SUPPLEMENT TO PROSPECTUS OF
EVERGREEN SHORT AND INTERMEDIATE TERM BOND FUNDS
I. Evergreen Short-Intermediate Bond Fund (the "Fund")
Effective March 13, 2000, the Fund will change its name to Evergreen
Short-Duration Income Fund.
Also effective on the same date, the fifth paragraph under the section
entitled "Investment Strategy" in the Fund's prospectus is restated in its
entirety as follows:
"The Fund's final maturity for the securities it holds may range up
to thirty years. The duration of these securities will not exceed
ten years. The Fund intends to maintain a dollar-weighted average
maturity of seven years or less and a dollar-weighted average
duration of five years or less."
March 13, 2000
II. Evergreen Capital Preservation and Income Fund
Proposed Fund Reorganization
On March 24, 2000 the Board of Trustees of the Evergreen Funds approved
a proposal to reorganize Evergreen Capital Preservation and Income Fund
("Capital Preservation") into Evergreen Select Adjustable Rate Fund ("Select
Adjustable Rate"). If the shareholders of Capital Preservation approve the
proposal, all of the assets of Capital Preservation will be transferred to
Select Adjustable Rate and shareholders of Capital Preservation will receive
shares of Select Adjustable Rate in exchange for their shares. Shareholders of
record of Capital Preservation as of April 28, 2000, are scheduled to vote on
the proposal at a special meeting of shareholders to be held on July 14, 2000.
If approved, the reorganization is proposed to take place on or about July 21,
2000. Shareholders of Capital Preservation will be mailed information detailing
the proposal on or about May 26, 2000.
April 3, 2000
III. Evergreen Intermediate Term Bond Fund
The first two sentences of the fourth paragraph under the section
entitled "INVESTMENT STRATEGY" in the Fund's prospectus are replaced with the
following language:
The Fund's dollar-weighted average maturity will be less than 10 years.
Although the Fund may invest in individual securities of any maturity, the Fund
currently expects the dollar-weighted average maturity of its portfolio to range
from 5 to 10 years and the average duration to range from 3 to 7 years.
Evergreen Capital Preservation and Income Fund
Effective April 7, 2000, Class Y shares will no longer be offered.
April 14, 2000
IV. Evergreen Short-Duration Income Fund
Thomas L. Ellis has managed the Fund since August 2000. Since joining
EIM in 1985, Mr. Ellis has been a Vice President and senior portfolio manager.
August 22, 2000 555732 8/00
