First Union Money Market
Portfolio,
Statement of Investments,
June 30, 1995
(unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------------------------- -----------------------
Certificate of Deposit -
<S> <C>
4.0%
$15,000,000 First Bank Sioux Falls, SD, 6.03 %, 7/11/95 $15,000,000
10,000,000 First National Bank Boston, MA, 6.33%, 9/27/95 9,999,500
-----------------------
(cost $24,999,500) 24,999,500
-----------------------
Corporate Bonds - 5.0%
3,000,000 Anheuser Busch Cos., Inc., 8.75%, 7/15/95 3,002,676
13,820,000 Central Fidelity Bank Va., 4.785%, 2/15/96 13,707,094
3,000,000 Hanson Overseas, 5.50%, 1/15/96 2,970,983
8,000,000 Lehman Brothers Holdings, Inc., 7.68%, 2/12/96 8,035,316
3,000,000 Super Value Store, 5.875%, 11/15/95 2,980,953
-----------------------
(cost $30,697,022) 30,697,022
-----------------------
Commercial Paper - Discount - 79.3%
Allianz of America Finance Corp.,
6.03%, 10/5/95 9,839,200
6.05%, 10/5/95 9,838,667
15,000,000 American Home Products Corp., 5.94%, 9/7/95 14,831,700
American Honda Finance Corp.,
7,250,000 6.06%, 8/1/95 7,212,167
5,000,000 6.16%, 7/24/95 4,980,322
Bankers Trust NY Corp.,
5,000,000 5.95%, 11/6/95 4,894,222
15,000,000 6.10%, 10/11/95 14,740,750
15,000,000 Barnett Banks, Inc., 5.97%, 7/11/95 14,975,125
5,102,000 Broadway Capital Corp., 5.95%, 9/1/95 5,049,719
BTR Dunlop Finance, Inc.,
10,000,000 5.93%, 8/17/95 9,922,581
10,000,000 6.15%, 9/13/95 9,873,583
Diamond Asset Funding Corp.,
5,000,000 5.93%, 8/25/95 4,954,702
4,278,000 6.18%, 8/15/95 4,244,952
10,000,000 DIC Americas, Inc., 5.90%, 8/4/95 9,944,278
Dynamic Funding Corp.,
10,406,000 5.90%, 10/2/95 10,247,395
5,000,000 5.95%, 7/25/95 4,980,167
10,000,000 6.05%, 7/31/95 9,949,583
20,000,000 Falcon Asset Securitiztion Corp., 5.95%, 8/10/95 19,867,778
10,000,000 First Boston Mortgage Securities Corp., 5.90%, 7/21/95 9,967,222
20,000,000 Ford Motor Credit Co., 5.90%, 8/28/95 19,809,889
10,000,000 General Motors Acceptance Corp., 5.94%, 9/20/95 9,866,350
10,000,000 Hosekawa Micron International, Inc., 5.98%, 7/14/95 9,978,406
10,000,000 McKenna Triangle National Corp., 5.95%, 7/7/95 9,990,083
First Union Money Market
Portfolio
Statement of Investments
June 30, 1995
(unaudited)
Principal
Amount Value
- ---------------------------- -----------------------
Commercial Paper -
Discount (continued)
Merrill Lynch & Co., Inc.,
$10,000,000 5.97%, 7/27/95 $9,956,883
7,000,000 6.05%, 7/14/95 6,984,707
6,250,000 Metrocrest Hospital Authority, 6.12%, 8/1/95 6,217,054
10,000,000 Nichiman America, Inc., 5.97%, 7/10/95 9,985,075
10,000,000 NYNEX Corp., 6.06%, 9/25/95 9,855,233
11,317,000 One Embarcadero Ct Venture, 5.95%, 8/16/95 11,230,959
Orix America, Inc.,
10,000,000 5.92%, 7/6/95 9,991,778
10,000,000 5.97%, 7/6/95 9,991,708
15,000,000 Pemex Capital, Inc., (Series A) Cr Suisse NY, 5.90%, 9/5/95 14,837,750
Prudential Finance Jersey Ltd.,
10,000,000 5.95%, 8/8/95 9,937,195
5,000,000 5.95%, 8/14/95 4,963,639
13,000,000 Ranger Funding Corp., 5.97%, 7/10/95 12,980,598
25,000,000 Rexam, 5.90%, 9/6/95 24,725,486
5,000,000 Riverwoods Funding Corp., 5.95%, 7/18/95 4,985,951
5,000,000 Sharp Electronics Corp., 6.55%, 7/14/95 4,988,174
10,000,000 Sherwood Medical Co., 5.95%, 9/5/95 9,890,917
20,000,000 Societe Generale (New York), 5.85%, 8/25/95 19,821,250
9,000,000 Southland Corp., 5.95%, 8/8/95 8,943,475
SRD Finance, Inc.,
20,000,000 5.98%, 7/27/95 19,913,622
10,000,000 6.05%, 7/27/95 9,956,306
Svenska Handelsbanken, Inc.,
10,000,000 5.95%, 7/31/95 9,950,417
7,500,000 6.13%, 9/5/95 7,415,713
Toshiba America ,
10,000,000 5.88%, 11/7/95 9,789,300
10,000,000 6.02%, 7/28/95 9,954,850
5,000,000 Toyota Motor Credit Co., 6.15%, 12/27/95 4,847,104
-----------------------
(cost $492,073,985) 492,073,985
-----------------------
Corporate Notes - .7%
4,500,000 General Motors Acceptance Corp., 5.95%, 2/23/96 4,457,205
-----------------------
(cost $4,457,205)
Variable Rate Notes - 7.7%
7,000,000 Dean Witter Discover & Co., 6.31%, 12/15/95 7,004,636
8,000,000 Merrill Lynch & Co. Inc., 6.31%, 2/20/96 8,000,514
First Union Money Market
Portfolio
Statement of Investments
June 30,1995
(unaudited)
Principal
Amount Value
- ---------------------------- -----------------------
Variable Rate Notes
(continued)
$5,000,000 American Honda Finance Corp., 6.19%, 1/26/96 $5,000,000
4,000,000 Beta Finance, Inc., 6.30%, 9/7/95 3,999,627
4,000,000 CIT Group Holdings, Inc., 6.20%, 9/18/95 3,998,862
5,000,000 FCC National Bank Wilmington, Delaware, 5.6%, 11/8/95 4,998,153
5,000,000 First Boston Group, Inc., 6.33%, 8/25/95 5,000,000
5,000,000 General Electric Capital Corp., 6.32%, 11/21/95 4,999,608
5,000,000 General Motors Acceptance Corp., 6.40%, 3/1/96 4,999,526
-----------------------
(cost $47,995,942) 48,000,926
-----------------------
**Repurchase Agreement -
2.9%
17,891,000 Donaldson, Lufkin & Jenrette Securities Corp.,
6.00%, dated 6/30/95, due 7/3/95 17,891,000
-----------------------
(cost $17,891,000)
Mutual Fund Shares - .6%
3,576,730 Lehman Prime Value, 3,576,730
-----------------------
(cost $3,576,730)
Total Investments 100.2% - 621,696,368
(cost $621,696,368)
Other Assets and (979,848)
Liabilities - net (.2%)
=======================
Net Assets - 100% $620,716,520
=======================
</TABLE>
* Each issue shows the
rate of discount at the
time of purchase for
discount issues,
or the coupon for
interest bearing issues.
** Fully collateralized by
U.S. government and/or
agency obligations based
on market prices at June
30,1995.
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
First Union Money Market Fund
Statement of Assets and Liabilities
June 30, 1995
(unaudited)
<S> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Assets:
Investments at value (identified cost $621,696,368) $621,696,368
Interest receivable 1,365,058
Receivable for Fund shares sold 76,426
-----------------------------
Total assets 623,137,852
-----------------------------
Liabilities:
Due to custodian bank 34,976
Dividends payable 2,208,976
Accrued expenses 172,381
Payable for Fund shares repurchased 4,999
-----------------------------
Total liabilities 2,421,332
-----------------------------
Net Assets $620,716,520
=============================
Net assets consist of:
Paid-in capital $620,712,246
Accumulated net realized gain 4,274
=============================
Net assets $620,716,520
=============================
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Calculation of net asset value per share:
Class A Shares ($555,612,637 / 555,608,363 shares of beneficial interest outstanding) $1.00
Class B Shares ($8,753,722 / 8,753,722 shares of beneficial interest outstanding) $1.00
Class Y Shares ($56,350,161 / 56,350,161 shares of beneficial interest outstanding) $1.00
See accompanying notes to financial statements.
</TABLE>
<PAGE>
First Union Money Market Portfolio
Statement of Operations
Six Months Ended June 30, 1995
(unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
Investment income:
Interest $10,702,146
Expenses:
Advisory fee $594,948
Administrative personnel and services fees 140,020
Distribution fee-Class A Shares 390,675
Distribution and shareholder services fees-Class B Shares 50,935
Transfer agent fee 140,888
Custodian fee 68,333
Registration and filing fees 22,676
Reports and notices to shareholders 19,886
Professional fees 17,122
Insurance 3,981
Trustees' fees and expenses 2,078
Miscellaneous 3,738
---------------
1,455,280
Less: Advisory fee waiver (224,163)
---------------
Total expenses 1,231,117
---------------------------
Net investment income $9,471,029
===========================
>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
First Union Money Market Portfolio
Statement of Changes in Net Assets
Six Months Year
Ended Ended
June 30, 1995 December 31,
(unaudited) 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $9,471,029 $4,044,532
Net realized gain on investments --- 1,468
-------------------------------------------
Net increase in net assets resulting from investments 9,471,029 4,046,000
-------------------------------------------
Distributions to shareholders from net investment income:
Class A Shares (8,398,727) (3,515,478)
Class B Shares (241,569) (156,072)
Class Y Shares (830,733) (372,982)
-------------------------------------------
Total distributions to shareholders (9,471,029) (4,044,532)
-------------------------------------------
-------------------------------------------
Fund share transactions:
Proceeds from shares sold 922,825,179 432,879,341
Proceeds from reinvestment of dividends 3,029,548 3,363,486
Payments for shares redeemed (423,022,777) (415,646,017)
-------------------------------------------
Net increase resulting from Fund share transactions 502,831,950 20,596,810
-------------------------------------------
Net increase in net assets 502,831,950 20,598,278
Net assets:
Beginning of period 117,884,570 97,286,292
-------------------------------------------
End of period $620,716,520 $117,884,570
===========================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
First Union Money Market Portfolio
Financial Highlights
<TABLE>
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Class A Shares
-----------------------------------------------------------------------------
Six months April 1,
Ended 1990
June 30, through
1995 Year Ended December 31, December 31,
Per Share Data (unaudited) 1994 1993 1992 1991 1990#
----------------------------------------------------------------------------------------------
Net asset value, beginning of
period ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from net investment
income ........................ 0.03 0.04 0.03 0.03 0.05 0.06
Less distributions to shareholders
from net investment income .. (0.03) (0.04) (0.03) (0.03) (0.05) (0.06)
Net asset value, end of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return+ .................... 2.7% 2.8% 3.2% 5.7% 6.1% 5.6%
Ratios &
Supplemental Data:
Net assets, end of period
(000's omitted) ............... $ 555,613 $ 95,760 $ 88,171 $ 64,784 $ 64,457 $ 32,216
Ratios to average net assets:
Expenses (a) ................... 0.72% ++ 0.61% 0.62% 0.82% 0.73% 0.42% ++
Net investment income (a) ..... 5.57% ++ 3.79% 2.81% 3.18% 5.45% 7.85% ++
+ Total return is calculated on net asset value per
share for the period indicated and is not annualized.
++ Annualized.
# The fund changed its fiscal year end from March 31
to December 31.
(a) Net of expense waivers and reimbursements. If the
Fund had borne all expenses that were assumed or
waived by the
investment adviser, the annualized ratios of
expenses and net investment income to average net
assets would
have been the following:
Class A Shares
--------------------------------------------------------------
Six months
Ended April 1,
June 30, 1990
1995 Year Ended December 31, through
------------------------------------ December 31,
(unaudited) 1994 1993 1992 1991 1990
------------------------------------------------------------------------
Expenses ............................. 0.86% 0.98% 1.01% 1.06% 1.06% 1.08%
Net investment income........ 5.43% 3.42% 2.42% 2.94% 5.12% 7.19%
First Union Money Market Portfolio
Financial Highlights
Class Y Shares
----------------------------------------------------------------------------------------
Six months February 28, Six months January 3,
Ended 1994* Ended 1991*
June 30, through June 30, through
1995 December 31, 1995 Year Ended December 31, December 31,
--------------------------------
Per Share Data (unaudited) 1994 (unaudited) 1994 1993 1992 1991
----------------------------------------------------------------------------------------
period........................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from net investment
income........................... 0.02 0.03 0.03 0.04 0.03 0.03 0.06
Less distributions to shareholders
from net investment income (0.02) (0.03) (0.03) (0.04) (0.03) (0.03) (0.06)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return+ 2.4% 2.8% 2.9% 4.0% 3.0% 3.4% 5.9%
Ratios &
Supplemental Data:
Net assets, end of period
(000's omitted).................. $8,754 $11,722 $56,350 $10,403 $9,115 $9,243 $5,550
Ratios to average net assets:
Expenses (a)...................... 1.48% ++ 1.30% ++ 0.46% ++ 0.41% 0.47% 0.64% 0.58% ++
Net investment income (a)... 4.74% ++ 3.63% ++ 5.84% ++ 3.99% 2.96% 3.34% 5.24% ++
</TABLE>
+ Total return is calculated on net asset value per share for the period
indicated and is not annualized.
++ Annualized.
* Commencement of class operations (a) Net of expense waivers and
reimbursements. If the Fund had borne all expenses that were assumed or waived
by the investment adviser, the annualized ratios of expenses and net investment
income to average net assets would have been the following:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Class B Shares
Class Y Shares
-----------------------------------------------------------------------------------
Six months February 28, Six months January 3,
Ended 1994 Ended 1991*
June 30, through June 30, through
1995 December 31, 1995 Year Ended December 31, December 31,
------------------------------
(unaudited) 1994 (unaudited) 1994 1993 1992 1991
--------------------------------------------------------------------------------- ------
Expenses .......................... 1.61% 1.56% 0.60% 0.68% 0.71% 0.75% 0.74%
Net investment income......... 4.61% 3.37% 5.70% 3.72% 2.72% 3.23% 4.98%
</TABLE>
First Union Money Market Portfolio
Notes to Financial Statements
Six Months Ended June 30, 1995
(unaudited)
Note 1 - Organization
Evergreen Investment Trust (formerly First Union Funds) (the "Trust") is a
Massachusetts business trust registered under the Investment Company Act of
1940, as amended (the "Act"), as an open-end management company. As of June 30,
1995, the Trust consisted of seventeen funds. The financial statements
included herein are only those of the First Union Money Market Portfolio
(the "Fund") (see Note 5).
Note 2 - Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. These policies are in
conformity with generally accepted accounting principles. Security Valuations -
Pursuant to Rule 2a-7 of the Act, portfolio securities are valued at amortized
cost which approximates market value.
Security Transactions - Security transactions are accounted for on the date
purchased or sold. Net realized gains or losses are determined on the
identified cost basis.
Investment Income and Expenses - Interest income and expenses are accrued daily.
Premiums and discounts paid on securities are amortized or accreted into income
as required by the Internal Revenue Code, as amended, (the "Code").
Repurchase Agreements - Securities pledged as collateral for repurchase
agreements are held by the Federal Reserve Bank and are designated as being
held on the Fund's behalf by its custodian under a book-entry system. The Fund
monitors the adequacy of the collateral on a daily basis, and can require the
seller to provide additional collateral in the event the market value of the
securities pledged falls below the carrying value of the repurchase agreement,
including accrued interest. The Fund will only enter into repurchase agreements
with banks and other financial institutions which are deemed by the investment
adviser to be creditworthy pursuant to guidelines established by the Trustees.
Dividends to Shareholders - Dividends from net investment income are declared
daily and paid monthly. Dividends from net realized capital gains on
investments, if any, will be distributed at least annually.Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles. To
the extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts.
Income Taxes - It is the Fund's policy to meet the requirements of the Code
applicable to regulated investment companies and to distribute substantially
all of its taxable net income to its shareholders. Accordingly, no provisions
for federal income and excise taxes are necessary. To the extent that realized
capital gains can be offset by capital loss carryforwards, it is the Fund's
policy not to distribute such gains.
When Issued and Delayed Delivery Transactions - The Fund records when-issued or
delayed delivery transactions on the trade date and maintain security positions
such that sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed delivery
basis are marked to market daily and begin earning interest on the
settlement date.
Note 3 - Investment Advisory Agreement and Other Transactions with Affiliates
Investment Advisory Agreement - First Union National Bank of North Carolina
(the "Adviser") received a fee of .30 of 1% of the Fund's average daily net
assets pursuant to an investment advisory agreement. For the six month period
Note 3 (continued) - ended June 30, 1995, the Adviser voluntarily waived
$224,163 of its advisory fee. The Adviser can modify or terminate this
voluntary waiver at any time.
Administrative Agreement - Federated Investor Services "FAS") provided the Fund
with certain administrative personnel and services including certain clerical
and recordkeeping services for the six-month period ended June 30, 1995. In
addition, certain of the Trust's officers and Trustees were officers or
directors of FAS. FAS' fee was based on the level of average net assets of the
Trust for the period, subject to a minimum fee.
Plan of Distribution - The Trust has adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Trust
compensated Federated Securities Corp. ("FSC"), the principal distributor, from
the net assets of the all of the funds in the Trust to finance activities
intended to result in the sale of Class A and Class B Shares. The Plan provides
that the Fund may incur distribution expenses up to .35 of 1% of the average
daily net assets of the Class A Shares, annually, to finance such activities.
For the six-month period ended June 30, 1995, FSC limited its fees on Class A
shares to .30 of 1% of the Fund's Class A shares average daily net assets.
Under the terms of a shareholder Services Agreement with First Union Brokerage
Services ("FUBS"), the Fund will pay FUBS up to .25 of 1% of average net assets
of the Fund's Class B shares. This fee is to obtain certain services for
shareholders and to maintain the shareholder accounts.
Transfer and Dividend Disbursement Agent - Federated Services Company ("FServ")
served as Transfer and dividend disbursing agent for the Trust for the
six-month period ended June 30, 1995 . FServ's fee was based on the size, type
and number of accounts and transactions made by shareholders.
Note 4 - Shares of Beneficial Interest
The Fund has an unlimited number of no par value shares of beneficial interest
authorized. The shares are divided into three classes which are designated
Class A, Class B, and Class Y shares. Class Y shares are available only to
investment advisory clients of the Adviser and its affiliates, certain
institutional investors and Class Y shareholders of record of certain other
funds managed by the Adviser and its affiliates as of December 30, 1994.
The classes have identical voting, dividend, liquidation and other rights,
except that Class A shares bear distribution expenses (see Note 3) and has
exclusive voting rights with respect to its distribution plan.
<PAGE>
Note 4 (continued) - Transactions in shares of beneficial interest
(Valued at $1.00 per share) were as follows:
Year Ended Six months ended
June 30, 1995 December 31, 1994*
Class A
Shares sold $ 848,869,800 $ 397,451,193
Shares issued on reinvestment
of dividends 2,865,369 3,171,491
Shares redeemed (391,882,304) (393,034,505)
Net increase 7,588,179 459,852,865
Class B
Shares sold 2,652,214 17,229,258
Shares issued on reinvestment
of dividends 160,289 122,553
Shares redeemed (5,780,561) (5,630,031)
Net increase (decrease) (2,968,058) 11,721,780
Class Y
Shares sold 71,303,165 18,189,890
Shares issued on reinvestment
of dividends 3,890 70,910
Shares redeemed (25,359,912) (16,981,481)
Net increase 45,947,143 1,279,319
Total net increase resulting
from Fund share transactions $ 502,831,950 $ 20,589,278
*Class B Shares are for the period February 28,1994 (commencement of operations)
through December 31, 1994.
Note 5 - Subsequent Events
Effective July 7, 1995, Evergreen Money Market Fund acquired substantially all
of the Fund's net assets by a non-taxable exchange of 642,287,527of the Fund's
shares for 642,287,527 shares of Evergreen Money Market Fund. As of this date,
the First Union Money Market Fund ceased operations.
