EVERGREEN INVESTMENT TRUST, 497, 1996-06-05

EVERGREEN INVESTMENT TRUST
497, 1996-06-05

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<PAGE>
PROSPECTUS May 17, 1996
EVERGREEN(SM) INTERNATIONAL/GLOBAL GROWTH FUNDS (Tree logo appears here)

EVERGREEN EMERGING MARKETS GROWTH FUND
EVERGREEN INTERNATIONAL EQUITY FUND
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
EVERGREEN GLOBAL LEADERS FUND

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

The Evergreen International/Global Growth Funds (the "Funds") are
designed to provide investors with a selection of investment alternatives
which seek to provide capital growth and diversification. This Prospectus
provides information regarding the Class A, Class B and Class C shares
offered by the Funds. Each Fund is, or is a series of, an open-end,
diversified, management investment company. This Prospectus sets forth
concise information about the Funds that a prospective investor should know
before investing. The address of the Funds is 2500 Westchester Avenue,
Purchase, New York 10577.

A "Statement of Additional Information" for the Funds dated May
17, 1996 has been filed with the Securities and Exchange Commission and is
incorporated by reference herein. The Statement of Additional Information
provides information regarding certain matters discussed in this Prospectus
and other matters which may be of interest to investors, and may be
obtained without charge by calling the Funds at (800) 235-0064. There can
be no assurance that the investment objective of any Fund will be achieved.
Investors are advised to read this Prospectus carefully.

THE SHARES OFFERED BY THIS PROSPECTUS ARE NOT DEPOSITS OR OBLIGATIONS OF
ANY BANK, ARE NOT ENDORSED OR GUARANTEED BY ANY BANK, AND ARE NOT INSURED
OR OTHERWISE PROTECTED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER GOVERNMENT
AGENCY AND INVOLVE RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.

KEEP THIS PROSPECTUS FOR FUTURE REFERENCE

EVERGREEN(SM) is a Service Mark of Evergreen Asset Management Corp. Copyright
1995, Evergreen Asset Management Corp.

<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
OVERVIEW OF THE FUNDS 2
EXPENSE INFORMATION 3
FINANCIAL HIGHLIGHTS 5
DESCRIPTION OF THE FUNDS 10
Investment Objectives and Policies 10
Investment Practices and Restrictions 12
MANAGEMENT OF THE FUNDS 19
Investment Advisers 19
Sub-Advisers 21
Distribution Plans and Agreements 21
PURCHASE AND REDEMPTION OF SHARES 22
How to Buy Shares 22
How to Redeem Shares 25
Exchange Privilege 26
Shareholder Services 27
Effect of Banking Laws 27
OTHER INFORMATION 28
Dividends, Distributions and Taxes 28
General Information 29
</TABLE>

OVERVIEW OF THE FUNDS
The following summary is qualified in its entirety by the more detailed
information contained elsewhere in this Prospectus. See "Description of the
Funds" and "Management of the Funds".
The investment adviser to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and
EVERGREEN GLOBAL LEADERS FUND is Evergreen Asset Management Corp. ("Evergreen
Asset") which, with its predecessors, has served as an investment adviser to the
Evergreen mutual funds since 1971. Evergreen Asset is a wholly-owned subsidiary
of First Union National Bank of North Carolina, which in turn is a subsidiary of
First Union Corporation, the sixth largest bank holding company in the United
States. The Capital Management Group of First Union National Bank of North
Carolina ("CMG") serves as investment adviser to EVERGREEN EMERGING MARKETS
GROWTH FUND and EVERGREEN INTERNATIONAL EQUITY FUND.
EVERGREEN EMERGING MARKETS GROWTH FUND (formerly First Union Emerging
Markets Growth Portfolio) seeks to provide long-term capital appreciation. The
EVERGREEN EMERGING MARKETS GROWTH FUND invests in equity securities of issuers
located in countries with emerging markets.
EVERGREEN INTERNATIONAL EQUITY FUND (formerly First Union International
Equity Portfolio) seeks to provide long-term capital appreciation. The EVERGREEN
INTERNATIONAL EQUITY FUND invests in equity securities of non-U.S. issuers.
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND seeks long-term capital growth.
Current income is a secondary objective. It invests primarily in equity
securities of United States and non-United States companies which are
principally engaged in the real estate industry or which own significant real
estate assets. It will not purchase direct interests in real estate.
EVERGREEN GLOBAL LEADERS FUND seeks to achieve capital appreciation by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
The Fund's investment adviser will attempt to screen the largest companies in
the world's major industrialized countries and cause the Fund to invest, in the
opinion of the Fund's investment adviser, in the 100 best based on certain
qualitative and quantitative criteria, including those with the highest return
on equity and consistent earnings growth.
THERE IS NO ASSURANCE THAT THE INVESTMENT OBJECTIVE OF ANY FUND WILL BE
ACHIEVED.
2

<PAGE>
EXPENSE INFORMATION
The table set forth below summarizes the shareholder transaction costs
associated with an investment in each Class A, Class B and Class C Shares of a
Fund. For further information see "Purchase and Redemption of Shares" and
"General Information -- Other Classes of Shares".
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES Class A Shares Class B Shares Class C Shares
<S> <C> <C> <C>
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) 4.75% None None
Sales Charge on Dividend Reinvestments None None None
Contingent Deferred Sales Charge 5% during the first year, 4% during the 1% during the
(as a % of original purchase price or redemption second year, 3% during the third and fourth first year
proceeds, whichever is lower) years, 2% during the fifth year, 1% during and 0%
None the sixth year and 0% after the sixth year thereafter
Redemption Fee None None None
Exchange Fee None None None
</TABLE>

The following tables show for each Fund the estimated annual operating
expenses (as a percentage of average net assets) attributable to each Class of
Shares, together with examples of the cumulative effect of such expenses on a
hypothetical $1,000 investment in each Class for the periods specified assuming
(i) a 5% annual return, and (ii) redemption at the end of each period and,
additionally for Class B and C, no redemption at the end of each period.
In the following examples (i) the expenses for Class A Shares assume
deduction of the maximum 4.75% sales charge at the time of purchase, (ii) the
expenses for Class B Shares and Class C Shares assume deduction at the time of
redemption (if applicable) of the maximum contingent deferred sales charge
applicable for that time period, and (iii) the expenses for Class B Shares
reflect the conversion to Class A Shares eight years after purchase (years eight
through ten, therefore, reflect Class A expenses).

EVERGREEN EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING EXPENSES** ASSUMING REDEMPTION AT END OF ASSUMING NO
PERIOD REDEMPTION
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees 1.50% 1.50% 1.50% After 1 Year $ 67 $ 78 $ 38 $ 28 $ 28
12b-1 Fees* .25% .75% .75% After 3 Years $ 107 $ 115 $ 85 $ 85 $ 85
Shareholder Service Fees -- .25% .25% After 5 Years $ 150 $ 165 $ 145 $ 145 $ 145
Other Expenses (a) .25% .25% .25% After 10 Years $ 269 $ 282 $ 308 $ 282 $ 308
Total 2.00% 2.75% 2.75%
</TABLE>

EVERGREEN INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING EXPENSES** ASSUMING REDEMPTION AT END OF ASSUMING NO
PERIOD REDEMPTION
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .80% .80% .80% After 1 Year $ 65 $ 76 $ 36 $ 26 $ 26
12b-1 Fees* .25% .75% .75% After 3 Years $ 102 $ 110 $ 80 $ 80 $ 80
Shareholder Service Fees -- .25% .25% After 5 Years $ 142 $ 157 $ 137 $ 137 $ 137
Other Expenses .78% .78% .78% After 10 Years $ 252 $ 265 $ 291 $ 265 $ 291
Total 1.83% 2.58% 2.58%
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING EXPENSES** ASSUMING REDEMPTION AT END OF ASSUMING NO
PERIOD REDEMPTION
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees 1.00% 1.00% 1.00% After 1 Year $ 65 $ 76 $ 36 $ 26 $ 26
12b-1 Fees* .25% 1.00% 1.00% After 3 Years $ 101 $ 109 $ 79 $ 79 $ 79
Other Expenses (b) .54% .54% .54% After 5 Years $ 140 $ 155 $ 135 $ 135 $ 135
Total 1.79% 2.54% 2.54% After 10 Years $ 248 $ 260 $ 288 $ 260 $ 288
</TABLE>

EVERGREEN GLOBAL LEADERS FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING EXPENSES** ASSUMING REDEMPTION AT END OF ASSUMING NO
PERIOD REDEMPTION
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .95% .95% .95% After 1 Year $ 64 $ 75 $ 35 $ 25 $ 25
12b-1 Fees* .25% 1.00% 1.00% After 3 Years $ 100 $ 108 $ 78 $ 78 $ 78
Other Expenses (b) .55% .55% .55% After 5 Years $ 138 $ 153 $ 133 $ 133 $ 133
Total 1.75% 2.50% 2.50% After 10 Years $ 244 $ 256 $ 256 $ 284 $ 284
</TABLE>

* Class A Shares can pay up to .75 of 1% of average net assets as a 12b-1 Fee.
For the foreseeable future, the Class A 12b-1 Fees will be limited to .25 of
1% of average net assets. For Class B and Class C Shares of EVERGREEN GLOBAL
REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND, a portion of the
12b-1 Fees equivalent to .25 of 1% of average net assets will be shareholder
servicing-related. Distribution-related 12b-1 Fees will be limited to .75 of
1% of average net assets as permitted under the rules of the National
Association of Securities Dealers, Inc.
** The annual operating expenses and examples do not reflect fee waivers and
expense reimbursements for the most recent fiscal period. Actual expenses
net of fee waivers and expense reimbursements for the fiscal period ended
October 31, 1995 or September 30, 1995, as applicable, for Class A, B and C
Shares were as follows (except for EVERGREEN GLOBAL LEADERS FUND, which had
no operations):
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Evergreen Emerging Markets Growth Fund 1.73% 2.48% 2.50%
Evergreen International Equity Fund 1.19% 1.94% 1.94%
Evergreen Global Real Estate Equity Fund 1.61% 2.42% 1.54%
</TABLE>

(a) Reflects agreements by CMG to limit aggregate operating expenses
(including the investment advisory fees, but excluding interest, taxes,
brokerage commissions, Rule 12b-1 Fees, shareholder servicing fees and
extraordinary expenses) of Evergreen Emerging Markets Growth Fund to
1.75% of average net assets for the foreseeable future. Absent such
agreements, the actual annual operating expenses for the Fund for the
period ended October 31, 1995, were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C>
3.97 % 4.72% 4.71%
</TABLE>

(b) Reflects agreements by Evergreen Asset to voluntarily reimburse the
Evergreen Global Real Estate Equity Fund for certain class specific
expenses. Absent such agreements, the actual operating expenses for the
period ended September 30, 1995, were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C>
21.59 % 82.74 % 269.60 %
</TABLE>

From time to time, each Fund's investment adviser may, at its discretion,
reduce or waive its fees or reimburse the Funds for certain of their expenses in
order to reduce their expense ratios. Each Fund's investment adviser may cease
these waivers and reimbursements at any time.
The purpose of the foregoing table is to assist an investor in
understanding the various costs and expenses that an investor in each Class of
Shares of the Funds will bear directly or indirectly. The amounts set forth both
in the tables and in the examples are estimated amounts based on the experience
of each Fund for the most recent fiscal period. Such expenses have been restated
to reflect current fee arrangements and in the case of Funds that did not offer
all of the above-referenced Classes of shares during such periods, the amounts
set forth in the tables are based on the expenses incurred by the Classes which
were offered. THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES OR ANNUAL RETURN. ACTUAL EXPENSES AND ANNUAL RETURN MAY BE
GREATER OR LESS THAN THOSE SHOWN. For a more complete description of the various
costs and expenses borne by the Funds see "Management of the Funds". As a result
of asset-based sales charges, long-term shareholders may pay more than the
economic equivalent of the maximum front-end sales charges permitted under the
rules of the National Association of Securities Dealers, Inc.
4

<PAGE>
FINANCIAL HIGHLIGHTS
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the five most recent fiscal years or the life of
the Fund if shorter for EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN
INTERNATIONAL EQUITY FUND has been audited by KPMG Peat Marwick LLP, each Fund's
independent auditors, for EVERGREEN GLOBAL REAL ESTATE EQUITY FUND has been
audited by Price Waterhouse LLP, the Fund's independent auditors. The
information presented for EVERGREEN GLOBAL LEADERS FUND is unaudited. A report
of KPMG Peat Marwick LLP or Price Waterhouse LLP, as the case may be, on the
audited information with respect to each Fund is incorporated by reference in
the Fund's Statement of Additional Information. The following information for
each Fund should be read in conjunction with the financial statements and
related notes which are incorporated by reference in the Fund's Statement of
Additional Information.
Further information about a Fund's performance is contained in the Fund's
annual report to shareholders, which may be obtained without charge.
EVERGREEN EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
CLASS Y
CLASS A SHARES CLASS B SHARES CLASS C SHARES SHARES
TEN MONTHS SEPTEMBER 6, TEN MONTHS SEPTEMBER 6, TEN MONTHS SEPTEMBER 6, TEN MONTHS
ENDED 1994* ENDED 1994* ENDED 1994* ENDED
OCTOBER THROUGH OCTOBER THROUGH OCTOBER THROUGH OCTOBER
31, DECEMBER 31, 31, DECEMBER 31, 31, DECEMBER 31, 31,
1995# 1994 1995# 1994 1995# 1994 1995#
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $8.17 $10.00 $8.16 $10.00 $8.16 $10.00 $8.17
Income (loss) from investment
operations:
Net investment income (loss)...... .05 -- .01 (.02) .02 (.02) .05
Net realized and unrealized loss
on investments and foreign
currency transactions........... (.32) (1.83) (.32) (1.82) (.34) (1.82) (.30)
Total from investment
operations...................... (.27) (1.83) (.31) (1.84) (.32) (1.84) (.25)
Net asset value, end of period..... $7.90 $8.17 $7.85 $8.16 $7.84 $8.16 $7.92
TOTAL RETURN+...................... (3.3%) (18.3%) (3.8%) (18.4%) (3.9%) (18.4%) (3.1%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $1,117 $867 $1,940 $1,589 $56 $89 $9,355
Ratios to average net assets:
Expenses++**...................... 1.73% 1.78% 2.48% 2.53% 2.50% 2.53% 1.48%
Net investment income
(loss)++**...................... .76% (.12%) .03% (.84%) .72% (.82%) .94%
Portfolio turnover rate............ 65% 17% 65% 17% 65% 17% 65%
<CAPTION>

SEPTEMBER 6,
1994*
THOUGH
DECEMBER 31,
1994
<S> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $10.00
Income (loss) from investment
operations:
Net investment income (loss)...... .01
Net realized and unrealized loss
on investments and foreign
currency transactions........... (1.84)
Total from investment
operations...................... (1.83)
Net asset value, end of period..... $8.17
TOTAL RETURN+...................... (18.3%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $5,878
Ratios to average net assets:
Expenses++**...................... 1.53%
Net investment income
(loss)++**...................... .43%
Portfolio turnover rate............ 17%
</TABLE>

* Commencement of operations.
# The Fund changed its year end from December 31 to October 31.
+ Total return is calculated on net asset value per share for the periods
indicated and is not annualized. Initial sales charges or contingent deferred
sales charges are not reflected.
++ Annualized.
** 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 loss to average net assets,
exclusive of any applicable state expense limitations, would have been the
following:
<TABLE>
<CAPTION>
CLASS Y
CLASS A SHARES CLASS B SHARES CLASS C SHARES SHARES
TEN MONTHS SEPTEMBER 6, TEN MONTHS SEPTEMBER 6, TEN MONTHS SEPTEMBER 6, TEN MONTHS
ENDED 1994* ENDED 1994* ENDED 1994* ENDED
OCTOBER THROUGH OCTOBER THROUGH OCTOBER THROUGH OCTOBER
31, DECEMBER 31, 31, DECEMBER 31, 31, DECEMBER 31, 31,
1995# 1994 1995# 1994 1995# 1994 1995#
<S> <C> <C> <C> <C> <C> <C> <C>
Expenses........................... 3.97% 3.96% 4.72% 4.71% 4.74% 4.71% 3.72%
Net investment loss................ (1.48%) (2.30%) (2.21%) (3.02%) (1.52%) (3.00%) (1.30%)
<CAPTION>

SEPTEMBER 6,
1994*
THOUGH
DECEMBER 31,
1994
<S> <C>
Expenses........................... 3.71%
Net investment loss................ (1.75%)
</TABLE>

SEPTEMBER 2,
1994*
THOUGH
DECEMBER 31,
1994
<S> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $10.00
Income (loss) from investment
operations:
Net investment income.............
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions... (.51)
Total from investment
operations...................... (.49)
Less distributions to shareholders
from net investment income........ (.01)
Net asset value, end of period..... $9.50
TOTAL RETURN+...................... (5.0%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $23,830
Ratios to average net assets:
Expenses++**...................... 1.06%
Net investment income
(loss)++**...................... 1.03%
Portfolio turnover rate............ 1%
</TABLE>

* Commencement of operations.
# The Fund changed its year end from December 31 to October 31.
+ Total return is calculated on net asset value per share for the periods
indicated and is not annualized. Initial sales charge or contingent deferred
sales charges are not reflected.
++ Annualized.
** 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 (loss) to average
net assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
CLASS Y
CLASS A SHARES CLASS B SHARES CLASS C SHARES SHARES
TEN MONTHS SEPTEMBER 2, TEN MONTHS SEPTEMBER 2, TEN MONTHS SEPTEMBER 2, TEN MONTHS
ENDED 1994* ENDED 1994* ENDED 1994* ENDED
OCTOBER THROUGH OCTOBER THROUGH OCTOBER THROUGH OCTOBER
31, DECEMBER 31, 31, DECEMBER 31, 31, DECEMBER 31, 31,
1995# 1994 1995# 1994 1995# 1994 1995#
<S> <C> <C> <C> <C> <C> <C> <C>
Expenses........................... 1.84% 2.09% 2.59% 2.85% 2.59% 2.84% 1.59%
Net investment income (loss)....... .73% .08% .01% (.73%) .14% .02% .93%
<CAPTION>

SEPTEMBER 2,
1994*
THOUGH
DECEMBER 31,
1994
<S> <C>
Expenses........................... 1.89%
Net investment income (loss)....... .20%
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
ONE MONTH NINE MONTHS
ENDED YEAR ENDED ENDED
OCTOBER 31, SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31,
1995## 1995 1994# 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................... $12.13 $13.81 $14.75 $9.86 $9.16 $8.10 $10.03
Income (loss) from investment
operations:
Net investment income (loss)......... (.01) .11 .07 -- (.01) (.02) (.03)
Net realized and unrealized gain
(loss)
on investments..................... (.53) (1.17) (1.01) 5.07 .94 1.08 (1.90)
Total from investment operations..... (.54) (1.06) (.94) 5.07 .93 1.06 (1.93)
Less distributions to shareholders
from:
Net investment income................ -- (.10) -- -- -- -- --
Net realized gains................... -- (.52) -- (.18) (.23) -- --
Total distributions.................. -- (.62) -- (.18) (.23) -- --
Net asset value, end of period........ $11.59 $12.13 $13.81 $14.75 $9.86 $9.16 $8.10
TOTAL RETURN+......................... (4.5%) (7.7%) (6.4%) 51.4% 10.2% 13.1% (19.2%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)............................. $61,418 $67,645 $132,294 $146,173 $8,618 $7,557 $6,004
Ratios to average net assets:
Operating expenses................... 1.62%++ 1.54% 1.46%++ 1.56%** 2.00%** 2.00%** 2.00%**
Interest expense..................... .03%++ .05% .08%++ -- -- -- --
Net investment income (loss)......... (1.14%)++ .92% .56%++ .03%** (.10%** (.27%)** (.39%)**
Portfolio turnover rate............... 1% 28% 63% 88% 245% 207% 325%
<CAPTION>
FEBRUARY 1, 1989*
THROUGH
DECEMBER 31,
1989
<S> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................... $10.00
Income (loss) from investment
operations:
Net investment income (loss)......... .17
Net realized and unrealized gain
(loss)
on investments..................... .03
Total from investment operations..... .20
Less distributions to shareholders
from:
Net investment income................ (.17)
Net realized gains................... --
Total distributions.................. (.17)
Net asset value, end of period........ $10.03
TOTAL RETURN+......................... 2.0%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted)............................. $7,336
Ratios to average net assets:
Operating expenses................... 2.00%**++
Interest expense..................... --
Net investment income (loss)......... 2.23%**++
Portfolio turnover rate............... 151%
</TABLE>

# The Fund changed its fiscal year end from December 31 to September 30.
## The Fund changed its fiscal year end from September 30 to October 31.
* Commencement of operations.
+ Total return is calculated on net asset value per share and is not
annualized.
++ Annualized.
** 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 (loss) to average
net assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1993 1992 1991 1990
<S> <C> <C> <C> <C>
Operating expenses....................................................... 1.64% 3.72% 3.76% 3.99%
Net investment income (loss)............................................. (.05%) (1.82%) (2.02%) (2.38%)
<CAPTION>
FEBRUARY 1, 1989
THROUGH
DECEMBER 31,
1989
<S> <C>
Operating expenses....................................................... 3.17%
Net investment income (loss)............................................. 1.06%
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND -- CLASS A, B AND C SHARES
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C
FEBRUARY 10, FEBRUARY 8, SHARES
ONE MONTH 1995* ONE MONTH 1995* ONE MONTH
ENDED THROUGH ENDED THROUGH ENDED
OCTOBER 31, SEPTEMBER 30, OCTOBER 31, SEPTEMBER 30, OCTOBER 31,
1995## 1995 1995## 1995 1995##
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:+
Net asset value, beginning of period....... $12.12 $11.46 $12.08 $11.44 $12.08
Income (loss) from investment operations:
Net investment income (loss).............. (.01) .07 (.02) .08 (.02)
Net realized and unrealized gain (loss) on
investments............................. (.53) .59 (.53) .56 (.53)
Total income (loss) from investment
operations.............................. (.54) .66 (.55) .64 (.55)
Net asset value, end of period............. $11.58 $12.12 $11.53 $12.08 $11.53
TOTAL RETURN++............................. (4.5%) 5.8% (4.6%) 5.6% (4.6%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period.................. $74,376 $66,261 $99,964 $128,117 $3,643
Ratios to average net assets:(double
daggers)**
Operating expenses........................ 1.73% 1.61% 2.44% 2.42% 2.37%
Interest expense.......................... .03% .01% .03% .03% .02%
Net investment income (loss).............. (1.26%) .98% (1.98%) 1.38% (1.94%)
Portfolio turnover rate#................... 1% 28% 1% 28% 1%
<CAPTION>

FEBRUARY 9,
1995*
THROUGH
SEPTEMBER 30,
1995
<S> <C>
PER SHARE DATA:+
Net asset value, beginning of period....... $11.43
Income (loss) from investment operations:
Net investment income (loss).............. .06
Net realized and unrealized gain (loss) on
investments............................. .59
Total income (loss) from investment
operations.............................. .65
Net asset value, end of period............. $12.08
TOTAL RETURN++............................. 5.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period.................. $6,811
Ratios to average net assets:++**
Operating expenses........................ 1.54%
Interest expense.......................... .01%
Net investment income (loss).............. .86%
Portfolio turnover rate#................... 28%
</TABLE>

<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C
FEBRUARY 10, FEBRUARY 8, SHARES
ONE MONTH 1995* ONE MONTH 1995* ONE MONTH
ENDED THROUGH ENDED THROUGH ENDED
OCTOBER 31, SEPTEMBER 30, OCTOBER 31, SEPTEMBER 30, OCTOBER 31,
1995 1995 1995 1995 1995
<S> <C> <C> <C> <C> <C>
Expenses................................... 46.90% 21.59% 31.39% 82.74% 570.26%
Net investment loss........................ (46.44%) (19.00%) (30.94%) (79.94%) (569.83%)
<CAPTION>

FEBRUARY 9,
1995*
THROUGH
SEPTEMBER 30,
1995
<S> <C>
Expenses................................... 269.60%
Net investment loss........................ (266.32%)
</TABLE>

<PAGE>
EVERGREEN GLOBAL LEADERS FUND (UNAUDITED)
<TABLE>
<CAPTION>
FOUR MONTHS*
ENDED
FEBRUARY 29, 1996
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period........................................................................ $10.00
Income from investment operations:
Net investment income...................................................................................... .02
Net realized and unrealized gain on investment and foreign currency transactions........................... .85
Total from investment operations........................................................................... .87
Less distributions to shareholders:
From net investment income................................................................................. (.02)
In excess of net investment income......................................................................... (.02)
Total distributions.................................................................................... (.04)
Net asset value, end of period.............................................................................. $ 10.83
TOTAL RETURN**.............................................................................................. 8.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)................................................................... $5,543
Ratios to average net assets: +, (double daggers)
Expenses................................................................................................... 1.35%
Net investment income...................................................................................... .57%
Portfolio turnover rate #................................................................................... 24%
</TABLE>

* The Fund commenced investment operations on November 1, 1995.
** Total return is calculated on net asset value per share for the period
indicated and is not annualized.
+ Annualized.
# Portfolio turnover rate is calculated for the four months ended
February 29, 1996.
(double
daggers) 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 loss to average net
assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
FOUR MONTHS*
ENDED
FEBRUARY 29, 1996
<S> <C>
Expenses............................ 3.12%
Net investment loss................. (1.20%)
</TABLE>

<PAGE>
DESCRIPTION OF THE FUNDS
INVESTMENT OBJECTIVES AND POLICIES
Unless otherwise noted in this Prospectus, the Funds' investment policies
are not fundamental and may be changed without shareholder approval. Each Fund's
investment objective and their fundamental policies may not be changed without
shareholder approval. Shareholders will be notified thirty days prior to any
changes in policies that are not fundamental.
In addition to the investment policies detailed below, each Fund may
employ certain additional investment strategies which are discussed in
"Investment Practices and Restrictions" below. The Funds have also adopted a
number of investment restrictions which are set forth in the Statement of
Additional Information.
EVERGREEN EMERGING MARKETS GROWTH FUND
The objective of EVERGREEN EMERGING MARKETS GROWTH FUND is long-term
capital appreciation. In seeking this objective, the Fund invests in equity
securities of issuers located in emerging markets. The Fund is suitable for
aggressive investors interested in the investment opportunities offered by
securities of issuers located in emerging or developing markets and the
resulting potential for growth opportunities attributable to political change,
economic deregulation and liberalized trade policies.
The Fund invests primarily in a diversified portfolio of equity
securities of issuers located in countries with emerging markets. As a matter of
policy, the Fund will invest at least 65% of the value of its total assets in
securities of emerging market issuers.
A country will be considered to have an "emerging market" if it has
relatively low gross national product per capita compared to the world's major
economies and the potential for rapid economic growth. Countries with emerging
markets include those that have an emerging stock market (as defined by the
International Finance Corporation), those with low-to middle income economies
(according to the World Bank), and those listed in World Bank publications as
"developing". The Fund will normally invest in at least six different countries,
although it may invest all of its assets in a single country. At the present
time, the Fund has no intention of investing all of its assets in a single
country. The Fund focuses on equity securities, but may also invest in other
types of instruments, including debt securities. Marvin & Palmer Associates, the
sub-adviser to the Fund, will make investment decisions regarding equity
securities based on its analysis of returns, price momentum, business and
industry considerations, and management quality.
EVERGREEN INTERNATIONAL EQUITY FUND
The objective of EVERGREEN INTERNATIONAL EQUITY FUND is long-term capital
appreciation. The Fund invests primarily in equity securities of non-U.S.
issuers and is suitable for investors who want to pursue their investment goals
in markets outside the United States. The Fund provides investors with a vehicle
to pursue investment opportunities in countries outside the U.S. whose
securities markets may benefit from differing economic and political cycles.
The Fund invests primarily in foreign equity securities that Boston
International Advisers, Inc., the sub-adviser to the Fund, determines, through
both fundamental and technical analysis, to be undervalued compared to other
securities in their industries and countries. In most market conditions, the
stocks comprising the Fund's assets will exhibit traditional value
characteristics, such as higher than average dividend yields, lower than average
price to book value, and will include stocks of companies with unrecognized or
undervalued assets. As a matter of policy, the Fund will invest at least 65% of
the value of its total assets in equity securities of issuers located in at
least three countries outside of the United States.
The Fund will emphasize value stocks, primarily of companies which are
listed on one or more of thirty-two stock markets: twenty developed markets and
twelve emerging markets. While the current intention of the Fund is to invest in
thirty-two stock markets, the Fund may invest in more or less, depending upon
market conditions as determined by the sub-adviser. The Fund will invest
substantially all of its assets in industrialized companies throughout the world
that comprise the Morgan Stanley Capital International EAFE (Europe, Australia
and the Far
10

<PAGE>
East) Index. In addition, the Fund intends to invest up to 10% of its assets in
emerging country equity securities, as described above under "Evergreen Emerging
Markets Growth Fund".
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
The EVERGREEN GLOBAL REAL ESTATE EQUITY FUND seeks to achieve its
investment objective of long-term capital growth through investment primarily in
equity securities of domestic and foreign companies which are principally
engaged in the real estate industry or which own significant real estate assets;
the Fund will not purchase direct interests in real estate. Current income will
be a secondary objective. Equity securities will include common stock, preferred
stock and securities convertible into common stock.
The Fund will, under normal conditions, invest at least 65% of its total
assets in equity securities of domestic and foreign exchanges or NASDAQ listed
companies which are principally engaged in the real estate industry. A company
is deemed to be "principally engaged" in the real estate industry if at least
50% of its assets (marked to market), gross income or net profits are
attributable to ownership, construction, management or sale of residential,
commercial or industrial real estate. Real estate industry companies may include
among others: equity real estate investment trusts, which pool investors' funds
for investment primarily in commercial real estate properties; mortgage real
estate investment trusts, which invest pooled funds in real estate related
loans; brokers or real estate developers; and companies with substantial real
estate holdings, such as paper and lumber producers and hotel and entertainment
companies. The Fund will only invest in real estate equity trusts and limited
partnerships which are traded on major exchanges. As a matter of fundamental
policy, the Fund will also invest at least 65% of its total assets in the equity
securities of companies of at least three countries, including the United
States, except when abnormal market or financial conditions warrant the
assumption of a temporary defensive position. See "Investment Practices and
Restrictions" and "Special Risk Considerations".
The remainder of the Fund's investments may be made in equity securities
of issuers whose products and services are related to the real estate industry,
such as manufacturers and distributors of building supplies and financial
institutions which issue or service mortgages. The Fund may invest more than 25%
of its total assets in any one sector of the real estate or real estate related
industries. In addition, the Fund may, from time to time, invest in the
securities of companies unrelated to the real estate industry but whose real
estate assets are substantial relative to the price of the companies'
securities.
The Fund pursues a flexible strategy of investing in a diversified
portfolio of securities of companies throughout the world. The Fund's investment
adviser anticipates that the Fund will give particular consideration to
investments in the United Kingdom, Western Europe, Australia, Canada, the Far
East (Japan, Hong Kong, Singapore, Malaysia and Thailand) and the United States.
The percentage of the Fund's assets invested in particular geographic regions
will shift from time to time in accordance with the judgment of the Fund's
investment adviser. Generally, a substantial portion of the assets of the Fund
will be denominated or traded in foreign currencies.
Investments may also be made in securities of issuers unrelated to the
real estate industry believed by the Fund's investment adviser to be undervalued
and to have capital appreciation potential. Also, consistent with the secondary
objective of current income, investments may also be made in nonconvertible debt
securities of such companies. The debt securities purchased (except for those
described below) will be of investment grade or better quality (e.g., rated no
lower than A by Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's
Ratings Group ("S&P") or if not so rated, believed by the Fund's investment
adviser to be of comparable quality). However, up to 10% of total assets may be
invested in unrated debt securities of issuers secured by real estate assets
where the Fund's investment adviser believes that the securities are trading at
a discount and the underlying collateral will ensure repayment of principal. In
such situations, it is conceivable that the Fund could, in the event of default,
end up holding the underlying real estate directly.
EVERGREEN GLOBAL LEADERS FUND
The investment objective of the Evergreen Global Leaders Fund is to
provide long-term capital growth. It will attempt to achieve its objective by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
There can be no assurance that the Fund will be able to achieve its investment
objective. Under normal conditions at least 65% of the Fund's total assets will
consist of global equity securities. The Fund will make investments in no less
than three countries, which may include the United States. In addition to the
United States, the countries in which the Fund may invest include, but are not
limited to, Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Hong
11

<PAGE>
Kong, Italy, Japan, Malaysia, Netherlands, New Zealand, Norway, Signapore,
Spain, Sweden, Switzerland, the United Kingdom and the United States.
Evergreen Asset, the Fund's investment adviser, will attempt to screen
the largest companies in these and other major industrialized countries and
cause the Fund to invest, in the opinion of the Fund's investment adviser, in
the 100 best based on certain qualitative and quantitative criteria. Such
companies may include those with the highest return on equity and consistent
earnings growth. They may also include companies with an established market
presence, or which operate in industries or sectors that have, in the opinion of
the Fund's investment adviser, significant growth prospects. The criteria will
be reviewed and evaluated on an ongoing basis by the Fund's investment adviser.
In determining what constitutes a major industrialized country, the
Fund's investment adviser will look to classifications set forth in the Morgan
Stanley Capital International ("MSCI") Index and the various reports on this
subject disseminated by the World Bank. The Fund's investment adviser will
utilize a series of weighing techniques to insure adequate diversification by
country and industry and attempt to identify the largest companies in each
market, primarily by reference to the market capitalizations published in the
MSCI Index.
Although, as stated above, the Fund expects that investments will be made
in no less than three countries including the United States, the Fund may invest
more than 25% of its total assets in one country. To the extent that the Fund
invests more than 25% of its total assets in the securities of issuers located
in one country, the value of the Fund's shares may be subject to greater
fluctuations due to the lesser degree of diversification across countries such a
policy affords, and the fact that the securities markets of certain countries
may be subject to greater risks and volatility than that which exists in the
United States.
INVESTMENT PRACTICES AND RESTRICTIONS
General. The Funds primarily invest in:
common and preferred stocks, convertible securities and warrants of
foreign and domestic corporations. Common stocks represent an equity interest in
a corporation. This ownership interest often gives the Funds the right to vote
on measures affecting the company's organization and operations. Although common
stocks have a history of long-term growth in value, their prices tend to
fluctuate in the short-term, particularly those of smaller capitalization
companies. Smaller capitalization companies may have limited product lines,
markets, or financial resources. These conditions may make them more susceptible
to setbacks and reversals. Therefore, their securities may have limited
marketability and may be subject to more abrupt or erratic market movements than
securities of larger companies;
obligations of foreign governments and supranational organizations;
corporate and foreign government fixed income securities denominated in
currencies other than U.S. dollars rated, at the time of purchase, Baa or higher
by Moody's or BBB or higher by S&P, or which, if unrated, are considered to be
of comparable quality by the Funds' investment advisers or sub-advisers. Bonds
rated Baa by Moody's or BBB by S&P have speculative characteristics. Changes in
economic conditions or other circumstances are more likely to lead to weakened
capacity to make principal and interest payments than higher rated bonds.
Although the Funds do not intend to invest significantly in debt securities, it
should be noted that the prices of fixed income securities fluctuate inversely
to the direction of interest rates;
strategic investments, such as options and futures contracts on currency
transactions, securities index futures contracts, and forward foreign currency
exchange contracts. The Funds can use these techniques to increase or decrease
their exposure to changing security prices, interest rates, currency exchange
rates, or other factors that affect security values. (Although, of course, there
can be no assurance that these strategic investments will be successful in
protecting the value of the Funds' securities.); and
securities of closed-end investment companies.
Defensive Investments. The Funds may invest without limitation in high quality
money market instruments, such as notes, commercial paper, certificates of
deposit or bankers' acceptances and other bank obligations, or U.S. government
securities and short-term obligations of foreign issuers denominated in U.S.
dollars and traded in the United States if, in the opinion of a Fund's
investment adviser or sub-adviser, market conditions warrant a temporary
defensive investment strategy.
12

<PAGE>
Portfolio Turnover and Brokerage. It is anticipated that the annual portfolio
turnover rate for EVERGREEN GLOBAL REAL ESTATE EQUITY FUND may exceed 100%. A
portfolio turnover rate of 100% would occur if all of a Fund's portfolio
securities were replaced in one year. The portfolio turnover rate experienced by
a Fund directly affects brokerage commissions and other transaction costs which
the Fund bears directly. A high rate of portfolio turnover will increase such
costs. It is contemplated that Lieber & Company, an affiliate of Evergreen Asset
and a member of the New York and American Stock Exchanges, will to the extent
practicable effect substantially all of the portfolio transactions for EVERGREEN
GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND effected on
those exchanges. See the Statement of Additional Information for further
information regarding the brokerage allocation practices of the Funds. The
portfolio turnover rate for each Fund is set forth in the tables contained in
the section entitled "Financial Highlights".
Repurchase Agreements. The Funds may invest in repurchase agreements. Repurchase
agreements are agreements by which a Fund purchases a security for cash and
obtains a simultaneous commitment from the seller (usually a bank or
broker/dealer) to repurchase the security at an agreed-upon price and specified
future date. The repurchase price reflects an agreed-upon interest rate for the
time period of the agreement. The Funds risk is the inability of the seller to
pay the agreed-upon price on the delivery date. However, this risk is tempered
by the ability of the Funds to sell the security in the open market in the case
of a default. In such a case, the Funds may incur costs in disposing of the
security which would increase Fund expenses. Each Fund's investment adviser will
monitor the creditworthiness of the firms with which the Funds enter into
repurchase agreements. The Funds may not enter into repurchase agreements if, as
a result, more than 15% of a Fund's net assets would be held in repurchase
agreements maturing in more than seven days and in other securities which are
not readily marketable.
When-Issued And Delayed Delivery Transactions. The Funds may purchase securities
on a when-issued or delayed delivery basis. These transactions are arrangements
in which the Funds purchase securities with payment and delivery scheduled for a
future time. The seller's failure to complete these transactions may cause the
Funds to miss a price or yield considered to be advantageous. Settlement dates
may be a month or more after entering into these transactions, and the market
values of the securities purchased may vary from the purchase prices.
Accordingly, the Funds may pay more or less than the market value of the
securities on the settlement date. A Fund may dispose of a commitment prior to
settlement if the Fund's investment adviser deems it appropriate to do so. In
addition, the Funds may enter into transactions to sell their purchase
commitments to third parties at current market values and simultaneously acquire
other commitments to purchase similar securities at later dates. The Funds may
realize short-term profits or losses upon the sale of such commitments.
Temporary Investments. The Funds may invest in U.S. and foreign short-term money
market instruments (denominated in U.S. and/or foreign currencies), including
interest-bearing call deposits with banks, government obligations, certificates
of deposit, bankers' acceptances, commercial paper, short-term corporate debt
securities, and repurchase agreements. These investments may be used to
temporarily invest cash received from the sale of Fund shares, to establish and
maintain reserves for temporary defensive purposes, or to take advantage of
market opportunities.
Illiquid or Restricted Securities. Each Fund may invest up to 15% of its net
assets in illiquid securities and other securities which are not readily
marketable. Illiquid securities include certain restricted securities not
determined by the Trustees to be liquid, non-negotiable time deposits and
repurchase agreements providing for settlement in more than seven days after
notice. Securities eligible for resale pursuant to Rule 144A under the
Securities Act of 1933 (the "Securities Act"), which have been determined to be
liquid, will not be considered by the Funds' investment advisers to be illiquid
or not readily marketable and, therefore, are not subject to the aforementioned
15% limit. The inability of a Fund to dispose of illiquid or not readily
marketable investments readily or at a reasonable price could impair the Fund's
ability to raise cash for redemptions or other purposes. The liquidity of
securities purchased by a Fund which are eligible for resale pursuant to Rule
144A will be monitored by each Fund's investment adviser or sub-adviser on an
ongoing basis, subject to the oversight of the Trustees. In the event that such
a security is deemed to be no longer liquid, a Fund's holdings will be reviewed
to determine what action, if any, is required to ensure that the retention of
such security does not result in a Fund having more than 15% of its assets
invested in illiquid or not readily marketable securities.
Borrowing. As a matter of fundamental policy, the Funds may not borrow money
except as a temporary measure to facilitate redemption requests or for
extraordinary or emergency purposes. The proceeds from borrowings may be used to
facilitate redemption requests which might otherwise require the untimely
disposition of portfolio securities. The specific limits applicable to borrowing
by each Fund are set forth in the Statement of Additional Information.
13

<PAGE>
The Funds may agree to sell portfolio securities to financial
institutions such as banks and broker-dealers, and to repurchase them at a
mutually agreed upon date and price (a "reverse purchase agreement") for
temporary or emergency purposes. At the time a Fund enters into a reverse
purchase agreement, it will place in a segregated custodian account cash, U.S.
government securities or liquid high-grade debt obligations having a value at
least equal to the repurchase price (including accrued interest) and will
subsequently monitor the account to ensure that such equivalent value is
maintained. Reverse repurchase agreements involve the risk that the market value
of the securities sold by a Fund may decline below the repurchase price of those
securities. The Funds will not enter into reverse repurchase agreements
exceeding 5% of the value of their total assets.
Lending of Portfolio Securities. In order to generate income and to offset
expenses, the Funds may lend portfolio securities to brokers, dealers and other
financial institutions. The Funds' investment advisers or sub-advisers will
monitor the creditworthiness of such borrowers. Loans of securities by the
Funds, if and when made, may not exceed 30% of the value of the total assets of
the EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND,
and one-third of the value of the total assets of EVERGREEN INTERNATIONAL EQUITY
FUND and EVERGREEN EMERGING MARKETS GROWTH FUND, and must be collateralized by
cash or U.S. Government securities that are maintained at all times in an amount
equal to at least 100% of the current market value of the securities loaned,
including accrued interest. While such securities are on loan, the borrower will
pay a Fund any income accruing thereon, and the Fund may invest the cash
collateral in portfolio securities, thereby increasing its return. Any gain or
loss in the market price of the loaned securities which occurs during the term
of the loan would affect a Fund and its investors. A Fund has the right to call
a loan and obtain the securities loaned at any time on notice of not more than
five business days. A Fund may pay reasonable fees in connection with such
loans.
There is the risk that when lending portfolio securities, the securities
may not be available to a Fund on a timely basis and the Fund may, therefore,
lose the opportunity to sell the securities at a desirable price. In addition,
in the event that a borrower of securities files for bankruptcy or becomes
insolvent, disposition of the securities may be delayed pending court action.
Fixed-Income Securities -- Downgrades. If any security invested in by any of the
Funds loses its rating or has its rating reduced after the Fund has purchased
it, the Fund is not required to sell or otherwise dispose of the security, but
may consider doing so.
Foreign Currency Transactions. The Funds will enter into foreign currency
transactions to obtain the necessary currencies to settle securities
transactions. Currency transactions may be conducted either on a spot or cash
basis at prevailing rates or through forward foreign currency exchange contracts
("forward contracts"). The Funds may also enter into forward foreign currency
exchange contracts to protect Fund assets against adverse changes in foreign
currency exchange rates or exchange control regulations. Such changes could
unfavorably affect the value of Fund assets which are denominated in foreign
currencies, such as foreign securities or funds deposited in foreign banks, as
measured in U.S. dollars. The use of forward contracts for hedging purposes may
limit any potential gain that might result from a relative increase in the value
of such currencies and might, in certain cases, result in losses to the Fund.
Forward Foreign Currency Exchange Contracts. A forward contract is an obligation
to purchase or sell an amount of a particular currency at a specific price and
on a future date agreed upon by the parties. Generally, no commission charges or
deposits are involved. At the time a Fund enters into a forward contract, Fund
assets with a value equal to the Fund's obligation under the forward contract
are segregated and are maintained until the contract has been settled. The Funds
will not enter into a forward contract with a term of more than one year. In
addition to forward contracts entered into for hedging purposes, the Funds will
generally enter into a forward contract to provide the proper currency to settle
a securities transaction at the time the transaction occurs ("trade date"). The
period between trade date and settlement date will vary between 24 hours and 60
days, depending upon local custom.
As described above, a Fund may enter into forward contract in primarily
two circumstances. First, when a Fund enters into a contract for the purchase or
sale of a security denominated in a foreign currency, it may desire to "lock in"
the U.S. dollar price of the security. By entering in a forward contract for the
purchase or sale, for a fixed amount of dollars, of the amount of foreign
currency involved in the underlying security transaction, the Fund will be able
to protect itself against a possible loss resulting from an adverse change in
the relationship between the U.S. dollar and the subject foreign currency during
the period between the date the security is purchased or sold and the date on
which payment is made or received.
14

<PAGE>
Second, when a Fund's investment adviser believes that the currency of a
particular foreign country may suffer a decline against the U.S. dollar, the
Fund may enter into a forward contract to sell, for a fixed amount of dollars,
the amount of foreign currency approximating the value of some or all of the
Fund's portfolio securities denominated in such foreign currency. The precise
matching of the forward contract amount and the value of such securities
denominated in foreign currencies will change as a consequence of market
movements in the value of those securities between the date the forward contract
is entered into and the date it matures. The Funds do not intend to enter into
such forward contracts under this second circumstance on a regular or continuous
basis.
In the second circumstance, the Custodian will segregate cash or liquid
high-grade debt securities belonging to the Fund in an amount not less than the
value of the assets committed to forward foreign currency contracts entered into
under such transactions. If the value of the securities segregated declines,
additional cash or debt securities will be added on a daily basis (i.e. market
to market) so that the segregated amount will not be less than the amount of the
Fund's commitments with respect to such contracts.
Hedging/Cross Hedging. A cross hedge is accomplished by entering into a forward
contract or other arrangement with respect to one foreign currency for the
purpose of hedging against a possible decline in the value of another foreign
currency in which certain of the Fund's portfolio instruments are denominated.
The Funds' investment advisers or sub-advisers may enter into a cross hedge,
rather than hedge directly, in instances where (i) the rates for forward
contracts, options, futures contract or options on futures contracts relating to
the currency in which the cross hedge is effected are more favorable than rates
for similar instruments denominated in the currency that is to be hedged and
(ii) there is a high degree of correlation between the two currencies with
respect to their movement against the U.S. dollar. Cross hedges may be effected
using the various hedging instruments described below. A cross hedge cannot
protect against exchange rate risks perfectly, and if a Fund's investment
adviser or sub-adviser is incorrect in its judgment of future exchange rate
relationships, the Fund could be in a less advantageous position than if such a
hedge had not been established.
Options and Futures. The Funds may deal in options on foreign currencies,
portfolio securities and, in the case of EVERGREEN INTERNATIONAL EQUITY FUND and
EVERGREEN EMERGING MARKETS GROWTH FUND, securities indices. Such options, other
than options written by the Funds, may be traded on an international securities
exchange. The Funds will use these options to manage interest rate and currency
risks. The Funds also may write covered call options and secured put options to
generate income or lock in gains. EVERGREEN INTERNATIONAL EQUITY FUND and
EVERGREEN EMERGING MARKETS GROWTH FUND may write covered call options and
secured put options on up to 25% of their net assets. EVERGREEN GLOBAL REAL
ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND may write covered call
options and secured put options on up to 15% of their net assets. EVERGREEN
INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH FUND may
purchase put and call options provided that no more than 5% of the fair market
value of their assets is invested in premiums on such options.
A call option gives the purchaser the right to buy, and the writer the
obligation to sell, the underlying asset at the exercise price during the option
period. The premium paid to the writer is the consideration for undertaking the
obligations under the option contract. The writer forgoes the opportunity to
profit from an increase in the market price of the underlying security above the
exercise price except insofar as the premium represents such a profit. The Funds
retain the risk of loss should the price of the underlying security decline.
Where such options are used for hedging purposes, if the forecast of a Fund's
investment adviser or sub-adviser of the direction of stock prices is incorrect,
the Fund may be better off had it not engaged in such transactions. The Funds
will write call options only when the options are traded on national securities
exchanges in the United States and the options are covered (i.e., the Funds own
the optioned securities or securities convertible into or carrying rights to
acquire the optioned securities, or the Funds custodian has segregated and
maintains cash or liquid high-grade debt securities belonging to the Funds in an
amount not less than the value of the assets committed to the written options).
The Funds may purchase call options to close out a position. In order to do so,
a Fund will make a "closing purchase transactions" -- the purchase of a call
option on the same security with the same exercise price and expiration date as
the call option which it has previously written on any particular security. A
put option gives the purchase the right to sell, and the writer the obligation
to buy, the underlying asset at the exercise price during the option period. The
writer of a covered call owns assets that are acceptable for escrow and the
writer of a secured put invests an amount not less than the exercise price in
eligible assets to the extent that it is obligated as a writer. If a call
written by a Fund is exercised, the Fund forgoes any possible profit from an
increase in the market price of the underlying asset over the exercise price
plus the premium received. In writing puts, there is a risk that a Fund may be
required to take delivery of the underlying asset at a disadvantageous price.
15

<PAGE>
Options on Foreign Currencies. The Funds may also purchase foreign currency put
options; in the case of EVERGREEN GLOBAL REAL ESTATE FUND such options must be
traded on U.S. exchanges or U.S. over-the-counter markets. A put option gives
the holder, upon payment of a premium, the right to sell a currency at the
exercise price until the expiration of the option and serves to ensure against
adverse currency price movements in the underlying portfolio assets denominated
in that currency. Exchange listed options on seven major currencies are traded
in the U.S. In addition, several major U.S. investment firms make markets in
unlisted options on foreign currencies. Such unlisted options may be available
with respect to a wide range of foreign currencies than listed options and may
have more flexible terms. Unlisted foreign currency options are generally less
liquid than listed options and involve the credit risks associated with the
individual issuer. No more than 5% of the Fund's net assets may be represented
by premiums paid by the Fund with respect to options on foreign currencies
outstanding at any one time. Furthermore, the market value of unlisted options
on foreign currencies will be included with other illiquid assets held by the
Fund for purposes of the 15% limit on such assets.
The Funds may write a call option on a foreign currency only in
conjunction with a purchase of a put option on that currency. A call option
written by a Fund gives the purchaser, upon payment of a premium, the right to
purchase from the Fund a currency at the exercise price until the expiration of
the option. Writing call options in this manner is designed to reduce the cost
of downside currency protection but has the effect of limiting currency
appreciation potential.
Futures Contracts and Related Options. The Funds may invest in currency futures
contracts and options thereon. If a Fund's investment adviser or sub-adviser
anticipates that exchange rates for a particular currency will fall, the Fund
will sell a currency futures contract or a call option thereon or purchase a put
option on such futures contract as a hedge (or in the case of a sale of a call
option, a partial hedge) against a decrease in the value of the Fund's
securities denominated in such currency. If a Fund's investment adviser or
sub-adviser anticipates that exchange rates will rise, the Fund may purchase a
currency futures contract or a call option thereon to protect against an
increase in the price of securities denominated in a particular currency the
Fund intends to purchase. These futures contracts and related options will be
used only as a hedge against anticipated currency rate changes.
A currency futures contract sale creates an obligation by the Fund, as
sell, to deliver the amount of currency called for in the contract at a
specified future time for a specified price. A currency futures contract
purchase creates an obligation by the Fund, as purchaser, to take delivery of an
amount of currency at a specified future time at a specified price. Although the
terms of currency futures contracts specify actual delivery or receipt, in most
instances the contracts are closed out before the settlement date without the
making or taking of delivery of the currency. Closing out of a currency futures
contract is effect by entering into an offsetting purchase or sale transaction.
Unlike a currency futures contract, which requires the parties to buy and
sell currency on a set date, an option on a currency futures contract entitles
its holder to decide on or before a future date whether to enter into such a
contract. If the holder decides not to enter into a contract, the premium paid
for the option is lost. There are no daily payments of cash in the nature of
"variation" or "maintenance" margin by the purchaser of such an option to
reflect the change in the value of the underlying contract as there are by a
purchaser or seller of a currency futures contract.
The ability to establish and close out positions in currency futures and
options on currency futures will be subject to the development and maintenance
of a liquid secondary market. It is not certain that this market will develop or
be maintained.
The Funds may not enter into futures contracts or related options if,
immediately thereafter, the amounts committed to market and premiums paid for
unexpired options would exceed 5% of a Funds's net assets and, in the case of
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND, more
than 30% of the Funds net assets would be hedged thereby. EVERGREEN
INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH FUND may also
enter into such futures contracts or related options for purposes other than
bona fide hedging if the aggregate amount of initial market deposits on a fund's
futures and related options positions would not exceed 5% of the net liquidation
value of the Fund's assets, provided further that in the case of an option that
is in-the-money at the time of the purchase, the in-the-money amount may be
excluded in calculating the 5% limitation. In addition, a Fund may not sell
futures contracts if the value of such futures contracts exceeds the total
market value of the Fund's portfolio securities; Futures contracts sold by a
Fund are generally subject to segregation and coverage requirements established
by either the Commodity Futures Trading Commission ("CFTC") or the Securities
and Exchange Commission ("SEC"), with the result that, if a Fund does not hold
the instrument underlying the futures contract or option, the Fund will be
required to segregate, on an ongoing basis
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with its custodian, cash,U.S. government securities, or other liquid high grade
debt obligations in an amount at least equal to the Fund's obligations with
respect to such instruments.
For bona fide hedging purposes, EVERGREEN INTERNATIONAL EQUITY FUND and
EVERGREEN EMERGING MARKETS GROWTH FUND may enter into securities index futures
contracts and purchase and write put and call options on securities index
futures contracts that are traded on regulated exchanges, including non-U.S.
exchanges, to the extent permitted by the CFTC. Securities index futures
contracts are based on indices that reflect the market value of securities of
the firms included in the indices. An index futures contract is an agreement
pursuant to which two parties agree to take or make delivery of an amount of
cash equal to the differences between the value of the index at the close of the
last trading day of the contract and the price at which the index contract was
originally written.
EVERGREEN INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH
FUND may enter into securities index futures contracts to sell a securities
index in anticipation of or during a market decline to attempt to offset the
decrease in market value of securities in its portfolio that might otherwise
result. When a Fund is not fully invested and anticipates a significant market
advance, it may enter into futures contracts to purchase the index in order to
gain rapid market exposure that may in part or entirely offset increases in the
cost of securities that it intends to purchase. In many of these transactions, a
Fund will purchase such securities upon termination of the futures position but,
depending on market conditions, a futures position may be terminated without the
corresponding purchases of common stock. A Fund may also invest in securities
index futures contracts when its investment adviser or sub-adviser believes such
investment is more efficient, liquid or cost-effective than investing directly
in the securities underlying the index.
The use of futures and related options involves special considerations
and risks, including: (1) the ability of a Fund to utilize futures successfully
will depend on the ability of its investment adviser or sub-adviser to predict
pertinent market movements; and (2) the fact that there might be an imperfect
correlation (or conceivably no correlation) between the change in the market
value of the securities held by a Fund and the prices of the futures relating to
the securities purchased or sold by the Fund. The use of futures and related
options may reduce risk of loss by wholly or partially offsetting the negative
effect of unfavorable price movements, but these instruments can also reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements in positions. No assurance can be given that the investment adviser's
or sub-adviser's judgment in this respect will be correct.
It is not certain that a secondary market for positions in futures
contracts or for options will exist at all times. Although each investment
adviser or sub-adviser will consider liquidity before entering into these
transactions, there is no assurance that a liquid secondary market on an
exchange or otherwise will exist for any particular futures contract or option
at any particular time. A Fund's ability to establish and close out futures and
options positions depends on this secondary market.
Risk Characteristics Of Foreign Securities. Investing in non-U.S. securities
involves additional risks not normally associated with domestic investments. In
an attempt to reduce some of these risks, the Funds diversify their investments
broadly among foreign countries which may include both developed and developing
countries. With respect to EVERGREEN INTERNATIONAL EQUITY FUND and EVERGREEN
GLOBAL LEADERS FUND at least three different countries will always be
represented. The Funds may take advantage of the unusual opportunities for
higher returns available from investing in developing countries. As discussed in
detail below under "Emerging Markets", however, these investments carry
considerably more volatility and risk because they generally are associated with
less mature economies and less stable political systems.
Foreign securities are denominated or traded in foreign currencies.
Therefore, the value in U.S. dollars of a Fund's assets and income may be
affected by changes in exchange rates and regulations. Although the Funds value
their assets daily in U.S. dollars, they will not convert their holdings of
foreign currencies to U.S. dollars daily. When a Fund converts its holdings to
another currency, it may incur conversion costs. Foreign exchange dealers
realize a profit on the difference between the prices at which such dealers buy
and sell currencies.
To the extent that securities purchased by the Funds are denominated in
currencies other than the U.S. dollar, changes in foreign currency exchange
rates will affect the Funds' net asset values; the value of interest earned;
gains and losses realized on the sale of securities; and net investment income
and capital gains, if any, to be distributed to shareholders by a Fund. If the
value of a foreign currency rises against the U.S. dollar, the value of a Fund's
assets denominated in that currency will increase; correspondingly, if the value
of a foreign currency declines against the U.S. dollar, the value of a Fund's
assets denominated in that currency will decrease. The performance of the Funds
will be measured in U.S. dollars, the base currency for the Funds.
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Securities markets of foreign countries in which the Fund may invest are
generally not subject to the same degree of regulation as the U.S. markets and
may be more volatile and less liquid than the major U.S. markets. The
differences between investing in foreign and U.S. companies include: (1) less
publicly available information about foreign companies; (2) the lack of uniform
financial accounting standards and practices among countries which could impair
the validity of direct comparisons of valuations measures (such as
price/earnings ratios) for securities in different countries; (3) less readily
available market quotations on foreign companies; (4) differences in government
regulation and supervision of foreign stock exchanges, brokers, listed
companies, and banks; (5) differences in legal systems which may affect the
ability to enforce contractual obligations or obtain court judgments; (6)
generally lower foreign stock market volume; (7) the likelihood that foreign
securities may be less liquid or more volatile, which may affect the Fund's
ability to purchase or sell large blocks of securities and thus obtain the best
price; (8) unreliable mail service between countries; (9) transactions cost,
including brokerage charges and custodian charges associated with holding
foreign securities, may be higher; (10) the settlement period for foreign
securities, which are sometimes longer than those for securities of U.S.
issuers, may affect portfolio liquidity. These different settlement practices
may cause missed purchasing opportunities and/or loss of interest on money
market and debt investments; (11) foreign securities held by a Fund may be
traded on days that the Fund does not value its portfolio securities, such as
Saturdays and customary business holidays, and accordingly, the Fund's net asset
value may be significantly affected on days when shareholders do not have access
to the Fund; (12) political and social instability, expropriation, and political
or financial changes which adversely affect investment in some countries. In the
past, U.S. government policies have discouraged or restricted certain
investments abroad by investors such as the Funds. Although the Funds are
unaware of any current restrictions, investors are advised that these policies
could be reinstituted. Finally, the Funds may incur costs associated with
currency hedging and the conversion of foreign currency into U.S. dollars and
may be adversely affected by restrictions on the conversion or transfer of
foreign currency.
The Funds may engage in transactions in foreign securities which are
listed on foreign securities exchanges and/or traded in the over-the-counter
market. Transactions in listed securities may be effected in the
over-the-counter markets if, in the opinion of the Funds' investment advisers or
sub-advisers, this affords the Funds the ability to obtain best price and
execution. Foreign securities markets are subject to less regulation than those
in the U.S. and there may be less financial and other information available
about the issuers of securities that trade in foreign markets. Transactions in
foreign securities may settle on a delayed basis, in comparison to those in the
U.S., or may settle only on specific days of the month. In the event a Fund
enters into a significant number of transactions which provide for a settlement
period in excess of seven days, the Fund's ability to raise cash to meet
redemption requests may be impaired.
Emerging Markets. The economies of individual emerging countries may differ
favorably or unfavorably from the U.S. economy in such respects as growth of
gross domestic product, rate of inflation, currency depreciation, capital
reinvestment, resource self-sufficiency and balance of payments position.
Further, the economies of developing countries generally are heavily dependent
on international trade and, accordingly, have been, and may continue to be,
adversely affected by trade barriers, exchange controls, managed adjustments in
relative currency values and other protectionist measures imposed or negotiated
by the countries with which they trade. These economies also have been, and may
continue to be, adversely affected by economic conditions in the countries with
which they trade.
Prior governmental approval for foreign investments may be required under
certain circumstances in some emerging countries, and the extent of foreign
investment in certain debt securities and domestic companies may be subject to
limitation in other emerging countries. Foreign ownership limitations also may
be imposed by the charters of individual companies in emerging countries to
prevent, among other concerns, violation of foreign investment limitations.
Repatriation of investment income, capital and the proceeds of sales by
foreign investors may require governmental registration and/or approval in some
emerging countries. A Fund could be adversely affected by delays in, or a
refusal to grant, any required governmental registration or approval for such
repatriation. Any investment subject to such repatriation controls will be
considered illiquid if it appears reasonably likely that this process will take
more than seven days.
With respect to any emerging country, there is the possibility of
nationalization, expropriation or confiscatory taxation, political changes,
governmental regulation, social instability or diplomatic developments
(including war) which could affect adversely the economics of such countries or
the value of the Funds'
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investments in those countries. In addition, it may be difficult to obtain and
enforce a judgment in a court outside of the U.S.
Investments Related to Real Estate. Risks associated with investment in
securities of companies in the real estate industry include: declines in the
value of real estate, risks related to general and local economic conditions,
overbuilding and increased competition, increases in property taxes and
operating expenses, changes in zoning laws, casualty or condemnation losses,
variations in rental income, changes in neighborhood values, the appeal of
properties to tenants and increase in interest rates. In addition, equity real
estate investment trusts may be affected by changes in the value of the
underlying property owned by the trusts, while mortgage real estate investment
trusts may be affected by the quality of credit extended. Equity and mortgage
real estate investment trusts are dependent upon management skills, may not be
diversified and are subject to the risks of financing projects. Such trusts are
also subject to heavy cash flow dependency, defaults by borrowers, self
liquidation and the possibility of failing to qualify for tax-free pass-through
of income under the Internal Revenue Code of 1986, as amended (the "Code") and
to maintain exemption from the Investment Company Act of 1940, as amended (the
"1940 Act"). In the event an issuer of debt securities collateralized by real
estate defaulted, it is conceivable that a Fund could end up holding the
underlying real estate.
MANAGEMENT OF THE FUNDS
INVESTMENT ADVISERS
The management of each Fund is supervised by the Trustees of the Trust
under which the Fund has been established ("Trustees"). Evergreen Asset has been
retained by EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL
LEADERS FUND as investment adviser. Evergreen Asset succeeded on June 30, 1994
to the advisory business of a corporation with the same name, but under
different ownership, which was organized in 1971. Evergreen Asset, with its
predecessors, has served as investment adviser to the Evergreen mutual funds
since 1971. Evergreen Asset is a wholly-owned subsidiary of First Union National
Bank of North Carolina ("FUNB"). The address of Evergreen Asset is 2500
Westchester Avenue, Purchase, New York 10577. FUNB is a subsidiary of First
Union Corporation ("First Union"), the sixth largest bank holding company in the
United States. Stephen A. Lieber and Nola Maddox Falcone serve as the chief
investment officers of Evergreen Asset and, along with Theodore J. Israel, Jr.,
were the owners of Evergreen Asset's predecessor and the former general partners
of Lieber & Company which, as described below, provides certain subadvisory
services to Evergreen Asset in connection with its duties as investment adviser
to the Fund. CMG serves as investment adviser to EVERGREEN INTERNATIONAL EQUITY
FUND and EVERGREEN EMERGING MARKETS GROWTH FUND. Boston International Advisers,
Inc. ("BIA") is sub-adviser to EVERGREEN INTERNATIONAL EQUITY FUND, and Marvin &
Palmer Associates, Inc. ("Marvin & Palmer") is sub-adviser to EVERGREEN EMERGING
MARKETS GROWTH FUND.
First Union is headquartered in Charlotte, North Carolina, and had $132
billion in consolidated assets as of March 31, 1996. First Union and its
subsidiaries provide a broad range of financial services to individuals and
businesses in offices throughout the United States. CMG manages or otherwise
oversees the investment of over $31 billion in assets belonging to a wide range
of clients, including all the series of Evergreen Investment Trust (formerly
known as First Union Funds), the two series of The Evergreen Lexicon Trust
(formerly The FFB Lexicon Fund) and the two series of Evergreen Tax Free Trust
(formerly FFB Funds Trust). First Union Brokerage Services, Inc., a wholly-owned
subsidiary of FUNB, is a registered broker-dealer that is principally engaged in
providing retail brokerage services consistent with its federal banking
authorizations. First Union Capital Markets Corp., a wholly-owned subsidiary of
First Union, is a registered broker-dealer principally engaged in providing,
consistent with its federal banking authorizations, private placement,
securities dealing, and underwriting services.
As investment adviser to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and
EVERGREEN GLOBAL LEADERS FUND, Evergreen Asset manages the Funds' investments,
provides various administrative services and supervises the Funds' daily
business affairs, subject to the authority of the Trustees. Evergreen Asset is
entitled to receive a fee equal to 1% of average daily net assets on an annual
basis from EVERGREEN GLOBAL REAL ESTATE EQUITY FUND, and a fee equal to .95 of
1% of average daily net assets on an annual basis from Evergreen Global Leaders
Fund. Until the EVERGREEN GLOBAL LEADERS FUND reaches net assets of $15 million,
Evergreen Asset will reimburse the Fund to the extent that the Fund's aggregate
operating expenses exceed 1.5% of average daily net assets for any fiscal year.
From time to time Evergreen Asset may further reduce or waive its fee or
reimburse the Fund for certain of its expenses in order to reduce the Fund's
expense ratio. As a result the Fund's total return would be higher than if the
fees and any expenses had been paid by the Fund.
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CMG, along with BIA and Marvin & Palmer, respectively, manages
investments and supervises the daily business affairs of EVERGREEN INTERNATIONAL
EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH FUND. As compensation
therefor, CMG is entitled to receive an annual fee from EVERGREEN INTERNATIONAL
EQUITY FUND equal to: .82 of 1% of the first $20 million of average daily net
assets; .79 of 1% of the next $30 million of average daily net assets; .76 of 1%
of the next $50 million of average daily net assets; and .73 of 1% of average
daily net assets in excess of $100 million. From EVERGREEN EMERGING MARKETS
GROWTH FUND, CMG is entitled to receive an annual fee equal to: 1.50% of the
first $100 million of average daily net assets; 1.45% of the next $100 million
of average daily net assets; 1.40% of the next $100 million of average daily net
assets; and 1.35% of average daily net assets in excess of $300 million.
The fees paid by the Funds are higher than the rate paid by most other
investment companies, but are not higher than the fees paid by many funds with
similar investment objectives. The total expenses as a percentage of average
daily net assets on an annual basis of the Funds for the fiscal period ended
October 31, 1995 (the four month period ended February 29, 1996 in the case of
EVERGREEN GLOBAL LEADERS FUND) are set forth in the section entitled "Financial
Highlights". CMG has agreed to pay BIA, the sub-adviser to EVERGREEN
INTERNATIONAL EQUITY FUND, a fee equal to: .32 of 1% of the first $20 million of
average daily net assets; .29 of 1% of the next $30 million of average daily net
assets; .26 of 1% of the next $50 million of average daily net assets; and .23
of 1% of average daily net assets in excess of $100 million. For its services as
sub-adviser to EVERGREEN EMERGING MARKETS GROWTH FUND, Marvin & Palmer receives
from CMG a fee equal to: 1% of the first $100 million of average daily net
assets; .95 of 1% of the next $100 million of average daily net assets; .90 of
1% of the next $100 million of average daily net assets; and .85 of 1% of
average daily net assets in excess of $300 million.
Evergreen Asset serves as administrator to EVERGREEN INTERNATIONAL EQUITY
FUND, EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN GLOBAL LEADERS FUND
and is entitled to receive a fee based on the average daily net assets of these
Funds at a rate based on the total assets of the mutual funds administered by
Evergreen Asset for which CMG or Evergreen Asset also serve as investment
adviser, calculated in accordance with the following schedule: .050% of the
first $7 billion; .035% on the next $3 billion; .030% on the next $5 billion;
.020% on the next $10 billion; .015% on the next $5 billion; and .010% on assets
in excess of $30 billion. Furman Selz LLC, an affiliate of Evergreen Funds
Distributor, Inc., distributor for the Evergreen group of mutual funds, serves
as sub-administrator to EVERGREEN INTERNATIONAL EQUITY FUND, EVERGREEN EMERGING
MARKETS GROWTH FUND and EVERGREEN GLOBAL LEADERS FUND and is entitled to receive
a fee from each Fund calculated on the average daily net assets of each Fund at
a rate based on the total assets of the mutual funds administered by Evergreen
Asset for which CMG or Evergreen Asset also serve as investment adviser,
calculated in accordance with the following schedule: .0100% of the first $7
billion; .0075% on the next $3 billion; .0050% on the next $15 billion; and
.0040% on assets in excess of $25 billion. The total assets of the mutual funds
administered by Evergreen Asset for which CMG or Evergreen Asset serve as
investment adviser were approximately $14.4 billion as of February 29, 1996.
The portfolio manager for EVERGREEN GLOBAL REAL ESTATE EQUITY FUND is
Samuel A. Lieber. Mr. Samuel Lieber has been the Fund's principal manager since
inception and has been associated with Evergreen Asset since 1985.
The portfolio of the EVERGREEN GLOBAL LEADERS FUND is managed by a
committee composed of portfolio management and analytical personnel employed by
Evergreen Asset. The members of this committee include Stephen A. Lieber, who is
Chairman and Co-Chief Executive Officer of Evergreen Asset, and Edwin D. Miska,
who is an analyst with Evergreen Asset. Mr. Lieber and Mr. Miska are responsible
for the day-to-day operations of the Fund. Mr. Lieber is the founder of
Evergreen Asset and has been associated with Evergreen Asset and its predecessor
since 1971. Mr. Miska has been a quantitative analyst with Evergreen Asset and
its predecessor since 1986.
The portfolio managers for EVERGREEN INTERNATIONAL EQUITY FUND are
Richard Wagoner, Executive Vice President, head of CMG since 1973, and a
Director of Evergreen Asset since 1994, together with Maureen Ghublikian and
David A. Umstead, who are Managing Directors of BIA and have been associated
therewith since 1986.
The portfolio managers for EVERGREEN EMERGING MARKETS GROWTH FUND, all of
whom have served since the Fund's inception in September 1994, are Richard
Wagoner, David F. Marvin, Chairman of Marvin & Palmer who is is primarily
responsible for Latin America and currency management, Stanley Palmer, President
of Marvin & Palmer who is primarily responsible for Southeast Asia and the India
subcontinent, Terry B. Mason, a Vice President of Marvin & Palmer who is
primarily responsible for Eastern Europe and Africa, Jay F. Middleton, a
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portfolio manager for Marvin & Palmer who is primarily responsible for Latin
America and the Middle East, and Todd D. Marvin, a portfolio manager for Marvin
& Palmer who, along with Mr. Palmer, is primarily responsible for Southeast Asia
and the India subcontinent. David F. Marvin and Stanley Palmer, President,
founded Marvin & Palmer in 1986. Mr. Mason and Mr. Middleton both joined Marvin
& Palmer in 1990. Mr. Todd Marvin joined Marvin & Palmer in 1991.
SUB-ADVISERS
Evergreen Asset has entered into sub-advisory agreements with Lieber &
Company with respect to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN
GLOBAL LEADERS FUND which provide that Lieber & Company's research department
and staff will furnish Evergreen Asset with information, investment
recommendations, advice and assistance, and will be generally available for
consultation on each Fund's portfolio. Lieber & Company will be reimbursed by
Evergreen Asset in connection with the rendering of services on the basis of the
direct and indirect costs of performing such services. There is no additional
charge to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS
FUND for the services provided by Lieber & Company. It is contemplated that
Lieber & Company will, to the extent practicable, effect substantially all of
the portfolio transactions for these Funds on the New York and American Stock
Exchanges. The address of Lieber & Company is 2500 Westchester Avenue, Purchase,
New York 10577. Lieber & Company is an indirect, wholly-owned, subsidiary of
First Union.
BIA, the sub-adviser to the EVERGREEN INTERNATIONAL EQUITY FUND, has been
in operation since 1986 and specializes in the management of international
equity portfolios. BIA currently manages twenty international portfolios,
including five group trust funds, for pension fund sponsors and endowment plans
worldwide. Messrs. Lyle H. Davis, Norman H. Meltz and David A. Umstead are the
principal executive officers of BIA and each own more than 25% of the
outstanding voting securities thereof. As of September 30, 1995 BIA managed a
total of $2.5 billion in assets and served as sub-adviser to one other
investment company with total assets of $148 million.
Marvin & Palmer, sub-adviser to the EVERGREEN EMERGING MARKETS GROWTH
FUND, was founded in 1986 and is engaged in the management of global, non-United
States and emerging markets equity portfolios for institutional accounts. At
September 30, 1995, Marvin & Palmer managed a total of $3.1 billion in
investments for thirty-four institutional investors and five commingled funds
and served as sub-adviser to another investment company with total assets of $33
million.
DISTRIBUTION PLANS AND AGREEMENTS
Rule 12b-1 under the 1940 Act permits an investment company to pay
expenses associated with the distribution of its shares in accordance with a
duly adopted plan. Each Fund has adopted for each of its Class A, Class B and
Class C shares a Rule 12b-1 plan (each, a "Plan" or collectively the "Plans").
Under the Plans, each Fund may incur distribution-related and shareholder
servicing-related expenses which may not exceed an annual rate of .75 of 1% of
the aggregate average daily net assets attributable to each Fund's Class A
shares, 1% of the aggregate average daily net assets attributable to the Class B
and Class C shares of EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN
GLOBAL LEADERS FUND, and .75 of 1% of the aggregate average daily net assets
attributable to the Class B and Class C shares of EVERGREEN INTERNATIONAL EQUITY
FUND and EVERGREEN EMERGING MARKETS GROWTH FUND. Payments under the Plans
adopted with respect to Class A shares are currently voluntarily limited to .25
of 1% of each Fund's aggregate average daily net assets attributable to Class A
shares. The Plans provide that a portion of the fee payable thereunder may
constitute a service fee to be used for providing ongoing personal services
and/or the maintenance of shareholder accounts. EVERGREEN INTERNATIONAL EQUITY
FUND and EVERGREEN EMERGING MARKETS GROWTH FUND have each, in addition to the
Plans adopted with respect to their Class B and Class C shares, adopted
shareholder service plans ("Service Plans") relating to the Class B and Class C
shares which permit each Fund to incur a fee of up to .25 of 1% of the aggregate
average daily net assets attributable to the Class B and Class C shares for
ongoing personal services and/or the maintenance of shareholder accounts. Such
service fee payments to financial intermediaries for such purposes, whether
pursuant to a Plan or Service Plan, will not exceed .25 of 1% of the aggregate
average daily net assets attributable to each Class of shares of each Fund.
Each Fund has also entered into a distribution agreement (each a
"Distribution Agreement" or collectively the "Distribution Agreements") with
Evergreen Funds Distributor, Inc. ("EFD"). Pursuant to the Distribution
Agreements, each Fund will compensate EFD for its services as distributor at a
rate which may not exceed an annual rate of .25 of 1% of a Fund's aggregate
average daily net assets attributable to Class A shares, .75 of 1% of a Fund's
aggregate average daily net assets attributable to the Class B shares and .75 of
1% of a Fund's
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aggregate average daily net assets attributable to the Class C shares. The
Distribution Agreements provide that EFD will use the distribution fee received
from a Fund for payments (i) to compensate broker-dealers or other persons for
distributing shares of the Funds, including interest and principal payments made
in respect of amounts paid to broker-dealers or other persons that have been
financed (EFD may assign its rights to receive compensation under the Plans to
secure such financings), (ii) to otherwise promote the sale of shares of the
Fund, and (iii) to compensate broker-dealers, depository institutions and other
financial intermediaries for providing administrative, accounting and other
services with respect to the Fund's shareholders. The financing of payments made
by EFD to compensate broker-dealers or other persons for distributing shares of
the Funds may be provided by FUNB or its affiliates. The Funds may also make
payments under the Plans (and in the case of EVERGREEN INTERNATIONAL EQUITY FUND
and EVERGREEN EMERGING MARKETS GROWTH FUND, the Service Plans), in amounts up to
.25 of 1% of a Fund's aggregate average daily net assets on an annual basis
attributable to Class B and Class C shares, to compensate organizations, which
may include EFD and each Fund's investment adviser or their affiliates, for
personal services rendered to shareholders and/or the maintenance of shareholder
accounts.
The Funds may not pay any distribution or services fees during any fiscal
period in excess of the amounts set forth above. Since EFD's compensation under
the Distribution Agreements is not directly tied to the expenses incurred by
EFD, the amount of compensation received by it under the Distribution Agreements
during any year may be more or less than its actual expenses and may result in a
profit to EFD. Distribution expenses incurred by EFD in one fiscal year that
exceed the level of compensation paid to EFD for that year may be paid from
distribution fees received from a Fund in subsequent fiscal years.
The Plans are in compliance with rules of the National Association of
Securities Dealers, Inc. which effectively limit the annual asset-based sales
charges and service fees that a mutual fund may pay on a class of shares to .75
of 1% and .25 of 1%, respectively, of the average annual net assets attributable
to that class. The rules also limit the aggregate of all front-end, deferred and
asset-based sales charges imposed with respect to a class of shares by a mutual
fund that also charges a service fee to 6.25% of cumulative gross sales of
shares of that class, plus interest at the prime rate plus 1% per annum.
PURCHASE AND REDEMPTION OF SHARES
HOW TO BUY SHARES
You can purchase shares of any of the Funds through broker-dealers, banks
or other financial intermediaries, or directly through EFD. The minimum initial
investment is $1,000, which may be waived in certain situations. There is no
minimum for subsequent investments. Investments of $25 or more are allowed under
the Systematic Investment Plan. Share certificates are not issued. In states
where EFD is not registered as a broker-dealer shares of a Fund will only be
sold through other broker-dealers or other financial institutions that are
registered. See the Share Purchase Application and Statement of Additional
Information for more information. Only Class A, Class B and Class C shares are
offered through this Prospectus (See "General Information" -- "Other Classes of
Shares").
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<PAGE>
Class A Shares-Front-End Sales Charge Alternative. You can purchase Class A
shares at net asset value plus an initial sales charge on purchases under
$1,000,000. On purchases of $1,000,000 or more, a contingent deferred sales
charge ("CDSC") equal to 1% of the lesser of the purchase price or redemption
value will be imposed on shares redeemed during the first year after purchase.
The schedule of charges for Class A Shares is as follows:
INITIAL SALES CHARGE
<TABLE>
<CAPTION>
AS A % OF THE AS A % OF THE
NET AMOUNT OFFERING COMMISSION TO DEALER/
AMOUNT OF PURCHASE INVESTED PRICE AGENT AS A % OF OFFERING PRICE
<S> <C> <C> <C>
Less than $ 50,000...................... 4.99% 4.75% 4.25%
$ 50,000-$ 99,999....................... 4.71% 4.50% 4.25%
$100,000-$249,999....................... 3.90% 3.75% 3.25%
$250,000-$499,999....................... 2.56% 2.50% 2.00%
$500,000-$999,999....................... 2.04% 2.00% 1.75%
Over $1,000,000......................... None None 1.00% on the first $2,999,999; plus .50
of 1% on amounts over 3,000,000 up to
$4,999,999; plus .25 of 1% on amounts
over $5,000,000
</TABLE>

No front-end sales charges are imposed on Class A shares purchased by:
institutional investors, which may include bank trust departments and registered
investment advisers; investment advisers, consultants or financial planners who
place trades for their own accounts or the accounts of their clients and who
charge such clients a management, consulting, advisory or other fee; clients of
investment advisers or financial planners who place trades for their own
accounts if the accounts are linked to the master account of such investment
advisers or financial planners on the books of the broker-dealer through whom
shares are purchased; institutional clients of broker-dealers, including
retirement and deferred compensation plans and the trusts used to fund these
plans, which place trades through an omnibus account maintained with a Fund by
the broker-dealer; shareholders of record on October 12, 1990 in any series of
Evergreen Investment Trust in existence on that date, and the members of their
immediate families; employees of FUNB and its affiliates, EFD and any
broker-dealer with whom EFD has entered into an agreement to sell shares of the
Funds, and members of the immediate families of such employees; and upon the
initial purchase of an Evergreen mutual fund by investors reinvesting the
proceeds from a redemption within the preceding thirty days of shares of other
mutual funds, provided such shares were initially purchased with a front-end
sales charge or subject to a contingent deferred sales charge ("CDSC"). Certain
broker-dealers or other financial institutions may impose a fee in connection
with transactions in shares of the Funds.
Class A shares may also be purchased at net asset value by qualified and
non-qualified employee benefit and savings plans which make shares of the Funds
and the other Evergreen mutual funds available to their participants, and which:
(a) are employee benefit plans having at least $1,000,000 in investable assets,
or 250 or more eligible participants; or (b) are non-qualified benefit or profit
sharing plans which are sponsored by an organization which also make the
Evergreen mutual funds available through a qualified plan meeting the criteria
specified under (a). In connection with sales made to plans of the type
described in the preceding sentence that are clients of broker-dealers, and
which do not qualify for sales at net asset value under the conditions set forth
in the paragraph above, payments may be made in an amount equal to .50 of 1% of
the net asset value of shares purchased. These payments are subject to reclaim
in the event shares are redeemed within twelve months after purchase.
When Class A shares are sold, EFD will normally retain a portion of the
applicable sales charge and pay the balance to the broker-dealer or other
financial intermediary through whom the sale was made. EFD may also pay fees to
banks from sales charges for services performed on behalf of the bank's
customers in connection with the purchase of shares of the Funds. In addition to
compensation paid at the time of sale, entities whose clients have purchased
Class A shares may receive a trailing commission equal to .25 of 1% of the
average daily value on an annual basis of Class A shares held by their clients.
Certain purchases of Class A shares may qualify for reduced sales charges in
accordance with a Fund's Combined Purchase Privilege, Cumulative Quantity
Discount, Statement of Intention, Privilege for Certain Retirement Plans and
Reinstatement Privilege. Consult the Share Purchase Application and Statement of
Additional Information for additional information concerning these reduced sales
charges.
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<PAGE>
Class B Shares -- Deferred Sales Charge Alternative. You can purchase Class B
shares at net asset value without an initial sales charge. However, you may pay
a CDSC if you redeem shares within seven years after purchase. Shares obtained
from dividend or distribution reinvestment are not subject to the CDSC. The
amount of the CDSC (expressed as a percentage of the lesser of the current net
asset value or original cost) will vary according to the number of years from
the purchase of Class B shares as set forth below.
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
YEAR SINCE PURCHASE SALES CHARGE
<S> <C>
FIRST............................... 5%
SECOND.............................. 4%
THIRD and FOURTH.................... 3%
FIFTH............................... 2%
SIXTH and SEVENTH................... 1%
</TABLE>

The CDSC is deducted from the amount of the redemption and is paid to
EFD. The CDSC will be waived on redemptions of shares following the death or
disability of a shareholder, to meet distribution requirements for certain
qualified retirement plans or in the case of certain redemptions made under a
Fund's Systematic Cash Withdrawal Plan. Class B shares are subject to higher
distribution and/or shareholder service fees than Class A shares for a period of
seven years (after which it is expected that they will convert to Class A
shares). The higher fees mean a higher expense ratio, so Class B shares pay
correspondingly lower dividends and may have a lower net asset value than Class
A shares. See the Statement of Additional Information for further details.
Class C Shares -- Level-Load Alternative. You can purchase Class C shares
without any initial sales charge and, therefore, the full amount of your
investment will be used to purchase Fund shares. However, you will pay a 1% CDSC
if you redeem shares during the first year after purchase. Class C shares incur
higher distribution and/or shareholder service fees than Class A shares but,
unlike Class B shares, do not convert to any other class of shares of the Fund.
The higher fees mean a higher expense ratio, so Class C shares pay
correspondingly lower dividends and may have a lower net asset value than Class
A shares. Shares obtained from dividend or distribution reinvestment are not
subject to the CDSC. The maximum amount of Class C Shares that may be purchased
is $500,000.
With respect to Class B shares and Class C shares, no CDSC will be
imposed on: (1) the portion of redemption proceeds attributable to increases in
the value of the account due to increases in the net asset value per share, (2)
shares acquired through reinvestment of dividends and capital gains, (3) shares
held for more than seven years (in the case of Class B shares) or one year (in
the case of Class C shares) after the end of the calendar month of acquisition,
(4) accounts following the death or disability of a shareholder, or (5) minimum
required distributions to a shareholder over the age of 70 1/2 from an IRA or
other retirement plan.
How the Funds Value Their Shares. The net asset value of each Class of shares of
a Fund is calculated by dividing the value of the amount of the Fund's net
assets attributable to that Class by the number of outstanding shares of that
Class. Shares are valued each day the New York Stock Exchange (the "Exchange")
is open as of the close of regular trading (currently 4:00 p.m. Eastern time).
The securities in a Fund are valued at their current market value determined on
the basis of market quotations or, if such quotations are not readily available,
such other methods as the Trustees of each Trust under which each Fund operates
believe would accurately reflect fair value. Non-dollar denominated securities
will be valued as of the close of the Exchange at the closing price of such
securities in their principal trading market.
General. The decision as to which Class of shares is more beneficial to you
depends on the amount of your investment and the length of time you will hold
it. If you are making a large investment, thus qualifying for a reduced sales
charge, you might consider Class A shares. If you are making a smaller
investment, you might consider Class B shares since 100% of your purchase is
invested immediately and since such shares will convert to Class A shares, which
incur lower ongoing distribution and/or shareholder service fees, after seven
years. If you are unsure of the time period of your investment, you might
consider Class C shares since there are no initial sales charges and, although
there is no conversion feature, the CDSC only applies to redemptions made during
the first year. Consult your financial intermediary for further information. The
compensation received by dealers and agents may differ depending on whether they
sell Class A, Class B or Class C shares. There is no size limit on purchases of
Class A shares.
In addition to the discount or commission paid to dealers, EFD will from
time to time pay to dealers additional cash or other incentives that are
conditioned upon the sale of a specified minimum dollar amount of
24

<PAGE>
shares of a Fund and/or other Evergreen Mutual Funds. Such incentives will take
the form of payment for attendance at seminars, lunches, dinners, sporting
events or theater performances, or payment for travel, lodging and entertainment
incurred in connection with travel by persons associated with a dealer and their
immediate family members to urban or resort locations within or outside the
United States. Such a dealer may elect to receive cash incentives of equivalent
amount in lieu of such payments. EFD may also limit the availability of such
incentives to certain specified dealers. EFD from time to time sponsors
promotions involving First Union Brokerage Services, Inc. ("FUBS"), an affiliate
of each Fund's investment adviser, and other selected dealers, pursuant to which
incentives are paid, including gift certificates and payments in amounts up to
1% of the dollar amount of shares of a Fund sold. Awards may also be made based
on the opening of a minimum number of accounts. Such promotions are not being
made available to all dealers.
Additional Purchase Information. As a condition of this offering, if a purchase
is canceled due to nonpayment or because an investor's check does not clear, the
investor will be responsible for any loss a Fund or the Fund's investment
adviser incurs. If such investor is an existing shareholder, a Fund may redeem
shares from an investor's account to reimburse the Fund or its investment
adviser for any loss. In addition, such investors may be prohibited or
restricted from making further purchases in any of the Evergreen mutual funds.
The Funds will not accept third party checks other than those payable directly
to a shareholder whose account has been in existence at least thirty days.
HOW TO REDEEM SHARES
You may "redeem", i.e., sell your shares in a Fund to the Fund on any day
the Exchange is open, either directly or through your financial intermediary.
The price you will receive is the net asset value (less any applicable CDSC for
Class B or Class C shares) next calculated after the Fund receives your request
in proper form. Proceeds generally will be sent to you within seven days.
However, for shares recently purchased by check, a Fund will not send proceeds
until it is reasonably satisfied that the check has been collected (which may
take up to ten days). Once a redemption request has been telephoned or mailed,
it is irrevocable and may not be modified or canceled.
Redeeming Shares Through Your Financial Intermediary. A Fund must receive
instructions from your financial intermediary before 4:00 p.m. (Eastern time)
for you to receive that day's net asset value (less any applicable CDSC for
Class B or Class C shares). Your financial intermediary is responsible for
furnishing all necessary documentation to a Fund and may charge you for this
service. Certain financial intermediaries may require that you give instructions
earlier than 4:00 p.m.
Redeeming Shares Directly by Mail or Telephone. Send a signed letter of
instruction or stock power form to State Street Bank and Trust Company ("State
Street") which is the registrar, transfer agent and dividend-disbursing agent
for each Fund. Stock power forms are available from your financial intermediary,
State Street, and many commercial banks. Additional documentation is required
for the sale of shares by corporations, financial intermediaries, fiduciaries
and surviving joint owners. Signature guarantees are required for all redemption
requests for shares with a value of more than $50,000 or where the redemption
proceeds are to be mailed to an address other than that shown in the account
registration. A signature guarantee must be provided by a bank or trust company
(not a Notary Public), a member firm of a domestic stock exchange or by other
financial institutions whose guarantees are acceptable to State Street.
Shareholders may withdraw amounts of $1,000 or more from their accounts
by calling State Street at 800-423-2615 between the hours of 8:00 a.m. and 5:30
p.m. (Eastern time) each business day (i.e., any weekday exclusive of days on
which the Exchange or State Street's offices are closed). The Exchange is closed
on New Year's Day, Presidents Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day. Redemption requests made after
4:00 p.m. (Eastern time) will be processed using the net asset value determined
on the next business day. Such redemption requests must include the
shareholder's account name, as registered with a Fund, and the account number.
During periods of drastic economic or market changes, shareholders may
experience difficulty in effecting telephone redemptions. Shareholders who are
unable to reach a Fund by telephone should follow the procedures outlined above
for redemption by mail.
The telephone redemption service is not made available to shareholders
automatically. Shareholders wishing to use the telephone redemption service must
indicate this on the Share Purchase Application and choose how the redemption
proceeds are to be paid. Redemption proceeds will either (i) be mailed by check
to the shareholder at the address in which the account is registered or (ii) be
wired to an account with the same registration as the shareholder's account in a
Fund at a designated commercial bank. State Street currently
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<PAGE>
deducts a $5 wire charge from all redemption proceeds wired. This charge is
subject to change without notice. A shareholder who decides later to use this
service, or to change instructions already given, should fill out a Shareholder
Services Form and send it to State Street Bank and Trust Company, P.O. Box 9021,
Boston, Massachusetts 02205-9827, with such shareholder's signature guaranteed
by a bank or trust company (not a Notary Public), a member firm of a domestic
stock exchange or by other financial institutions whose guarantees are
acceptable to State Street. Shareholders should allow approximately ten days for
such form to be processed. The Funds will employ reasonable procedures to verify
that telephone requests are genuine. These procedures include requiring some
form of personal identification prior to acting upon instructions and tape
recording of conversations. If a Fund fails to follow such procedures, it may be
liable for any losses due to unauthorized or fraudulent instructions. The Fund
shall not be liable for following telephone instructions reasonably believed to
be genuine. Also, each Fund reserves the right to refuse a telephone redemption
request, if it is believed advisable to do so. Financial intermediaries may
charge a fee for handling telephonic requests. The telephone redemption option
may be suspended or terminated at any time without notice.
General. The redemption of shares is a taxable transaction for Federal income
tax purposes. Under unusual circumstances, a Fund may suspend redemptions or
postpone payment for up to seven days or longer, as permitted by Federal
securities law. The Funds reserve the right to close an account that through
redemption has remained below $1,000 for thirty days. Shareholders will receive
sixty days' written notice to increase the account value before the account is
closed. The Funds have elected to be governed by Rule 18f-1 under the 1940 Act
pursuant to which each Fund is obligated to redeem shares solely in cash, up to
the lesser of $250,000 or 1% of a Fund's total net assets during any ninety day
period for any one shareholder. See the Statement of Additional Information for
further details.
EXCHANGE PRIVILEGE
How To Exchange Shares. You may exchange some or all of your shares for shares
of the same Class in the other Evergreen mutual funds through your financial
intermediary, or by telephone or mail as described below. An exchange which
represents an initial investment in another Evergreen mutual fund must amount to
at least $1,000. Once an exchange request has been telephoned or mailed, it is
irrevocable and may not be modified or canceled. Exchanges will be made on the
basis of the relative net asset value of the shares exchanged next determined
after an exchange request is received. Exchanges are subject to minimum
investment and suitability requirements.
Each of the Evergreen mutual funds has different investment objectives
and policies. For complete information, a prospectus of the Fund into which an
exchange will be made should be read prior to the exchange. An exchange is
treated for Federal income tax purposes as a redemption and purchase of shares
and may result in the realization of a capital gain or loss. Shareholders are
limited to five exchanges per calendar year, with a maximum of three per
calendar quarter. This exchange privilege may be modified or discontinued at any
time by the Fund upon sixty days' notice to shareholders and is only available
in states in which shares of the fund being acquired may lawfully be sold.
No CDSC will be imposed in the event Class B or Class C shares are
exchanged for Class B or Class C shares, respectively, of other Evergreen mutual
funds. If you redeem shares, the CDSC applicable to the Class B or Class C
shares of the Evergreen mutual fund originally purchased for cash is applied.
Also, Class B shares will continue to age following an exchange for purposes of
conversion to Class A shares and determining the amount of the applicable CDSC.
Exchanges Through Your Financial Intermediary. A Fund must receive exchange
instructions from your financial intermediary before 4:00 p.m. (Eastern time)
for you to receive that day's net asset value. Your financial intermediary is
responsible for furnishing all necessary documentation to a Fund and may charge
you for this service.
Exchanges by Telephone and Mail. You may exchange shares with a value of $1,000
or more by telephone by calling State Street at 800-423-2615. Exchange requests
made after 4:00 p.m. (Eastern time) will be processed using the net asset value
determined on the next business day. During periods of drastic economic or
market changes, shareholders may experience difficulty in effecting telephone
exchanges. You should follow the procedures outlined below for exchanges by mail
if you are unable to reach State Street by telephone. If you wish to use the
telephone exchange service you should indicate this on the Share Purchase
Application. As noted above, each Fund will employ reasonable procedures to
confirm that instructions for the redemption or exchange of shares communicated
by telephone are genuine. A telephone exchange may be refused by a Fund or State
Street if it is believed advisable to do so. Procedures for exchanging Fund
shares by telephone may be modified or
26

<PAGE>
terminated at any time. Written requests for exchanges should follow the same
procedures outlined for written redemption requests in the section entitled "How
to Redeem Shares", however, no signature guarantee is required.
SHAREHOLDER SERVICES
The Funds offer the following shareholder services. For more information
about these services or your account, contact your financial intermediary, EFD
or the toll-free number on the front page of this Prospectus. Some services are
described in more detail in the Share Purchase Application.
Systematic Investment Plan. You may make monthly or quarterly investments into
an existing account automatically in amounts of not less than $25 per month or
$75 per quarter. Each Fund reserves the right to close an account that through
liquidation or termination of the systematic investment plan has not reached a
minimum balance of $1,000 ($250 for retirement accounts) within 24 months of the
initial investment. You can open a systematic investment plan in the Evergreen
International Equity Fund for a minimum of only $50 per month with no initial
investment required.
Telephone Investment Plan. You may make investments into an existing account
electronically in amounts of not less than $100 or more than $10,000 per
investment. Telephone investment requests received by 3:00 p.m. (Eastern time)
will be credited to a shareholder's account the day the request is received.
Systematic Cash Withdrawal Plan. When an account of $10,000 or more is opened or
when an existing account reaches that size, you may participate in the Funds
Systematic Cash Withdrawal Plan by filling out the appropriate part of the Share
Purchase Application. Under this plan, you may receive (or designate a third
party to receive) a monthly or quarterly check in a stated amount of not less
than $75. Fund shares will be redeemed as necessary to meet withdrawal payments.
All participants must elect to have their dividends and capital gain
distributions reinvested automatically. Any applicable Class B CDSC will be
waived with respect to redemptions occurring under a Systematic Cash Withdrawal
Plan during a calendar year to the extent that such redemptions do not exceed
10% of (i) the initial value of the account plus (ii) the value, at the time of
purchase, of any subsequent investments.
Investments Through Employee Benefit and Savings Plans. Certain qualified and
non-qualified benefit and savings plans may make shares of the Funds and the
other Evergreen mutual funds available to their participants. Investments made
by such employee benefit plans may be exempt from front-end sales charges if
they meet the criteria set forth under "Class A Shares-Front End Sales Charge
Alternative". Each Fund's investment adviser may provide compensation to
organizations providing administrative and recordkeeping services to plans which
make shares of the Evergreen mutual funds available to their participants.
Automatic Reinvestment Plan. For the convenience of investors, all dividends and
distributions are automatically reinvested in full and fractional shares of the
Funds at the net asset value per share at the close of business on the record
date, unless otherwise requested by a shareholder in writing. If the transfer
agent does not receive a written request for subsequent dividends and/or
distributions to be paid in cash at least three full business days prior to a
given record date, the dividends and/or distributions to be paid to a
shareholder will be reinvested. If you elect to receive dividends and
distributions in cash and the U.S. Postal Service cannot deliver the checks, or
if the checks remain uncashed for six months, the checks will be reinvested into
your account at the then current net asset value.
Tax Sheltered Retirement Plans. You may open a pension and profit sharing
account in any Evergreen mutual fund (except those funds having an objective of
providing tax free income) under the following prototype retirement plans: (i)
Individual Retirement Accounts ("IRAs") and Rollover IRAs; (ii) Simplified
Employee Pension (SEP) for sole proprietors, partnerships and corporations; and
(iii) Profit-Sharing and Money Purchase Pension Plans for corporations and their
employees.
EFFECT OF BANKING LAWS
The Glass-Steagall Act and other banking laws and regulations presently
prohibit member banks of the Federal Reserve System ("Member Banks") or their
non-bank affiliates from sponsoring, organizing, controlling, or distributing
the shares of registered open-end investment companies such as the Funds. Such
laws and regulations also prohibit banks from issuing, underwriting or
distributing securities in general. However, under the Glass-Steagall Act and
such other laws and regulations, a Member Bank or an affiliate thereof may act
as investment adviser, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer.
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<PAGE>
Evergreen Asset, since it is a subsidiary of FUNB, and CMG are subject to and in
compliance with the aforementioned laws and regulations.
Changes to applicable laws and regulations or future judicial or
administrative decisions could result in CMG or Evergreen Asset being prevented
from continuing to perform the services required under the investment advisory
contract or from acting as agent in connection with the purchase of shares of a
Fund by its customers. If CMG or Evergreen Asset were prevented from continuing
to provide the services called for under the investment advisory agreement, it
is expected that the Trustees would identify, and call upon each Fund's
shareholders to approve, a new investment adviser. If this were to occur, it is
not anticipated that the shareholders of any Fund would suffer any adverse
financial consequences.
OTHER INFORMATION
DIVIDENDS, DISTRIBUTIONS AND TAXES
It is the policy of each Fund to distribute to shareholders its
investment company income, if any, annually and any net realized capital gains
annually or more frequently as required as a condition of continued
qualification as a regulated investment company by the Code. Dividends and
distributions generally are taxable in the year in which they are paid, except
any dividends paid in January that were declared in the previous calendar
quarter may be treated as paid in December of the previous year. Income
dividends and capital gain distributions are automatically reinvested in
additional shares of the Fund making the distribution at the net asset value per
share at the close of business on the record date, unless the shareholder has
made a written request for payment in cash.
Each Fund has qualified and intends to continue to qualify to be treated
as a regulated investment company under the Code. While so qualified, it is
expected that each Fund will not be required to pay any Federal income tax on
that portion of its investment company taxable income and any net realized
capital gains it distributes to shareholders. The Code imposes a 4%
nondeductible excise tax on regulated investment companies, such as the Funds,
to the extent they do not meet certain distribution requirements by the end of
each calendar year. Each Fund anticipates meeting such distribution
requirements. Most shareholders of the Funds normally will have to pay Federal
income tax and any state or local taxes on the dividends and distributions they
receive from a Fund whether such dividends and distributions are made in cash or
in additional shares. Questions on how any distributions will be taxed to the
investor should be directed to the investor's own tax adviser.
Under current law, the highest Federal income tax rate applicable to net
long-term capital gains realized by individuals is 28%. The rate applicable to
corporations is 35%. Certain income from a Fund may qualify for a corporate
dividends-received deduction of 70%. Following the end of each calendar year,
every shareholder of the Fund will be sent applicable tax information and
information regarding the dividends and capital gain distributions made during
the calendar year.
A Fund may be subject to foreign withholding taxes which would reduce the
yield on its investments. Tax treaties between certain countries and the United
States may reduce or eliminate such taxes. Shareholders of a Fund who are
subject to United States Federal income tax may be entitled, subject to certain
rules and limitations, to claim a Federal income tax credit or deduction for
foreign income taxes paid by a Fund. See the Statement of Additional Information
for additional details. A Fund's transactions in options, futures and forward
contracts may be subject to special tax rules. These rules can affect the
amount, timing and characteristics of distributions to shareholders.
A Fund may be subject to foreign withholding taxes which would reduce the
yield on its investments. Tax treaties between certain countries and the United
States may reduce or eliminate such taxes. Shareholders of a Fund who are
subject to United States Federal income tax may be entitled, subject to certain
rules and limitations, to claim a Federal income tax credit or deduction for
foreign income taxes paid by a Fund. See the Statement of Additional Information
for additional details. A Fund's transactions in options, futures and forward
contracts may be subject to special tax rules. These rules can affect the
amount, timing and characteristics of distributions to shareholders.
If more than 50% of the value of a Fund's assets at the end of the tax
year is represented by stock or securities of foreign corporations, the Fund
intends to qualify for certain Code stipulations that would allow shareholders
to claim a foreign tax credit or deduction on their U.S. income tax returns. The
Code may limit a
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<PAGE>
shareholder's ability to claim a foreign tax credit. Furthermore, shareholders
who elect to deduct their portion of a Fund's foreign taxes rather than take the
foreign tax credit must itemize deductions on their income tax returns.
Each Fund is required by Federal law to withhold 31% of reportable
payments (which may include dividends, capital gain distributions and
redemptions) paid to certain shareholders. In order to avoid this backup
withholding requirement, you must certify on the Share Purchase Application, or
on a separate form supplied by State Street, that your social security or
taxpayer identification number is correct and that you are not currently subject
to backup withholding or are exempt from backup withholding.
The foregoing discussion of Federal income tax consequences is based on
tax laws and regulations in effect on the date of this Prospectus, and is
subject to change by legislative or administrative action. As the foregoing
discussion is for general information only, you should also review the
discussion of "Additional Tax Information" contained in the Statement of
Additional Information. In addition, you should consult your own tax adviser as
to the tax consequences of investments in the Funds, including the application
of state and local taxes which may be different from Federal income tax
consequences described above.
GENERAL INFORMATION
Portfolio Transactions. Consistent with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., and subject to seeking best
price and execution, a Fund may consider sales of its shares as a factor in the
selection of dealers to enter into portfolio transactions with the Fund.
Organization. The EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL
LEADERS FUND are separate series of the Evergreen Equity Trust (formerly
Evergreen Real Estate Equity Trust), a Massachusetts business trust organized in
1988. EVERGREEN INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH
FUND are separate investment series of Evergreen Investment Trust (formerly
First Union Funds), a Massachusetts business trust organized in 1984. The Funds
do not intend to hold annual shareholder meetings; shareholder meetings will be
held only when required by applicable law. Shareholders have available certain
procedures for the removal of Trustees, including the right to demand that a
meeting of shareholders be called for the purpose of voting thereon if 10% of
the shareholders so request in writing.
A shareholder in each Class of a Fund will be entitled to his or her
share of all dividends and distributions from a Fund's assets, based upon the
relative value of such shares to those of other Classes of the Fund, and, upon
redeeming shares, will receive the then current net asset value of the Class of
shares of the Fund represented by the redeemed shares less any applicable
contingent deferred sales charges. Each Trust named above is empowered to
establish, without shareholder approval, additional investment series, which may
have different investment objectives, and additional Classes of shares for any
existing or future series. If an additional series or Class were established in
a Fund, each share of the series or Class would normally be entitled to one vote
for all purposes. Generally, shares of each series and Class would vote together
as a single class on matters, such as the election of Trustees, that affect each
series and Class in substantially the same manner. Class A, B, C and Y shares
have identical voting, dividend, liquidation and other rights, except that each
Class bears, to the extent applicable, its own distribution, shareholder service
and transfer agency expenses as well as any other expenses applicable only to a
specific Class. Each Class of shares votes separately with respect to Rule 12b-1
distribution plans and other matters for which separate class voting is
appropriate under applicable law. Shares are entitled to dividends as determined
by the Trustees and, in liquidation of a Fund, are entitled to receive the net
assets of the Fund.
Custodian, Registrar, Transfer Agent and Dividend-Disbursing Agent. State Street
Bank and Trust Company, P.O. Box 9021, Boston, Massachusetts 02205-9827 acts as
each Fund's custodian, registrar, transfer agent and dividend-disbursing agent.
State Street is compensated for its services as transfer agent by a fee based
upon the number of shareholder accounts maintained for the Funds. The transfer
agency fee with respect to the Class B shares will be higher than the transfer
agency fee with respect to the Class A shares or Class C shares.
Principal Underwriter. EFD, an affiliate of Furman Selz LLC, located 230 Park
Avenue, New York, New York 10169, is the principal underwriter of the Funds.
Furman Selz LLC also acts as sub-administrator to EVERGREEN INTERNATIONAL EQUITY
FUND, EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN GLOBAL LEADERS FUND
and provides certain sub-administrative services to Evergreen Asset in
connection with its role as investment adviser to EVERGREEN GLOBAL REAL ESTATE
EQUITY FUND, including providing personnel to serve as officers of the Funds.
29

<PAGE>
Other Classes of Shares. Each Fund currently offers four classes of shares,
Class A, Class B, Class C and Class Y, and may in the future offer additional
classes. Class A, Class B, Class C shares are the only class of shares offered
by this Prospectus. Class Y shares are only available to (i) persons who at or
prior to December 31, 1994, owned shares in a mutual fund advised by Evergreen
Asset, (ii) certain institutional investors and (iii) investment advisory
clients of CMG, Evergreen Asset or their affiliates. The dividends payable with
respect to Class A, Class B and Class C shares will be less than those payable
with respect to Class Y shares due to the distribution and shareholder servicing
related expenses borne by Class A, Class B and Class C shares and the fact that
such expenses are not borne by Class Y shares.
Performance Information. From time to time, the Funds may quote their "total
return" or "yield" for a specified period in advertisements, reports or other
communications to shareholders. Total return and yield are computed separately
for Class Y, Class A, Class B and Class C shares. A Fund's total return for each
such period is computed by finding, through the use of a formula prescribed by
the SEC, the average annual compounded rate of return over the period that would
equate an assumed initial amount invested to the value of the investment at the
end of the period. For purposes of computing total return, dividends and capital
gains distributions paid on shares of a Fund are assumed to have been reinvested
when paid and the maximum sales charges applicable to purchases of a Fund's
shares are assumed to have been paid. Yield is a way of showing the rate of
income the Fund earns on its investments as a percentage of the Fund's share
price. The Fund's yield is calculated according to accounting methods that are
standardized by the SEC for all stock and bond funds. Because yield accounting
methods differ from the method used for other accounting purposes, the Fund's
yield may not equal its distribution rate, the income paid to your account or
the net investment income reported in the Fund's financial statements. To
calculate yield, the Fund takes the interest income it earned from its portfolio
of investments (as defined by the SEC formula) for a 30-day period (net of
expenses), divides it by the average number of shares entitled to receive
dividends, and expresses the result as an annualized percentage rate based on
the Fund's share price at the end of the 30-day period. This yield does not
reflect gains or losses from selling securities.
In marketing a Fund's shares, information may be provided that is
designed to help individuals understand their investment goals and explore
various financial strategies. Such information may include publications
describing general principles of investing, such as asset allocation,
diversification, risk tolerance, and goal setting; a questionnaire designed to
help create a personal financial profile; and an action plan offering investment
alternatives. The information provided to investors may also include discussions
of other Evergreen mutual funds, products, and services, which may include:
retirement investing; brokerage products and services; the effects of periodic
investment plans and dollar cost averaging; saving for college; and charitable
giving. In addition, the information provided to investors may quote financial
or business publications and periodicals, including model portfolios or
allocations, as they relate to fund management, investment philosophy, and
investment techniques. The materials may also reprint, and use as advertising
and sales literature, articles from Evergreen Events, a quarterly magazine
provided free of charge to Evergreen Mutual fund shareholders.
Performance data for each class of shares will be included in any
advertisement or sales literature using performance data of a Fund. These
advertisements may quote performance rankings or ratings of a Fund by financial
publications or independent organizations such as Lipper Analytical Services,
Inc. and Morningstar, Inc. or compare a Fund's performance to various indices.
The Fund may also advertise in items of sales literature an "actual distribution
rate" which is computed by dividing the total ordinary income distributed (which
may include the excess of short-term capital gains over losses) to shareholders
for the latest twelve month period by the maximum public offering price per
share on the last day of the period. Investors should be aware that past
performance may not be reflective of future results.
Liability Under Massachusetts Law. Under Massachusetts law, Trustees and
shareholders of a business trust may, in certain circumstances, be held
personally liable for its obligations. The Declarations of Trust under which the
Funds operate provide that no Trustee or shareholder will be personally liable
for the obligations of the Trust and that every written contract made by the
Trust contain a provision to that effect. If any Trustee or shareholder were
required to pay any liability of the Trust, that person would be entitled to
reimbursement from the general assets of the Trust.
Additional Information. This Prospectus and the Statement of Additional
Information, which has been incorporated by reference herein, do not contain all
the information set forth in the Registration Statements filed by the Trusts
with the SEC under the Securities Act. Copies of the Registration Statements may
be obtained at a reasonable charge from the SEC or may be examined, without
charge, at the offices of the SEC in Washington, D.C.
30

<PAGE>
INVESTMENT ADVISERS
Capital Management Group of First Union National Bank of North Carolina, 201
South College Street, Charlotte, North Carolina 28288
EVERGREEN EMERGING MARKETS GROWTH FUND, EVERGREEN INTERNATIONAL EQUITY
FUND

Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase, New York
10577
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND, EVERGREEN GLOBAL LEADERS FUND

CUSTODIAN & TRANSFER AGENT
State Street Bank and Trust Company, Box 9021, Boston, Massachusetts
02205-9827

LEGAL COUNSEL
Sullivan & Worcester LLP, 1025 Connecticut Avenue, N.W., Washington, D.C.
20036

INDEPENDENT AUDITORS
KPMG Peat Marwick LLP, One Mellon Bank Center, Pittsburgh, Pennsylvania 15219
EVERGREEN EMERGING MARKETS GROWTH FUND, EVERGREEN INTERNATIONAL EQUITY
FUND

Price Waterhouse LLP, 1177 Avenue of the Americas, New York, New York 10036
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND, EVERGREEN GLOBAL LEADERS FUND

DISTRIBUTOR
Evergreen Funds Distributor, Inc., 230 Park Avenue, New York, New York 10169

536331 Rev. 02

********************************************************************************
********************************************************************************

<PAGE>

PROSPECTUS May 17, 1996

EVERGREEN(SM) INTERNATIONAL/GLOBAL GROWTH FUNDS (EVERGREEN TREE LOGO)

EVERGREEN EMERGING MARKETS GROWTH FUND
EVERGREEN INTERNATIONAL EQUITY FUND
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
EVERGREEN GLOBAL LEADERS FUND

CLASS Y SHARES

The Evergreen International/Global Growth Funds (the "Funds") are
designed to provide investors with a selection of investment alternatives
which seek to provide capital growth and diversification. This Prospectus
provides information regarding the Class Y shares offered by the Funds.
Each Fund is, or is a series of, an open-end, diversified, management
investment company. This Prospectus sets forth concise information about
the Funds that a prospective investor should know before investing. The
address of the Funds is 2500 Westchester Avenue, Purchase, New York 10577.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.

KEEP THIS PROSPECTUS FOR FUTURE REFERENCE

EVERGREEN(SM) is a Service Mark of Evergreen Asset Management Corp. Copyright
1995, Evergreen Asset Management Corp.

<PAGE>
TABLE OF CONTENTS

<TABLE>
<S> <C>
OVERVIEW OF THE FUNDS 2
EXPENSE INFORMATION 3
FINANCIAL HIGHLIGHTS 5
DESCRIPTION OF THE FUNDS 10
Investment Objectives and Policies 10
Investment Practices and Restrictions 12
MANAGEMENT OF THE FUNDS 19
Investment Advisers 19
Sub-Advisers 21
PURCHASE AND REDEMPTION OF SHARES 21
How to Buy Shares 21
How to Redeem Shares 22
Exchange Privilege 23
Shareholder Services 24
Effect of Banking Laws 24

OTHER INFORMATION 25
Dividends, Distributions and Taxes 25
General Information 26
</TABLE>

OVERVIEW OF THE FUNDS

The following summary is qualified in its entirety by the more detailed
information contained elsewhere in this Prospectus. See "Description of the
Funds" and "Management of the Funds".

The investment adviser to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and
EVERGREEN GLOBAL LEADERS FUND is Evergreen Asset Management Corp. which, with
its predecessors, has served as an investment adviser to the Evergreen mutual
funds since 1971. Evergreen Asset is a wholly-owned subsidiary of First Union
National Bank of North Carolina, which in turn is a subsidiary of First Union
Corporation, the sixth largest bank holding company in the United States. The
Capital Management Group of First Union National Bank of North Carolina serves
as investment adviser to EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN
INTERNATIONAL EQUITY FUND.

EVERGREEN EMERGING MARKETS GROWTH FUND (formerly First Union Emerging
Markets Growth Portfolio) seeks to provide long-term capital appreciation. The
EMERGING MARKETS GROWTH FUND invests in equity securities of issuers located in
countries with emerging markets.

EVERGREEN INTERNATIONAL EQUITY FUND (formerly First Union International
Equity Portfolio) seeks to provide long-term capital appreciation. The EVERGREEN
INTERNATIONAL EQUITY FUND invests in equity securities of non-U.S. issuers.

EVERGREEN GLOBAL REAL ESTATE EQUITY FUND seeks long-term capital growth.
Current income is a secondary objective. It invests primarily in equity
securities of United States and non-United States companies which are
principally engaged in the real estate industry or which own significant real
estate assets. It will not purchase direct interests in real estate.

EVERGREEN GLOBAL LEADERS FUND seeks to achieve capital appreciation by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
The Fund's investment adviser will attempt to screen the largest companies in
the world's major industrialized countries and cause the Fund to invest, in the
opinion of the Fund's investment adviser, in the 100 best based on certain
qualitative and quantitative criteria, including those with the highest return
on equity and consistent earnings growth.

THERE IS NO ASSURANCE THAT THE INVESTMENT OBJECTIVE OF ANY FUND WILL BE
ACHIEVED.

<PAGE>
EXPENSE INFORMATION

The table set forth below summarizes the shareholder transaction costs
associated with an investment in the Class Y Shares of the Fund. For further
information see "Purchase and Redemption of Shares".

<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES
<S> <C>
Maximum Sales Charge Imposed on Purchases None
Sales Charge on Dividend Reinvestments None
Contingent Deferred Sales Charge None
Redemption Fee None
Exchange Fee (only applies after 4 exchanges per year) $ 5.00
</TABLE>

The following table shows for the Fund the estimated annual operating
expenses (as a percentage of average net assets) attributable to Class Y Shares,
together with examples of the cumulative effect of such expenses on a
hypothetical $1,000 investment for the periods specified assuming (i) a 5%
annual return and (ii) redemption at the end of each period.

EVERGREEN EMERGING MARKETS GROWTH FUND

<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES* EXAMPLE
<S> <C> <C> <C>
Management Fees 1.50% After 1 Year $ 18
12b-1 Fees -- After 3 Years $ 55
Other Expenses** .25% After 5 Years $ 95
After 10 Years $ 206
Total 1.75%
</TABLE>

EVERGREEN INTERNATIONAL EQUITY FUND

<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES* EXAMPLE
<S> <C> <C> <C>
Management Fees .80% After 1 Year $ 16
12b-1 Fees -- After 3 Years $ 50
Other Expenses .78% After 5 Years $ 86
After 10 Years $ 188
Total 1.58%
</TABLE>

EVERGREEN GLOBAL REAL ESTATE EQUITY FUND

<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES EXAMPLE
<S> <C> <C> <C>
Management Fees 1.00% After 1 Year $ 16
12b-1 Fees -- After 3 Years $ 49
Other Expenses .54% After 5 Years $ 84
After 10 Years $ 183
Total 1.54%
</TABLE>

<PAGE>
EVERGREEN GLOBAL LEADERS FUND

<TABLE>
<CAPTION>
ANNUAL
OPERATING
EXPENSES EXAMPLE
<S> <C> <C> <C>
Management Fees .95% After 1 Year $ 15
12b-1 Fees -- After 3 Years $ 47
Other Expenses** .55% After 5 Years $ 82
After 10 Years $ 179
Total 1.50%
</TABLE>

* The estimated annual operating expenses and examples do not reflect fee
waivers and expense reimbursements for the most recent fiscal period. Actual
expenses for Class Y Shares net of fee waivers and expense reimbursements for
the fiscal period ended October 31, 1995 were as follows:

<TABLE>
<S> <C>
Evergreen Emerging Markets Growth Fund 1.48%
Evergreen International Equity Fund .94%
</TABLE>

** Reflects agreements by CMG and Evergreen Asset to limit aggregate operating
expenses (including the investment advisory fees, but excluding interest,
taxes, brokerage commissions, Rule 12b-1 fees, shareholder servicing fees and
extraordinary expenses) of Evergreen Emerging Markets Growth Fund and
Evergreen Global Leaders Fund, respectively, to 1.75% and 1.50%,
respectively, of average net assets for the foreseeable future. Absent such
agreements, the estimated annual operating expenses for the Fund would be
3.72% and 3.12%, respectively.

The purpose of the foregoing table is to assist an investor in
understanding the various costs and expenses that an investor in each Class of
Shares of the Funds will bear directly or indirectly. The amounts set forth both
in the tables and in the examples are estimated amounts based on the experience
of each Fund for the most recent fiscal period. THE EXAMPLES SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES OR ANNUAL RETURN. ACTUAL
EXPENSES AND ANNUAL RETURN MAY BE GREATER OR LESS THAN THOSE SHOWN. For a more
complete description of the various costs and expenses borne by the Funds see
"Management of the Funds".

<PAGE>
FINANCIAL HIGHLIGHTS

The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the five most recent fiscal years or the life of
the Fund if shorter for EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN
INTERNATIONAL EQUITY FUND has been audited by KPMG Peat Marwick LLP, each Fund's
independent auditors, for EVERGREEN GLOBAL REAL ESTATE EQUITY FUND has been
audited by Price Waterhouse LLP, the Fund's independent auditors. The
information presented for EVERGREEN GLOBAL LEADERS FUND is unaudited. A report
of KPMG Peat Marwick LLP or Price Waterhouse LLP, as the case may be, on the
audited information with respect to each Fund is incorporated by reference in
the Fund's Statement of Additional Information. The following information for
each Fund should be read in conjunction with the financial statements and
related notes which are incorporated by reference in the Fund's Statement of
Additional Information.

Further information about a Fund's performance is contained in the Fund's
annual report to shareholders, which may be obtained without charge.

EVERGREEN EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
CLASS Y
CLASS A SHARES CLASS B SHARES CLASS C SHARES SHARES
TEN MONTHS SEPTEMBER 6, TEN MONTHS SEPTEMBER 6, TEN MONTHS SEPTEMBER 6, TEN MONTHS
ENDED 1994* ENDED 1994* ENDED 1994* ENDED
OCTOBER THROUGH OCTOBER THROUGH OCTOBER THROUGH OCTOBER
31, DECEMBER 31, 31, DECEMBER 31, 31, DECEMBER 31, 31,
1995# 1994 1995# 1994 1995# 1994 1995#
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $8.17 $10.00 $8.16 $10.00 $8.16 $10.00 $8.17
Income (loss) from investment
operations:
Net investment income (loss)...... .05 -- .01 (.02) .02 (.02) .05
Net realized and unrealized loss
on investments and foreign
currency transactions........... (.32) (1.83) (.32) (1.82) (.34) (1.82) (.30)
Total from investment
operations...................... (.27) (1.83) (.31) (1.84) (.32) (1.84) (.25)
Net asset value, end of period..... $7.90 $8.17 $7.85 $8.16 $7.84 $8.16 $7.92
TOTAL RETURN+...................... (3.3%) (18.3%) (3.8%) (18.4%) (3.9%) (18.4%) (3.1%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $1,117 $867 $1,940 $1,589 $56 $89 $9,355
Ratios to average net assets:
Expenses++**...................... 1.73% 1.78% 2.48% 2.53% 2.50% 2.53% 1.48%
Net investment income
(loss)++**...................... .76% (.12%) .03% (.84%) .72% (.82%) .94%
Portfolio turnover rate............ 65% 17% 65% 17% 65% 17% 65%
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
SHARES
SEPTEMBER 6,
1994*
THROUGH
DECEMBER 31,
1994
<S> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $10.00
Income (loss) from investment
operations:
Net investment income (loss)...... .01
Net realized and unrealized loss
on investments and foreign
currency transactions........... (1.84)
Total from investment
operations...................... (1.83)
Net asset value, end of period..... $8.17
TOTAL RETURN+...................... (18.3%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $5,878
Ratios to average net assets:
Expenses++**...................... 1.53%
Net investment income
(loss)++**...................... .43%
Portfolio turnover rate............ 17%
</TABLE>

<PAGE>
EVERGREEN INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
CLASS Y
CLASS A SHARES CLASS B SHARES CLASS C SHARES SHARES
TEN MONTHS SEPTEMBER 2, TEN MONTHS SEPTEMBER 2, TEN MONTHS SEPTEMBER 2, TEN MONTHS
ENDED 1994* ENDED 1994* ENDED 1994* ENDED
OCTOBER THROUGH OCTOBER THROUGH OCTOBER THROUGH OCTOBER
31, DECEMBER 31, 31, DECEMBER 31, 31, DECEMBER 31, 31,
1995# 1994 1995# 1994 1995# 1994 1995#
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $9.50 $10.00 $9.50 $10.00 $9.49 $10.00 $9.50
Income (loss) from investment
operations:
Net investment income............. .09 .02 .06 -- .08 .03 .08
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions... -- (.52) (.03) (.50) (.04) (.54) .03
Total from investment
operations...................... .09 (.50) .03 (.50) .04 (.51) .11
Less distributions to shareholders
from net investment income........ (.01) -- -- -- -- -- (.01)
Net asset value, end of period..... $9.58 $9.50 $9.53 $9.50 $9.53 $9.49 $9.60
TOTAL RETURN+...................... 1.1% (5.1%) .5% (5.2%) .5% (5.2%) 1.3%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $3,594 $2,545 $7,278 $5,602 $196 $163 $ 49,575
Ratios to average net assets:
Expenses++**...................... 1.19% 1.26% 1.94% 2.02% 1.94% 2.01% .94%
Net investment income
(loss)++**...................... 1.38% .91% .66% .10% .79% .85% 1.58%
Portfolio turnover rate............ 4% 1% 4% 1% 4% 1% 4%
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
SHARES
SEPTEMBER 2,
1994*
THROUGH
DECEMBER 31,
1994
<S> <C>
PER SHARE DATA:
Net asset value, beginning of
period............................ $10.00
Income (loss) from investment
operations:
Net investment income............. .02
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions... (.51)
Total from investment
operations...................... (.49)
Less distributions to shareholders
from net investment income........ (.01)
Net asset value, end of period..... $9.50
TOTAL RETURN+...................... (5.0%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted).......................... $ 28,830
Ratios to average net assets:
Expenses++**...................... 1.06%
Net investment income
(loss)++**...................... 1.03%
Portfolio turnover rate............ 1%
</TABLE>

* Commencement of operations.
# The Fund changed its year end from December 31 to October 31.
+ Total return is calculated on net asset value per share for the periods
indicated and is not annualized. Initial sales charge or contingent deferred
sales charges are not reflected.
++ Annualized.
** 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 (loss) to average
net assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
CLASS Y
CLASS A SHARES CLASS B SHARES CLASS C SHARES SHARES
TEN MONTHS SEPTEMBER 2, TEN MONTHS SEPTEMBER 2, TEN MONTHS SEPTEMBER 2, TEN MONTHS
ENDED 1994* ENDED 1994* ENDED 1994* ENDED
OCTOBER THROUGH OCTOBER THROUGH OCTOBER THROUGH OCTOBER
31, DECEMBER 31, 31, DECEMBER 31, 31, DECEMBER 31, 31,
1995# 1994 1995# 1994 1995# 1994 1995#
<S> <C> <C> <C> <C> <C> <C> <C>
Expenses........................... 1.84% 2.09% 2.59% 2.85% 2.59% 2.84% 1.59%
Net investment income (loss)....... .73% .08% .01% (.73%) .14% .02% .93%
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
SHARES
SEPTEMBER 2,
1994*
THROUGH
DECEMBER 31,
1994
<S> <C>
Expenses........................... 1.89%
Net investment income (loss)....... .20%
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
ONE MONTH NINE MONTHS
ENDED YEAR ENDED ENDED
OCTOBER 31, SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31,
1995## 1995 1994# 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of
period.............................. $12.13 $13.81 $14.75 $9.86 $9.16 $8.10 $10.03
Income (loss) from investment
operations:
Net investment income (loss)........ (.01) .11 .07 -- (.01) (.02) (.03)
Net realized and unrealized gain
(loss) on investments............. (.53) (1.17) (1.01) 5.07 .94 1.08 (1.90)
Total from investment operations.... (.54) (1.06) (.94) 5.07 .93 1.06 (1.93)
Less distributions to shareholders
from:
Net investment income............... -- (.10) -- -- -- -- --
Net realized gains.................. -- (.52) -- (.18) (.23) -- --
Total distributions................. -- (.62) -- (.18) (.23) -- --
Net asset value, end of period....... $11.59 $12.13 $13.81 $14.75 $9.86 $9.16 $8.10
TOTAL RETURN+........................ (4.5%) (7.7%) (6.4%) 51.4% 10.2% 13.1% (19.2%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted)..................... $61,418 $67,645 $132,294 $146,173 $8,618 $7,557 $6,004
Ratios to average net assets:
Operating expenses.................. 1.62%++ 1.54% 1.46%++ 1.56%** 2.00%** 2.00%** 2.00%**
Interest expense.................... .03%++ .05% .08%++ -- -- -- --
Net investment income (loss)........ (1.14%)++ .92% .56%++ .03%** (.10%)** (.27%)** (.39%)**
Portfolio turnover rate.............. 1% 28% 63% 88% 245% 207% 325%
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES
FEBRUARY 1, 1989*
THROUGH
DECEMBER 31,
1989
<S> <C>
PER SHARE DATA:
Net asset value, beginning of
period.............................. $10.00
Income (loss) from investment
operations:
Net investment income (loss)........ .17
Net realized and unrealized gain
(loss) on investments............. .03
Total from investment operations.... .20
Less distributions to shareholders
from:
Net investment income............... (.17)
Net realized gains.................. --
Total distributions................. (.17)
Net asset value, end of period....... $10.03
TOTAL RETURN+........................ 2.0%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted)..................... $7,336
Ratios to average net assets:
Operating expenses.................. 2.00%**++
Interest expense.................... --
Net investment income (loss)........ 2.23%**++
Portfolio turnover rate.............. 151%
</TABLE>

# The Fund changed its fiscal year end from December 31 to September 30.
## The Fund changed its fiscal year end from September 30 to October 31.
* Commencement of operations.
+ Total return is calculated on net asset value per share and is not
annualized.
++ Annualized.
** 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 (loss) to average
net assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1993 1992 1991 1990
<S> <C> <C> <C> <C>
Operating expenses....................................................... 1.64% 3.72% 3.76% 3.99%
Net investment income (loss)............................................. (.05%) (1.82%) (2.02%) (2.38%)
</TABLE>
<TABLE>
<CAPTION>
FEBRUARY 1, 1989*
THROUGH
DECEMBER 31,
1989
<S> <C>
Operating expenses....................................................... 3.17%
Net investment income (loss)............................................. 1.06%
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND -- CLASS A, B AND C SHARES
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C
FEBRUARY 10, FEBRUARY 8, SHARES
ONE MONTH 1995* ONE MONTH 1995* ONE MONTH
ENDED THROUGH ENDED THROUGH ENDED
OCTOBER 31, SEPTEMBER 30, OCTOBER 31, SEPTEMBER 30, OCTOBER 31,
1995## 1995 1995## 1995 1995##
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:+
Net asset value, beginning of period.................... $12.12 $11.46 $12.08 $11.44 $12.08
Income (loss) from investment operations:
Net investment income (loss)........................... (.01) .07 (.02) .08 (.02)
Net realized and unrealized gain (loss) on
investments.......................................... (.53) .59 (.53) .56 (.53)
Total income (loss) from investment operations......... (.54) .66 (.55) .64 (.55)
Net asset value, end of period.......................... $11.58 $12.12 $11.53 $12.08 $11.53
TOTAL RETURN++.......................................... (4.5%) 5.8% (4.6%) 5.6% (4.6%)
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period............................... $74,376 $66,261 $99,964 $128,117 $3,643
Ratios to average net assets:(double dagger)**
Operating expenses..................................... 1.73% 1.61% 2.44% 2.42% 2.37%
Interest expense....................................... .03% .01% .03% .03% .02%
Net investment income (loss)........................... (1.26%) .98% (1.98%) 1.38% (1.94%)
Portfolio turnover rate#................................ 1% 28% 1% 28% 1%
</TABLE>
<TABLE>
<CAPTION>

FEBRUARY 9,
1995*
THROUGH
SEPTEMBER 30,
1995
<S> <C>
PER SHARE DATA:+
Net asset value, beginning of period.................... $11.43
Income (loss) from investment operations:
Net investment income (loss)........................... .06
Net realized and unrealized gain (loss) on
investments.......................................... .59
Total income (loss) from investment operations......... .65
Net asset value, end of period.......................... $12.08
TOTAL RETURN++.......................................... 5.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period............................... $6,811
Ratios to average net assets:(double dagger)**
Operating expenses..................................... 1.54%
Interest expense....................................... .01%
Net investment income (loss)........................... .86%
Portfolio turnover rate#................................ 28%
</TABLE>

* Commencement of class operations.
** Annualized. Due to the recent commencement of their offering, the
ratios for Class A, Class B and Class C shares are not necessarily
comparable to that of the Class Y shares, and are not necessarily
indicative of future ratios.
+ Calculated based on average shares outstanding during the period.
++ Total return is calculated for the periods indicated and is not
annualized. Initial sales charge or contingent deferred sales charges
are not reflected.
# Portfolio turnover rate is calculated for the one month ended October
31, 1995 and the twelve months ended September 30, 1995.
## The Fund changed its fiscal year end from September 30 to October 31.
(double Net of expense waivers and reimbursements. If the Fund had borne all
dagger) expenses that were assumed or waived by the investment adviser, the
annualized ratios of expenses and net investment loss to average net
assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C
FEBRUARY 10, FEBRUARY 8, SHARES
ONE MONTH 1995* ONE MONTH 1995* ONE MONTH
ENDED THROUGH ENDED THROUGH ENDED
OCTOBER 31, SEPTEMBER 30, OCTOBER 31, SEPTEMBER 30, OCTOBER 31,
1995 1995 1995 1995 1995
<S> <C> <C> <C> <C> <C>
Operating Expenses...................................... 46.90% 21.59% 31.39% 82.74% 570.26%
Net investment loss..................................... (46.44%) (19.00%) (30.94%) (79.94%) (569.83%)
</TABLE>
<TABLE>
<CAPTION>

FEBRUARY 9,
1995*
THROUGH
SEPTEMBER 30,
1995
<S> <C>
Operating Expenses...................................... 269.60%
Net investment loss..................................... (266.32%)
</TABLE>

<PAGE>
EVERGREEN GLOBAL LEADERS FUND (UNAUDITED)

<TABLE>
<CAPTION>
FOUR MONTHS*
ENDED
FEBRUARY 29, 1996
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period........................................................................ $ 10.00
Income from investment operations:
Net investment income...................................................................................... .02
Net realized and unrealized gain on investment and foreign currency transactions........................... .85
Total from investment operations........................................................................... .87
Less distributions to shareholders:
From net investment income................................................................................. (.02)
In excess of net investment income......................................................................... (.02)
Total distributions........................................................................................ (.04)
Net asset value, end of period.............................................................................. $ 10.83
Total Return**............................................................................................. 8.71%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)................................................................... $ 5,543
Ratios to average net assets: +#
Expenses................................................................................................... 1.35%
Net investment income...................................................................................... .57%
Portfolio turnover rate #................................................................................... 24%
</TABLE>

* The Fund commenced investment operations on November 1, 1995.
** Total return is calculated on net asset value per share for the period
indicated and is not annualized.
+ Annualized.
# 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 loss to average net assets, exclusive of any
applicable state expense limitations, would have been the following:

<TABLE>
<CAPTION>
FOUR MONTHS*
ENDED
FEBRUARY 29, 1996
<S> <C>
Expenses............................ 3.12%
Net investment loss................. (1.20%)
</TABLE>

<PAGE>
DESCRIPTION OF THE FUNDS

INVESTMENT OBJECTIVES AND POLICIES

Unless otherwise noted in this Prospectus, the Funds' investment policies
are not fundamental and may be changed without shareholder approval. Each Fund's
investment objective and their fundamental policies may not be changed without
shareholder approval. Shareholders will be notified thirty days prior to any
changes in policies that are not fundamental.

In addition to the investment policies detailed below, each Fund may
employ certain additional investment strategies which are discussed in
"Investment Practices and Restrictions" below. The Funds have also adopted a
number of investment restrictions which are set forth in the Statement of
Additional Information.

EVERGREEN EMERGING MARKETS GROWTH FUND

The objective of EVERGREEN EMERGING MARKETS GROWTH FUND is long-term
capital appreciation. In seeking this objective, the Fund invests in equity
securities of issuers located in emerging markets. The Fund is suitable for
aggressive investors interested in the investment opportunities offered by
securities of issuers located in emerging or developing markets and the
resulting potential for growth opportunities attributable to political change,
economic deregulation and liberalized trade policies.

The Fund invests primarily in a diversified portfolio of equity
securities of issuers located in countries with emerging markets. As a matter of
policy, the Fund will invest at least 65% of the value of its total assets in
securities of emerging market issuers.

A country will be considered to have an "emerging market" if it has
relatively low gross national product per capita compared to the world's major
economies and the potential for rapid economic growth. Countries with emerging
markets include those that have an emerging stock market (as defined by the
International Finance Corporation), those with low-to middle income economies
(according to the World Bank), and those listed in World Bank publications as
"developing". The Fund will normally invest in at least six different countries,
although it may invest all of its assets in a single country. At the present
time, the Fund has no intention of investing all of its assets in a single
country. The Fund focuses on equity securities, but may also invest in other
types of instruments, including debt securities. Marvin & Palmer Associates, the
sub-adviser to the Fund, will make investment decisions regarding equity
securities based on its analysis of returns, price momentum, business and
industry considerations, and management quality.

EVERGREEN INTERNATIONAL EQUITY FUND

The objective of EVERGREEN INTERNATIONAL EQUITY FUND is long-term capital
appreciation. The Fund invests primarily in equity securities of non-U.S.
issuers and is suitable for investors who want to pursue their investment goals
in markets outside the United States. The Fund provides investors with a vehicle
to pursue investment opportunities in countries outside the U.S. whose
securities markets may benefit from differing economic and political cycles.

The Fund invests primarily in foreign equity securities that Boston
International Advisers, Inc., the sub-adviser to the Fund, determines, through
both fundamental and technical analysis, to be undervalued compared to other
securities in their industries and countries. In most market conditions, the
stocks comprising the Fund's assets will exhibit traditional value
characteristics, such as higher than average dividend yields, lower than average
price to book value, and will include stocks of companies with unrecognized or
undervalued assets. As a matter of policy, the Fund will invest at least 65% of
the value of its total assets in equity securities of issuers located in at
least three countries outside of the United States.

The Fund will emphasize value stocks, primarily of companies which are
listed on one or more of thirty-two stock markets: twenty developed markets and
twelve emerging markets. While the current intention of the Fund is to invest in
thirty-two stock markets, the Fund may invest in more or less, depending upon
market conditions as determined by the sub-adviser. The Fund will invest
substantially all of its assets in industrialized companies throughout the world
that comprise the Morgan Stanley Capital International EAFE (Europe, Australia
and the Far

<PAGE>
East) Index. In addition, the Fund intends to invest up to 10% of its assets in
emerging country equity securities, as described above under "Evergreen Emerging
Markets Growth Fund".

EVERGREEN GLOBAL REAL ESTATE EQUITY FUND

The EVERGREEN GLOBAL REAL ESTATE EQUITY FUND seeks to achieve its
investment objective of long-term capital growth through investment primarily in
equity securities of domestic and foreign companies which are principally
engaged in the real estate industry or which own significant real estate assets;
the Fund will not purchase direct interests in real estate. Current income will
be a secondary objective. Equity securities will include common stock, preferred
stock and securities convertible into common stock.

The Fund will, under normal conditions, invest at least 65% of its total
assets in equity securities of domestic and foreign exchanges or NASDAQ listed
companies which are principally engaged in the real estate industry. A company
is deemed to be "principally engaged" in the real estate industry if at least
50% of its assets (marked to market), gross income or net profits are
attributable to ownership, construction, management or sale of residential,
commercial or industrial real estate. Real estate industry companies may include
among others: equity real estate investment trusts, which pool investors' funds
for investment primarily in commercial real estate properties; mortgage real
estate investment trusts, which invest pooled funds in real estate related
loans; brokers or real estate developers; and companies with substantial real
estate holdings, such as paper and lumber producers and hotel and entertainment
companies. The Fund will only invest in real estate equity trusts and limited
partnerships which are traded on major exchanges. As a matter of fundamental
policy, the Fund will also invest at least 65% of its total assets in the equity
securities of companies of at least three countries, including the United
States, except when abnormal market or financial conditions warrant the
assumption of a temporary defensive position. See "Investment Practices and
Restrictions" and "Special Risk Considerations".

The remainder of the Fund's investments may be made in equity securities
of issuers whose products and services are related to the real estate industry,
such as manufacturers and distributors of building supplies and financial
institutions which issue or service mortgages. The Fund may invest more than 25%
of its total assets in any one sector of the real estate or real estate related
industries. In addition, the Fund may, from time to time, invest in the
securities of companies unrelated to the real estate industry but whose real
estate assets are substantial relative to the price of the companies'
securities.

The Fund pursues a flexible strategy of investing in a diversified
portfolio of securities of companies throughout the world. The Fund's investment
adviser anticipates that the Fund will give particular consideration to
investments in the United Kingdom, Western Europe, Australia, Canada, the Far
East (Japan, Hong Kong, Singapore, Malaysia and Thailand) and the United States.
The percentage of the Fund's assets invested in particular geographic regions
will shift from time to time in accordance with the judgment of the Fund's
investment adviser. Generally, a substantial portion of the assets of the Fund
will be denominated or traded in foreign currencies.

Investments may also be made in securities of issuers unrelated to the
real estate industry believed by the Fund's investment adviser to be undervalued
and to have capital appreciation potential. Also, consistent with the secondary
objective of current income, investments may also be made in nonconvertible debt
securities of such companies. The debt securities purchased (except for those
described below) will be of investment grade or better quality (e.g., rated no
lower than A by Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's
Ratings Group ("S&P") or if not so rated, believed by the Fund's investment
adviser to be of comparable quality). However, up to 10% of total assets may be
invested in unrated debt securities of issuers secured by real estate assets
where the Fund's investment adviser believes that the securities are trading at
a discount and the underlying collateral will ensure repayment of principal. In
such situations, it is conceivable that the Fund could, in the event of default,
end up holding the underlying real estate directly.

EVERGREEN GLOBAL LEADERS FUND

The investment objective of the Evergreen Global Leaders Fund is to
provide long-term capital growth. It will attempt to achieve its objective by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
There can be no assurance that the Fund will be able to achieve its investment
objective. Under normal conditions at least 65% of the Fund's total assets will
consist of global equity securities. The Fund will make investments in no less
than three countries, which may include the United States. In addition to the
United States, the countries in which the Fund may invest include, but are not
limited to, Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Hong

<PAGE>
Kong, Italy, Japan, Malaysia, Netherlands, New Zealand, Norway, Signapore,
Spain, Sweden, Switzerland, the United Kingdom and the United States.

Evergreen Asset, the Fund's investment adviser, will attempt to screen
the largest companies in these and other major industrialized countries and
cause the Fund to invest, in the opinion of the Fund's investment adviser, in
the 100 best based on certain qualitative and quantitative criteria. Such
companies may include those with the highest return on equity and consistent
earnings growth. They may also include companies with an established market
presence, or which operate in industries or sectors that have, in the opinion of
the Fund's investment adviser, significant growth prospects. The criteria will
be reviewed and evaluated on an ongoing basis by the Fund's investment adviser.

In determining what constitutes a major industrialized country, the
Fund's investment adviser will look to classifications set forth in the Morgan
Stanley Capital International ("MSCI") Index and the various reports on this
subject disseminated by the World Bank. The Fund's investment adviser will
utilize a series of weighing techniques to insure adequate diversification by
country and industry and attempt to identify the largest companies in each
market, primarily by reference to the market capitalizations published in the
MSCI Index.

Although, as stated above, the Fund expects that investments will be made
in no less than three countries including the United States, the Fund may invest
more than 25% of its total assets in one country. To the extent that the Fund
invests more than 25% of its total assets in the securities of issuers located
in one country, the value of the Fund's shares may be subject to greater
fluctuations due to the lesser degree of diversification across countries such a
policy affords, and the fact that the securities markets of certain countries
may be subject to greater risks and volatility than that which exists in the
United States.

INVESTMENT PRACTICES AND RESTRICTIONS

General. The Funds primarily invest in:

common and preferred stocks, convertible securities and warrants of
foreign and domestic corporations. Common stocks represent an equity interest in
a corporation. This ownership interest often gives the Funds the right to vote
on measures affecting the company's organization and operations. Although common
stocks have a history of long-term growth in value, their prices tend to
fluctuate in the short-term, particularly those of smaller capitalization
companies. Smaller capitalization companies may have limited product lines,
markets, or financial resources. These conditions may make them more susceptible
to setbacks and reversals. Therefore, their securities may have limited
marketability and may be subject to more abrupt or erratic market movements than
securities of larger companies;

obligations of foreign governments and supranational organizations;
corporate and foreign government fixed income securities denominated in
currencies other than U.S. dollars rated, at the time of purchase, Baa or higher
by Moody's or BBB or higher by S&P, or which, if unrated, are considered to be
of comparable quality by the Funds' investment advisers or sub-advisers. Bonds
rated Baa by Moody's or BBB by S&P have speculative characteristics. Changes in
economic conditions or other circumstances are more likely to lead to weakened
capacity to make principal and interest payments than higher rated bonds.
Although the Funds do not intend to invest significantly in debt securities, it
should be noted that the prices of fixed income securities fluctuate inversely
to the direction of interest rates;

strategic investments, such as options and futures contracts on currency
transactions, securities index futures contracts, and forward foreign currency
exchange contracts. The Funds can use these techniques to increase or decrease
their exposure to changing security prices, interest rates, currency exchange
rates, or other factors that affect security values. (Although, of course, there
can be no assurance that these strategic investments will be successful in
protecting the value of the Funds' securities.); and

securities of closed-end investment companies.

Defensive Investments. The Funds may invest without limitation in high quality
money market instruments, such as notes, commercial paper, certificates of
deposit or bankers' acceptances and other bank obligations, or U.S. government
securities and short-term obligations of foreign issuers denominated in U.S.
dollars and traded in the United States if, in the opinion of a Fund's
investment adviser or sub-adviser, market conditions warrant a temporary
defensive investment strategy.

Repurchase Agreements. The Funds may invest in repurchase agreements. Repurchase
agreements are agreements by which a Fund purchases a security for cash and
obtains a simultaneous commitment from the seller (usually a bank or
broker/dealer) to repurchase the security at an agreed-upon price and specified
future date. The repurchase price reflects an agreed-upon interest rate for the
time period of the agreement. The Funds risk is the inability of the seller to
pay the agreed-upon price on the delivery date. However, this risk is tempered
by the ability of the Funds to sell the security in the open market in the case
of a default. In such a case, the Funds may incur costs in disposing of the
security which would increase Fund expenses. Each Fund's investment adviser will
monitor the creditworthiness of the firms with which the Funds enter into
repurchase agreements. The Funds may not enter into repurchase agreements if, as
a result, more than 15% of a Fund's net assets would be held in repurchase
agreements maturing in more than seven days and in other securities which are
not readily marketable.

When-Issued And Delayed Delivery Transactions. The Funds may purchase securities
on a when-issued or delayed delivery basis. These transactions are arrangements
in which the Funds purchase securities with payment and delivery scheduled for a
future time. The seller's failure to complete these transactions may cause the
Funds to miss a price or yield considered to be advantageous. Settlement dates
may be a month or more after entering into these transactions, and the market
values of the securities purchased may vary from the purchase prices.
Accordingly, the Funds may pay more or less than the market value of the
securities on the settlement date. A Fund may dispose of a commitment prior to
settlement if the Fund's investment adviser deems it appropriate to do so. In
addition, the Funds may enter into transactions to sell their purchase
commitments to third parties at current market values and simultaneously acquire
other commitments to purchase similar securities at later dates. The Funds may
realize short-term profits or losses upon the sale of such commitments.

Temporary Investments. The Funds may invest in U.S. and foreign short-term money
market instruments (denominated in U.S. and/or foreign currencies), including
interest-bearing call deposits with banks, government obligations, certificates
of deposit, bankers' acceptances, commercial paper, short-term corporate debt
securities, and repurchase agreements. These investments may be used to
temporarily invest cash received from the sale of Fund shares, to establish and
maintain reserves for temporary defensive purposes, or to take advantage of
market opportunities.

Illiquid or Restricted Securities. Each Fund may invest up to 15% of its net
assets in illiquid securities and other securities which are not readily
marketable. Illiquid securities include certain restricted securities not
determined by the Trustees to be liquid, non-negotiable time deposits and
repurchase agreements providing for settlement in more than seven days after
notice. Securities eligible for resale pursuant to Rule 144A under the
Securities Act of 1933 (the "Securities Act"), which have been determined to be
liquid, will not be considered by the Funds' investment advisers to be illiquid
or not readily marketable and, therefore, are not subject to the aforementioned
15% limit. The inability of a Fund to dispose of illiquid or not readily
marketable investments readily or at a reasonable price could impair the Fund's
ability to raise cash for redemptions or other purposes. The liquidity of
securities purchased by a Fund which are eligible for resale pursuant to Rule
144A will be monitored by each Fund's investment adviser or sub-adviser on an
ongoing basis, subject to the oversight of the Trustees. In the event that such
a security is deemed to be no longer liquid, a Fund's holdings will be reviewed
to determine what action, if any, is required to ensure that the retention of
such security does not result in a Fund having more than 15% of its assets
invested in illiquid or not readily marketable securities.

Borrowing. As a matter of fundamental policy, the Funds may not borrow money
except as a temporary measure to facilitate redemption requests or for
extraordinary or emergency purposes. The proceeds from borrowings may be used to
facilitate redemption requests which might otherwise require the untimely
disposition of portfolio securities. The specific limits applicable to borrowing
by each Fund are set forth in the Statement of Additional Information.

Lending of Portfolio Securities. In order to generate income and to offset
expenses, the Funds may lend portfolio securities to brokers, dealers and other
financial institutions. The Funds' investment advisers or sub-advisers will
monitor the creditworthiness of such borrowers. Loans of securities by the
Funds, if and when made, may not exceed 30% of the value of the total assets of
the EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND,
and one-third of the value of the total assets of EVERGREEN INTERNATIONAL EQUITY
FUND and EVERGREEN EMERGING MARKETS GROWTH FUND, and must be collateralized by
cash or U.S. Government securities that are maintained at all times in an amount
equal to at least 100% of the current market value of the securities loaned,
including accrued interest. While such securities are on loan, the borrower will
pay a Fund any income accruing thereon, and the Fund may invest the cash
collateral in portfolio securities, thereby increasing its return. Any gain or
loss in the market price of the loaned securities which occurs during the term
of the loan would affect a Fund and its investors. A Fund has the right to call
a loan and obtain the securities loaned at any time on notice of not more than
five business days. A Fund may pay reasonable fees in connection with such
loans.

There is the risk that when lending portfolio securities, the securities
may not be available to a Fund on a timely basis and the Fund may, therefore,
lose the opportunity to sell the securities at a desirable price. In addition,
in the event that a borrower of securities files for bankruptcy or becomes
insolvent, disposition of the securities may be delayed pending court action.

Fixed-Income Securities -- Downgrades. If any security invested in by any of the
Funds loses its rating or has its rating reduced after the Fund has purchased
it, the Fund is not required to sell or otherwise dispose of the security, but
may consider doing so.

Foreign Currency Transactions. The Funds will enter into foreign currency
transactions to obtain the necessary currencies to settle securities
transactions. Currency transactions may be conducted either on a spot or cash
basis at prevailing rates or through forward foreign currency exchange contracts
("forward contracts"). The Funds may also enter into forward foreign currency
exchange contracts to protect Fund assets against adverse changes in foreign
currency exchange rates or exchange control regulations. Such changes could
unfavorably affect the value of Fund assets which are denominated in foreign
currencies, such as foreign securities or funds deposited in foreign banks, as
measured in U.S. dollars. The use of forward contracts for hedging purposes may
limit any potential gain that might result from a relative increase in the value
of such currencies and might, in certain cases, result in losses to the Fund.

Forward Foreign Currency Exchange Contracts. A forward contract is an obligation
to purchase or sell an amount of a particular currency at a specific price and
on a future date agreed upon by the parties. Generally, no commission charges or
deposits are involved. At the time a Fund enters into a forward contract, Fund
assets with a value equal to the Fund's obligation under the forward contract
are segregated and are maintained until the contract has been settled. The Funds
will not enter into a forward contract with a term of more than one year. In
addition to forward contracts entered into for hedging purposes, the Funds will
generally enter into a forward contract to provide the proper currency to settle
a securities transaction at the time the transaction occurs ("trade date"). The
period between trade date and settlement date will vary between 24 hours and 60
days, depending upon local custom.

As described above, a Fund may enter into forward contract in primarily
two circumstances. First, when a Fund enters into a contract for the purchase or
sale of a security denominated in a foreign currency, it may desire to "lock in"
the U.S. dollar price of the security. By entering in a forward contract for the
purchase or sale, for a fixed amount of dollars, of the amount of foreign
currency involved in the underlying security transaction, the Fund will be able
to protect itself against a possible loss resulting from an adverse change in
the relationship between the U.S. dollar and the subject foreign currency during
the period between the date the security is purchased or sold and the date on
which payment is made or received.

In the second circumstance, the Custodian will segregate cash or liquid
high-grade debt securities belonging to the Fund in an amount not less than the
value of the assets committed to forward foreign currency contracts entered into
under such transactions. If the value of the securities segregated declines,
additional cash or debt securities will be added on a daily basis (i.e. market
to market) so that the segregated amount will not be less than the amount of the
Fund's commitments with respect to such contracts.

Hedging/Cross Hedging. A cross hedge is accomplished by entering into a forward
contract or other arrangement with respect to one foreign currency for the
purpose of hedging against a possible decline in the value of another foreign
currency in which certain of the Fund's portfolio instruments are denominated.
The Funds' investment advisers or sub-advisers may enter into a cross hedge,
rather than hedge directly, in instances where (i) the rates for forward
contracts, options, futures contract or options on futures contracts relating to
the currency in which the cross hedge is effected are more favorable than rates
for similar instruments denominated in the currency that is to be hedged and
(ii) there is a high degree of correlation between the two currencies with
respect to their movement against the U.S. dollar. Cross hedges may be effected
using the various hedging instruments described below. A cross hedge cannot
protect against exchange rate risks perfectly, and if a Fund's investment
adviser or sub-adviser is incorrect in its judgment of future exchange rate
relationships, the Fund could be in a less advantageous position than if such a
hedge had not been established.

Options and Futures. The Funds may deal in options on foreign currencies,
portfolio securities and, in the case of EVERGREEN INTERNATIONAL EQUITY FUND and
EVERGREEN EMERGING MARKETS GROWTH FUND, securities indices. Such options, other
than options written by the Funds, may be traded on an international securities
exchange. The Funds will use these options to manage interest rate and currency
risks. The Funds also may write covered call options and secured put options to
generate income or lock in gains. EVERGREEN INTERNATIONAL EQUITY FUND and
EVERGREEN EMERGING MARKETS GROWTH FUND may write covered call options and
secured put options on up to 25% of their net assets. EVERGREEN GLOBAL REAL
ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND may write covered call
options and secured put options on up to 15% of their net assets. EVERGREEN
INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH FUND may
purchase put and call options provided that no more than 5% of the fair market
value of their assets is invested in premiums on such options.

A call option gives the purchaser the right to buy, and the writer the
obligation to sell, the underlying asset at the exercise price during the option
period. The premium paid to the writer is the consideration for undertaking the
obligations under the option contract. The writer forgoes the opportunity to
profit from an increase in the market price of the underlying security above the
exercise price except insofar as the premium represents such a profit. The Funds
retain the risk of loss should the price of the underlying security decline.
Where such options are used for hedging purposes, if the forecast of a Fund's
investment adviser or sub-adviser of the direction of stock prices is incorrect,
the Fund may be better off had it not engaged in such transactions. The Funds
will write call options only when the options are traded on national securities
exchanges in the United States and the options are covered (i.e., the Funds own
the optioned securities or securities convertible into or carrying rights to
acquire the optioned securities, or the Funds custodian has segregated and
maintains cash or liquid high-grade debt securities belonging to the Funds in an
amount not less than the value of the assets committed to the written options).
The Funds may purchase call options to close out a position. In order to do so,
a Fund will make a "closing purchase transactions" -- the purchase of a call
option on the same security with the same exercise price and expiration date as
the call option which it has previously written on any particular security. A
put option gives the purchase the right to sell, and the writer the obligation
to buy, the underlying asset at the exercise price during the option period. The
writer of a covered call owns assets that are acceptable for escrow and the
writer of a secured put invests an amount not less than the exercise price in
eligible assets to the extent that it is obligated as a writer. If a call
written by a Fund is exercised, the Fund forgoes any possible profit from an
increase in the market price of the underlying asset over the exercise price
plus the premium received. In writing puts, there is a risk that a Fund may be
required to take delivery of the underlying asset at a disadvantageous price.

The Funds may write a call option on a foreign currency only in
conjunction with a purchase of a put option on that currency. A call option
written by a Fund gives the purchaser, upon payment of a premium, the right to
purchase from the Fund a currency at the exercise price until the expiration of
the option. Writing call options in this manner is designed to reduce the cost
of downside currency protection but has the effect of limiting currency
appreciation potential.

Futures Contracts and Related Options. The Funds may invest in currency futures
contracts and options thereon. If a Fund's investment adviser or sub-adviser
anticipates that exchange rates for a particular currency will fall, the Fund
will sell a currency futures contract or a call option thereon or purchase a put
option on such futures contract as a hedge (or in the case of a sale of a call
option, a partial hedge) against a decrease in the value of the Fund's
securities denominated in such currency. If a Fund's investment adviser or
sub-adviser anticipates that exchange rates will rise, the Fund may purchase a
currency futures contract or a call option thereon to protect against an
increase in the price of securities denominated in a particular currency the
Fund intends to purchase. These futures contracts and related options will be
used only as a hedge against anticipated currency rate changes.

A currency futures contract sale creates an obligation by the Fund, as
sell, to deliver the amount of currency called for in the contract at a
specified future time for a specified price. A currency futures contract
purchase creates an obligation by the Fund, as purchaser, to take delivery of an
amount of currency at a specified future time at a specified price. Although the
terms of currency futures contracts specify actual delivery or receipt, in most
instances the contracts are closed out before the settlement date without the
making or taking of delivery of the currency. Closing out of a currency futures
contract is effect by entering into an offsetting purchase or sale transaction.

Unlike a currency futures contract, which requires the parties to buy and
sell currency on a set date, an option on a currency futures contract entitles
its holder to decide on or before a future date whether to enter into such a
contract. If the holder decides not to enter into a contract, the premium paid
for the option is lost. There are no daily payments of cash in the nature of
"variation" or "maintenance" margin by the purchaser of such an option to
reflect the change in the value of the underlying contract as there are by a
purchaser or seller of a currency futures contract.

The ability to establish and close out positions in currency futures and
options on currency futures will be subject to the development and maintenance
of a liquid secondary market. It is not certain that this market will develop or
be maintained.

The Funds may not enter into futures contracts or related options if,
immediately thereafter, the amounts committed to market and premiums paid for
unexpired options would exceed 5% of a Fund's net assets and, in the case of
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS FUND, more
than 30% of the Funds net assets would be hedged thereby. EVERGREEN
INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH FUND may also
enter into such futures contracts or related options for purposes other than
bona fide hedging if the aggregate amount of initial market deposits on a Fund's
futures and related options positions would not exceed 5% of the net liquidation
value of the Fund's assets, provided further that in the case of an option that
is in-the-money at the time of the purchase, the in-the-money amount may be
excluded in calculating the 5% limitation. In addition, a Fund may not sell
futures contracts if the value of such futures contracts exceeds the total
market value of the Fund's portfolio securities. Futures contracts sold by a
Fund are generally subject to segregation and covereage requirements established
by either the Commodity Futures Trading Commission ("CFTC") or the Securities
and Exchange Commission ("SEC"), with the result that, if a Fund does not hold
the instrument underlying the futures contract or option, the Fund will be
required to segregate, on an ongoing basis

<PAGE>
with its custodian, cash, U.S. government securities, or other liquid high grade
debt obligations in an amount at least equal to the Fund's obligations with
respect to such instruments.

For bona fide hedging purposes, EVERGREEN INTERNATIONAL EQUITY FUND and
EVERGREEN EMERGING MARKETS GROWTH FUND may enter into securities index futures
contracts and purchase and write put and call options on securities index
futures contracts that are traded on regulated exchanges, including non-U.S.
exchanges, to the extent permitted by the CFTC. Securities index futures
contracts are based on indices that reflect the market value of securities of
the firms included in the indices. An index futures contract is an agreement
pursuant to which two parties agree to take or make delivery of an amount of
cash equal to the differences between the value of the index at the close of the
last trading day of the contract and the price at which the index contract was
originally written.

EVERGREEN INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH
FUND may enter into securities index futures contracts to sell a securities
index in anticipation of or during a market decline to attempt to offset the
decrease in market value of securities in its portfolio that might otherwise
result. When a Fund is not fully invested and anticipates a significant market
advance, it may enter into futures contracts to purchase the index in order to
gain rapid market exposure that may in part or entirely offset increases in the
cost of securities that it intends to purchase. In many of these transactions, a
Fund will purchase such securities upon termination of the futures position but,
depending on market conditions, a futures position may be terminated without the
corresponding purchases of common stock. A Fund may also invest in securities
index futures contracts when its investment adviser or sub-adviser believes such
investment is more efficient, liquid or cost-effective than investing directly
in the securities underlying the index.

The use of futures and related options involves special considerations
and risks, including: (1) the ability of a Fund to utilize futures successfully
will depend on the ability of its investment adviser or sub-adviser to predict
pertinent market movements; and (2) the fact that there might be an imperfect
correlation (or conceivably no correlation) between the change in the market
value of the securities held by a Fund and the prices of the futures relating to
the securities purchased or sold by the Fund. The use of futures and related
options may reduce risk of loss by wholly or partially offsetting the negative
effect of unfavorable price movements, but these instruments can also reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements in positions. No assurance can be given that the investment adviser's
or sub-adviser's judgment in this respect will be correct.

It is not certain that a secondary market for positions in futures
contracts or for options will exist at all times. Although each investment
adviser or sub-adviser will consider liquidity before entering into these
transactions, there is no assurance that a liquid secondary market on an
exchange or otherwise will exist for any particular futures contract or option
at any particular time. A Fund's ability to establish and close out futures and
options positions depends on this secondary market.

Risk Characteristics Of Foreign Securities. Investing in non-U.S. securities
involves additional risks not normally associated with domestic investments. In
an attempt to reduce some of these risks, the Funds diversify their investments
broadly among foreign countries which may include both developed and developing
countries. With respect to EVERGREEN INTERNATIONAL EQUITY FUND and EVERGREEN
GLOBAL LEADERS FUND at least three different countries will always be
represented. The Funds may take advantage of the unusual opportunities for
higher returns available from investing in developing countries. As discussed in
detail below under "Emerging Markets", however, these investments carry
considerably more volatility and risk because they generally are associated with
less mature economies and less stable political systems.

Foreign securities are denominated or traded in foreign currencies.
Therefore, the value in U.S. dollars of a Fund's assets and income may be
affected by changes in exchange rates and regulations. Although the Funds value
their assets daily in U.S. dollars, they will not convert their holdings of
foreign currencies to U.S. dollars daily. When a Fund converts its holdings to
another currency, it may incur conversion costs. Foreign exchange dealers
realize a profit on the difference between the prices at which such dealers buy
and sell currencies.

To the extent that securities purchased by the Funds are denominated in
currencies other than the U.S. dollar, changes in foreign currency exchange
rates will affect the Funds' net asset values; the value of interest earned;
gains and losses realized on the sale of securities; and net investment income
and capital gains, if any, to be distributed to shareholders by a Fund. If the
value of a foreign currency rises against the U.S. dollar, the value of a Fund's
assets denominated in that currency will increase; correspondingly, if the value
of a foreign currency declines against the U.S. dollar, the value of a Fund's
assets denominated in that currency will decrease. The performance of the Funds
will be measured in U.S. dollars, the base currency for the Funds.

The Funds may engage in transactions in foreign securities which are
listed on foreign securities exchanges and/or traded in the over-the-counter
market. Transactions in listed securities may be effected in the
over-the-counter markets if, in the opinion of the Funds' investment advisers or
sub-advisers, this affords the Funds the ability to obtain best price and
execution. Foreign securities markets are subject to less regulation than those
in the U.S. and there may be less financial and other information available
about the issuers of securities that trade in foreign markets. Transactions in
foreign securities may settle on a delayed basis, in comparison to those in the
U.S., or may settle only on specific days of the month. In the event a Fund
enters into a significant number of transactions which provide for a settlement
period in excess of seven days, the Fund's ability to raise cash to meet
redemption requests may be impaired.

Emerging Markets. The economies of individual emerging countries may differ
favorably or unfavorably from the U.S. economy in such respects as growth of
gross domestic product, rate of inflation, currency depreciation, capital
reinvestment, resource self-sufficiency and balance of payments position.
Further, the economies of developing countries generally are heavily dependent
on international trade and, accordingly, have been, and may continue to be,
adversely affected by trade barriers, exchange controls, managed adjustments in
relative currency values and other protectionist measures imposed or negotiated
by the countries with which they trade. These economies also have been, and may
continue to be, adversely affected by economic conditions in the countries with
which they trade.

Prior governmental approval for foreign investments may be required under
certain circumstances in some emerging countries, and the extent of foreign
investment in certain debt securities and domestic companies may be subject to
limitation in other emerging countries. Foreign ownership limitations also may
be imposed by the charters of individual companies in emerging countries to
prevent, among other concerns, violation of foreign investment limitations.

Repatriation of investment income, capital and the proceeds of sales by
foreign investors may require governmental registration and/or approval in some
emerging countries. A Fund could be adversely affected by delays in, or a
refusal to grant, any required governmental registration or approval for such
repatriation. Any investment subject to such repatriation controls will be
considered illiquid if it appears reasonably likely that this process will take
more than seven days.

With respect to any emerging country, there is the possibility of
nationalization, expropriation or confiscatory taxation, political changes,
governmental regulation, social instability or diplomatic developments
(including war) which could affect adversely the economics of such countries or
the value of the Funds'

<PAGE>
investments in those countries. In addition, it may be difficult to obtain and
enforce a judgment in a court outside of the U.S.

Investments Related to Real Estate. Risks associated with investment in
securities of companies in the real estate industry include: declines in the
value of real estate, risks related to general and local economic conditions,
overbuilding and increased competition, increases in property taxes and
operating expenses, changes in zoning laws, casualty or condemnation losses,
variations in rental income, changes in neighborhood values, the appeal of
properties to tenants and increase in interest rates. In addition, equity real
estate investment trusts may be affected by changes in the value of the
underlying property owned by the trusts, while mortgage real estate investment
trusts may be affected by the quality of credit extended. Equity and mortgage
real estate investment trusts are dependent upon management skills, may not be
diversified and are subject to the risks of financing projects. Such trusts are
also subject to heavy cash flow dependency, defaults by borrowers, self
liquidation and the possibility of failing to qualify for tax-free pass-through
of income under the Internal Revenue Code of 1986, as amended (the "Code") and
to maintain exemption from the Investment Company Act of 1940, as amended (the
"1940 Act"). In the event an issuer of debt securities collateralized by real
estate defaulted, it is conceivable that a Fund could end up holding the
underlying real estate.

MANAGEMENT OF THE FUNDS

INVESTMENT ADVISERS

The management of each Fund is supervised by the Trustees of the Trust
under which the Fund has been established ("Trustees"). Evergreen Asset has been
retained by EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL
LEADERS FUND as investment adviser. Evergreen Asset succeeded on June 30, 1994
to the advisory business of a corporation with the same name, but under
different ownership, which was organized in 1971. Evergreen Asset, with its
predecessors, has served as investment adviser to the Evergreen mutual funds
since 1971. Evergreen Asset is a wholly-owned subsidiary of First Union National
Bank of North Carolina ("FUNB"). The address of Evergreen Asset is 2500
Westchester Avenue, Purchase, New York 10577. FUNB is a subsidiary of First
Union Corporation ("First Union"), the sixth largest bank holding company in the
United States. Stephen A. Lieber and Nola Maddox Falcone serve as the chief
investment officers of Evergreen Asset and, along with Theodore J. Israel, Jr.,
were the owners of Evergreen Asset's predecessor and the former general partners
of Lieber & Company which, as described below, provides certain subadvisory
services to Evergreen Asset in connection with its duties as investment adviser
to the Fund. CMG serves as investment adviser to EVERGREEN INTERNATIONAL EQUITY
FUND and EVERGREEN EMERGING MARKETS GROWTH FUND. Boston International Advisers,
Inc. ("BIA") is sub-adviser to EVERGREEN INTERNATIONAL EQUITY FUND, and Marvin &
Palmer Associates, Inc. ("Marvin & Palmer") is sub-adviser to EVERGREEN EMERGING
MARKETS GROWTH FUND.

First Union is headquartered in Charlotte, North Carolina, and had $132
billion in consolidated assets as of March 31, 1996. First Union and its
subsidiaries provide a broad range of financial services to individuals and
businesses in offices throughout the United States. CMG manages or otherwise
oversees the investment of over $31 billion in assets belonging to a wide range
of clients, including all the series of Evergreen Investment Trust (formerly
known as First Union Funds), the two series of The Evergreen Lexicon Trust
(formerly The FFB Lexicon Fund) and the two series of Evergreen Tax Free Trust
(formerly FFB Funds Trust). First Union Brokerage Services, Inc., a wholly-owned
subsidiary of FUNB, is a registered broker-dealer that is principally engaged in
providing retail brokerage services consistent with its federal banking
authorizations. First Union Capital Markets Corp., a wholly-owned subsidiary of
First Union, is a registered broker-dealer principally engaged in providing,
consistent with its federal banking authorizations, private placement,
securities dealing, and underwriting services.

As investment adviser to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and
EVERGREEN GLOBAL LEADERS FUND, Evergreen Asset manages the Funds' investments,
provides various administrative services and supervises the Funds' daily
business affairs, subject to the authority of the Trustees. Evergreen Asset is
entitled to receive a fee equal to 1% of average daily net assets on an annual
basis from EVERGREEN GLOBAL REAL ESTATE EQUITY FUND, and a fee equal to .95 of
1% of average daily net assets on an annual basis from EVERGREEN GLOBAL LEADERS
FUND. Until the EVERGREEN GLOBAL LEADERS FUND reaches net assets of $15 million,
Evergreen Asset will reimburse the Fund to the extent that the Fund's aggregate
operating expenses exceed 1.5% of average daily net assets for any fiscal year.
From time to time Evergreen Asset may further reduce or waive its fee or
reimburse the Fund for certain of its expenses in order to reduce the Fund's
expense ratio. As a result the Fund's total return would be higher than if the
fees and any expenses had been paid by the Fund.

The fees paid by the Funds are higher than the rate paid by most other
investment companies, but are not higher than the fees paid by many funds with
similar investment objectives. The total expenses as a percentage of average
daily net assets on an annual basis of the Funds for the fiscal period ended
October 31, 1995 (the four month period ended February 29, 1996 in the case of
EVERGREEN GLOBAL LEADERS FUND) are set forth in the section entitled "Financial
Highlights". CMG has agreed to pay BIA, the sub-adviser to EVERGREEN
INTERNATIONAL EQUITY FUND, a fee equal to: .32 of 1% of the first $20 million of
average daily net assets; .29 of 1% of the next $30 million of average daily net
assets; .26 of 1% of the next $50 million of average daily net assets; and .23
of 1% of average daily net assets in excess of $100 million. For its services as
sub-adviser to EVERGREEN EMERGING MARKETS GROWTH FUND, Marvin & Palmer receives
from CMG a fee equal to: 1% of the first $100 million of average daily net
assets; .95 of 1% of the next $100 million of average daily net assets; .90 of
1% of the next $100 million of average daily net assets; and .85 of 1% of
average daily net assets in excess of $300 million.

Evergreen Asset serves as administrator to EVERGREEN INTERNATIONAL EQUITY
FUND, EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN GLOBAL LEADERS FUND
and is entitled to receive a fee based on the average daily net assets of these
Funds at a rate based on the total assets of the mutual funds administered by
Evergreen Asset for which CMG or Evergreen Asset also serve as investment
adviser, calculated in accordance with the following schedule: .050% of the
first $7 billion; .035% on the next $3 billion; .030% on the next $5 billion;
.020% on the next $10 billion; .015% on the next $5 billion; and .010% on assets
in excess of $30 billion. Furman Selz LLC, an affiliate of Evergreen Funds
Distributor, Inc., distributor for the Evergreen group of mutual funds, serves
as sub-administrator to EVERGREEN INTERNATIONAL EQUITY FUND, EVERGREEN EMERGING
MARKETS GROWTH FUND and EVERGREEN GLOBAL LEADERS FUND and is entitled to receive
a fee from each Fund calculated on the average daily net assets of each Fund at
a rate based on the total assets of the mutual funds administered by Evergreen
Asset for which CMG or Evergreen Asset also serve as investment adviser,
calculated in accordance with the following schedule: .0100% of the first $7
billion; .0075% on the next $3 billion; .0050% on the next $15 billion; and
.0040% on assets in excess of $25 billion. The total assets of the mutual funds
administered by Evergreen Asset for which CMG or Evergreen Asset serve as
investment adviser were approximately $14.4 billion as of February 29, 1996.

The portfolio manager for EVERGREEN GLOBAL REAL ESTATE EQUITY FUND is
Samuel A. Lieber. Mr. Samuel Lieber has been the Fund's principal manager since
inception and has been associated with Evergreen Asset since 1985.

The portfolio of the EVERGREEN GLOBAL LEADERS FUND is managed by a
committee composed of portfolio management and analytical personnel employed by
Evergreen Asset. The members of this committee include Stephen A. Lieber, who is
Chairman and Co-Chief Executive Officer of Evergreen Asset, and Edwin D. Miska,
who is an analyst with Evergreen Asset. Mr. Lieber and Mr. Miska are responsible
for the day-to-day operations of the Fund. Mr. Lieber is the founder of
Evergreen Asset and has been associated with Evergreen Asset and its predecessor
since 1971. Mr. Miska has been a quantitative analyst with Evergreen Asset and
its predecessor since 1986.

The portfolio managers for EVERGREEN INTERNATIONAL EQUITY FUND are
Richard Wagoner, Executive Vice President, head of CMG since 1973, and a
Director of Evergreen Asset since 1994, together with Maureen Ghublikian and
David A. Umstead, who are Managing Directors of BIA and have been associated
therewith since 1986.

The portfolio managers for EVERGREEN EMERGING MARKETS GROWTH FUND, all of
whom have served since the Fund's inception in September 1994, are Richard
Wagoner, David F. Marvin, Chairman of Marvin & Palmer who is is primarily
responsible for Latin America and currency management, Stanley Palmer, President
of Marvin & Palmer who is primarily responsible for Southeast Asia and the India
subcontinent, Terry B. Mason, a Vice President of Marvin & Palmer who is
primarily responsible for Eastern Europe and Africa, Jay F. Middleton, a

SUB-ADVISERS

Evergreen Asset has entered into sub-advisory agreements with Lieber &
Company with respect to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN
GLOBAL LEADERS FUND which provide that Lieber & Company's Research department
and staff will furnish Evergreen Asset with information, investment
recommendations, advice and assistance, and will be generally available for
consultation on each Fund's portfolio. Lieber & Company will be reimbursed by
Evergreen Asset in connection with the rendering of services on the basis of the
direct and indirect costs of performing such services. There is no additional
charge to EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL LEADERS
FUND for the services provided by Lieber & Company. It is contemplated that
Lieber & Company will, to the extent practicable, effect substantially all of
the portfolio transactions for these Funds on the New York and American Stock
Exchanges. The address of Lieber & Company is 2500 Westchester Avenue, Purchase,
New York 10577. Lieber & Company is an indirect, wholly-owned, subsidiary of
First Union.

BIA, the sub-adviser to the EVERGREEN INTERNATIONAL EQUITY FUND, has been
in operation since 1986 and specializes in the management of international
equity portfolios. BIA currently manages twenty international portfolios,
including five group trust funds, for pension fund sponsors and endowment plans
worldwide. Messrs. Lyle H. Davis, Norman H. Meltz and David A. Umstead are the
principal executive officers of BIA and each own more than 25% of the
outstanding voting securities thereof. As of September 30, 1995 BIA managed a
total of $2.5 billion in assets and served as sub-adviser to one other
investment company with total assets of $148 million.

Marvin & Palmer, sub-adviser to the EVERGREEN EMERGING MARKETS GROWTH
FUND, was founded in 1986 and is engaged in the management of global, non-United
States and emerging markets equity portfolios for institutional accounts. At
September 30, 1995, Marvin & Palmer managed a total of $3.1 billion in
investments for thirty-four institutional investors and five commingled funds
and served as sub-adviser to another investment company with total assets of $33
million.

PURCHASE AND REDEMPTION OF SHARES

HOW TO BUY SHARES

Eligible investors may purchase Fund shares at net asset value by mail or
wire as described below. The Funds impose no sales charges on Class Y shares.
Class Y shares are the only class of shares offered by this Prospectus and are
only available to (i) persons who at or prior to December 31, 1994, owned shares
in a mutual fund advised by Evergreen Asset, (ii) certain institutional
investors and (iii) investment advisory clients of CMG, Evergreen Asset or their
affiliates. The minimum initial investment is $1,000, which may be waived in
certain situations. There is no minimum for subsequent investments. Investors
may make subsequent investments by establishing a Systematic Investment Plan or
a Telephone Investment Plan.

Purchases by Mail or Wire. Each investor must complete the Share Purchase
Application and mail it, together with a check made payable to the Fund whose
shares are being purchased, to State Street Bank and Trust Company ("State
Street") at P.O. Box 9021, Boston, Massachusetts 02205-9827. Checks not drawn on
U.S. banks will be subject to foreign collection which will delay an investor's
investment date and will be subject to processing fees.

When making subsequent investments, an investor should either enclose the
return remittance portion of the statement, or indicate on the face of the
check, the name of the Fund in which an investment is to be made, the exact
title of the account, the address, and the Fund account number. Purchase
requests should not be sent to a Fund in New York. If they are, the Fund must
forward them to State Street, and the request will not be effective until State
Street receives them.

Initial investments may also be made by wire by (i) calling State Street
at 800-423-2615 for an account number and (ii) instructing your bank, which may
charge a fee, to wire federal funds to State Street, as follows: State Street
Bank and Trust Company, ABA No.0110-0002-8, Attn: Custodian and Shareholder
Services. The wire

<PAGE>
must include references to the Fund in which an investment is being made,
account registration, and the account number. A completed Application must also
be sent to State Street indicating that the shares have been purchased by wire,
giving the date the wire was sent and referencing the account number. Subsequent
wire investments may be made by existing shareholders by following the
instructions outlined above. It is not necessary, however, for existing
shareholders to call for another account number.

How the Funds Value Their Shares. The net asset value of each Class of shares of
a Fund is calculated by dividing the value of the amount of the Fund's net
assets attributable to that Class by the number of outstanding shares of that
Class. Shares are valued each day the New York Stock Exchange (the "Exchange")
is open as of the close of regular trading (currently 4:00 p.m. Eastern time).
The securities in a Fund are valued at their current market value determined on
the basis of market quotations or, if such quotations are not readily available,
such other methods as the Trustees of each Trust under which each Fund operates
believe would accurately reflect fair value. Non-dollar denominated securities
will be valued as of the close of the Exchange at the closing price of such
securities in their principal trading market.

Additional Purchase Information. As a condition of this offering, if a purchase
is canceled due to nonpayment or because an investor's check does not clear, the
investor will be responsible for any loss a Fund or the Fund's investment
adviser incurs. If such investor is an existing shareholder, a Fund may redeem
shares from such investor's account to reimburse the Fund or the Fund's
investment adviser for any loss. In addition, such investors may be prohibited
or restricted from making further purchases in any of the Evergreen mutual
funds. The Funds will not accept third party checks other than those payable
directly to a shareholder whose account has been in existence at least thirty
days.

The Share Purchase Application may not be used to invest in any of the
prototype retirement plans for which the Funds are an available investment. For
information about the requirements to make such investments, including copies of
the necessary application forms, please call the telephone number set forth on
the cover page of this Prospectus. A Fund cannot accept investments specifying a
certain price or date and reserves the right to reject any specific purchase
order, including orders in connection with exchanges from the other Evergreen
mutual funds. Although not currently anticipated, each Fund reserves the right
to suspend the offer of shares for a period of time.

Shares of each Fund are sold at the net asset value per share next
determined after a shareholder's order is received. Investments by federal funds
wire or by check will be effective upon receipt by State Street. Qualified
institutions may telephone orders for the purchase of Fund shares. Investors may
also purchase shares through a broker/dealer, which may charge a fee for the
service.

HOW TO REDEEM SHARES

You may "redeem", i.e. sell, your shares in a Fund to the Fund on any day
the Exchange is open, either directly or through your financial intermediary.
The price you will receive is the net asset value next calculated after the Fund
receives your request in proper form. Proceeds generally will be sent to you
within seven days. However, for shares recently purchased by check, a Fund will
not send proceeds until it is reasonably satisfied that the check has been
collected (which may take up to ten days). Once a redemption request has been
telephoned or mailed, it is irrevocable and may not be modified or canceled.

Redeeming Shares Directly by Mail or Telephone. Send a signed letter of
instruction or stock power form to State Street which is the registrar, transfer
agent and dividend-disbursing agent for each Fund. Stock power forms are
available from your financial intermediary, State Street, and many commercial
banks. Additional documentation is required for the sale of shares by
corporations, financial intermediaries, fiduciaries and surviving joint owners.
Signature guarantees are required for all redemption requests for shares with a
value of more than $50,000 or where the redemption proceeds are to be mailed to
an address other than that shown in the account registration. A signature
guarantee must be provided by a bank or trust company (not a Notary Public), a
member firm of a domestic stock exchange or by other financial institutions
whose guarantees are acceptable to State Street.

Shareholders may withdraw amounts of $1,000 or more from their accounts
by calling State Street (800-423-2615) between the hours of 8:00 a.m. and 5:30
p.m. (Eastern time) each business day (i.e., any weekday exclusive of days on
which the Exchange or State Street's offices are closed). The Exchange is closed
on New Year's Day, Presidents Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day. Redemption requests made after
4:00 p.m. (Eastern time) will be processed using the net asset value determined
on the next business day. Such redemption requests must include the
shareholder's account

<PAGE>
name, as registered with a Fund, and the account number. During periods of
drastic economic or market changes, shareholders may experience difficulty in
effecting telephone redemptions. Shareholders who are unable to reach a Fund or
State Street by telephone should follow the procedures outlined above for
redemption by mail.

The telephone redemption service is not made available to shareholders
automatically. Shareholders wishing to use the telephone redemption service must
indicate this on the Share Purchase Application and choose how the redemption
proceeds are to be paid. Redemption proceeds will either (i) be mailed by check
to the shareholder at the address in which the account is registered or (ii) be
wired to an account with the same registration as the shareholder's account in a
Fund at a designated commercial bank. State Street currently deducts a $5 wire
charge from all redemption proceeds wired. This charge is subject to change
without notice. A shareholder who decides later to use this service, or to
change instructions already given, should fill out a Shareholder Services Form
and send it to State Street Bank and Trust Company, P.O. Box 9021, Boston,
Massachusetts 02205-9827, with such shareholder's signature guaranteed by a bank
or trust company (not a Notary Public), a member firm of a domestic stock
exchange or by other financial institutions whose guarantees are acceptable to
State Street. Shareholders should allow approximately ten days for such form to
be processed. The Funds will employ reasonable procedures to verify that
telephone requests are genuine. These procedures include requiring some form of
personal identification prior to acting upon instructions and tape recording of
conversations. If the Fund fails to follow such procedures, it may be liable for
any losses due to unauthorized or fraudulent instructions. The Fund shall not be
liable for following telephone instructions reasonably believed to be genuine.
Also, each Fund reserves the right to refuse a telephone redemption request, if
it is believed advisable to do so. Financial intermediaries may charge a fee for
handling telephonic requests. The telephone redemption option may be suspended
or terminated at any time without notice.

General. The sale of shares is a taxable transaction for Federal income tax
purposes. Under unusual circumstances, a Fund may suspend redemptions or
postpone payment for up to seven days or longer, as permitted by Federal
securities law. The Funds reserve the right to close an account that through
redemption has remained below $1,000 for thirty days. Shareholders will receive
sixty days' written notice to increase the account value before the account is
closed. The Funds have elected to be governed by Rule 18f-1 under the 1940 Act
pursuant to which each Fund is obligated to redeem shares solely in cash, up to
the lesser of $250,000 or 1% of a Fund's total net assets during any ninety day
period for any one shareholder. See the Statement of Additional Information for
further details.

EXCHANGE PRIVILEGE

How To Exchange Shares. You may exchange some or all of your shares for shares
of the same Class in the other Evergreen mutual funds by telephone or mail as
described below. An exchange which represents an initial investment in another
Evergreen mutual fund must amount to at least $1,000. Once an exchange request
has been telephoned or mailed, it is irrevocable and may not be modified or
canceled. Exchanges will be made on the basis of the relative net asset value of
the shares exchanged next determined after an exchange request is received.
Exchanges are subject to minimum investment and suitability requirements.

Each of the Evergreen mutual funds has different investment objectives
and policies. For complete information, a prospectus of the fund into which an
exchange will be made should be read prior to the exchange. An exchange is
treated for Federal income tax purposes as a redemption and purchase of shares
and may result in the realization of a capital gain or loss. Each Fund imposes a
fee of $5 per exchange on shareholders who exchange in excess of four times per
calendar year. This exchange privilege may be modified or discontinued at any
time by the Fund upon sixty days' notice to shareholders and is only available
in states in which shares of the fund being acquired may lawfully be sold.

Exchanges by Telephone and Mail. You may exchange shares with a value of $1,000
or more by telephone by calling State Street (800-423-2615). Exchange requests
made after 4:00 p.m. (Eastern time) will be processed using the net asset value
determined on the next business day. During periods of drastic economic or
market changes, shareholders may experience difficulty in effecting telephone
exchanges. You should follow the procedures outlined below for exchanges by mail
if you are unable to reach State Street by telephone. If you wish to use the
telephone exchange service you should indicate this on the Share Purchase
Application. As noted above, each Fund will employ reasonable procedures to
confirm that instructions for the redemption or exchange of shares communicated
by telephone are genuine. A telephone exchange may be refused by a Fund or State
Street if it is believed advisable to do so. Procedures for exchanging Fund
shares by telephone may be modified or

SHAREHOLDER SERVICES

The Funds offer the following shareholder services. For more information
about these services or your account, contact your financial intermediary,
Evergreen Funds Distributor, Inc. ("EFD"), the distributor of the Funds' shares,
or the toll-free number on the front page of this Prospectus. Some services are
described in more detail in the Share Purchase Application.

Systematic Investment Plan. You may make monthly or quarterly investments into
an existing account automatically in amounts of not less than $25 per month or
$75 per quarter. Each Fund reserves the right to close an account that through
liquidation or termination of the Systematic Investment Plan has not reached a
minimum balance of $1,000 ($250 for retirement accounts) within twenty-four
months of the initial investment.

Telephone Investment Plan. You may make investments into an existing account
electronically in amounts of not less than $100 or more than $10,000 per
investment. Telephone investment requests received by 3:00 p.m. (Eastern time)
will be credited to a shareholder's account the day the request is received.

Shares purchased under the Funds Systematic Investment Plan or Telephone
Investment Plan may not be redeemed for ten days from the date of investment.

Systematic Cash Withdrawal Plan. When an account of $10,000 or more is opened or
when an existing account reaches that size, you may participate in the Funds
Systematic Cash Withdrawal Plan by filling out the appropriate part of the Share
Purchase Application. Under this plan, you may receive (or designate a third
party to receive) a monthly or quarterly check in a stated amount of not less
than $100. Fund shares will be redeemed as necessary to meet withdrawal
payments. All participants must elect to have their dividends and capital gain
distributions reinvested automatically.

Automatic Reinvestment Plan. For the convenience of investors, all dividends and
distributions are automatically reinvested in full and fractional shares of the
Fund at the net asset value per share at the close of business on the record
date, unless otherwise requested by a shareholder in writing. If the transfer
agent does not receive a written request for subsequent dividends and/or
distributions to be paid in cash at least three full business days prior to a
given record date, the dividends and/or distributions to be paid to a
shareholder will be reinvested. If you elect to receive dividends and
distributions in cash and the U.S. Postal Service cannot deliver the checks, or
if the checks remain uncashed for six months, the checks will be reinvested into
your account at the then current net asset value.

Tax Sheltered Retirement Plans. You may open a pension and profit sharing
account in any Evergreen mutual fund (except those funds having an objective of
providing tax free income) under the following prototype retirement plans: (i)
Individual Retirement Accounts ("IRAs") and Rollover IRAs; (ii) Simplified
Employee Pension (SEP) for sole proprietors, partnerships and corporations; and
(iii) Profit-Sharing and Money Purchase Pension Plans for corporations and their
employees.

EFFECT OF BANKING LAWS

The Glass-Steagall Act and other banking laws and regulations presently
prohibit member banks of the Federal Reserve System ("Member Banks") or their
non-bank affiliates from sponsoring, organizing, controlling, or distributing
the shares of registered open-end investment companies such as the Funds. Such
laws and regulations also prohibit banks from issuing, underwriting or
distributing securities in general. However, under the Glass-Steagall Act and
such other laws and regulations, a Member Bank or an affiliate thereof may act
as investment adviser, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer. Evergreen
Asset, since it is a subsidiary of FUNB, and CMG are subject to and in
compliance with the aforementioned laws and regulations.

Changes to applicable laws and regulations or future judicial or
administrative decisions could result in CMG or Evergreen Asset being prevented
from continuing to perform the services required under the investment advisory
contract or from acting as agent in connection with the purchase of shares of a
Fund by its customers. If CMG or Evergreen Asset were prevented from continuing
to provide the services called for under the investment advisory agreement, it
is expected that the Trustees would identify, and call upon each Fund's
shareholders to

<PAGE>
approve, a new investment adviser. If this were to occur, it is not anticipated
that the shareholders of any Fund would suffer any adverse financial
consequences.

OTHER INFORMATION

DIVIDENDS, DISTRIBUTIONS AND TAXES

It is the policy of each Fund to distribute to shareholders its
investment company income, if any, annually and any net realized capital gains
annually or more frequently as required as a condition of continued
qualification as a regulated investment company by the Code. Dividends and
distributions generally are taxable in the year in which they are paid, except
any dividends paid in January that were declared in the previous calendar
quarter may be treated as paid in December of the previous year. Income
dividends and capital gain distributions are automatically reinvested in
additional shares of the Fund making the distribution at the net asset value per
share at the close of business on the record date, unless the shareholder has
made a written request for payment in cash.

Each Fund has qualified and intends to continue to qualify to be treated
as a regulated investment company under the Code. While so qualified, it is
expected that each Fund will not be required to pay any Federal income tax on
that portion of its investment company taxable income and any net realized
capital gains it distributes to shareholders. The Code imposes a 4%
nondeductible excise tax on regulated investment companies, such as the Funds,
to the extent they do not meet certain distribution requirements by the end of
each calendar year. Each Fund anticipates meeting such distribution
requirements. Most shareholders of the Funds normally will have to pay Federal
income tax and any state or local taxes on the dividends and distributions they
receive from a Fund whether such dividends and distributions are made in cash or
in additional shares. Questions on how any distributions will be taxed to the
investor should be directed to the investor's own tax adviser.

Under current law, the highest Federal income tax rate applicable to net
long-term capital gains realized by individuals is 28%. The rate applicable to
corporations is 35%. Certain income from a Fund may qualify for a corporate
dividends-received deduction of 70%. Following the end of each calendar year,
every shareholder of the Fund will be sent applicable tax information and
information regarding the dividends and capital gain distributions made during
the calendar year.

A Fund may be subject to foreign withholding taxes which would reduce the
yield on its investments. Tax treaties between certain countries and the United
States may reduce or eliminate such taxes. Shareholders of a Fund who are
subject to United States Federal income tax may be entitled, subject to certain
rules and limitations, to claim a Federal income tax credit or deduction for
foreign income taxes paid by a Fund. See the Statement of Additional Information
for additional details. A Fund's transactions in options, futures and forward
contracts may be subject to special tax rules. These rules can affect the
amount, timing and characteristics of distributions to shareholders.

If more than 50% of the value of a Fund's assets at the end of the tax
year is represented by stock or securities of foreign corporations, the Fund
intends to qualify for certain Code stipulations that would allow shareholders
to claim a foreign tax credit or deduction on their U.S. income tax returns. The
Code may limit a shareholder's ability to claim a foreign tax credit.
Furthermore, shareholders who elect to deduct their portion of a Fund's foreign
taxes rather than take the foreign tax credit must itemize deductions on their
income tax returns.

Each Fund is required by Federal law to withhold 31% of reportable
payments (which may include dividends, capital gain distributions and
redemptions) paid to certain shareholders. In order to avoid this backup
withholding requirement, you must certify on the Share Purchase Application, or
on a separate form supplied by State Street, that your social security or
taxpayer identification number is correct and that you are not currently subject
to backup withholding or are exempt from backup withholding.

<PAGE>
The foregoing discussion of Federal income tax consequences is based on
tax laws and regulations in effect on the date of this Prospectus, and is
subject to change by legislative or administrative action. As the foregoing
discussion is for general information only, you should also review the
discussion of "Additional Tax Information" contained in the Statement of
Additional Information. In addition, you should consult your own tax adviser as
to the tax consequences of investments in the Funds, including the application
of state and local taxes which may be different from Federal income tax
consequences described above.

GENERAL INFORMATION

Portfolio Transactions. Consistent with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., and subject to seeking best
price and execution, a Fund may consider sales of its shares as a factor in the
selection of dealers to enter into portfolio transactions with the Fund.

Organization. The EVERGREEN GLOBAL REAL ESTATE EQUITY FUND and EVERGREEN GLOBAL
LEADERS FUND are separate series of the Evergreen Equity Trust (formerly
Evergreen Real Estate Equity Trust), a Massachusetts business trust organized in
1988. EVERGREEN INTERNATIONAL EQUITY FUND and EVERGREEN EMERGING MARKETS GROWTH
FUND are separate investment series of Evergreen Investment Trust (formerly
First Union Funds), a Massachusetts business trust organized in 1984. The Funds
do not intend to hold annual shareholder meetings; shareholder meetings will be
held only when required by applicable law. Shareholders have available certain
procedures for the removal of Trustees, including the right to demand that a
meeting of shareholders be called for the purpose of voting thereon if 10% of
the shareholders so request in writing.

A shareholder in each Class of a Fund will be entitled to his or her
share of all dividends and distributions from a Fund's assets, based upon the
relative value of such shares to those of other Classes of the Fund, and, upon
redeeming shares, will receive the then current net asset value of the Class of
shares of the Fund represented by the redeemed shares less any applicable
contingent deferred sales charges. Each Trust named above is empowered to
establish, without shareholder approval, additional investment series, which may
have different investment objectives, and additional Classes of shares for any
existing or future series. If an additional series or Class were established in
a Fund, each share of the series or Class would normally be entitled to one vote
for all purposes. Generally, shares of each series and Class would vote together
as a single class on matters, such as the election of Trustees, that affect each
series and Class in substantially the same manner. Class A, B, C and Y shares
have identical voting, dividend, liquidation and other rights, except that each
Class bears, to the extent applicable, its own distribution, shareholder service
and transfer agency expenses as well as any other expenses applicable only to a
specific Class. Each Class of shares votes separately with respect to Rule 12b-1
distribution plans and other matters for which separate class voting is
appropriate under applicable law. Shares are entitled to dividends as determined
by the Trustees and, in liquidation of a Fund, are entitled to receive the net
assets of the Fund.

Custodian, Registrar, Transfer Agent and Dividend-Disbursing Agent. State Street
Bank and Trust Company, P.O. Box 9021, Boston, Massachusetts 02205-9827 acts as
each Fund's custodian, registrar, transfer agent and dividend-disbursing agent.
State Street is compensated for its services as transfer agent by a fee based
upon the number of shareholder accounts maintained for the Funds. The transfer
agency fee with respect to the Class B shares will be higher than the transfer
agency fee with respect to the Class A shares or Class C shares.

Principal Underwriter. EFD, an affiliate of Furman Selz LLC, located 230 Park
Avenue, New York, New York 10169, is the principal underwriter of the Funds.
Furman Selz LLC also acts as sub-administrator to EVERGREEN INTERNATIONAL EQUITY
FUND, EVERGREEN EMERGING MARKETS GROWTH FUND and EVERGREEN GLOBAL LEADERS FUND
and provides certain sub-administrative services to Evergreen Asset in
connection with its role as investment adviser to EVERGREEN GLOBAL REAL ESTATE
EQUITY FUND, including providing personnel to serve as officers of the Funds.

Other Classes of Shares. Each Fund currently offers four classes of shares,
Class A, Class B, Class C and Class Y, and may in the future offer additional
classes. Class Y shares are the only class of shares offered by this Prospectus
and are only available to (i) persons who at or prior to December 31, 1994,
owned shares in a mutual fund advised by Evergreen Asset, (ii) certain
institutional investors and (iii) investment advisory clients of CMG, Evergreen
Asset or their affiliates. The dividends payable with respect to Class A, Class
B and Class C shares will be less than those payable with respect to Class Y
shares due to the distribution and shareholder servicing related expenses borne
by Class A, Class B and Class C shares and the fact that such expenses are not
borne by Class Y shares.

<PAGE>
Performance Information. From time to time, the Funds may quote their "total
return" or "yield" for a specified period in advertisements, reports or other
communications to shareholders. Total return and yield are computed separately
for Class A, Class B and Class C shares. A Fund's total return for each such
period is computed by finding, through the use of a formula prescribed by the
SEC, the average annual compounded rate of return over the period that would
equate an assumed initial amount invested to the value of the investment at the
end of the period. For purposes of computing total return, dividends and capital
gains distributions paid on shares of a Fund are assumed to have been reinvested
when paid and the maximum sales charges applicable to purchases of a Fund's
shares are assumed to have been paid. Yield is a way of showing the rate of
income the Fund earns on its investments as a percentage of the Fund's share
price. The Fund's yield is calculated according to accounting methods that are
standardized by the SEC for all stock and bond funds. Because yield accounting
methods differ from the method used for other accounting purposes, the Fund's
yield may not equal its distribution rate, the income paid to your account or
the net investment income reported in the Fund's financial statements. To
calculate yield, the Fund takes the interest income it earned from its portfolio
of investments (as defined by the SEC formula) for a 30-day period (net of
expenses), divides it by the average number of shares entitled to receive
dividends, and expresses the result as an annualized percentage rate based on
the Fund's share price at the end of the 30-day period. This yield does not
reflect gains or losses from selling securities.

In marketing a Fund's shares, information may be provided that is
designed to help individuals understand their investment goals and explore
various financial strategies. Such information may include publications
describing general principles of investing, such as asset allocation,
diversification, risk tolerance, and goal setting; a questionnaire designed to
help create a personal financial profile; and an action plan offering investment
alternatives. The information provided to investors may also include discussions
of other Evergreen mutual funds, products, and services, which may include:
retirement investing; brokerage products and services; the effects of periodic
investment plans and dollar cost averaging; saving for college; and charitable
giving. In addition, the information provided to investors may quote financial
or business publications and periodicals, including model portfolios or
allocations, as they relate to fund management, investment philosophy, and
investment techniques. The materials may also reprint, and use as advertising
and sales literature, articles from Evergreen Events, a quarterly magazine
provided free of charge to Evergreen Mutual fund shareholders.

Performance data for each class of shares will be included in any
advertisement or sales literature using performance data of a Fund. These
advertisements may quote performance rankings or ratings of a Fund by financial
publications or independent organizations such as Lipper Analytical Services,
Inc. and Morningstar, Inc. or compare a Fund's performance to various indices.
The Fund may also advertise in items of sales literature an "actual distribution
rate" which is computed by dividing the total ordinary income distributed (which
may include the excess of short-term capital gains over losses) to shareholders
for the latest twelve month period by the maximum public offering price per
share on the last day of the period. Investors should be aware that past
performance may not be reflective of future results.

Liability Under Massachusetts Law. Under Massachusetts law, Trustees and
shareholders of a business trust may, in certain circumstances, be held
personally liable for its obligations. The Declarations of Trust under which the
Funds operate provide that no Trustee or shareholder will be personally liable
for the obligations of the Trust and that every written contract made by the
Trust contain a provision to that effect. If any Trustee or shareholder were
required to pay any liability of the Trust, that person would be entitled to
reimbursement from the general assets of the Trust.