STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 25, 1995
Acquisition of the Assets of
FFB U.S. TREASURY FUND, FFB 100% U.S. TREASURY FUND
AND FFB U.S. GOVERNMENT FUND
OF
FFB FUNDS TRUST
237 Park Avenue
New York, New York 10017
1-800-437-8790
By and in Exchange for Shares of
EVERGREEN TREASURY MONEY MARKET FUND
OF
EVERGREEN INVESTMENT TRUST
2500 Westchester Avenue
Purchase, NY 10577
1-800-807-2940
This Statement of Additional Information, relating specifically to the
proposed transfer of the assets of the FFB U.S. Treasury Fund, FFB 100% U.S.
Treasury Fund and FFB U.S. Government Fund, each a series of FFB Funds Trust, in
exchange for Class A shares of Evergreen Treasury Money Market Fund, a series of
Evergreen Investment Trust, and the assumption by Evergreen Treasury Money
Market Fund of certain identified liabilities of the FFB U.S. Treasury Fund, FFB
100% U.S. Treasury Fund and FFB U.S. Government Fund, is not a prospectus. A
Prospectus/Proxy Statement dated September 25, 1995 relating to the
above-referenced matter may be obtained from Evergreen Treasury Money Market
Fund, 2500 Westchester Avenue, Purchase, New York 10577 or by calling toll-free
1-800-807-2940. This Statement of Additional Information relates to and should
be read in conjunction with such Prospectus/Proxy Statement.
This Statement of Additional Information incorporates by reference the
following documents, a copy of each of which accompanies this Statement of
Additional Information:
1. The Prospectus of the Evergreen Treasury Money Market
Fund dated July 7, 1995.
2. The Statement of Additional Information of the
Evergreen Treasury Money Market Fund dated July 7,
1995.
3. The Annual Report of the First Union Treasury Money
<PAGE>
Money Market Fund (now known as Evergreen Treasury Money Market Fund)
dated December 31, 1994.
4. The Semi-Annual Report of the First Union Treasury Money Market Fund
(now known as Evergreen Treasury Money Market Fund) dated June 30,
1995.
5. The Prospectus of the FFB U.S. Treasury Fund and FFB
U.S. Government Fund dated June 30, 1995.
6. The Prospectus of the FFB 100% U.S. Treasury Fund dated
October 7, 1994.
7. The Statement of Additional Information of the FFB
U.S. Treasury Fund and FFB U.S. Government Fund dated
June 30, 1995.
8. The Statement of Additional Information of the FFB 100%
U.S. Treasury Fund dated October 7, 1994.
9. The Annual Report of the FFB U.S. Treasury Fund and
FFB U.S. Government Fund dated February 28, 1995.
The following pro forma financial information relates to the FFB U.S.
Treasury Fund, FFB 100% U.S. Treasury Fund and FFB U.S. Government Fund and the
Evergreen Treasury Money Market Fund:
<PAGE>
EVERGREEN TREASURY MONEY MARKET FUND
Pro Forma Combining Financial Statements - June 30, 1995
<TABLE>
<CAPTION>
EVERGREEN TREASURY U.S. GOVERNMENT
MONEY MARKET FUND FUND
June 30, 1995 June 30, 1995
Principal Principal
SECURITY DESCRIPTION Amount Value Amount Value
<S> <C> <C> <C> <C> <C>
Mutual Fund Shares 1.3%
Fidelity U.S. Treasury,
Inc. Portfolio 34,366,376 34,366,376
Total Mutual Fund Shares $34,366,376
Repurchase Agreements * 58.3%
Aubrey G. Lanston & Co.,
Inc. 6.05%, dated 6/30/95,
due 7/3/95
Barclays Bank PLC, 5.90%,
dated 6/30/95, due 7/5/95 60,000,000 60,000,000
BZW Securities, Inc.
5.90%, dated 6/30/95,
due 7/3/95
Chemical Bank, 6.10%,
dated 6/30/95, due 7/3/95
Dean Witter Reynolds, Inc.,
6.00%, dated 6/30/95, due 7/5/95 60,000,000 60,000,000
Donaldson, Lufkin & Jenrette
Securities Inc., 6.00%,
dated 6/30/95, due 7/3/95 50,045,000 50,045,000
Donaldson, Lufkin & Jenrette
Securities, Inc., 6.05%,
dated 6/30/95, due 7/3/95
First Boston Corp. 5.95%,
dated 6/30/95, due 7/3/95 60,000,000 60,000,000
Fuji Securities, Inc., 6.05%,
dated 6/26/95, due 7/5/95 100,000,000 100,000,000
Goldman, Sachs & Co., 6.00%,
dated 6/30/95, due 7/3/95
Goldman, Sachs & Co., 5.95%,
dated 6/30/95, due 7/5/95 60,000,000 60,000,000
HSBC Securities, Inc. 5.90%,
dated 6/30/95, due 7/5/95 60,000,000 60,000,000
Lehman Brothers, 6.15%,
dated 6/30/95, due 7/3/95
Merrill Lynch, 5.75%, dated
6/30/95, due 7/5/95 60,000,000 60,000,000
Morgan Guaranty Trust Co.
of New York, 6.00%,
dated 6/26/95 due 7/5/95 100,000,000 100,000,000
Morgan Stanley, 6.1%,
dated 6/30/95, due 7/7/95
NationsBank, Charlotte NC
6.18%, dated 6/30/95,
due 7/5/95 100,000,000 100,000,000
Nikko Securities Co.
International, Inc. 6.10%,
dated 6/26/95, due 7/5/95 100,000,000 100,000,000
Prudential Securities, Inc.
6.01%, dated 6/22/95,
due 7/3/95
Shearson Lehman Brothers
6.10%, dated 6/30/95,
due 7/5/95 100,000,000 100,000,000
Smith Barney & Co.
6.1%, dated 6/30/95,
due 7/3/95
Smith Barney Securities, Inc
6.25%, dated 6/30/95,
due 7/3/95 18,977,000 18,977,000
State Street Bank,
5.85%, dated 6/30/95,
due 7/5/95 60,000,000 60,000,000
UBS Securities Inc.,
6.05%, dated 6/28/95,
due 7/5/95 +,**
UBS Securities Inc.,
6.1%, dated 6/30/95,
due 7/3/95
UBS Securities, Inc.
6.35%, dated 6/30/95,
due 7/3/95 +,** 20,000,000 20,000,000
Total Repurchase
Agreements $970,045,000 $38,977,000
U.S. Agency Obligations 7.2%
Federal Farm Credit
Bank Bonds 5.91% 7/5/95** 10,000,000 9,993,556
Federal Farm Credit
Bank Bonds 5.87% 7/6/95** 10,000,000 9,992,000
Federal Farm Credit
Bank Bonds 6.08% 7/5/95** 5,000,000 5,000,000
Federal Farm Credit
Bank Bonds 6.76% 7/5/95** 5,000,000 5,000,000
Federal Farm Credit
Bank Bonds 5.98% 9/1/95** 10,000,000 10,000,000
Federal Home Loan
Bank 5.84% 9/6/95** 5,000,000 4,947,144
Federal Home Loan
Bank 6.22% 11/2/95** 10,000,000 9,795,056
Fed. Home Loan Mtge.
Corp. Disc. Note 6.08% 7/13/95** 5,000,000 4,990,150
Fed. Home Loan Mtge.
Corp. Disc. Note 6% 8/3/95** 10,000,000 9,946,467
Fed. Home Loan Mtge.
Corp. Disc. Note 6.12% 8/10/95** 5,000,000 4,899,350
Fed. Home Loan Mtge.
Corp. Disc. Note 6.03% 8/11/95** 7,000,000 6,953,283
Fed. Home Loan Mtge.
Corp. Disc. Note 5.74% 8/2/95** 10,000,000 9,950,133
Fed. Home Loan Mtge.
Corp. Disc. Note 6.03% 8/22/95** 5,000,000 4,957,678
Fed. Home Loan Mtge.
Corp. Disc. Note 6.01% 9/7/95** 5,000,000 4,946,167
Federal National
Mortgage Association
6.03% 7/11/95** 5,000,000 4,991,833
Federal National
Mortgage Association
6.04% 7/19/95** 5,000,000 4,985,300
Federal National
Mortgage Association
6.03% 8/4/95** 3,000,000 2,983,368
Federal National
Mortgage Association
5.98% 8/14/95** 5,000,000 4,964,311
Federal National
Mortgage Association
6.09% 8/22/95** 10,000,000 9,915,066
Federal National
Mortgage Association
6.21% 8/25/95** 10,000,000 10,000,000
Federal National
Mortgage Association
5.92% 8/28/95** 5,000,000 4,953,439
Federal National
Mortgage Association
5.94% 9/1/95** 10,000,000 9,900,628
Federal National
Mortgage Association
5.91% 9/5/95** 5,000,000 4,947,292
Federal National
Mortgage Association
5.97% 9/14/95** 5,000,000 4,939,583
Federal National
Mortgage Association
6.28% 9/26/95** 5,000,000 4,927,500
Federal National
Mortgage Association
6.01% 2/16/96** 10,000,000 10,000,000
Student Loan
Marketing Association
5.63% 11/9/95** 10,000,000 10,000,000
Total U.S.
Agency Obligations 0 0 $188,879,304
</TABLE>
<TABLE>
<CAPTION>
100% U.S. TREASURY
SECURITIES PRO FORMA
June 30, 1995 COMBINED
ADJUSTMENTS
Principal Principal
SECURITY DESCRIPTION Amount Value Amount Value
<S> <C> <C> <C> <C> <C> <C> <C>
Mutual Fund Shares
Fidelity U.S. Treasury,
Inc. Portfolio 34,366,376 34,366,376
Total Mutual Fund Shares $34,366,376
Repurchase Agreements *
Aubrey G. Lanston & Co.,
Inc. 6.05%, dated 6/30/95,
due 7/3/95 60,000,000 60,000,000 60,000,000 60,000,000
Barclays Bank PLC, 5.90%,
dated 6/30/95, due 7/5/95 60,000,000 60,000,000
BZW Securities, Inc.
5.90%, dated 6/30/95,
due 7/3/95 40,000,000 40,000,000 40,000,000 40,000,000
Chemical Bank, 6.10%,
dated 6/30/95, due 7/3/95 45,000,000 45,000,000 45,000,000 45,000,000
Dean Witter Reynolds, Inc.,
6.00%, dated 6/30/95, due 60,000,000 60,000,000
Donaldson, Lufkin & Jenrette
Securities Inc., 6.00%,
dated 6/30/95, due 7/3/95 50,045,000 50,045,000
Donaldson, Lufkin & Jenrette
Securitities, Inc., 6.05%,
dated 6/30/95, due 7/3/95 41,818,000 41,818,000 41,818,000 41,818,000
First Boston Corp. 5.95%,
dated 6/30/95, due 7/3/95 60,000,000 60,000,000
Fuji Securities, Inc., 6.05%,
dated 6/26/95, due 7/5/95 100,000,000 100,000,000
Goldman, Sachs & Co., 6.00%,
dated 6/30/95, due 7/3/95 50,000,000 50,000,000 50,000,000 50,000,000
Goldman, Sachs & Co., 5.95%,
dated 6/30/95, due 7/5/9 60,000,000 60,000,000
HSBC Securities, Inc. 5.90%,
dated 6/30/95, due 7/5/9 60,000,000 60,000,000
Lehman Brothers, 6.15%,
dated 6/30/95, due 7/3/95 50,000,000 50,000,000 50,000,000 50,000,000
Merrill Lynch, 5.75%, dated
6/30/95, due 7/5/95 60,000,000 60,000,000
Morgan Guaranty Trust Co.
of New York, 6.00%,
dated 626/96 due 7/5/95 100,000,000 100,000,000
Morgan Stanley, 6.1%,
dated 6/30/95, due 7/7/95 60,000,000 60,000,000 60,000,000 60,000,000
NationsBank, Charlotte NC
6.18%, dated 6/30/95,
due 7/5/95 100,000,000 100,000,000
Nikko Securities Co.
International, Inc. 6.10%,
dated 6/26/95, due 7/5/95 100,000,000 100,000,000
Prudential Securities, Inc.
6.01%, dated 6/22/95,
due 7/3/95 50,000,000 50,000,000 50,000,000 50,000,000
Shearson Lehman Brothers
6.10%, dated 6/30/95,
due 7/5/95 100,000,000 100,000,000
Smith Barney & Co.
6.1%, dated 6/30/95,
due 7/3/95 50,000,000 50,000,000 50,000,000 50,000,000
Smith Barney Securities, Inc
6.25%, dated 6/30/95,
due 7/3/95 18,977,000 18,977,000
State Street Bank,
5.85%, dated 6/30/95,
due 7/5/95 60,000,000 60,000,000
UBS Securities Inc.,
6.05%, dated 6/28/95,
due 7/5/95 44,771,000 44,771,000 44,771,000 44,771,000
UBS Securities Inc.,
6.1%, dated 6/30/95,
due 7/3/95 30,000,000 30,000,000 30,000,000 30,000,000
UBS Securities, Inc.
6.35%, dated 6/30/95,
due 7/3/95 20,000,000 20,000,000
Total Repurchase
Agreements $521,589,000 0 0 0 $1,530,611,000
U.S. Agency Obligations
Federal Farm Credit
Bank Bonds 5.91% 7/5/95** 10,000,000 9,993,556
Federal Farm Credit
Bank Bonds 5.87% 7/6/95** 10,000,000 9,992,000
Federal Farm Credit
Bank Bonds 6.08% 7/5/95** 5,000,000 5,000,000
Federal Farm Credit
Bank Bonds 6.76% 7/5/95** 5,000,000 5,000,000
Federal Farm Credit
Bank Bonds 5.98% 9/1/95** 10,000,000 10,000,000
Federal Home Loan
Bank 5.84% 9/6/95** 5,000,000 4,947,144
Federal Home Loan
Bank 6.22% 11/2/95** 10,000,000 9,795,056
Fed. Home Loan Mtge.
Corp. Disc. Note 6.08% 7/13/95** 5,000,000 4,990,150
Fed. Home Loan Mtge.
Corp. Disc. Note 6% 8/3/95** 10,000,000 9,946,467
Fed. Home Loan Mtge.
Corp. Disc. Note 6.12% 8/10/95** 5,000,000 4,899,350
Fed. Home Loan Mtge.
Corp. Disc. Note 6.03% 8/11/95** 7,000,000 6,953,283
Fed. Home Loan Mtge.
Corp. Disc. Note 5.74% 8/2/95** 10,000,000 9,950,133
Fed. Home Loan Mtge.
Corp. Disc. Note 6.03% 8/22/95** 5,000,000 4,957,678
Fed. Home Loan Mtge.
Corp. Disc. Note 6.01% 9/7/95** 5,000,000 4,946,167
Federal National
Mortgage Association
6.03% 7/11/95** 5,000,000 4,991,833
Federal National
Mortgage Association
6.04% 7/19/95** 5,000,000 4,985,300
Federal National
Mortgage Association
6.03% 8/4/95** 3,000,000 2,983,368
Federal National
Mortgage Association
5.98% 8/14/95** 5,000,000 4,964,311
Federal National
Mortgage Association
6.09% 8/22/95** 10,000,000 9,915,066
Federal National
Mortgage Association
6.21% 8/25/95** 10,000,000 10,000,000
Federal National
Mortgage Association
5.92% 8/28/95** 5,000,000 4,953,439
Federal National
Mortgage Association
5.94% 9/1/95** 10,000,000 9,900,628
Federal National
Mortgage Association
5.91% 9/5/95** 5,000,000 4,947,292
Federal National
Mortgage Association
5.97% 9/14/95** 5,000,000 4,939,583
Federal National
Mortgage Association
6.28% 9/26/95** 5,000,000 4,927,500
Federal National
Mortgage Association
6.01% 2/16/96** 10,000,000 10,000,000
Student Loan
Marketing Association
5.63% 11/9/95** 10,000,000 10,000,000
Total U.S.
Agency Obligations 0 0 0 0 0 0 $188,879,304
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
U.S.Treasury Bills 15.1%
U.S. Treasury Bills 5.38% 5/30/96 70,000 66,498
U.S. Treasury Bills 5.51%, 9/21/95
U.S. Treasury Bills 5.57%, 11/02/95 20,000,000
U.S. Treasury Bills 5.61%, 10/12/95
U.S. Treasury Bills 5.62%, 10/12/95 10,000,000
U.S. Treasury Bills 5.62%, 12/07/95 20,000,000
U.S. Treasury Bills 5.63%, 8/31/95
U.S. Treasury Bills 5.63%, 12/14/95
U.S. Treasury Bills 5.63%, 9/14/95 20,000,000
U.S. Treasury Bills 5.63%, 9/21/95 35,000,000
U.S. Treasury Bills 5.65%, 8/31/95 30,000,000
U.S. Treasury Bills 5.68%, 9/07/95 25,000,000
U.S. Treasury Bills 5.75%, 7/6/95
U.S. Treasury Bills 5.76%, 11/24/95
U.S. Treasury Bills 5.77%, 8/24/95
U.S. Treasury Bills 5.77%, 11/24/95 25,000,000
U.S. Treasury Bills 5.78%, 5/30/96 55,000
U.S. Treasury Bills 5.78%, 7/27/95 25,000,000
U.S. Treasury Bills 5.79%, 5/30/96
U.S. Treasury Bills 5.8%, 8/03/95 40,000,000
U.S. Treasury Bills 5.81%, 7/27/95
U.S. Treasury Bills 5.82%, 8/3/95
U.S. Treasury Bills 5.83%, 8/10/95
U.S. Treasury Bills 5.84%, 8/10/95 40,000,000
U.S. Treasury Bills 5.84%, 8/17/95 40,000,000
U.S. Treasury Bills 5.84%, 9/7/95
U.S. Treasury Bills 5.85%, 8/24/95 25,000,000
U.S. Treasury Bills 5.94%, 10/19/95
U.S. Treasury Bills 6.08%, 7/20/95 20,000,000
U.S. Treasury Bills 6.48%, 4/04/96 10,000,000
Total U.S. Treasury Bills 70,000 $66,498 385,055,000
U.S. Treasury Notes 18.1%
U.S. Treasury Notes, 3.75%, 8/15/95 50,000,000
U.S. Treasury Notes, 3.89%, 9/30/95 25,000,000
U.S. Treasury Notes, 4.25%, 7/31/95 25,000,000 24,961,825
U.S. Treasury Notes, 4.25%, 7/31/95 50,000,000 49,913,720
U.S. Treasury Notes, 4.25%, 8/15/95 30,000,000 29,937,059
U.S. Treasury Notes, 4.31%, 7/31/95 30,000,000
U.S. Treasury Notes, 4.625%, 2/29/96 50,000,000 49,498,184
U.S. Treasury Notes, 6.10%, 11/30/95 20,000,000
U.S. Treasury Notes, 7.375%, 5/15/95 40,000,000 40,536,330
U.S. Treasury Notes, 8.50%, 11/15/95 25,000,000 25,182,633
U.S. Treasury Notes, 8.875%, 2/15/96 25,000,000 25,439,307
U.S. Treasury Notes, 9.25%, 1/15/96 25,000,000 25,372,151
U.S. Treasury Notes, 9.25%, 1/15/96 20,000,000 20,298,181
U.S. Treasury Notes, 9.25%, 1/15/96 40,000,000 40,543,293
U.S. Treasury Notes, 10.50%, 8/15/95 20,000,000 20,096,917
Total U.S. Treasury Notes $351,779,600 0 0
Total Investments (Cost $2,626,957,875)*** 100.0% 1,356,190,976 227,922,802 0
Other Assets & Liabilities -0.0% 3,042,592 (343,859)
Net Assets 100.0% 1,359,233,567 227,578,944
</TABLE>
* Unless otherwise noted, the repurchase agreements are fully
collateralized by U.S.Treasury obligations based on market prices
at the date of the portfolio.
+ The repurchase agreement is fully collateralized by U.S. Government
and/or agency obligation based on market prices at the date of the
portfolio.
**This investment does not comply with the investment objective of the
Evergreen Treasury Money Market Fund. Such investment will be sold
prior to the date of the merger. In its place, securities will be
purchased that comply with the investment objectives of the Evergreen
Treasury Money Market Fund.
*** Also represents cost for federal tax purposes.
(See Notes which are an integral part of the Pro-Forma Financial
Statements)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
U.S.Treasury Bills
U.S. Treasury Bills 5.38% 5/30/96 70,000 66,498
U.S. Treasury Bills 5.51%, 9/21/95 2,350,000 2,321,330 2,350,000 2,321,330
U.S. Treasury Bills 5.57%, 11/02/95 19,629,033 20,000,000 19,629,033
U.S. Treasury Bills 5.61%, 10/12/95 486,000 478,422 486,000 478,422
U.S. Treasury Bills 5.62%, 10/12/95 9,843,783 10,000,000 9,843,783
U.S. Treasury Bills 5.62%, 12/07/95 19,523,000 20,000,000 19,523,000
U.S. Treasury Bills 5.63%, 8/31/95 721,000 714,312 721,000 714,312
U.S. Treasury Bills 5.63%, 12/14/95 1,100,000 1,072,610 1,100,000 1,072,610
U.S. Treasury Bills 5.63%, 9/14/95 19,772,292 20,000,000 19,772,292
U.S. Treasury Bills 5.63%, 9/21/95 34,563,692 35,000,000 34,563,692
U.S. Treasury Bills 5.65%, 8/31/95 29,720,417 30,000,000 29,720,417
U.S. Treasury Bills 5.68%, 9/07/95 24,739,333 25,000,000 24,739,333
U.S. Treasury Bills 5.75%, 7/6/95 621,000 620,516 621,000 620,516
U.S. Treasury Bills 5.76%, 11/24/95 576,000 563,063 576,000 563,063
U.S. Treasury Bills 5.77%, 8/24/95 529,000 524,549 529,000 524,549
U.S. Treasury Bills 5.77%, 11/24/95 24,438,306 25,000,000 24,438,306
U.S. Treasury Bills 5.78%, 5/30/96 52,250 55,000 52,250
U.S. Treasury Bills 5.78%, 7/27/95 24,898,094 25,000,000 24,898,094
U.S. Treasury Bills 5.79%, 5/30/96 10,000 9,500 10,000 9,500
U.S. Treasury Bills 5.8%, 8/03/95 39,793,017 40,000,000 39,793,017
U.S. Treasury Bills 5.81%, 7/27/95 981,000 976,983 981,000 976,983
U.S. Treasury Bills 5.82%, 8/3/95 2,667,000 2,653,179 2,667,000 2,653,179
U.S. Treasury Bills 5.83%, 8/10/95 2,523,000 2,507,094 2,523,000 2,507,094
U.S. Treasury Bills 5.84%, 8/10/95 39,747,667 40,000,000 39,747,667
U.S. Treasury Bills 5.84%, 8/17/95 39,703,117 40,000,000 39,703,117
U.S. Treasury Bills 5.84%, 9/7/95 1,739,000 1,720,449 1,739,000 1,720,449
U.S. Treasury Bills 5.85%, 8/24/95 24,786,812 25,000,000 24,786,812
U.S. Treasury Bills 5.94%, 10/19/95 1,221,000 1,199,735 1,221,000 1,199,737
U.S. Treasury Bills 6.08%, 7/20/95 19,938,107 20,000,000 19,938,107
U.S. Treasury Bills 6.48%, 4/04/96 9,536,667 10,000,000 9,536,667
Total U.S. Treasury Bills 380,685,587 15,361,742 396,113,827
U.S. Treasury Notes
U.S. Treasury Notes, 3.75%, 8/15/95 49,912,517 50,000,000 49,912,517
U.S. Treasury Notes, 3.89%, 9/30/95 24,871,798 25,000,000 24,871,798
U.S. Treasury Notes, 4.25%, 7/31/95 25,000,000 24,961,825
U.S. Treasury Notes, 4.25%, 7/31/95 50,000,000 49,913,720
U.S. Treasury Notes, 4.25%, 8/15/95 30,000,000 29,937,059
U.S. Treasury Notes, 4.31%, 7/31/95 29,955,528 30,000,000 29,955,528
U.S. Treasury Notes, 4.625%, 2/29/96 50,000,000 49,498,184
U.S. Treasury Notes, 6.10%, 11/30/95 19,852,623 20,000,000 19,852,623
U.S. Treasury Notes, 7.375%, 5/15/95 40,000,000 40,536,330
U.S. Treasury Notes, 8.50%, 11/15/95 25,000,000 25,182,633
U.S. Treasury Notes, 8.875%, 2/15/96 25,000,000 25,439,307
U.S. Treasury Notes, 9.25%, 1/15/96 25,000,000 25,372,151
U.S. Treasury Notes, 9.25%, 1/15/96 20,000,000 20,298,181
U.S. Treasury Notes, 9.25%, 1/15/96 40,000,000 40,543,293
U.S. Treasury Notes, 10.50%, 8/15/95 20,000,000 20,096,917
Total U.S. Treasury Notes 124,592,466 0 476,372,066
Total Investments (Cost $2,626,342,573)*** 1,026,867,053 15,361,742 2,626,342,573
Other Assets & Liabilities (2,667,382) (65,805) (34,452)
Net Assets $1,024,199,671 $15,295,939 $2,626,308,121
</TABLE>
* The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of the
portfolio.
** This investment does not comply with the investment objective of the
Evergreen Treasury Money Market Fund. Such investment will be sold
prior to the date of the merger. In its place, securities will be
purchased that comply with the investment objectives of the Evergreen
Treasury Money Market Fund.
*** Also represents cost for federal tax purposes.
(See Notes which are an integral part of the Pro-Forma Financial
Statements)
<PAGE>
<TABLE>
<CAPTION>
Evergreen FFB US FFB US FFB 100% US
Treasury Money Government Treasury Treasury Pro Forma
Market Fund Fund Fund Fund Adjustments Combined
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ASSETS
Investments in securities, at
amortized cos
(Cost $2,626,342,573) $1,356,190,976 $227,922,802 $1,026,867,053 $ 15,361,742 $2,626,342,573
Cash (2,300) 0 211,878 933 441,733 (1) 652,244
Interest receivable 9,062,233 516,483 1,885,586 0 11,464,302
Receivable for investment securities 0 0 0 0 0
Receivable for fund shares sold 0 0 0 0 0
Unamortized organizational costs 0 0 0 48,438 (48,438)(1) 0
Other assets 0 26,336 10,838 0 37,174
Prepaid expenses 8,363 241,269 123,586 129 (443,295)(1) (69,948)
TOTAL ASSETS 1,365,259,272 228,706,890 1,029,098,941 15,411,242 (50,000) 2,638,426,345
LIABILITIES:
purchased 0 0 0 0
Organizational payable 0 0 0 50,000 (50,000)(1) 0
Payable for fund shares repurchased 0 0 0 0 0
Dividends payable 5,831,825 946,303 4,213,062 64,169 11,055,359
Accrued advisory fee 0 63,439 259,507 0 322,946
Accrued expenses 193,880 118,204 426,701 1,134 739,919
TOTAL LIABILITIES 6,025,705 1,127,946 4,899,270 115,303 (50,000) 12,118,224
NET ASSETS $1,359,233,567 $227,578,944 $1,024,199,671 $15,295,939 0 $2,626,308,121
NET ASSETS CONSIST OF:
Paid in capital 1,359,233,567 227,578,944 1,024,199,671 15,295,545 2,626,307,727
Accumulated net realized gain on
investments 0 0 0 394 394
NET ASSETS 1,359,233,567 227,578,944 1,024,199,671 15,295,939 0 2,626,308,121
Net asset value and offering price per share:
Class A $1.00 $1.00 $1.00 $1.00 $1.00
Class Y $1.00 - - - $1.00
Net Assets:
Class A 1,046,706,925 227,578,944 1,024,199,671 15,295,939 2,313,781,479
Class Y 312,526,642 - - - 312,526,642
Shares outstanding:
Class A 1,046,706,925 227,578,944 1,024,199,671 15,295,939 2,313,781,479
Class Y 312,526,642 - - - 312,526,642
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(See Notes which are an integral part of the Pro Forma Financial Statements)
(1)To eliminate deferred organizational costs and prepaid expenses that will
not be utillized by the combined fund
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Evergreen FFB US FFB US FFB 100% US
Treasury Money Government Treasury Treasury Pro Forma
Market Fund Fund Fund Fund(1) Adjustments Combined
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INVESTMENT INCOME
Interest income $52,849,204 $11,640,018 $37,089,425 $149,578 $101,728,225
EXPENSES:
Investment advisory fee 3,368,887 749,918 2,321,196 3,592 68,074 (2) 6,511,667
Trustees' fees 16,913 6,340 6,339 739 (662)(3) 29,669
Administrative personnel and
service fees 800,629 310,153 974,613 2,052 (1,145,674)(2) 941,773
Custodian and portfolio accounting
fees 217,016 64,153 192,451 0 (23,404)(4) 450,216
Shareholder servicing fees 0 62,406 220,730 0 (283,136)(6) 0
Transfer and dividend disbursing a 75,550 8,265 6,871 422 2,289 (8) 93,397
Distribution services fees - Class A 2,257,858 25,487 88,732 0 2,606,103 (5) 4,978,180
Fund share registration costs 72,441 65,961 124,238 360 (143,055)(3) 119,945
Professional fees 19,074 17,522 51,284 720 (59,989)(3) 28,611
Printing and postage 19,348 7,393 17,114 729 (7,697)(7) 36,887
Insurance premiums 12,042 7,265 23,185 31 (27,481)(7) 15,042
Organizational exp 0 0 0 1,562 (1,562)(7) 0
Miscellaneous 12,183 42,911 84,285 1,867 (122,971)(7) 18,275
TOTAL EXPENSES 6,871,941 1,367,774 4,111,038 12,074 860,835 13,223,662
Less fee waiver and expense
reimbursements (1,826,946) (13,580) (13,278) (5,644) (1,670,894)(9) (3,530,342)
NET EXPENSES 5,044,995 1,354,194 4,097,760 6,430 (810,059) 9,693,320
NET INVESTMENT INCOME 47,804,209 10,285,824 32,991,665 143,148 810,059 92,034,905
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(See Notes which are an integral part of the Pro Forma Financial Statements)
(1)For the period from April 10, 1995 (Commencement of operations) to June 30,
1995.
(2)Reflects an increase in investment advisory fee and a decrease in
administrative personnel and service fees based on the surviving Fund's
fee schedule.
(3)Reflects elimination of duplicate service fees.
(4)Based on surviving Fund's contract in effect for custodian and portfolio
accounting services.
(5)Reflects an increase in distribution service fees for Class A shares
based on the surviving Fund's fee schedule and combined Class A net assets
(6)Reflects the elimination of a shareholder service fee that is not
applicable under the surviving Fund's fee structure
(7)Adjustment reflects the anticipated cost savings when the Fund's combine.
(8)Reflects anticipated expenses of the combined Fund.
(9)Reflects an increase in waiver of investment advisory fee based on the
surviving Fund's voluntary advisory fee waiver in effect for the year
ended June 30, 1995.
Evergreen Treasury Money Market Fund
Notes to Pro Forma Combining Financial Statements (Unaudited)
June 30, 1995
1. Basis of Combination - The Pro forma Statement of Assets and
Liabilities, including the Pro Forma Portfolio of Investments, and the
related Pro Forma Statement of Operations ("Pro forma Statements") reflects
the accounts of Evergreen Treasury Money Market Fund ("Evergreen"),
FFB U.S. Government Fund, FFB U.S. Treasury Fund and FFB 100% U.S.
Treasury Fund (collectively referred to as FFB Funds ) at June 30,
1995 and for the year then ended.
The Pro forma Statements give effect to the proposed transfer of
all assets and liabilities of each of the FFB Funds in exchange for
shares of Evergreen. The Pro forma Statements do not reflect the
expense of any of the Funds in carrying out their obligations under
the Agreement and Plan of Reorganization. The actual fiscal year
end of the combined Fund will be August 31, the fiscal year end of
Evergreen.
The Reorganization will be accomplished through a series of
acquisitions of substantially all of the assets of each of the FFB
Funds by Evergreen, and the assumption by Evergreen of certain
identified liabilities of each of the FFB Funds. Thereafter there
will be a distribution of such shares of Evergreen to
shareholders of each of the FFB Funds in liquidation of and
subsequent termination of each of the FFB Funds. The information
contained herein is based on the experience of each Fund for the year
or period ended June 30, 1995 and is designed to permit shareholders
of the FFB Funds to evaluate the financial effect of the proposed
Reorganization. The expenses of Evergreen in connection with the
Reorganization (including the cost of any proxy soliciting agents),
will be borne by Capital Management Group of First Union National
Bank of North Carolina (the "Adviser"). The expenses of each of
the FFB Funds incurred in connection with the Reorganization will
be borne by the
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Adviser. No portion of such expenses shall be borne directly or
indirectly by the FFB Funds or their shareholders.
The Pro forma Statements should be read in conjunction with the
historical financial statements of each Fund incorporated by reference
in the Statement of Additional Information.
2. Shares of Beneficial Interest - The pro forma net asset value per
share assumes the issuance of additional shares of Evergreen Class
A which would have been issued at June 30, 1995 in connection
with the proposed reorganization. The amount of additional shares
assumed to be issued was calculated based on the June 30,
1995 net assets of each of the FFB Funds as shown below and the net
asset value per share of Evergreen of $1:
Net Assets
FFB U.S. Government Fund $ 227,578,944
FFB U.S. Treasury Fund 1,024,199,671
FFB 100% U.S. Treasury Fund 15,295,939
The pro forma shares outstanding of 2,626,308,121 consist of
1,267,074,554 additional shares to be issued in proposed
reorganization, as calculated above, plus 1,359,233,567 shares of
Evergreen outstanding as of June 30, 1995.
3. Pro Forma Operations - The Pro Forma Statement of Operations
assumes similar rates of gross investment income for the
investments of each Fund. Accordingly, the combined gross
investment income is equal to the sum of each Fund's gross
investment income. Pro forma operating expenses include the actual
expenses of the Funds and the combined Fund, with certain expenses
adjusted to reflect the expected expenses of the combined entity.
The investment advisory fee, administrative personnel and service
fees, and distribution service fees have been charged to the
combined Fund based on the fee schedule in effect for Evergreen at
the combined level of average net assets for the year ended June
30, 1995. The Adviser
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may, at its discretion, waive its fee or reimburse the Fund for
certain of its expenses in order to reduce the Fund's expense
ratio. An adjustment has been made to the combined Fund expenses
to increase the waiver of investment advisory fee based on the
voluntary advisory fee waiver in effect for Evergreen for the year ended
June 30, 1995. The Adviser may, at its discretion, revise or cease this
voluntary fee waiver at any time.
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