<PAGE>
Semiannual Report
as of September 30, 2000
Evergreen
State Municipal Bond Funds
[LOGO OF EVERGREEN FUNDS]
[SEAL]
<PAGE>
Table of Contents
Letter to Shareholders................................. 1
Evergreen Connecticut Municipal
Bond Fund
Fund at a Glance................................... 2
Portfolio Manager Interview........................ 3
Evergreen New Jersey Municipal
Bond Fund
Fund at a Glance................................... 5
Portfolio Manager Interview........................ 6
Evergreen Pennsylvania Municipal
Bond Fund
Fund at a Glance................................... 8
Portfolio Manager Interview........................ 9
Financial Highlights
Evergreen Connecticut Municipal
Bond Fund.......................................... 11
Evergreen New Jersey Municipal
Bond Fund.......................................... 13
Evergreen Pennsylvania Municipal
Bond Fund.......................................... 15
Schedules of Investments
Evergreen Connecticut Municipal
Bond Fund.......................................... 17
Evergreen New Jersey Municipal
Bond Fund.......................................... 20
Evergreen Pennsylvania Municipal
Bond Fund.......................................... 28
Combined Notes to Schedules of
Investments............................................ 42
Statements of Assets and Liabilities................... 43
Statements of Operations............................... 44
Statements of Changes in Net Assets.................... 45
Combined Notes to Financial
Statements............................................. 47
Evergreen Funds
Evergreen Funds is one of the nation's fastest growing investment companies with
more than $80 billion in assets under management.
We offer over 80 mutual funds to choose among and acclaimed service and
operations capabilities, giving investors a broad range of quality investment
products and services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This semiannual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees and expenses, and should be read carefully before
investing or sending money.
Mutual Funds: NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED
Evergreen Distributor, Inc.
Evergreen Funds\SM\ is a service mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
----------------------
November 2000
[PHOTO]
William M. Ennis
President and CEO
Dear Evergreen Shareholders,
We are pleased to provide the Evergreen State Municipal Bond Funds Semiannual
report, which covers the six-month period ended September 30, 2000.
Bond Markets React to Volatile Equity Markets
Over the past year, U.S. bond markets experienced significant turmoil, which was
largely overshadowed by the volatility in the stock market. Bond prices fell and
interest rates rose in the first half of the period as the Federal Reserve Board
increased interest rates in an effort to curtail what they believed was an
overheated economy. Reports that second quarter economic growth might have
heated up again drove the Federal Reserve Board to notch rates up again in May
and caused bond prices to drop further.
Investor demand for bonds is typically closely linked to the performance of the
stock market, but when the equity markets are volatile, investors buy bonds to
preserve gains rather than to generate returns. By some measures, bonds produced
relatively attractive returns in 2000. For example, for the nine-month period
beginning December 31, 1999 through September 30, 2000, the Lehman Brothers
Aggregate Bond Index, which measures 6,600 taxable government investment-grade
corporate and mortgage securities, returned 7.12%. This outperformed the
Standard & Poor's 500 Index return of -1.39% for the same period.
The S&P 500 tracks 500 of the most widely held domestic, large-company stocks,
representing about 70% of the U.S. stock market's total value.
While it appears that the Federal Reserve Board's monetary policy has begun to
ease, we believe that it is too soon to tell. Additionally, we think that the
economy is poised for a slowdown, which may push bond prices higher and interest
rates lower. In this environment, we will maintain a defensive posture and
remain cautiously optimistic about the continued growth of the U.S. economy.
The Value of Diversification
An environment like this year's offers many reasons for building a diversified
portfolio rather than trying to predict the market's movements. Diversification
provides exposure to many different opportunities while reducing the risk of any
single investment or strategy. We encourage you to talk to your financial
advisor to confirm that your investment portfolio is appropriately diversified
and structured to support your long-term investment objectives.
Thank you for your continued investment in Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
President and CEO
Evergreen Investment Company, Inc.
1
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Fund at a Glance as of September 30, 2000
Portfolio
Characteristics
---------------
Total Net Assets $68,846,164
Average Credit Quality AA+
Effective Maturity 11.4 years
Average Duration 6.1 years
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 9/30/2000.
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: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value of an investment will fluctuate so that investors' shares,
when redeemed, may be worth more or less than their original cost. The
performance of each class may vary based on differences in load, fees and
expenses paid by the shareholders investing in each class. Performance includes
the reinvestment of income dividends and capital gain distributions.
Historical performance shown for Class Y prior to its inception is based on the
Fund's predecessor common trust fund's (CTF) performance, adjusted for estimated
mutual fund expenses. The CTF was not registered under the 1940 Act and was not
subject to certain investment restrictions. If the CTF had been registered, its
performance might have been adversely affected. For Classes A and B prior to
their inception, the historical performance shown is based on the performance of
Class Y and has not been adjusted to reflect the effect of each class' 12b-1
fees. These fees are 0.25% for Class A and 1.00% for Class B. Class Y does not
pay a 12b-1 fee. If these fees had been reflected, returns for Classes A and B
would have been lower. The advisor is waiving a portion of its advisory fee. Had
the fee not been waived, returns would have been lower.
Class Y shares are only offered to persons who owned Class Y shares of an
Evergreen Fund on or before 12/31/1994; certain institutional investors; and
investment advisory clients of an investment advisor of an Evergreen Fund (or
the investment advisor's affiliates).
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
The Fund's yield will fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
All data is as of September 30, 2000 and is subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
Portfolio Inception Date: 1/31/1981 Class A Class B Class Y
Class Inception Date 12/30/1997 1/9/1998 11/24/1997
Average Annual Returns*
6 month with sales charge -1.47% -1.94% n/a
6 month w/o sales charge 3.44% 3.06% 3.57%
1 year with sales charge -0.01% -0.86% n/a
1 year w/o sales charge 4.93% 4.14% 5.19%
5 years 3.19% 3.08% 4.46%
10 years 4.59% 4.33% 5.37%
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
30-day SEC Yield 4.21% 3.67% 4.67%
Taxable Equivalent Yield** 6.97% 6.08% 7.73%
6-month income dividends per share $0.13 $0.11 $0.14
*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.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Connecticut Municipal Bond;A Consumer Price Index - US Lehman Brothers Municipals
---------------------------- ------------------------- --------------------------
<S> <C> <C> <C>
9/30/90 9,525 10,000 10,000
9/30/91 10,574 10,339 11,318
9/30/92 11,466 10,648 12,502
9/30/93 12,286 10,934 14,095
9/30/94 12,256 11,258 13,751
9/30/95 13,310 11,545 15,289
9/30/96 13,951 11,891 16,212
9/30/97 15,046 12,148 17,674
9/30/98 16,260 12,329 19,214
9/30/99 15,864 12,653 19,081
9/30/00 16,645 13,095 20,259
</TABLE>
Comparison of a $10,000 investment in Evergreen Connecticut Municipal Bond Fund,
Class A shares2, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses. The
CPI is a commonly used measure of inflation and does not represent an investment
return. It is not possible to invest directly in an index.
2
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Portfolio Manager Interview
Portfolio
Management
-----------------
[PHOTO]
Diane Beaver
Tenure: November 1999
How did the Fund perform?
Evergreen Connecticut Municipal Bond Fund's Class A shares returned 3.44% for
the six-month period ended September 30, 2000. Returns do not reflect the effect
of any applicable sales charges. This compared to the 3.97% return of the Lehman
Brothers Municipal Bond Index and the 3.45% return of the Lehman Brothers
Connecticut Municipal Bond Index for the same period. We attribute the
difference in performance to the Fund's emphasis on income, yield and price
stability versus total return, which is represented by the Lehman Brothers
Municipal Bond Index. Further, unlike a mutual fund, an index is not subject to
expenses, which lower returns.
Municipal bond prices ended the period marginally higher, masking the greater
price movement that took place over the past six months. Prices rose through
most of the spring and summer, as investors became increasingly confident that
economic growth could remain hardy, and inflation, contained. The economy slowed
from the rapid pace it exhibited in late 1999 and early 2000, calming investors'
concerns that it was on a path of overheating, possibly reviving inflation.
Further, economic growth remained solid, and inflation--with the exception of
rising oil prices--stayed low. Limited supply also supported bond prices for
most of the period. The economy's sound health produced higher tax revenues at
both the federal and local levels. Ironically, this created a double-edged sword
for investors. On the positive side, abundant cash flows improved the financial
health of many municipalities, building stronger credits and often prompting
higher ratings. As municipal balance sheets flourished, however, tax-exempt bond
supply faded. In fact, at the national level, new tax-exempt supply was
estimated to have fallen by 20% on a year-to-date, as of September 30, 2000.
Investors were challenged to find bonds that would appropriately diversify their
portfolios and carry the structures that fit their strategies, as an increasing
number of municipal projects were financed through cash flow, rather than bond
issuance. The supply of Connecticut municipal bonds was particularly limited.
Fewer new issues came to market; and, exacerbating the situation, many new bond
deals issued over the past six months were under $10 million in size. Toward the
end of the period, however, several larger general market deals were issued,
creating a bulge in dealer inventories and pushing prices off their highs.
The Fund's investment strategies concentrated on maximizing income and yield,
and enhancing price stability. Specifically, we swapped out of longer-term bonds
with lower coupons, primarily investing proceeds in intermediate-term, higher
coupon bonds. This strategy both reinforced price stability and raised the
average coupon in the Fund to 5.98% on September 30, 2000 from 5.80% on March
31, 2000. The Fund maintained its focus on high quality. With a few exceptions,
higher quality bonds provided the best relative value, in our opinion, since
lower quality bonds offered minimal yield advantage. As of September 30, 2000,
the Fund's average quality was "AA+", its average maturity was 11.4 years and
its duration was 6.1 years. Duration measures a fund's sensitivity to changes in
interest rate changes. Lengthening duration increases interest rate sensitivity
and conversely, shortening duration improves price stability.
3
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Portfolio Manager Interview
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 09/30/2000 portfolio assets)
[GRAPH]
AAA -- 47.0%
AA -- 36.6%
A -- 4.0%
BBB -- 10.7%
Not Rated -- 1.7%
We anticipate relatively few changes in market conditions, as investors head
into the final months of 2000. Heavier supply could push municipal bond rates
slightly higher--and prices modestly lower--but in general, we think rates will
move within a fairly narrow range. Historically, the tax-exempt market has
performed well in October. While developments in the presidential elections may
affect prices, we believe the direction of oil and equity prices probably will
have a greater impact. We will monitor them closely. In this environment, we
intend to continue to focus on bond structure, looking for attractive
opportunities to boost income.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 09/30/2000 portfolio assets)
[GRAPH]
General Obligation - State -- 17.1%
General Obligation - Local -- 14.7%
Hospital -- 14.4%
Special Tax -- 15.3%
Airport -- 6.8%
Housing -- 5.4%
Transportation -- 5.2%
Water & Sewer -- 4.6%
Community Development District -- 1.8%
Other -- 14.7%
4
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Fund at a Glance as of September 30, 2000
Portfolio
Characteristics
---------------
Total Net Assets $209,765,689
Average Credit Quality AA-
Effective Maturity 8.4 years
Average Duration 7.0 years
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 9/30/2000.
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: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value of an investment will fluctuate so that investors' shares,
when redeemed, may be worth more or less than their original cost. The
performance of each class may vary based on differences in load, fees and
expenses paid by the shareholders investing in each class. Performance includes
the reinvestment of income dividends and capital gain distributions.
Historical performance shown for Classes B and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B and Y have not been adjusted to reflect the
effect of each class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Class B. Class Y does not pay a 12b-1 fee. If these fees had been reflected,
returns for Class B would have been lower while returns for Class Y would have
been higher. The advisor is reimbursing a portion of the 12b-1 expense for Class
A. Had the expense not been reimbursed, returns would have been lower. Returns
reflect expense limits previously in effect, without which returns would have
been lower.
Class Y shares are only offered to persons who owned Class Y shares of an
Evergreen Fund on or before 12/31/1994; certain institutional investors; and
investment advisory clients of an investment advisor of an Evergreen Fund (or
the investment advisor's affiliates).
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders. The Fund's yield will fluctuate, and there
can be no guarantee that the Fund will achieve its objective or any particular
tax-exempt yield. Income may be subject to federal alternative minimum tax.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
All data is as of September 30, 2000 and is subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
Portfolio Inception Date: 7/16/1991 Class A Class B Class Y
Class Inception Date 7/16/1991 1/30/1996 2/8/1996
Average Annual Returns*
6 month with sales charge -1.46% -2.04% n/a
6 month w/o sales charge 3.43% 2.96% 3.48%
1 year with sales charge -0.37% -1.32% n/a
1 year w/o sales charge 4.59% 3.65% 4.69%
5 years 3.82% 3.65% 4.93%
Since Portfolio Inception 5.57% 5.66% 6.18%
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
30-day SEC Yield 4.39% 3.69% 4.70%
Taxable Equivalent Yield** 7.27% 6.11% 7.78%
6-month income dividends per share $0.25 $0.21 $0.26
*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.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
New Jersey Municipal Bond;A Consumer Price Index - US Lehman Brothers Municipals
--------------------------- ------------------------- --------------------------
<S> <C> <C> <C>
7/16/91 9,525 10,000 10,000
9/30/91 9,762 10,073 10,264
9/30/92 10,743 10,374 11,337
9/30/93 12,194 10,653 12,781
9/30/94 11,812 10,969 12,469
9/30/95 13,004 11,248 13,864
9/30/96 13,730 11,586 14,702
9/30/97 14,733 11,836 16,027
9/30/98 16,069 12,012 17,424
9/30/99 15,755 12,327 17,303
9/30/00 16,476 12,758 18,371
</TABLE>
Comparison of a $10,000 investment in Evergreen New Jersey Municipal Bond Fund,
Class A shares2, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses. The
CPI is a commonly used measure of inflation and does not represent an investment
return. It is not possible to invest directly in an index.
5
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Portfolio Manager Interview
Portfolio
Management
----------
[PHOTO]
Keith Lowe, CFA
Tenure: November 1999
How did the Fund perform?
Evergreen New Jersey Municipal Bond Fund's Class A shares returned 3.43% for the
six-month period ended September 30, 2000, lagging its benchmark, the Lehman
Brothers Municipal Bond Index which returned 3.97% for the same period. Returns
do not reflect the effect of any applicable sales charges. We attribute the
difference in performance to the Fund's emphasis on income, yield and price
stability versus total return, which is represented by the Lehman Brothers
Muncipal Bond Index. Further, unlike a mutual fund, an index does not incur
expenses, which will lower returns.
Market conditions were favorable for municipal bond holders over most of the
past six months. Economic growth slowed from the potentially excessive pace it
exhibited in late 1999 and early 2000; and inflation--with the exception of oil
prices--remained low. The slower, but still solid rate of growth instilled
optimism in investors that the economy's 10-year expansion could continue
without a dramatic increase in inflation. Economic health also flourished at the
local level. Revenues poured into local tax departments, strengthening municipal
balance sheets and often prompting an improvement in municipal credit ratings.
The downside to prosperity however, was a decline in new tax-exempt supply.
Municipalities had less of a need to issue bonds because of abundant tax
revenues; and as a result, supply dwindled. In New Jersey, specifically, many
bonds that were readily available for investment were from large issuers; and
often portfolios had reached maximum positions in those names. Investors became
challenged to search for bonds that would properly diversify their portfolios
and also provide specific structural characteristics.
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 9/30/2000 portfolio assets)
[GRAPH]
AAA -- 55.3%
AA -- 22.1%
A -- 4.3%
BBB -- 2.4%
BB -- 1.5%
Not Rated -- 14.4%
Our management strategies focused on building yield and income, as well as
reinforcing price stability. We reduced the Fund's positions in bonds with lower
coupons, replacing them with securities with higher coupons. We also selected
bonds with call dates in the 2008-2010 range, and when available, non-callable
bonds. The higher coupons generated more income for the Fund and also improved
price stability. The longer call dates, as well as the non-callable feature
significantly increased the Fund's liquidity. The non-callable feature ensured
that the securities could stay in the portfolio until they either matured, or we
decided to sell them--the issuer does not have the option of "calling them away"
on a pre-determined date, which is the case with most municipal bonds.
Typically, the non-callable feature is highly valued by investors. As of
September 30, 2000, the Fund's average rating was "AA-", its average maturity
was 10.7 years and its duration was 7.0 years. Duration measures a fund's
sensitivity to changes in interest
6
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Portfolio Manager Interview
rates. Lengthening duration increases a fund's sensitivity and conversely,
shortening duration enhances price stability. Moving forward, we expect many of
the positive trends that have been in place over the past few months to
continue. We think economic growth will remain solid and municipal bond supply,
limited. Although we are monitoring the price of oil closely, we think it could
have less of an impact on the overall level of inflation than it has in the
past. We believe the rise in oil prices could trigger a resurgence in the
development and use of alternative energy sources, such as solar energy or
natural gas. We also would not be surprised to see increased exploration efforts
by the United States. In this environment, we intend to continue our focus on
maximizing income and yield, while reinforcing price stability.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 9/30/2000 portfolio assets)
[GRAPH]
Transportation -- 12.3%
Hospital -- 11.8%
Port Authority -- 10.7%
General Obligation - Local -- 10.6%
Community Development District -- 8.5%
Housing -- 7.5%
Education -- 7.5%
Water & Sewer -- 6.8%
General Obligation - State -- 6.0%
Other -- 18.3%
7
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Fund at a Glance as of September 30, 2000
Portfolio
Characteristics
---------------
Total Net Assets $862,524,400
Average Credit Quality AA
Effective Maturity 11.8 years
Average Duration 5.7 years
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 9/30/2000.
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: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value of an investment will fluctuate so that investors' shares,
when redeemed, may be worth more or less than their original cost. The
performance of each class may vary based on differences in load, fees and
expenses paid by the shareholders investing in each class. Performance includes
the reinvestment of income dividends and capital gain distributions.
Historical performance shown for Classes B, C, and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C, and Y have not been adjusted to reflect the
effect of each class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns for Classes B and C would have been lower while returns for
Class Y would have been higher. Returns reflect expense limits previously in
effect, without which returns would have been lower.
Class Y shares are only offered to persons who owned Class Y shares of an
Evergreen Fund on or before 12/31/1994; certain institutional investors; and
investment advisory clients of an investment advisor of an Evergreen Fund (or
the investment advisor's affiliates).
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
The Fund's yield will fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
All data is as of September 30, 2000 and is subject to change.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
------------------------------------------------------------------------------------------
Portfolio Inception Date: 12/27/1990 Class A Class B Class C Class Y
Class Inception Date 12/27/1990 2/1/1993 2/1/1993 11/24/1997
Average Annual Returns*
<S> <C> <C> <C> <C>
6 month with sales charge -1.30% -1.69% 1.31% n/a
6 month w/o sales charge 3.60% 3.31% 3.31% 3.72%
1 year with sales charge -0.52% -0.97% 1.92% n/a
1 year w/o sales charge 4.41% 4.00% 3.91% 4.67%
5 years 3.96% 4.00% 4.31% 5.14%
Since Portfolio Inception 6.30% 6.25% 6.24% 6.91%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
30-day SEC Yield 4.83% 4.32% 4.31% 5.33%
Taxable Equivalent Yield** 8.00% 7.15% 7.14% 8.82%
6-month income
dividends per share $0.29 $0.24 $0.24 $0.30
</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.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Pennsylvania Municipal Bond;A Consumer Price Index - US Lehman Brothers Municipals
----------------------------- ------------------------- --------------------------
<S> <C> <C> <C>
12/27/90 9,525 10,000 10,000
9/30/91 10,653 10,254 10,850
9/30/92 11,850 10,561 11,985
9/30/93 13,646 10,845 13,512
9/30/94 13,077 11,166 13,182
9/30/95 14,226 11,450 14,656
9/30/96 15,027 11,794 15,542
9/30/97 16,397 12,048 16,943
9/30/98 17,700 12,227 18,419
9/30/99 17,383 12,549 18,292
9/30/00 18,149 12,987 19,421
</TABLE>
Comparison of a $10,000 investment in Evergreen Pennsylvania Municipal Bond
Fund, Class A shares/2/, versus a similar investment in the Lehman Brothers
Municipal Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses. The
CPI is a commonly used measure of inflation and does not represent an investment
return. It is not possible to invest directly in an index.
8
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Portfolio Manager Interview
Portfolio
Management
----------
[PHOTO]
Charles Jeanne, CFA
Tenure: November 1999
Evergreen Pennsylvania Municipal Bond Fund's Class A shares returned 3.60% for
the six-month period ended September 30, 2000, lagging its benchmark, the Lehman
Brothers Municipal Bond Index, which returned 3.97% for the same period. The
returns do not reflect the effect of sales charges. We attribute the difference
in performance to the Fund's emphasis on income, yield and price stability,
versus total return, which is measured by the Lehman Brothers Municipal Bond
Index. Further, unlike a mutual fund, an index is not subject to expenses, which
lowers returns.
Municipal bond prices rallied and retreated, before ending the fiscal period
only marginally changed. Generally, the investment environment was positive.
Economic growth slowed from the potentially excessive pace that occurred in late
1999 and early 2000, but still remained solid; and inflation, despite rising oil
prices, stayed well-contained. Investor confidence rose in this atmosphere. The
slowdown calmed the concerns of many investors that the economy could overheat
and possibly reignite inflation. Economic health also was sound at the local
level. Revenues poured into local tax departments, improving municipal balance
sheets and often prompting a boost in credit ratings. Prosperity had a downside
for investors, however. With an abundance of tax revenues to finance projects,
municipalities had less of a need to issue debt. As a result, the supply of new
tax-exempt bonds shrunk, challenging investors to both find names that would
properly diversify their portfolios and carry the structural characteristics
they sought to meet investment objectives. Offerings for Pennsylvania municipal
bonds were particularly limited, which caused the yield advantages provided by
lower-rated credits to be minimal.
Our investment strategies centered on building income and yield, and enhancing
price stability. We emphasized "cushion" bonds, which carry higher coupons and
have limited price movement. Typically, we invested in bonds with coupons in the
5 3/4%-6% range. We added higher yielding bonds--often in the housing
sector--when they met our credit standards and we believed the securities
offered attractive relative value. At the same time, we limited the Fund's
investment in the health care sector because of credit concerns. Another
strategy which helped increase income and yield was "tax loss selling". "Tax
loss selling" enabled the Fund to sell some of its lower yielding bonds and
replace them at higher yields and more attractive prices, after taking into
account the gain or loss of each security. As of September 30, 2000, the Fund's
average quality was "AA", its effective maturity was 11.8 years and its duration
was 5.7 years. Duration measures a Fund's sensitivity to interest rate changes.
Lengthening duration increases sensitivity and conversely, shortening duration
enhances price stability.
9
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Portfolio Manager Interview
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 9/30/2000 portfolio assets)
[GRAPH]
AAA -- 54.4%
AA -- 16.0%
A -- 7.9%
BBB -- 6.2%
Not Rated -- 15.5%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 9/30/2000 portfolio assets)
[GRAPH]
Hospital -- 18.9%
Prerefunded/Escrowed --15.0%
Education -- 11.1%
General Obligation - State -- 8.0%
General Obligation - Local -- 7.7%
Industrial Development -- 7.3%
Water & Sewer -- 5.3%
Housing -- 4.9%
Miscellaneous Revenue -- 4.4%
Transportation -- 3.7%
Other -- 13.7%
We believe many of the trends currently in place may continue in the months
ahead, keeping interest rates in a fairly narrow range. With the economy's
slowdown, we expect the Federal Reserve Board to hold monetary policy steady
until at least the beginning of 2001, to monitor the effects of their prior
interest rate hikes. We are concerned about the high price of oil, however, and
will be watching its movement closely. In this environment, we intend to
continue to emphasize income, yield and price stability. Also, we intend to
limit the Fund's exposure to health care, particularly if the yield advantages
provided by lower-rated credits remain minimal.
10
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 -------------------------
(Unaudited) 2000 1999 1998 (a)
<S> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $ 6.01 $ 6.38 $ 6.38 $ 6.40
------ ------ ------ ------
Income from investment
operations
Net investment income 0.14 0.26 0.26 0.07
Net realized and unrealized
gains or losses on securities 0.06 (0.35) 0.06 (0.02)
------ ------ ------ ------
Total from investment
operations 0.20 (0.09) 0.32 0.05
------ ------ ------ ------
Distributions to shareholders
from
Net investment income (0.13) (0.26) (0.26) (0.07)
Net realized gains 0 (0.02) (0.06) 0
------ ------ ------ ------
Total distributions to
shareholders (0.13) (0.28) (0.32) (0.07)
------ ------ ------ ------
Net asset value, end of period $ 6.08 $ 6.01 $ 6.38 $ 6.38
------ ------ ------ ------
Total return* 3.44% (1.47%) 5.14% 0.77%
Ratios and supplemental data
Net assets, end of period
(thousands) $1,449 $ 744 $ 570 $ 146
Ratios to average net assets
Expenses++ 0.87%+ 0.86% 0.84% 0.86%+
Net investment income 4.67%+ 4.25% 4.04% 4.38%+
Portfolio turnover rate 20% 86% 42% 17%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 -------------------------
(Unaudited) 2000 1999 1998 (b)
<S> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning of
period $ 6.01 $ 6.38 $ 6.38 $ 6.44
------ ------ ------ ------
Income from investment
operations
Net investment income 0.12 0.22 0.21 0.05
Net realized and unrealized
gains or losses on securities 0.06 (0.35) 0.06 (0.06)
------ ------ ------ ------
Total from investment
operations 0.18 (0.13) 0.27 (0.01)
------ ------ ------ ------
Distributions to shareholders
from
Net investment income (0.11) (0.22) (0.21) (0.05)
Net realized gains 0 (0.02) (0.06) 0
------ ------ ------ ------
Total distributions to
shareholders (0.11) (0.24) (0.27) (0.05)
------ ------ ------ ------
Net asset value, end of period $ 6.08 $ 6.01 $ 6.38 $ 6.38
------ ------ ------ ------
Total return* 3.06% (2.21%) 4.35% (0.21%)
Ratios and supplemental data
Net assets, end of period
(thousands) $1,269 $1,375 $1,180 $ 331
Ratios to average net assets
Expenses++ 1.62%+ 1.61% 1.58% 1.61%+
Net investment income 3.92%+ 3.45% 3.25% 3.36%+
Portfolio turnover rate 20% 86% 42% 17%
</TABLE>
(a) For the period from December 30, 1997 (commencement of class operations) to
March 31, 1998.
(b) For the period from January 9, 1998 (commencement of class operations) to
March 31, 1998.
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
11
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended March 31,
Six Months Ended --------------------------
September 30, 2000 1998
(Unaudited) 2000 1999 (a)
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 6.01 $ 6.38 $ 6.37 $ 6.32
------- ------- ------- -------
Income from investment
operations
Net investment income 0.15 0.27 0.28 0.10
Net realized and unrealized
gains or losses on
securities 0.06 (0.35) 0.07 0.05
------- ------- ------- -------
Total from investment
operations 0.21 (0.08) 0.35 0.15
------- ------- ------- -------
Distributions to shareholders
from
Net investment income (0.14) (0.27) (0.28) (0.10)
Net realized gains 0 (0.02) (0.06) 0
------- ------- ------- -------
Total distributions to
shareholders (0.14) (0.29) (0.34) (0.10)
------- ------- ------- -------
Net asset value, end of
period $ 6.08 $ 6.01 $ 6.38 $ 6.37
------- ------- ------- -------
Total return 3.57% (1.22%) 5.56% 2.39%
Ratios and supplemental data
Net assets, end of period
(thousands) $66,128 $70,390 $73,890 $67,675
Ratios to average net assets
Expenses++ 0.62%+ 0.61% 0.58% 0.61%+
Net investment income 4.93%+ 4.47% 4.33% 4.50%+
Portfolio turnover rate 20% 86% 42% 17%
</TABLE>
(a) For the period from November 24, 1997 (commencement of class operations) to
March 31, 1998.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
12
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 ------------------------------------ Year Ended Year Ended
(Unaudited) 2000 1999 1998 1997 (a) August 31, 1996 (b) February 29, 1996
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 10.48 $ 11.16 $ 11.11 $ 10.74 $ 10.75 $ 11.01 $ 10.53
------- ------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.25 0.51 0.51 0.53 0.31 0.28 0.56
Net realized and
unrealized gains or
losses on securities 0.10 (0.66) 0.11 0.46 (0.01) (0.26) 0.48
------- ------- ------- ------- ------- ------- -------
Total from investment
operations 0.35 (0.15) 0.62 0.99 0.30 0.02 1.04
------- ------- ------- ------- ------- ------- -------
Distributions to
shareholders from
Net investment income (0.25) (0.51) (0.51) (0.53) (0.31) (0.28) (0.56)
Net realized gains 0 (0.02) (0.06) (0.09) 0 0 0
------- ------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.25) (0.53) (0.57) (0.62) (0.31) (0.28) (0.56)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 10.58 $ 10.48 $ 11.16 $ 11.11 $ 10.74 $ 10.75 $ 11.01
------- ------- ------- ------- ------- ------- -------
Total return* 3.43% (1.33%) 5.66% 9.34% 2.83% 0.19% 10.08%
Ratios and supplemental
data
Net assets, end of
period (thousands) $27,783 $28,135 $33,657 $31,614 $31,434 $32,377 $41,762
Ratios to average net assets
Expenses++ 0.69%+ 0.56% 0.50% 0.50% 0.44%+ 0.34%+ 0.36%
Net investment income 4.77%+ 4.72% 4.52% 4.77% 5.02%+ 5.08%+ 5.15%
Portfolio turnover rate 12% 55% 40% 37% 15% 0% 4%
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 ------------------------------------ Year Ended Year Ended
(Unaudited) 2000 1999 1998 1997 (a) August 31, 1996 (b) February 29, 1996 (c)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 10.48 $ 11.16 $ 11.11 $ 10.74 $ 10.75 $ 11.01 $ 11.08
------- ------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.20 0.41 0.40 0.43 0.25 0.24 0.05
Net realized and
unrealized gains or
losses on securities 0.11 (0.66) 0.11 0.46 0 (0.26) (0.07)
------- ------- ------- ------- ------- ------- -------
Total from investment
operations 0.31 (0.25) 0.51 0.89 0.25 (0.02) (0.02)
------- ------- ------- ------- ------- ------- -------
Distributions to
shareholders from
Net investment income (0.21) (0.41) (0.40) (0.43) (0.26) (0.24) (0.05)
Net realized gains 0 (0.02) (0.06) (0.09) 0 0 0
------- ------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.21) (0.43) (0.46) (0.52) (0.26) (0.24) (0.05)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 10.58 $ 10.48 $ 11.16 $ 11.11 $ 10.74 $ 10.75 $ 11.01
------- ------- ------- ------- ------- ------- -------
Total return* 2.96% (2.21%) 4.71% 8.35% 2.29% (0.20%) (0.22%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $18,379 $19,582 $20,199 $13,645 $ 7,847 $ 2,709 $ 186
Ratios to average net assets
Expenses++ 1.61%+ 1.47% 1.41% 1.41% 1.36%+ 1.28%+ 0.31%+
Net investment income 3.86%+ 3.81% 3.59% 3.85% 4.07%+ 4.14%+ 5.23%+
Portfolio turnover rate 12% 55% 40% 37% 15% 0% 4%
</TABLE>
(a) For the seven months ended March 31, 1997. The Fund changed its fiscal year
end from August 31 to March 31, effective March 31, 1997.
(b) For the six months ended August 31, 1996. The Fund changed its fiscal year
end from February 28 to August 31, effective August 31, 1996.
(c) For the period from January 30, 1996 (commencement of class operations) to
February 29, 1996.
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
13
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 --------------------------------------- Year Ended Year Ended
(Unaudited) 2000 1999 1998 1997 (a) August 31, 1996 (b) February 29, 1996 (c)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 10.48 $ 11.16 $ 11.11 $ 10.74 $10.75 $11.01 $11.14
-------- -------- -------- -------- ------ ------ ------
Income from investment
operations
Net investment income 0.25 0.52 0.52 0.54 0.32 0.28 0.03
Net realized and
unrealized gains or
losses on securities 0.11 (0.66) 0.11 0.46 (0.01) (0.26) (0.13)
-------- -------- -------- -------- ------ ------ ------
Total from investment
operations 0.36 (0.14) 0.63 1.00 0.31 0.02 (0.10)
-------- -------- -------- -------- ------ ------ ------
Distributions to
shareholders from
Net investment income (0.26) (0.52) (0.52) (0.54) (0.32) (0.28) (0.03)
Net realized gains 0 (0.02) (0.06) (0.09) 0 0 0
-------- -------- -------- -------- ------ ------ ------
Total distributions to
shareholders (0.26) (0.54) (0.58) (0.63) (0.32) (0.28) (0.03)
-------- -------- -------- -------- ------ ------ ------
Net asset value, end of
period $ 10.58 $ 10.48 $ 11.16 $ 11.11 $10.74 $10.75 $11.01
-------- -------- -------- -------- ------ ------ ------
Total return 3.48% (1.23%) 5.76% 9.44% 2.88% 0.20% (0.87%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $163,603 $168,632 $123,419 $105,331 $9,436 $9,076 $ 18
Ratios to average net
assets
Expenses++ 0.60%+ 0.47% 0.41% 0.41% 0.36%+ 0.31%+ 0.31%+
Net investment income 4.86%+ 4.83% 4.61% 4.79% 5.08%+ 5.12%+ 5.28%+
Portfolio turnover rate 12% 55% 40% 37% 15% 0% 4%
</TABLE>
(a) For the seven months ended March 31, 1997. The Fund changed its fiscal year
end from August 31 to March 31, effective March 31, 1997.
(b) For the six months ended August 31, 1996. The Fund changed its fiscal year
end from February 28 to August 31, effective August 31, 1996.
(c) For the period from February 8, 1996 (commencement of class operations) to
February 29, 1996.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
14
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 --------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 10.89 $ 11.66 $ 11.70 $ 11.14 $ 11.15 $ 10.91
------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.28 0.54 0.51 0.55 0.59 0.60
Net realized and
unrealized gains or
losses on securities 0.11 (0.76) 0.10 0.55 (0.01) 0.23
------- ------- ------- ------- ------- -------
Total from investment
operations 0.39 (0.22) 0.61 1.10 0.58 0.83
------- ------- ------- ------- ------- -------
Distributions to
shareholders from
Net investment income (0.29) (0.54) (0.51) (0.54) (0.59) (0.59)
Net realized gains 0 (0.01) (0.14) 0 0 0
------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.29) (0.55) (0.65) (0.54) (0.59) (0.59)
------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 10.99 $ 10.89 $ 11.66 $ 11.70 $ 11.14 $ 11.15
------- ------- ------- ------- ------- -------
Total return* 3.60% (1.86%) 5.36% 10.02% 5.30% 7.66%
Ratios and supplemental
data
Net assets, end of
period (thousands) $34,499 $32,796 $28,646 $24,119 $24,535 $28,710
Ratios to average net
assets
Expenses++ 0.65%+ 0.73% 0.82% 0.76% 0.76% 0.76%
Net investment income 5.10%+ 4.89% 4.36% 4.79% 5.26% 5.29%
Portfolio turnover rate 9% 28% 69% 54% 84% 55%
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 --------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 10.80 $ 11.52 $ 11.55 $ 10.99 $ 11.00 $ 10.81
------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.23 0.45 0.42 0.46 0.49 0.51
Net realized and
unrealized gains or
losses on securities 0.12 (0.70) 0.11 0.54 (0.01) 0.22
------- ------- ------- ------- ------- -------
Total from investment
operations 0.35 (0.25) 0.53 1.00 0.48 0.73
------- ------- ------- ------- ------- -------
Distributions to
shareholders from
Net investment income (0.24) (0.46) (0.42) (0.44) (0.49) (0.54)
Net realized gains 0 (0.01) (0.14) 0 0 0
------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.24) (0.47) (0.56) (0.44) (0.49) (0.54)
------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 10.91 $ 10.80 $ 11.52 $ 11.55 $ 10.99 $ 11.00
Total return* 3.31% (2.23%) 4.68% 9.27% 4.50% 6.84%
------- ------- ------- ------- ------- -------
Ratios and supplemental
data
Net assets, end of
period (thousands) $34,566 $35,334 $37,823 $37,036 $37,215 $37,719
Ratios to average net
assets
Expenses++ 1.40%+ 1.48% 1.58% 1.52% 1.51% 1.48%
Net investment income 4.35%+ 4.11% 3.60% 4.04% 4.50% 4.55%
Portfolio turnover rate 9% 28% 69% 54% 84% 55%
</TABLE>
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
15
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 ---------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $10.82 $11.55 $11.59 $11.02 $11.03 $10.83
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income 0.23 0.45 0.42 0.45 0.47 0.51
Net realized and
unrealized gains or
losses on securities 0.12 (0.71) 0.10 0.57 0.01 0.23
------ ------ ------ ------ ------ ------
Total from investment
operations 0.35 (0.26) 0.52 1.02 0.48 0.74
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income (0.24) (0.46) (0.42) (0.45) (0.49) (0.54)
Net realized gains 0 (0.01) (0.14) 0 0 0
------ ------ ------ ------ ------ ------
Total distributions to
shareholders (0.24) (0.47) (0.56) (0.45) (0.49) (0.54)
------ ------ ------ ------ ------ ------
Net asset value, end of
period $10.93 $10.82 $11.55 $11.59 $11.02 $11.03
------ ------ ------ ------ ------ ------
Total return* 3.31% (2.31%) 4.59% 9.34% 4.49% 6.92%
Ratios and supplemental
data
Net assets, end of
period (thousands) $5,311 $5,726 $6,945 $6,414 $6,830 $9,675
Ratios to average net
assets
Expenses++ 1.40%+ 1.48% 1.58% 1.52% 1.51% 1.48%
Net investment income 4.34%+ 4.11% 3.60% 4.05% 4.52% 4.57%
Portfolio turnover rate 9% 28% 69% 54% 84% 55%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 2000 -----------------------------
(Unaudited) 2000 1999 1998 (a)
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning
of period $ 10.89 $ 11.66 $ 11.70 $ 11.60
-------- -------- -------- --------
Income from investment
operations
Net investment income 0.30 0.57 0.54 0.19
Net realized and
unrealized gains or
losses on securities 0.10 (0.76) 0.10 0.10
-------- -------- -------- --------
Total from investment
operations 0.40 (0.19) 0.64 0.29
-------- -------- -------- --------
Distributions to
shareholders from
Net investment income (0.30) (0.57) (0.54) (0.19)
Net realized gains 0 (0.01) (0.14) 0
-------- -------- -------- --------
Total distributions to
shareholders (0.30) (0.58) (0.68) (0.19)
-------- -------- -------- --------
Net asset value, end of
period $ 10.99 $ 10.89 $ 11.66 $ 11.70
-------- -------- -------- --------
Total return 3.72% (1.62%) 5.63% 2.54%
Ratios and supplemental
data
Net assets, end of period
(thousands) $788,148 $796,576 $181,919 $152,960
Ratios to average net
assets
Expenses++ 0.40%+ 0.47% 0.57% 0.59%+
Net investment income 5.33%+ 5.20% 4.61% 4.75%+
Portfolio turnover rate 9% 28% 69% 54%
</TABLE>
(a) For the period from November 24, 1997 (commencement of class operations) to
March 31, 1998.
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
16
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Schedule of Investments
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 97.8%
Airport - 6.8%
Connecticut Arpt. RB, Bradley Intl. Arpt.,
7.65%, 10/01/2012............................ AAA $4,250,000 $ 4,709,468
-----------
Community Development District - 1.8%
Connecticut Dev. Auth. RB, Mary Wade Home,
Ser. A:
5.60%, 12/01/2007............................ NR 200,000 194,332
5.70%, 12/01/2008............................ NR 100,000 97,009
6.375%, 12/01/2018........................... NR 1,000,000 964,800
-----------
1,256,141
-----------
Continuing Care Retirement Community - 5.5%
Connecticut Dev. Mtge. Auth. RB, Church Homes,
Inc. Proj., 5.80%, 04/01/20.................. BBB 2,000,000 1,681,640
-----------
Connecticut Hlth. & Edl. Facs. RB, Eastern CT
Hlth. Network, Ser. A, 6.375%, 07/01/2016.... AA 2,000,000 2,127,080
-----------
Education - 1.5%
Connecticut Hlth. & Edl. Facs. RB, Kent Sch.
Corp., Ser. B, 5.50%, 07/01/20............... AAA 1,000,000 1,008,320
-----------
General Obligation - Local - 14.7%
Bristol, CT GO, 5.00%, 06/15/2005, (Insd. by
FGIC)........................................ AA 130,000 132,667
Cheshire, CT GO, 5.75%, 08/15/2009............ NR 275,000 288,082
Cmnwlth. of Puerto Rico GO:
5.50%, 07/01/2008, (Insd. by MBIA)........... AAA 205,000 218,973
6.50%, 07/01/2014, (Insd. by MBIA)........... AAA 2,000,000 2,297,780
Guilford, CT GO, 5.00%, 11/15/2007............ NR 525,000 533,379
Hamden, CT GO:
5.375%, 08/15/2010, (Insd. by MBIA).......... AAA 1,000,000 1,038,220
5.40%, 08/15/2011, (Insd. by MBIA)........... AAA 1,275,000 1,318,783
Middletown, CT GO, 6.00%, 04/15/2007.......... AA 1,000,000 1,077,150
Milford, CT GO, 5.20%, 01/15/2013............. AA 500,000 507,225
Montville, CT GO, 5.25%, 12/01/2008........... NR 300,000 314,178
Naugatuck, CT GO, 5.40%, 03/15/2008........... A+ 250,000 260,190
Putnam, CT GO, 5.60%, 11/15/2000, (Insd. by
MBIA)........................................ AAA 385,000 385,666
Wallingford, CT GO:
5.50%, 06/15/2008............................ AA 170,000 179,517
5.60%, 06/15/2009............................ AA 170,000 179,858
Waterbury, CT GO:
6.00%, 02/01/2012............................ AA 645,000 678,353
6.00%, 02/01/2013............................ AA 680,000 711,083
-----------
10,121,104
-----------
General Obligation - State - 17.1%
Cheshire, CT GO, 5.375%, 10/15/2013........... NR 660,000 671,259
Cmnwlth. of Puerto Rico, GO, Pub. Impt.,
5.375%, 07/01/2025........................... A 1,000,000 966,070
Connecticut GO:
6.00%, 11/15/2002............................ AA 500,000 516,050
6.00%, 04/15/2013............................ AA 3,000,000 3,234,660
6.25%, 05/15/2006............................ AA 3,000,000 3,239,690
Ser. A, 5.60%, 11/15/2009.................... AA 2,000,000 2,077,360
Ser. A, 6.00%, 03/01/2006.................... AA 1,000,000 1,065,480
-----------
11,770,569
-----------
</TABLE>
17
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - (continued)
Hospital - 14.5%
Connecticut Hlth. & Edl. Facs. RB:
6.25%, 07/01/2006............................ AAA $1,170,000 $ 1,262,863
Greenwich Hosp. Assn., Ser. A, 5.40%,
07/01/2009.................................. AAA 500,000 516,255
Hosp. for Spl. Care, Ser. B, 5.125%,
07/01/2007.................................. BBB 2,000,000 1,915,860
Hosp. of St. Raphael, Ser. H, 5.00%,
07/01/2006, (Insd. by AMBAC)................ AAA 1,000,000 1,014,400
Lawrence & Mem. Hosp., Ser. D, 4.875%,
07/01/2007.................................. AAA 625,000 626,925
New Britain Gen. Hosp., Ser. B, 5.875%,
07/01/2008, (Insd. by AMBAC)................ AAA 250,000 262,585
5.90%, 07/01/2008, (Insd. by MBIA)........... AAA 1,000,000 1,051,580
6.05%, 07/01/2010, (Insd. by MBIA)........... AAA 250,000 263,282
Stamford Hosp., Ser. F, 5.25%, 07/01/2011.... AAA 1,000,000 1,016,470
Veterans Mem. Med. Ctr., Ser. A, 5.375%,
07/01/2014.................................. AAA 1,000,000 1,005,260
Yale New Haven Hosp., Ser. H, 5.625%,
07/01/2016.................................. AAA 1,000,000 1,011,490
-----------
9,946,970
-----------
Housing - 5.4%
Connecticut HFA RB:
5.70%, 06/15/2020............................ AAA 315,000 314,600
5.75%, 11/15/2021............................ AA 750,000 742,702
6.00%, 11/15/2027............................ AA 425,000 427,950
Ser. A-2, 5.40%, 05/15/2002.................. AA 275,000 277,931
Ser. C-1, 5.75%, 05/15/2005.................. AA 100,000 103,517
Ser. D-1, 5.75%, 11/15/2017.................. AA 550,000 548,768
Ser. E-1, 5.90%, 05/15/2019.................. AA 1,300,000 1,319,578
-----------
3,735,046
-----------
Pre-Refunded - 3.2%
Connecticut GO, Ser. C, 5.875%, 08/15/2009.... AA 200,000 211,210
Connecticut Hlth. & Edl. Facs. RB, Ser. A:
Choate Rosemary Hall, Ser. A, 6.50%,
07/01/2009, (Insd. by MBIA)................. AAA 225,000 241,952
Westminster Sch., Ser. A, 5.50%, 07/01/2016.. AAA 1,500,000 1,502,670
Guam Pwr. Auth. RB, Ser. A, 5.90%, 10/01/2008,
(Insd. by AMBAC)............................. AAA 250,000 268,600
-----------
2,224,432
-----------
Sales Tax - 15.3%
Connecticut Dev. Auth. Spl. Obl. RB, State
General Fund, Ser. A, 5.50%, 05/01/2008,
(Insd. by FGIC).............................. AAA 890,000 930,344
Connecticut Spl. Tax Obl. RB, Trans.
Infrastructure:
Ser. A, 6.00%, 06/01/2006, (Insd. by FGIC)... AAA 1,000,000 1,068,610
Ser. B, 6.50%, 10/01/2010.................... AA- 3,905,000 4,381,371
Ser. C, 6.00%, 10/01/2008.................... AAA 3,800,000 4,123,798
-----------
10,504,123
-----------
</TABLE>
18
<PAGE>
EVERGREEN
Connecticut Municipal Bond Fund
Schedule of Investments(continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - (continued)
Student Loan - 2.2%
Connecticut Higher Ed. Loan Auth. RB, Ser. A:
7.00%, 11/15/2000............................. NR $ 285,000 $ 285,724
Family Ed. Loan Program, Ser. A, 5.375%,
11/15/2008................................... NR 1,205,000 1,213,194
-----------
1,498,918
-----------
Transportation - 5.2%
Cmnwlth. of Puerto Rico Hwy. & Trans. Auth. RB,
Ser. Y, 6.25%, 07/01/2014, (Insd. by MBIA).... AAA 1,425,000 1,602,028
Hartford, CT Parking Sys. RB, 6.40%,
07/01/2020.................................... BBB 2,000,000 2,005,500
-----------
3,607,528
-----------
Water & Sewer - 4.6%
Bristol, CT GO, 5.25%, 06/15/2008.............. AA 355,000 370,045
Cmnwlth. of Puerto Rico, Aqueduct & Swr. Auth.
RB, 5.20%, 07/01/2008, (Insd. by MBIA)........ AAA 1,000,000 1,048,670
Saint Charles Parish, LA PCRB, 7.35%,
11/01/2022.................................... BBB 1,675,000 1,747,243
-----------
3,165,958
-----------
Total Municipal Obligations (cost
$66,281,137)................................ 67,357,297
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 1.7%
MUTUAL FUND SHARES - 1.7%
Evergreen Select Municipal Money Market Fund o (cost
$1,142,633)........................................... 1,142,633 1,142,633
-----------
Total Investments - (cost $67,423,770) - 99.5%.................... 68,499,930
Other Assets and Liabilities - 0.5%............................... 346,234
-----------
Net Assets - 100.0%............................................... $68,846,164
-----------
</TABLE>
See Combined Notes to Schedules of Investments.
19
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 98.0%
Airlines - 1.4%
New Jersey EDA RB, Continental Airlines, Inc.
Proj., 6.625%, 09/15/2012................... BB $3,000,000 $ 3,043,200
------------
Community Development District - 8.4%
New Jersey EDA RB:
1st Mtge., Fellowship Village, Ser. A:
5.20%, 01/01/2009........................... BBB- 530,000 481,282
5.30%, 01/01/2010........................... BBB- 585,000 526,202
1st Mtge., Keswick Pines:
5.00%, 01/01/2002........................... NR 805,000 793,424
5.10%, 01/01/2003........................... NR 845,000 821,839
5.70%, 01/01/2018........................... NR 5,900,000 4,838,767
1st Mtge., Reformed Church, 5.375%,
12/01/2018................................. BBB 1,400,000 1,157,296
1st Mtge., The Evergreens:
6.00%, 10/01/2017........................... NR 680,000 584,630
6.00%, 10/01/2022........................... NR 4,110,000 3,450,591
Dept. of Human Svcs. Ser. A, 5.70%,
07/01/2012................................. A 2,430,000 2,483,266
Franciscan Oaks Proj., 5.60%, 10/01/2012.... NR 1,000,000 900,020
Performing Arts Ctr. Proj. Ser C, 5.50%,
06/15/2013, (Insd. by AMBAC)............... AAA 500,000 511,940
Rutgers State Univ. Civic Ctr., 6.125%,
07/01/2024................................. AAA 55,000 57,055
Trans. Proj. Ser. A, 5.75%, 05/01/2011,
(Insd. by FSA)............................. AAA 1,000,000 1,069,520
------------
17,675,832
------------
Continuing Care Retirement Community - 2.4%
New Jersey Edl. Facs. Auth. RB:
5.125%, 09/01/2010.......................... AAA 2,000,000 2,030,760
6.20%, 07/01/2017, (Insd. by AMBAC)......... AAA 500,000 516,330
6.375%, 07/01/2022.......................... AAA 1,500,000 1,575,885
Princeton Univ. Ser. A, 5.75%, 07/01/2009... AAA 250,000 258,225
Stevens Institute Technology, Ser. I, 5.00%,
07/01/2009................................. A 200,000 199,004
Trenton State College, Ser. B, 5.80%,
07/01/2009, (Insd. by AMBAC)............... AAA 500,000 525,360
------------
5,105,564
------------
Education - 7.4%
Atlantic Cnty., NJ GO, Special Svs.
Vocational Sch.,
5.70%, 08/01/2006, (Insd. by MBIA).......... AAA 300,000 316,239
Franklin Township, NJ Sch. Dist. GO:
5.40%, 07/15/2024, (Insd. by FSA)........... AAA 1,455,000 1,430,003
6.20%, 04/01/2005........................... AA 500,000 533,350
Freehold, NJ Regl. High Sch., GO:
5.60%, 03/01/2012........................... AAA 1,630,000 1,706,203
5.60%, 03/01/2013........................... AAA 1,065,000 1,107,472
Hamilton Township, Atlantic City., NJ Sch.
Dist. GO, 5.875%,12/15/2006, (Insd. by
FGIC)....................................... AAA 1,000,000 1,044,950
</TABLE>
20
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Education - continued
Hunterdon, NJ Central Regl. High Sch. Dist.
GO, 5.65%, 05/01/2014, (Insd. by FSA)....... AAA $1,000,000 $ 1,027,250
Mercer Cnty., NJ Impt. Auth. RB, Spl. Svcs.
Sch. Dist. Ser. A:
5.40%, 12/15/2003........................... AA- 500,000 513,730
5.95%, 12/15/2012........................... AA- 500,000 541,075
Millburn Township, NJ Board of Ed. GO, 5.35%,
07/15/2011.................................. AA 960,000 997,440
New Jersey Higher Ed. Facs. RB, Student Loan
Prog., 5.80%, 06/01/2016.................... AAA 880,000 900,134
No. Brunswick Township, NJ Board of Ed. GO:
6.30%, 02/01/2012........................... AA 150,000 159,794
7.15%, 12/15/2004........................... AA 250,000 274,170
Randolph Township, NJ, Sch. Dist. GO, 6.30%,
03/15/2006, (Insd. by FSA).................. AAA 500,000 540,825
Rutgers St. Univ. RB, Ser. 1, 5.25%,
05/01/2012.................................. AA 500,000 503,825
So. Brunswick Township, NJ, Board of Ed. GO,
6.40%, 08/01/2011, (Insd. by FGIC).......... AAA 1,000,000 1,077,220
Tinton Falls, NJ, Sch. GO:
5.85%, 10/15/2002, (Insd. by MBIA).......... AAA 490,000 503,833
5.85%, 10/15/2004, (Insd. by MBIA).......... AAA 745,000 782,637
Toms River, NJ GO, Board of Ed., Sch. Bond
Reserve Act, 5.75%, 07/15/2019, (Insd. by
FGIC)....................................... AAA 1,095,000 1,160,470
Washington Township, NJ Board of Ed. GO,
7.50%, 04/15/2009........................... AA 130,000 152,767
West Morris, NJ GO, Regl. High Sch. Dist.,
5.875%, 01/15/2001.......................... AA 200,000 200,886
------------
15,474,273
------------
General Obligation - Local - 10.5%
Bergen Cnty., NJ GO:
5.25%, 10/01/2010........................... NR 1,000,000 1,028,900
6.25%, 11/15/2000........................... NR 200,000 200,478
Bergen Cnty., NJ, Util. Auth., Wtr. &
Pollution Control RB, 5.625%,12/15/2004,
(Insd. by FGIC)............................. AAA 500,000 521,130
Branchburg Township, NJ GO, 6.45%,
08/01/2005.................................. NR 160,000 171,651
Bridgewater Township, NJ GO, 6.40%,
07/15/2001.................................. AA 400,000 406,308
Brigantine, NJ GO, 6.35%, 08/01/2004, (Insd.
by MBIA).................................... AAA 500,000 519,460
Cape May Cnty., NJ GO, 5.85%, 04/15/2002,
(Insd. by AMBAC)............................ AAA 500,000 510,400
Cherry Hill Township, NJ GO:
5.375%, 07/01/2021.......................... AAA 1,000,000 993,110
5.50%, 07/01/2013........................... A 500,000 508,310
5.90%, 06/01/2005........................... NR 50,000 52,047
6.00%, 06/01/2006........................... NR 500,000 521,110
Cmnwlth. of Puerto Rico GO, 6.50%,
07/01/2008, (Insd. by MBIA)................. AAA 1,115,000 1,261,879
Eatontown, NJ GO, 6.70%, 10/01/2004.......... NR 250,000 268,063
</TABLE>
21
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - Local - continued
Essex Cnty., NJ Impt. Auth. RB:
5.80%, 11/01/2007........................... AA $ 500,000 $ 529,410
6.65%, 12/01/2000, (Insd. by AMBAC)......... AAA 325,000 326,232
Flemington Raritan, NJ Sch. Dist. GO, 5.70%,
05/01/2006.................................. AA 50,000 52,767
Franklin Township, NJ GO:
5.60%, 11/01/2005........................... AA- 1,355,000 1,406,964
5.90%, 11/01/2008........................... AA- 160,000 167,072
Gloucester Township, NJ GO:
5.45%, 07/15/2007, (Insd. by AMBAC)......... AAA 500,000 523,485
6.375%, 09/15/2004, (Insd. by AMBAC)........ AAA 500,000 516,070
Hunterdon Cnty., NJ GO, 5.50%, 12/01/2002.... NR 500,000 511,660
Kearny, NJ GO, 6.30%, 02/01/2002............. AAA 225,000 230,447
Lakewood Township, NJ Sch. Dist. GO, 6.25%,
02/15/2012, (Insd. by AMBAC)................ AAA 400,000 442,592
Middletown Township, NJ GO, 5.20%,
08/01/2007.................................. AA 335,000 345,073
Montgomery Township, NJ GO, 6.75%,
06/01/2002.................................. NR 200,000 207,286
Morris Cnty., NJ GO, 6.00%, 07/15/2004....... AAA 1,000,000 1,053,130
No. Brunswick Township, NJ GO:
6.00%, 12/01/2008........................... NR 1,000,000 1,049,770
6.125%, 05/15/2004.......................... NR 350,000 364,532
Ocean Cnty, NJ GO:
5.90%, 03/15/2003, (Insd. by MBIA).......... AAA 500,000 516,430
6.375%, 04/15/2003.......................... NR 250,000 261,358
Ser. A, 6.25%, 10/01/2010................... NR 1,000,000 1,037,550
Orange Township, NJ GO, 6.60%, 02/01/2007,
(Insd. by FSA).............................. AAA 500,000 523,260
Passaic Cnty., NJ GO, 5.40%, 12/01/2002,
(Insd. by MBIA)............................. AAA 500,000 510,320
Paterson, NJ GO, 6.20%, 02/15/2002, (Insd. by
FSA)........................................ AAA 500,000 511,335
Sparta Township, NJ GO, 5.80%, 09/01/2023,
(Insd. by MBIA)............................. AAA 1,100,000 1,164,790
Sussex Cnty, NJ GO, 6.00%, 04/01/2002, (Insd.
by AMBAC)................................... AAA 500,000 511,165
Totowa, NJ GO, 7.20%, 01/15/2001............. NR 200,000 201,510
Trenton, NJ GO, 6.55%, 08/15/2009, (Insd. by
MBIA)....................................... AAA 500,000 527,890
Voorhees Township, NJ GO:
5.95%, 07/15/2007........................... AA 370,000 396,518
6.875%, 09/01/2004.......................... NR 200,000 216,224
Winslow Township, NJ GO:
6.10%, 10/01/2002, (Insd. by FGIC).......... AAA 400,000 412,840
6.50%, 10/01/2018, (Insd. by FGIC).......... AAA 500,000 528,615
------------
22,009,141
------------
</TABLE>
22
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - State - 5.9%
New Jersey GO:
4.75%, 03/01/2015........................... AA+ $ 890,000 $ 828,287
6.25%, 08/01/2006........................... AA+ 500,000 520,295
6.60%, 08/01/2021........................... A+ 300,000 307,902
Ser. D, 5.80%, 02/15/2007................... AA+ 500,000 530,825
Ser. E, 6.00%, 07/15/2009................... AA+ 6,500,000 7,068,295
Ser. F, 5.50%, 08/01/2011................... AA+ 3,000,000 3,142,050
------------
12,397,654
------------
Hospital - 11.7%
Monmouth Cnty., NJ, Hlth. Care Facs. Fin.
Auth. RB, Correctional Facs. Monmouth Proj.:
6.40%, 08/01/2008........................... AAA 800,000 828,808
6.40%, 08/01/2009........................... AAA 200,000 207,202
New Jersey Hlth. Care Facs. Fin. Auth. RB:
AHS Hosp. Corp., Ser. A, 6.00%, 07/01/2011,
(Insd. by AMBAC)........................... AAA 1,345,000 1,446,440
Burdette Tomlin Mem. Hosp., 5.60%,
07/01/2019................................. NR 3,825,000 3,652,072
Cummunity Med. Ctr., 4.75%, 07/01/2019...... AAA 500,000 445,140
Hackensack Univ. Medical Ctr., 5.875%,
01/01/2015................................. NR 1,000,000 1,011,800
Meridian Hlth. Sys. Obl. Group, 5.50%,
07/01/2010, (Insd. by FSA)................. AAA 3,750,000 3,916,612
Meridian Hlth. Sys. Obligation Group,
5.625%, 07/01/2011,
(Insd. by FSA)............................. AAA 6,235,000 6,527,546
Robert Wood Johnson Univ. Hosp. Proj.,
5.70%, 07/01/2020.......................... A+ 2,000,000 1,964,920
St. Josephs Hosp. & Med. Ctr., Ser. A,
5.70%, 07/01/2011.......................... AAA 1,000,000 1,040,290
New Jersey Hlth. Care Facs. Fin. RB:
Atlantic City Med. Ctr., Ser. C, 6.30%,
07/01/2001................................. A- 3,365,000 3,397,910
Bridgeton Hosp., 6.00%, 07/01/2013.......... AAA 50,000 53,672
Burlington Cnty. Mem. Hosp. Proj., Ser. B,
6.00%, 07/01/2012.......................... AAA 50,000 53,776
------------
24,546,188
------------
Housing - 7.4%
New Jersey Bldg. Auth. State Bldg. RB:
5.00%, 06/15/2013........................... AA 1,000,000 983,310
6.75%, 06/15/2002........................... AA 100,000 103,657
New Jersey Hsg. & Mtge. Fin. Agcy. MHRB:
Ser. E1:
5.35%, 11/01/2013........................... AAA 3,000,000 3,023,970
5.45%, 11/01/2014........................... AAA 1,000,000 1,007,650
5.70%, 05/01/2020........................... AAA 500,000 504,075
Ser. E2, 5.70%, 11/01/2020.................. AAA 1,000,000 1,008,150
</TABLE>
23
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
New Jersey Hsg. & Mtge. Fin. Agcy. MHRB, Home
Buyer Ser. AA:
5.30%, 10/01/2008, (Insd. by MBIA).......... AAA $3,140,000 $ 3,200,696
5.40%, 10/01/2009, (Insd. by MBIA).......... AAA 4,385,000 4,483,356
New Jersey Hsg. & Mtge., Fin Agcy. MHRB, Ser.
B, 6.05%, 11/01/2017, (Insd. by FSA)........ AAA 750,000 769,440
New Jersey Hsg. Fin. Agcy. GO, Ser. A, 6.70%,
11/01/2004.................................. AA- 400,000 412,608
------------
15,496,912
------------
Lease - 2.5%
Camden Cnty., NJ Imp. Auth. Lease RB:
5.60%, 12/01/2004........................... NR 500,000 515,555
5.625%, 10/01/2015, (Insd. by MBIA)......... AAA 500,000 507,360
Essex Cnty., NJ Impt. Auth. Lease RB,
Correctional Fac. Proj., 5.75%, 10/01/2012,
(Insd. by FGIC)............................. NR 3,090,000 3,275,709
Mercer Cnty., NJ Impt. Auth. RB, Govt.
Leasing, 5.40%, 12/01/2005.................. AA- 900,000 927,675
------------
5,226,299
------------
Port Authority - 10.6%
Delaware River & Bay Auth. RB:
5.40%, 01/01/2016, (Insd. by FGIC).......... AAA 1,000,000 1,001,690
5.70%, 01/01/2019........................... AAA 750,000 767,452
Delaware River Joint Toll Bridge Commission,
PA Bridge RB:
6.00%, 07/01/2002, (Insd. by FGIC).......... AAA 300,000 307,542
6.25%, 07/01/2012........................... AAA 475,000 486,704
Delaware River Port Auth., PA & NJ RB:
5.40%, 01/01/2015, (Insd. by FGIC).......... AAA 2,500,000 2,511,700
5.40%, 01/01/2016, (Insd. by FGIC).......... AAA 1,000,000 1,001,690
Jersey City, NJ GO, Wtr. Ser. A, 5.30%,
10/01/2009, (Insd. by AMBAC)................ AAA 250,000 258,395
Port Auth., NY & NJ RB:
Ser. 78, 6.20%, 10/15/2003.................. AA- 300,000 310,230
Ser. 81, 5.70%, 08/01/2007.................. AA- 50,000 51,300
Ser. 94, 5.60%, 12/01/2009.................. AA- 650,000 673,738
Ser. 108, 6.00%, 07/15/2008................. AA- 7,275,000 7,746,784
Spl. Obl., JFK Intl. Arpt. Terminal, Ser. 6:
5.75%, 12/01/2025........................... AAA 5,000,000 5,031,650
5.90%, 12/01/2017, (Insd. by MBIA).......... AAA 2,000,000 2,060,620
West Windsor Township, NJ Pkg. Auth. RB,
6.10%, 12/01/2012........................... NR 50,000 53,053
------------
22,262,548
------------
Power - 0.2%
Cmnwlth. of Puerto Rico GO, Elec. & Pwr Auth.
RB, Ser. P, 7.00%, 07/01/2021............... AAA 500,000 521,330
------------
</TABLE>
24
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Pre-Refunded - 1.4%
Bayonne, NJ GO, 5.90%, 05/01/2008............ AAA $ 150,000 $ 157,669
Cmnwlth. of Puerto Rico GO, 6.50%,
07/01/2023.................................. AAA 1,000,000 1,089,700
Gloucester Cnty., NJ GO:
6.25%, 02/01/2006, (Insd. by MBIA).......... AAA 300,000 312,606
6.25%, 02/01/2008, (Insd. by MBIA).......... AAA 500,000 521,010
New Jersey Univ. of Medicine & Dentistry RB,
Ser. E:
5.75%, 12/01/2021........................... AA- 400,000 406,260
6.50%, 12/01/2018........................... AA- 500,000 521,565
------------
3,008,810
------------
Public Facilities - 5.2%
Cmnwlth. of Puerto Rico GO, Pub. Bldg. Auth.
RB, Govt. Facs., Ser. A., 6.25%, 07/01/2009,
(Insd. by AMBAC)............................ AAA 250,000 281,160
New Jersey Sports & Exposition Auth. RB, Ser.
A:
5.375%, 09/01/2015.......................... AA 1,000,000 1,002,310
5.75%, 03/01/2010, (Insd. by MBIA).......... AAA 4,085,000 4,369,806
6.00%, 03/01/2002........................... AA 200,000 204,218
6.00%, 03/01/2015, (Insd. by MBIA).......... AAA 1,000,000 1,058,950
6.00%, 03/01/2021........................... AAA 1,000,000 1,010,551
Virgin Islands Pub. Fin. Auth. RB, Ser. A,
5.50%, 10/01/2013........................... BBB- 3,000,000 2,910,600
------------
10,837,595
------------
Resource Recovery - 4.0%
New Jersey Wstwtr. Treatment RB:
Ser. A:
5.25%, 09/01/2012........................... AAA 1,000,000 1,015,490
6.00%, 07/01/2011........................... AA 2,000,000 2,062,614
7.00%, 05/15/2007, (Insd. by MBIA).......... AAA 2,670,000 3,017,687
Ser. C, 6.625%, 05/15/2007.................. AAA 2,000,000 2,215,140
------------
8,310,931
------------
Transportation - 12.2%
Burlington Cnty., NJ GO, Bridge Commission
Sys.:
5.20%, 10/01/2006........................... AA 1,000,000 1,021,720
5.30%, 10/01/2013........................... AA 500,000 503,220
Cmnwlth. of Puerto Rico Hwy. & Trans. Auth.
RB:
Ser. W, 5.50%, 07/01/2015, (Gtd. by IBC &
Insd. by MBIA)............................. AAA 2,300,000 2,404,121
Ser. Z, 6.00%, 07/01/2018, (Insd. by FSA)... AAA 2,000,000 2,172,880
New Jersey Hwy. Auth. RB, Garden State Pkwy.:
6.25%, 01/01/2014........................... AA- 1,500,000 1,555,759
New Jersey Hwy. Auth., RB, Sr. Pkwy., 5.15%,
01/01/2007.................................. AA- 1,000,000 1,025,160
New Jersey Trans. Corp. COP RB, Ser. A:
5.75%, 09/15/2011, (Insd. by AMBAC)......... AAA 1,150,000 1,220,184
6.50%, 10/01/2016, (Insd. by FSA)........... AAA 300,000 327,078
</TABLE>
25
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Transportation - continued
New Jersey Trans. Trust Fund Auth. RB, Ser.
A:
5.625%, 06/15/2013.......................... AA $1,200,000 $ 1,256,580
5.625%, 06/15/2014.......................... AA 1,500,000 1,565,565
5.75%, 06/15/2015........................... AA 1,300,000 1,368,653
6.00%, 12/15/2006, (Insd. by MBIA).......... AAA 3,000,000 3,217,740
6.50%, 06/15/2010, (Insd. by MBIA).......... AAA 1,000,000 1,128,980
New Jersey Turnpike Auth. RB:
Ser. A, 5.75%, 01/01/2018, (Insd. by MBIA).. AAA 3,300,000 3,390,222
Ser. C, 6.50%, 01/01/2016, (Insd. by
MBIA/IBC).................................. AAA 3,000,000 3,362,940
------------
25,520,802
------------
Water & Sewer - 6.8%
Cape May Cnty., NJ GO, 5.75%, 01/01/2016,
(Insd. by MBIA)............................. AAA 500,000 508,045
Cmnwlth. of Puerto Rico Aqueduct & Swr. Auth.
RB, 6.25%, 07/01/2012, (Insd. by MBIA)...... AAA 1,000,000 1,125,190
Essex Cnty., NJ Utils. Auth., Solid Wst. RB,
Ser. A:
5.50%, 04/01/2011, (Insd. by FSA)........... AAA 250,000 264,100
5.60%, 04/01/2016, (Insd. by FSA)........... AAA 250,000 265,300
Gloucester Cnty., NJ GO, 6.50%, 01/01/2021... AA- 500,000 507,550
Gloucester Township, NJ GO, 5.55%,
03/01/2009, (Insd. by AMBAC)................ AAA 1,000,000 1,050,000
New Jersey Wtr. Supply Auth. RB, Wtr. Sys.
Delaware & Raritan Sys., 5.25%, 11/01/2008,
(Insd. by MBIA)............................. AAA 1,000,000 1,023,100
No. Bergen Township, NJ Util. Auth. RB,
5.375%, 12/15/2012, (Insd. by FGIC)......... AAA 1,000,000 1,014,190
No. New Jersey Dist. Wtr. Supply RB, Wanaque
No. Proj., 6.25%, 11/15/2017, (Insd. by
MBIA)....................................... AAA 350,000 362,590
Northwest Bergen Cnty., NJ Util. Auth. Sys.
RB, 6.00%, 07/15/2009, (Insd. by MBIA)...... AAA 1,000,000 1,052,230
Ocean Cnty., NJ Utils. Auth. Wst. Wtr. RB,
Ser. A, 6.60%, 01/01/2011, (Insd. by FGIC).. AAA 200,000 202,976
Ocean Cnty., NJ Utils. Auth. GO, 5.75%,
01/01/2018.................................. NR 500,000 505,260
Ocean Township, NJ Muni. Utils. Auth. RB,
5.20%, 08/01/2005, (Insd. by MBIA).......... AAA 300,000 307,629
Old Bridge Township, NJ Muni. Utils. Auth.
RB:
5.75%, 11/01/2000, (Insd. by FGIC).......... AAA 285,000 285,336
6.25%, 11/01/2016, (Insd. by FGIC).......... AAA 500,000 523,685
Passaic Valley, NJ Swr. Comm. RB, Ser. D,
5.75%, 12/01/2013, (Insd. by AMBAC)......... AAA 500,000 512,600
Secaucus, NJ Muni. Utils. Auth. Swr. RB, Ser.
A, 6.10%, 12/01/2010........................ AA- 500,000 531,695
Somerset Raritan Valley, NJ Sewage Auth. RB,
Ser. E, 6.95%, 07/01/2003................... AA 100,000 106,124
</TABLE>
26
<PAGE>
EVERGREEN
New Jersey Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Water & Sewer - continued
Stafford, NJ Muni. Utils. Auth. Wtr. & Swr.
RB:
6.20%, 06/01/2007............................ AAA $ 500,000 $ 522,347
6.30%, 06/01/2006, (Insd. by FGIC)........... AAA 400,000 405,100
Ser. A, 5.80%, 12/01/2008, (Insd. by FGIC)... AAA 460,000 472,691
Stony Brook Regl. Swr. Auth. NJ RB:
Ser. A, 5.40%, 12/01/2004.................... AA- 400,000 412,148
Ser. B, 5.45%, 12/01/2012.................... AA- 500,000 518,075
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys.
RB, 5.125%, 07/01/2003....................... NR 1,500,000 1,500,645
Warren Township, NJ GO, 6.65%, 12/01/2012..... NR 200,000 212,762
------------
14,191,368
------------
Total Municipal Obligations (cost
$201,882,452).............................. 205,628,447
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
MUTUAL FUND SHARES - 0.8%
Federated Municipal Obligations Fund................... 1,673,000 1,673,000
Federated Tax Free Obligations Fund.................... 3,000 3,000
------------
Total Mutual Fund Shares (cost $1,676,000)........... 1,676,000
------------
Total Investments - (cost $203,558,452) - 98.8%.................... 207,304,447
Other Assets and Liabilities - 1.2%................................ 2,461,242
------------
Net Assets - 100.0%................................................ $209,765,689
------------
</TABLE>
See Combined Notes to Schedules of Investments.
27
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 98.2%
Airport - 1.8%
Allegheny Cnty., PA Arpt. RB:
6.625%, 01/01/2022......................... AAA $ 2,500,000 $ 2,582,875
Pittsburgh Intl. Arpt., 5.75%, 01/01/2012.. AAA 5,500,000 5,726,215
Lehigh Northampton, PA Arpt. Auth. RB,
6.00%, 05/15/2025.......................... NR 3,000,000 3,032,520
Philadelphia, PA Arpt. Pkg. Auth. RB,
5.625%, 09/01/2016......................... AAA 3,695,000 3,738,416
------------
15,080,026
------------
Community Development District - 0.2%
James City Cnty., VA IDA Residential Care
Facs. RB, Williamsburg Landing, Inc.,
6.625%, 03/01/2019......................... NR 1,750,000 1,720,670
------------
Continuing Care Retirement Community - 2.5%
Crawford Cnty., PA Hosp. Auth. RB, Wesbury
United Methodist Community Hosp., 6.125%,
08/15/2019................................. NR 1,000,000 907,070
Montgomery Cnty., PA IDA RB, Retirement-Life
Communities, 5.25%, 11/15/2028............. A- 22,000,000 18,032,740
Philadelphia, PA IDA RB, Simpson House
Proj.:
5.25%, 08/15/2015.......................... BBB+ 1,000,000 834,050
5.375%, 08/15/2020......................... BBB+ 2,200,000 1,794,826
------------
21,568,686
------------
Education - 11.0%
Allegheny Cnty., PA Higher Ed. Bldg. Auth.
RB:
Chatham College, Ser. A, 5.375%,
09/01/2028................................ BBB 6,075,000 5,106,098
Community College, 5.80%, 06/01/2013,
(Insd. by MBIA)........................... AAA 1,000,000 1,022,690
Delaware Cnty., PA College Auth. RB,
Haverford College, 5.75%, 11/15/2025....... AA 1,000,000 1,004,000
Delaware Cnty., PA Univ. Auth. RB, Villanova
Univ.,
5.80%, 08/01/2025.......................... AAA 2,000,000 2,008,320
Latrobe, PA IDA RB, St. Vincent College
Proj.:
5.375%, 05/01/2018......................... NR 2,635,000 2,344,517
5.375%, 05/01/2024......................... NR 5,600,000 4,784,920
Montgomery Cnty., PA Higher Ed. & Hlth.
Auth. RB:
Beaver College, 5.70%, 04/01/2027.......... AA 1,560,000 1,513,762
Philadelphia Geriatric Ctr., Ser. A, 7.25%,
12/01/2024................................ NR 6,000,000 5,605,620
St. Joseph's Univ., 6.40%, 12/15/2006...... AAA 1,665,000 1,750,814
Northampton Cnty., PA Higher Ed. Auth. RB:
Lehigh Univ.:
6.90%, 10/15/2006, (Insd. by MBIA)......... AAA 1,000,000 1,044,750
7.00%, 10/15/2011, (Insd. by MBIA)......... AAA 3,000,000 3,137,280
Moravian College, 5.125%, 07/01/2019....... AA 500,000 459,000
Norwin, PA Sch. Dist. GO:
6.00%, 04/01/2011, (Insd. by FGIC)......... AAA 1,030,000 1,107,981
6.00%, 04/01/2012, (Insd. by FGIC)......... AAA 1,090,000 1,165,712
6.25%, 04/01/2013, (Insd. by FGIC)......... AAA 1,155,000 1,251,350
</TABLE>
28
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Education - continued
Pennsylvania Higher Ed. Facs. Auth. RB:
Ser. A, 6.625%, 08/15/2009, (Insd. by
MBIA)..................................... AAA $ 485,000 $ 510,268
Ser. M, 5.625%, 06/15/2019, (Insd. by
AMBAC).................................... AAA 5,260,000 5,250,427
Bryn Mawr College:
5.40%, 12/01/2009.......................... AAA 2,450,000 2,539,033
5.625%, 12/01/2027......................... AAA 2,000,000 1,975,140
Capital Acquisition, 6.00%, 12/15/2012,
(Insd. by MBIA)........................... AAA 1,610,000 1,718,788
Drexel Univ.:
5.20%, 05/01/2008.......................... AAA 1,155,000 1,183,309
5.20%, 05/01/2009.......................... AAA 2,065,000 2,110,823
Lasalle Univ., 5.625%, 05/01/2017.......... AAA 1,000,000 1,003,310
Philidelphia Univ., 6.25%, 06/01/2024...... AA 2,400,000 2,505,936
State Sys.:
Ser. K, 5.50%, 06/15/2010, (Insd. by
AMBAC).................................... AAA 2,800,000 2,849,504
Ser. N, 5.80%, 06/15/2024, (Insd. by
MBIA)..................................... AAA 3,500,000 3,515,155
Ser. N, 5.875%, 06/15/2021, (Insd. by
MBIA)..................................... AAA 4,000,000 4,043,000
Thomas Jefferson Univ., 5.375%, 07/01/2013,
(Insd. by AMBAC).......................... AAA 3,000,000 3,030,000
Univ. of PA:
Ser. B, 5.55%, 09/01/2009.................. AA 2,725,000 2,799,120
Ser. B, 5.60%, 09/01/2010.................. AA 2,145,000 2,203,280
Ser. B, 5.85%, 09/01/2013.................. AA 3,740,000 3,839,633
Pennsylvania Univ. RB:
5.30%, 08/15/2003.......................... AA- 1,000,000 1,019,960
5.50%, 08/15/2016.......................... AA- 2,535,000 2,534,822
6.15%, 03/01/2005.......................... AA- 3,035,000 3,151,969
6.25%, 03/01/2011.......................... AA- 1,000,000 1,038,110
Philadelphia, PA Hosp. & Higher Ed. Facs.
Auth. RB:
Chestnut Hill College:
5.35%, 10/01/2007.......................... NR 1,565,000 1,510,272
6.00%, 10/01/2029.......................... NR 1,000,000 895,800
Community College, Ser. B, 6.25%,
05/01/2005, (Insd. by MBIA)............... AAA 1,135,000 1,206,176
Union Cnty., PA Higher Ed. Facs. RB,
Bucknell Univ., 4.50%, 04/01/2018, (Insd.
by MBIA)................................... AAA 2,805,000 2,401,837
Univ. of Pittsburgh, PA RB:
Ser. A, 6.125%, 06/01/2021, (Insd. by
MBIA)..................................... AAA 40,000 40,764
Ser. B, 5.90%, 06/01/2003, (Insd. by
MBIA)..................................... AAA 5,000 5,166
Ser. B, 6.10%, 06/01/2005, (Insd. by
MBIA)..................................... AAA 1,145,000 1,192,151
Ser. B, 6.25%, 06/01/2008, (Insd. by
MBIA)..................................... AAA 700,000 730,499
University Capital Projs., 5.125%,
06/01/2022................................ AAA 4,895,000 4,525,134
------------
94,636,200
------------
</TABLE>
29
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Electric Revenue - 1.5%
Indiana Cnty., PA IDA PCRB, PA Elec. Co.
Proj., 5.35%, 11/01/2010, (Insd. by MBIA).. AAA $ 9,600,000 $ 9,916,992
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys.
RB:
5.25%, 07/01/2008.......................... NR 1,835,000 1,811,879
5.25%, 07/01/2009.......................... NR 1,370,000 1,346,326
------------
13,075,197
------------
Escrow - 1.7%
Allegheny Cnty., PA Sanitation Auth. Swr.
RB, 6.80%, 07/01/2003...................... AAA 415,000 430,824
Armstrong, PA Sch. Dist. GO, 7.75%,
12/01/2004................................. AAA 330,000 350,704
Dover Township, PA Swr. Auth. RB, 6.25%,
05/01/2012................................. AAA 15,000 15,810
Hempfield, PA Lancaster Cnty. Sch. Dist. GO:
6.10%, 08/15/2002.......................... AAA 2,405,000 2,475,154
7.10%, 10/15/2005.......................... NR 300,000 300,687
Neshaminy, PA Wtr. Resources Auth. RB,
5.40%, 03/01/2013.......................... NR 1,815,000 1,840,356
Pennsylvania Turnpike Commission, Oil
Franchise Tax RB:
Ser. A, 5.45%, 12/01/2003, (Insd. by
AMBAC).................................... AAA 2,360,000 2,423,319
Ser. A, 5.50%, 12/01/2004, (Insd. by
AMBAC).................................... AAA 2,000,000 2,069,800
Philadelphia, PA Hosp. & Higher Ed. Facs.
Auth. RB, Presbyterian Med. Ctr., 5.80%,
12/01/2001................................. AAA 1,250,000 1,267,837
Philadelphia, PA Hosp. & Higher Ed. Facs.
Auth. RRB, 6.75%, 08/15/2001, (Insd. by
FHA)....................................... NR 100,000 100,012
Philadelphia, PA IDA RB:
Girard Estate Coal Mining Proj., 5.25%,
11/15/2009................................ AA 500,000 515,325
Natl. Board of Med. Examiners Proj.:
6.15%, 05/01/2001.......................... NR 830,000 837,686
6.25%, 05/01/2002.......................... NR 580,000 594,204
Pittsburgh, PA Wtr. & Swr. Sys. RB, 7.25%,
09/01/2014, (Insd. by FGIC)................ NR 1,000,000 1,159,060
------------
14,380,778
------------
General Obligation - Local - 7.6%
Abington, PA Sch. Dist., GO, Ser. AA,
5.625%, 05/15/2020......................... AAA 2,090,000 2,078,798
Allentown, PA GO, 5.65%, 07/15/2010......... AAA 170,000 179,404
Berks Cnty., PA GO:
6.05%, 11/15/2003.......................... AAA 1,000,000 1,042,320
6.10%, 11/15/2004.......................... AAA 2,000,000 2,094,660
Bucks Cnty., PA GO:
Ser. A, 6.10%, 03/01/2003.................. AA 2,000,000 2,071,640
Ser. A, 6.20%, 03/01/2004.................. AA 5,500,000 5,780,830
Central Bucks, PA Sch. Dist. GO:
6.60%, 02/01/2003.......................... NR 175,000 176,270
6.90%, 02/01/2008.......................... NR 3,000,000 3,024,750
</TABLE>
30
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - Local - continued
Chester Cnty., PA GO:
7.00%, 12/15/2011.......................... NR $ 3,000,000 $ 3,063,810
Ser. B, 5.625%, 11/15/2016................. AA 4,290,000 4,482,621
Council Rock, PA Sch. Dist. GO, 6.60%,
03/01/2003................................. AAA 2,000,000 2,016,620
Delaware Valley, PA Regl. Fin. RB, Ser. D,
5.60%, 07/01/2017, (Insd. by AMBAC)........ AAA 2,000,000 2,043,120
Delaware Valley, PA Sch. Dist. GO, Ser. A,
6.50%, 10/01/2001.......................... AAA 200,000 204,022
Elizabethtown, PA Area Sch. Dist. GO,
5.125%, 09/01/2009......................... AAA 3,600,000 3,646,584
Harrisburg, PA Auth. Lease RB, 6.25%,
06/01/2001, (Insd. by FSA)................. AAA 1,000,000 1,012,310
Hatboro-Horsham, PA Sch. Dist. GO, Ser. A,
6.75%, 04/01/2010.......................... NR 2,985,000 3,016,402
Lower Merion Township, PA GO:
5.625%, 08/01/2005......................... AAA 100,000 101,816
5.75%, 08/01/2009.......................... AAA 1,000,000 1,016,630
Montgomery Cnty., PA IDA, Philadelphia Elec.
Co., RB Ser. A, 7.60%, 04/01/2021.......... A 950,000 979,004
North Penn, PA Sch. Dist. GO, Ser. AAA,
6.15%, 09/15/2009.......................... NR 3,550,000 3,660,050
Parkland, PA Sch. Dist. GO:
5.60%, 09/01/2010.......................... AAA 1,535,000 1,583,352
5.65%, 09/01/2011.......................... AAA 2,125,000 2,186,965
5.70%, 09/01/2012.......................... AAA 2,250,000 2,306,295
Pennridge, PA Sch. Dist. GO:
Ser. A, 6.05%, 02/15/2002.................. AAA 1,000,000 1,020,420
Ser. A, 6.15%, 02/15/2003, (Insd. by
AMBAC).................................... AAA 1,000,000 1,020,670
Philadelphia, PA GO, Ser. B, 5.80%,
11/15/2007................................. AAA 875,000 921,393
Philadelphia, PA Sch. Dist. GO, Ser. B,
5.50%, 09/01/2025.......................... AAA 4,000,000 3,868,240
Pleasant Valley, PA Sch. Dist. GO, 5.60%,
11/15/2014, (Insd. by FGIC)................ AAA 1,000,000 1,007,450
Pocono Mtn., PA Sch. Dist. GO, Ser. AA,
6.10%, 10/01/2003, (Insd. by AMBAC)........ AAA 2,000,000 2,043,740
Sto Rox School Dist., PA GO, 5.80%,
06/15/2030................................. AAA 1,500,000 1,510,185
Unionville-Chadds Ford, PA Sch. Dist. GO:
6.65%, 06/01/2004.......................... NR 1,000,000 1,013,200
6.70%, 06/01/2005.......................... NR 1,000,000 1,013,530
Valley View, PA Sch. Dist. GO, Ser. A,
5.375%, 11/15/2010, (Insd. by FGIC)........ NR 2,065,000 2,112,970
Wallenpaupack, PA Area Sch. Dist. GO, Ser.
B, 6.00%, 09/01/2003, (Insd. by FGIC)...... AAA 1,000,000 1,001,090
York Cnty., PA GO, 6.00%, 10/01/2004, (Insd.
by FGIC)................................... AAA 1,000,000 1,019,120
York, PA City Sch. Dist. GO:
5.60%, 03/01/2007, (Insd. by FGIC)......... AAA 35,000 35,656
Prerefunded, 5.60%, 03/01/2007, (Insd. by
FGIC)..................................... AAA 40,000 40,970
------------
65,396,907
------------
</TABLE>
31
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - State - 7.9%
Cmnwlth. of Puerto Rico GO, Ser. D, 7.00%,
07/01/2010, (Insd. by MBIA)................ AAA $ 3,950,000 $ 4,681,224
Pennsylvania Convention Ctr. Auth. RB, Ser.
A, 6.70%, 09/01/2016, (Insd. by FGIC)...... AAA 8,500,000 9,669,005
Pennsylvania GO:
6.00%, 01/15/2015.......................... AAA 5,605,000 5,936,704
6.00%, 01/15/2016.......................... AAA 9,805,000 10,340,843
1st Ser., 6.00%, 01/15/2012................ AA 2,705,000 2,904,278
1st Ser., 6.00%, 01/15/2014................ AA 2,605,000 2,765,077
2nd Ser., 5.50%, 06/15/2010................ AAA 3,000,000 3,095,700
2nd Ser., 5.75%, 10/01/2014................ AA 11,725,000 12,170,550
2nd Ser., 6.00%, 07/01/2005................ AA 25,000 26,401
2nd Ser., 6.25%, 07/01/2010................ AA 5,000,000 5,505,800
2nd Ser., 6.25%, 07/01/2011................ AA 5,060,000 5,580,775
Pennsylvania Univ. RB, Ser. A, 5.00%,
08/15/2022................................. AA- 5,000,000 4,507,450
Pittsburgh, PA Urban Redev. Auth. RB, Ctr.
Triangle Tax Increment, Ser. A, 6.10%,
05/01/2019................................. NR 1,090,000 1,099,200
------------
68,283,007
------------
Hospital - 18.7%
Allegheny Cnty., PA Hosp. Dev. Auth. RB:
Allegheny General Hosp. Proj., 7.25%,
07/01/2003................................ AAA 640,000 664,800
Montefiore Hosp. Assn. of Western PA,
5.80%, 10/01/2003......................... AAA 75,000 76,382
Pittsburgh Mercy Hlth. Sys.:
5.40%, 08/15/2009.......................... AAA 1,865,000 1,927,683
5.50%, 08/15/2010.......................... AAA 1,510,000 1,565,538
5.50%, 08/15/2011.......................... AAA 2,445,000 2,526,858
5.625%, 08/15/2018, (Insd. by AMBAC)....... AAA 2,000,000 2,010,600
5.625%, 08/15/2026......................... AAA 3,870,000 3,856,649
6.45%, 04/01/2001.......................... AAA 200,000 202,048
South Hills Hlth. Sys.:
Ser. A, 5.125%, 05/01/2023................. AAA 3,310,000 2,687,554
Ser. B, 6.625%, 05/01/2020................. NR 1,755,000 1,788,503
Univ. of Pittsburgh Med. Ctr. Hlth. Sys.,
Presbyterian Univ. Hosp.:
6.25%, 11/01/2023.......................... AAA 360,000 372,553
Ser. A, 6.00%, 04/01/2005, (Insd. by
MBIA)..................................... AAA 1,000,000 1,050,990
Ser. A, 6.00%, 11/01/2006.................. AAA 1,000,000 1,043,270
Ser. B, 6.00%, 11/01/2012, (Insd. by
MBIA)..................................... AAA 25,000 25,950
Univ. of Pittsburgh Med. Ctr. Hlth. Sys.,
Ser. B, 5.50%,12/15/2014, (Insd. by
AMBAC).................................... AAA 8,295,000 8,337,636
</TABLE>
32
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Hospital - continued
Allentown, PA Area Hosp. Auth. RB, Sacred
Heart Healthcare Sys.:
Ser. A, 4.75%, 07/01/2008.................. A $ 2,550,000 $ 2,321,596
Ser. A, 5.00%, 07/01/2010.................. A 2,350,000 2,222,936
Berks Cnty., PA Muni. Auth. Hosp. RB:
Healthcare Pooled Financing Proj., 5.00%,
03/01/2028................................ AA- 6,255,000 5,276,718
Reading Hosp. & Med. Ctr. Proj.:
5.70%, 10/01/2014.......................... AAA 2,110,000 2,179,609
Ser. B, 5.60%, 10/01/2006.................. AAA 65,000 67,823
Blair Cnty., PA Hosp. Auth. RB, Altoona
Hosp. Proj., Ser. A, 5.50%, 07/01/2010..... AAA 1,000,000 1,031,130
Bucks Cnty., PA St. Mary's Hosp. Auth. RB,
Catholic Hlth. Initiatives, Ser. A, 5.00%,
12/01/2018................................. AA- 5,000,000 4,450,850
Cmnwlth. of Puerto Rico Indl., Tourist, Ed.,
Med. & Env. Control Facs. RB, Hosp. Auxilio
Mutuo Obl., Group A, 6.25%, 07/01/2024,
(Insd. by MBIA)............................ A 3,250,000 3,380,683
Cmnwlth. of Puerto Rico Pub. Bldgs. Auth.
RB, Gtd. Pub. Ed. & Hlth. Facs., Ser. M,
5.70%, 07/01/2009.......................... A 1,800,000 1,921,176
Columbia Cnty., PA Hosp. Auth. RB, Bloomburg
Hosp. Proj., 5.80%, 06/01/2019............. BBB- 4,755,000 3,961,676
Dauphin Cnty., PA Gen. Auth. Hlth. Sys. RB,
Pinnacle Hlth. Sys. Proj., 5.50%,
05/15/2017, (Insd. by MBIA)................ AAA 1,000,000 984,950
Delaware Cnty., PA Hosp. Auth. RB, Riddle
Mem. Hosp.:
5.25%, 01/01/2016.......................... AAA 5,345,000 5,148,999
5.50%, 01/01/2022.......................... AAA 2,200,000 2,114,552
Geisinger, PA Hlth. Sys. Auth. RB, PA State
Geisinger Hlth. Sys.:
Ser. A, 5.00%, 08/15/2028.................. NR 3,880,000 3,308,360
Ser. A, 5.50%, 08/15/2010.................. NR 1,685,000 1,722,255
Horizon Hosp. Sys. Auth. PA Hosp. RB,
Horizon Hosp. Sys. Inc., 6.35%,
05/15/2026................................. BBB 3,650,000 3,223,498
Lehigh Cnty., PA Gen. Purpose Auth. RB:
Healtheast, Inc., Ser. A, 7.00%,
07/01/2015, (Insd. by MBIA)............... AAA 1,600,000 1,634,880
Lehigh Valley Hosp. Inc., Ser. A, 7.00%,
07/01/2016, (Insd. by MBIA)............... AAA 2,500,000 2,860,050
Lehigh Valley Hosp., Inc., Ser. A, 5.875%,
07/01/2015................................ AAA 2,245,000 2,293,021
Northampton Cnty., PA Hosp. Auth. RB, Easton
Hosp., 7.70%, 01/01/2004................... AAA 830,000 836,383
</TABLE>
33
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Hospital - continued
Pennsylvania Higher Ed. Facs. Auth. RB:
Allegheny Delaware Valley Obl.:
5.875%, 11/15/2021......................... AAA $ 3,550,000 $ 3,534,841
Ser. A, 5.50%, 11/15/2008.................. AAA 3,000,000 3,092,940
Univ. of PA:
Ser. A, 5.70%, 01/01/2011.................. A 1,100,000 1,073,237
Ser. A, 6.00%, 01/01/2003.................. A 2,715,000 2,750,621
Ser. A, 6.00%, 01/01/2004.................. A 3,440,000 3,495,418
Ser. B, 5.50%, 01/01/2009.................. A 1,520,000 1,484,432
Ser. B, 5.75%, 01/01/2017.................. A 4,000,000 3,735,360
Univ. of PA Hlth. Svcs.:
Ser. A, 5.60%, 01/01/2010.................. A 2,525,000 2,467,784
Ser. A, 6.00%, 01/01/2007.................. A 1,000,000 1,013,920
Ser. A, 6.00%, 01/01/2010.................. A 100,000 100,346
Ser. B, 5.70%, 01/01/2011.................. A 4,460,000 4,351,488
Philadelphia, PA Hosp. & Higher Ed. Facs.
Auth. RB:
5.125%, 05/15/2018......................... AAA 8,850,000 8,195,365
Ser. A, 7.00%, 08/15/2017.................. A+ 1,015,000 1,060,797
Children's Hosp. Proj.:
Ser. A, 5.20%, 02/15/2005.................. AA 1,470,000 1,475,042
Ser. A, 6.00%, 02/15/2002.................. AA 3,035,000 3,085,229
Children's Seashore House, Ser. A, 7.00%,
08/15/2022................................ A+ 4,000,000 4,180,480
Jefferson Hlth. Sys.:
Ser. A, 5.125%, 05/15/2011................. AA- 3,395,000 3,220,022
Ser. A, 5.125%, 05/15/2012................. AA- 3,555,000 3,330,964
Ser. A, 5.25%, 05/15/2013.................. AAA 3,045,000 3,022,619
Pottsville, PA Hosp. Auth. RB, Ascension
Hlth. Credit, Ser. A, 6.375%, 11/15/2019... AAA 8,245,000 8,713,563
Sharon, PA Regl. Hlth. Sys. Auth. RB, 5.00%,
12/01/2018................................. AAA 2,000,000 1,815,320
South Fork, PA Muni. Hosp. Auth. RB,
Conemaugh Valley Mem. Hosp., Ser. B,
5.375%, 07/01/2022, (Insd. by MBIA)........ AAA 8,220,000 7,761,406
Westmoreland Cnty., PA IDA RB, Citizens
General Hosp., 5.00%, 07/01/2008........... NR 8,530,000 7,779,701
York Cnty., PA Hosp. Auth. RB, York Hosp.,
5.25%, 07/01/2017, (Insd. by AMBAC)........ AAA 1,805,000 1,721,645
------------
161,540,699
------------
Housing - 4.8%
Allegheny Cnty., PA Redev. Auth. RB, Home
Impt. Loan, Ser. A, 5.70%, 02/01/2007,
(Insd. by FHA)............................. A 5,000 5,023
Allegheny Cnty., PA Res. Fin. Auth. SFHRB:
Ser. I, 5.80%, 05/01/2021.................. NR 3,125,000 3,090,781
Ser. I, 5.90%, 11/01/2032.................. NR 1,355,000 1,339,906
Ser. P, 7.15%, 06/01/2017, (Coll. by
GNMA)..................................... NR 1,180,000 1,196,945
Ser. Y, 6.60%, 11/01/2014, (Coll. by
GNMA)..................................... NR 955,000 968,274
</TABLE>
34
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
Arlington Cnty., VA IDA MHRB, Woodbury Park
Apts., Ser. B, 6.50%, 07/01/2024........... NR $ 1,000,000 $ 943,470
Pennsylvania HFA SFHRB:
5.80%, 10/01/2021.......................... AA+ 1,000,000 988,990
6.40%, 07/01/2012, (Coll. by FNMA)......... AAA 1,300,000 1,343,524
7.30%, 10/01/2017.......................... AA+ 105,000 105,006
Ser. 1991-32, 7.15%, 04/01/2015............ AA+ 3,465,000 3,571,341
Ser. 33, 6.90%, 04/01/2017................. AA+ 1,015,000 1,053,479
Ser. 34A, 6.85%, 04/01/2016, (Insd. by
FHA)...................................... AA+ 2,000,000 2,064,480
Ser. 36, 5.45%, 10/01/2014................. AA+ 700,000 698,775
Ser. 40, 6.80%, 10/01/2015................. AA+ 750,000 779,445
Ser. 50A, 6.00%, 10/01/2013................ AA+ 1,840,000 1,920,058
Ser. 57B, 5.625%, 10/01/2011, (Insd. by
FHA)...................................... AA+ 1,500,000 1,540,770
Ser. 65A, 5.20%, 10/01/2018................ AA+ 5,000,000 4,724,050
Ser. 68A, 5.875%, 04/01/2017............... AA+ 2,465,000 2,503,725
Ser. 68A, 6.05%, 10/01/2028................ AA+ 3,450,000 3,502,578
Ser. 68A, 6.10%, 04/01/2021................ AA+ 2,000,000 2,033,760
Ser. 69A, 6.15%, 10/01/2020, (Insd. by
FHA)...................................... AA+ 5,900,000 6,025,906
Ser. 69A, 6.25%, 04/01/2031, (Insd. by
FHA)...................................... AA+ 1,000,000 1,021,320
------------
41,421,606
------------
Industrial Development Revenue - 7.2%
Allegheny Cnty., PA IDA RB, Env. Impt., USX
Corp.:
5.60%, 09/01/2030.......................... BBB- 10,675,000 9,414,282
Ser. A, 6.70%, 12/01/2020.................. BBB- 2,000,000 2,034,580
Bucks Cnty., PA IDA RB, USX Corp. Proj.,
5.60%, 03/01/2033.......................... BBB 9,825,000 8,634,996
Dauphin Cnty., PA Gen. Auth. RB, Hyatt
Regency Hotel & Conf. Ctr.,
6.00%, 01/01/2010.......................... NR 6,300,000 5,932,458
Delaware Cnty., PA IDA PCRB, Philadelphia
Elec. Co., Ser. A, 7.375%, 04/01/2021...... A 1,350,000 1,389,542
Erie Cnty., PA IDA Env. Impt. RB, Intl.
Paper Co. Proj., Ser. A,
7.625%, 11/01/2018......................... BBB+ 500,000 539,725
Greene Cnty., PA IDA RB, Monongahela Pwr.
Co., Ser. B, 5.10%, 02/01/2012............. A 1,500,000 1,437,075
Northampton Cnty., PA IDA RRB, Strawbridge
Proj., 7.20%, 12/15/2001................... BBB- 735,000 748,715
Pennsylvania Economic Dev. Financing, RB Dr.
Gertrude A. Barber Ctr., Inc., 5.90%,
12/01/2030................................. AA 1,000,000 978,130
Pennsylvania IDA RB, Econ. Dev.:
5.80%, 01/01/2008, (Insd. by AMBAC)........ AAA 2,215,000 2,339,461
5.80%, 07/01/2009.......................... AAA 250,000 265,110
6.00%, 01/01/2005, (Insd. by AMBAC)........ AAA 7,595,000 7,971,180
6.00%, 07/01/2006.......................... AAA 2,000,000 2,121,340
7.00%, 01/01/2006.......................... AAA 2,000,000 2,201,080
Ser. 1994, 6.00%, 01/01/2012............... AAA 7,215,000 7,544,221
</TABLE>
35
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Industrial Development Revenue - continued
Philadelphia, PA Auth. Indl. Dev., RB
American College of Physicians,
6.00%, 06/15/2030.......................... AA- $ 5,500,000 $ 5,543,670
Schuylkill Cnty., PA IDA RB, Variable Pine
Grove Landfill, Inc., 5.10%, 04/01/2009.... BBB 3,800,000 3,388,194
------------
62,483,759
------------
Miscellaneous Revenue - 4.4%
Center City Dist., PA Bus. Impt. Spl. Assmt.
RB:
5.45%, 12/01/2006.......................... AAA 1,085,000 1,125,731
5.55%, 12/01/2007.......................... AAA 1,145,000 1,197,212
5.60%, 12/01/2008, (Insd. by AMBAC)........ AAA 1,210,000 1,264,329
Cmnwlth. of Puerto Rico Muni. Fin. Agy. RB,
Ser. A, 6.00%, 07/01/2011, (Insd. by FSA).. AAA 1,000,000 1,101,580
Dauphin Cnty., PA Gen. Auth. RB, Forum Place
Office & Pkg., Ser. A, 6.00%, 01/15/2025... NR 15,000,000 13,899,150
New Morgan, PA Muni. Auth. RB, Cmnwlth.
Office Proj., Ser. A, 6.50%, 06/01/2025.... NR 2,560,000 2,424,653
Pennsylvania Fin. Auth. RB, Muni. Capital
Impts. Program, 6.60%, 11/01/2009.......... A 5,000,000 5,329,700
Pennsylvania Intergovernmental Cooperative
Auth. Spl. Tax RB, Philadelphia Funding
Program:
5.60%, 06/15/2012, (Insd. by FGIC)......... AAA 3,665,000 3,741,745
5.625%, 06/15/2013, (Insd. by FGIC)........ AAA 3,000,000 3,051,660
Pennsylvania Pub. Sch. Bldg. Auth. RB:
Montgomery Cnty. Community College, Ser. B,
5.60%, 11/01/2005......................... NR 1,260,000 1,312,479
Tuscarora Sch. Dist. Proj., Ser. B, 5.70%,
10/15/2003................................ A 1,500,000 1,544,625
Philadelphia, PA Hosp. & Higher Ed. Facs.
Auth. RB, Community College, Ser. B, 6.25%,
05/01/2006, (Insd. by MBIA)................ AAA 1,205,000 1,290,916
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien,
Ser. A, 5.50%, 10/01/2018.................. BBB- 500,000 471,655
------------
37,755,435
------------
Port Authority - 0.2%
Philadelphia, PA Regl. Port Auth. RB, 6.00%,
09/01/2007................................. AAA 1,900,000 1,957,741
------------
Pre-Refunded - 14.8%
Abington, PA Sch. Dist., GO:
Ser. A, 5.625%, 05/15/2020................. AAA 2,000,000 2,091,640
Ser. A, 5.75%, 05/15/2025.................. AAA 2,000,000 2,102,940
Allegheny Cnty., PA GO:
Ser. C-43, 5.70%, 09/15/2008............... AAA 1,500,000 1,560,750
Ser. C-43, 5.875%, 09/15/2010, (Insd. by
MBIA)..................................... AAA 60,000 62,806
Allentown, PA GO, Impt., 6.90%, 07/15/2011.. NR 1,500,000 1,528,005
Bethlehem, PA Ctr. Sch. Dist. GO, 6.95%,
06/01/2011................................. AAA 250,000 254,290
</TABLE>
36
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Pre-Refunded - continued
Bradford, PA Area Sch. Dist. GO:
5.35%, 10/01/2008.......................... AAA $ 1,000,000 $ 1,032,740
5.40%, 10/01/2009.......................... AAA 1,000,000 1,034,950
5.50%, 10/01/2010.......................... AAA 1,105,000 1,148,515
5.75%, 10/01/2015, (Insd. by FGIC)......... AAA 2,000,000 2,100,880
Bucks Cnty., PA Wtr. & Swr. Auth. RB,
Collection Sewer Sys., 6.50%, 12/01/2012... AAA 2,000,000 2,083,420
Cambria Cnty., PA GO, Ser. A, 6.625%,
08/15/2012, (Insd. by FGIC)................ AAA 4,485,000 4,837,521
Central Bucks, PA Sch. Dist. GO:
Ser. A, 6.90%, 11/15/2013.................. NR 1,000,000 1,085,660
Ser. A, 6.90%, 11/15/2014.................. NR 1,405,000 1,525,352
Cocalico, PA Lancaster Cnty. Sch. Dist. GO,
6.85%, 03/01/2011, (Insd. by MBIA)......... AAA 3,275,000 3,308,503
Conestoga Valley, PA Sch. Dist. GO, Ser. B,
7.10%, 05/01/2011.......................... AAA 2,500,000 2,539,275
Conrad Weiser, PA Area Sch. Dist. GO, 6.85%,
12/15/2014, (Insd. by MBIA)................ AAA 1,500,000 1,629,285
Cornwall & Lebanon, PA Suburban Joint Sch.
Auth. RB, 5.60%, 03/01/2007, (Insd. by
FGIC)...................................... AAA 1,405,000 1,450,311
Crawford Cnty., PA Central Sch. Dist. GO:
5.55%, 02/15/2008, (Insd. by FGIC)......... AAA 1,500,000 1,555,230
5.65%, 02/15/2009, (Insd. by FGIC)......... AAA 2,085,000 2,169,964
Dauphin Cnty., PA GO, 5.45%, 08/01/2007..... AAA 3,000,000 3,072,570
Delaware Cnty., PA College Auth. RB,
Haverford College:
7.00%, 11/15/2005, (Insd. by MBIA)......... AAA 1,000,000 1,023,130
7.25%, 11/15/2010, (Insd. by MBIA)......... AAA 1,250,000 1,279,300
Delaware Cnty., PA GO:
5.50%, 10/01/2015.......................... AA 2,695,000 2,787,554
5.55%, 10/01/2010.......................... AA 1,750,000 1,828,907
Delaware Cnty., PA Univ. Auth. RB, Villanova
Univ., 6.85%, 08/01/2011................... AAA 3,000,000 3,060,630
Downingtown, PA Area Sch. Dist. GO, 7.25%,
04/01/2007................................. AAA 1,700,000 1,700,255
Erie Cnty., PA GO, Ser. B, 6.75%,
09/01/2016................................. AAA 5,000,000 5,106,650
Geisinger, PA Hlth. Sys. Auth. RB, PA State
Geisinger Hlth. Sys.,
Ser. A, 6.00%, 07/01/2006.................. AAA 1,385,000 1,445,825
Haverford Township, PA GO, 6.70%,
12/01/2011................................. NR 750,000 769,958
Lancaster, PA Sch. Dist. GO:
5.60%, 05/15/2007, (Insd. by FGIC)......... AAA 1,000,000 1,034,020
5.80%, 05/15/2009, (Insd. by FGIC)......... AAA 1,585,000 1,649,399
Lehigh Cnty., PA Gen. Purpose Auth. RB, Good
Shepherd Rehab. Hosp.:
7.30%, 11/15/2004.......................... A- 1,700,000 1,785,527
7.50%, 11/15/2021.......................... A- 1,000,000 1,052,480
</TABLE>
37
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Pre-Refunded - continued
Manheim, PA Central Sch. Dist., GO:
5.60%, 05/15/2006.......................... AAA $ 1,085,000 $ 1,121,912
6.10%, 05/15/2014, (Insd. by FGIC)......... AAA 100,000 105,055
Mon Valley, PA Swr. Auth. RB, 6.55%,
11/01/2019,
(Insd. by MBIA)............................ AAA 1,305,000 1,400,304
Montgomery Cnty., PA Higher Ed. & Hlth.
Auth. RB:
Abington Mem. Hosp., Ser. A, 6.40%,
06/01/2002,
(Insd. by AMBAC).......................... AAA 1,000,000 1,013,290
Cnty. Cmnty. College Proj., 6.75%,
11/01/2002................................ NR 1,025,000 1,027,060
Neshaminy, PA Sch. Dist. GO, 6.10%,
02/15/2007................................. AAA 1,000,000 1,029,170
Norristown, PA Area Sch. Dist. GO, 6.90%,
09/01/2011................................. NR 1,000,000 1,022,850
North Wales, PA Wtr. Auth. RB, 6.75%,
11/01/2010,
(Insd. by FGIC)............................ AAA 100,000 108,042
Penn Hills, PA GO, 5.60%, 12/01/2005, (Insd.
by AMBAC).................................. AAA 1,000,000 1,023,280
Pennsylvania Fin. Auth. Community College
RB, Beaver Cnty. Proj., Ser. A, 6.00%,
12/01/2014................................. AAA 1,500,000 1,580,535
Pennsylvania GO, 6.50%, 11/15/2010.......... AAA 2,500,000 2,593,800
Pennsylvania Higher Ed. Facs. Auth. RB:
Ser. E, 7.00%, 06/15/2011.................. AAA 2,000,000 2,036,400
Thomas Jefferson Univ., Ser. A,
Prerefunded, 6.625%, 08/15/2009........... NR 1,115,000 1,176,191
Pennsylvania Intergovernmental Cooperative
Auth. Spl. Tax RB, Philadelphia Funding
Program, 6.75%, 06/15/2021,
(Insd. by FGIC)............................ AAA 1,650,000 1,797,857
Pennsylvania Pub. Sch. Bldg. Auth. RB,
Harrisburg Area Community College, Ser. D,
6.75%, 04/01/2011,
(Insd. by MBIA)............................ AAA 2,400,000 2,479,176
Pennsylvania Univ. RB:
6.60%, 07/01/2002.......................... NR 1,000,000 1,034,910
7.00%, 07/01/2016.......................... NR 4,000,000 4,151,360
Philadelphia, PA GO, Ser. B, 5.80%,
11/15/2007................................. AAA 1,440,000 1,529,755
Philadelphia, PA Hosp. & Higher Ed. Facs.
Auth. RB, Children's Hosp. Proj., Ser. A,
6.25%, 02/15/2005.......................... NR 1,500,000 1,563,330
Philadelphia, PA Muni. Auth. RB, Justice
Lease, Ser. B, 7.10%, 11/15/2011........... AAA 2,000,000 2,097,640
Pittsburgh, PA GO, Ser. D, 6.125%,
09/01/2017,
(Insd. by AMBAC)........................... AAA 25,000 26,217
Pittsburgh, PA Wtr. & Swr. Sys. RB:
1st Lien, Ser. A, 5.40%, 09/01/2012, (Insd.
by FGIC).................................. AAA 2,845,000 2,942,868
1st Lien, Ser. A, 5.50%, 09/01/2013, (Insd.
by FGIC).................................. AAA 2,715,000 2,820,234
Schuylkill Valley, PA Sch. Dist. GO:
5.55%, 04/15/2007, (Insd. by MBIA)......... AAA 1,110,000 1,136,895
5.65%, 04/15/2008, (Insd. by MBIA)......... AAA 1,185,000 1,216,533
</TABLE>
38
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Pre-Refunded - continued
Scranton-Lackwanna, PA Hlth. & Welfare Auth.
RB, Univ. of Scranton Proj., Ser. A, 6.15%,
03/01/2003................................. A- $ 150,000 $ 152,685
Seneca Valley, PA Sch. Dist. GO, 5.85%,
02/15/2015, (Insd. by FGIC)................ AAA 105,000 110,624
Solanco, PA Sch. Dist. GO, 5.90%,
02/15/2009................................. AAA 3,450,000 3,591,899
Southeastern, PA Trans. Auth. Spl. RB:
Ser. A, 5.625%, 03/01/2007, (Insd. by
FGIC)..................................... AAA 3,275,000 3,433,248
Ser. A, 5.75%, 03/01/2008.................. AAA 1,290,000 1,358,718
Stroudsburg, PA Area Sch. Dist. GO, 5.65%,
10/01/2009................................. AAA 2,405,000 2,515,654
Unionville-Chadds Ford, PA Sch. Dist. GO,
5.80%, 06/01/2013.......................... NR 1,000,000 1,031,050
Univ. of Pittsburgh RB:
Ser. B, 6.10%, 06/01/2005, (Insd. by
MBIA)..................................... AAA 2,120,000 2,213,958
Ser. B, 6.25%, 06/01/2008, (Insd. by
MBIA)..................................... AAA 1,300,000 1,360,723
Upper Merion, PA GO, 6.90%, 09/01/2016...... NR 2,910,000 2,975,446
Washington Cnty., PA Hosp. Auth. RB,
Shadyside Hosp. Proj., 5.875%, 12/15/2004.. AAA 1,300,000 1,361,243
West Chester, PA Area Sch. Dist. GO:
6.20%, 09/01/2012.......................... NR 2,195,000 2,246,451
Ser. A, 6.70%, 01/15/2011.................. NR 1,000,000 1,006,570
West Mifflin, PA Muni. Sanitation Swr. Auth.
RB:
5.70%, 08/01/2015, (Insd. by FGIC)......... AAA 1,000,000 1,052,560
Ser. A, 5.80%, 08/01/2024.................. AAA 2,500,000 2,644,050
------------
127,787,785
------------
Public Facilities - 0.6%
Pittsburgh & Allegheny Cnty., PA Pub.
Auditoruim RB, Regl. Asset Dist. Sales Tax,
5.25%, 02/01/2031.......................... AAA 4,500,000 4,172,355
Virgin Islands Pub. Fin. Auth. RB, 5.50%,
10/01/2013................................. BBB- 1,000,000 970,200
------------
5,142,555
------------
Resource Recovery - 0.9%
Lancaster, PA Solid Wst. Mgmt. Auth. RB,
Resource Recovery Sys., Ser. A, 6.30%,
12/15/2000................................. BBB 1,000,000 1,000,970
Pennsylvania Econ. Dev. Financing Auth.
Resource Recovery RB, Colver Proj.:
Ser. D, 7.05%, 12/01/2010.................. BBB- 1,000,000 1,022,380
Ser. D, 7.125%, 12/01/2015................. BBB- 3,700,000 3,790,872
Ser. D, 7.15%, 12/01/2018.................. BBB- 2,300,000 2,348,990
------------
8,163,212
------------
Sales Tax - 1.6%
Pennsylvania Convention Ctr. RRB, Ser. A,
6.75%, 09/01/2019, (Insd. by MBIA)......... AAA 12,295,000 13,236,428
Virgin Islands Pub. Fin. Auth. RB, Ser. A,
5.50%, 10/01/2022.......................... BBB- 1,000,000 931,280
------------
14,167,708
------------
</TABLE>
39
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Special Tax - 1.7%
Allegheny Cnty., PA Redev. Auth. Tax RB,
Waterfront Proj.:
6.30%, 12/15/2018.......................... NR $ 2,015,000 $ 2,065,576
6.40%, 12/15/2018.......................... NR 4,030,000 4,131,959
Delaware Valley, PA Regl. Fin. RB, Ser. A,
5.50%, 08/01/2028.......................... AAA 5,650,000 5,511,236
Virgin Islands Pub. Fin. Auth. RB:
Ser. A, 5.20%, 10/01/2009.................. BBB- 1,000,000 978,220
Ser. A, 5.625%, 10/01/2025................. BBB- 2,000,000 1,881,360
------------
14,568,351
------------
Student Loan - 0.2%
Pennsylvania Higher Ed. Facs. Auth. RB,
6.80%, 12/01/2000.......................... AAA 1,720,000 1,726,244
------------
Transportation - 3.7%
Allegheny Cnty., PA Port Auth. RB:
6.25%, 03/01/2017.......................... AAA 5,000,000 5,317,950
6.375%, 03/01/2014......................... AAA 5,500,000 5,971,625
6.375%, 03/01/2015......................... AAA 4,750,000 5,135,368
Pennsylvania Turnpike Commission RB:
Ser. L, 6.45%, 06/01/2003, (Insd. by
AMBAC).................................... AAA 1,000,000 1,031,630
Ser. L, 6.60%, 06/01/2005, (Insd. by
AMBAC).................................... AAA 1,000,000 1,032,610
Ser. O, 5.45%, 12/01/2003, (Insd. by
FGIC)..................................... AAA 3,000,000 3,077,820
Ser. O, 5.60%, 12/01/2005, (Insd. by
FGIC)..................................... AAA 1,000,000 1,033,280
Ser. O, 5.70%, 12/01/2006, (Insd. by
FGIC)..................................... AAA 1,500,000 1,550,955
Ser. P, 5.80%, 12/01/2006.................. AA- 2,075,000 2,157,232
Ser. U, 5.80%, 12/01/2007, (Insd. by
FGIC)..................................... AAA 5,000,000 5,180,900
------------
31,489,370
------------
Water & Sewer - 5.2%
Allegheny Cnty., PA Sanitation Auth. Swr.
RB, Ser. B,
6.50%, 12/01/2011.......................... AAA 2,000,000 2,040,940
Allentown, PA Wtr. RB, 6.85%, 07/15/2008.... AA 1,000,000 1,016,710
Bucks Cnty., PA Wtr. & Swr. Auth. RB,
Neshaminy Interceptor, 6.20%, 12/01/2003,
(Insd. by FGIC)............................ AAA 1,000,000 1,018,230
Delaware Cnty., PA Regl. Wtr. Quality Ctl.
Auth. Swr. RB, Ser. A, 7.20%, 05/01/2004... AAA 1,300,000 1,302,691
North Penn, PA Wtr. Auth. RB:
5.75%, 11/01/2018, (Insd. by FGIC)......... AAA 3,705,000 3,733,973
6.00%, 11/01/2007, (Insd. by FGIC)......... AAA 1,000,000 1,035,210
North Wales, PA Wtr. Auth. RB, 5.60%,
11/01/2020,
(Insd. by FGIC)............................ AAA 4,530,000 4,491,993
Pennsylvania Infrastructure Investment Auth.
RB, Pennvest Loan Pool Program:
5.40%, 09/01/2009, (Insd. by MBIA)......... AAA 1,805,000 1,861,207
5.50%, 09/01/2010, (Insd. by MBIA)......... AAA 2,140,000 2,213,445
</TABLE>
40
<PAGE>
EVERGREEN
Pennsylvania Municipal Bond Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Water & Sewer - continued
Philadelphia, PA Wtr. & Wst. Wtr. RB:
6.25%, 08/01/2012, (Insd. by MBIA).......... AAA $ 4,000,000 $ 4,408,480
Ser. A, 5.00%, 08/01/2022................... AAA 10,355,000 9,347,562
Univ. of Pittsburgh, PA RB, Area Joint Swr.
Auth., 5.25%,11/01/2014, (Insd. by MBIA).... AAA 4,255,000 4,267,425
Upper Merion, PA Muni. Util. Auth., Swr. RB:
5.55%, 08/15/2007........................... NR 2,595,000 2,647,289
6.00%, 08/15/2012........................... NR 1,000,000 1,023,200
6.00%, 08/15/2016........................... NR 2,325,000 2,360,945
Upper Moreland-Hatboro, PA Joint Swr. Auth.
RB:
6.25%, 10/15/2002, (Insd. by MBIA).......... AAA 1,025,000 1,058,425
6.35%, 10/15/2003, (Insd. by MBIA).......... AAA 1,000,000 1,049,160
------------
44,876,885
------------
Total Municipal Obligations (cost
$839,500,637)............................. 847,222,821
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
MUTUAL FUND SHARES - 0.6%
Federated Municipal Obligations Fund (cost
$5,264,000)........................................... 5,264,000 5,264,000
------------
Total Investments - (cost $844,764,637) - 98.8%.................... 852,486,821
Other Assets and Liabilities - 1.2%................................ 10,037,579
------------
Net Assets - 100.0%................................................ $862,524,400
------------
</TABLE>
See Combined Notes to Schedules of Investments.
41
<PAGE>
Combined Notes to Schedules of Investments
September 30, 2000 (Unaudited)
o The advisor to the Fund and the advisor of the money market fund are each a
division of First Union National Bank.
/\ Credit ratings are unaudited and rated by Moody's Investors Services where
Standard & Poor's ratings are not available.
Summary of Abbreviations:
AMBAC American Municipal Bond Assurance Corporation
BPO Bond Payment Obligation
COP Certificates of Participation
EDA Economic Development Authority
FGIC Federal Guaranty Insurance Company
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Incorporated
GNMA Government National Mortgage Association
GO General Obligation
HFA Housing Finance Authority
IBC Insured Bond Certificate
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
RRB Refunding Revenue Bond
SFHRB Single Family Housing Revenue Bond
The following table shows for each Fund the percent of net assets invested by
geographic location as of September 30, 2000:
<TABLE>
<CAPTION>
Connecticut New Jersey Pennsylvania
Fund Fund Fund
----------- ---------- ------------
<S> <C> <C> <C>
Connecticut................................. 88.2% 0.0% 0.0%
Delaware.................................... 0.0% 0.8% 0.0%
Guam........................................ 0.4% 0.0% 0.0%
Louisiana................................... 2.5% 0.0% 0.0%
New Jersey.................................. 0.0% 82.5% 0.0%
New York.................................... 0.0% 7.6% 0.0%
Pennsylvania................................ 0.0% 2.1% 97.4%
Puerto Rico................................. 8.9% 4.9% 1.3%
Virginia.................................... 0.0% 0.0% 0.3%
Virgin Islands.............................. 0.0% 2.1% 1.0%
------ ------ ------
Total..................................... 100.0% 100.0% 100.0%
====== ====== ======
</TABLE>
See Combined Notes to Financial Statements.
42
<PAGE>
EVERGREEN
State Municipal Bond Funds
Statements of Assets and Liabilities
September 30, 2000
<TABLE>
<CAPTION>
Connecticut New Jersey Pennsylvania
Fund Fund Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Identified cost of securities........ $67,423,770 $203,558,452 $844,764,637
Net unrealized gains on securities... 1,076,160 3,745,995 7,722,184
--------------------------------------------------------------------------------
Market value of securities........... 68,499,930 207,304,447 852,486,821
Cash................................. 0 60 546
Receivable for Fund shares sold...... 331,000 25,048 583,842
Interest receivable.................. 1,365,885 3,241,141 13,807,111
Receivable from investment advisor... 2,971 3,940 0
Prepaid expenses and other assets.... 1,247 1,407 218,208
--------------------------------------------------------------------------------
Total assets........................ 70,201,033 210,576,048 867,096,528
--------------------------------------------------------------------------------
Liabilities
Distributions payable................ 265,730 729,453 3,752,525
Payable for securities purchased..... 753,953 0 0
Payable for Fund shares redeemed..... 303,406 21,246 580,376
Advisory fee payable................. 0 12,919 17,696
Distribution Plan expenses payable... 134 2,078 3,980
Due to other related parties......... 562 1,719 7,079
Accrued expenses and other
liabilities......................... 31,084 42,944 210,472
--------------------------------------------------------------------------------
Total liabilities................... 1,354,869 810,359 4,572,128
--------------------------------------------------------------------------------
Net assets............................ $68,846,164 $209,765,689 $862,524,400
--------------------------------------------------------------------------------
Net assets represented by
Paid-in capital...................... $70,078,017 $212,712,917 $873,731,206
Undistributed (overdistributed) net
investment income................... 4,751 (52,950) (427,960)
Accumulated net realized gains or
losses on securities................ (2,312,764) (6,640,273) (18,501,030)
Net unrealized gains on securities... 1,076,160 3,745,995 7,722,184
--------------------------------------------------------------------------------
Total net assets...................... $68,846,164 $209,765,689 $862,524,400
--------------------------------------------------------------------------------
Net assets consists of
Class A.............................. $ 1,448,802 $ 27,783,353 $ 34,498,631
Class B.............................. 1,269,077 18,379,214 34,566,508
Class C.............................. 0 0 5,311,262
Class Y.............................. 66,128,285 163,603,122 788,147,999
--------------------------------------------------------------------------------
Total net assets...................... $68,846,164 $209,765,689 $862,524,400
--------------------------------------------------------------------------------
Shares outstanding
Class A.............................. 238,250 2,624,911 3,137,860
Class B.............................. 208,694 1,736,435 3,167,196
Class C.............................. 0 0 485,761
Class Y.............................. 10,874,444 15,456,799 71,687,236
--------------------------------------------------------------------------------
Net asset value per share
Class A.............................. $ 6.08 $ 10.58 $ 10.99
--------------------------------------------------------------------------------
Class A--Offering price (based on
sales charge of 4.75%).............. $ 6.38 $ 11.11 $ 11.54
--------------------------------------------------------------------------------
Class B.............................. $ 6.08 $ 10.58 $ 10.91
--------------------------------------------------------------------------------
Class C.............................. -- -- $ 10.93
--------------------------------------------------------------------------------
Class Y.............................. $ 6.08 $ 10.58 $ 10.99
--------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
43
<PAGE>
EVERGREEN
State Municipal Bond Funds
Statements of Operations
Six Months Ended September 30, 2000
<TABLE>
<CAPTION>
Connecticut New Jersey Pennsylvania
Fund Fund Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income
Interest................................ $1,834,214 $5,752,454 $24,921,977
--------------------------------------------------------------------------------
Expenses
Advisory fee............................ 180,365 441,540 1,074,043
Distribution Plan expenses.............. 7,849 128,922 243,458
Administrative services fees............ 34,686 105,128 429,753
Transfer agent fee...................... 1,117 13,665 38,531
Trustees' fees and expenses............. 711 2,168 8,840
Printing and postage expenses........... 3,943 12,077 49,151
Custodian fee........................... 10,523 30,546 87,536
Registration and filing fees............ 2,386 3,685 2,218
Professional fees....................... 11,779 11,146 14,680
Other................................... 2,490 13,945 5,823
--------------------------------------------------------------------------------
Total expenses......................... 255,849 762,822 1,954,033
Less: Expense reductions............... (1,617) (4,108) (16,610)
Fee waivers...................... (34,801) (22,029) 0
--------------------------------------------------------------------------------
Net expenses........................... 219,431 736,685 1,937,423
--------------------------------------------------------------------------------
Net investment income................... 1,614,783 5,015,769 22,984,554
--------------------------------------------------------------------------------
Net realized and unrealized gains or
losses on securities
Net realized losses on securities....... (577,673) (1,475,112) (1,236,434)
--------------------------------------------------------------------------------
Net change in unrealized gains on
securities............................. 1,388,938 3,555,090 9,692,842
--------------------------------------------------------------------------------
Net realized and unrealized gains on
securities............................. 811,265 2,079,978 8,456,408
--------------------------------------------------------------------------------
Net increase in net assets resulting
from operations........................ $2,426,048 $7,095,747 $31,440,962
--------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
44
<PAGE>
EVERGREEN
State Municipal Bond Funds
Statements of Changes in Net Assets
Six Months Ended September 30, 2000
<TABLE>
<CAPTION>
Connecticut New Jersey Pennsylvania
Fund Fund Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment income............... $ 1,614,783 $ 5,015,769 $ 22,984,554
Net realized losses on securities... (577,673) (1,475,112) (1,236,434)
Net change in unrealized gains on
securities......................... 1,388,938 3,555,090 9,692,842
-------------------------------------------------------------------------------
Net increase in net assets
resulting from operations......... 2,426,048 7,095,747 31,440,962
-------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income
Class A............................ (25,326) (666,366) (883,878)
Class B............................ (23,887) (371,348) (781,720)
Class C............................ 0 0 (121,511)
Class Y............................ (1,574,740) (4,037,639) (21,530,370)
-------------------------------------------------------------------------------
Total distributions to
shareholders...................... (1,623,953) (5,075,353) (23,317,479)
-------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold........... 4,413,106 16,116,333 76,447,579
Net asset value of shares issued in
reinvestment of distributions...... 30,703 729,346 1,118,782
Payment for shares redeemed......... (8,909,068) (25,449,305) (93,597,604)
-------------------------------------------------------------------------------
Net decrease in net assets
resulting from capital share
transactions...................... (4,465,259) (8,603,626) (16,031,243)
-------------------------------------------------------------------------------
Total decrease in net assets...... (3,663,164) (6,583,232) (7,907,760)
Net assets
Beginning of period................. 72,509,328 216,348,921 870,432,160
-------------------------------------------------------------------------------
End of period....................... $68,846,164 $209,765,689 $862,524,400
-------------------------------------------------------------------------------
Undistributed (overdistributed) net
investment income................... $ 4,751 $ (52,950) $ (427,960)
-------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
45
<PAGE>
EVERGREEN
State Municipal Bond Funds
Statements of Changes in Net Assets
Year Ended March 31, 2000
<TABLE>
<CAPTION>
Connecticut New Jersey Pennsylvania
Fund Fund Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment income.............. $ 3,283,961 $ 9,988,600 $ 38,267,960
Net realized losses on securities.. (1,735,091) (5,165,161) (17,264,056)
Net change in unrealized losses on
securities........................ (2,471,997) (6,976,635) (22,426,156)
--------------------------------------------------------------------------------
Net decrease in net assets
resulting from operations........ (923,127) (2,153,196) (1,422,252)
--------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income
Class A........................... (29,677) (1,442,654) (1,552,010)
Class B........................... (47,904) (790,701) (1,509,695)
Class C........................... 0 0 (268,474)
Class Y........................... (3,186,337) (7,750,828) (34,893,891)
Net realized gains
Class A........................... (2,299) (67,202) (21,064)
Class B........................... (3,951) (46,764) (22,866)
Class C........................... 0 0 (4,212)
Class Y........................... (210,673) (399,038) (528,176)
--------------------------------------------------------------------------------
Total distributions to
shareholders..................... (3,480,841) (10,497,187) (38,800,388)
--------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold.......... 14,810,856 48,598,866 187,587,317
Net asset value of shares issued in
reinvestment of distributions..... 282,337 2,163,636 2,638,961
Payment for shares redeemed........ (13,818,971) (46,953,178) (202,177,638)
Net asset value of shares issued in
acquisitions...................... 0 47,915,180 667,273,557
--------------------------------------------------------------------------------
Net increase in net assets
resulting from capital share
transactions..................... 1,274,222 51,724,504 655,322,197
--------------------------------------------------------------------------------
Total increase (decrease) in net
assets.......................... (3,129,746) 39,074,121 615,099,557
Net assets
Beginning of period................ 75,639,074 177,274,800 255,332,603
--------------------------------------------------------------------------------
End of period...................... $ 72,509,328 $216,348,921 $ 870,432,160
--------------------------------------------------------------------------------
Undistributed (overdistributed) net
investment income.................. $ 13,921 $ 6,634 $ (95,035)
--------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
46
<PAGE>
Combined Notes to Financial Statements (Unaudited)
1. ORGANIZATION
The Evergreen State Municipal Bond Funds consist of Evergreen Connecticut Mu-
nicipal Bond Fund ("Connecticut Fund"), Evergreen New Jersey Municipal Bond
Fund ("New Jersey Fund") and Evergreen Pennsylvania Municipal Bond Fund ("Penn-
sylvania Fund"), (collectively, the "Funds"). Each Fund is a non-diversified
series of Evergreen Municipal Trust (the "Trust"), a Delaware business trust
organized on September 18, 1997. The Trust is an open-end management investment
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act").
The Funds offer Class A, Class B, Class C and/or Class Y shares. Class A shares
are sold with a front-end sales charge. Class B and Class C shares are sold
without a front-end sales charge, but pay a higher ongoing distribution fee
than Class A. Class B and Class C 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 Y shares are sold at net asset value
and are not subject to contingent deferred sales charges or distribution fees.
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.
Mutual fund shares held in a Fund are valued at the net asset value of each mu-
tual fund.
Short-term investments with remaining maturities of 60 days or less are carried
at amortized cost, which approximates market value.
B. 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.
D. Federal Taxes
The Funds intend to comply with the provisions of the Internal Revenue Code ap-
plicable to regulated investment companies and to distribute all of their net
investment company taxable income, net tax-exempt income and net capital gains,
if any, to their shareholders. Accordingly, no provision for federal income or
excise tax is required.
47
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
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. 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. Distributions to shareholders are recorded at the close of business on
the ex-dividend date.
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.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB") a subsidiary of First Union Corporation
("First Union"), is the investment advisor to the Connecticut Fund and the New
Jersey Fund and is paid a management fee that is computed and paid daily. The
management fee for the Connecticut Fund is computed at an annual rate of 0.52%
of the Fund's average daily net assets. The management fee for the New Jersey
Fund is calculated by applying percentage rates, starting at 0.42% and declin-
ing to 0.27% per annum as net assets increase, to the Fund's average daily net
assets.
Evergreen Investment Management Company ("EIMC"), an indirect wholly owned sub-
sidiary of FUNB, is the investment advisor for the Pennsylvania Fund. In return
for providing investment management services to the Pennsylvania Fund, the Fund
pays EIMC a management fee that is computed and paid daily. The management fee
is calculated by applying percentage rates, starting at 0.46% and declining to
0.16% per annum as net assets increase, to the Fund's average daily net assets.
During the six months ended September 30, 2000, the Connecticut Fund waived
$34,801 in investment advisory fees and the impact on the Fund's annualized ex-
pense ratio as a percentage of its average net assets was 0.10%.
Evergreen Investment Services ("EIS"), an indirect, wholly owned subsidiary of
FUNB, is the administrator to the Funds. As administrator, EIS provides the
Funds with facilities, equipment and personnel. For its services, the Funds pay
the administrator a fee at the annual rate of 0.10% of each Fund's average
daily net assets. The BISYS Group, Inc. ("BISYS") served as the sub-administra-
tor to the Funds and provided the officers of the Funds. The sub-administrator
was paid by the administrator until the sub-administration agreement was termi-
nated on April 30, 2000.
During the six months ended September 30, 2000, the Connecticut Fund, New Jer-
sey Fund and Pennsylvania Fund paid or accrued $34,686, $105,128 and $429,753
for administrative services.
Officers of the Funds and affiliated Trustees receive no compensation directly
from the Funds.
Evergreen Service Company ("ESC"), an indirect wholly owned subsidiary of FUNB,
serves as the transfer and dividend disbursing agent for the Funds.
48
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
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". Under the Distribu-
tion Plans, each class incurs distribution fees at the following annual rates:
<TABLE>
<CAPTION>
Average Daily
Net Assets
-------------
<S> <C>
Class A............................................ 0.25%
Class B............................................ 1.00
Class C............................................ 1.00
</TABLE>
Of the above amounts, each share class may pay under its Distribution Plan a
maximum service fee of 0.25% of the average daily net assets of the class to
pay for shareholder service fees. Distribution Plan expenses are calculated and
paid daily.
During the six months ended September 30, 2000, amounts paid or accrued to EDI
pursuant to each Fund's Class A, Class B, and Class C Distribution Plans as
well as distribution fees waived and the impact of the waiver as a percentage
of the average net assets of the class were as follows:
<TABLE>
<CAPTION>
% of
Fees Class A
Waived Average
Class A Class B Class C Class A Net Assets
-------------------------------------------
<S> <C> <C> <C> <C> <C>
Connecticut
Fund............ $ 1,416 $ 6,433 -- -- --
New Jersey Fund.. 34,420 94,502 -- $22,029 0.16%
Pennsylvania
Fund............ 42,107 174,259 $27,092 -- --
</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 June 25, 1999, as a result of the conversion of common trust funds managed
by CoreStates Financial Corp., the New Jersey Fund and Pennsylvania Fund each
acquired substantially all the net assets of comparable common trusts in ex-
change for Class Y shares of the respective funds.
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 Net Assets
Assets Shares Unrealized After
Acquiring Fund Acquired Fund Acquired Issued Appreciation Acquisition
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New Jersey Fund common trust fund $ 47,915,180 4,436,670 $ (1,033,417) $223,996,388
Pennsylvania Fund common trust fund 667,273,557 59,201,637 (12,011,107) 922,757,172
</TABLE>
49
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
6. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class A, Class B, Class C and/or Class Y. Transactions in shares
of the Funds were as follows:
Connecticut Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000 March 31, 2000
----------------------- ------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold................ 138,286 $ 829,609 106,760 $ 656,854
Shares issued in
reinvestment of
distributions............. 1,515 9,159 2,402 14,585
Shares redeemed............ (25,332) (154,354) (74,680) (455,294)
------------------------------------------------------------------------------
Net increase............... 114,469 684,414 34,482 216,145
------------------------------------------------------------------------------
Class B
Shares sold................ 3,703 22,508 113,496 703,201
Shares issued in
reinvestment of
distributions............. 2,296 13,832 5,539 33,611
Shares redeemed............ (26,097) (157,899) (75,158) (456,902)
------------------------------------------------------------------------------
Net increase (decrease).... (20,098) (121,559) 43,877 279,910
------------------------------------------------------------------------------
Class Y
Shares sold................ 590,136 3,560,989 2,210,525 13,450,801
Shares issued in
reinvestment of
distributions............. 1,280 7,712 38,879 234,141
Shares redeemed............ (1,426,029) (8,596,815) (2,123,745) (12,906,775)
------------------------------------------------------------------------------
Net increase (decrease).... (834,613) (5,028,114) 125,659 778,167
------------------------------------------------------------------------------
Net increase (decrease).... $(4,465,259) $ 1,274,222
------------------------------------------------------------------------------
</TABLE>
New Jersey Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000 March 31, 2000
------------------------ ------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 160,870 $ 1,686,749 513,462 $ 5,471,875
Automatic Conversion of B
Shares to A Shares....... 0 0 13,772 142,552
Shares issued in
reinvestment of
distributions............ 38,835 407,552 89,772 954,868
Shares redeemed........... (258,957) (2,715,722) (947,781) (10,123,431)
------------------------------------------------------------------------------
Net decrease.............. (59,252) (621,421) (330,775) (3,554,136)
------------------------------------------------------------------------------
Class B
Shares sold............... 129,059 1,353,724 483,331 5,225,508
Shares issued in
reinvestment of
distributions............ 23,188 243,279 56,035 596,343
Automatic Conversion of B
Shares to A Shares....... 0 0 (13,772) (142,552)
Shares redeemed........... (283,872) (2,990,307) (466,917) (4,955,647)
------------------------------------------------------------------------------
Net increase (decrease)... (131,625) (1,393,304) 58,677 723,652
------------------------------------------------------------------------------
Class Y
Shares sold............... 1,251,321 13,075,860 3,554,144 37,901,483
Shares issued in
reinvestment of
distributions............ 7,483 78,515 57,872 612,425
Shares redeemed........... (1,889,485) (19,743,276) (3,016,740) (31,874,100)
Shares issued in
acquisition of common
trust fund............... 0 0 4,436,670 47,915,180
------------------------------------------------------------------------------
Net increase (decrease)... (630,681) (6,588,901) 5,031,946 54,554,988
------------------------------------------------------------------------------
Net increase (decrease)... $ (8,603,626) $ 51,724,504
------------------------------------------------------------------------------
</TABLE>
50
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Pennsylvania Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000 March 31, 2000
------------------------ --------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 954,885 $ 10,420,337 1,951,256 $ 21,690,494
Automatic conversion of
Class B shares to Class
A Shares............... 0 0 10,624 113,974
Shares issued in
reinvestment of
distributions.......... 41,409 451,769 76,879 772,835
Shares redeemed......... (869,223) (9,500,282) (1,484,308) (16,315,550)
-------------------------------------------------------------------------------
Net increase............ 127,071 1,371,824 554,451 6,261,753
-------------------------------------------------------------------------------
Class B
Shares sold............. 131,443 1,457,468 683,376 7,707,239
Shares issued in
reinvestment of
distributions.......... 42,172 456,361 85,068 931,987
Automatic conversion of
Class B shares to Class
A Shares............... 0 0 (10,719) (113,974)
Shares redeemed......... (277,898) (3,000,593) (768,838) (8,471,290)
-------------------------------------------------------------------------------
Net increase
(decrease)............. (104,283) (1,086,764) (11,113) 53,962
-------------------------------------------------------------------------------
Class C
Shares sold............. 35,999 398,532 48,560 569,348
Shares issued in
reinvestment of
distributions.......... 7,195 78,003 16,711 183,853
Shares redeemed......... (86,641) (940,317) (137,215) (1,503,074)
-------------------------------------------------------------------------------
Net decrease............ (43,447) (463,782) (71,944) (749,873)
-------------------------------------------------------------------------------
Class Y
Shares sold............. 5,899,799 64,171,242 14,330,293 157,620,236
Shares issued in
reinvestment of
distributions.......... 12,158 132,649 68,152 750,286
Shares redeemed......... (7,357,217) (80,156,412) (16,066,843) (175,887,724)
Shares issued in
acquisition of common
trust fund............. 0 0 59,201,637 667,273,557
-------------------------------------------------------------------------------
Net increase
(decrease)............. (1,445,260) (15,852,521) 57,533,239 649,756,355
-------------------------------------------------------------------------------
Net increase
(decrease)............. $(16,031,243) $ 655,322,197
-------------------------------------------------------------------------------
</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 September 30,
2000:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
-------------------------------------
<S> <C> <C>
Connecticut Fund.......... $13,388,253 $16,609,482
New Jersey Fund........... 29,446,712 25,063,151
Pennsylvania Fund......... 73,018,631 89,643,132
</TABLE>
As of March 31, 2000, Connecticut Fund, New Jersey Fund and Pennsylvania Fund
had respective capital loss carryovers for federal income tax purposes of
$527,818, $1,004,794 and $3,935,444 which expire on March 31, 2008.
In addition to the capital loss carryovers, capital losses incurred after Octo-
ber 31 within a Fund's fiscal year end are deemed to arise on the first busi-
ness day of the Fund's following fiscal year. For the fiscal year ended March
31, 2000, the Connecticut Fund, New Jersey Fund and Pennsylvania Fund incurred
and elected to defer $1,207,273, $4,160,367 and $13,329,151, respectively, of
capital losses.
8. EXPENSE REDUCTIONS
Through expense offset arrangements with ESC and their custodian a portion of
each Fund's expenses have been reduced. The amount of expense reductions re-
ceived by each Fund and the impact of the total expense reductions on each
Fund's annualized expense ratio represented as a percentage of its average net
assets were as follows:
<TABLE>
<CAPTION>
Total % of
Expense Average
Reductions Daily Net
Received Assets
--------------------
<S> <C> <C>
Connecticut Fund........................... $ 1,617 0.00%
New Jersey Fund............................ 4,108 0.00%
Pennsylvania Fund.......................... 16,610 0.00%
</TABLE>
51
<PAGE>
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 Trustee. 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 is based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Fund's Trustees' fees and
expenses. At the election of the Trustees, the deferral account will be paid
either in one lump sum or in quarterly installments for up to ten years.
10. FINANCING AGREEMENTS
On July 27, 1999, certain Evergreen Funds and a group of banks (the "Lenders")
entered into a credit agreement. Under this agreement, the Lenders provided an
unsecured revolving credit commitment in the aggregate amount of $1.050 bil-
lion. The credit facility was allocated, under the terms of the financing
agreement, among the Lenders. The credit facility was accessed by the Funds for
temporary or emergency purposes to fund the redemption of their shares or for
general working capital purposes as permitted by each Fund's borrowing restric-
tions. Borrowings under this facility bore interest at 0.75% per annum above
the Federal Funds rate (1.50% per annum above the Federal Funds rate during the
period from and including December 1, 1999 through and including January 31,
2000). A commitment fee of 0.10% per annum was incurred on the average daily
unused portion of the revolving credit commitment. The commitment fee was allo-
cated to all funds. For its assistance in arranging this financing agreement,
First Union Capital Markets Corp. was paid a one-time arrangement fee of
$250,000. State Street served as paying agent for the funds and as paying agent
was entitled to a fee of $20,000 per annum which was allocated to all the
funds.
On July 25, 2000, this agreement was renewed, amended and restated among cer-
tain Evergreen Funds and the Lenders. Under this renewed agreement, the Lenders
provide an unsecured revolving credit commitment in the aggregate amount of
$755 million. The credit facility is allocated, under the terms of the financ-
ing agreement, among the Lenders. The credit facility is accessed by the Funds
to temporarily finance the purchase or sale of securities for prompt delivery,
including funding redemption of their shares, as permitted by each Fund's bor-
rowing restrictions. Borrowings under this facility bear interest at 0.50% per
annum above the Federal Funds rate. A commitment fee of 0.10% per annum contin-
ues to be incurred on the average daily unused portion of the revolving credit
commitment and is allocated to all funds. For its assistance in renewing this
financing agreement, First Union Capital Markets Corp. was paid a one-time ar-
rangement fee of $150,000. State Street continues as paying agent for the funds
and receives a fee of $20,000 per annum which is allocated to all the funds.
During the six months ended September 30, 2000 the Funds had no borrowings.
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.
52
<PAGE>
Evergreen Funds
Money Market Funds
Florida Municipal Money Market Fund
Money Market Fund
Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Treasury Money Market Fund
State Municipal Bond Funds
Connecticut Municipal Bond Fund
Florida High Income Municipal Bond Fund
Florida Municipal Bond Fund
Georgia Municipal Bond Fund
Maryland Municipal Bond Fund
New Jersey Municipal Bond Fund
North Carolina Municipal Bond Fund
Pennsylvania Municipal Bond Fund
South Carolina Municipal Bond Fund
Virginia Municipal Bond Fund
National Municipal Bond Funds
High Grade Municipal Bond Fund
High Income Municipal Bond Fund
Municipal Bond Fund
Short-Intermediate Municipal Bond Fund
Short and Intermediate Bond Funds
Intermediate Term Bond Fund
Short-Duration Income Fund
Intermediate and Long Term Bond Funds
Diversified Bond Fund
High Yield Bond Fund
Quality Income Fund
Strategic Income Fund
U.S. Government Fund
Balanced Funds
Balanced Fund
Foundation Fund
Tax Strategic Foundation Fund
Growth & Income Funds
Blue Chip Fund
Equity Income Fund
Equity Index Fund
Growth and Income Fund
Small Cap Value Fund
Value Fund
Domestic Growth Funds
Aggressive Growth Fund
Capital Growth Fund
Evergreen Fund
Growth Fund
Large Company Growth Fund
Masters Fund
Omega Fund Small
Company Growth Fund
Special Equity Fund
Stock Selector Fund
Tax Strategic Equity Fund
Sector Funds
Health Care Fund
Technology Fund
Utility Fund
Global & International Funds
Emerging Markets Growth Fund
Global Leaders Fund
Global Opportunities Fund
International Growth Fund
Latin America Fund
Perpetual Global Fund
Perpetual International Fund
Precious Metals Fund
Express Line
800.346.3858
Investor Services
800.343.2898
www.evergreen-funds.com
47739 541050 11/2000
---------------
[LOGO OF EVERGREEN FUNDS] PRSRT STD
U.S. POSTAGE
200 Berkeley Street PAID
Boston, MA 02116 LANCASTER, PA
PERMIT NO. 11
---------------
