................................
Ratios and supplemental
data
..................................................................................................
Net assets, end of
period (thousands) $2,078 $1,744 $1,025 $ 841 $ 610 $ 312
..................................................................................................
Ratios to average net
assets
Expenses 0.70%+ 0.77% 0.98% 0.86% 0.53%+ 0.25%+
..................................................................................................
Net investment income 4.44%+ 4.56% 4.87% 4.98% 5.41%+ 5.57%+
..................................................................................................
Portfolio turnover rate 17% 31% 62% 37% 66% 23%
..................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 -------------------------------- Period Ended
(Unaudited) 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
CLASS B SHARES
- ---------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $10.44 $10.08 $ 9.69 $ 9.59 $ 8.62 $10.00
------ ------ ------ ------ ------ ------
...................................................................................................
Income from investment
operations
...................................................................................................
Net investment income 0.19 0.38 0.41 0.41 0.29 0.41
...................................................................................................
Net realized and
unrealized gains or
losses on securities (0.01) 0.39 0.40 0.10 0.97 (1.38)
------ ------ ------ ------ ------ ------
...................................................................................................
Total from investment
operations 0.18 0.77 0.81 0.51 1.26 (0.97)
------ ------ ------ ------ ------ ------
...................................................................................................
Less distributions to
shareholders from
...................................................................................................
Net investment income (0.19) (0.38) (0.41) (0.41) (0.29) (0.41)
...................................................................................................
Net realized gains (0.10) (0.03) (0.01) 0 0 0
------ ------ ------ ------ ------ ------
...................................................................................................
Total distributions to
shareholders (0.29) (0.41) (0.42) (0.41) (0.29) (0.41)
------ ------ ------ ------ ------ ------
...................................................................................................
Net asset value, end of
period $10.33 $10.44 $10.08 $ 9.69 $ 9.59 $ 8.62
------ ------ ------ ------ ------ ------
...................................................................................................
Total return* 1.70% 7.79% 8.52% 5.43% 14.77% (9.83%)
...................................................................................................
Ratios and supplemental
data
...................................................................................................
Net assets, end of
period (thousands) $4,825 $4,542 $4,734 $4,282 $3,542 $2,456
...................................................................................................
Ratios to average net
assets
Expenses 1.45%+ 1.53% 1.73% 1.61% 1.28%+ 0.87%+
...................................................................................................
Net investment income 3.69%+ 3.76% 4.13% 4.23% 4.66%+ 4.88%+
...................................................................................................
Portfolio turnover rate 17% 31% 62% 37% 66% 23%
...................................................................................................
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from January 3, 1994 (commencement of class operations) to
December 31, 1994
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
26
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 --------------------------------- Period Ended
(Unaudited) 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
CLASS Y SHARES
- ----------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.44 $ 10.08 $ 9.69 $ 9.59 $ 8.62 $ 9.74
------- ------- ------ ------ ------ ------
....................................................................................................
Income from investment
operations
....................................................................................................
Net investment income 0.24 0.48 0.51 0.51 0.35 0.43
....................................................................................................
Net realized and
unrealized gains or
losses on securities (0.01) 0.40 0.40 0.10 0.97 (1.12)
------- ------- ------ ------ ------ ------
....................................................................................................
Total from investment
operations 0.23 0.88 0.91 0.61 1.32 (0.69)
------- ------- ------ ------ ------ ------
....................................................................................................
Less distributions to
shareholders from
....................................................................................................
Net investment income (0.24) (0.49) (0.51) (0.51) (0.35) (0.43)
....................................................................................................
Net realized gains (0.10) (0.03) (0.01) 0 0 0
------- ------- ------ ------ ------ ------
....................................................................................................
Total distributions to
shareholders (0.34) (0.52) (0.52) (0.51) (0.35) (0.43)
------- ------- ------ ------ ------ ------
....................................................................................................
Net asset value, end of
period $ 10.33 $ 10.44 $10.08 $ 9.69 $ 9.59 $ 8.62
------- ------- ------ ------ ------ ------
....................................................................................................
Total return 2.20% 8.87% 9.60% 6.49% 15.54% (7.12%)
....................................................................................................
Ratios and supplemental
data
....................................................................................................
Net assets, end of
period (thousands) $64,359 $66,303 $7,012 $4,555 $1,673 $ 92
....................................................................................................
Ratios to average net
assets
Expenses 0.45%+ 0.46% 0.73% 0.62% 0.28%+ 0.00%+
....................................................................................................
Net investment income 4.69%+ 4.71% 5.12% 5.22% 5.66%+ 5.92%+
....................................................................................................
Portfolio turnover rate 17% 31% 62% 37% 66% 23%
....................................................................................................
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994 (commencement of class operations) to
December 31, 1994.
+ Annualized.
See Combined Notes to Financial Statements.
27
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended August 31, December 31,
February 28, 1999 --------------------------------- -----------------
(Unaudited) 1998 1997 1996 1995 (b) 1994 1993 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
CLASS A SHARES
- -------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.46 $ 10.05 $ 9.68 $ 9.67 $ 8.85 $10.19 $10.00
------- ------- ------ ------ ------ ------ ------
.................................................................................................
Income from investment
operations
.................................................................................................
Net investment income 0.24 0.48 0.50 0.48 0.33 0.47 0.20
.................................................................................................
Net realized and
unrealized gains or
losses on securities 0.02 0.42 0.37 0.01 0.82 (1.34) 0.19
------- ------- ------ ------ ------ ------ ------
.................................................................................................
Total from investment
operations 0.26 0.90 0.87 0.49 1.15 (0.87) 0.39
------- ------- ------ ------ ------ ------ ------
.................................................................................................
Less distributions to
shareholders from
.................................................................................................
Net investment income (0.24) (0.49) (0.50) (0.48) (0.33) (0.47) (0.20)
.................................................................................................
Net realized gains (0.08) 0 0 0 0 0 0
------- ------- ------ ------ ------ ------ ------
.................................................................................................
Total distributions to
shareholders (0.32) (0.49) (0.50) (0.48) (0.33) (0.47) (0.20)
------- ------- ------ ------ ------ ------ ------
.................................................................................................
Net asset value, end of
period $ 10.40 $ 10.46 $10.05 $ 9.68 $ 9.67 $ 8.85 $10.19
------- ------- ------ ------ ------ ------ ------
.................................................................................................
Total return* 2.51% 9.12% 9.05% 5.12% 13.09% (8.60%) 3.89%
.................................................................................................
Ratios and supplemental
data
.................................................................................................
Net assets, end of
period (thousands) $53,829 $54,298 $2,934 $2,892 $1,983 $1,606 $1,306
.................................................................................................
Ratios to average net
assets
Expenses 0.49%+ 0.50% 1.03% 0.93% 0.72%+ 0.53% 0.25%+
.................................................................................................
Net investment income 4.71%+ 4.71% 4.95% 4.83% 5.17%+ 5.11% 4.64%+
.................................................................................................
Portfolio turnover rate 19% 46% 72% 68% 87% 59% 0%
.................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended August 31, December 31,
February 28, 1999 -------------------------------- -----------------
(Unaudited) 1998 1997 1996 1995 (b) 1994 1993 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
CLASS B SHARES
- ------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.46 $10.05 $ 9.68 $ 9.67 $ 8.85 $10.19 $10.00
------- ------ ------ ------ ------ ------ ------
................................................................................................
Income from investment
operations
................................................................................................
Net investment income 0.20 0.41 0.41 0.41 0.28 0.42 0.17
................................................................................................
Net realized and
unrealized gains or
losses on securities 0.02 0.41 0.37 0.01 0.82 (1.34) 0.19
------- ------ ------ ------ ------ ------ ------
................................................................................................
Total from investment
operations 0.22 0.82 0.78 0.42 1.10 (0.92) 0.36
------- ------ ------ ------ ------ ------ ------
................................................................................................
Less distributions to
shareholders from
................................................................................................
Net investment income (0.20) (0.41) (0.41) (0.41) (0.28) (0.42) (0.17)
................................................................................................
Net realized gains (0.08) 0 0 0 0 0 0
------- ------ ------ ------ ------ ------ ------
................................................................................................
Total distributions to
shareholders (0.28) (0.41) (0.41) (0.41) (0.28) (0.42) (0.17)
------- ------ ------ ------ ------ ------ ------
................................................................................................
Net asset value, end of
period $ 10.40 $10.46 $10.05 $ 9.68 $ 9.67 $ 8.85 $10.19
------- ------ ------ ------ ------ ------ ------
................................................................................................
Total return* 2.13% 8.31% 8.24% 4.34% 12.53% (9.13%) 3.66%
................................................................................................
Ratios and supplemental
data
................................................................................................
Net assets, end of
period (thousands) $11,683 $8,935 $6,695 $5,963 $5,083 $3,817 $2,235
................................................................................................
Ratios to average net
assets
Expenses 1.24%+ 1.35% 1.79% 1.68% 1.47%+ 1.12% 0.75%+
................................................................................................
Net investment income 3.95%+ 3.99% 4.21% 4.09% 4.42%+ 4.54% 4.25%+
................................................................................................
Portfolio turnover rate 19% 46% 72% 68% 87% 59% 0%
................................................................................................
</TABLE>
(a) For the period from July 2, 1993 (commencement of class operations) to De-
cember 31, 1993.
(b) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
See Combined Notes to Financial Statements.
28
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1999 ---------------------------------- Period Ended
(Unaudited) 1998 1997 1996 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
CLASS Y SHARES
- -----------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 10.46 $ 10.05 $ 9.68 $ 9.67 $8.85 $9.83
-------- -------- ------ ------ ----- -----
.....................................................................................................
Income from investment
operations
.....................................................................................................
Net investment income 0.26 0.51 0.51 0.50 0.34 0.41
.....................................................................................................
Net realized and
unrealized gains or
losses on securities 0.02 0.41 0.37 0.01 0.82 (0.98)
-------- -------- ------ ------ ----- -----
.....................................................................................................
Total from investment
operations 0.28 0.92 0.88 0.51 1.16 (0.57)
-------- -------- ------ ------ ----- -----
.....................................................................................................
Less distributions to
shareholders from
.....................................................................................................
Net investment income (0.26) (0.51) (0.51) (0.50) (0.34) (0.41)
.....................................................................................................
Net realized gains (0.08) 0 0 0 0 0
-------- -------- ------ ------ ----- -----
.....................................................................................................
Total distributions to
shareholders (0.34) (0.51) (0.51) (0.50) (0.34) (0.41)
-------- -------- ------ ------ ----- -----
.....................................................................................................
Net asset value, end of
period $ 10.40 $ 10.46 $10.05 $ 9.68 $9.67 $8.85
-------- -------- ------ ------ ----- -----
.....................................................................................................
Total return 2.64% 9.39% 9.32% 5.38% 13.28% (5.80%)
.....................................................................................................
Ratios and supplemental
data
.....................................................................................................
Net assets, end of
period (thousands) $114,437 $105,931 $6,195 $4,266 $ 965 $ 344
.....................................................................................................
Ratios to average net
assets
Expenses 0.25%+ 0.25% 0.79% 0.70% 0.47%+ 0.28%+
.....................................................................................................
Net investment income 4.97%+ 4.98% 5.27% 5.05% 5.42%+ 5.54%+
.....................................................................................................
Portfolio turnover rate 19% 46% 72% 68% 87% 59%
.....................................................................................................
</TABLE>
(a) For the period from February 28, 1994 (commencement of class operations) to
December 31, 1994.
(b) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
+ Annualized.
See Combined Notes to Financial Statements.
29
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida High Income Municipal Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 97.2%
California - 2.0%
Heritage Pines, CA CDA RB:
$ 2,720,000 Ser. A,
6.10%, 5/1/20...................................... $ 2,691,032
6,380,000 Ser. B,
5.50%, 5/1/05...................................... 6,326,791
------------
9,017,823
------------
Florida - 87.2%
710,000 Alachua Cnty., FL Hlth. Facs.
Auth. RB, Beverly Enterprises Proj.,
10.125%, 4/1/10.................................... 733,615
Arbor Greene, FL CDD, Spl. Assmt. RB:
1,795,000 5.75%, 5/1/06...................................... 1,805,303
500,000 6.30%, 5/1/19...................................... 506,545
750,000 7.60%, 5/1/18...................................... 812,213
3,000,000 Baker Cnty., FL Hosp. Auth., Hlth. Care Facs. RB,
5.30%, 12/1/23..................................... 2,955,000
Bayside, FL CDD, Capital Impt.
RB, WCI Communities Property, Inc.:
1,720,000 Ser. A,
5.95%, 5/1/08...................................... 1,731,919
Ser. B:
2,615,000 6.05%, 5/1/08...................................... 2,633,017
2,560,000 6.375%, 5/1/18..................................... 2,580,071
100,000 Baytree, FL CDD, Spl. Assmt. RB,
8.75%, 5/1/12...................................... 109,073
Bobcat Trail, FL CDD RB:
1,525,000 Ser. B,
6.75%, 5/1/04...................................... 1,544,688
1,100,000 Ser. A,
7.50%, 5/1/19...................................... 1,136,091
750,000 Boynton Beach, FL MHRB, Clipper
Cove Apts.,
6.35%, 7/1/16...................................... 806,048
1,875,000 Brevard Cnty., FL Hlth. Facs.
Auth. RB, Courtenay Springs Vlg.,
7.50%, 11/15/12.................................... 2,239,406
1,000,000 Brevard Cnty., FL Tourist Dev.
Tax RB, Marlins Spring,
6.875%, 3/1/13..................................... 1,071,390
850,000 Broward Cnty., FL HFA RB, Ser. A, (GNMA)
7.35%, 3/1/23...................................... 892,832
Broward Cnty., FL MHRB:
Cross Keys Apts. Proj.:
1,770,000 Ser. A,
5.80%, 10/1/33..................................... 1,828,782
Pembroke Park Apts. Proj.:
1,200,000 5.65%, 10/1/28..................................... 1,230,744
1,035,000 5.70%, 10/1/33..................................... 1,061,444
Stirling Apts. Proj.:
2,090,000 5.65%, 10/1/28..................................... 2,143,546
1,580,000 5.70%, 10/1/33..................................... 1,620,369
9,395,000 Cape Canaveral, FL Hosp. Dist. RB,
5.25%, 1/1/28...................................... 9,017,227
Cape Coral, FL Hlth. Facs. Auth. RB. First Mtge.
Gulf Care Inc. Proj.:
1,000,000 5.50%, 10/1/17..................................... 1,034,870
1,400,000 5.625%, 10/1/27.................................... 1,459,528
Florida - continued
Championsgate, FL CDD, Capital
Impt. RB:
$ 2,840,000 Ser. A,
6.25%, 5/1/20...................................... 2,790,641
1,515,000 Ser. B,
5.70%, 5/1/05...................................... 1,500,895
2,125,000 Clay Cnty., FL HFA SFHRB,
Multi-Cnty. Program,
5.95%, 10/1/19..................................... 2,242,002
Collier Cnty., FL HFA RB,
Saxon Manor Proj.:
2,000,000 Ser. A1,
5.45%, 3/1/30...................................... 2,023,060
1,000,000 Ser. B,
5.45%, 3/1/30...................................... 1,011,530
2,740,000 Cory Lakes, FL CDD RB,
8.375%, 5/1/17.................................... 2,922,018
1,080,000 Crossings at Fleming Island, FL
CDD, Util. RB,
7.375%, 10/1/19................................... 1,143,871
Dade Cnty., FL MHRB,
Golden Lakes Apts. Proj., Ser. A:
1,370,000 5.90%, 11/1/22..................................... 1,436,267
500,000 6.00%, 11/1/32..................................... 524,065
2,310,000 Duval Cnty., FL HFA RB, Saint
Augustine Apts. Proj.,
6.00%, 3/1/21..................................... 2,407,875
1,465,000 Eastlake Oaks, FL CDD RB,
7.75%, 5/1/17..................................... 1,565,953
4,400,000 Escambia Cnty., FL HFA SFHRB,
Multi-Cnty. Program,
6.85%, 10/1/17.................................... 4,706,284
Escambia Cnty., FL Hlth. Facs.
Auth. RB:
Azalea Trace Inc.:
2,905,000 6.00%, 1/1/15...................................... 2,991,801
2,250,000 6.10%, 1/1/19...................................... 2,334,083
1,500,000 Baptist Hosp., Inc., Ser. B,
6.00%, 10/1/14..................................... 1,560,270
19,395,000 Baptist Hosp., Inc. & Baptist Manor,
5.125%, 10/1/19.................................... 18,924,089
Escambia Cnty., FL PCRB,
Champion Intl. Corporate Proj.:
3,000,000 6.40%, 9/1/30...................................... 3,196,770
2,000,000 6.90%, 8/1/22...................................... 2,195,220
Florida HFA RB:
2,045,000 8.00%, 12/1/20.................................... 2,109,438
1,600,000 Glen Oaks Apts. Proj.,
5.80%, 8/1/17...................................... 1,677,792
2,945,000 Mar Logo Vlg. Apts. Proj., Ser. F,
6.00%, 6/1/39...................................... 3,114,661
St. Cloud Vlg. Proj.:
4,905,000 Ser. D,
5.95%, 2/1/30...................................... 5,179,533
1,395,000 Ser. E,
8.00%, 2/1/30...................................... 1,439,180
1,000,000 The Vineyards Proj., Ser. H,
6.50%, 11/1/25..................................... 1,073,170
2,095,000 Florida HFA SFHRB, Ser. A,
6.65%, 1/1/24..................................... 2,256,399
</TABLE>
30
<PAGE>
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E V E R G R E E N
Florida High Income Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments(continued)
February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Florida Hsg. Fin. Corp. RB:
$ 3,670,000 Hsg. Hunters Ridge Deerwood,
5.30%, 12/1/28.................................... $ 3,676,056
3,160,000 Kendall Court Apts., Ser. D, (FNMA),
5.375%, 8/1/28.................................... 3,197,572
Grand Haven, FL CDD, Spl. Assmt. RB, Ser. A:
11,325,000 6.30%, 5/1/02..................................... 11,593,289
3,850,000 6.90%, 5/1/19..................................... 3,983,326
3,000,000 Heritage Harbor, FL CDD, RB,
7.75%, 5/1/19..................................... 3,036,750
Heritage Isles, FL CDD, RB:
4,000,000 7.10%, 10/1/23.................................... 3,949,280
2,600,000 Ser. A,
5.75%, 5/1/05..................................... 2,618,564
2,600,000 Spl. Assmt. RB, Ser. B,
6.00%, 5/1/20..................................... 2,541,864
Heritage Oak Park, FL CDD, Spl.
Assmt. RB:
2,950,000 Ser. A,
6.50%, 5/1/20..................................... 2,936,223
5,885,000 Ser. B,
6.00%, 5/1/05..................................... 5,812,850
6,000,000 Heritage Springs, FL CDD, BAN,
6.25%, 12/15/99................................... 5,996,820
3,610,000 Hernando Cnty., FL IDA RB,
Crushed Stone Co.,
8.50%, 12/1/14.................................... 4,055,185
3,680,000 Hialeah Gardens, FL Hsg. Auth.
RB, GNMA Affordable Hsg. Program,
5.80%, 6/20/33.................................... 3,898,776
1,490,000 Hialeah Gardens, FL IDA RB,
Waterford Convalescent, Ser. A,
7.875%, 12/1/07................................... 1,610,198
1,000,000 Hillsborough Cnty., FL HFA
SFHRB,
5.875%, 10/1/30................................... 1,047,760
600,000 Hillsborough Cnty., FL Aviation
Auth. RB, US Air Proj., Ser. 2,
8.60%, 1/15/22.................................... 664,656
3,115,000 Homestead, FL IDA RB, Community Rehabilitation
Providers
Program, Ser. A,
7.95%, 11/1/18.................................... 3,370,025
2,500,000 Indian Trace, FL Community Wtr.
Mgmt., Spl. Benefit GO, Subser. B,
8.25%, 5/1/11..................................... 2,892,100
Jacksonville, FL Hlth. Facs.
Auth. RB, Natl. Benevolent Assn., Cypress Vlg.
Proj.:
750,000 7.00%, 12/1/14.................................... 808,027
1,020,000 7.00%, 12/1/22.................................... 1,106,221
500,000 8.00%, 12/1/15.................................... 576,605
2,445,000 Lake Bernadette, FL CDD, Spl.
Assmt. RB, Ser. A,
8.00%, 5/1/17..................................... 2,615,490
Florida - continued
$ 3,200,000 Lake Cnty., FL Res. Rec. IDRB, NRG/Recovery Group
Inc.,
Ser. 1993A,
5.85%, 10/1/09.................................... 3,311,104
Lee Cnty., FL HFA Single Family Mtge. RB, Multi-
Cnty. Program:
2,010,000 Ser. A,
7.20%, 3/1/27..................................... 2,276,526
2,795,000 Ser. A6,
6.45%, 3/1/31..................................... 3,120,674
2,475,000 Step Bond, Subser. 2
(Eff. Yield 4.80%) (a),
6.85%, 3/1/29..................................... 2,802,764
2,495,000 Subser. 2,
7.45%, 9/1/27..................................... 2,825,188
5,370,000 Subser. 3,
7.50%, 9/1/27..................................... 6,124,646
Lee Cnty., FL IDA RB:
Class A:
1,005,000 5.80%, 10/1/06.................................... 1,028,024
4,840,000 6.25%, 10/1/17.................................... 5,018,064
4,025,000 6.375%, 10/1/25................................... 4,180,204
1,155,000 Class B,
5.875%, 10/1/27................................... 1,182,246
780,000 Encore Nursing Ctr.,
8.125%, 12/1/07................................... 854,779
2,710,000 Leon Cnty., FL Edl. Facs. RB, Ser. A, (GNMA),
8.25%, 5/1/14..................................... 2,863,467
Lexington Oaks, FL CDD RB:
1,045,000 Ser. A,
6.125%, 5/1/19.................................... 1,041,175
8,330,000 Ser. B,
5.50%, 5/1/05..................................... 8,260,528
1,125,000 Manatee Cnty., FL HFA MHRB, Conquistador, Ser. A,
6.25%, 10/1/22.................................... 1,216,384
2,375,000 Manatee Cnty., FL HFA SFHRB,
Subser. 1,
7.45%, 5/1/27..................................... 2,692,822
Martin Cnty., FL IDA RB,
Indiantown Cogeneration Proj.:
2,175,000 Ser. A,
7.875%, 12/15/25.................................. 2,482,915
650,000 Ser. B,
8.05%, 12/15/25................................... 744,438
1,245,000 Meadow Point II, FL CDD Capital
Impt. RB,
7.75%, 5/1/18..................................... 1,324,244
Miami Beach, FL Hlth. Facs.
Auth. Hosp. RB:
2,000,000 Mt. Sinai Med. Ctr. of FL Proj.,
5.375%, 11/15/28.................................. 1,954,840
4,500,000 So. Shore Hosp., Ser. A, (ACA),
5.45%, 8/1/18..................................... 4,529,475
Miami Beach, FL Redev. Agcy. Tax Increment RB, City
Ctr. Historic Convention, Ser. B:
1,000,000 6.25%, 12/1/16.................................... 1,069,230
500,000 6.35%, 12/1/22.................................... 534,845
</TABLE>
31
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida High Income Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Florida - continued
North Springs, FL Impt. Dist.
Spl. Assmt. RB:
$ 1,950,000 Heron Bay Proj.,
7.00%, 5/1/19..................................... $ 2,080,221
5,875,000 Parkland Isles Proj., Ser. B,
6.25%, 5/1/05..................................... 6,006,130
300,000 Ser. A,
7.00%, 5/1/19..................................... 313,371
1,270,000 Wtr. Mgmt., Ser. A,
8.20%, 5/1/24..................................... 1,497,520
Northern Palm Beach Cnty., FL
Wtr. Ctl. & Impt. Dist. RB:
500,000 Unit Dev. No. 5D,
5.50%, 8/1/15..................................... 496,775
3,800,000 Unit Dev. No. 9A, Ser. A,
7.20%, 8/1/16..................................... 4,143,330
500,000 Northern Palm Beach Cnty., FL
Wtr. Ctl. Dist., Spl. Assmt. RB,
7.00%, 8/1/15..................................... 541,905
1,465,000 Northwood, FL CDD RB,
7.60%, 5/1/17..................................... 1,550,966
2,605,000 Ocean Hwy. & Port Auth., FL
PCRB, Jefferson Smurfit Corp.,
6.50%, 11/1/06.................................... 2,700,291
16,925,000 Orange Cnty., FL HFA MHRB, Hsg.
Palms At Brentwood, Ser. K,
6.50%, 12/1/34.................................... 16,737,302
Orange Cnty., FL Hlth. Facs. Auth. RB:
1,040,000 Lakeside Apts., Inc.,
6.50%, 7/1/13..................................... 1,129,222
Orlando Lutheran Tower:
395,000 8.40%, 7/1/14..................................... 453,432
370,000 8.75%, 7/1/26..................................... 428,053
10,140,000 Orange Cnty., FL HFA RB,
Brentwood Park Apts., Ser. G,
6.40%, 7/1/32..................................... 10,223,554
Orange Cnty., FL HFA SFHRB,
Ser. B, (GNMA/FNMA):
885,000 5.80%, 9/1/17..................................... 918,435
2,235,000 5.875%, 3/1/28.................................... 2,325,853
1,095,000 6.85%, 10/1/27.................................... 1,178,187
1,730,000 8.10%, 11/1/21.................................... 1,788,024
Orlando, FL Spl. Assmt. RB,
Conroy Rd. Interchange Proj.,
Ser. A:
1,000,000 5.50%, 5/1/10..................................... 991,690
2,000,000 5.80%, 5/1/26..................................... 1,978,220
1,050,000 Osceola Cnty., FL HFA RB, Tierra Vista Apts. Proj.,
Ser. A,
5.75%, 12/1/22.................................... 1,084,031
565,000 Overoaks, FL CDD Capital Impt. RB,
8.25%, 5/1/17..................................... 621,907
Palm Beach Cnty., FL HFA RB:
3,860,000 Daughters of Charity, Ser. A, (GNMA)
7.60%, 3/1/23..................................... 4,060,334
1,100,000 Winsor Park Apts. Proj., Ser. A,
5.85%, 12/1/33.................................... 1,150,721
665,000 Palm Beach Cnty., FL HFA SFHRB,
Ser. A,
6.50%, 10/1/21.................................... 712,847
Palm Beach Cnty., FL Hlth. Facs. Auth. RB, Abbey
Delray So. Proj.:
2,750,000 5.50%, 10/1/11.................................... 2,816,660
2,500,000 5.50%, 10/1/15.................................... 2,529,100
1,500,000 Palm Beach Cnty., FL IDA RB, Geriatric Care, Inc.
Proj.,
6.55%, 12/1/16.................................... 1,643,955
8,200,000 Pasco Cnty., FL HFA MHRB, Park Richey Apts.,
Ser. A,
5.95%, 9/1/31..................................... 8,577,610
Pinellas Cnty., FL Edl. Facs. Auth. RB:
6,370,000 Barry University Proj.,
5.375%, 10/1/28................................... 6,327,640
3,300,000 Clearwater Christian College,
8.00%, 2/1/11..................................... 3,689,400
685,000 Eckerd College,
7.75%, 7/1/14..................................... 746,958
1,770,000 Pinellas Cnty., FL HFA RB,
Multi-Cnty. Program, Ser. C1,
5.45%, 9/1/29..................................... 1,789,753
Pinellas Cnty., FL Hlth. Facs. Auth. RB:
150,000 6.75%, 10/1/00.................................... 151,566
100,000 7.00%, 10/1/01.................................... 102,220
200,000 7.25%, 10/1/02.................................... 208,522
1,100,000 8.00%, 10/1/08.................................... 1,179,288
1,750,000 Plantation, FL Hlth. Facs. Auth.
RB, Covenant Vlg. of FL, Inc.,
5.125%, 12/1/22................................... 1,692,670
665,000 Polk Cnty., FL HFA SFHRB, Ser. A,
7.00%, 9/1/15..................................... 690,882
5,000,000 Polk Cnty., FL IDA RB, IMC
Fertilizer, Inc., Ser. A,
7.525%, 1/1/15.................................... 5,305,750
1,580,000 Quantum, FL CDD, Spl. Assmt. RB,
7.75%, 3/1/14..................................... 1,701,170
4,800,000 River Ridge, FL CDD RB,
5.75%, 5/1/08..................................... 4,806,000
5,540,000 Sarasota Cnty., FL Hlth. Fac. Auth. RB,
Hlth. Care Facs. Family Ext. Care,
6.25%, 11/15/28................................... 5,473,742
Sarasota Cnty., FL Hlth. Fac. Auth. RB:
1,000,000 Jewish Hsg. Council,
7.375%, 7/1/16.................................... 1,060,790
1,500,000 Manatee Jewish Hsg. Council,
6.70%, 7/1/25..................................... 1,567,590
1,000,000 Sunnyside Properties,
6.00%, 5/15/10.................................... 1,029,850
1,830,000 Seminole, FL Wtr. Ctl. Dist., Spl. Assmt. RB, Unit
of Dev. No. 2,
7.25%, 8/1/22..................................... 1,950,615
St. John's Cnty., FL IDA RB:
Bayview Proj., Ser. A:
1,125,000 7.00%, 10/1/12.................................... 1,206,945
2,500,000 7.10%, 10/1/26.................................... 2,695,950
2,510,000 Vicars Landing Proj., Ser. A,
6.75%, 2/15/12.................................... 2,670,665
9,630,000 Stoneybrook, FL CDD Golf Course RB,
7.00%, 10/1/22.................................... 9,530,426
32
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida High Income Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Volusia Cnty., FL Edl. Facs. Auth. RB,
Embry-Riddle Aeronautical Univ., Ser. A:
$ 1,025,000 6.125%, 10/15/16................................... $ 1,100,091
5,000,000 6.125%, 10/15/26................................... 5,327,200
2,000,000 Volusia Cnty., FL IDA, First Mtge. RB,
7.625%, 11/1/26.................................... 2,474,620
Westchase East, FL CDD Capital Impt. RB:
1,350,000 7.30%, 5/1/18...................................... 1,443,623
1,730,000 7.50%, 5/1/17...................................... 1,838,298
1,000,000 Winter Garden, FL IDA RB, Beverly
Enterprises,
8.75%, 7/1/12...................................... 1,108,860
Winter Haven, FL Hsg. Auth. MHRB,
Abbey Lane Apts., Ser. C:
1,065,000 7.00%, 7/1/12...................................... 1,136,291
2,000,000 7.00%, 7/1/24...................................... 2,130,700
------------
399,524,528
------------
Puerto Rico - 0.6%
990,000 Cmnwlth. of Puerto Rico Indl.,
Tourist, Edl., Med. & Env. Ctl. Facs. RB,
Mennonite General Hosp. Proj., Ser. A,
6.50%, 7/1/12...................................... 1,066,745
1,475,000 Cmnwlth. of Puerto Rico Port Auth. RB,
American Airlines Proj.,
6.25%, 6/1/26...................................... 1,591,599
------------
2,658,344
------------
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
U.S. Virgin Islands - 7.4%
Virgin Islands Pub. Fin. Auth. RB,
Sr. Lien, Ser. A:
$ 2,950,000 5.30%, 7/1/21...................................... $ 2,959,764
5,000,000 5.50%, 10/1/18..................................... 5,094,200
15,000,000 5.50%, 10/1/22..................................... 15,217,650
10,500,000 5.625%, 10/1/25.................................... 10,755,675
------------
34,027,289
------------
Total Municipal Obligations
(cost $433,195,694)................................ 445,227,984
------------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 1.1% (cost $4,929,000)
4,929,000 Federated Municipal Obligations Fund.................. 4,929,000
------------
Total Investments -
(cost $438,124,694)......................... 98.3% 450,156,984
Other Assets and Liabilities - net........... 1.7 7,840,417
----- ------------
Net Assets - ................................ 100.0% $457,997,401
===== ============
(a) Effective Yield (calculated at the date of purchase) is the yield at
which the bond accretes on an annual basis until maturity date.
Summary of Abbreviations:
ACA Insured by American Capital Acess Corporation
BAN Bond Anticipation Note
CDA Community Development Authority
CDD Community Development District
FNMA Insured by Federal National Mortgage Association
GNMA Insured by Government National Mortgage Association
GO General Obligation
HFA Housing Finance Authority
IDA Industrial Development Authority
IDRB Industrial Development Revenue Bond
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
SFHRB Single Family Housing Revenue Bond
See Combined Notes to Financial Statements.
33
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - 96.6%
Florida - 92.0%
$ 4,000,000 Alachua Cnty., FL Hlth. Facs. Auth. RB, Shands
Teaching Hosp., Ser. A, (MBIA),
6.25%, 12/1/16.................................... $ 4,640,480
Baker Cnty., FL Hosp. Auth. Hlth. RB:
285,000 4.10%, 12/1/01.................................... 285,650
320,000 4.40%, 12/1/04.................................... 320,627
200,000 4.60%, 12/1/06.................................... 200,636
380,000 4.70%, 12/1/08.................................... 378,795
1,810,000 5.10%, 12/1/13.................................... 1,798,724
3,750,000 Brevard Cnty., FL HFA, MHRB, Windover Oaks, Ser. A,
(FNMA), 6.90%, 2/1/27............................. 4,245,938
725,000 Brevard Cnty., FL Hlth. Facs. Auth. RB, Courtenay
Springs Vlg., 7.375%, 11/15/04.................... 799,030
Broward Cnty., FL GO:
4,000,000 9.875%, 7/1/09.................................... 5,658,840
3,000,000 Ser. C,
6.00%, 1/1/04..................................... 3,231,090
1,335,000 Broward Cnty., FL HFA RB, Ser. B, (GNMA),
7.125%, 3/1/17.................................... 1,400,268
Broward Cnty., FL Port Facs. RB, Ser. C:
9,205,000 5.375%, 9/1/10.................................... 9,889,760
3,700,000 5.375%, 9/1/11.................................... 3,952,821
2,220,000 5.375%, 9/1/12.................................... 2,356,441
3,000,000 Broward Cnty., FL Sch. Dist., GO,
5.40%, 2/15/05.................................... 3,213,150
5,545,000 Cape Canaveral, FL Hosp. Dist. RB,
5.25%, 1/1/18..................................... 5,421,346
Clearwater, FL Hsg. Auth. RB, Hamptons at
Clearwater:
500,000 5.35%, 5/1/24..................................... 503,425
1,350,000 5.40%, 5/1/13..................................... 1,393,187
500,000 Collier Cnty., FL Hlth. Facs. Auth. RB, The
Moorings Inc. Proj.,
7.00%, 12/1/19.................................... 555,150
Dade Cnty., FL Edl. Facs. Auth. RB,
St. Thomas Univ., (LOC: Sun Bank Miami):
2,000,000 6.00%, 1/1/10..................................... 2,190,820
2,000,000 6.00%, 1/1/14..................................... 2,158,720
1,000,000 6.125%, 1/1/19.................................... 1,083,830
40,000 Dade Cnty., FL Sch. Dist. GO,
7.375%, 7/1/08.................................... 41,404
Dade Cnty., FL SFHRB:
3,622,829 Ser. B1,
6.10%, 3/1/99..................................... 3,864,326
185,000 Ser. E,
7.00%, 3/1/24..................................... 193,610
5,000,000 Dade Cnty., FL Solid Wst. Sys., Spl. Obl., (AMBAC),
6.00%, 10/1/06.................................... 5,593,800
840,000 Duval Cnty., FL HFA, SFHRB, (GNMA),
7.35%, 7/1/24..................................... 888,434
3,000,000 Duval Cnty., FL Sch. Dist. GO, (AMBAC),
5.90%, 8/1/02..................................... 3,179,760
75,000 Duval Cnty., FL SFHRB
7.30%, 7/1/11...................................... 79,259
7,125,000 Escambia Cnty., FL HFA, Single Family Multi-Cnty.
Program, 5.15%, 10/1/19........................... 7,106,689
Escambia Cnty., FL Hlth. Facs. Auth. RB: Azalea
Trace Inc.:
2,560,000 6.00%, 1/1/15..................................... 2,636,493
1,250,000 6.10%, 1/1/19..................................... 1,296,712
Baptist Hosp. & Baptist Manor:
1,075,000 5.00%, 10/1/05.................................... 1,119,667
1,210,000 5.00%, 10/1/07.................................... 1,254,431
5,000,000 5.125%, 10/1/19................................... 4,878,600
Baptist Hosp. Inc., Ser. B:
7,605,000 5.125%, 10/1/14................................... 7,591,691
2,750,000 6.00%, 10/1/14.................................... 2,860,495
Escambia Cnty., FL PCRB, Champion Int'l. Corp.
Proj.:
5,455,000 5.875%, 6/1/22.................................... 5,551,772
2,650,000 6.40%, 9/1/30..................................... 2,823,813
8,040,000 Everglades, FL Port Auth. RB,
7.125%, 11/1/16................................... 10,062,221
2,500,000 Flagler Cnty., FL Sch. Dist. GO,
5.85%, 9/1/02..................................... 2,684,100
Florida Hsg. Fin. Agcy. RB:
Landings at Sea Forest, (AMBAC):
560,000 5.85%, 12/1/18.................................... 589,730
805,000 6.05%, 12/1/36.................................... 849,847
2,000,000 Multifamily Hsg., Ser. C,
6.20%, 8/1/16..................................... 2,155,240
5,200,000 Multifamily Park Colony, Ser. D,
5.10%, 7/1/05..................................... 5,286,008
1,895,000 Ser. A,
6.875%, 10/1/12................................... 1,949,254
Florida Hsg. Fin. Corp. RB: Homeownership Mtge.,
2,210,000 Ser. 2,
4.75%, 7/1/19..................................... 2,225,580
2,990,000 Hsg. Kendall Court Apt, Ser. D,
5.35%, 8/1/24..................................... 3,025,581
Florida Turnpike Auth., Turnpike RB, Dept. of
Trans.:
2,000,000 Ser. A, (AMBAC),
6.90%, 7/1/02..................................... 2,180,240
Ser. B, (MBIA):
5,950,000 5.25%, 7/1/11..................................... 6,356,206
4,370,000 5.25%, 7/1/12..................................... 4,638,493
Florida Bd. of Ed. Capital Outlay, Pub. Ed.:
Ser. A:
8,000,000 5.00%, 6/1/14..................................... 8,179,360
5,850,000 5.75%, 6/1/10..................................... 6,583,883
Ser. B:
5,280,000 5.25%, 6/1/11..................................... 5,660,318
6,795,000 5.25%, 6/1/12..................................... 7,203,991
1,250,000 Ser. C,
7.00%, 6/1/04..................................... 1,264,300
34
<PAGE>
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E V E R G R E E N
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Florida Division Bond Fin. Dept., Dept. of Env.
Preservation 2000, Ser. A:
$ 8,555,000 (MBIA),
5.25%, 7/1/07..................................... $ 9,219,809
2,000,000 (AMBAC)
5.75%, 7/1/13..................................... 2,181,720
5,600,000 (MBIA)
6.00%, 7/1/06..................................... 6,287,624
Dept. of Env. Protection 2000, Ser. B
(AMBAC):
6,500,000 6.00%, 7/1/09..................................... 7,408,830
19,600,000 6.00%, 7/1/10..................................... 22,508,836
Florida Hsg. Fin. Agcy. RB, (GNMA):
1,790,000 6.35%, 5/1/26..................................... 1,933,164
115,000 Homeownership Mtge.,
7.50%, 9/1/14..................................... 120,158
Gainesville, FL Util. Sys. RB, Ser. B:
4,800,000 6.50%, 10/1/13.................................... 5,790,144
3,000,000 7.50%, 10/1/08.................................... 3,796,950
3,000,000 7.50%, 10/1/09.................................... 3,836,640
3,000,000 Greater Orlando, FL, Aviation Auth., Arpt. Facs.
RB, (FGIC),
5.75%, 10/1/10.................................... 3,324,360
5,170,000 Halifax, FL Hlth. Care Facs. RB, Halifax Hosp. Med.
Ctr.,
5.20%, 4/1/18..................................... 5,059,517
1,240,000 Halifax, FL Hosp. Med. Ctr., Hlth. Care
Facs. RB, Halifax Mgmt. Sys., Ser. A,
4.50%, 4/1/05..................................... 1,262,456
Hialeah, FL Hsg. Auth. RB:
1,960,000 Affordable Hsg. Program,
4.60%, 12/20/08................................... 1,987,734
12,505,000 Muni. Hsg.,
9.50%, 11/1/21.................................... 17,137,977
Highlands Cnty., FL Hlth. Facs. Auth. RB, Adventist
Hlth. Sys.:
3,735,000 5.25%, 11/15/11................................... 3,786,954
3,935,000 5.25%, 11/15/12................................... 3,962,073
3,140,000 5.25%, 11/15/13................................... 3,154,224
3,800,000 5.25%, 11/15/28................................... 3,682,998
8,945,000 Hillsborough Cnty., FL, Sch. Board Master Lease
Program,
5.50%, 7/1/10..................................... 9,824,383
3,000,000 Jacksonville, FL Hlth. Facs. Hosp. RB, St. Luke's
Hosp. Assn. Proj.,
7.125%, 11/15/20.................................. 3,268,500
1,245,000 Jacksonville, FL Hlth. Indl. Dev., Natl.
Benevolent-Cypress Vlg., Ser. A,
6.25%, 12/1/26.................................... 1,317,584
Lakeland, FL Elec. & Wtr. RB:
4,670,000 6.25%, 1/1/04..................................... 5,174,080
4,000,000 6.50%, 10/1/07.................................... 4,664,240
5,000,000 Refunding and Impt., (FGIC),
6.00%, 10/1/10.................................... 5,754,750
Lee Cnty., FL Hsg. Auth., SFHRB,
Ser. A7:
1,500,000 5.05%, 9/1/29..................................... 1,455,000
2,800,000 6.40%, 3/1/29..................................... 3,127,012
2,065,000 Lee Cnty., FL Passenger Fac., Charge RB, (AMBAC),
5.00%, 10/1/11.................................... 2,117,121
4,890,000 Leesburg, FL Hosp. RB, Leesburg Reg'l. Med. Ctr.
Proj., Ser. B,
5.70%, 7/1/18..................................... 5,076,553
Leon Cnty., FL Edl. Facs. Auth., COP, Southgate:
1,145,000 8.50%, 9/1/17..................................... 1,630,514
1,045,000 9.00%, 9/1/04..................................... 1,310,064
1,140,000 9.00%, 9/1/05..................................... 1,467,043
1,245,000 9.00%, 9/1/06..................................... 1,637,026
1,355,000 9.00%, 9/1/07..................................... 1,819,982
1,475,000 9.00%, 9/1/08..................................... 2,022,771
1,610,000 9.00%, 9/1/09..................................... 2,237,980
1,755,000 9.00%, 9/1/10..................................... 2,474,217
1,915,000 9.00%, 9/1/11..................................... 2,728,109
2,085,000 9.00%, 9/1/12..................................... 2,995,374
2,275,000 9.00%, 9/1/13..................................... 3,289,741
2,480,000 9.00%, 9/1/14..................................... 3,603,415
685,000 Leon Cnty., FL HFA, SFHRB,
Multi-Cnty. Program, Ser. B, (GNMA),
6.25%, 7/1/19..................................... 728,792
Manatee Cnty., FL HFA Mtge. RB, Single Family,
SubSer. 1:
3,015,000 6.25%, 11/1/28.................................... 3,237,959
1,675,000 7.20%, 5/1/28..................................... 1,899,450
Miami Beach, FL Hlth. Facs. Auth. Hosp. RB:
Mount Sinai Med. Ctr.:
2,000,000 5.375%, 11/15/18.................................. 1,965,240
14,300,000 5.375%, 11/15/28.................................. 13,977,106
South Shore Hosp., Ser. A:
1,660,000 4.30%, 8/1/03..................................... 1,668,599
2,305,000 4.80%, 8/1/08..................................... 2,324,062
2,185,000 5.25%, 8/1/13..................................... 2,184,913
Miami Beach, FL Redev. Agcy., Tax Increment RB,
City Ctr. Historic Convention Vlg.:
2,000,000 5.625%, 12/1/09................................... 2,101,760
3,000,000 5.80%, 12/1/13.................................... 3,109,620
2,000,000 5.875%, 12/1/22................................... 2,060,680
Miami Dade Cnty., FL Aviation RB, Ser. C, (MBIA):
4,685,000 5.25%, 10/1/10.................................... 4,975,470
4,930,000 5.25%, 10/1/11.................................... 5,204,108
6,200,000 5.25%, 10/1/16.................................... 6,329,394
Miami Dade Cnty., FL Hsg. Fin., Mtge. RB Villa
Esperanza Apts. Proj.:
805,000 4.90%, 10/1/11.................................... 806,377
1,100,000 5.35%, 10/1/28.................................... 1,101,826
1,000,000 5.45%, 10/1/38.................................... 1,001,650
2,875,000 Miami Dade Cnty., FL Pub. Svc. RB, Umsa Pub.
Impts.,
5.00%, 10/1/12.................................... 2,997,878
35
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 5,000,000 Miami, FL Hlth. Facs. Auth. RB, (AMBAC),
5.25%, 8/15/15.................................... $ 5,117,400
1,000,000 North Miami, FL Hlth. Facs. Auth. RB, Catholic
Hlth. Svcs. Obl. Group,
6.00%, 8/15/16.................................... 1,073,900
1,335,000 North Springs, FL Wtr. & Swr. RB, Ser. B, (MBIA),
6.50%, 10/1/16.................................... 1,512,128
1,000,000 North Tampa, FL Hsg. Dev. Corp. RB, Country Oaks
Apt., Ser. A, (FNMA),
6.90%, 1/1/24..................................... 1,051,570
Orange Cnty., FL Hlth. Facs. Auth. RB:
Hosp. Orlando Reg'l. Hlth.:
3,500,000 6.25%, 10/1/11.................................... 4,094,965
4,000,000 6.25%, 10/1/12.................................... 4,692,560
3,000,000 Lakeside Alternatives Inc.,
6.50%, 7/1/13..................................... 3,257,370
Ser. 3:
5,225,000 5.30%, 10/1/06.................................... 5,648,277
5,785,000 5.50%, 10/1/08.................................... 6,388,202
2,000,000 5.70%, 10/1/11.................................... 2,243,120
Orlando & Orange Cnty., FL Expressway Auth. RB:
10,000,000 5.375%, 7/1/10.................................... 10,562,600
4,550,000 6.50%, 7/1/11..................................... 5,442,801
40,000 8.25%, 7/1/15..................................... 55,630
Orlando, FL Util. Commission, Wtr. & Elec. RB:
4,000,000 6.00%, 10/1/10.................................... 4,627,560
4,000,000 Linked SAVRs/RIBs (b)
5.60%, 10/6/17.................................... 4,291,800
Palm Beach Cnty., FL Criminal Justice Facs. RB,
(FGIC):
15,195,000 5.75%, 6/1/12..................................... 17,075,533
3,000,000 7.20%, 6/1/15..................................... 3,821,160
1,880,000 Palm Beach Cnty., FL GO, Ser. B,
6.50%, 7/1/10..................................... 2,255,680
Palm Beach Cnty., FL Hlth. Facs. Auth. RB:
975,000 Abbey Delray South Proj.,
5.20%, 10/1/06. .................................. 1,004,650
3,600,000 Acts Retirement Life Community,
5.125%, 11/15/29.................................. 3,457,260
Good Samaritan Hlth. Sys.:
3,695,000 6.20%, 10/1/11.................................... 4,093,062
6,000,000 6.30%, 10/1/22.................................... 6,671,340
Hosp. Impt., Boca Raton Community Hosp.:
930,000 4.00%, 12/1/03.................................... 935,571
970,000 4.00%, 12/1/04.................................... 971,930
1,320,000 5.00%, 12/1/11.................................... 1,360,154
1,390,000 5.00%, 12/1/12.................................... 1,417,536
Waterford Proj.:
795,000 4.80%, 10/1/02.................................... 811,965
635,000 5.00%, 10/1/03.................................... 652,914
875,000 5.00%, 10/1/04.................................... 901,241
920,000 5.10%, 10/1/05.................................... 948,060
965,000 5.20%, 10/1/06.................................... 994,346
990,000 5.30%, 10/1/07.................................... 1,020,017
6,750,000 5.50%, 10/1/15.................................... 6,828,570
2,000,000 Palm Beach Cnty., FL Indl. Dev. Resource, Geriatric
Care Inc.,
6.55%, 12/1/16.................................... 2,191,940
3,695,000 Pasco Cnty., FL HFA RB, Multifamily Hsg., Oak Trail
Apts. Proj., Ser. A,
5.35%, 6/1/27..................................... 3,879,085
5,000,000 Pasco Cnty., FL Hlth. Facs. Auth. RB, Ser. 2,
5.60%, 10/1/10.................................... 5,414,400
2,500,000 Pembroke Pines, FL, Cons. Util. Sys. RB, (FGIC),
6.25%, 9/1/04..................................... 2,712,400
Pinellas Cnty., FL Edl. Facs. Auth. RB, Barry Univ.
Proj.:
175,000 4.95%, 10/1/08.................................... 177,800
7,685,000 5.375%, 10/1/23................................... 7,694,453
2,890,000 5.50%, 10/1/13.................................... 3,007,825
3,240,000 Pinellas Cnty., FL HFA, MHRB, Emerald Bay Apts.,
Ser. A,
5.00%, 4/1/28..................................... 3,288,406
Pinellas Cnty., FL HFA, SFHRB,
Ser. C1:
1,800,000 5.375%, 9/1/19.................................... 1,820,160
1,790,000 5.40%, 9/1/22..................................... 1,810,030
5,455,000 6.30%, 3/1/29..................................... 5,885,781
1,000,000 Plantation, FL Hlth. Facs. Auth. RB, Covenant Vlg.
Inc.,
5.00%, 12/1/14.................................... 980,690
8,350,000 Polk Cnty., FL IDA RB, Tampa Elec. Co. Proj.,
5.85%, 12/1/30.................................... 8,925,565
5,500,000 Reedy Creek, FL Impt. Dist. RB, Ser. A, (MBIA)
6.15%, 6/1/03..................................... 5,854,538
2,000,000 Saint Petersburg, FL Pub. Util. RB,
6.40%, 10/1/01.................................... 2,077,520
1,800,000 Sarasota Cnty., FL Hlth. Facs. Auth. RB, Sunnyside
Property,
6.00%, 5/15/10.................................... 1,853,730
Sarasota Cnty., FL Util. Sys. RB, Capital
Appreciation, Ser. A, (AMBAC):
2,345,000 (Eff. Yield 9.12%) (a),
0.00%, 6/1/19..................................... 589,299
2,725,000 (Eff. Yield 9.16%) (a),
0.00%, 6/1/16..................................... 852,843
3,000,000 Seminole Cnty., FL Sch. Dist., (MBIA),
6.00%, 8/1/03..................................... 3,270,150
St. John's Cnty., FL IDA RB:
2,000,000 5.50%, 3/1/17..................................... 2,089,880
1,250,000 Professional Golf Hall of Fame, Ser. A,
5.25%, 3/1/11..................................... 1,313,175
36
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 200,000 Tallahassee, FL Hlth. Facs. RB, Tallahassee Mem.
Reg'l. Med. Ctr., (MBIA),
6.625%, 12/1/13................................... $ 227,290
Tampa, FL Hlth. Sys. Catholic Hlth. RB, Ser. A1:
5,000,000 5.50%, 11/15/13................................... 5,443,400
4,000,000 5.50%, 11/15/14................................... 4,338,560
Volusia Cnty., FL Edl. Facs. Auth. RB,
Embry-Riddle Aero, Ser. A:
3,500,000 6.125%, 10/15/16.................................. 3,756,410
2,600,000 6.125%, 10/15/26.................................. 2,770,144
------------
608,152,893
------------
Illinois - 1.1%
7,500,000 Chicago, IL O'Hare Int'l. Arpt. Spl. Fac. RB,
United Air Lines Inc. Proj., Ser. A,
5.35%, 9/1/16..................................... 7,466,175
------------
Puerto Rico - 0.2%
870,000 Cmnwlth. of Puerto Rico Indl. Tourist, Edl., Med. &
Env. Ctl. Facs RB, Hosp. Auxilio Mutuo Obl., Ser.
A,
6.25%, 7/1/24..................................... 973,278
------------
U. S. Virgin Islands - 3.3%
Virgin Islands, Pub. Fin. Auth. RB, Sr. Lien, Ser.
A:
5,335,000 5.20%, 10/1/10.................................... 5,460,799
6,250,000 5.50%, 10/1/18.................................... 6,367,750
6,550,000 Virgin Islands, Wtr. & Pwr. Auth. Elec. Sys. RB,
5.125%, 7/1/12.................................... 6,734,186
2,945,000 Virgin Islands, Wtr. & Pwr. Auth. RB,
5.375%, 7/1/10.................................... 3,123,644
------------
21,686,379
------------
Total Municipal Obligations
(cost $611,675,847)............................... 638,278,725
------------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 2.6% (cost $17,478,000)
17,478,000 Federated Municipal Obligations Fund................ 17,478,000
------------
Total Investments -
(cost $629,153,847).......................... 99.2% 655,756,725
Other Assets and
Liabilities - net............................ 0.8 5,142,863
----- ------------
Net Assets - ................................ 100.0% $660,899,588
===== ============
(a) Effective Yield (calculated at the date of purchase) is the yield at
which the bond accretes on an annual basis until maturity date.
(b) At the discretion of the portfolio manager, these securities may be
separated into securities with interest or principal payments that
are linked to another rate or index and therefore would be considered
derivative securities.
Summary of Abbreviations:
AMBAC Insured by American Municipal Bond Assurance Corporation
COP Certificate of Participation
FGIC Insured by Federal Guaranty Insurance Company
FNMA Insured by Federal National Mortgage Association
GNMA Insured by Government National Mortgage Association
GO General Obligation
HFA Housing Finance Authority
IDA Industrial Development Authority
LOC Letter of Credit
MBIA Insured by Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
RIBs Residual Interest Bond
SAVRs Select Auction Variable Rate Security
SFHRB Single Family Housing Revenue Bond
See Combined Notes to Financial Statements.
37
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - 94.7%
Georgia - 83.7%
$1,000,000 Albany Dougherty, GA Dev. Auth.,
Solid Wst. Disp. RB, Procter & Gamble Paper Prod.,
5.30%, 5/15/26..................................... $ 1,010,880
2,000,000 Americus Sumpter Cnty., GA Hosp. RB, Regl. Sumpter
Hosp. Proj., Anticipation Certificates, (AMBAC),
5.25%, 12/1/14..................................... 2,081,640
Appling Cnty., GA Dev. Auth. PCRB, Oglethorpe Pwr.
Corp., Hatch Proj., (MBIA):
1,055,000 7.125%, 1/1/15..................................... 1,195,632
500,000 7.15%, 1/1/21...................................... 564,845
Atlanta, GA, Arpt. Facs. RB:
1,000,000 (AMBAC),
6.50%, 1/1/10...................................... 1,178,580
2,000,000 Ser. A,
6.50%, 1/1/06...................................... 2,282,620
Baldwin Cnty., GA Hosp. Auth. RB, Oconee Regl. Med.
Ctr.:
1,465,000 5.25%, 12/1/12..................................... 1,469,190
2,000,000 5.25%, 12/1/22..................................... 1,923,700
4,000,000 Brunswick & Glynn Cnty., GA Dev. Auth. RB, Georgia
Pacific Corp. Proj.,
5.55%, 3/1/26...................................... 3,977,800
300,000 Butts Cnty., GA COP, (MBIA),
6.75%, 12/1/14..................................... 342,006
300,000 Camden Cnty., GA Joint Dev. Auth. PCRB, Union
Carbide Corp. Proj.,
5.00%, 1/1/12...................................... 298,884
500,000 Carroll Cnty., GA Wtr. Auth., Wtr. & Swr. RB,
(AMBAC),
5.25%, 7/1/16...................................... 518,855
1,820,000 Cartersville, GA Dev. Auth. RB, Wtr. & Wst. Facs.,
7.40%, 11/1/10..................................... 2,245,061
120,000 Cartersville, GA GO,
6.70%, 1/1/12...................................... 143,843
500,000 Clayton Cnty., GA Hsg. Auth. Mtge. RB, (FHA/VA),
7.125%, 12/1/25.................................... 548,750
1,600,000 Coffee Cnty., GA Hosp. Auth. RB, Anticipation
Certificates, Coffee Regl. Med. Ctr. Ser. A,
6.75%, 12/1/16..................................... 1,691,136
College Park, GA Business & IDA., Civic Ctr. Proj.
RB, Ser. A, (FSA):
1,435,000 5.70%, 9/1/09...................................... 1,585,001
1,470,000 5.75%, 9/1/10...................................... 1,621,101
1,000,000 Conyers, GA Wtr. & Swr. RB, Ser. A, (AMBAC) (ETM),
6.60%, 7/1/15...................................... 1,145,910
DeKalb Cnty., GA Hsg., Auth. RB:
1,455,000 Multifamily, North Hill Apartments Proj. (FNMA),
6.625%, 1/1/05..................................... 1,585,775
500,000 The Lakes at Indian Creek Proj., (FSA),
7.15%, 1/1/25...................................... 546,955
500,000 DeKalb Cnty., GA Sch. Dist., GO, Ser. A,
6.25%, 7/1/11...................................... 586,840
1,000,000 Effingham Cnty., GA Dev. Auth., Solid Wst. Disp. RB,
Fort James Proj.,
5.625%, 7/1/18..................................... 1,001,660
Effingham Cnty., GA Sch. Dist., GO (MBIA):
1,260,000 6.25%, 2/1/07...................................... 1,436,299
1,160,000 6.25%, 2/1/08...................................... 1,335,531
500,000 6.25%, 2/1/09...................................... 579,430
Fayette Cnty., GA, Sch. Dist., GO:
600,000 6.125%, 3/1/15..................................... 664,638
2,200,000 6.25%, 3/1/06...................................... 2,490,070
1,000,000 Forsyth Cnty., GA Sch. Dist., GO,
6.75%, 7/1/16...................................... 1,216,550
Fulton Cnty., GA Wtr., & Swr. RB:
1,420,000 6.25%, 1/1/06...................................... 1,603,279
1,500,000 6.25%, 1/1/09...................................... 1,736,625
390,000 6.375%, 1/1/14..................................... 460,828
3,000,000 Fulton Cnty., GA Dev. Auth., Special Facs. RB, Delta
Airlines Inc., Proj.,
5.45%, 5/1/23...................................... 2,989,770
Gainesville, GA, Wtr. & Swr. RB, (FGIC):
1,000,000 5.25%, 11/15/10.................................... 1,081,880
1,000,000 Ser. B, Prerefunded,
7.20%, 11/15/10.................................... 1,084,830
500,000 George L. Smith II, GA, World Congress Ctr. Auth.
RB, Domed Stadium Proj., (MBIA),
7.875%, 7/1/20..................................... 537,115
395,000 Georgia Hsg. & Fin. Auth. RB, Ser. A, (FHA/VA),
6.55%, 12/1/27..................................... 419,984
Georgia Muni. Elec. Auth., Pwr. RB:
1,000,000 6.25%, 1/1/17...................................... 1,158,000
1,000,000 Project One Subordinated, Ser. A, (MBIA),
6.00%, 1/1/07...................................... 1,116,380
500,000 Ser. B
6.20%, 1/1/10...................................... 569,060
400,000 Ser. EE, (AMBAC),
7.25%, 1/1/24...................................... 526,504
1,000,000 Georgia State, GO, Ser. B,
7.00%, 11/1/08..................................... 1,080,300
500,000 Glynn-Brunswick, GA, Memorial Hosp. Auth., RAN,
(MBIA),
6.00%, 8/1/16...................................... 544,140
500,000 Griffin Spaulding Cnty., GA Sch. Sys., GO, (FSA),
7.50%, 2/1/02...................................... 552,320
2,500,000 Gwinnett Cnty., GA Wtr. & Swr. RB., COP,
8.60%, 8/1/03...................................... 2,986,550
Hall Cnty., GA, Sch. Dist., GO, Prerefunded,
(AMBAC):
1,210,000 6.45%, 12/1/09..................................... 1,391,936
500,000 6.70%, 12/1/14..................................... 581,585
1,000,000 Macon, GA Wtr. Auth., Wtr. & Swr. RB,
5.25%, 10/1/16..................................... 1,032,420
38
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Georgia - continued
Metro Atlanta, GA Rapid Transit Auth., RB, Georgia
Sales Tax RB:
$ 830,000 Ser. D, (FGIC) (ETM),
7.00%, 7/1/11...................................... $ 1,030,229
1,000,000 Ser. P, (AMBAC),
6.25%, 7/1/11...................................... 1,170,550
1,000,000 Middle, GA Coliseum Auth. RB, Georgia Coliseum,
Ser. A,
5.375%, 7/1/14..................................... 1,053,720
Monroe Cnty., GA Dev. Auth., PCRB, Oglethorpe Power
Corp. Ser. A:
1,000,000 6.45%, 1/1/05...................................... 1,122,120
1,000,000 6.70%, 1/1/09...................................... 1,180,370
525,000 Peach Cnty., GA Sch. Dist. GO, (MBIA),
6.50%, 2/1/06...................................... 601,010
800,000 Private Colleges & Univ. Auth., Georgia RB, Agnes
Scott College, (MBIA),
5.25%, 6/1/13...................................... 844,432
1,500,000 Richmond Cnty., GA Dev. Auth. RB, Southern Care,
Ser. C, (Eff. Yield
5.72%)(a), (ETM),
0.00%, 12/1/21..................................... 416,385
775,000 Savannah, GA EDA, Southern Care, Ser. C, (Eff. Yield
5.72%)(a), (ETM),
0.00%, 12/1/21..................................... 215,132
Savannah, GA EDA RB, Mighty Eighth Air Force:
1,000,000 5.875%, 1/1/12..................................... 1,080,340
860,000 5.875%, 1/1/15..................................... 910,774
Savannah, GA Hosp. Auth. RB, St. Joseph's Hosp.
Proj.:
1,640,000 5.25%, 7/1/13...................................... 1,718,080
1,495,000 5.25%, 7/1/13...................................... 1,566,177
1,500,000 6.125%, 7/1/12..................................... 1,660,095
500,000 6.20%, 7/1/23...................................... 554,850
1,300,000 Washington, GA Cnty. Sch. Dist., GO, (AMBAC),
6.875%, 1/1/14..................................... 1,518,894
------------
75,365,846
------------
Maryland - 0.8%
750,000 Frederick Cnty., MD Spl. Obl., Urban CDA,
6.625%, 7/1/25...................................... 764,535
------------
South Carolina - 1.1%
1,000,000 Georgetown Cnty., SC PCRB,
5.125%, 2/1/12...................................... 1,025,180
------------
Virginia - 3.2%
1,000,000 Charles City Cnty., VA IDA RB,
4.875%, 2/1/09...................................... 993,750
1,750,000 James City Cnty., NC Residential Care Facs. RB, First
Mtge., Williamsburg Landing,
6.625%, 3/1/19...................................... 1,842,628
------------
2,836,378
------------
Puerto Rico - 1.3%
1,000,000 Cmnwlth. of Puerto Rico, GO, (MBIA),
6.25%, 7/1/08....................................... 1,162,110
------------
U.S. Virgin Islands - 4.6%
2,000,000 Virgin Islands, Pub. Fin. Auth. RB, Sr. Lien, Ser. A,
5.50%, 10/1/22...................................... 2,029,020
2,000,000 Virgin Islands, Wtr. & Pwr. Auth., Elec. Sys. RB,
5.25%, 7/1/09....................................... 2,110,160
------------
4,139,180
------------
Total Municipal Obligations
(cost $80,175,285).................................. 85,293,229
------------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 2.7% (cost $2,442,000)
2,442,000 Federated Municipal Obligations Fund........... 2,442,000
-----------
Total Investments -
(cost $82,617,285)............................ 97.4% 87,735,229
Other Assets and
Liabilities - net............................. 2.6 2,300,225
----- -----------
Net Assets - .................................. 100.0% $90,035,454
===== ===========
39
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
(a) Effective yield (calculated at the time of purchase) is the yield at which
the bond accretes on an annual basis until maturity date.
Summary of Abbreviations:
AMBAC Insured by American Municipal Bond Assurance Corporation
CDA Community Development Authority
COP Certificate of Participation
EDA Economic Development Authority
ETM Escrowed to Maturity
FGIC Insured by Federal Guaranty Insurance Company
FHA Insured by Federal Housing Authority
FNMA Insured by Federal National Mortgage Association
FSA Insured by Financial Security Assurance Company
GO General Obligation
IDA Industrial Development Authority
MBIA Insured by Municipal Bond Investors Assurance Corporation
PCRB Pollution Control Revenue Bond
RAN Revenue Anticipation Note
RB Revenue Bond
VA Guaranteed by Veteran's Authority
See Combined Notes to Financial Statements.
40
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - 96.5%
District of Columbia - 4.7%
District of Columbia Metro. Area Transit Auth. RB:
$ 500,000 6.00%, 7/1/07...................................... $ 562,785
1,000,000 6.00%, 7/1/08...................................... 1,135,420
------------
1,698,205
------------
Maryland - 83.3%
1,230,000 Annapolis, MD EDRB, St. John's College Fac.,
5.50%, 10/1/18..................................... 1,248,253
1,000,000 Baltimore Cnty., MD Auto Parking RB,
5.25%, 7/1/08...................................... 1,052,220
1,580,000 Calvert Cnty., MD PCRB, Baltimore Gas & Elec. Co.
Proj.,
5.55%, 7/15/14..................................... 1,670,992
1,400,000 Carroll Cnty., MD GO, Cnty. Commissioners, Cons.
Pub. Impt.,
5.35%, 12/1/16..................................... 1,461,586
1,000,000 Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 7/1/25..................................... 1,019,380
1,000,000 Harford Cnty., MD MHRB, Perkins Place Proj., Ser. A,
5.00%, 9/1/28...................................... 1,007,020
575,000 Howard Cnty., MD GO, Cons. Pub. Impt.,
5.25%, 8/15/11..................................... 612,312
Maryland CDA Dept. of Hsg. & Cmnty. Dev.:
720,000 Residential RB, Ser. B, (FHA),
5.30%, 9/1/23...................................... 724,774
500,000 SFHRB, 1st Ser.,
5.15%, 4/1/18...................................... 495,180
1,470,000 SFHRB, 5th Ser.,
5.40%, 4/1/08...................................... 1,532,563
1,000,000 Maryland GO, State & Local Facs. Loan, 1st Ser.,
5.70%, 3/15/10..................................... 1,094,170
Maryland Hlth. & Higher Edl. Facs. Auth. RB:
Calvert Memorial Hosp.:
450,000 4.80%, 7/1/10...................................... 457,065
500,000 5.00%, 7/1/19...................................... 491,195
500,000 Doctors Cmnty. Hosp. Inc.,
5.50%, 7/1/24...................................... 495,840
1,000,000 Francis Scott Key Med. Ctr.,
5.30%, 7/1/08...................................... 1,058,290
1,000,000 Medlantic/Helix Issue, Ser. B,
5.25%, 8/15/15..................................... 1,040,610
500,000 Memorial Hosp. at Easton, (MBIA),
5.25%, 7/1/12...................................... 529,270
225,000 Union Hosp. of Cecil Cnty.,
4.60%, 7/1/09...................................... 226,462
500,000 Upper Chesapeake Hosp., (FSA),
5.50%, 1/1/20...................................... 522,385
1,800,000 Maryland Stadium Auth. Lease RB, Convention Ctr.
Expansion Proj., (AMBAC),
5.875%, 12/15/11................................... 1,991,826
850,000 Maryland Trans. Facs. Auth. RB,
5.80%, 7/1/06...................................... 944,809
500,000 Montgomery Cnty., MD GO, Cons. Pub. Impt., Ser. A,
5.75%, 7/1/06....................................... 556,210
1,250,000 Northeast MD Wst. Disp. Auth. Res. Rec. RB, Baltimore
Resco Retrofit Proj.,
5.00%, 1/1/12....................................... 1,235,925
900,000 Northeast MD Wst. Disp. Auth. Sld. Wst. RB,
Montgomery Cnty. Res. Rec. Proj.,
6.30%, 7/1/16....................................... 964,413
1,000,000 Ocean City, MD GO, (MBIA),
5.50%, 3/15/09...................................... 1,071,970
1,300,000 Prince Georges Cnty., MD IDA Lease RB, Hyattsville
Dist. Court Fac., Ser. A,
6.00%, 7/1/09....................................... 1,438,372
1,400,000 Univ. of MD, Sys. Auxilliary Fac. & Tuition RB, Ser.
A, 5.40%, 4/1/09.................................... 1,506,498
Washington, MD Suburban Sanitation Dist., Wtr. Supply
RB:
1,600,000 5.375%, 6/1/11...................................... 1,702,624
1,700,000 5.50%, 6/1/10....................................... 1,822,247
-----------
29,974,461
-----------
South Carolina - 1.4%
500,000 Georgetown Cnty., SC PCRB, Int'l Paper Co. Proj.,
5.125%, 2/1/12...................................... 512,590
-----------
Virginia - 2.1%
750,000 Chesapeake, VA Redev. & Hsg. Auth. MHRB, Residential
Rental, Ser. A,
6.20%, 4/1/28....................................... 764,025
-----------
U. S. Virgin Islands - 5.0%
1,000,000 Virgin Islands, Pub. Fin. Auth. RB, Sr. Lien, Ser. A,
5.625%, 10/1/25..................................... 1,024,350
750,000 Virgin Islands, Wtr. & Pwr. Auth. Elec. Sys. RB,
5.30%, 7/1/18....................................... 754,395
-----------
1,778,745
-----------
Total Municipal Obligations
(cost $33,400,345).................................. 34,728,026
-----------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 2.1% (cost $746,000)
746,000 Federated Municipal Obligations Fund .................. 746,000
-----------
Total Investments - (cost $34,146,345)........ 98.6% 35,474,026
Other Assets and Liabilities - net............. 1.4 516,795
----- -----------
Net Assets - .................................. 100.0% $35,990,821
===== ===========
41
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
Summary of Abbreviations:
AMBAC Insured by American Municipal Bond Assurance Corporation
CDA Community Development Authority
EDRB Economic Development Revenue Bond
FHA Insured by Federal Housing Authority
FSA Insured by Financial Security Assurance Company
GO General Obligation
IDA Industrial Development Authority
MBIA Insured by Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
SFHRB Single Family Housing Revenue Bond
See Combined Notes to Financial Statements.
42
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - 97.2%
Illinois - 2.5%
$ 3,775,000 Chicago, IL O'Hare Int'l. Arpt. Spl. Facs. RB,
United Air Lines Proj., Ser. B,
5.20%, 4/1/11..................................... $ 3,829,020
4,000,000 Illinois Dev. Fin. Auth. Solid Wst. Disposal RB,
Wst. Mgmt. Inc. Proj.,
5.05%, 1/1/10..................................... 4,000,000
------------
7,829,020
------------
Louisiana - 0.3%
1,000,000 Saint Charles Parish, LA PCRB, Union Carbide Corp.
Proj.,
5.10%, 1/1/12..................................... 996,300
------------
North Carolina - 89.6%
1,435,000 Asheville, NC Hsg. Auth MHRB, Woodridge Apts.,
(GNMA),
5.80%, 11/20/39................................... 1,489,458
1,000,000 Buncombe Cnty., NC GO,
5.10%, 3/1/10..................................... 1,070,500
1,205,000 Burlington, NC Burlington Homes Section 8, Ser. A,
6.00%, 8/1/09..................................... 1,279,782
2,480,000 Cabarrus Cnty., NC GO, (MBIA),
5.30%, 2/1/11..................................... 2,659,304
1,000,000 Chapel Hill, NC Parking Facs. RB, COP,
6.35%, 12/1/18.................................... 1,106,450
Charlotte, NC COP:
1,735,000 Cityfair Parking Fac. Proj., Ser. A,
6.125%, 6/1/10.................................... 1,910,339
1,000,000 Convention Fac. Proj., (AMBAC),
6.65%, 12/1/03.................................... 1,096,500
Stadium Parking Fac. Proj., Ser. C:
1,245,000 6.00%, 6/1/10..................................... 1,363,561
1,475,000 6.00%, 6/1/14..................................... 1,612,544
5,000,000 Charlotte, NC GO,
5.00%, 2/1/10..................................... 5,329,500
1,425,000 Charlotte, NC Hsg. Dev. Corp., Mtge. RB, Vantage 78
Apts.,
6.60%, 7/15/21.................................... 1,494,626
Charlotte, NC Mecklenberg Hosp. RB:
1,050,000 5.75%, 1/1/12..................................... 1,119,447
1,495,000 6.00%, 1/1/05..................................... 1,608,889
20,000,000 Charlotte, NC Spl. Facs. RB, Charlotte Douglas
Int'l. Arpt.,
5.60%, 7/1/27..................................... 19,608,600
2,000,000 Craven Cnty., NC GO,
6.40%, 6/1/00..................................... 2,078,020
4,000,000 Craven Cnty., NC Indl. Facs. & Pollution Ctl. Fin.
Auth. RB, Weyerhaeuser Co. Proj.,
6.35%, 1/1/10..................................... 4,278,040
2,390,000 Cumberland Cnty., NC COP, Civic Ctr. Proj., Ser. A,
(AMBAC),
6.40%, 12/1/24.................................... 2,745,919
Cumberland Cnty., NC GO:
2,100,000 5.90%, 2/1/10..................................... 2,304,687
2,100,000 5.90%, 2/1/11..................................... 2,304,687
2,100,000 5.90%, 2/1/12..................................... 2,304,687
Durham Cnty., NC COP:
Hosp. & Office Facs. Proj.:
$ 1,235,000 5.60%, 5/1/06..................................... $ 1,352,362
1,305,000 5.70%, 5/1/07..................................... 1,437,066
1,375,000 5.75%, 5/1/08..................................... 1,518,399
1,485,000 New Durham Corp. Ser. B,
5.25%, 12/1/11.................................... 1,595,142
2,750,000 Durham Cnty., NC MHRB, Ivy Commons Proj.,
8.00%, 3/1/29..................................... 2,847,625
1,160,000 Durham Cnty., NC New Durham Corp, Ser. A,
5.25%, 12/1/10.................................... 1,253,032
Durham Cnty., NC Pub. Impt. Bonds, Ser. 95:
2,400,000 5.80%, 2/1/10..................................... 2,651,856
2,400,000 5.80%, 2/1/11..................................... 2,645,184
Fayetteville, NC Pub. Works Commission RB, Ser. A:
2,000,000 6.00%, 3/1/12..................................... 2,151,560
1,360,000 6.75%, 3/1/03..................................... 1,509,110
1,305,000 6.75%, 3/1/04..................................... 1,474,154
1,380,000 6.75%, 3/1/05..................................... 1,583,454
1,025,000 Franklin Cnty., NC COP, Jail & Sch. Proj., (FGIC),
6.20%, 6/1/04..................................... 1,140,774
915,000 Fremont, NC Hsg. Dev. Corp. RB, Torhunta Apts.,
(FHA),
6.75%, 7/15/22.................................... 966,615
Gastonia, NC Combined Util. Sys. RB, (MBIA):
1,000,000 6.00%, 5/1/14..................................... 1,118,470
1,505,000 6.10%, 5/1/19..................................... 1,690,311
Greensboro, NC Combined Enterprise Sys. RB, Ser. A:
1,615,000 5.20%, 6/1/10..................................... 1,707,265
880,000 6.50%, 6/1/02..................................... 956,252
1,050,000 6.50%, 6/1/03..................................... 1,161,426
1,300,000 6.50%, 6/1/05..................................... 1,481,493
Greensboro, NC COP, Colliseum Arena Expansion
Proj.:
1,000,000 6.40%, 12/1/01.................................... 1,076,900
1,100,000 6.65%, 12/1/04.................................... 1,201,563
1,000,000 Harnett Cnty., NC COP, (AMBAC),
6.40%, 12/1/14.................................... 1,130,550
Haywood Cnty., NC Indl. Facs. & Pollution Ctl.,
Fin. Auth. RB, Champion Int'l. Corp. Proj.:
2,500,000 6.00%, 3/1/20..................................... 2,587,175
1,750,000 6.25%, 9/1/25..................................... 1,843,730
Martin Cnty., NC Indl. Facs. & Pollution Ctl., Fin.
Auth. RB, Weyerhaeuser Co. Proj.:
4,750,000 6.80%, 5/1/24..................................... 5,191,987
1,100,000 8.50%, 6/15/99.................................... 1,117,523
6,500,000 Mecklenburg Cnty., NC GO,
5.00%, 4/1/09..................................... 6,940,635
43
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
North Carolina - continued
Mecklenburg Cnty., NC Pub. Impt. RB:
$ 4,095,000 5.40%, 4/1/08..................................... $ 4,402,084
5,000,000 5.40%, 4/1/09..................................... 5,355,850
New Hanover Cnty., NC Hosp. RB New Hanover Reg'l.
Med Ctr. Proj.:
2,745,000 5.25%, 10/1/11.................................... 2,914,915
2,875,000 5.25%, 10/1/12.................................... 3,030,624
2,970,000 5.25%, 10/1/13.................................... 3,106,561
1,000,000 North Carolina Coastal Reg'l. Solid Wst. Mgmt.
Auth. RB, Solid Wst. Disposal Sys.,
6.50%, 6/1/08..................................... 1,081,840
North Carolina Eastern Muni. Pwr. Agcy., Pwr. Sys.
RB:
Ser. A:
1,200,000 5.00%, 1/1/17..................................... 1,227,036
5,000,000 5.00%, 1/1/21..................................... 5,038,450
5,000,000 5.70%, 1/1/13 (MBIA).............................. 5,422,300
1,550,000 6.00%, 1/1/26..................................... 1,774,797
3,750,000 6.50%, 1/1/18 (ETM)............................... 4,252,912
5,440,000 Ser. B,
6.00%, 1/1/22..................................... 5,835,270
Ser. C:
6,500,000 6.00%, 1/1/18 (AMBAC)............................. 7,355,465
7,965,000 7.00%, 1/1/07..................................... 9,104,473
North Carolina Hsg. Fin. & Dev. Auth. RB, SFHRB:
1,060,000 Ser. EE,
5.90%, 9/1/13..................................... 1,126,165
3,775,000 Ser. JJ,
6.15%, 3/1/11..................................... 4,047,291
1,140,000 Ser. T,
7.05%, 9/1/20..................................... 1,208,138
970,000 Ser. W,
6.20%, 9/1/09..................................... 1,036,193
15,600,000 North Carolina Hwy. RB, Ser. A,
5.00%, 5/1/11..................................... 16,521,336
North Carolina Med. Care Commission Hosp. RB:
Annie PA Mem. Hosp.:
1,000,000 5.25%, 1/1/12..................................... 981,260
2,350,000 5.375%, 1/1/22.................................... 2,276,233
920,000 Carolina Medicorp Proj.,
6.30%, 5/1/01..................................... 974,528
2,630,000 Gaston Hlth. Care RB,
5.375%, 2/15/11................................... 2,769,101
Grace Hosp. Inc.:
3,825,000 5.25%, 10/1/13.................................... 3,944,799
1,110,000 6.50%, 10/1/05.................................... 1,266,011
1,180,000 6.50%, 10/1/06.................................... 1,359,053
High Point Reg'l. Hlth. Sys.:
1,605,000 5.50%, 10/1/08.................................... 1,751,119
1,445,000 5.50%, 10/1/09.................................... 1,574,313
3,100,000 Hlth. Care Facs.,
5.75%, 7/1/19..................................... 3,061,312
Hlth. Care Facs., First Mtge., Deerfield Episcopal:
11,595,000 5.30%, 11/1/04.................................... 11,871,889
3,550,000 5.85%, 7/1/27..................................... 3,546,769
500,000 6.875%, 10/1/09................................... 527,890
5,000,000 Hlth. Care Facs., Stanly Mem. Hosp. Proj., (AMBAC),
5.375%, 10/1/14................................... 5,234,450
2,320,000 Northeast Med. Ctr. Proj. RB,
5.00%, 11/1/10.................................... 2,417,904
5,035,000 Pitt Cnty. Mem. Hosp. RB, Ser. A,
5.25%, 12/1/10.................................... 5,338,359
Presbyterian Hlth. Svcs. Co. Proj.:
900,000 6.125%, 10/1/14................................... 988,938
925,000 7.30%, 10/1/15.................................... 1,000,758
Rex Hosp. Proj.:
2,500,000 6.125%, 6/1/10.................................... 2,774,475
3,700,000 6.25%, 6/1/17..................................... 4,124,279
Transylvania Community Hosp. Inc.:
1,130,000 5.50%, 10/1/12.................................... 1,125,118
1,090,000 5.75%, 10/1/19.................................... 1,085,760
North Carolina Muni. Pwr. Agcy., Elec. RB,
Catawba Elec.:
11,500,000 7.25%, 1/1/07..................................... 13,597,210
5,500,000 5.00%, 1/1/20..................................... 5,563,800
North Carolina Student Edl. Assistance Auth. RB:
Ser. A:
1,000,000 6.05%, 7/1/10..................................... 1,054,120
2,000,000 6.30%, 7/1/15..................................... 2,127,780
2,375,000 Ser. C,
6.35%, 7/1/16..................................... 2,540,490
1,000,000 Pitt Cnty., NC COP, Pitt Cnty. Pub. Facs., Ser. A,
(MBIA),
5.55%, 4/1/12..................................... 1,082,040
1,835,000 Univ. of NC Chapel Hill Parking Sys. RB, Ser. A,
5.60%, 5/15/17.................................... 1,947,394
3,865,000 Winston Salem, NC GO,
8.875%, 6/1/00.................................... 4,130,294
------------
287,976,279
------------
West Virginia - 0.9%
3,000,000 Kanawha Cnty., WV PCRB, Union Carbide Corp. Proj.,
5.10%, 1/1/12..................................... 2,988,900
------------
Puerto Rico - 2.3%
2,535,000 Cmnwlth. of Puerto Rico GO, (MBIA),
6.25%, 7/1/09..................................... 2,965,012
44
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Puerto Rico - continued
Cmnwlth. of Puerto Rico Indl. Tourist, Edl., Med. &
Env. Ctl, Facs. RB,
Mennonite General Hosp. Proj., Ser. A:
$ 1,425,000 5.625%, 7/1/17.................................... $ 1,439,777
500,000 5.625%, 7/1/27.................................... 503,085
1,000,000 Comnwlth. of Puerto Rico Muni. Fin. Agcy., Ser. A,
5.70%, 7/1/03..................................... 1,070,040
1,400,000 Comnwlth. of Puerto Rico Port Auth. RB, American
Airlines Proj., Ser. A,
6.25%, 6/1/26..................................... 1,510,670
------------
7,488,584
------------
U.S. Virgin Islands - 1.6%
5,000,000 Virgin Islands, Pub. Fin. Auth., Refunding Sr.
Lien, Ser. A,
5.20%, 10/1/10..................................... 5,117,900
------------
Total Municipal Obligations (cost $295,494,088)..... 312,396,983
------------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 4.7% (cost $15,151,000)
15,151,000 Federated Municipal Obligations Fund............... 15,151,000
------------
Total Investments - (cost $310,645,088)..... 101.9% 327,547,983
Other Assets and
Liabilities - net (1.9) (6,201,486)
------ ------------
Net Assets - ............................... 100.0% $321,346,497
====== ============
Summary of Abbreviations:
AMBAC Insured by American Municipal Bond Assurance Corporation
COP Certificate of Participation
ETM Escrowed to Maturity
FGIC Insured by Federal Guaranty Insurance Company
FHA Insured by Federal Housing Authority
GNMA Insured by Government National Mortgage Association
GO General Obligation
MBIA Insured by Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
SFHRB Single Family Housing Revenue Bond
See Combined Notes to Financial Statements.
45
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - 97.4%
Maryland - 1.1%
$ 750,000 Frederick Cnty., MD Spl. Obl. RB, Urbana Community
Dev. Auth.,
6.625%, 7/1/25...................................... $ 764,535
-----------
South Carolina - 84.9%
500,000 Beaufort Cnty., SC Sch. Dist., GO, Ser. B, 4.00%,
2/1/08.............................................. 492,605
1,245,000 Beaufort Cnty., SC Hosp. Facs. RB, Beaufort Cnty.
Memorial Hosp., (AMBAC),
5.25%, 12/1/06...................................... 1,329,909
400,000 Calhoun Cnty., SC Solid Wst. Disposal Facs. RB,
Eastman Kodak Co. Proj.,
6.75%, 5/1/17....................................... 482,920
400,000 Camden, SC Pub. Util. RB, Refunding & Impt., (MBIA),
5.50%, 3/1/17....................................... 419,456
Charleston Cnty., SC Hlth. Facs. RB, First Mtge.
Episcopal Church Proj.:
300,000 7.125%, 4/1/20...................................... 312,381
750,000 Ser. A,
6.25%, 4/1/19....................................... 776,010
Charleston Cnty., SC Res. Rec. RB, Foster Wheeler,
(AMBAC):
3,000,000 5.10%, 1/1/08....................................... 3,161,340
2,835,000 5.25%, 1/1/10....................................... 3,015,731
675,000 Charleston, SC GO,
7.00%, 4/1/11....................................... 715,750
3,750,000 Columbia, SC Wtrwks. & Swr. Sys. RB,
5.70%, 2/1/10....................................... 4,186,575
Darlington Cnty., SC IDRB:
500,000 Nucor Corp. Proj., Ser. A,
5.75%, 8/1/23....................................... 518,160
750,000 Sonoco Products Co. Proj.,
6.00%, 4/1/26....................................... 798,038
Florence Cnty., SC GO, Sch. Dist. No. 001, (FGIC):
1,150,000 5.80%, 5/1/07....................................... 1,251,165
1,175,000 5.80%, 5/1/08....................................... 1,278,365
1,200,000 5.80%, 5/1/09....................................... 1,303,140
2,000,000 Georgetown Cnty., SC PCRB, Int'l. Paper Co. Proj.,
Ser. A,
5.125%, 2/1/12...................................... 2,050,360
200,000 Georgetown Cnty., SC Wtr. & Swr. Dist. RB, Refunding
& Impt. Jr. Lien,
6.50%, 6/1/17....................................... 229,606
750,000 Grand Strand, SC Wtrwrks. & Swr. Sys. Auth. RB,
(MBIA),
6.375%, 6/1/12...................................... 887,595
Greenville, SC Hosp. Facs. RB:
1,000,000 Ser. A,
5.40%, 5/1/07....................................... 1,076,550
Ser. B:
500,000 5.25%, 5/1/17....................................... 503,585
3,500,000 5.60%, 5/1/10....................................... 3,771,390
600,000 5.70%, 5/1/12....................................... 644,094
400,000 Greenville, SC Mem. Auditorium Dist. GO, Bi-Lo Ctr.
Proj., (AMBAC),
5.75%, 4/1/18....................................... 446,268
1,000,000 Greenwood, SC Combined Pub. Util. RB, Refunding &
Impt., (AMBAC),
5.50%, 12/1/08...................................... 1,070,590
300,000 Horry Cnty., SC Arpt. RB, Ser. A, (FSA),
5.60%, 7/1/17....................................... 313,692
1,000,000 Horry Cnty., SC GO, Sch. Dist., Ser. B, (FGIC),
5.50%, 1/1/12....................................... 1,064,060
1,800,000 Loris, SC Community Hosp. RB, Ser. A,
5.50%, 1/1/16....................................... 1,795,752
400,000 Marion Cnty., SC Hosp. Dist. RB,
5.375%, 11/1/25..................................... 403,972
Myrtle Beach, SC GO:
500,000 5.40%, 3/1/12....................................... 526,375
525,000 5.40%, 3/1/13....................................... 552,694
Piedmont, SC Muni. Pwr. Agy., Elec. RB:
1,000,000 6.10%, 1/1/06....................................... 1,124,640
1,150,000 6.25%, 1/1/09....................................... 1,338,462
500,000 Ser. A,
5.75%, 1/1/24....................................... 500,090
250,000 South Carolina Edl. Assistance Auth. RB, Gtd. Student
Loans, Ser. C,
5.875%, 9/1/07...................................... 266,570
South Carolina Hsg. Fin. & Dev. Auth. MHRB:
100,000 Ser. A, (FNMA & FHA),
6.80%, 11/15/11..................................... 106,127
265,000 Hunting Ridge Apts.,
6.75%, 6/1/25....................................... 284,244
300,000 Runaway Bay Apts. Proj., 6.125%, 12/1/15............. 313,506
South Carolina Hsg. Fin. & Dev. Auth. Mtge. RB, Ser.
A:
500,000 5.95%, 7/1/29....................................... 525,675
675,000 6.35%, 7/1/25....................................... 718,861
100,000 6.55%, 7/1/15....................................... 107,184
Heritage Ct. Apts., (FHA):
680,000 5.85%, 7/1/10....................................... 717,951
595,000 6.15%, 7/1/25....................................... 626,119
200,000 Homeownership Mortgage,
7.55%, 7/1/11....................................... 206,906
South Carolina Jobs EDA-Hosp. Facs. RB:
1,000,000 Georgetown Mem. Hosp., (AMBAC),
5.00%, 11/1/10...................................... 1,039,030
200,000 Oconee Mem. Hosp. Inc.,
6.15%, 3/1/15....................................... 215,788
South Carolina Jobs EDA-IDRB, Plasti Line Inc. Proj.,
(LOC: Keybank, N.A.):
220,000 5.50%, 7/1/06....................................... 230,872
200,000 5.65%, 7/1/08....................................... 209,456
200,000 5.70%, 7/1/09....................................... 209,058
190,000 5.80%, 7/1/10....................................... 198,945
230,000 5.90%, 7/1/11....................................... 241,261
400,000 6.25%, 7/1/17....................................... 413,888
46
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
South Carolina - continued
$2,000,000 South Carolina Jobs EDA-RB, Westminster Presbyterian,
Ser. A, 5.375%, 11/15/24............................ $ 1,895,880
South Carolina Med. Univ., Hosp. Facs. RB, (MBIA):
1,000,000 5.50%, 7/1/08....................................... 1,098,780
1,000,000 5.50%, 7/1/09....................................... 1,098,440
2,000,000 South Carolina Port Auth. RB, (FSA),
5.375%, 7/1/15...................................... 2,074,740
South Carolina, Pub. Svc. Auth. RB:
Ser. A, (MBIA):
500,000 5.75%, 1/1/22....................................... 533,510
1,000,000 6.25%, 1/1/05....................................... 1,118,430
Ser. B, (FGIC):
1,000,000 5.70%, 1/1/08....................................... 1,099,670
1,250,000 6.50%, 1/1/06....................................... 1,426,637
Spartanburg Cnty., SC Hlth. Svcs. Dist. Income RB,
(MBIA):
500,000 Ser. A,
5.50%, 4/15/27...................................... 518,450
1,755,000 Ser. B,
6.00%, 4/15/07...................................... 1,954,070
Three Rivers, SC Solid Wst. Disposal Facs. Auth. RB,
(MBIA):
600,000 5.15%, 1/1/04....................................... 629,022
870,000 5.25%, 1/1/05....................................... 920,112
1,000,000 York Cnty., SC GO, Sch. Dist. No. 004, Fort Mill,
(FGIC),
7.00%, 3/1/05....................................... 1,157,790
-----------
60,498,292
-----------
Virginia - 2.1%
$1,500,000 Chesapeake, VA Redev. & Hsg. Auth. MHRB, Residential
Rental, Chesapeake Crossing Seniors, Ser. A,
6.20%, 4/1/28....................................... $ 1,528,050
-----------
Puerto Rico - 4.7%
3,000,000 Cmnwlth. of Puerto Rico GO, (MBIA),
5.65%, 7/1/15....................................... 3,333,330
-----------
U.S. Virgin Islands - 4.6%
2,000,000 Virgin Islands Pub. Fin. Auth. RB, Sr. Lien, Ser. A,
5.625%, 10/1/25..................................... 2,048,700
1,250,000 Virgin Islands Wtr. & Pwr. Auth.,
Elec. Sys. RB,
5.30%, 7/1/18....................................... 1,257,325
-----------
3,306,025
-----------
Total Municipal Obligations
(cost $65,796,873).................................. 69,430,232
-----------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 2.8% (cost $1,974,000)
1,974,000 Federated Municipal Obligations Fund................. 1,974,000
-----------
Total Investments -(cost $67,770,873)......... 100.2% 71,404,232
Other Assets and
Liabilities - net............................ (0.2) (142,133)
----- -----------
Net Assets - ................................. 100.0% $71,262,099
===== ===========
Summary of Abbreviations:
AMBAC Insured by American Municipal Bond Assurance Corporation
EDA Economic Development Authority
FGIC Insured by Federal Guaranty Insurance Company
FHA Insured by Federal Housing Authority
FNMA Insured by Federal National Mortgage Association
FSA Insured by Financial Security Assurance Company
GO General Obligation
IDRB Industrial Development Revenue Bond
LOC Letter of Credit
MBIA Insured by Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
See Combined Notes to Financial Statements.
47
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments
February 28, 1999 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - 97.1%
District of Columbia - 2.5%
District of Columbia,
Metro. Area Transit Auth. RB, FGIC:
$2,500,000 6.00%, 7/1/07...................................... $ 2,813,925
900,000 6.00%, 7/1/08...................................... 1,021,878
600,000 6.00%, 7/1/09...................................... 683,352
------------
4,519,155
------------
Maryland - 0.9%
Frederick Cnty., MD Spl. Obl., Urbana Community Dev.
Auth.:
1,000,000 6.25%, 7/1/10...................................... 1,006,710
500,000 6.625%, 7/1/25..................................... 509,690
------------
1,516,400
------------
South Carolina - 1.4%
2,500,000 Georgetown Cnty., SC PCRB, Int'l. Paper Corp., Ser.
A,
5.125%, 2/1/12..................................... 2,562,950
------------
Virginia - 87.7%
Albemarle Cnty., VA IDA RB:
1,000,000 Martha Jefferson Hosp.,
5.75%, 10/1/08..................................... 1,068,500
Residential Care Fac., Our Lady of Peace, Inc.:
500,000 5.75%, 7/1/19...................................... 499,360
100,000 6.45%, 7/1/15...................................... 103,309
145,000 6.625%, 7/1/21..................................... 151,390
Alexandria, VA Redev. & Hsg. Auth. MHRB, Buckingham
Vlg. Apts.:
1,000,000 5.45%, 7/1/18...................................... 989,320
1,000,000 5.50%, 1/1/29...................................... 983,360
1,000,000 Amherst, VA IDA RB, Georgia
Pacific Corp. Proj.,
5.25%, 2/1/11...................................... 1,027,660
1,000,000 Arlington Cnty., VA GO,
5.90%, 8/1/10...................................... 1,117,390
Arlington Cnty., VA IDA MHRB,
Woodbury Park Apts.:
1,000,000 Ser. A,
5.35%, 7/1/18...................................... 998,730
1,600,000 Ser. B,
6.50%, 7/1/24...................................... 1,597,856
5,305,000 Arlington Cnty., VA IDA Res. Rec. RB, Ogden Martin
Sys. of Alexandria/Arlington, Inc. Proj., (FSA),
5.375%, 1/1/13..................................... 5,541,815
4,800,000 Bedford Cnty., VA IDA RB, Nekoosa Packaging Corp.
Proj.,
5.60%, 12/1/25..................................... 4,858,512
3,675,000 Big Stone Gap, VA Redev. & Hsg. Auth., Correctional
Facs. Lease RB, Wallens Ridge Dev. Proj.,
6.00%, 9/1/07...................................... 4,120,300
Brunswick (City of), VA IDA , Correctional Facs.
Lease RB (MBIA):
1,000,000 5.50%, 7/1/07...................................... 1,092,150
2,215,000 5.65%, 7/1/09...................................... 2,428,061
200,000 5.75%, 7/1/11...................................... 219,024
390,000 Buena Vista, VA IDA RB, Wtr. &
Swr. Facs., Route 60 Proj.,
6.25%, 7/15/11..................................... 408,010
4,750,000 Charles City Cnty., VA IDA RB,
Wst. Mgmt. of VA Inc. Proj.,
4.875%, 2/1/09..................................... 4,720,312
250,000 Charlottesville-Albemarle, VA
Arpt. Auth. RB,
6.125%, 12/1/13.................................... 261,930
2,890,000 Chesapeake Bay, VA Dist. RB,
Bridge & Tunnel Commission, (FGIC),
5.875%, 7/1/10..................................... 3,213,478
1,000,000 Chesapeake, VA Arpt. Auth. RB,
5.30%, 8/1/19...................................... 992,560
1,110,000 Chesapeake, VA IDA Pub. Facs. Lease RB, Chesapeake
Court House Proj., (MBIA),
6.00%, 6/1/07...................................... 1,240,813
3,000,000 Chesapeake, VA Pub. Impt. GO,
5.375%, 5/1/10..................................... 3,232,860
Chesapeake, VA Redev. & Hsg. Auth. MHRB:
500,000 Cedar Assn., Ser. A,
7.75%, 6/1/20...................................... 538,320
Chesapeake Crossing Seniors, Ser. A:
570,000 5.75%, 4/1/09...................................... 580,465
250,000 6.00%, 4/1/13...................................... 254,540
2,250,000 6.20%, 4/1/28...................................... 2,292,075
1,000,000 Chesapeake, VA Wtr. & Swr. Facs. GO, Ser. A,
7.00%, 12/1/04..................................... 1,159,680
Chesterfield Cnty., VA GO:
2,000,000 5.25%, 3/1/10...................................... 2,125,340
1,000,000 Ser. B,
6.70%, 1/1/06...................................... 1,077,330
500,000 Chesterfield Cnty., VA Hlth. Ctr., Community Mtge.
RB, Lucy Corr Nursing Home Proj., (GNMA),
5.875%, 12/1/21.................................... 536,225
500,000 Chesterfield Cnty., VA Wtr. & Swr. RB,
6.375%, 11/1/07.................................... 550,870
2,545,000 Danville, VA IDA Hosp. RB,
Danville Reg'l. Med. Ctr., (FGIC),
6.20%, 10/1/09..................................... 2,862,641
3,000,000 Dulles Town, VA Community Dev. Auth. RB, Dulles Town
Ctr. Proj.,
6.25%, 3/1/26...................................... 3,048,900
370,000 Fairfax Cnty., VA IDA RB,
Inova Hlth. Sys. Proj.,
5.875%, 8/15/16.................................... 400,636
3,000,000 Fairfax Cnty., VA Pub. Impt. GO, Ser. A,
5.25%, 6/1/09...................................... 3,202,740
250,000 Fairfax Cnty., VA Redev. & Hsg. Auth. Lease RB, Mott
& Gum Springs Community Ctrs.,
5.35%, 6/1/06...................................... 267,498
500,000 Fairfax Cnty., VA Redev. & Hsg. Auth. Mtge. RB, Hsg.
for the Elderly, (FHA),
6.00%, 9/1/16...................................... 528,180
48
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
$2,605,000 Fairfax Cnty., VA Swr. RB,
5.625%, 7/15/11.................................... $ 2,842,029
1,695,000 Fairfax Cnty., VA Wtr. Auth. RB,
6.00%, 4/1/22...................................... 1,867,585
500,000 Giles Cnty., VA IDA RB, Hoechst Celanese Corp.
Proj.,
6.45%, 5/1/26...................................... 544,240
250,000 Greensville Cnty., VA IDA RB, Georgia Pacific Corp.
Proj.,
5.30%, 8/1/14...................................... 255,770
Halifax Cnty., VA IDA RB,
Halifax Reg'l. Hosp., Inc.:
300,000 4.80%, 9/1/09...................................... 302,838
1,000,000 5.00%, 9/1/11...................................... 1,009,400
400,000 5.25%, 9/1/17...................................... 400,652
500,000 Hampton, VA GO,
6.00%, 1/15/08..................................... 560,720
Hanover Cnty., VA IDA RB (MBIA):
960,000 Bon Secours Hlth. Sys. Proj.,
6.00%, 8/15/08..................................... 1,089,034
1,360,000 Memorial Reg'l Med. Ctr. Proj.,
6.50%, 8/15/08..................................... 1,598,816
500,000 Harrisonburg, VA Redev. & Hsg. Auth., MHRB, Greens
of Salem Run Proj.,
6.20%, 4/1/17...................................... 530,390
Henrico Cnty., VA IDA Lease RB:
2,000,000 Bon Secours Hlth. Sys. Proj.,
5.60%, 8/15/10..................................... 2,162,920
700,000 Pub. Fac.,
7.00%, 8/1/13...................................... 818,412
1,000,000 Henrico Cnty., VA Wtr. & Swr. RB,
5.70%, 5/1/08...................................... 1,093,090
500,000 Isle Wright Cnty., VA IDA RB, Solid Wst. Disposal
Fac., Union Camp Corp. Proj.,
6.55%, 4/1/24...................................... 541,765
2,100,000 James City Cnty., VA IDA RB, Residential Care Fac.,
Williamsburg Landing, Inc.,
6.625%, 3/1/23..................................... 2,208,213
1,000,000 King & Queen Cnty., VA IDA Lease RB, King & Queen
Courts Complex, Ser. A,
5.625%, 7/15/17.................................... 1,055,910
700,000 King George Cnty., VA IDA Lease RB, King George
Cnty. School Proj.,
6.40%, 8/1/16...................................... 740,138
1,000,000 Loudoun Cnty., VA GO, Ser. A,
5.50%, 10/1/07..................................... 1,072,490
1,550,000 Loudoun Cnty., VA Sanitation Auth., Wtr. & Swr. RB,
(FGIC),
6.25%, 1/1/10...................................... 1,697,994
1,160,000 Lynchburg, VA IDA RB, Centra Hlth., Inc.,
5.20%, 1/1/18...................................... 1,162,784
4,440,000 Newport News, VA GO,
5.75%, 1/15/17..................................... 4,814,780
Norfolk, VA GO:
3,000,000 5.25%, 6/1/11...................................... 3,162,120
2,000,000 5.70%, 6/1/08...................................... 2,177,840
Norfolk, VA Redev. & Hsg. Auth. RB, Merrimack
Landing Proj.:
275,000 5.00%, 12/1/05..................................... 283,085
340,000 5.10%, 12/1/06..................................... 350,611
1,300,000 Northampton Cnty., VA GO, Ser. A, (FSA),
5.30%, 7/15/18..................................... 1,308,762
1,300,000 Peumansend Creek, VA Reg'l. Jail Auth. RB, (MBIA),
5.75%, 6/1/17...................................... 1,393,028
Portsmouth, VA Redev. & Hsg. Auth. MHRB:
500,000 Chowan Apts., Ser. A, (GNMA),
5.85%, 12/20/30.................................... 526,420
640,000 January 16th Assn., Ser. A, (FNMA),
6.30%, 9/1/26...................................... 689,318
700,000 Prince William Cnty., VA GO, Ser. A,
6.20%, 12/1/11..................................... 748,328
Prince William Cnty., VA IDA RB:
500,000 ATCC Proj.,
6.00%, 2/1/14...................................... 527,350
Melrose Apts. Proj.:
1,000,000 Ser. A,
5.25%, 7/1/18...................................... 1,000,800
4,000,000 Ser. C,
7.00%, 7/1/29...................................... 4,002,680
500,000 Potomac Hosp. Corp.,
6.75%, 10/1/15..................................... 589,275
Prince William Cnty., VA Park Auth. RB:
500,000 6.30%, 10/15/06.................................... 559,020
1,300,000 6.875%, 10/15/16................................... 1,464,697
Richmond, VA Metro. Auth. Expressway RB (FGIC):
605,000 5.25%, 7/15/11..................................... 650,678
520,000 5.25%, 7/15/12..................................... 557,788
Riverside, VA Reg'l. Jail Auth. RB, (MBIA):
3,375,000 5.625%, 7/1/07..................................... 3,696,131
1,000,000 5.875%, 7/1/14..................................... 1,084,990
400,000 6.00%, 7/1/25...................................... 438,116
1,185,000 Roanoke, VA IDA RB, Roanoke Memorial Hosp., Ser. B,
(AMBAC),
6.00%, 7/1/07...................................... 1,266,125
Suffolk, VA GO, (AMBAC):
250,000 5.70%, 6/1/10...................................... 274,960
750,000 5.90%, 6/1/13...................................... 826,328
1,500,000 Virginia Beach, VA Dev. Auth. Hlth. Care Fac. RB,
Sentara Hlth. Sys.,
5.25%, 11/1/15..................................... 1,536,870
Virginia Beach, VA GO:
1,575,000 5.40%, 7/15/09..................................... 1,720,199
1,000,000 6.00%, 9/1/09...................................... 1,121,570
49
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
Virginia College, VA Edl. Fac.
Bldg. Auth. RB:
$3,510,000 21st Century College Program,
5.40%, 8/1/15........................................ $ 3,670,828
700,000 Hampton Univ. Proj.,
5.75%, 4/1/14........................................ 738,157
Virginia Hsg. Dev. Auth. RB, Cmnwlth. Mtge.:
1,000,000 Ser. A, Subseries A-1,
6.20%, 7/1/11........................................ 1,055,100
1,000,000 Ser. C, Subseries C-2,
5.75%, 7/1/07........................................ 1,061,110
500,000 Ser. C, Subseries C-6,
6.25%, 1/1/15........................................ 521,980
1,300,000 Ser. D, Subseries D-1,
6.10%, 1/1/19........................................ 1,379,209
1,180,000 Series E, Subseries E-3,
4.80%, 7/1/09........................................ 1,199,187
300,000 Series F, Subseries F-1,
6.25%, 7/1/12........................................ 317,049
Virginia Hsg. Dev. Auth. MHRB:
1,430,000 Ser. B,
4.95%, 11/1/10....................................... 1,450,306
Ser. H:
500,000 6.00%, 5/1/10........................................ 530,780
1,000,000 6.10%, 11/1/11....................................... 1,068,190
300,000 6.35%, 11/1/11....................................... 322,773
1,000,000 Ser. I,
5.45%, 5/1/18........................................ 1,026,300
400,000 Ser. K,
5.90%, 5/1/11........................................ 428,268
500,000 Ser. O,
6.05%, 11/1/17....................................... 532,390
480,000 Virginia IDA RB, Small Business
Financing, Hodges Farm Associates II,
4.75%, 11/1/12....................................... 485,266
400,000 Virginia Port Auth. Cmnwlth.
Port Facs. RB,
5.60%, 7/1/27........................................ 416,224
Virginia Port Auth. Cmnwlth. Port Fund RB:
1,260,000 5.55%, 7/1/12........................................ 1,345,945
750,000 5.90%, 7/1/16........................................ 801,007
7,000,000 Virginia Pub. Bldg. Auth. RB,
5.20%, 8/1/10........................................ 7,414,190
200,000 Virginia Pub. Sch. Auth. RB,
Ser. A,
6.20%, 8/1/14........................................ 222,532
850,000 Virginia Pub. Sch. Auth. RB,
Spl. Obl., York Cnty.,
5.90%, 7/15/13....................................... 930,827
1,000,000 Virginia State GO,
6.10%, 6/1/06........................................ 1,107,130
Virginia Trans. Board Contract RB,
Northern VA Trans. Dist., Ser. A:
2,030,000 6.00%, 5/15/08....................................... 2,231,883
2,160,000 6.75%, 5/15/05....................................... 2,485,318
Virginia Univ. RB:
Ser. A:
350,000 5.625%, 5/1/16....................................... 371,746
2,325,000 5.75%, 5/1/21........................................ 2,490,842
1,000,000 Ser. B,
5.35%, 5/1/09........................................ 1,074,960
550,000 West Point, VA IDA RB, Solid Wst. Disposal,
Chesapeake Corp. Proj., Ser. B,
6.25%, 3/1/19........................................ 580,272
------------
157,878,968
------------
Puerto Rico - 0.8%
1,200,000 Cmnwlth. of Puerto Rico GO, (MBIA),
6.25%, 7/1/13........................................ 1,413,144
------------
U.S. Virgin Islands - 3.8%
Virgin Islands, Pub. Fin. Auth. RB, Sr. Lien, Ser.
A:
1,000,000 5.20%, 10/1/09....................................... 1,028,690
2,000,000 5.50%, 10/1/13....................................... 2,067,520
250,000 5.625%, 10/1/25...................................... 256,088
Virgin Islands, Wtr. & Pwr. Auth. RB:
2,585,000 5.25%, 7/1/08........................................ 2,743,615
620,000 5.25%, 7/1/09........................................ 654,150
------------
6,750,063
------------
Total Municipal Obligations
(cost $166,016,030).................................. 174,640,680
------------
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES - 3.0% (cost $5,462,000)
5,462,000 Federated Municipal Obligations Fund................. 5,462,000
------------
Total Investments - (cost $171,478,030)....... 100.1% 180,102,680
Other Assets and Liabilities - net............ (0.1) (153,631)
----- ------------
Net Assets - ................................. 100.0% $179,949,049
===== ============
50
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
February 28, 1999 (unaudited)
Summary of Abbreviations:
AMBAC Insured by American Municipal Bond Assurance Corporation
FGIC Insured by Federal Guaranty Insurance Company
FHA Insured by Federal Housing Authority
FNMA Insured by Federal National Mortgage Association
FSA Insured by Financial Security Assurance Company
GNMA Insured by Government National Mortgage Association
GO General Obligation
IDA Industrial Development Authority
MBIA Insured by Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
See Combined Notes to Financial Statements.
51
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Southern States Municipal Bond Funds
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
Florida North South
High Income Florida Georgia Maryland Carolina Carolina Virginia
Fund Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $438,124,694 $629,153,847 $82,617,285 $34,146,345 $310,645,088 $67,770,873 $171,478,030
Net unrealized gains or
losses on securities.. 12,032,290 26,602,878 5,117,944 1,327,681 16,902,895 3,633,359 8,624,650
- ------------------------------------------------------------------------------------------------------------------
Market value of
securities............ 450,156,984 655,756,725 87,735,229 35,474,026 327,547,983 71,404,232 180,102,680
Cash................... 7,680 342 546 297 901 327 697
Receivable for
securities sold....... 0 4,940,153 1,494,989 0 0 1,001,632 2,011,991
Receivable for Fund
shares sold........... 1,460,965 600,101 0 100,000 34,324 2,538 370,719
Interest receivable.... 8,888,214 10,474,548 1,149,065 486,835 4,297,931 907,379 2,315,097
Deferred organization
expense............... 9,141 0 0 0 0 0 0
Prepaid expenses and
other assets.......... 14,279 42,022 20,067 23,151 21,350 12,317 29,634
- ------------------------------------------------------------------------------------------------------------------
Total assets........ 460,537,263 671,813,891 90,399,896 36,084,309 331,902,489 73,328,425 184,830,818
- ------------------------------------------------------------------------------------------------------------------
Liabilities
Distributions payable.. 942,199 1,964,176 283,067 47,726 1,001,790 235,224 478,488
Payable for securities
purchased............. 0 8,051,808 0 0 9,113,225 1,808,525 4,341,190
Payable for Fund shares
redeemed.............. 1,165,403 704,215 57,547 0 364,160 0 953
Advisory fee payable... 169,663 55,694 5,605 27,867 20,720 14,425 10,667
Distribution Plan
expenses payable...... 182,033 73,629 8,147 11,373 32,254 3,255 27,177
Due to other related
parties............... 10,776 10,372 1,740 717 6,371 1,604 3,482
Accrued expenses and
other liabilities..... 69,788 54,409 8,336 5,805 17,472 3,293 19,812
- ------------------------------------------------------------------------------------------------------------------
Total liabilities... 2,539,862 10,914,303 364,442 93,488 10,555,992 2,066,326 4,881,769
- ------------------------------------------------------------------------------------------------------------------
Net assets.............. $457,997,401 $660,899,588 $90,035,454 $35,990,821 $321,346,497 $71,262,099 $179,949,049
- ------------------------------------------------------------------------------------------------------------------
Net assets represented by
Paid-in capital........ $445,369,074 $629,934,292 $84,767,904 $34,564,522 $302,866,435 $66,876,912 $170,584,087
Undistributed net
investment income..... 171,844 126,621 14,633 5,725 53,368 9,393 34,365
Accumulated net
realized gains or
losses on securities.. 424,193 4,235,797 134,973 92,893 1,523,799 742,435 705,947
Net unrealized gains or
losses on securities.. 12,032,290 26,602,878 5,117,944 1,327,681 16,902,895 3,633,359 8,624,650
- ------------------------------------------------------------------------------------------------------------------
Total net assets.... $457,997,401 $660,899,588 $90,035,454 $35,990,821 $321,346,497 $71,262,099 $179,949,049
- ------------------------------------------------------------------------------------------------------------------
Net assets consist of
Class A................ $292,023,392 $162,118,782 $ 3,907,792 $25,500,334 $ 17,108,129 $ 2,077,706 $ 53,828,720
Class B................ 120,371,604 66,387,731 13,508,463 2,335,366 50,005,274 4,825,344 11,682,987
Class C................ 4,221,143 9,895,117 0 15,609 0 0 0
Class Y................ 41,381,262 422,497,958 72,619,199 8,139,512 254,233,094 64,359,049 114,437,342
- ------------------------------------------------------------------------------------------------------------------
$457,997,401 $660,899,588 $90,035,454 $35,990,821 $321,346,497 $71,262,099 $179,949,049
- ------------------------------------------------------------------------------------------------------------------
Shares outstanding
Class A................ 26,053,816 16,361,636 379,006 2,293,337 1,593,576 201,050 5,174,724
Class B................ 10,739,389 6,700,022 1,310,162 210,037 4,657,958 466,937 1,123,133
Class C................ 376,612 998,667 -- 1,404 -- -- --
Class Y................ 3,692,044 42,641,083 7,043,193 732,046 23,681,656 6,227,778 11,001,249
- ------------------------------------------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 11.21 $ 9.91 $ 10.31 $ 11.12 $ 10.74 $ 10.33 $ 10.40
- ------------------------------------------------------------------------------------------------------------------
Class A - Offering
price (based on sales
charge of 4.75%)...... $ 11.77 $ 10.40 $ 10.82 $ 11.67 $ 11.28 $ 10.85 $ 10.92
- ------------------------------------------------------------------------------------------------------------------
Class B................ $ 11.21 $ 9.91 $ 10.31 $ 11.12 $ 10.74 $ 10.33 $ 10.40
- ------------------------------------------------------------------------------------------------------------------
Class C................ $ 11.21 $ 9.91 -- $ 11.12 -- -- --
- ------------------------------------------------------------------------------------------------------------------
Class Y................ $ 11.21 $ 9.91 $ 10.31 $ 11.12 $ 10.74 $ 10.33 $ 10.40
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
52
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Southern State Municipal Bond Funds
- --------------------------------------------------------------------------------
Statements of Operations
Six Months Ended February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
Florida North South
High Income Florida Georgia Maryland Carolina Carolina Virginia
Fund Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest................ $12,759,436 $16,471,495 $2,260,353 $ 836,561 $ 8,249,427 $1,858,307 $4,474,365
- -----------------------------------------------------------------------------------------------------------------
Expenses
Advisory fee............ 1,286,423 1,638,697 213,645 82,734 796,120 180,415 429,462
Distribution Plan ex-
penses................. 914,861 582,094 69,240 39,589 265,913 25,527 116,541
Transfer agent fee...... 107,387 104,640 7,665 16,623 25,101 1,330 41,899
Administrative services
fees................... 55,991 88,272 11,162 4,336 41,609 9,450 22,700
Trustees' fees and ex-
penses................. 4,737 7,425 978 255 4,284 299 2,053
Printing and postage ex-
penses................. 11,638 16,167 2,776 885 7,516 3,859 4,775
Custodian fee........... 80,179 112,976 11,773 5,084 54,834 16,703 30,192
Registration and filing
fees................... 35,011 56,518 16,560 15,965 3,436 22,814 14,061
Professional fees....... 14,181 16,407 9,171 9,006 9,213 8,302 9,184
Organization expenses... 1,758 0 0 0 0 0 0
Other................... 4,612 5,301 1,069 2,490 4,016 5,912 1,408
- -----------------------------------------------------------------------------------------------------------------
Total expenses......... 2,516,778 2,628,497 344,039 176,967 1,212,042 274,611 672,275
Less: Fee credits....... (9,800) (14,654) (2,451) (843) (7,067) (1,607) (4,410)
Fee waivers........... (272,482) (1,381,813) (169,798) (48,806) (620,614) (84,786) (345,062)
- -----------------------------------------------------------------------------------------------------------------
Net expenses........... 2,234,496 1,232,030 171,790 127,318 584,361 188,218 322,803
- -----------------------------------------------------------------------------------------------------------------
Net investment income... 10,524,940 15,239,465 2,088,563 709,243 7,665,066 1,670,089 4,151,562
- -----------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities
Net realized gains or
losses on securities... 710,821 8,357,473 289,131 222,889 2,504,416 762,928 929,635
Net change in unrealized
gains or losses
on securities.......... (2,603,241) (9,064,428) (322,882) (114,127) (3,894,726) (845,517) (625,221)
- -----------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities... (1,892,420) (706,955) (33,751) 108,762 (1,390,310) (82,589) 304,414
- -----------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations ....... $ 8,632,520 $14,532,510 $2,054,812 $ 818,005 $ 6,274,756 $1,587,500 $4,455,976
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
53
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Southern States Municipal Bond Funds
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
Six Months Ended February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
Florida North South
High Income Florida Georgia Maryland Carolina Carolina Virginia
Fund Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ 10,524,940 $ 15,239,465 $ 2,088,563 $ 709,243 $ 7,665,066 $ 1,670,089 $ 4,151,562
Net realized gains or
losses on securities.. 710,821 8,357,473 289,131 222,889 2,504,416 762,928 929,635
Net change in
unrealized gains or
losses on securities.. (2,603,241) (9,064,428) (322,882) (114,127) (3,894,726) (845,517) (625,221)
- --------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations........... 8,632,520 14,532,510 2,054,812 818,005 6,274,756 1,587,500 4,455,976
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A.............. (7,091,158) (3,826,529) (83,190) (536,597) (384,601) (43,518) (1,243,010)
Class B.............. (2,361,585) (1,244,564) (260,690) (28,364) (968,823) (84,447) (196,157)
Class C.............. (48,777) (177,342) 0 (40) 0 0 0
Class Y.............. (923,095) (9,919,535) (1,733,638) (144,008) (6,258,274) (1,535,170) (2,683,813)
Net realized gains
Class A.............. (74,973) (3,780,397) (14,381) (193,506) (91,582) (18,366) (389,919)
Class B.............. (29,464) (1,534,947) (53,890) (13,002) (267,868) (41,464) (72,121)
Class C.............. (462) (218,806) 0 0 0 0 0
Class Y.............. (9,770) (9,607,708) (281,334) (40,003) (1,390,201) (621,078) (807,303)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions
to shareholders..... (10,539,284) (30,309,828) (2,427,123) (955,520) (9,361,349) (2,344,043) (5,392,323)
- --------------------------------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares
sold................. 68,736,367 53,790,896 10,791,856 7,835,359 18,610,162 5,525,743 22,170,579
Net asset value of
shares issued in
reinvestment of
distributions....... 4,945,402 11,089,656 593,123 633,559 2,528,280 549,609 2,139,310
Payment for shares
redeemed............ (26,415,617) (46,410,788) (5,097,696) (3,313,855) (18,024,450) (6,645,328) (12,587,655)
- --------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease)in net
assets resulting
from capital share
transactions........ 47,266,152 18,469,764 6,287,283 5,155,063 3,113,992 (569,976) 11,722,234
- --------------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............. 45,359,388 2,692,446 5,914,972 5,017,548 27,399 (1,326,519) 10,785,887
Net assets
Beginning of period.... 412,638,013 658,207,142 84,120,482 30,973,273 321,319,098 72,588,618 169,163,162
- --------------------------------------------------------------------------------------------------------------------------
End of period.......... $457,997,401 $660,899,588 $90,035,454 $35,990,821 $321,346,497 $71,262,099 $179,949,049
- --------------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income....... $ 171,844 $ 126,621 $ 14,633 $ 5,725 $ 53,368 $ 9,393 $ 34,365
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
54
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Southern State Municipal Bond Funds
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year Ended August 31, 1998
<TABLE>
<CAPTION>
Florida North South
High Income Florida Georgia Maryland Carolina Carolina Virginia
Fund Fund Fund Fund (a) Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ 14,404,889 $ 23,704,595 $ 3,189,698 $ 1,012,744 $ 12,552,875 $ 2,605,376 $ 5,474,175
Net realized gains on
securities............ 1,107,906 12,984,133 798,034 473,737 4,283,776 665,438 1,255,000
Net change in unrealized
gains or losses on
securities............ 7,663,569 2,891,671 1,366,421 252,397 4,838,736 1,416,843 1,986,232
- --------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 23,176,364 39,580,399 5,354,153 1,738,878 21,675,387 4,687,657 8,715,407
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A.............. (9,795,895) (6,351,997) (126,250) (844,382) (497,824) (59,104) (1,390,153)
Class B.............. (3,663,854) (2,070,906) (479,386) (5,731) (1,978,289) (170,455) (307,250)
Class C.............. (16,057) (203,430) 0 0 0 0 0
Class Y.............. (929,083) (15,156,341) (2,584,062) (162,631) (10,076,762) (2,375,817) (3,781,622)
Net realized gains
Class A.............. 0 (2,150,248) 0 0 0 (2,456) 0
Class B.............. 0 (663,807) 0 0 0 (12,377) 0
Class Y.............. 0 (621,250) 0 0 0 (21,740) 0
- --------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders........ (14,404,889) (27,217,979) (3,189,698) (1,012,744) (12,552,875) (2,641,949) (5,479,025)
- --------------------------------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 252,388,854 136,308,252 15,601,172 4,430,552 150,840,381 19,131,622 25,373,266
Net asset value of
shares issued in
reinvestment of
distributions......... 6,665,061 4,934,697 485,610 595,369 1,925,293 267,827 1,324,197
Payment for shares
redeemed.............. (44,930,558) (76,976,941) (10,236,086) (8,247,563) (156,067,198) (13,218,458) (23,745,276)
Net asset value of
shares issued in
aquisition of:
Evergreen Florida Tax
Free Fund............. 0 72,741,942 0 0 0 0 0
Common trust funds..... 0 347,033,202 61,853,254 0 255,143,064 51,591,389 74,432,035
Virtus Virginia
Municipal Bond Fund... 0 0 0 0 0 0 72,717,737
- --------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in net
assets resulting
from capital share
transactions........ 214,123,357 484,041,152 67,703,950 (3,221,642) 251,841,540 57,772,380 150,101,959
- --------------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets.............. 222,894,832 496,403,572 69,868,405 (2,495,508) 260,964,052 59,818,088 153,338,341
Net assets
Beginning of period.... 189,743,181 161,803,570 14,252,077 33,468,781 60,355,046 12,770,530 15,824,821
- --------------------------------------------------------------------------------------------------------------------------
End of period.......... $412,638,013 $658,207,142 $84,120,482 $30,973,273 $321,319,098 $72,588,618 $169,163,162
- --------------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income...... $ 71,519 $ 55,126 $ 3,588 $ 5,491 $ 0 $ 2,439 $ 5,783
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the eleven months ended August 31, 1998. The Fund changed its fiscal
year end from September 30 to August 31, effective August 31, 1998.
See Combined Notes to Financial Statements.
55
<PAGE>
- --------------------------------------------------------------------------------
E V E R G R E E N
Southern State Municipal Bond Funds
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year Ended September 30, 1997
Maryland
Fund (a)
- -------------------------------------------------------------------------------
Operations
Net investment income........................................... $ 1,275,863
Net realized gains on securities................................ 163,436
Net change in unrealized gains or losses on securities.......... 982,703
- -------------------------------------------------------------------------------
Net increase in net assets resulting from operations.......... 2,422,002
- -------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income
Class A........................................................ (1,015,074)
Class Y........................................................ (261,815)
- -------------------------------------------------------------------------------
Total distributions to shareholders............................ (1,276,889)
- -------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold....................................... 2,708,043
Net asset value of shares issued in reinvestment of
distributions.................................................. 770,265
Payment for shares redeemed..................................... (11,327,459)
- -------------------------------------------------------------------------------
Net decrease in net assets resulting from capital share
transactions................................................. (7,849,151)
- -------------------------------------------------------------------------------
Total decrease in net assets................................... (6,704,038)
Net assets
Beginning of year............................................... 40,172,819
- -------------------------------------------------------------------------------
End of year..................................................... $33,468,781
- -------------------------------------------------------------------------------
Undistributed net investment income.............................. $ 0
- -------------------------------------------------------------------------------
(a) On February 28, 1998, in conjunction with the acquisition of the Virtus
Maryland Municipal Bond Fund by the Maryland Fund, shareholders of Invest-
ment Shares and Trust Shares in the Virtus Maryland Municipal Bond Fund be-
came owners of that number of full and fractional shares of Class A and
Class Y, respectively, of the Maryland Fund. See Note 5.
See Combined Notes to Financial Statements.
56
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited)
1. ORGANIZATION
The Evergreen Southern State Municipal Bond Funds consist of Evergreen Florida
High Income Municipal Bond Fund ("Florida High Income Fund"), Evergreen Florida
Municipal Bond Fund ("Florida Fund"), Evergreen Georgia Municipal Bond Fund
("Georgia Fund"), Evergreen Maryland Municipal Bond Fund ("Maryland Fund"), Ev-
ergreen North Carolina Municipal Bond Fund ("North Carolina Fund"), Evergreen
South Carolina Municipal Bond Fund ("South Carolina Fund") and Evergreen Vir-
ginia Municipal Bond Fund ("Virginia Fund"), (collectively, the "Funds"). Each
Fund, except for Florida High Income Fund which is diversified, is a non-diver-
sified series of Evergreen Municipal Trust (the "Trust"), a Delaware business
trust organized on September 18, 1997. The Trust is an open-end management in-
vestment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act").
The Funds offer Class A, Class B, Class C and/or Class Y shares. Class A shares
are sold with a maximum front-end sales charge of 4.75%. Class B and Class C
shares are sold without a front-end sales charge, but pay a higher ongoing dis-
tribution fee than Class A. Class B shares are sold subject to a contingent de-
ferred sales charge that is payable upon redemption and decreases depending on
how long the shares have been held. Class B shares purchased after January 1,
1997 will automatically convert to Class A shares after seven years. Class B
shares purchased prior to January 1, 1997 retain their existing conversion
rights. Class C shares are sold subject to a contingent deferred sales charge
payable on shares redeemed within one year after the month of purchase. Class Y
shares are sold at net asset value and are not subject to contingent deferred
sales charges or distribution fees. Class Y shares are sold only to investment
advisory clients of First Union Corporation ("First Union") and its affiliates,
certain institutional investors or Class Y shareholders of record of certain
other funds managed by First Union and its affiliates as of December 30, 1994.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
A. Valuation of Securities
An independent pricing service values each Fund's municipal bonds at fair value
using a variety of factors which may include yield, liquidity, interest rate
risk, credit quality, coupon, maturity and type of issue. Securities for which
valuations are not available from an independent pricing service may be valued
by brokers which use prices provided by market makers or estimates of market
value obtained from yield data relating to investments or securities with simi-
lar characteristics. Otherwise, securities for which valuations are not avail-
able from an independent pricing service (including restricted securities) are
valued at fair value as determined in good faith according to procedures estab-
lished by the Board of Trustees.
Short-term investments with remaining maturities of 60 days or less are carried
at amortized cost, which approximates market value.
B. When-issued and Delayed Delivery Transactions
The Funds record when-issued or delayed delivery transactions on the trade date
and will segregate with the custodian qualifying assets having a value suffi-
cient to make payment for the securities purchased. Securities purchased on a
when-issued or delayed delivery basis are marked-to-market daily and the Fund
begins earning interest on the settlement date. Losses may arise due to changes
in the market value of the underlying securities or if the counterparty does
not perform under the contract.
C. 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.
57
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements(Unaudited) (continued)
D. 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.
E. Distributions
Distributions from net investment income for the Funds are declared daily and
paid monthly. Distributions from net realized capital gains, if any, are paid
at least annually. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles.
F. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.
G. Organization Expenses
Organization expenses for Florida High Income Fund are amortized to operations
over a five-year period beginning on June 30, 1995 on a straight-line basis. In
the event any of the initial shares of the Fund are redeemed by any holder dur-
ing the five-year amortization period, redemption proceeds will be reduced by
any unamortized organization expenses in the same proportion as the number of
initial shares being redeemed bears to the number of initial shares outstanding
at the time of the redemption.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB"), a subsidiary of First Union, serves as the
investment advisor to each Fund and is paid a management fee that is computed
daily and paid monthly. FUNB is paid at an annual rate of 0.50% of the average
daily net assets of the Florida Fund, Georgia Fund, Maryland Fund, North Caro-
lina Fund, South Carolina Fund and Virginia Fund. FUNB is paid at an annual
rate of 0.60% of the average daily net assets of the Florida High Income Fund.
During the six months ended February 28, 1999, the amount of fees waived by the
investment advisor and the impact on each Fund's expense ratio represented as a
percentage of its average net assets were as follows:
<TABLE>
<CAPTION>
Fees % of Average
Waived Net Assets
-------------------------
<S> <C> <C>
Florida High Income Fund................ $ 272,482 0.13%
Florida Fund............................ 1,242,982 0.38%
Georgia Fund............................ 169,798 0.40%
Maryland Fund........................... 48,806 0.30%
North Carolina Fund..................... 620,614 0.39%
South Carolina Fund..................... 84,786 0.23%
Virginia Fund........................... 345,062 0.40%
</TABLE>
Evergreen Investment Services ("EIS"), a subsidiary of First Union, serves as
the administrator and The BISYS Group, Inc. ("BISYS") serves as the sub-admin-
istrator to the Funds. As administrator, EIS provides the Funds with facili-
ties, equipment and personnel. As sub-administrator to the Funds, BISYS pro-
vides the officers of the Funds. Officers of the Funds and affiliated Trustees
receive no compensation directly from the Funds.
58
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements(Unaudited) (continued)
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 the 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
asset value of the Fund.
During the six months ended February 28, 1999, the Funds paid or accrued the
following amounts for administrative and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
Fee Fee
------------------------------
<S> <C> <C>
Florida High Income Fund...... $44,707 $11,284
Florida Fund.................. 71,019 17,253
Georgia Fund.................. 8,912 2,250
Maryland Fund................. 3,465 871
North Carolina Fund........... 33,227 8,382
South Carolina Fund........... 7,546 1,904
Virginia Fund................. 18,176 4,524
</TABLE>
Evergreen Service Company ("ESC"), an indirect, wholly owned subsidiary of
First Union, serves as the transfer and dividend disbursing agent for the
Funds.
4. DISTRIBUTION PLANS
Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of BISYS, serves
as principal underwriter to the Funds.
Each Fund has adopted Distribution Plans, as allowed by Rule 12b-1 of the 1940
Act, for each class of shares, except Class Y. Distribution plans permit a Fund
to compensate its principal underwriter for costs related to selling shares of
the Fund and for various other services. These costs, which consist primarily
of commissions and service fees to broker-dealers who sell shares of the Fund,
are paid by the Fund through "Distribution Plan expenses". Each class, except
Class Y, currently pays a service fee equal to 0.25% of the average daily net
assets of the class. Class B and Class C also pay distribution fees equal to
0.75% of the average daily net assets of the class. Distribution Plan expenses
are calculated daily and paid monthly.
During the six months ended February 28, 1998, amounts paid or accrued to EDI
pursuant to each Fund's Class A, Class B and Class C Distribution Plans, dis-
tribution fees waived and the impact of the waiver on each Fund's expense ra-
tios were as follows:
<TABLE>
<CAPTION>
Distribution fees accrued Distribution
------------------------- fees waived % of Average
Class A Class B Class C Class A Net Assets
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
Florida High Income
Fund................... $351,818 $551,471 $11,572 0 0
Florida Fund............ 204,164 330,767 47,163 $138,831 0.17%
Georgia Fund............ 4,366 64,874 0 0 0
Maryland Fund........... 31,417 8,160 12 0 0
North Carolina Fund..... 20,439 245,474 0 0 0
South Carolina Fund..... 2,464 23,063 0 0 0
Virginia Fund........... 66,433 50,108 0 0 0
</TABLE>
With respect to Class B and Class C shares, the principal underwriter may pay
distribution fees greater than the allowable annual amounts each Fund is per-
mitted to pay under the Distribution Plans.
Each of the Distribution Plans may be terminated at any time by vote of the In-
dependent Trustees or by vote of a majority of the outstanding voting shares of
the respective class.
5. ACQUISITIONS
On November 24, 1997, as a result of the conversion of common trust funds man-
aged by FUNB, the Florida Fund, Georgia Fund, North Carolina Fund, South Caro-
lina Fund and Virginia Fund each acquired substantially all of the net assets
of comparable common trusts in exchange for Class Y shares of the respective
Funds.
59
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements(Unaudited) (continued)
On January 26, 1998, the Florida Fund acquired substantially all the assets and
assumed certain liabilities of Evergreen Florida Tax Free Fund in exchange for
Class A, Class B and Class C shares of the Florida Fund.
On February 28, 1998, the Maryland Fund acquired substantially all the assets
and assumed certain liabilities of the Virtus Maryland Municipal Bond Fund (the
"Virtus Maryland Fund"). Shareholders of Investment Shares and Trust Shares in
the Virtus Maryland Fund became owners of that number of full and fractional
shares of Class A and Class Y, respectively, of the Maryland Fund having an ag-
gregate net asset value equal to the aggregate net asset value of their shares
of the Virtus Maryland Fund immediately prior to the close of business on Feb-
ruary 28, 1998. The Maryland Fund had no operations prior to the merger. Since
both the Maryland Fund and the Virtus Maryland Fund were similar funds, and the
Virtus Maryland Fund contributed the majority of the net assets and sharehold-
ers, its basis of accounting for assets and liabilities and its operating re-
sults for prior periods are carried forward as the accounting survivor.
Also on February 28, 1998, the Virginia Fund acquired substantially all the as-
sets and assumed certain liabilities of the Virtus Virginia Municipal Bond Fund
in exchange for Class A and Class Y shares of the Virginia Fund.
These conversions and acquisitions were accomplished by a tax-free exchange of
the respective shares of each Fund. The value of net assets acquired, number of
shares issued, unrealized appreciation acquired and the aggregate net assets of
each Fund immediately after the acquisition were as follows:
<TABLE>
<CAPTION>
Value of Net Number of Unrealized Net Assets
Acquiring Fund Acquired Fund Assets Acquired Shares Issued Appreciation After Acqusition
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Florida Fund............ Common trust funds* $347,033,202 34,976,141 $19,854,472 $511,659,015
Florida Fund............ Evergreen Florida Tax Free Fund 72,741,942 7,227,293 4,750,737 594,416,755
Georgia Fund............ Common trust funds* 61,853,254 6,111,899 3,242,590 76,999,760
Maryland Fund........... Virtus Maryland Fund 30,432,133 2,755,733 1,454,944 30,432,133
North Carolina Fund..... Common trust funds* 255,143,064 24,134,747 12,288,139 317,434,059
South Carolina Fund..... Common trust funds* 51,591,389 5,075,749 2,534,925 59,786,494
Virginia Fund........... Common trust funds* 74,432,035 7,286,001 2,846,313 81,525,759
Virginia Fund........... Virtus Virginia Municipal Bond Fund 72,717,737 7,026,874 3,850,319 167,168,666
</TABLE>
- -------
* The Acquiring Fund may have acquired net assets of more than one common trust
fund or portion of a common trust fund.
6. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class A, Class B, Class C and/or Class Y. Transactions in shares
of the Funds were as follows:
Florida High Income Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 2,518,741 $ 28,321,444 15,959,354 $177,761,562
Shares issued in
reinvestment of
distributions............ 314,915 3,543,332 418,144 4,657,114
Shares redeemed........... (1,572,755) (17,687,176) (2,598,089) (28,920,489)
- ------------------------------------------------------------------------------
Net increase.............. 1,260,901 $ 14,177,600 13,779,409 $153,498,187
- ------------------------------------------------------------------------------
Class B
Shares sold............... 2,039,504 $ 22,938,042 4,149,563 $ 46,073,049
Shares issued in
reinvestment of
distributions............ 111,915 1,259,107 168,013 1,869,633
Shares redeemed........... (589,880) (6,636,464) (968,277) (10,761,818)
- ------------------------------------------------------------------------------
Net increase.............. 1,561,539 $ 17,560,685 3,349,299 $ 37,180,864
- ------------------------------------------------------------------------------
</TABLE>
60
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
Florida High Income Fund (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 6, 1998
(commencement of class
Six Months Ended operations) to
February 28, 1999 August 31, 1998
------------------------ -------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class C
Shares sold............... 309,267 $ 3,477,396 96,347 $ 1,073,544
Shares issued in
reinvestment of
distributions............ 2,645 29,726 1,202 13,443
Shares redeemed........... (32,849) (369,092) 0 0
- ------------------------------------------------------------------------------
Net increase.............. 279,063 $ 3,138,030 97,549 $ 1,086,987
==============================================================================
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ -------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class Y
Shares sold............... 1,245,524 $ 13,999,485 2,468,047 $ 27,480,699
Shares issued in
reinvestment of
distributions............ 10,072 113,237 11,222 124,871
Shares redeemed........... (153,309) (1,722,885) (470,406) (5,248,251)
- ------------------------------------------------------------------------------
Net increase.............. 1,102,287 $ 12,389,837 2,008,863 $ 22,357,319
==============================================================================
- ------------------------------------------------------------------------------
Florida Fund
- ------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,168,672 $ 11,784,765 5,507,078 $ 54,971,741
Shares issued in
reinvestment of
distributions............ 370,343 3,690,828 321,220 3,210,363
Shares redeemed........... (1,361,773) (13,677,759) (2,683,254) (26,904,074)
Shares issued in
acquisition of Evergreen
Florida Tax Free Fund.... 0 0 2,499,486 24,653,786
- ------------------------------------------------------------------------------
Net increase.............. 177,242 $ 1,797,834 5,644,530 $ 55,931,816
- ------------------------------------------------------------------------------
Class B
Shares sold............... 611,973 $ 6,153,921 551,773 $ 5,530,645
Shares issued in
reinvestment of
distributions............ 144,677 1,441,023 134,648 1,345,190
Shares redeemed........... (573,687) (5,744,022) (1,191,215) (11,944,047)
Shares issued in
acquisition of Evergreen
Florida Tax Free Fund.... 0 0 3,887,072 39,122,963
- ------------------------------------------------------------------------------
Net increase.............. 182,963 $ 1,850,922 3,382,278 $ 34,054,751
==============================================================================
<CAPTION>
January 26, 1998
(commencement of class
Six Months Ended operations) to
February 28, 1999 August 31, 1998
------------------------ -------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class C
Shares sold............... 127,615 $ 1,286,495 68,683 $ 690,529
Shares issued in
reinvestment of
distributions............ 21,154 210,521 6,601 66,138
Shares redeemed........... (33,278) (334,715) (82,843) (830,261)
Shares issued in
acquisition of Evergreen
Florida Tax Free Fund.... 0 0 890,735 8,965,193
- ------------------------------------------------------------------------------
Net increase.............. 115,491 $ 1,162,301 883,176 $ 8,891,599
==============================================================================
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class Y
Shares sold............... 3,441,619 $ 34,565,715 7,493,445 $ 75,115,337
Shares issued in
reinvestment of
distributions............ 579,801 5,747,284 31,324 313,006
Shares redeemed........... (2,650,509) (26,654,292) (3,720,951) (37,298,559)
Shares issued in
acquisition of Common
trust funds.............. 0 0 34,976,141 347,033,202
- ------------------------------------------------------------------------------
Net increase.............. 1,370,911 $ 13,658,707 38,779,959 $385,162,986
==============================================================================
</TABLE>
61
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
Georgia Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
----------------------- -------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 79,322 $ 820,077 215,335 $ 2,200,069
Shares issued in
reinvestment of
distributions.......... 6,315 65,445 8,134 83,109
Shares redeemed......... (86,396) (895,517) (66,115) (669,683)
- ---------------------------------------------------------------------------
Net increase
(decrease)............. (759) $ (9,995) 157,354 $ 1,613,495
- ---------------------------------------------------------------------------
Class B
Shares sold............. 153,717 $ 1,591,502 284,927 $ 2,895,888
Shares issued in
reinvestment of
distributions.......... 22,897 237,273 33,988 346,944
Shares redeemed......... (79,447) (822,691) (204,318) (2,088,089)
- ---------------------------------------------------------------------------
Net increase............ 97,167 $ 1,006,084 114,597 $ 1,154,743
- ---------------------------------------------------------------------------
Class Y
Shares sold............. 809,047 $ 8,380,277 1,025,227 $ 10,505,215
Shares issued in
reinvestment of
distributions.......... 28,132 290,405 5,439 55,557
Shares redeemed......... (326,061) (3,379,488) (729,756) (7,478,314)
Shares issued in
acquisition of Common
trust funds............ 0 0 6,111,899 61,853,254
- ---------------------------------------------------------------------------
Net increase............ 511,118 $ 5,291,194 6,412,809 $ 64,935,712
- ---------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
Maryland Fund
- -------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Eleven Months Ended Year Ended
February 28, 1999 August 31, 1998 September 30, 1997
----------------------- ------------------------ ---------------------
Shares Amount Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A*
Shares sold............. 203,394 $ 2,270,759 200,179 $ 2,197,755 192,865 $ 2,067,713
Shares issued in
reinvestment of
distributions.......... 50,503 563,540 53,687 590,817 71,862 770,265
Shares redeemed......... (178,237) (1,992,321) (584,040) (6,428,043) (679,110) (7,269,728)
- --------------------------------------------------------------------------------------------------
Net increase
(decrease)............. 75,660 $ 841,978 (330,174) $ (3,639,471) (414,383) $(4,431,750)
- --------------------------------------------------------------------------------------------------
<CAPTION>
March 27, 1998
(commencement of class
Six Months Ended operations) to
February 28, 1999 August 31, 1998
----------------------- ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold............. 126,542 $ 1,414,832 88,301 $ 972,888
Shares issued in
reinvestment of
distributions.......... 2,667 29,730 411 4,552
Shares redeemed......... (7,884) (87,776) 0 0
- --------------------------------------------------------------------------
Net increase............ 121,325 $ 1,356,786 88,712 $ 977,440
- --------------------------------------------------------------------------
<CAPTION>
December 23, 1998
(commencement of class
operations) to
February 28, 1999
-----------------------
Shares Amount
- ------------------------------------------------
<S> <C> <C>
Class C
Shares sold............. 1,400 $ 15,591
Shares issued in
reinvestment of
distributions.......... 4 40
Shares redeemed......... 0 0
- ------------------------------------------------
Net increase............ 1,404 $ 15,631
- ------------------------------------------------
<CAPTION>
Six Months Ended Eleven Months Ended Year Ended
February 28, 1999 August 31, 1998 September 30, 1997
----------------------- ------------------------ ---------------------
Shares Amount Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class Y *
Shares sold............. 370,863 $ 4,134,177 114,329 $ 1,259,909 59,419 $ 640,330
Shares issued in
reinvestment of
distributions.......... 3,623 40,249 0 0 0 0
Shares redeemed......... (110,782) (1,233,758) (167,074) (1,819,520) (380,036) (4,057,731)
- --------------------------------------------------------------------------------------------------
Net increase
(decrease)............. 263,704 $ 2,940,668 (52,745) $ (559,611) (320,617) $(3,417,401)
- --------------------------------------------------------------------------------------------------
</TABLE>
* On February 28, 1998, in conjuction with the acquisition of the Virtus
Maryland Municipal Bond Fund by the Maryland Fund, shareholders of Investment
Shares and Trust Shares in the Virtus Maryland Municipal Bond Fund became
owners of that number of full and fractional shares of Class A and Class Y,
respectively, of the Maryland Fund. See Note 5.
62
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
North Carolina Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 248,756 $ 2,683,517 906,792 $ 9,704,553
Shares issued in
reinvestment of
distributions.......... 30,881 333,381 32,895 351,292
Shares redeemed......... (140,692) (1,519,529) (267,487) (2,855,066)
- ------------------------------------------------------------------------------
Net increase............ 138,945 $ 1,497,369 672,200 $ 7,200,779
- ------------------------------------------------------------------------------
Class B
Shares sold............. 249,225 $ 2,687,509 411,810 $ 4,390,935
Shares issued in
reinvestment of
distributions.......... 85,752 925,793 138,795 1,480,873
Shares redeemed......... (227,028) (2,454,057) (647,645) (6,889,422)
- ------------------------------------------------------------------------------
Net increase
(decrease)............. 107,949 $ 1,159,245 (97,040) $ (1,017,614)
- ------------------------------------------------------------------------------
Class Y
Shares sold............. 1,224,583 $ 13,239,136 12,832,868 $ 136,744,893
Shares issued in
reinvestment of
distributions.......... 118,007 1,269,106 8,699 93,128
Shares redeemed......... (1,299,982) (14,050,864) (13,727,028) (146,322,710)
Shares issued in
acquisition of Common
trust funds............ 0 0 24,134,747 255,143,064
- ------------------------------------------------------------------------------
Net increase............ 42,608 $ 457,378 23,249,286 $ 245,658,375
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
South Carolina Fund
- --------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 43,011 $ 449,953 91,036 $ 940,429
Shares issued in
reinvestment of
distributions.......... 4,104 42,647 3,523 36,197
Shares redeemed......... (13,063) (137,027) (29,261) (298,275)
- ------------------------------------------------------------------------------
Net increase............ 34,052 $ 355,573 65,298 $ 678,351
- ------------------------------------------------------------------------------
Class B
Shares sold............. 61,753 $ 641,195 61,561 $ 634,986
Shares issued in
reinvestment of
distributions.......... 8,635 89,711 12,822 131,600
Shares redeemed......... (38,354) (399,114) (109,281) (1,123,248)
- ------------------------------------------------------------------------------
Net increase
(decrease)............. 32,034 $ 331,792 (34,898) $ (356,662)
- ------------------------------------------------------------------------------
Class Y
Shares sold............. 425,904 $ 4,434,595 1,713,385 $ 17,556,207
Shares issued in
reinvestment of
distributions.......... 40,345 417,251 9,773 100,030
Shares redeemed......... (587,189) (6,109,187) (1,145,988) (11,796,935)
Shares issued in
acquisition of Common
trust funds............ 0 0 5,075,749 51,591,389
- ------------------------------------------------------------------------------
Net increase
(decrease)............. (120,940) $ (1,257,341) 5,652,919 $ 57,450,691
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Virginia Fund
- --------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
------------------------ --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 420,904 $ 4,401,888 532,512 $ 5,479,932
Shares issued in
reinvestment of
distributions.......... 114,107 1,192,129 99,072 1,023,118
Shares redeemed......... (552,640) (5,785,997) (918,424) (9,485,982)
Shares issued in
acquisition of Virtus
Virginia Municipal Bond
Fund................... 0 0 5,187,357 53,681,427
- ------------------------------------------------------------------------------
Net increase
(decrease)............. (17,629) $ (191,980) 4,900,517 $ 50,698,495
- ------------------------------------------------------------------------------
Class B
Shares sold............. 325,317 $ 3,401,356 239,158 $ 2,460,495
Shares issued in
reinvestment of
distributions.......... 19,809 206,869 22,646 233,301
Shares redeemed......... (76,423) (799,708) (73,319) (755,073)
- ------------------------------------------------------------------------------
Net increase............ 268,703 $ 2,808,517 188,485 $ 1,938,723
- ------------------------------------------------------------------------------
</TABLE>
63
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
Virginia Fund (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1999 August 31, 1998
---------------------- ------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class Y
Shares sold................. 1,373,486 $14,367,335 1,691,800 $ 17,432,839
Shares issued in
reinvestment of
distributions.............. 71,161 740,312 6,584 67,778
Shares redeemed............. (573,353) (6,001,950) (1,310,177) (13,504,221)
Shares issued in acquisition
of:
Common trust funds......... 0 0 7,286,001 74,432,035
Virtus Virginia Municipal
Bond Fund................. 0 0 1,839,517 19,036,310
- --------------------------------------------------------------------------------
Net increase................ 871,294 $ 9,105,697 9,513,725 $ 97,464,741
- --------------------------------------------------------------------------------
</TABLE>
7. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the six months ended February 28,
1999:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
-------------------------
<S> <C> <C>
Florida High Income Fund.............. $118,019,040 $ 77,334,017
Florida Fund.......................... 200,314,459 215,919,507
Georgia Fund.......................... 14,308,545 11,379,083
Maryland Fund......................... 11,384,901 6,929,372
North Carolina Fund................... 69,953,700 71,787,642
South Carolina Fund................... 12,387,655 14,583,410
Virginia Fund......................... 39,231,421 32,487,426
</TABLE>
As of August 31, 1998 the following Funds had capital loss carryforwards for
federal income tax purposes as follows:
<TABLE>
<CAPTION>
Expiration
Capital Loss --------------------------------
Carryforward 2001 2003 2004
---------------------------------------------
<S> <C> <C> <C> <C>
Florida High Income Fund.......... $ 172,000 0 $108,000 $ 64,000
Florida Fund...................... 1,899,000 $810,000 0 1,089,000
</TABLE>
Florida Fund's capital loss carryforward was created as a result of the January
26, 1998 acquisition of substantially all the assets and assumption of certain
liabilities of Evergreen Florida Tax Free Fund in exchange for Florida Fund
shares. In accordance with income tax regulations, certain Florida Fund gains
may not be used to offset this capital loss carryforward.
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>
Fee Credits % of Average
Total Received Net Assets
----------------------------------------------------------------
<S> <C> <C>
Florida High Income Fund............... $ 9,800 0.00%
Florida Fund........................... 14,654 0.00%
Georgia Fund........................... 2,451 0.01%
Maryland Fund.......................... 843 0.01%
North Carolina Fund.................... 7,067 0.00%
South Carolina Fund.................... 1,607 0.00%
Virginia Fund.......................... 4,410 0.01%
</TABLE>
64
<PAGE>
[Evergreen Logo Appears Here]
Combined Notes to Financial Statements(Unaudited) (continued)
9. DEFERRED TRUSTEES' FEES
Each Independent Trustee of each Fund may defer any or all compensation related
to performance of their duties as Trustees. The Trustees' deferred balances are
allocated to deferral accounts, which are included in the accrued expenses for
the Fund. The investment performance of the deferral accounts are based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Fund's Trustees' fees and
expenses. 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 AGREEMENTS
Certain Evergreen Funds and State Street Bank and Trust Company ("State
Street") and a group of banks (collectively, the "Banks") entered into a fi-
nancing agreement dated December 22, 1997, as amended on November 20, 1998. Un-
der this agreement, the Banks provided an unsecured credit facility in the ag-
gregate amount of $400 million ($275 million committed and $125 million uncom-
mitted). The credit facility was allocated, under the terms of the financing
agreement, among the Banks. The credit facility was accessed by the Funds for
temporary or emergency purposes only and was subject to each Fund's borrowing
restrictions. Borrowings under this facility bear interest at 0.50% per annum
above the Federal Funds rate. A commitment fee of 0.065% per annum will be in-
curred on the unused portion of the committed facility, which was allocated to
all funds. For its assistance in arranging this financing agreement, the Capi-
tal Market Group of First Union was paid a one-time arrangement fee of $27,500.
State Street serves as administrative agent for the Banks, and as administra-
tive agent is entitled to a fee of $20,000 per annum which is allocated to all
of the funds.
This agreement was amended and renewed on December 22, 1998. The amended fi-
nancing agreement became effective on December 22, 1998 among all of the Ever-
green Funds, State Street and The Bank of New York ("BONY"). Under this agree-
ment, State Street and BONY provide an unsecured credit facility in the aggre-
gate amount of $150 million ($125 million committed and $25 million uncommit-
ted). The remaining terms and conditions of the agreement are unaffected.
During the six months ended February 28, 1999, the Funds had no borrowings un-
der these agreements.
11. CONCENTRATION OF CREDIT RISK
Each Fund invests a substantial portion of its assets in issuers of municipal
debt securities located in a single state, therefore, it may be more affected
by economic and political developments in that state or region than would be a
comparable general tax-exempt mutual fund.
12. 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.
65
<PAGE>
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Capital Preservation and Income Fund
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