<PAGE>
Evergreen
Money Market
Funds
(Photo of mountains, stream, and trees)
1997 Annual Report
(Evergreen Tree Symbol Goes Here)
Evergreen Funds (sm)
Since 1932
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here)
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders............................... 1
FUND AT A GLANCE
Evergreen Money Market Fund........................ 2
Evergreen Pennsylvania Tax-Free Money Market
Fund............................................ 3
Evergreen Tax Exempt Money Market
Fund............................................ 4
Evergreen Treasury Money Market Fund............... 5
FINANCIAL HIGHLIGHTS
Evergreen Money Market Fund........................ 6
Evergreen Pennsylvania Tax-Free Money Market
Fund............................................ 9
Evergreen Tax Exempt Money Market
Fund............................................ 10
Evergreen Treasury Money Market Fund............... 11
SCHEDULES OF INVESTMENTS
Evergreen Money Market Fund........................ 12
Evergreen Pennsylvania Tax-Free Money Market
Fund............................................ 17
Evergreen Tax Exempt Money Market
Fund............................................ 20
Evergreen Treasury Money Market Fund............... 29
Statements of Assets and Liabilities................. 31
Statements of Operations............................. 32
Statements of Changes in Net Assets.................. 33
Combined Notes to Financial Statements............... 35
Report of Independent Accountants--
Price Waterhouse LLP............................... 41
Independent Auditors' Report--
KPMG Peat Marwick LLP.............................. 42
Federal Income Tax Status of Distributions........... 43
</TABLE>
ABOUT EVERGREEN KEYSTONE
Since 1971, the Evergreen Funds have been providing investors with a proven,
value-driven approach to equity investment management. For over 60 years of
changing economic conditions, Keystone has taken pride in helping investors meet
their financial goals through a broad range of financial products and services.
Combined, Evergreen Keystone offers over 70 funds designed to meet a broad range
of objectives, including fixed-income, balanced, growth and income, and
aggressive growth. Assets under management total more than $30 billion.
<PAGE>
EVERGREEN
LETTER TO SHAREHOLDERS (Evergreen Graphic
October 1997 Goes Here)
(Photo of William M Ennis Goes Here)
WILLIAM M. ENNIS
Dear Shareholders:
Money market funds did their job during the past year.
During a period when both the stock and bond markets delivered generous returns,
although with some short-term instability, money market funds provided investors
with an opportunity to receive competitive current income, to maintain
liquidity, and to have a safe harbor from the fluctuations of riskier parts of
the capital markets.
During the year, the U.S. economy continued its extraordinary performance.
Unemployment neared 24-year lows, the Gross Domestic Product grew strongly, and
consumer confidence soared. Through it all, inflation remained benign, despite
the exceptional growth and low unemployment.
This near-perfect environment was interrupted briefly in March when Federal
Reserve Board Chairman Alan Greenspan, in an appearance before Congress,
suggested that it was necessary that the Federal Reserve Board raise short-term
rates to curb potential inflation. On March 25, the board did just that, raising
the Fed Funds rate by one-quarter of one-percent. Subsequently, the economy
continued its healthy, non-inflationary pace of growth, and the board did not
change rates again for the remainder of your fund's fiscal year, which ended on
August 31, 1997.
In the bond market, after the rates jumped up in March, they started a gradual
decline during the following two months. As measured by the three-month Treasury
Bill, interest rates bottomed out at 4.84% on June 2, then climbed steadily
before closing at 5.22% on the final business day of August.
Throughout this period, your Evergreen money market funds retained their $1.00
net asset values, while income tended to move with changes in market rates.
These funds proved to be an excellent place for assets of those investors who
wanted a relatively safe place for their money, either because they wanted
liquidity or because they were concerned about volatility in the markets.
I am delighted to inform you that Evergreen Keystone has successfully integrated
all service functions of Evergreen and Keystone Funds. This means that you now
have full exchange privileges among all Evergreen and Keystone America funds. In
addition, you will be receiving the top-flight service that earned Evergreen
Keystone the 1996 Dalbar Quality Tested Service Seal, the highest award for
mutual fund service presented by Dalbar, an independent mutual fund survey and
rating firm.
In the following pages, we provide specific information about each Evergreen
money market fund. We present this information in a new format that makes
information easily accessible. We are very interested in hearing your thoughts
on this new format, and we welcome your suggestions.
Sincerely,
/s/ Bill Ennis
WILLIAM M. ENNIS
MANAGING DIRECTOR
1
<PAGE>
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FUND AT A GLANCE
As of August 31, 1997
[CAPTION]
<TABLE>
<CAPTION>
PERFORMANCE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AVERAGE ANNUALIZED TOTAL
RETURNS YIELDS & DISTRIBUTIONS
-------------------------- -----------------------
SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH
CLASS DATE 1 YEAR 1 YEAR1 YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A 1/4/95 4.95% -- -- -- 5.10% 4.91% 4.90% $0.05
B 1/26/95 4.22% -0.78% -- -- 4.36%1 4.20% 4.20% $0.04
C 8/1/97 -- -- -- -- -- 4.20% 4.20% $0.0042
K 8/1/97 -- -- -- -- -- 4.90% -- $0.0042
Y 11/2/87 5.27% -- 5.34% 4.54% 5.91% 5.20% 5.20% $0.05
</TABLE>
1 THE PERFORMANCE SHOWN REFLECTS THE APPLICABLE CDSC (CONTINGENT DEFERRED SALES
CHARGE).
2 THE 12-MONTH DISTRIBUTION IS CUMULATIVE SINCE INCEPTION FOR CLASS C AND CLASS
K SHARES.
PORTFOLIO CHARACTERISTICS
TOTAL NET ASSETS (ALL CLASSES): $3,465,323,866
AVERAGE MATURITY: 80 days
OBJECTIVE: Stability of principal and competitive income
STRATEGY: Invests in high quality
money market instruments
PORTFOLIO COMPOSITION
(AS A PERCENTAGE OF PORTFOLIO ASSETS)
(Pie chart appears here with the following plot points.)
U.S. Gov't and other Agency 0.5%
Bankers' Acceptance 3.7%
Corp. Notes/Bonds 5.5%
Certificates of Deposit 12.9%
Commercial Paper 77.4%
PORTFOLIO MANAGER
Ethel B. Sutton joined Lieber & Co. in 1985 and has fifteen
years experience managing portfolios of money market
instruments. At Lieber & Co., she is Vice President-
Investments of Evergreen Money Market Trust, which she has
(Photo of managed since its inception in 1987. Prior to joining Lieber &
Ethel B. Co., Mrs. Sutton was Money Market Manager from 1980-1985 for
Sutton Avco Corporation's Paul Revere Life Insurance Company and its
Appears U.S. and Canadian subsidiaries, as well as for the credit life
Here) and casualty companies of Avco Financial Services. Mrs. Sutton
is a graduate of Mount Holyoke College where she received a
B.A. degree in English.
ETHEL B. SUTTON
AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN
A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
2
<PAGE>
EVERGREEN
PENNSYLVANIA TAX-FREE MONEY MARKET FUND (Evergreen Graphic
Goes Here)
FUND AT A GLANCE
As of August 31, 1997
[CAPTION]
<TABLE>
<CAPTION>
PERFORMANCE
AVERAGE ANNUALIZED TOTAL
RETURNS YIELDS & DISTRIBUTIONS
------------------------------ ---------------------------
SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH
CLASS DATE 1 YEAR YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A 8/22/95 3.05% -- -- 3.10% 2.89% 2.87% $0.03
Y 8/15/91 3.15% 3.31% 2.87% 2.98% 2.99% 2.97% $0.03
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO CHARACTERISTICS
<S> <C>
TOTAL NET ASSETS (ALL CLASSES): $67,704,382
AVERAGE MATURITY: 40 days
OBJECTIVE: Stability of principal and tax-free income
STRATEGY: Invests in short-term tax-free securities issued
in Pennsylvania
</TABLE>
PORTFOLIO COMPOSITION
(AS A PERCENTAGE OF PORTFOLIO ASSETS)
(Pie chart appears here with the following plot points.)
General Market Notes 4.5%
Put or Option Tender Bonds 8.0%
Cash Equivalents 8.5%
Revenue & General
Obligation Bonds 22.5%
Variable Rate Notes 56.5%
PORTFOLIO MANAGER
Diane Beaver joined First Union in 1992. Ms. Beaver has over 14
years of investment experience. She currently manages the
Pennsylvania Tax-Free Money Market Fund, co-manages the Evergreen
Institutional Tax-Free Money Market Fund, and is responsible for
purchasing municipal bonds for individual trust accounts. Ms.
Beaver is an active participant in the Carolina Women in
Investments organization. She graduated from Lenoir Ryhne College
in 1973 with a B.A. in History and Sociology.
(Photo of
Diane Beaver
Goes Here)
DIANE BEAVER
AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN
A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
3
<PAGE>
EVERGREEN
TAX EXEMPT MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FUND AT A GLANCE
As of August 31, 1997
[CAPTION]
<TABLE>
<CAPTION>
PERFORMANCE
AVERAGE ANNUALIZED TOTAL
RETURNS YIELDS & DISTRIBUTIONS
---------------------------- -----------------------------
SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH
CLASS DATE 1 YEAR YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A 1/5/95 3.13% -- -- 3.24% 2.89% 2.93% $0.03
Y 11/2/88 3.44% 3.52% 3.13% 4.13% 3.19% 3.23% $0.03
</TABLE>
PORTFOLIO CHARACTERISTICS
TOTAL NET ASSETS (ALL CLASSES): $1,044,426,214
AVERAGE MATURITY: 36 days
OBJECTIVE: Stability of principal and tax-free income
STRATEGY: Invests in short-term municipal securities
PORTFOLIO COMPOSITION
(AS A PERCENTAGE OF PORTFOLIO ASSETS)
(Pie chart appears here with the following plot points.)
Anticipation Notes 4.2%
Commercial Paper and Bonds 7.0%
Put Bonds 15.5%
Variable Rate Demand Notes 73.3%
PORTFOLIO MANAGER
Steven C. Shachat joined Lieber & Co. in 1988 and has been
managing short-term tax-exempt investments. He is Portfolio
Manager of Evergreen Tax-Exempt Money Market Fund and Evergreen
Short-Intermediate Municipal Fund. Prior to joining Lieber & Co.,
Mr. Shachat was employed by Mitchell Hutchings Asset Management
Inc., a subsidiary of Paine Webber Inc., as a Portfolio Manager of
the Paine Webber Resource Management Account Tax-Free Fund. His
previous experience was with Donald Sheldon & Co., a firm
specializing in tax-exempt securities. Mr. Shachat earned a B.S.
degree from Boston University.
(Photo of
Steven C. Shachat
Goes Here)
STEVEN C. SHACHAT
AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN
A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
4
<PAGE>
EVERGREEN
TREASURY MONEY MARKET FUND (Evergreen Graphic
Goes Here)
FUND AT A GLANCE
As of August 31, 1997
[CAPTION]
<TABLE>
<CAPTION>
PERFORMANCE
AVERAGE ANNUALIZED TOTAL
RETURNS YIELDS & DISTRIBUTIONS
-------------------------------- -------------------------------
SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH
CLASS DATE 1 YEAR YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A 3/6/91 4.82% 4.98% 4.17% 4.27% 4.87% 4.89% $0.05
Y 3/6/91 5.14% 5.30% 4.48% 4.57% 5.18% 5.18% $0.05
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO CHARACTERISTICS
<S> <C>
TOTAL NET ASSETS (ALL CLASSES): $3,031,680,413
AVERAGE MATURITY: 51 days
OBJECTIVE: Stability of principal and current income
STRATEGY: Invests in short-term U.S. Treasuries and
repurchase agreements
</TABLE>
PORTFOLIO COMPOSITION
(AS A PERCENTAGE OF PORTFOLIO ASSETS)
(Pie chart appears here with the following plot points.)
Mutual Fund Shares 1.4%
U.S. Treasury Notes 27.6%
Repurchase Agreements 71%
PORTFOLIO MANAGER
Kellie Allen has over 11 years of investment experience. She is
Vice President and Fixed Income Portfolio Manager. She manages
three money market and short-term funds as well as several
separately managed accounts and has responsibility for a total of
$2.4 billion in assets. Ms. Allen started at First Union as an
equity trader in 1986. Prior to joining First Union, she worked as
an equity trader for First Tennessee Bank in Memphis, TN.
(Photo of
Kellie Allen
Goes Here)
KELLIE ALLEN
AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN
A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
5
<PAGE>
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
JANUARY 4, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR................................................. $ 1.00 $ 1.00 $ 1.00
Net investment income............................................................. 0.05 0.05 0.03
Less distributions to shareholders from net investment income..................... (0.05) (0.05) (0.03)
NET ASSET VALUE END OF YEAR....................................................... $ 1.00 $ 1.00 $ 1.00
Total return...................................................................... 4.95% 5.05% 3.53%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses.................................................................. 0.79% 0.75% 0.81%(a)
Total expenses excluding indirectly paid expenses............................... 0.79% -- --
Total expenses excluding waivers and/or reimbursements.......................... 0.88% 0.89% 1.02%(a)
Net investment income........................................................... 4.87% 4.86% 5.26%(a)
NET ASSETS END OF YEAR (MILLIONS)................................................. $2,803 $1,755 $ 685
</TABLE>
(a) Annualized.
<TABLE>
<CAPTION>
JANUARY 26, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF YEAR.................................................. $ 1.00 $ 1.00 $ 1.00
Net investment income.............................................................. 0.04 0.04 0.03
Less distributions to shareholders from net investment income...................... (0.04) (0.04) (0.03)
NET ASSET VALUE END OF YEAR........................................................ $ 1.00 $ 1.00 $ 1.00
Total return (a)................................................................... 4.22% 4.31% 2.78%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses................................................................... 1.49% 1.45% 1.51%(b)
Total expenses excluding indirectly paid expenses................................ 1.49% -- --
Total expenses excluding waivers and/or reimbursements........................... 1.55% 1.59% 2.39%(b)
Net investment income............................................................ 4.16% 4.18% 4.54%(b)
NET ASSETS END OF YEAR (MILLIONS).................................................. $ 23 $ 10 $ 8
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
EVERGREEN
MONEY MARKET FUND (Evergreen Graphic
Goes Here)
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
AUGUST 1, 1997
(COMMENCEMENT OF
CLASS OPERATIONS) TO
AUGUST 31, 1997
<S> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF PERIOD...................................................................... $ 1.00
Net investment income.................................................................................... 0.00(c)
Less distributions to shareholders from net investment income............................................ (0.00)(c)
NET ASSET VALUE END OF PERIOD............................................................................ $ 1.00
Total return (a)......................................................................................... 0.37%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses......................................................................................... 1.67%(b)
Total expenses excluding indirectly paid expenses...................................................... 1.66%(b)
Total expenses excluding waivers and/or reimbursements................................................. 1.69%(b)
Net investment income.................................................................................. 4.42%(b)
NET ASSETS END OF PERIOD (MILLIONS)...................................................................... $ 5
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Represents an amount less than $0.01 per share.
<TABLE>
<CAPTION>
AUGUST 1, 1997
(COMMENCEMENT OF
CLASS OPERATIONS) TO
AUGUST 31, 1997
<S> <C>
CLASS K SHARES
NET ASSET VALUE BEGINNING OF PERIOD...................................................................... $ 1.00
Net investment income.................................................................................... 0.00(c)
Less distributions to shareholders from net investment income............................................ (0.00)(c)
NET ASSET VALUE END OF PERIOD............................................................................ $ 1.00
Total return (a)......................................................................................... 0.38%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses......................................................................................... 0.88%(b)
Total expenses excluding indirectly paid expenses...................................................... 0.87%(b)
Total expenses excluding waivers and/or reimbursements................................................. 0.91%(b)
Net investment income.................................................................................. 4.90%(b)
NET ASSETS END OF PERIOD (THOUSANDS)..................................................................... $ 105
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Represents an amount less than $0.01 per share.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FINANCIAL HIGHLIGHTS (CONTINUED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
1997 1996 1995
<S> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.............................................. $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Net investment income.......................................................... 0.05 0.05 0.05
Less distributions to shareholders from net investment income.................. (0.05) (0.05) (0.05)
------- ------- -------
NET ASSET VALUE END OF YEAR.................................................... $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return................................................................... 5.27% 5.36% 5.38%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses............................................................... 0.48% 0.45% 0.53%
Total expenses excluding indirectly paid expenses............................ 0.48% -- --
Total expenses excluding waivers and/or reimbursements....................... 0.54% 0.59% 0.73%
Net investment income........................................................ 5.13% 5.16% 5.26%
NET ASSETS END OF YEAR (MILLIONS).............................................. $ 635 $ 671 $ 283
<CAPTION>
TEN MONTHS
AUGUST 31, 1994(B)
<S> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.............................................. $ 1.00
======
Net investment income.......................................................... 0.03
Less distributions to shareholders from net investment income.................. (0.03)
------
NET ASSET VALUE END OF YEAR.................................................... $ 1.00
======
Total return................................................................... 2.92%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses............................................................... 0.32%(a)
Total expenses excluding indirectly paid expenses............................ --
Total expenses excluding waivers and/or reimbursements....................... 0.71%(a)
Net investment income........................................................ 3.46%(a)
NET ASSETS END OF YEAR (MILLIONS).............................................. $ 273
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
-----------------------
1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES (continued)
NET ASSET VALUE BEGINNING OF YEAR........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Net investment income....................................... 0.03 0.04 0.07 0.08 0.09
Less distributions to shareholders from net investment
income.................................................... (0.03) (0.04) (0.07) (0.08) (0.09)
------- -------- -------- -------- --------
NET ASSET VALUE END OF YEAR................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======== ========
Total return................................................ 3.23% 4.23% 6.73% 8.40% 9.39%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses............................................ 0.39% 0.36% 0.30% 0.35% 0.38%
Total expenses excluding indirectly paid expenses......... -- -- -- -- --
Total expenses excluding waivers and/or reimbursements.... 0.71% 0.72% 0.70% 0.69% 0.75%
Net investment income..................................... 3.19% 4.18% 6.53% 8.08% 9.42%
NET ASSETS END OF YEAR (MILLIONS)........................... $ 299 $ 358 $ 438 $ 458 $ 408
<CAPTION>
NOVEMBER 2, 1987
(COMMENCEMENT OF
CLASS OPERATIONS)
TO OCTOBER 31,
1988
<S> <C>
CLASS Y SHARES (continued)
NET ASSET VALUE BEGINNING OF YEAR........................... $ 1.00
=======
Net investment income....................................... 0.07
Less distributions to shareholders from net investment
income.................................................... (0.07)
-------
NET ASSET VALUE END OF YEAR................................. $ 1.00
=======
Total return................................................ 7.37%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses............................................ 0.43%(a)
Total expenses excluding indirectly paid expenses......... --
Total expenses excluding waivers and/or reimbursements.... 0.93%(a)
Net investment income..................................... 7.26%(a)
NET ASSETS END OF YEAR (MILLIONS)........................... $ 161
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from October 31 to August 31.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
EVERGREEN
PENNSYLVANIA TAX-FREE MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
AUGUST 22, 1995
SIX MONTHS (COMMENCEMENT OF
YEAR ENDED ENDED CLASS OPERATIONS) TO
AUGUST 31, 1997 AUGUST 31, 1996 (B) FEBRUARY 29, 1996
<S> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR................................. $ 1.00 $ 1.00 $ 1.00
======== ======== =======
Net investment income............................................. 0.03 0.01 0.02
Less distributions to shareholders from net investment income..... (0.03) (0.01) (0.02)
------- -------- -------
NET ASSET VALUE END OF YEAR....................................... $ 1.00 $ 1.00 $ 1.00
======== ======== =======
Total return...................................................... 3.05% 1.49% 1.72%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses.................................................. 0.60% 0.55%(a) 0.47%(a)
Total expenses excluding indirectly paid expenses............... 0.60% -- --
Total expenses excluding waivers and/or reimbursements.......... 0.89% 0.96%(a) 1.08%(a)
Net investment income............................................. 3.01% 2.97%(a) 3.14%(a)
NET ASSETS END OF YEAR (MILLIONS)................................. $ 36 $ 22 $ 4
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from February 28 to August 31.
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
YEAR ENDED ENDED FEBRUARY 29, YEAR ENDED FEBRUARY 28,
AUGUST 31, 1997 AUGUST 31, 1996 (B) 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING
OF YEAR................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======= ======= =======
Net investment income.... 0.03 0.01 0.03 0.03 0.02 0.03
Less distributions to
shareholders from net
investment income...... (0.03) (0.01) (0.03) (0.03) (0.02) (0.03)
-------- ------- ------- -------- ------- -------
NET ASSET VALUE
END OF YEAR............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======= ======== ======= ========
Total return............. 3.15% 1.51% 3.55% 2.81% 2.10% 2.68%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET
ASSETS:
Total expenses......... 0.50% 0.50%(a) 0.37% 0.33% 0.47% 0.35%
Total expenses
excluding indirectly
paid
expenses............. 0.50% -- -- -- -- --
Total expenses
excluding waivers
and/or
reimbursements....... 0.60% 0.66%(a) 0.73% 1.05% 1.26% 1.07%
Net investment
income............... 3.10% 2.92%(a) 3.42% 3.09% 2.10% 2.62%
NET ASSETS END OF YEAR
(MILLIONS)............. $ 32 $ 48 $ 83 $ 44 $ 14 $ 16
<CAPTION>
AUGUST 15, 1991
(COMMENCEMENT OF
CLASS OPERATIONS) TO
FEBRUARY 29, 1992
<S> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING
OF YEAR................ $ 1.00
=======
Net investment income.... 0.02
Less distributions to
shareholders from net
investment income...... (0.02)
--------
NET ASSET VALUE
END OF YEAR............ $ 1.00
========
Total return............. 2.20%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET
ASSETS:
Total expenses......... 0.19%(a)
Total expenses
excluding indirectly
paid
expenses............. --
Total expenses
excluding waivers
and/or
reimbursements....... 0.77%(a)
Net investment
income............... 3.90%(a)
NET ASSETS END OF YEAR
(MILLIONS)............. $ 21
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from February 28 to August 31.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
EVERGREEN
TAX EXEMPT MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 5, 1995
AUGUST 31, (COMMENCEMENT OF
----------------- CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR................................................ $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Net investment income............................................................ 0.03 0.03 0.02
Less distributions to shareholders from net investment income.................... (0.03) (0.03) (0.02)
-------- ------- -------
NET ASSET VALUE END OF YEAR...................................................... $ 1.00 $ 1.00 $ 1.00
======== ======= =======
Total return..................................................................... 3.13% 3.22% 2.24%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses................................................................. 0.83% 0.79% 0.78%(a)
Total expenses excluding indirectly paid expenses.............................. 0.83% -- --
Total expenses excluding waivers and/or reimbursements......................... 0.86% 0.90% 0.90%(a)
Net investment income.......................................................... 3.09% 3.14% 3.28%(a)
NET ASSETS END OF YEAR (MILLIONS)................................................ $ 667 $ 661 $ 555
</TABLE>
(a) Annualized.
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
1997 1996 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income.............................. 0.03 0.03 0.04 0.02 0.03 0.04 0.05 0.06
Less distributions to shareholders from net
investment income................................ (0.03) (0.03) (0.04) (0.02) (0.03) (0.04) (0.05) (0.06)
NET ASSET VALUE END OF YEAR........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return....................................... 3.44% 3.53% 3.59% 2.50% 2.61% 3.73% 5.46% 6.15%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses................................... 0.53% 0.49% 0.50% 0.34% 0.34% 0.32% 0.28% 0.31%
Total expenses excluding indirectly paid
expenses....................................... 0.53% -- -- -- -- -- -- --
Total expenses excluding waivers and/or
reimbursements................................. 0.55% 0.60% 0.63% 0.64% 0.63% 0.63% 0.66% 0.71%
Net investment income............................ 3.37% 3.44% 3.53% 2.47% 2.58% 3.72% 5.23% 5.94%
NET ASSETS END OF YEAR (MILLIONS).................. $ 378 $ 617 $ 421 $ 402 $ 401 $ 417 $ 510 $ 311
<CAPTION>
NOVEMBER 2,
1988
(COMMENCEMENT
OF CLASS
OPERATIONS)
TO AUGUST 31,
1989
<S> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.................. $ 1.00
Net investment income.............................. 0.05
Less distributions to shareholders from net
investment income................................ (0.05)
NET ASSET VALUE END OF YEAR........................ $ 1.00
Total return....................................... 5.51%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses................................... 0.24%(a)
Total expenses excluding indirectly paid
expenses....................................... --
Total expenses excluding waivers and/or
reimbursements................................. 0.79%(a)
Net investment income............................ 6.77%(a)
NET ASSETS END OF YEAR (MILLIONS).................. $ 109
</TABLE>
(a) Annualized.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
EVERGREEN
TREASURY MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
EIGHT MONTHS
YEAR ENDED ENDED YEAR ENDED
AUGUST 31, AUGUST 31, DECEMBER 31,
1997 1996 1995 (B) 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income................................ 0.05 0.05 0.03 0.04 0.03 0.03
Less distributions to shareholders from net
investment income.................................. (0.05) (0.05) (0.03) (0.04) (0.03) (0.03)
NET ASSET VALUE END OF YEAR.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return......................................... 4.82% 4.98% 3.58% 3.75% 2.73% 3.36%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses..................................... 0.72% 0.69% 0.63%(a) 0.50% 0.48% 0.48%
Total expenses excluding indirectly paid
expenses......................................... 0.72% -- -- -- -- --
Total expenses excluding waivers and/or
reimbursements................................... 0.72% 0.77% 0.79%(a) 0.78% 0.82% 0.82%
Net investment income.............................. 4.73% 4.76% 5.30%(a) 3.91% 2.70% 3.22%
NET ASSETS END OF YEAR (MILLIONS).................... $2,485 $2,608 $1,178 $ 755 $ 261 $ 209
<CAPTION>
MARCH 6, 1991
(COMMENCEMENT OF
CLASS OPERATIONS) TO
DECEMBER 31, 1991
<S> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00
Net investment income................................ 0.04
Less distributions to shareholders from net
investment income.................................. (0.04)
NET ASSET VALUE END OF YEAR.......................... $ 1.00
Total return......................................... 4.46%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses..................................... 0.47%(a)
Total expenses excluding indirectly paid
expenses......................................... --
Total expenses excluding waivers and/or
reimbursements................................... 1.08%(a)
Net investment income.............................. 4.95%(a)
NET ASSETS END OF YEAR (MILLIONS).................... $ 100
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
<TABLE>
<CAPTION>
EIGHT MONTHS
YEAR ENDED ENDED YEAR ENDED
AUGUST 31, AUGUST 31, DECEMBER 31,
1997 1996 1995 (B) 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income................................ 0.05 0.05 0.04 0.04 0.03 0.04
Less distributions to shareholders from net
investment income.................................. (0.05) (0.05) (0.04) (0.04) (0.03) (0.04)
NET ASSET VALUE END OF YEAR.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return......................................... 5.14% 5.29% 3.78% 4.06% 3.04% 3.67%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses..................................... 0.42% 0.39% 0.33%(a) 0.20% 0.18% 0.17%
Total expenses excluding indirectly paid
expenses......................................... 0.42% -- -- -- -- --
Total expenses excluding waivers and/or
reimbursements................................... 0.43% 0.47% 0.49%(a) 0.48% 0.52% 0.52%
Net investment income.............................. 5.02% 5.12% 5.60%(a) 3.78% 3.00% 3.61%
NET ASSETS END OF YEAR (MILLIONS).................... $ 547 $ 760 $ 277 $ 163 $ 366 $ 286
<CAPTION>
MARCH 6, 1991
(COMMENCEMENT OF
CLASS OPERATIONS) TO
DECEMBER 31, 1991
<S> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00
Net investment income................................ 0.05
Less distributions to shareholders from net
investment income.................................. (0.05)
NET ASSET VALUE END OF YEAR.......................... $ 1.00
Total return......................................... 4.66%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses..................................... 0.20%(a)
Total expenses excluding indirectly paid
expenses......................................... --
Total expenses excluding waivers and/or
reimbursements................................... 0.52%(a)
Net investment income.............................. 5.53%(a)
NET ASSETS END OF YEAR (MILLIONS).................... $ 265
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
BANKERS' ACCEPTANCES-- 0.1%
(cost $3,995,621)
$ 4,000,000 Bank Of Hawaii Nassau,
5.63%, 9/8/97................... $ 3,995,621
BANKERS' ACCEPTANCES--
YANKEE & EURO DOLLAR-- 3.6%
30,000,000 Bank Of Tokyo Mitsubishi
Limited,
5.70%, 12/31/97................. 29,425,250
14,200,000 Dai-Ichi Kangyo Bank,
5.70%, 12/9/97.................. 13,977,415
Fuji Bank Limited New York:
10,000,000 5.62%, 2/2/98..................... 9,759,589
13,000,000 5.70%, 1/5/98..................... 12,740,650
10,000,000 5.77%, 1/5/98..................... 9,798,050
Fuji Bank Limited:
10,000,000 5.68%, 9/10/97.................... 9,985,800
16,000,000 5.74%, 10/6/97.................... 15,910,711
8,000,000 5.86%, 10/28/97................... 7,925,773
Sanwa Bank Limited:
5,700,000 5.63%, 12/2/97.................... 5,617,990
8,100,000 5.66%, 9/16/97.................... 8,080,897
TOTAL BANKERS' ACCEPTANCES--
YANKEE & EURO DOLLAR
(COST $123,222,125)............. 123,222,125
CERTIFICATES OF DEPOSIT-- 12.9%
25,000,000 Bank Brussels Lambert America
Inc.,
5.85%, 1/9/98................... 25,000,000
5,000,000 Bank of New York,
5.93%, 9/3/97................... 4,999,970
50,000,000 Bank Of Nova Scotia,
5.81%, 8/5/98................... 49,986,704
25,000,000 Banque National De Paris,
5.86%, 1/23/98.................. 25,000,000
25,000,000 Bayerische Vereinsbank AG,
5.76%, 12/19/97................. 25,000,000
25,000,000 Bayerische Vereinsbank AG, New
York,
6.15%, 5/11/98.................. 25,000,000
25,000,000 Canadian Imperial Bank of
Commerce,
5.70%, 1/2/98................... 25,000,000
5,000,000 Commerzbank AG, New York
Branch,
5.67%, 9/18/97.................. 4,999,704
Deutsche Bank AG:
5,000,000 5.91%, 3/17/98.................... 4,999,226
25,000,000 6.00%, 9/23/97.................... 25,000,000
25,000,000 National Bank of Canada,
5.50%, 11/14/97................. 25,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
CERTIFICATES OF DEPOSIT-- CONTINUED
$50,000,000 National Bank Of Canada, New
York,
6.00%, 6/26/98.................. $ 50,000,000
Rabobank Nederland N.V.:
5,000,000 5.78%, 12/8/97.................... 5,002,961
1,000,000 5.99%, 3/24/98.................... 998,835
Societe Generale:
25,000,000 5.70%, 12/16/97................... 25,000,000
25,000,000 5.70%, 1/2/98..................... 25,000,000
25,000,000 5.80%, 1/9/98..................... 25,000,000
25,000,000 Societe Generale (New York),
5.66%, 2/23/98.................. 25,000,000
50,000,000 Svenska Handlesbanken Inc.,
5.96%, 8/13/98.................. 49,981,880
TOTAL CERTIFICATES OF DEPOSIT
(COST $445,969,280)............. 445,969,280
COMMERCIAL PAPER-- 77.4%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.6%
22,500,000 BMW U.S. Capital Corp.,
5.53%, 11/10/97................. 22,258,063
BANK HOLDING COMPANIES-- 16.4%
5,000,000 ABN Amro North America,
5.52%, 11/10/97................. 4,946,333
25,000,000 Bankers Trust Company,
6.145%, 5/28/98................. 24,998,242
Bankers Trust New York Corp.:
25,000,000 5.48%, 10/20/97................... 24,813,528
25,000,000 5.51%, 10/10/97................... 24,850,771
Chiao Tung Bank:
20,000,000 5.55%, 12/11/97................... 19,688,583
24,900,000 5.57%, 11/3/97.................... 24,657,287
25,000,000 5.70%, 12/11/97................... 24,600,209
50,000,000 5.75%, 10/9/97.................... 49,696,528
Export Import Bank Korea:
46,500,000 5.63%, 10/10/97................... 46,216,389
50,000,000 5.67%, 10/7/97.................... 49,716,500
Industrial Bank Korea:
10,000,000 5.70%, 9/15/97.................... 9,977,833
10,000,000 5.70%, 10/7/97.................... 9,943,000
15,000,000 5.72%, 9/26/97.................... 14,940,417
9,700,000 5.78%, 11/4/97.................... 9,600,327
25,000,000 5.85%, 9/26/97.................... 24,898,438
Korea Development Bank:
11,000,000 5.63%, 9/22/97.................... 10,963,874
40,000,000 5.65%, 9/3/97..................... 39,987,444
25,000,000 5.70%, 10/7/97.................... 24,857,500
20,000,000 5.75%, 10/23/97................... 19,833,889
Sumitomo Bank Capital Mkts., Inc.:
26,223,000 5.70%, 10/6/97.................... 26,077,681
33,000,000 5.73%, 9/18/97.................... 32,910,707
</TABLE>
(CONTINUED)
12
<PAGE>
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-CONTINUED
BANK HOLDING COMPANIES-- CONTINUED
Unifunding, Inc.:
$30,400,000 5.51%, 10/21/97.................. $ 30,167,355
20,000,000 5.53%, 11/12/97.................. 19,778,800
568,121,635
CHEMICALS-- 0.4%
15,000,000 Arco Chemical Company,
5.55%, 11/7/97................. 14,845,063
DIVERSIFIED COMPANIES-- 2.4%
50,000,000 Duke Capital Corp.,
5.55%, 10/6/97................. 49,730,208
12,000,000 First Brands Commercial Inc. (a),
5.54%, 9/5/97.................. 11,992,613
23,150,000 Mitsui & Co. (USA), Inc.,
5.55%, 10/14/97................ 22,996,535
84,719,356
ELECTRONICS-- 3.5%
10,000,000 Avnet, Inc.,
5.53%, 9/29/97................. 9,956,989
Orix America, Inc.,
(LOC: Norinchukin Bank) (a):
26,000,000 5.60%, 11/5/97................... 25,737,111
44,675,000 5.62%, 11/6/97................... 44,214,699
6,500,000 5.63%, 11/3/97................... 6,435,959
9,300,000 5.70%, 9/15/97................... 9,279,385
Seiko Corp,
(LOC: Sumitomo Bank):
10,000,000 5.66%, 9/16/97................... 9,976,417
15,000,000 5.68%, 10/6/97................... 14,917,166
120,517,726
ENERGY-- 2.1%
CSW Credit Inc.:
15,100,000 5.50%, 9/11/97.................. 15,076,931
15,300,000 5.50%, 9/16/97................... 15,264,937
16,393,000 5.53%, 11/7/97................... 16,224,284
Oglethorpe Power Company:
11,799,000 5.55%, 9/18/97................... 11,768,077
13,000,000 5.56%, 9/11/97................... 12,979,922
71,314,151
FINANCE & INSURANCE-- 29.2%
5,000,000 American Express Credit Corp.,
5.53%, 9/12/97................. 4,991,551
Aristar, Inc.:
30,000,000 5.59%, 10/17/97.................. 29,785,717
22,000,000 5.60%, 9/2/97.................... 21,996,578
16,000,000 5.60%, 9/5/97.................... 15,990,044
750,000 Associates Corp. North America,
6.63%, 11/15/97................ 751,930
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-- CONTINUED
FINANCE & INSURANCE-- CONTINUED
Astro Capital Corp.,
(LOC: Industrial Bank of
Japan Ltd.):
$30,000,000 5.61%, 12/30/97.................. $ 29,439,000
10,000,000 5.63%, 10/31/97.................. 9,906,167
Banner Receivables Corp.,
(LOC: Republic Bank) (a):
21,840,000 5.58%, 10/24/97................. 21,660,584
32,000,000 5.60%, 10/14/97.................. 31,785,956
22,000,000 Crown International Finance,
(LOC: Credit Suisse) (a)
5.56%, 9/5/97.................. 21,986,409
10,000,000 Dynamic Funding Corp.,
(LOC: Sumitomo Bank)
5.70%, 9/29/97............... 9,955,667
Finova Capital Corp.:
25,000,000 5.54%, 10/31/97.................. 24,769,167
15,000,000 5.55%, 10/10/97.................. 14,909,812
10,000,000 5.55%, 10/17/97.................. 9,929,083
15,000,000 5.55%, 11/12/97.................. 14,833,500
27,015,000 5.56%, 9/15/97................... 26,956,588
2,000,000 Ford Motor Credit Company,
5.54%, 10/28/97................. 1,982,457
5,142,000 Fountain Square Commerce
Funding,
(LOC: Fifth Third Bank) (a)
5.55%, 9/9/97.................. 5,135,658
40,000,000 FP Funding Corp.,
(LOC: The Bank of
Tokyo-Mitsubishi Ltd.) (a)
5.57%, 9/30/97................. 39,820,522
5,000,000 General Electric Capital Corp.,
5.55%, 9/25/97................. 4,981,500
16,076,000 Gotham Funding Corp.,
(LOC: Republic Bank)
5.58%, 10/27/97................ 15,936,460
Green Tree Financial Corp.:
40,000,000 5.63%, 9/5/97.................... 39,974,978
25,000,000 5.70%, 10/14/97.................. 24,829,792
30,000,000 5.70%, 10/24/97.................. 29,748,250
20,000,000 5.70%, 10/27/97.................. 19,822,666
20,000,000 5.71%, 10/31/97.................. 19,809,667
10,000,000 5.72%, 10/20/97.................. 9,922,144
Jet Funding Corp.,
(LOC: Sanwa Bank):
15,000,000 5.63%, 9/30/97................... 14,931,971
40,300,000 5.70%, 9/30/97................... 40,114,956
15,000,000 5.72%, 9/30/97................... 14,930,883
10,000,000 KFW International Finance Inc.,
5.49%, 10/20/97................ 9,925,275
(CONTINUED)
13
(Evergreen Graphic
Goes Here)
EVERGREEN
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
PRINCIPAL
AMOUNT VALUE
COMMERCIAL PAPER--continued
FINANCE & INSURANCE-- CONTINUED
$25,000,000 Lehman Brothers Holdings, Inc.,
5.82%, 11/26/97................ $24,652,417
24,000,000 Market Street Funding Corp.,
(LOC: Royal Bank of Canada) (a)
5.53%, 10/14/97................ 23,841,473
Merrill Lynch & Company Inc.:
50,000,000 5.52%, 9/29/97................... 49,785,333
5,000,000 5.63%, 10/15/97.................. 4,965,595
5,000,000 Motorola Inc.,
5.46%, 9/9/97.................. 4,993,933
Old Line Funding Corp.,
(LOC: Dai-Ichi Kangyo Bank,
Ltd.):
50,000,000 5.53%, 10/3/97................... 49,754,222
20,000,000 5.55%, 9/2/97 (a)................ 19,996,917
Progress Funding Corp.,
30,000,000 5.64%, 10/22/97 (a).............. 29,760,300
(LOC: Sumitomo Bank):
20,000,000 5.63%, 9/12/97................... 19,965,594
6,500,000 5.65%, 9/26/97................... 6,474,497
22,750,000 Sanwa Business Credit Corp.,
(LOC: Fuji Bank Ltd.)
5.70%, 9/3/97.................. 22,742,796
5,000,000 Sara Lee Corp.,
5.48%, 9/25/97................. 4,981,733
Sigma Finance Inc. (a):
50,000,000 5.53%, 9/22/97................... 49,838,708
12,450,000 5.55%, 9/29/97................... 12,396,258
Strait Capital Corp.,
(LOC: The Bank of
Tokyo-Mitsubishi Ltd.):
9,924,000 5.62%, 10/15/97................. 9,855,833
17,083,000 5.62%, 12/1/97.................. 16,840,317
25,668,000 Strategic Asset Funding Corp.,
(LOC: Fuji Bank Ltd.)
5.80%, 9/30/97................. 25,548,074
Tri-Lateral Capital (USA), Inc.,
(LOC: Industrial Bank of
Japan Ltd.):
34,270,000 5.65%, 10/6/97.................. 34,081,753
8,749,000 5.68%, 12/10/97................. 8,610,960
11,800,000 Wood Street Funding Corp.,
(LOC: Royal Bank of Canada)
5.54%, 11/13/97................ 11,667,440
1,012,269,085
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
COMMERCIAL PAPER-- CONTINUED
FOOD & BEVERAGE PRODUCTS-- 0.6%
Cargill Financial Services Corp:
$10,000,000 5.40%, 10/10/97.................. $ 9,941,500
12,000,000 5.60%, 12/5/97................... 11,822,667
21,764,167
HEALTHCARE PRODUCTS & SERVICES-- 0.2%
8,000,000 Holy Cross Health System Corp.,
5.55%, 10/16/97................ 7,944,500
INSURANCE-- 3.4%
Equitable of Iowa:
23,000,000 5.56%, 9/26/97................... 22,911,194
23,000,000 5.56%, 9/29/97................... 22,900,538
Safeco Credit Company Inc.:
13,000,000 5.58%, 11/13/97.................. 12,852,905
35,000,000 5.62%, 11/7/97................... 34,633,920
16,000,000 5.63%, 10/29/97.................. 15,854,871
8,000,000 5.63%, 10/31/97.................. 7,924,933
117,078,361
MACHINERY-- DIVERSIFIED-- 2.7%
27,500,000 American Honda Finance Corp.,
5.56%, 10/21/97................ 27,287,639
General Motors Acceptance Corp.:
25,000,000 5.82%, 11/12/97.................. 24,709,000
25,000,000 5.84%, 10/14/97.................. 24,825,760
17,000,000 Mitsubishi Motors Credit of
America, Inc.,
(LOC: Republic Bank)
5.68%, 9/15/97................. 16,962,449
93,784,848
OIL-- 1.6%
10,000,000 Fina Oil & Chemical Company,
5.52%, 10/27/97................ 9,914,133
45,625,000 Koch Industries,
5.51%, 10/2/97................. 45,408,522
55,322,655
PHARMACEUTICALS-- 1.0%
AC Acquisition Holding Co.:
17,000,000 5.50%, 9/26/97 (a)............... 16,935,069
14,000,000 5.50%, 10/7/97................... 13,923,000
5,200,000 5.52%, 9/22/97 (a)............... 5,183,256
36,041,325
PUBLISHING, BROADCASTING &
ENTERTAINMENT-- 4.3%
Dun & Bradstreet Corp:
14,000,000 5.65%, 9/17/97................... 13,964,844
30,000,000 5.65%, 9/23/97................... 29,896,417
(CONTINUED)
14
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
PRINCIPAL
AMOUNT VALUE
COMMERCIAL PAPER-- CONTINUED
PUBLISHING, BROADCASTING & ENTERTAINMENT--
CONTINUED
$22,700,000 Knight Ridder Inc.,
5.58%, 10/3/97.............. $ 22,587,408
Tribune Company (a):
5,900,000 5.55%, 9/24/97................ 5,879,080
44,100,000 5.60%, 9/24/97................ 43,942,220
32,000,000 5.63%, 12/19/97............... 31,454,515
147,724,484
REAL ESTATE-- 3.1%
11,588,000 Four Embarcadero,
(LOC: Sanwa Bank)
5.62%, 11/13/97................ 11,455,942
MEC Finance USA, Inc. (a):
20,000,000 5.53%, 10/17/97.................. 19,858,678
11,000,000 5.68%, 9/18/97................... 10,970,495
Twin Towers, Inc.
32,443,000 5.52%, 11/21/97.................. 32,040,058
(LOC: NatWest Bank):
11,153,000 5.52%, 10/16/97.................. 11,076,045
17,325,000 5.54%, 9/24/97 (a)............... 17,263,679
6,000,000 5.55%, 10/21/97.................. 5,953,750
108,618,647
RETAIL-- 2.3%
Avon Capital Corp. (a):
20,000,000 5.62%, 9/16/97................... 19,953,167
30,000,000 5.62%, 9/17/97................... 29,925,066
21,000,000 5.64%, 9/15/97................... 20,953,940
7,000,000 Sothebys Inc.,
5.58%, 9/22/97................. 6,977,215
77,809,388
TELECOMMUNICATIONS-- 1.0%
8,000,000 Ameritech Corp.,
5.58%, 10/6/97................. 7,956,600
25,000,000 GTE Corp.,
5.54%, 9/26/97................. 24,903,819
32,860,419
TEXTILE & APPAREL-- 0.2%
Calcot Ltd.:
3,000,000 5.58%, 9/11/97................. 2,995,350
2,000,000 5.58%, 9/12/97................. 1,996,590
3,000,000 5.60%, 9/12/97................. 2,994,867
7,986,807
TRANSPORTATION-- 0.1%
5,000,000 Harper Group, Inc. (The),
5.64%, 10/14/97................ 4,966,317
CONTAINERS & PACKAGES-- 0.5%
B.I. Funding, Inc.:
6,200,000 5.52%, 10/8/97.................. 6,164,825
5,000,000 5.54%, 9/10/97.................. 4,993,075
6,200,000 5.55%, 10/16/97................. 6,156,988
17,314,888
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
COMMERCIAL PAPER-- CONTINUED
LEASING-- 1.8%
$13,000,000 JLUS Funding Corp.,
(LOC: Norinchukin Bank)
5.67%, 9/17/97................. $ 12,967,240
Shimizu International Finance,
(LOC: Sanwa Bank):
19,000,000 5.62%, 11/13/97.................. 18,783,474
14,000,000 5.67%, 9/12/97................... 13,975,745
15,000,000 5.72%, 9/12/97................... 14,973,783
60,700,242
TOTAL COMMERCIAL PAPER
(COST $2,683,962,127)..... 2,683,962,127
CORPORATE NOTES-- 5.5%
25,000,000 Abbey National Treasury
Services PLC,
Medium Term Note,
6.19%, 4/7/98.................. 24,990,444
BankBoston, Senior Medium
Term Notes,
25,000,000 5.74%, 4/21/98................... 25,000,000
25,000,000 5.90%, 8/7/98.................... 25,000,000
50,000,000 6.05%, 7/17/98................... 50,000,000
5,000,000 Federal Home Loan Bank,
5.88%, 2/26/98................. 5,000,000
5,000,000 Federal National Mortgage
Association, Notes
5.53%, 2/13/98................... 5,000,000
25,000,000 Morgan Guaranty Trust Company
New York,
5.93%, 8/31/98................. 24,990,469
5,000,000 Northern Trust Company Bank,
Medium Term Note,
5.96%, 6/17/98................. 5,001,062
25,000,000 Student Loan Corp.,
5.76%, 1/14/98................. 25,000,000
TOTAL CORPORATE NOTES
(COST $189,981,975)............ 189,981,975
U.S. GOVERNMENT-- DISCOUNT-- 0.3%
5,000,000 Federal Home Loan Mortgage
Discount Notes,
5.55%, 9/2/97.................. 4,999,241
5,000,000 Federal National Mortgage
Association, Discount Notes,
5.56%, 10/2/97................... 4,976,061
TOTAL U.S. GOVERNMENT-- DISCOUNT
(COST $14,975,302)............. 9,975,302
TAXABLE MUNICIPALS-- 0.2%
(COST $5,900,000)
5,900,000 Brittany Acres, 5,900,000
5.90%, VRDN....................
(CONTINUED)
15
EVERGREEN
MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<CAPTION>
PRINCIPAL
SHARES VALUE
<S> <C>
MUTUAL FUND SHARES-- 0.0%
(COST $1,432,838)
1,432,838 Federated Prime Value
Obligation Fund................ $ 1,432,838
TOTAL INVESTMENTS--
(COST $3,464,439,268)... 100.0% 3,464,439,268
OTHER ASSETS AND
LIABILITIES-- NET...... 0.0 884,598
NET ASSETS--.............. 100.0% $3,465,323,866
</TABLE>
(a) Securities may be sold to "qualified institutional buyers" under Rule 144A
or securities offered pursuant to Section 4(2) of the Securities Act of
1933, as amended. These securities have been determined to be liquid under
guidelines established by the Board of Trustees.
SUMMARY OF ABBREVIATIONS:
LOC Line of Credit
VRDN Variable Rate Demand Notes
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated with
the issuer. Interest rates are determined and reset by the issuer daily, weekly,
or monthly depending upon the terms of the security. Interest rates presented
for these securities are those in effect at August 31, 1997.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
EVERGREEN
PENNSYLVANIA TAX-FREE MONEY MARKET FUND
(EVERGREEN GRAPHIC
GOES HERE)
SCHEDULE OF INVESTMENTS
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPAL SECURITIES-- 99.3%
PENNSYLVANIA-- 98.0%
$1,500,000 Allegheny Cnty. Higher Ed. Bldg.
Auth. RB, Allegheny Cnty. Cmnty.
College, Prerefunded @ 100,
(Ins. by MBIA),
6.65%, 11/1/97................... $ 1,507,446
Allegheny Cnty. Hosp. Dev. Auth.
RB:
1,000,000 Allegheny Gen. Hosp., Ser.
1995B,
(LOC: Morgan Gty. Tr. Co. of NY),
3.25%, VRDN...................... 1,000,000
800,000 Allegheny Health Ed. & Resh.
Corp., Ser. A-ACES,
(LOC: PNC Bk., Pittsburgh),
3.40%, VRDN...................... 800,000
1,100,000 Allegheny Health Ed. & Resh.
Corp., Ser. C-ACES,
(LOC: PNC Bk., Pittsburgh),
3.40%, VRDN...................... 1,100,000
Allegheny Cnty. Hospital
Development Revenue:
405,000 7.75%, 10/1/97..................... 414,394
1,000,000 Prerefunded @ 102,
(COLL: US Govt. Sec.),
7.60%, 10/1/97................... 1,023,145
3,750,000 Allegheny Cnty. IDR,
3.70%, VRDN...................... 3,750,000
Beaver Cnty. IDA-PCR:
300,000 Duquesne Light Co., Beaver
Vly., Ser. A,
(LOC: Barclays Bk. PLC),
3.25%, VRDN...................... 300,000
2,000,000 The Toledo Edison Co.
Mansfield, Ser. 1992E-TECP,
(LOC: Toronto Dominion Bk.),
3.70%, 12/4/97................... 2,000,000
500,000 Berks Cnty. Municipal Auth. RB,
Pooled Fin. Prog., Prerefunded
@100,
(COLL: US Govt. Sec.),
7.00%, 9/1/97.................... 500,000
1,000,000 Bucks Cnty. IDA, USX Corp.
Project, ARB,
(LOC: Wachovia Bk., NC),
3.75%, 1/15/98................... 1,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED
<C> <S> <C>
PENNSYLVANIA-- CONTINUED
$ 100,000 Bucks Cnty. IDA-RRB, SHV Real
Estate, Inc., Ser. 1984,
(LOC: ABN-Amro Bk.),
3.40%, VRDN...................... $ 100,000
1,000,000 Chester Cnty. Hlth. & Ed. Fac.
Auth. RB, Barclays Friends, Ser.
A,
(LOC: Bk. of Ireland),
3.30%, VRDN...................... 1,000,000
435,000 Coudersport School Dist. GO Bds.,
(Ins. by FSA),
3.75%, 9/1/97.................... 435,000
Delaware Cnty. IDA Solid Waste RB,
Scott Paper Co., 1984:
700,000 Ser. C,
3.25%, VRDN...................... 700,000
400,000 Ser. D,
3.25%, VRDN...................... 400,000
2,000,000 Delaware Vly., Registered Financing
Bonds,
(LOC: Credit Suisse),
3.25%, VRDN...................... 2,000,000
1,000,000 Delaware Vly. Regl. Fin. Auth.
Local Govt. RB, Ser. 1985A,
(LOC: Midland Bk. PLC),
3.25%, VRDN...................... 1,000,000
445,000 East Hempfield Township GO Bds.,
(Ins. by AMBAC),
4.25%, 11/1/97................... 445,357
Emmaus Gen. Auth. Local Govt. RB,
Ser. 1989:
1,000,000 (LOC: Midland Bk. PLC)
3.35%, VRDN...................... 1,000,000
3,300,000 (GIC: Goldman Sachs)
3.35%, VRDN........................ 3,300,000
1,400,000 Bd. Pool Program, Subsrs. D-11,
(LOC: Midland Bk. PLC),
3.40%, VRDN...................... 1,400,000
400,000 Bd. Pool Program, Subsrs. E-8,
(LOC: Canadian Imperial Bk.
of Commerce),
3.35%, VRDN...................... 400,000
425,000 Bd. Pool Program, Subsrs. E-9,
(LOC: Midland Bk. PLC),
3.40%, VRDN...................... 425,000
1,400,000 Geisinger Auth. Hlth. Systems
Revenue,
(SPA: Morgan Gty. Tr. Co. of NY),
3.70%, VRDN...................... 1,400,000
</TABLE>
(CONTINUED)
17
<PAGE>
EVERGREEN
PENNSYLVANIA TAX-FREE MONEY MARKET FUND
(Evergreen Graphic Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED
PENNSYLVANIA-- CONTINUED
$1,600,000 Harrisburg Auth. Lease Revenue,
Green County Prison Project,
(COLL: US Govt. Sec),
5.90%, 6/1/98.................... $ 1,622,656
2,000,000 Indiana Cnty. Pennsylvania IDA,
(LOC: UBS),
3.35%, VRDN...................... 2,000,000
500,000 Lancaster School Dist. GO Bds.,
(Ins. by FGIC),
4.00%, 2/15/98................... 500,324
200,000 Lehigh Cnty. IDA-PCRB, Ser. 1985A,
(LOC: Rabobank Nederland),
3.40%, VRDN...................... 200,000
470,000 Lehigh Cnty. Water Auth. RB, Ser.
1984,
(SPA: ABN-Amro Bk.),
3.25%, VRDN...................... 470,000
1,960,000 New Castle Area Hosp. Auth. RB,
Jameson Mem. Hosp.,
(SPA: PNC Bk.),
3.40%, VRDN...................... 1,960,000
North Penn Water Auth. RB,
(Ins. by FGIC)
500,000 6.75%, 11/1/97..................... 512,233
1,000,000 Prerefunded @ 102,
6.90%, 11/1/97................... 1,010,104
1,000,000 Northeastern Hosp. & Ed. Auth.
Rev., Health Care Rev. Wyoming
Vly., Ser. A,
(SPA: Kredeitbank N.V.),
3.30%, VRDN...................... 1,000,000
400,000 Penns Manor Area School Dist.,
(Ins. by MBIA),
6.20%, 9/15/97................... 400,327
2,000,000 Pennsylvania HFA,
4.00%, VRDN*..................... 2,000,000
1,000,000 Pennsylvania Higher Ed. Fac. Auth.
RB, Allegheny Delaware Vly., Ser.
D,
(LOC: PNC Bk., Pittsburgh),
3.30%, VRDN...................... 1,000,000
Pennsylvania Higher Ed. Facs. Auth.
RB:
3,000,000 Allegheny College,
(LOC: Mellon Bk. PLC),
3.30%, VRDN...................... 3,000,000
500,000 The Univ. of Pennsylvania
Health Svs., Ser. 1994B-ACES,
3.20%, VRDN...................... 500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED
PENNSYLVANIA-- CONTINUED
$2,000,000 Pennsylvania St. Higher Education
Standard Loan,
(LOC: SLMA),
3.55%, VRDN...................... $2,000,000
Pennsylvania St. Higher Educational
Revenue:
3,000,000 4.50%, 11/15/97.................... 3,004,989
1,445,000 5.75%, 6/15/98..................... 1,466,857
2,000,000 Philadelphia Pennsylvania Airport
Revenue,
3.55%, VRDN*..................... 2,000,000
2,170,000 Philadelphia Pennsylvania School
District,
(LIQ: Merrill Lynch),
3.35%, VRDN*..................... 2,170,000
2,000,000 Philadelphia TANS, Ser. A,
4.50%, 6/30/98................... 2,007,953
Pittsburgh:
1,500,000 Floating Rate Receipts,
(LOC: Societe Generale),
3.45%, VRDN*..................... 1,500,000
500,000 GO Refunding Bds.,
Prerefunded @ 102,
(Ins. by AMBAC),
6.80%, 9/1/97.................... 510,000
665,000 Pottstown Borough Sewer Auth. RB,
4.00%, 11/1/97................... 665,374
400,000 Sayre Health Care Facs. Auth. RB,
VHA of Pennsylvania, Inc.,
Capital
Asset Fin. Prog., Ser. A,
(SPA: Mellon Bk. PLC),
3.30%, VRDN...................... 400,000
2,200,000 Schuylkill Cnty. IDA, Northeastern
Power Co.,
(LOC: Credit Local de France),
3.75%, VRDN...................... 2,200,000
3,200,000 Schuylkill Cnty. IDA Res. Recovery
RB, Gilberton Pwr.,
(LOC: Mellon Bk. PLC),
3.30%, VRDN...................... 3,200,000
500,000 State Public School Bldg. Auth. RB,
(Ins. by AMBAC),
7.25%, 10/1/97................... 506,382
1,000,000 Temple University Of Commonwealth
of Pennsylvania System,
4.75%, 5/18/98................... 1,005,799
160,000 Upper Merion Township GO Bds.,
3.80%, 11/1/97................... 160,000
66,373,340
<PAGE>
(CONTINUED)
18
EVERGREEN
PENNSYLVANIA TAX-FREE MONEY MARKET FUND
(Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED
PUERTO RICO-- 1.3%
$ 875,000 Puerto Rico Indl. Med. &
Environmental Pollution Control
Facs. Fin. Auth. RB,
4.00%, 12/1/97*.................. $ 875,000
TOTAL SHORT-TERM MUNICIPAL
SECURITIES
(COST $67,248,340)............... 67,248,340
<CAPTION>
SHARES VALUE
<C> <S> <C>
MUTUAL FUND SHARES-- 0.2%
(COST-- $140,000)
140,000 Federated Pennsylvania Municipal
Cash Trust (Institutional Service
Shares).......................... $ 140,000
TOTAL INVESTMENTS--
(COST $67,388,340)........ 99.5% 67,388,340
OTHER ASSETS AND
LIABILITIES-- NET......... 0.5 316,042
NET ASSETS--................ 100.0% $67,704,382
</TABLE>
SUMMARY OF ABBREVIATIONS:
ACES Adjustable Convertible Extendable Securities
AMBAC American Municipal Bond Assurance Corp.
ARB Adjustable Rate Bonds
COLL Collateral
FGIC Financial Guaranty Insurance Co.
FSA Financial Security Assurance Inc.
GIC Guaranteed Investment Contract
GO General Obligations
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
LIQ Liquidity Provider
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
PCRB Pollution Control Revenue Bond
RB Revenue Bonds
RRB Refunding Revenue Bonds
SLMA Student Loan Marketing Association
SPA Securities Purchase Agreement
TANS Tax Anticipation Notes
TECP Tax Exempt Commercial Paper
VHA Veterans' Health Administration
VRDN Variable Rate Demand Notes
Adjustable Rate Bonds are putable back to the issuer or other parties not
affiliated with the issuer at par on the interest reset dates. Interest rates
are determined and set by the issuer quarterly, semi-annually or annually
depending upon the terms of the security. Interest rates presented for these
securities are those in effect at August 31, 1997.
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated with
the issuer. Interest rates are determined and reset by the issuer daily, weekly,
or monthly depending upon the terms of the security. Interest rates presented
for these securities are those in effect at August 31, 1997.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstances, provide for repayment of
principal and interest on the obligation upon demand date, interest rate reset
date or final maturity. These enhancements include: letters of credit; liquidity
guarantees; standby bond purchase agreements; tender option purchase agreements;
and third party insurance (i.e. AMBAC, FGIC and MBIA). Adjustable rate bonds and
variable rate demand notes held in the portfolio may be considered derivative
securities within the standards imposed by the Securities and Exchange
Commission under Rule 2a-7 which were designed to minimize both credit and
market risk.
* Securities may be sold to "qualified institutional buyers" under Rule 144A or
securities offered pursuant to Section 4(2) of the Securities Act of 1933, as
amended. These securities have been determined to be liquid under guidelines
established by the Board of Trustees.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
EVERGREEN
(Evergreen Graphic TAX EXEMPT MONEY MARKET FUND
Goes Here)
SCHEDULE OF INVESTMENTS
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- 99.6%
ALABAMA-- 2.4%
Alabama IDA-IDRB:
$ 2,290,000 Air-Dro Cylinders, Inc.,
(LOC: Southtrust Bank of
Alabama, N.A.),
3.75%, VRDN.................... $ 2,290,000
3,590,000 Automation Technologies Ind.,
Inc., (LOC: Columbus Bank &
Trust Co.),
3.75%, VRDN.................... 3,590,000
Coml. Dev. Auth. of the City of
Birmingham RB:
1,090,000 Avondale Comm. Park, Phase II,
(LOC: Amsouth Bank, N.A.),
3.70%, VRDN.................... 1,090,000
645,000 Southside Business Ctr.,
(LOC: Amsouth Bank, N.A),
3.70%, VRDN.................... 645,000
2,955,000 IDB of Mobile County RB, Sherman
Intl. Corp., Ser. 1994A, (LOC:
Columbus Bank & Trust Co.),
3.75%, VRDN.................... 2,955,000
14,590,000 Mobile Alabama IDB-PCRB,
International Paper Project,
(Gtd. by International Paper),
4.00%, 10/15/97................ 14,590,000
25,160,000
ALASKA-- 2.0%
19,620,000 Alaska State Dept. Admin. COP,
Ser. PT-94, (LIQ: Credit Suisse
First Boston & Ins. by Capital
Mkt. Assuran),
3.50%, VRDN.................... 19,620,000
785,000 Anchorage Alaska Hospital RB,
6.50%, 10/1/97................. 786,457
750,000 Kenai Peninsula Borough Alaska,
GO, (Ins. by AMBAC),
8.20%, 1/1/98.................. 759,937
21,166,394
ARIZONA-- 0.7%
7,500,000 IDA of the City of Glendale RB,
Thunderbird Gardens,
(LOC: Sumitomo Bank, Ltd.),
3.70%, VRDN.................... 7,500,000
200,000 Maricopa County IDA,
McLane Co., Inc., Ser. 1984,
(LOC: Wachovia Bank of
Georgia),
3.80%, VRDN.................... 200,000
7,700,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
CALIFORNIA-- 8.3%
$ 2,535,000 California Statewide Community
Development MHRB, Argis
Pleasant Hill Project,
(LOC: Banque Paribas),
3.65%, VRDN.................... $ 2,535,000
4,250,000 City of Paramount MHRB, Century
Place Apt., Ser. 1989A,
(LOC: Heller Finl. Inc.),
3.99%, VRDN.................... 4,250,000
2,500,000 City of Simi Valley
IDA-IDRB, Wambold Furniture,
Ser. 1984, (LOC: Wells Fargo
Bank, N.A.),
3.90%, VRDN.................... 2,500,000
1,900,000 Glenn County IDA-PCRB,
Land O'Lakes, Inc., Ser. 1995,
(LOC: Sanwa Bank, Ltd.),
3.75%, VRDN.................... 1,900,000
5,000,000 Los Angeles, California MHRB,
Channel Gateway Apts.,
(LOC: Fuji Bank, Ltd.),
3.90%, VRDN.................... 5,000,000
1,100,000 Ontario California IDA, Erenberg
Bros. Project,
(LOC: Tokai Bank, Ltd.),
3.95%, VRDN.................... 1,100,000
12,200,000 Orange County California
Apartment Development ARB,
(Villas De La Paz), Issue O,
(LOC: Tokai Bank, Ltd.),
4.35%, 8/15/98................. 12,200,000
5,000,000 Orange County California
Apartment Development ARB,
(Villas Aliento Project), Issue
R,
(LOC: Tokai Bank, Ltd.),
4.35%, 8/15/98................. 5,000,000
Pitney Bowes Corp. Leasetops
Trs.:
23,670,645 Bart Telesystem Lease, (LOC:
ABN-Amro Bank, N.V.),
3.65%, VRDN*................... 23,670,645
12,930,099 San Diego Regl. Comm. Sys.
Lease, Ser. 1996A,
(LOC: Landesbank Hessen & Ins.
by Pitney Bowes),
3.65%, VRDN*................... 12,930,099
15,375,000 San Bernardino County COP Medical
Center Financing Project, Ser.
1995, (LIQ: Merrill Lynch &
Ins. by MBIA),
3.60%, VRDN.................... 15,375,000
86,460,744
</TABLE>
(CONTINUED)
20
<PAGE>
EVERGREEN
TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
COLORADO-- 1.3%
$ 2,500,000 Adams County IDRB, Yellow Freight
Sys., Inc., Ser. 1983, (LOC:
Union Bank of Switzerland),
3.70%, VRDN.................... $ 2,500,000
1,100,000 Arapahoe County MHRB,
Stratford Sta., Ser. 1994,
(LOC: Heller Finl., Inc.),
4.15%, VRDN.................... 1,100,000
4,760,000 Colorado HFA RB MERLOTS, Ser.
C-ARB, (LIQ: Corestates Bank,
N.A.),
4.15%, 11/1/97................. 4,760,000
3,000,000 Dove Valley Metropolitan District
Arapahoe County GO, Ser.
1996C-ARB, (LOC: Dai-Ichi
Kangyo Bank, Ltd.),
4.15%, 11/1/97................. 3,000,000
2,680,000 Parkview Met. District Arapahoe
County GO, Ser. 1993,
(LIQ: Colorado National Bank),
3.60%, VRDN.................... 2,680,000
14,040,000
DELAWARE-- 0.7%
3,000,000 Delaware EDA-IDRB, Arlon, Inc.,
Ser. 1989, (LOC: Bank of
America, IL),
3.85%, VRDN.................... 3,000,000
1,640,000 Delaware Hsg. Auth. RB MERLOTS,
Ser. G ARB,
(LIQ: Corestates Bank, N.A. &
Ins. by FGIC),
4.20%, 9/1/97.................. 1,640,000
2,480,000 New Castle County EDRB,
Toys R Us, (LOC: Bankers Trust
Co., NY),
3.60%, VRDN.................... 2,480,000
7,120,000
DISTRICT OF COLUMBIA-- 1.4%
500,000 District of Columbia, GO Series
A,
(Ins. by AMBAC),
7.25%, 6/1/98.................. 511,799
5,120,000 District of Columbia GO Ref.,
Puttable Floating Opt. Tax-
Exempt Rcpt., Ser. PA-64, Ser.
1993C, (LIQ: Merrill Lynch &
Ins. by FGIC),
3.60%, VRDN.................... 5,120,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
DISTRICT OF COLUMBIA-- CONTINUED
$ 4,500,000 District of Columbia Hsg. Fin.
Agy. Single Family Mortgage RB,
Series 1997C-ARB,
(COLL: GNMA),
4.05%, 9/1/98.................. $ 4,500,000
5,000,000 District of Columbia Hsg. Fin.
Agy., Single Family Mortgage
RB, Ser. 1996 C-ARB,
(Invest. Agreement: Trinity
Funding Corp.),
3.90%, 12/1/97................. 5,000,000
15,131,799
FLORIDA-- 1.9%
2,800,000 Orange County HFA MHRB, Oakwood
Project, Ser. E,
(LOC: Fleet Bank, N.A.),
4.15%, 10/1/97................. 2,800,000
955,000 Palm Beach County Hsg. RB,
Meridian Hsg., Ser. 1985,
(LOC: Union Bank of California,
N.A.),
4.33%, VRDN.................... 955,000
5,875,000 Palm Beach County School Board,
MSTR Ser. 1996B,
(LIQ: Norwest Bank, MN
& Ins. by AMBAC),
3.55%, VRDN.................... 5,875,000
9,900,000 Tampa Florida Capital Improvement
Program RB Puttable Floating
Trust Rcpt. PT-96, (LOC:
Rabobank Nederland N.V.; LIQ:
Bayerische Hypotheken-und and
Wechsel-Bank AG),
3.60%, 9/4/97.................. 9,900,000
19,530,000
GEORGIA-- 1.4%
1,000,000 Albany Dougherty County Hosp. RB,
Ser. 1984A,
(Gtd. by Merck & Co.),
3.85%, VRDN.................... 1,000,000
5,000,000 Albany Dougherty Payroll Series
1982A, (Gtd. by Merck & Co.),
3.60%, VRDN.................... 5,000,000
6,000,000 Polk County Dev. Auth. RB, Kimoto
Tech. Inc., Ser. 1985,
(LOC: Indl. Bank of Japan,
Ltd.),
3.85%, VRDN.................... 6,000,000
</TABLE>
(CONTINUED)
21
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(Evergreen Graphic TAX EXEMPT MONEY MARKET FUND
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
GEORGIA-- CONTINUED
$ 2,200,000 Columbus Hsg. Auth. MHRB Ref.,
Quail Ridge Project, Ser. 1988,
(LOC: Columbus Bank & Trust
Co.),
3.75%, VRDN.................... $ 2,200,000
14,200,000
ILLINOIS-- 13.7%
2,820,000 Arlington Heights Illinois MHRB,
(LOC: Heller Finl., Inc.),
3.90%, VRDN.................... 2,820,000
14,850,000 Chicago Illinois Board of
Education Return Bonds, MERLOTS
(LIQ: Corestates Bank, N.A. &
Ins. by AMBAC),
3.61%, VRDN.................... 15,323,574
1,700,000 Chicago IDR,
Federal Marine Terminal
Project,
(LOC: Canadian Imperial Bank of
Commerce),
3.70%, VRDN.................... 1,700,000
9,670,000 City of Aurora MHRB, Fox Vly Vlg.
Apts, Ser. 1993,
(LOC: Sumitomo Bank, Ltd.),
3.65%, VRDN.................... 9,670,000
2,900,000 City of Chicago GO, MSTR SAK-13,
Series 1995A-2,
(LIQ: Credit Suisse First
Boston & Ins. by AMBAC),
3.55%, VRDN.................... 2,900,000
29,000,000 City of Oakbrook Terrace MHRB,
Renaissance, Ser. 1985A-ARB,
(LOC: Bayerische Landesbank,
Girozentrale),
4.90%, VRDN.................... 29,000,000
4,000,000 City of Peoria Solid Waste
Disposal RB, PMP Fermentation
Products,
Inc., Ser. 1996, (LOC: Sanwa
Bank, Ltd.),
3.80%, VRDN.................... 4,000,000
5,900,000 City of West Chicago IDRB, Acme
Printing Inc., Ser. 1989,
(LOC: Bank of Tokyo-Mitsubishi,
Ltd.),
3.975%, VRDN................... 5,900,000
4,500,000 Crawford County Illinois
Manufacturing Facilities RB,
Fair-Rite Prdts. Corp., (LOC:
Corestates Bank, N.A.),
3.65%, VRDN.................... 4,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
ILLINOIS-- CONTINUED
$ 3,500,000 Illinois Dev. Fin. Auth. EDRB,
MTI Corp.,
(LOC: Indl. Bank of Japan,
Ltd.),
4.10%, VRDN.................... $ 3,500,000
6,800,000 Illinois Dev. Fin. Auth. RB, Gen.
Accident Ins. Co., Ser. 1985-
ARB, (Gtd. by Gen. Accident
Ins. Co. of Amer.),
3.70%, 9/1/97.................. 6,800,000
3,500,000 Illinois Dev. Fin. Auth. RB,
Decatur Mental Health Ctr.
(LOC: First of America, IL),
3.50%, VRDN.................... 3,500,000
3,500,000 Illinois Ed. Fac. Auth. RB,
Cultural Pooled Financing
Program,
(LOC: First National Bank of
Chicago, Inc.)
3.35%, VRDN.................... 3,500,000
6,566,021 Lasalle Natl. Bank Leasetops
Trs.,
Ser. 1995A,
(LIQ: LaSalle National Bank),
3.65%, VRDN*................... 6,566,021
16,640,000 Village of Hazel Crest Retirement
Ctr. RB, Waterford Estates,
Ser. 1992A,
(LOC: Sumitomo Bank, Ltd.),
3.65%, VRDN.................... 16,640,000
10,000,000 Village of Schaumburg MHRB,
Treehouse II Apt., Ser. 1989,
(LOC: Sumitomo Bank, Ltd.),
3.65%, VRDN.................... 10,000,000
2,000,000 Village of Skokie EDRB, Skokie
Fashion Square Assn., Ser.
1984, (LOC: LaSalle National
Bank),
3.725%, VRDN................... 2,000,000
15,210,000 Village of Vernon Hills MHRB,
Hawthorn Lakes, Ser. 1991,
(LIQ: Fuji Bank, Ltd. & Ins. by
FSA),
3.80%, VRDN.................... 15,210,000
143,529,595
INDIANA-- 1.6%
6,500,000 Avilla EDRB, Pent Assemblies
Inc., Ser. 1996-ARB, (LOC: Fort
Wayne National Bank),
4.35%, 2/1/98.................. 6,500,000
7,600,000 City of Fort Wayne PCRB, Gen.
Mtrs. Corp.,
(Gtd. by Gen. Mtrs. Corp.),
3.55%, VRDN.................... 7,600,000
</TABLE>
(CONTINUED)
22
<PAGE>
EVERGREEN
TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
INDIANA-- CONTINUED
$ 2,000,000 City of South Bend MHRB, Maple
Lane Assn., Ser. 1987,
(LOC: FHLB of Indianapolis),
3.60%, VRDN.................... $ 2,000,000
925,000 Decatur Indl. EDA-RB, Silberline
Mfg. Co. Inc., (LOC: Corestates
Bank, N.A.),
4.30%, 12/1/97................. 925,000
17,025,000
IOWA-- 1.3%
3,800,000 Algona IDR, George A.
Hormel & Co.,
(LOC: Sumitomo Bank Ltd.),
3.75%, VRDN.................... 3,800,000
City of Council Bluffs RB,
Catholic
Hlth. Corp.:
2,240,000 Mercy Hospital Project
4.00%, 10/1/97................. 2,240,000
7,025,000 Ser. 1985, Mercy Hospital Project
(LOC: Fuji Bank, Ltd.),
4.00%, 10/1/97................. 7,025,000
13,065,000
KANSAS-- 0.4%
540,000 City of Manhattan Tax Increment
RRB, Central Business Dist. Tax
Increment Redev., Ser. 1996A,
(Ins. by Asset Guaranty),
4.10%, 12/1/97................. 540,000
1,800,000 City of Prairie Village MHRB,
J.C.
Nichol's Co., Ser. 1985,
(Gtd. by Principal Mutual Life
Ins. Co.),
4.00%, VRDN.................... 1,800,000
City of Salina RB (Salina Central
Mall L.P.), Ser. 1984, (LOC:
National Bank of St. Louis):
1,200,000 Dillard's,
3.60%, VRDN.................... 1,200,000
1,105,000 Penny's,
3.60%, VRDN.................... 1,105,000
4,645,000
KENTUCKY-- 1.9%
20,300,000 County of Ohio PCRB, Big Rivers
Elec. Corp., Ser. 1985,
(LOC: Chemical Bank),
3.95%, VRDN.................... 20,300,000
LOUISIANA-- 0.6%
3,400,000 Bastrop IDB-PCRB,
International Paper Project,
ARB,
(Gtd. by International Paper),
4.00%, 10/15/97................ 3,400,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
LOUISIANA-- CONTINUED
$ 3,050,000 IDB of the Parish of Bossier,
Inc., H. J. Wilson Co., Inc.,
Ser. 1982-ARB,
(LIQ: Canadian
Imperial Bank of Commerce),
4.00%, 12/1/97................. $ 3,050,000
6,450,000
MAINE-- 0.4%
3,685,000 Jay Solid Waste Disposal RB,
International Paper Project
ARB,
(Gtd. by International Paper),
4.20%, 6/1/98.................. 3,685,000
MASSACHUSETTS-- 0.2%
400,000 Massachusetts Indl. Finl. Agy.,
Copley Pharmacy,
(LOC: First National Bank of
Boston),
4.58%, VRDN.................... 400,000
600,000 Massachusetts Indl. Finl. Auth.
IDRB, Leavy Realty & Jen-coat
Metal, Ser. 1994, (LOC: First
National Bank of Boston),
4.33%, VRDN.................... 600,000
700,000 Massachusetts Indl. Finl. Auth.
IDRB, Portland Causeway Rlty.,
Ser. 1988,
(LOC: Citibank, N.A.),
4.33%, VRDN.................... 700,000
1,700,000
MICHIGAN-- 0.4%
4,315,000.. Sault Ste. Marie Tribe Bldg.
Auth. RB, Ser. 1996A ARB, (LOC:
First of America Bank, N.A.),
4.42%, 12/1/97................. 4,315,000
MINNESOTA-- 8.0%
27,135,000 Capital Investors Tax Exempt Fund
Ltd., Partnership, Ser. 1996-5,
(LOC: Swiss Bank Corp.),
3.60%, VRDN.................... 27,135,000
14,905,000 City of Eden Prairie MHRB, Park
at City West Apt., Ser. 1990,
(LOC: Sumitomo Bank, Ltd.),
3.65%, VRDN.................... 14,905,000
2,300,000 City of Robbinsdale IDR, Unicare
Homes, Inc., Ser. 1984,
(LOC: Banque Paribas),
3.60%, VRDN.................... 2,300,000
4,420,000 Dakota & Washington Counties Hsg.
& Redev. Auth., ARB MERLOTS,
Ser. J,
(LOC: Corestates Bank, N.A.),
4.20%, 9/1/97.................. 4,420,000
</TABLE>
(CONTINUED)
23
<PAGE>
EVERGREEN
(Evergreen Graphic TAX EXEMPT MONEY MARKET FUND
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
MINNESOTA-- CONTINUED
$ 4,220,000 Minneapolis GO Sports Arena, MSTR
Ser. 1996A,
(LIQ: Norwest Bank, MN),
3.55%, VRDN.................... $ 4,220,000
765,000 Minneapolis/St. Paul Hsg. Fin.
Bd. RB, Minneapolis/Saint Paul
Fam. Hsg. Prog., Phase VI, ARB,
(COLL: GNMA),
4.00%, 11/1/97................. 765,000
1,960,000 Plymouth, Minnesota MHRB, At-
the-Lakes Apts., (LOC: FNMA),
3.70%, VRDN.................... 1,960,000
1,510,000 Richfield Independent School
District #280, MSTR Ser. 1994P,
(LIQ: First Bank, N.A. & Ins.
by FGIC),
3.55%, VRDN.................... 1,510,000
750,000 Southern Minnesota Muni. Pwr.
Agy. Supply Sys., MSTR Ser.
1996I, (LIQ: Norwest Bank, MN &
Ins. by FGIC),
3.55%, VRDN.................... 750,000
1,000,000 Spring Lake Park ISD No. 16, MSTR
Ser. 1996G,
(LIQ: Norwest Bank, MN & Ins.
by MBIA),
3.55%, VRDN.................... 1,000,000
24,200,000 St. Louis Park Hlth. Care Fac. RB
Fltg. Tr. Cert., (LIQ: Norwest
Bank, MN & Ins. by AMBAC),
3.55%, VRDN.................... 24,200,000
83,165,000
MISSOURI-- 0.4%
4,330,000 Missouri Dev. Fin. Bd. IDRB,
Cook Composites & Polymers
Co., Ser. 1994,
(LOC: Societe Generale),
3.80%, VRDN.................... 4,330,000
MONTANA-- 0.1%
710,000 Butte Silver Bow City & County,
Copper City Assn., Ser. 1988,
(LOC: Bank of America, N.T. &
S.A.),
3.55%, VRDN.................... 710,000
NEBRASKA-- 0.4%
4,200,000 Lancaster County IDRB, Mid-
America, Inc., Ser. 1994,
(LOC: Heller Finl., Inc.),
3.90%, VRDN.................... 4,200,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
NEW JERSEY-- 4.1%
County of Essex, BAN,
$ 5,000,000 Ser. 1997A 4.25%, 8/7/98......... $ 5,013,880
15,000,000 Ser. 1996A 4.50%, 9/17/97........ 15,002,836
4,220,000 Jersey City, Refunding Notes,
Real Property Tax Appeals,
4.13%, 1/16/98................. 4,221,880
10,000,000 Jersey City, BAN,
4.75%, 9/26/97................. 10,004,601
8,140,000 Jersey City, Refunding Notes,
4.30%, 9/26/97................. 8,139,181
42,382,378
NEW MEXICO-- 0.5%
4,855,000 County of Sandoval MHRB,
Arrowhead Ridge Apts., Ser.
1996-ARB, (FGIC),
4.65%, 12/31/97................ 4,855,000
NEW YORK-- 9.0%
Battery Park City Auth. Hsg. RB,
Marina Towers Tender Corp.,
(LOC: Sumitomo Bank Ltd.):
8,560,000 Ser. A,
3.85%, VRDN.................... 8,560,000
7,765,000 Ser. B,
3.85%, VRDN.................... 7,765,000
26,200,000 New York City Municipal Wtr. Fin.
Auth., Wtr. & Swr. RB (LOC:
Societe General & Ins. by
MBIA),
3.45%, VRDN.................... 26,200,000
32,600,000 New York City GO, Series L,
(LIQ: Merrill Lynch),
3.50%, VRDN.................... 32,600,000
10,100,000 New York State Med. Care Fac.
Finance Agency RB, Fltg-Rate
Rcpts. PT-100, (LIQ: Credit
Suisse & Ins. by FHA),
4.00%, VRDN.................... 10,100,000
8,305,000 New York State Thruway Auth.
General RB, MSTR-SG119, (LIQ:
Societe Generale),
3.80%, VRDN.................... 8,305,000
93,530,000
NORTH CAROLINA-- 0.7%
3,600,000 Cabarrus County Indl. Fac. PCRB,
Oiles America Corp., Ser. 1989,
(LOC: Indl. Bank of Japan,
Ltd., NY),
4.00%, VRDN.................... 3,600,000
</TABLE>
(CONTINUED)
24
<PAGE>
EVERGREEN
TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
NORTH CAROLINA-- CONTINUED
$ 3,000,000 Guilford County Indl. Fac.
PCRB Sewage Disp., High Pt.
Chem., Ser. 1994, (LOC:
Sumitomo Bank, Ltd., NY),
3.70%, VRDN.................... $ 3,000,000
470,000 NCNB Pooled Tax-Exempt Tr. COP,
Ser. 1990A,
(LOC: NationsBank, N.A.),
4.25%, VRDN.................... 470,000
7,070,000
OHIO-- 0.4%
Ohio Hsg. Fin. Agy. MHRB:
Pine Crossing Project, (LOC:
Sumitomo Bank, Ltd.),
1,130,000 3.85%, VRDN...................... 1,130,000
3,000,000 10 Wilmington Place, Ser. 1991B,
(LIQ: Fuji Bank, Ltd. & Ins. by
FSA),
3.80%, VRDN.................... 3,000,000
4,130,000
OREGON-- 0.4%
Oregon EDRB Series CLVI:
(LOC: Union Bank of California,
N.A.),
1,830,000 Pacific Coast Seafoods Co.,
3.75%, VRDN.................... 1,830,000
1,130,000 Pacific Oyster Co.,
3.75%, VRDN.................... 1,130,000
1,200,000 Oregon State EDRB; Georgia-
Pacific Corp., 95A Project,
(LOC: Deutsche Genossen-
schaftshank),
3.65%, VRDN.................... 1,200,000
4,160,000
PENNSYLVANIA-- 5.2%
2,400,000 Chartiers Valley Industrial and
Commercial Dev. Auth., William
Penn Place Project,
(LOC: Corestates Bank, N.A.),
4.10%, VRDN.................... 2,400,000
2,855,000 Chester County IDA Mfg. Fac. RB,
Devault Packing Co., Inc.,
Ser. 1995,
(LOC: Corestates Bank, N.A.),
3.65%, VRDN.................... 2,855,000
8,100,000 City of Philadelphia GO,
Ser. 1990 TECP,
(LOC: Fuji Bank, Ltd. NY),
3.90%, 9/15/97................. 8,100,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
PENNSYLVANIA-- CONTINUED
$10,000,000 City of Philadelphia Water and
Waste Water Rev., MSTR
#11 ARB,
(LIQ: Bear Stearns Capital
Markets & Ins. by FGIC),
4.15%, 6/4/98*................. $ 10,000,000
500,000 Elk County IDA-IDRB Ref.,
Stackpole Corp. Project,
Ser. 1989,
(LOC: Fleet Bank, N.A.),
4.33%, VRDN.................... 500,000
650,000 Lawrence County IDA-PCRB, Calgon
Carbon, Ser. 1983A,
(Gtd. by Merck & Co.),
3.85%, VRDN.................... 650,000
1,990,000 Monroe County IDA-RB, United
Steel, Ser. A,
(LOC: Corestates Bank, N.A.),
3.65%, VRDN.................... 1,990,000
1,200,000 Montgomery County IDA-RB, Laneko
Engineering Co.,
Ser. 1995,
(LOC: Corestates Bank, N.A.),
3.65%, VRDN.................... 1,200,000
13,250,000 Montgomery County PA Higher Ed.
and Hlth Auth. RB, Higher
Education on Health Loan, (LOC:
Dauphin Deposit Bank & Trust),
3.50%, VRDN.................... 13,250,000
1,000,000 Montgomery County Series A
IDA-RB, Noesc Tech. Inc.,
(LOC: Corestates Bank, N.A.),
3.65%, VRDN.................... 1,000,000
1,235,000 Pennsylvania Econ. Dev. Fin.
Auth. RB, C.F. Martin & Co.,
Inc., Ser. H, (LOC: Corestates
Bank, N.A.),
3.65%, VRDN.................... 1,235,000
3,460,000 Pennsylvania Hsg. Fin. Agy.
MERLOTS, Ser. I-ARB,
(LOC: Corestates Bank, N.A.),
4.125%, 10/1/97................ 3,460,000
920,000 Reading School District GO,
Ser. 1997,
3.95%, 1/15/98................. 920,315
2,000,000 Schuylkill County IDA-RB, Craftex
Mills, Inc.,
(LOC: Corestates Bank, N.A.),
3.65%, VRDN.................... 2,000,000
1,945,000 West Cornwall Twp. Muni. Auth.
RB, Lebanon Valley Brethren
Home, Ser. 1995,
(LOC: Corestates Bank, N.A.),
3.60%, VRDN.................... 1,945,000
</TABLE>
(CONTINUED)
25
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EVERGREEN
(Evergreen Graphic TAX EXEMPT MONEY MARKET FUND
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
PENNSYLVANIA-- CONTINUED
$ 3,065,000 Westmoreland County IDA-IDRB,
White Consolidated Ind., Inc.,
ARB,
(LOC: Bank of Nova Scotia),
4.35%, 12/1/97................. $ 3,067,957
54,573,272
SOUTH CAROLINA-- 2.3%
3,500,000 Darlington County IDA-IDRB,
Hobert Corp., Ser. 1995,
(LOC: Fuji Bank, Ltd.),
3.85%, VRDN.................... 3,500,000
Georgetown County SC, PCRB,
International Paper Project,
ARB,
(Gtd. by International Paper):
4,780,000 4.00%, 9/1/97.................... 4,780,000
11,250,000 4.00%, 9/1/98.................... 11,250,000
950,000 South Carolina Jobs EDA Hosp.
Facs. RB, Beloit Corp.,
(LOC: Cr. Coml. de France),
3.85%, VRDN.................... 950,000
South Carolina Jobs EDA-EDRB:
600,000 Ridge Pallets, Ser. B,
(LOC: Cr. Coml. de France),
3.85%, VRDN.................... 600,000
2,700,000 Roller Bearing Co., Ser. 1994A,
(LOC: Heller Finl. Inc.),
4.10%, VRDN.................... 2,700,000
750,000 Tuttle Co., Inc., Ser. A,
(LOC: NationsBank, N.A.),
3.85%, VRDN.................... 750,000
24,530,000
SOUTH DAKOTA-- 0.5%
5,285,000 Rapid City EDRB, Civic Center
Assoc.,
(LOC: CitiBank, N.A.),
3.65%, VRDN.................... 5,285,000
400,000 South Dakota EDA-RB, Lumar
Development Co.,
(LOC: First Bank, N.A.),
3.65%, VRDN.................... 400,000
5,685,000
TENNESSEE-- 6.1%
2,600,000 Bristol IDB, Robinette Co., (LOC:
First American Nat'l Bank),
3.80%, VRDN.................... 2,600,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
TENNESSEE-- CONTINUED
IDB of Met. Govt. of Nashville &
Davidson County, Ser. 1989:
(LOC: Sumitomo Bank Ltd.),
$ 8,995,000 Beechwood Terrace Apts.,
3.65%, VRDN.................... $ 8,995,000
4,680,000 Belle Valley,
3.65%, VRDN.................... 4,680,000
6,710,000 Graybrook Apts.,
3.65%, VRDN.................... 6,710,000
3,200,000 IDB of the City Chattanooga RRB,
Radisson Read House, Ser. 1995,
(LOC: Heller Finl. Inc.),
4.20%, VRDN.................... 3,200,000
5,000,000 IDB of the City of Morristown
IDRB, Camvac Intl., Inc., Ser.
1983, (LOC: ABN Amro Bank),
3.725%, VRDN................... 5,000,000
4,400,000 Jackson Tennessee Hlth. and Ed.
Hsg. Fac. RB, Union University,
(LOC: First American Nat'l
Bank),
3.65%, VRDN.................... 4,400,000
10,000,000 Johnson City Sales Tax RB, MSTR-
SGAYS, (LOC: Societe Generale &
Ins. by FGIC),
3.50%, VRDN.................... 10,000,000
5,000,000 Maryville IDB of Ed., RB,
Maryville College (LOC: First
American
Nat'l Bank),
3.65%, VRDN.................... 5,000,000
700,000 Metro Government Nashville &
Davidson County IDRB,
(LOC: First Bank, N.A.),
3.75%, VRDN.................... 700,000
500,000 Shelby County Tennessee Hlth.,
Ed. and Hsg., MHRB, 99 Tower
Place, (LOC: Boatman's Bank,
St. Louis, MO),
4.05%, VRDN.................... 500,000
4,285,000 Smyrna Hsg. Assn. MHRB,
Imperial Gardens Apts., Ser.
1989,
(LOC: Sumitomo Bank, Ltd.),
3.65%, VRDN.................... 4,285,000
8,000,000 Wilson County, Knight Leasing
Co., IDRB, (LOC: First American
Nat'l Bank),
3.80%, VRDN.................... 8,000,000
64,070,000
</TABLE>
(CONTINUED)
26
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EVERGREEN
TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
TEXAS-- 7.1%
$10,890,000 Aldine Independent School
District, MSTR SGB30
(LOC: Societe Gen'l & Gtd. by
Permanent School Fund),
3.40%, VRDN.................... $ 10,890,000
2,900,000 Dallas Indl. Dev. Corp. RB, Crane
Plumbing Project,
3.85%, VRDN.................... 2,900,000
4,000,000 Dallas Independent School
District, MSTR#6, Class A-ARB,
(LIQ: Credit Suisse & Gtd. by
Permanent School Fund),
4.00%, 12/8/97*................ 4,000,000
5,985,000 Galveston Hsg. Fin. Corp. MHRB
Ref., Village by the Sea Apt.,
Ser. 1993, (LIQ: Sumitomo Bank,
Ltd. & Ins. by FHA),
3.60%, VRDN.................... 5,985,000
7,005,000 NCNB Pooled Tax-Exempt Tr. COP,
Ser. 1990B,
(LOC: NationsBank of Texas),
4.25%, VRDN.................... 7,005,000
4,000,000 Port of Corpus Christi Auth.
Nueces County RRB, Union
Pacific Corp., Ser. 1989 TECP,
(Gtd. by Union Pacific Corp.),
4.00%, 12/19/97................ 4,000,000
34,825,000 San Antonio Electric and Gas RB,
MSTR SG104
(LIQ: Societe Generale),
3.55%, VRDN.................... 34,825,000
4,380,000 Tarrant County Hsg. Fin. Corp.
MHRB Ref., Lincoln Meadows
Project, Ser. 1988 ARB, (Surety
Bond: Continental Casualty
Corp.),
4.10%, 12/1/97................. 4,379,879
73,984,879
UTAH-- 5.4%
2,700,000 Summit County IDRB, Hornes'
Kimball Junction L.P.,
Ser. 1985,
(LOC: West One Bank, Idaho),
3.85%, VRDN.................... 2,700,000
Tooele County Hazardous Waste
Treatment RB, Union Pacific
Corp., Ser. A, TECP,
(Gtd. by Union Pacific Corp.):
10,000,000 4.00%, 11/24/97.................. 10,000,000
10,000,000 4.00%, 11/25/97.................. 10,000,000
17,500,000 4.10%, 10/23/97.................. 17,500,000
10,000,000 4.15%, 9/10/97................... 10,000,000
6,290,000 4.15%, 9/15/97................... 6,290,000
56,490,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
VERMONT-- 0.2%
$ 2,000,000 Burlington Wastewater Revenue
TRANS,
5.60%, 1/30/98................. $ 2,012,867
VIRGINIA-- 0.9%
2,900,000 Henrico County IDA RB, San-J,
(LOC: Tokai Bank, Ltd.),
3.85%, VRDN.................... 2,900,000
5,000,000 Richmond County Indl. Fac. PCRB,
Cogentrix of Richmond,
(LOC: Banque Paribas),
4.10%, VRDN.................... 5,000,000
1,000,000 Rockingham County IDA-PCRB, Merck
& Co., Inc., Ser. 1983A, (Gtd.
by Merck & Co.),
3.60%, VRDN.................... 1,000,000
8,900,000
WASHINGTON-- 1.5%
2,200,000 Klickitat County Pub. Corp. RB,
Mercer Ranches, Ser. 1996,
(LOC: U.S. Bank of Washington,
N.A.),
3.90%, VRDN.................... 2,200,000
2,000,000 Pierce County Econ. Dev. Corp.,
McFarland Cascade, (LOC: U.S.
Bank of Washington, N.A.),
3.90%, VRDN.................... 2,000,000
Pilchuck Dev. Pub. Corp. IDRB,
(LOC: U.S. Bank of Washington,
N.A.):
1,318,000 Canyon Park Assn., -Lot 12,
3.80%, VRDN.................... 1,318,000
966,000 Hillside Assn., -Lot 6,
3.80%, VRDN.................... 966,000
1,218,000 Omni Assn., -Lot 7,
3.80%, VRDN.................... 1,218,000
7,950,000 Romac Industries, Inc.,
Ser. 1995,
(LOC: Union Bank of California,
N.A.),
3.60%, VRDN.................... 7,950,000
15,652,000
OTHER-- 5.8%
14,900,000 Capital Investors Tax Exempt
Fund,
Ltd. Partnership, Series
1996-Z, (LOC: Swiss Bank
Corp.),
3.60%, VRDN.................... 14,900,000
4,500,000 Puttable Floating Option Tax
Exempt Receipts, PPT-6,
(LOC: Credit Suisse),
3.95%, VRDN.................... 4,500,000
</TABLE>
(CONTINUED)
27
<PAGE>
EVERGREEN
(Evergreen Graphic TAX EXEMPT MONEY MARKET FUND
Goes Here)
SCHEDULE OF INVESTMENTS
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM INVESTMENTS-- CONTINUED
OTHER-- CONTINUED
$19,790,000 Puttable Floating Option Tax
Exempt Receipts, PPT-7,
(LOC: Credit Suisse),
3.95%, VRDN.................... $ 19,790,000
2,395,000 Puttable Floating Option Tax
Exempt Receipts, PPT-4,
(Ins. by AMBAC),
3.90%, VRDN.................... 2,395,000
9,210,000 Puttable Floating Option Tax
Exempt Receipts, Koch Financial
Corp.,
(LIQ: Credit Suisse & Ins. by
AMBAC),
3.50%, VRDN.................... 9,210,000
5,035,000 Puttable Floating Option Tax
Exempt Receipts, PPT-5, (LIQ:
Credit Suisse & Ins. by FHA),
3.50%, VRDN.................... 5,035,000
4,554,855 Tax Exempt Private Municipal
Trust, Koch Financial Corp.,
Series 1997-1 Tax-Exempt Lease
Certificate Traunche A,
4.10%, 5/6/98*................. 4,554,855
60,384,855
TOTAL INVESTMENTS--
(COST $1,040,038,783).. 99.6% 1,040,038,783
OTHER ASSETS AND
LIABILITIES-- NET...... 0.4 4,387,431
NET ASSETS--............. 100.0% $1,044,426,214
</TABLE>
SUMMARY OF ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corp.
ARB Adjustable Rate Bonds
BAN Bond Anticipation Note
COLL Collateral
COP Certificates of Participation
EDA Economic Development Authority
EDRB Economic Development Revenue Bond
FGIC Financial Guaranty Insurance Co.
FHA Federal Housing Authority
FHLB Federal Home Loan Bank
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Inc.
GIC Guaranteed Investment Contract
GNMA Government National Mortgage Association
GO General Obligations
HFA Housing Finance Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
IDRB Industrial Development Revenue Bond
ISD Independent School District
LIQ Liquidity Provider
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
MERLOTS Municipal Exempt Receipts Liquidity Option
Tenders
MHRB Multifamily Housing Revenue Bond
MSTR Municipal Securities Trust Receipt
PCRB Pollution Control Revenue Bond
RB Revenue Bonds
RRB Refunding Revenue Bonds
TECP Tax Exempt Commercial Paper
TRANS Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
* Securities may be sold to "qualified institutional buyers" under Rule 144A or
securities offered pursuant to Section 4(2) of the Securities Act of 1933, as
amended. These securities have been determined to be liquid under guidelines
established by the Board of Trustees.
Adjustable Rate Bonds are puttable back to the issuer or other parties not
affiliated with the issuer at par on the interest reset dates. Interest rates
are determined and set by the issuer quarterly, semi-annually or annually
depending upon the terms of the security. Interest rates and reset dates
presented for these securities are those in effect at August 31, 1997.
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated with
the issuer. Interest rates are determined and reset by the issuer daily, weekly,
or monthly depending upon the terms of the security. Interest rates presented
for these securities are those in effect at August 31, 1997.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstances, provide for repayment of
principal and interest on the obligation upon demand date, interest rate reset
date or final maturity. These enhancements include: letters of credit, liquidity
guarantees, standby bond purchase agreements, tender option purchase agreements,
and third party insurance (i.e. AMBAC, FGIC and MBIA). Adjustable rate bonds and
variable rate demand notes held in the portfolio may be considered derivative
securities within the standards imposed by the Securities and Exchange
Commission under Rule 2a-7 which were designed to minimize both credit and
market risk.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
EVERGREEN
TREASURY MONEY MARKET FUND (Evergreen Graphic
Goes Here)
SCHEDULE OF INVESTMENTS
August 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
UNITED STATES TREASURY NOTES-- 31.8%
$110,000,000 6.00%, 9/2/97***.............. $ 110,000,000
185,000,000 5.75%, 9/30/97***............. 185,024,352
50,000,000 5.75%, 10/31/97............... 50,009,276
75,000,000 6.00%, 11/30/97............... 75,023,570
175,000,000 5.25%, 12/31/97***............ 174,828,048
75,000,000 6.125%, 3/31/98............... 75,140,658
50,000,000 5.875%, 4/30/98............... 49,994,621
135,000,000 6.25%, 6/30/98................ 135,548,782
110,000,000 4.75%-- 6.125%, 8/31/98....... 109,666,028
TOTAL UNITED STATES TREASURY
NOTES
(COST $965,235,335)......... 965,235,335
REPURCHASE AGREEMENTS*-- 82.0%
19,136,406 Aubrey G. Lanston,
5.55%, dated 8/29/97, due
9/2/97 (1).................. 19,136,406
90,000,000 Barclays Bank, PLC,
5.56%, dated 8/29/97,
due 9/2/97 (2).............. 90,000,000
100,000,000 Dean Witter Reynolds, Inc.,
5.53%, dated 8/29/97, due
9/2/97 (3).................. 100,000,000
140,000,000 Deutsche Bank GC,
5.57%, dated 8/29/97,
due 9/2/97 (4).............. 140,000,000
140,000,000 Donaldson, Lufkin & Jenrette
Securities Corp., 5.53%,
dated 8/29/97, due 9/2/97
(5)......................... 140,000,000
100,000,000 Dresdner Bank AG,
5.64%, dated 8/29/97,
due 9/2/97 (6).............. 100,000,000
111,237,500 Dresdner Bank AG,
5.64%, dated 8/29/97,
due 9/2/97 (7)**............ 111,237,500
40,200,000 Dresdner Bank AG, 5.7%,
dated 8/29/97, due
9/2/97 (8)**................ 40,200,000
177,843,750 Dresdner Bank AG, 5.85%, dated
8/29/97, due
9/2/97 (9)**................ 177,843,750
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS*-- CONTINUED
$140,000,000 First Boston Corp., 5.53%,
dated 8/29/97, due 9/2/97
(10)........................ $ 140,000,000
140,000,000 HSBC, 5.57%, dated 8/29/97,
due 9/2/97 (11)............. 140,000,000
300,000,000 Lehman Brothers, Inc.,
5.50%, dated 8/29/97, due
9/2/97 (12)................. 300,000,000
140,000,000 Merrill Lynch, Pierce, Fenner
& Smith, 5.55%, dated
8/29/97, due 9/2/97 (13).... 140,000,000
140,000,000 Morgan Guaranty Trust Co. of
New York, 5.56%, dated
8/29/97, due 9/2/97 (14).... 140,000,000
50,000,000 NationsBank, Charlotte, NC,
5.53%, dated 8/29/97, due
9/2/97 (15)................. 50,000,000
210,000,000 Smith Barney Shearson, Inc.,
5.57%, dated 8/29/97, due
9/2/97 (16)................. 210,000,000
145,725,000 Smith Barney Shearson, Inc.,
5.75%, dated 8/29/97, due
9/2/97 (17)**............... 145,725,000
300,000,000 Union Bank Switzerland,
5.59%, dated 8/29/97, due
9/2/97 (18)................. 300,000,000
TOTAL REPURCHASE AGREEMENTS
(COST $2,484,142,656)....... 2,484,142,656
SHARES
MUTUAL FUND SHARES-- 1.6%
(COST $49,315,922)
49,315,922 Fidelity U.S. Treasury, Inc.
Portfolio................... 49,315,922
TOTAL INVESTMENTS-- (COST
$3,498,693,913)....... 115.4% 3,498,693,913
OTHER ASSETS AND
LIABILITIES-- NET... (15.4) (467,013,500)
NET ASSETS............ 100.0% $3,031,680,413
</TABLE>
(CONTINUED)
29
<PAGE>
EVERGREEN
(Evergreen Graphic TREASURY MONEY MARKET FUND
Goes Here)
SCHEDULE OF INVESTMENTS (CONTINUED)
August 31, 1997
* Collateralized by:
(1) $15,934,000 U.S. Treasury Notes, 5.625% to 8.875%, 1/15/00 to 11/30/00;
value including accrued interest-- $16,388,876, $3,120,000 U.S. Treasury
Bonds, 6.50% to 6.625%, 11/15/26 to 2/15/27; value including accrued
interest-- $3,132,341.
(2) $27,102,000 U.S. Treasury Bills, 11/13/97 to 8/20/98; value including
accrued interest-- $26,192,415, $51,225,000 U.S. Treasury Bonds, 9.25%,
2/15/16; value including accrued interest-- $65,608,213.
(3) $357,182,000 U.S. Treasury Strips, 11/15/97 to 8/15/25; value including
accrued interest-- $102,000,016.
(4) $13,821,000 U.S. Treasury Bills, 11/13/97; value including accrued
interest-- $13,671,982, $52,198,000 U.S. Treasury Notes, 6.625%, 7/31/01;
value including accrued interest-- $53,339,142, $26,899,000 U.S. Treasury
Bonds, 14.25%, 2/15/02; value including accrued interest-- $34,226,067 and
$59,973,000 GNMA, 5.50% to 9.50%, 1/1/00 to 4/15/29; value including
accrued interest-- $40,063,252.
(5) $22,982,000 U.S. Treasury Notes, 8.00% to 8.875%, 11/15/98 to 5/15/01;
value including accrued interest-- $24,047,930 and $55,561,000 U.S.
Treasury Bonds, 6.00%, 2/15/26; value including accrued
interest-- $50,678,667, $177,031,000 U.S. Treasury Strips, 11/15/97 to
8/15/21; value including accrued interest-- $68,073,977.
(6) $90,180,000 U.S. Treasury Bonds, 6.50% to 9.25%, 2/15/16 to 11/15/26; value
including accrued interest-- $102,004,192.
(7) $116,526,310 GNMA, 7.50% to 8.50%; value including accrued
interest-- $114,416,627.
(8) $2,600,000 U.S. Treasury Notes, 6.125%, 7/31/00; value including accrued
interest-- $2,618,244, $40,200,757 GNMA, 6.50% to 7.50%; value including
accrued interest-- $38,819,048.
(9) $50,000,000 U.S. Treasury Notes, 6.50%, 8/15/05; value including accrued
interest-- $50,608,142, $128,400,000 U.S. Treasury Bonds, 6.00% to 11.25%,
2/15/15 to 2/15/26; value including accrued interest-- $130,945,206 and
$2,300,000 GNMA, 8.50%; value including accrued interest-- $1,499,795.
(10) $137,932,000 U.S. Treasury Notes, 6.75% to 7.75%, 2/15/98 to 2/15/05; value
including accrued interest-- $144,179,245.
(11) $143,930,000 U.S. Treasury Bills, 10/23/97; value including accrued
interest-- $142,804,471.
(12) $486,244,112 GNMA, 5.50% to 11.25%, 5/20/99 to 8/20/27; value including
accrued interest-- $305,965,182.
(13) $110,393,000 U.S. Treasury Bonds, 7.625% to 14.00%, 2/15/07 to 11/15/11;
value including accrued interest-- $142,804,948.
(14) $135,815,000 U.S. Treasury Notes, 5.875% to 7.75%, 8/15/98 to 11/30/99;
value including accrued interest-- $137,374,570, $5,510,000 U.S. Treasury
Bills, 12/18/97; value including accrued interest-- $5,426,072.
(15) $49,625,000 U.S. Treasury Notes, 6.375%, 4/30/99; value including accrued
interest-- $49,660,151.
(16) & (17) $9,177,000 U.S. Treasury Bills, 2/19/98; value including accrued
interest-- $8,948,025, $29,338,000 U.S. Treasury Notes, 5.25% to 6.875%,
9/30/98 to 5/15/06; value including accrued interest-- $29,858,352,
$8,254,000 REMIC, 7.00% to 8.00%, 6/15/06 to 5/20/24; value including
accrued interest-- $5,965,419, $90,830,000 U.S. Treasury Strips, 8/15/03 to
11/15/18; value including accrued interest-- $37,628,410 and $409,435,458
GNMA, 5.00% to 17.00%, 11/15/97 to 8/20/27; value including accrued
interest-- $278,397,905.
(18) $377,414,341 GNMA, 6.00% to 9.50%; value including accrued
interest-- $306,004,521.
** Represents investment of cash collateral received for securities on loan.
*** Securities on loan (See Note 3).
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
EVERGREEN
(Evergreen Graphic
STATEMENTS OF ASSETS AND LIABILITIES Goes Here)
August 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
(Logo) (Logo) (Logo) (Logo)
MONEY PENNSYLVANIA TAX EXEMPT TREASURY
MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<CAPTION>
<S> <C> <C> <C> <C>
ASSETS
Investments in securities.............................. $3,464,439,268 $ 67,388,340 $1,040,038,783 $1,014,551,257
Investments in repurchase agreements................... 0 0 0 2,484,142,656
Investments at market value (identified cost-
$3,464,439,268, $67,388,340, $1,040,038,783 and
$3,498,693,913, respectively)...................... 3,464,439,268 67,388,340 1,040,038,783 3,498,693,913
Cash................................................... 67,134 0 2,703,051 0
Interest receivable.................................... 13,537,719 525,390 7,232,591 28,945,172
Receivable for investments sold........................ 0 0 11,488,005 0
Receivable for Fund shares sold........................ 6,471,028 0 1,342,565 1,798,592
Prepaid expenses and other assets...................... 161,476 3,819 44,994 71,884
Total assets....................................... 3,484,676,625 67,917,549 1,062,849,989 3,529,509,561
LIABILITIES
Payable for securities on loan......................... 0 0 0 483,676,736
Payable for investments purchased...................... 0 0 15,750,000 0
Payable for Fund shares redeemed....................... 6,322,523 0 0 549,886
Dividends payable...................................... 9,949,004 85,439 1,703,837 10,996,800
Due to custodian....................................... 0 29,154 0 0
Distribution fee payable............................... 1,390,333 8,492 360,161 1,266,292
Due to related parties................................. 1,316,976 54,127 452,256 994,434
Accrued Trustees' fees and expenses.................... 45,487 5,102 25,000 132,000
Accrued professional fees.............................. 26,700 17,900 24,500 6,432
Accrued expenses and other liabilities................. 301,736 12,953 108,021 206,568
Total liabilities.................................. 19,352,759 213,167 18,423,775 497,829,148
NET ASSETS............................................... $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413
NET ASSETS REPRESENTED BY
Paid-in capital........................................ $3,465,958,299 $ 67,714,599 $1,044,687,001 $3,031,630,773
Undistributed net investment income.................... 2,555 0 0 49,640
Accumulated net realized gain (loss) on investments.... (636,988) (10,217) (260,787) 0
TOTAL NET ASSETS................................... $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413
NET ASSETS CONSIST OF
Class A................................................ $2,802,600,125 $ 35,728,195 $ 666,745,832 $2,484,759,269
Class B................................................ 22,872,405 -- -- --
Class C................................................ 5,086,778 -- -- --
Class K................................................ 105,412 -- -- --
Class Y................................................ 634,659,146 31,976,187 377,680,382 546,921,144
$3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413
SHARES OUTSTANDING
Class A................................................ 2,802,742,607 35,729,874 666,866,419 2,484,732,831
Class B................................................ 22,875,453 -- -- --
Class C................................................ 5,088,082 -- -- --
Class K................................................ 105,412 -- -- --
Class Y................................................ 635,220,110 31,984,725 377,781,716 546,914,493
NET ASSET VALUE PER SHARE
Class A................................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
Class B................................................ $ 1.00 -- -- --
Class C................................................ $ 1.00 -- -- --
Class K................................................ $ 1.00 -- -- --
Class Y................................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
</TABLE>
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here) STATEMENTS OF OPERATIONS
Year Ended August 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
(Logo) (Logo) (Logo) (Logo)
MONEY PENNSYLVANIA TAX EXEMPT TREASURY
MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<CAPTION>
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest............................................... $159,154,235 $2,481,018 $ 45,162,514 $168,500,697
EXPENSES
Management fee......................................... 13,092,396 275,516 5,695,367 10,831,288
Distribution Plan expenses............................. 6,359,402 90,259 1,988,796 7,263,329
Transfer agent fees.................................... 923,159 20,100 213,468 184,287
Custodian fees......................................... 545,241 39,336 266,070 580,475
Administrative services fees........................... 0 27,793 0 1,241,466
Professional fees...................................... 32,998 15,890 37,267 28,199
Trustees' fees and expenses............................ 53,364 5,512 25,813 65,862
Other.................................................. 595,807 24,404 123,733 203,935
Fee waivers and/or expense reimbursements.............. (1,482,584) (123,088) (183,559) (132,244)
Total expenses..................................... 20,119,783 375,722 8,166,955 20,266,597
Less: Indirectly paid expenses......................... (21,867) (88) (27,673) (9,969)
Net expenses....................................... 20,097,916 375,634 8,139,282 20,256,628
NET INVESTMENT INCOME.................................. 139,056,319 2,105,384 37,023,232 148,244,069
Net realized loss on investments....................... (85,308) 0 (2,907) 0
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $138,971,011 $2,105,384 $ 37,020,325 $148,244,069
</TABLE>
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
EVERGREEN
(Evergreen Graphic
STATEMENTS OF CHANGES IN NET ASSETS Goes Here)
Year Ended August 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
(Logo) (Logo) (Logo) (Logo)
MONEY PENNSYLVANIA TAX EXEMPT TREASURY
MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<CAPTION>
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.................................. $ 139,056,319 $ 2,105,384 $ 37,023,232 $ 148,244,069
Net realized loss on investments....................... (85,308) 0 (2,907) 0
Net increase in net assets resulting from
operations....................................... 138,971,011 2,105,384 37,020,325 148,244,069
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME
Class A................................................ (101,255,910) (905,311) (20,900,359) (114,457,775)
Class B................................................ (509,494) 0 0 0
Class C................................................ (17,908) 0 0 0
Class K................................................ (2,220) 0 0 0
Class Y................................................ (37,268,232) (1,203,873) (16,122,873) (33,786,294)
Total distributions to shareholders................ (139,053,764) (2,109,184) (37,023,232) (148,244,069)
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold.............................. 8,940,579,510 127,715,297 2,604,375,798 6,954,597,959
Proceeds from shares issued in acquisition of Keystone
Liquid Trust......................................... 163,579,564 0 0 0
Proceeds from reinvestment of distributions............ 38,314,180 1,021,288 14,787,888 19,627,202
Payment for shares redeemed............................ (8,113,736,002) (131,543,821) (2,852,083,788) (7,310,208,436)
Net increase (decrease) in net assets resulting
from capital share transactions.................. 1,028,737,252 (2,807,236) (232,920,102) (335,983,275)
Total increase (decrease) in net assets............ 1,028,654,499 (2,811,036) (232,923,009) (335,983,275)
NET ASSETS
Beginning of year...................................... 2,436,669,367 70,515,418 1,277,349,223 3,367,663,688
END OF YEAR............................................ $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413
Undistributed net investment income...................... $ 2,555 $ 0 $ 0 $ 49,640
</TABLE>
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here) STATEMENTS OF CHANGES IN NET ASSETS
Prior Fiscal Periods
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
(Logo) (Logo) (Logo) (Logo)
MONEY PENNSYLVANIA TAX-FREE TAX EXEMPT TREASURY
MARKET MONEY MARKET FUND MONEY MARKET MONEY MARKET
FUND YEAR ENDED FUND FUND
YEAR ENDED SIX MONTHS ENDED FEBRUARY 29, YEAR ENDED YEAR ENDED
AUGUST 31, 1996 AUGUST 31, 1996* 1996 AUGUST 31, 1996 AUGUST 31, 1996
<CAPTION>
<S> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income......... $ 85,949,891 $ 1,091,227 $ 2,665,986 $ 36,638,019 $ 121,967,383
Net realized gain (loss) on
investments................. (26,141) (378) (189) (6,227) 161,674
Net increase in net assets
resulting from
operations................ 85,923,750 1,090,849 2,665,797 36,631,792 122,129,057
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME
Class A....................... (63,327,347) (242,309) (9,466) (19,837,670) (101,441,299)
Class B....................... (382,116) 0 0 0 0
Class Y....................... (22,240,428) (848,918) (2,656,520) (16,800,349) (20,526,084)
Total distributions to
shareholders.............. (85,949,891) (1,091,227) (2,665,986) (36,638,019) (121,967,383)
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold..... 6,275,701,649 61,460,030 179,632,522 2,572,408,736 6,442,829,718
Proceeds from shares issued in
acquisition of:
FFB Cash Management Fund.... 592,358,361 0 0 0 0
FFB Lexicon Cash Management
Fund...................... 95,834,929 0 0 0 0
FFB Tax-Free Money Market
Fund...................... 0 0 0 103,129,021 0
FFB U.S. Treasury Fund...... 0 0 0 0 1,070,672,333
FFB U.S. Government Fund.... 0 0 0 0 327,532,054
FFB 100% U.S. Treasury
Fund...................... 0 0 0 0 28,227,573
Proceeds from reinvestment of
distributions............... 28,242,023 621,908 1,766,790 16,202,992 17,972,077
Payment for shares redeemed... (5,531,191,681) (79,296,671) (137,207,686) (2,390,799,129) (5,974,992,600)
Net increase (decrease) in
net assets resulting from
capital share
transactions.............. 1,460,945,281 (17,214,733) 44,191,626 300,941,620 1,912,241,155
Total increase (decrease)
in net assets........... 1,460,919,140 (17,215,111) 44,191,437 300,935,393 1,912,402,829
NET ASSETS
Beginning of period........... 975,750,227 87,730,529 43,539,092 976,413,830 1,455,260,859
END OF PERIOD................. $2,436,669,367 $ 70,515,418 $ 87,730,529 $1,277,349,223 $3,367,663,688
Undistributed net investment
income........................ $ 0 $ 3,800 $ 3,800 $ 0 $ 0
</TABLE>
* The Fund changed its fiscal year end from February 29 to August 31.
SEE COMBINED NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
EVERGREEN
(Evergreen Graphic
COMBINED NOTES TO FINANCIAL STATEMENTS Goes Here)
1. SIGNIFICANT ACCOUNTING POLICIES
The Evergreen Money Market Funds (the "Funds") consist of the Evergreen Money
Market Fund ("Money Market Fund"), Evergreen Pennsylvania Tax-Free Money Market
Fund ("Pennsylvania Tax-Free Money Market Fund"), Evergreen Tax Exempt Money
Market Fund ("Tax Exempt Money Market Fund") and Evergreen Treasury Money Market
Fund ("Treasury Money Market Fund"), known collectively as the "Funds". The
Funds are all registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as diversified, open-end management investment companies.
Money Market Fund is a series of Evergreen Money Market Trust, Pennsylvania
Tax-Free Money Market Fund is a series of Evergreen Tax-Free Trust, Tax Exempt
Money Market Fund is a series of Evergreen Municipal Trust and Treasury Money
Market Fund is a series of Evergreen Investment Trust.
Each Fund offers Class A and Class Y shares. In addition, the Money Market Fund
offers Class B, Class C and Class K shares. Class A shares are sold at net asset
value without a front-end sales charge. Class B and Class C shares pay a higher
ongoing distribution fee than Class A shares. Class B shares are sold subject to
a contingent deferred sales charge that is payable upon redemption and decreases
depending on how long the shares have been held. Class C shares are sold subject
to a contingent deferred sales charge payable on shares redeemed within one year
after the month of purchase. Class K shares are available for exchange by
shareholders of any Keystone Classic Fund. The contingent deferred sales charge
applicable to shares of the Keystone Classic Fund exchanged for Class K shares
will carry over to the Class K shares received in the exchange. Class Y shares
are not subject to any sales charges or distribution fees. Class Y shares are
sold only to investment advisory clients of First Union Corporation ("First
Union") and its affiliates, certain institutional investors or Class Y
shareholders of record of certain other funds managed by First Union and its
affiliates as of December 30, 1994.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles, which
require management to make estimates and assumptions that affect amounts
reported herein. Actual results could differ from these estimates.
A. VALUATION OF SECURITIES
Portfolio securities are valued at amortized cost which approximates market
value. The amortized cost method involves valuing a security at cost on the date
of purchase and thereafter assuming a straight-line amortization of any discount
or premium.
B. REPURCHASE AGREEMENTS
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held by the custodian on the Fund's behalf. Each
Fund monitors the adequacy of the collateral daily and will require the seller
to provide additional collateral in the event the market value of the securities
pledged falls below the carrying value of the repurchase agreement, including
accrued interest. Each Fund will only enter into repurchase agreements with
banks and other financial institutions which are deemed by the investment
adviser to be creditworthy pursuant to guidelines established by the Board of
Trustees.
C. SECURITIES LENDING
In order to generate income and to offset expenses, the Funds may lend portfolio
securities to brokers, dealers and other financial organizations. The Funds'
investment adviser will monitor the creditworthiness of such borrowers. Loans of
securities may not exceed 30% of a Fund's total assets and will be
collateralized by cash, letters of credit or United States Government securities
that are maintained at all times in an amount equal to at least 100% of the
current market value of the loaned securities, 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 collateral in portfolio securities, thereby
increasing its return. A Fund will have the right to call any such loan and
obtain the securities loaned at any time on five days' notice. 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 may pay reasonable fees in
connection with such loans.
D. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are accounted for no later than one business day after
the trade date. Realized gains and losses are computed on the identified cost
basis. Interest income is recorded on the accrual basis and includes accretion
of discounts and amortization of premiums.
E. FEDERAL INCOME TAXES
The Funds have qualified and intend to continue to qualify as regulated
investment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable
income, net tax-exempt income and net capital gains, if any, to their
shareholders. The Funds also intend to avoid any excise tax liability by making
the required distributions under the Code. Accordingly, no provision for federal
income taxes is required. To the extent that realized capital gains can be
offset by capital loss carryforwards, it is each Fund's policy not to distribute
such gains.
F. DISTRIBUTIONS
Distributions from net investment income for each Fund are declared daily and
paid monthly. Distributions from net realized capital gains, if any, are paid at
least annually. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. To the extent these differences are permanent in nature,
such amounts are reclassified within the components of net assets.
35
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here) COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)
G. CLASS ALLOCATIONS
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the relative
net assets of each class. Currently, class specific expenses are limited to
expenses incurred under the Distribution Plans for each class.
2. CAPITAL SHARE TRANSACTIONS
The Money Market and Tax Exempt Money Market Funds have an unlimited number of
$0.0001 par value shares of beneficial interest authorized. The Pennsylvania
Tax-Free Money Market and Treasury Money Market Funds have an unlimited number
of $.001 par value shares of beneficial interest authorized. The shares are
divided into classes which are designated Class A and Class Y shares. In
addition, the Money Market Fund offers Class B, Class C and Class K shares.
Transactions in shares of beneficial interest (valued at $1.00 per share) of the
Funds were as follows:
<TABLE>
<S> <C> <C> <C>
YEAR ENDED AUGUST 31,
MONEY MARKET FUND 1997 1996
CLASS A
Shares sold..................................................... 4,913,816,942 3,360,065,151
Shares issued in acquisition of:
FFB Cash Management Fund...................................... 0 592,362,245
Keystone Liquid Trust......................................... 151,861,145 0
Shares issued in reinvestment of distributions.................. 19,783,898 13,630,468
Shares redeemed................................................. (4,037,993,646) (2,895,924,591)
Net increase.................................................... 1,047,468,339 1,070,133,273
CLASS B
Shares sold..................................................... 22,383,686 13,107,126
Shares issued in acquisition of Keystone Liquid Trust........... 7,303,582 0
Shares issued in reinvestment of distributions.................. 442,030 307,330
Shares redeemed................................................. (17,471,935) (11,123,113)
Net increase.................................................... 12,657,363 2,291,343
</TABLE>
<TABLE>
<CAPTION>
AUGUST 1, 1997
(COMMENCEMENT OF
CLASS OPERATIONS) TO
AUGUST 31, 1997
<S> <C> <C> <C>
CLASS C
Shares sold..................................................... 1,309,779
Shares issued in acquisition of Keystone Liquid Trust........... 4,493,120
Shares issued in reinvestment of distributions.................. 16,706
Shares redeemed................................................. (731,523)
Net increase.................................................... 5,088,082
CLASS K
Shares sold..................................................... 156,690
Shares issued in reinvestment of distributions.................. 208
Shares redeemed................................................. (51,486)
Net increase.................................................... 105,412
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
1997 1996
<S> <C> <C> <C>
CLASS Y
Shares sold..................................................... 4,002,912,413 2,902,529,372
Shares issued in acquisition of FFB Lexicon Cash Management
Fund.......................................................... 0 95,834,876
Shares issued in reinvestment of distributions.................. 18,071,338 14,304,225
Shares redeemed................................................. (4,057,487,412) (2,624,143,977)
Net increase (decrease)......................................... (36,503,661) 388,524,496
</TABLE>
36
<PAGE>
EVERGREEN
(Evergreen Graphic
COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) Goes Here)
<TABLE>
<CAPTION>
AUGUST 22, 1995
SIX MONTHS (COMMENCEMENT OF
YEAR ENDED ENDED CLASS OPERATIONS) TO
PENNSYLVANIA TAX-FREE MONEY MARKET FUND AUGUST 31, 1997 AUGUST 31, 1996 FEBRUARY 29, 1996
<S> <C> <C> <C>
CLASS A
Shares sold..................................................... 84,061,251 40,205,338 4,636,845
Shares issued in reinvestment of distributions.................. 196,984 35,417 3,934
Shares redeemed................................................. (70,724,545) (22,377,383) (307,967)
Net increase.................................................... 13,533,690 17,863,372 4,332,812
<CAPTION>
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
AUGUST 31, 1997 AUGUST 31, 1996 FEBRUARY 29, 1996
<S> <C> <C> <C>
CLASS Y
Shares sold..................................................... 43,654,046 21,254,692 174,995,677
Shares issued in reinvestment of distributions.................. 824,304 586,491 1,762,856
Shares redeemed................................................. (60,819,276) (56,919,288) (136,899,719)
Net increase (decrease)......................................... (16,340,926) (35,078,105) 39,858,814
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
TAX EXEMPT MONEY MARKET FUND 1997 1996
<S> <C> <C> <C>
CLASS A
Shares sold..................................................... 1,491,746,339 1,329,098,871
Shares issued in acquisition of FFB Tax-Free Money Market
Fund.......................................................... 0 103,102,728
Shares issued in reinvestment of distributions.................. 3,081,550 3,435,421
Shares redeemed................................................. (1,488,596,189) (1,330,067,450)
Net increase.................................................... 6,231,700 105,569,570
CLASS Y
Shares sold..................................................... 1,112,629,458 1,243,309,865
Shares issued in reinvestment of distributions.................. 11,706,339 12,767,571
Shares redeemed................................................. (1,363,487,668) (1,060,731,679)
Net increase (decrease)......................................... (239,151,871) 195,345,757
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
TREASURY MONEY MARKET FUND 1997 1996
<S> <C> <C> <C>
CLASS A
Shares sold..................................................... 4,767,671,119 4,828,856,886
Shares issued in acquisition of:
FFB U.S. Treasury Fund........................................ 0 1,070,688,429
FFB U.S. Government Fund...................................... 0 327,554,031
FFB 100% U.S. Treasury Fund................................... 0 28,227,628
Shares issued in reinvestment of distributions.................. 16,715,941 16,836,594
Shares redeemed................................................. (4,907,328,690) (4,842,442,130)
Net increase (decrease)......................................... (122,941,630) 1,429,721,438
CLASS Y
Shares sold..................................................... 2,186,926,840 1,613,972,832
Shares issued in reinvestment of distributions.................. 2,911,261 1,135,483
Shares redeemed................................................. (2,402,879,746) (1,132,550,470)
Net increase (decrease)......................................... (213,041,645) 482,557,845
</TABLE>
3. SECURITIES TRANSACTIONS
The Treasury Money Market Fund loaned securities during the year ended August
31, 1997 to certain brokers who paid the Fund a negotiated lenders' fee. These
fees are included in interest income. The Fund received cash as collateral
against the loaned securities in an amount at least equal to 100% of the market
value of the loaned securities at the inception of each loan. The Fund monitors
the adequacy of the collateral daily and will require the broker to provide
additional collateral in the event the value of the collateral falls below 100%
of the market value of the securities on loan. At August 31, 1997, the value of
securities on loan and the value of collateral amounted to $469,852,400 and
$475,006,250, respectively. During the year ended August 31, 1997, the Fund
earned $499,529 in income from securities lending transactions.
37
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here) COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)
On August 31, 1997, the cost of investments for federal income tax purposes of
each Fund was the same as for financial reporting purposes.
As of August 31, 1997, the Funds had capital loss carryovers for federal income
tax purposes as follows:
<TABLE>
<CAPTION>
EXPIRATION
2001 2002 2003 2004 2005
<S> <C> <C> <C> <C> <C>
Money Market Fund............................................... -- -- $517,000 -- $33,000
Pennsylvania Tax-Free Money Market Fund......................... -- $4,000 6,000 -- --
Tax Exempt Money Market Fund.................................... $177,000 -- 16,000 $65,000 --
</TABLE>
4. DISTRIBUTION PLANS
Evergreen Keystone Distributor, Inc. ("EKD"), a wholly-owned subsidiary of The
BISYS Group Inc. ("BISYS"), serves as the principal underwriter to the Funds.
The Funds have adopted Distribution Plans (the "Plans") for their Class A
shares, Class B shares, Class C shares and Class K shares pursuant to Rule 12b-1
under the 1940 Act. The Plans permit each Fund to reimburse its principal
underwriter for costs related to selling shares of the Fund and for various
other services. These costs, which consist primarily of commissions and services
fees to broker-dealers who sell shares of each Fund, are paid by the Fund and
classified as "Distribution Plan expenses". Distribution Plan expenses are
calculated daily and paid monthly.
Under the terms of the Plans, the Funds may incur distribution-related and
shareholder servicing expenses which may not exceed 0.75% of average daily net
assets for Class A Shares of Money Market and Tax Exempt Money Market Funds and
0.35% for Class A Shares of the Pennsylvania Tax-Exempt Money Market and
Treasury Money Market Funds. The payments for Class A Shares of the Funds are
voluntarily limited to 0.30% of average daily net assets.
The Money Market Fund may incur distribution-related and shareholder servicing
expenses which may not exceed an annual fee of 1.00% of average daily net assets
of its Class B and Class C shares and up to 0.30% of its average daily net
assets of its Class K shares.
During the year ended August 31, 1997, amounts paid to EKD pursuant to each
Fund's Class A, Class B, Class C and Class K Distribution Plans were as follows:
<TABLE>
<CAPTION>
AMOUNTS PAID AMOUNTS WAIVED
CLASS A CLASS B CLASS C CLASS K CLASS A
<S> <C> <C> <C> <C> <C>
Money Market Fund................................... $6,232,581 $122,419 $4,266 $ 136 --
Pennsylvania Tax-Free Money Market Fund............. 90,259 -- -- -- $ 61,039
Tax Exempt Money Market Fund........................ 1,988,796 -- -- -- --
Treasury Money Market Fund.......................... 7,263,329 -- -- -- --
</TABLE>
EKD has entered into a Shareholder Services Agreement with First Union Brokerage
Services ("FUBS"), an affiliate of First Union, whereby EKD will compensate FUBS
for certain services provided to shareholders and/or maintenance of shareholder
accounts relating to Money Market Fund's Class B shares.
EKD intends, but is not obligated, to continue to pay distribution costs that
exceed the current annual payments from the Money Market Fund. EKD intends to
seek full payment of such distribution costs from the Money Market Fund at such
time in the future as, and to the extent that, payment thereof by the Class B,
Class C or Class K shares would be within permitted limits.
For the Money Market Fund's Class B, Class C and Class K shares, contingent
deferred sales charges paid by redeeming shareholders are paid to EKD.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
Evergreen Asset Management Corp. ("EAM"), a wholly-owned subsidiary of First
Union, is the investment adviser for the Money Market and Tax Exempt Money
Market Funds. In return for providing investment management and administrative
services to the Funds, the Funds pay EAM a management fee that is calculated
daily and paid monthly. The management fee is computed by applying percentage
rates starting at 0.50% and declining to 0.45% per annum as net assets increase,
to the average daily net asset value of each Fund.
The Capital Management Group ("CMG") of First Union National Bank of North
Carolina ("FUNB"), a subsidiary of First Union, serves as the investment adviser
to the Pennsylvania Tax-Free Money Market and Treasury Money Market Funds. In
return for providing investment management and administrative services to the
Funds, the Funds pay CMG a management fee that is calculated daily and paid
monthly. For the Pennsylvania Tax-Free Money Market Fund, the management fee is
calculated by applying percentage rates starting at 0.40% and declining to 0.28%
per annum as net assets increase, to the average daily net asset value of the
Pennsylvania Tax-Free Money Market Fund. CMG is entitled to an annual fee of
0.35% of the average daily net asset value of the Treasury Money Market Fund.
38
<PAGE>
EVERGREEN
(Evergreen Graphic
COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) Goes Here)
Evergreen Keystone Investment Services, Inc. ("EKIS"), a subsidiary of First
Union, serves as the administrator for each Fund. Prior to March 11, 1997, EAM
was the administrator. Furman Selz LLC ("Furman Selz") was the sub-administrator
through December 31, 1996. Effective January 1, 1997, BISYS acquired Furman
Selz' mutual fund unit and accordingly BISYS Fund Services became
sub-administrator.
The administrator and sub-administrator for the Pennsylvania Tax-Free Money
Market and Treasury Money Market Funds are entitled to an annual fee based on
the average daily net assets of the funds administered by EKIS for which First
Union or its investment advisory subsidiaries are also the investment advisers.
The administration fee is calculated by applying percentage rates, which start
at 0.05% and decline to 0.01% per annum as net assets increase, to the average
daily net asset value of the Pennsylvania Tax-Free Money Market and Treasury
Money Market Funds. The sub-administration fee is calculated by applying
percentage rates, which start at 0.01% and decline to .004% per annum as net
assets increase, to the average daily net asset value of the Pennsylvania
Tax-Free Money Market and Treasury Money Market Funds.
During the year ended August 31, 1997, the Pennsylvania Tax-Free Money Market
and Treasury Money Market Funds paid or accrued to EKIS $23,109 and $1,030,140,
respectively, for certain administrative services.
For the Money Market and Tax Exempt Money Market Funds the administration and
sub-administration fees are paid by EAM and are not fund expenses.
Lieber & Company, an affiliate of First Union, is the investment sub-adviser to
the Money Market and Tax Exempt Money Market Funds. Lieber & Company is
reimbursed by EAM, at no additional expense to the Money Market and Tax Exempt
Money Market Funds, for its cost of providing sub-investment advisory services.
During the year ended August 31, 1997, the Funds' fees were waived as follows:
<TABLE>
<CAPTION>
MANAGEMENT
FEE WAIVER
<S> <C>
Money Market Fund........................................ $1,482,584
Pennsylvania Tax-Free Money Market Fund.................. 62,049
Tax Exempt Money Market Fund............................. 183,559
Treasury Money Market Fund............................... 132,244
</TABLE>
The investment manager can modify or discontinue these voluntary waivers at any
time.
Effective May 5, 1997, Evergreen Keystone Service Company ("EKSC"), a
wholly-owned subsidiary of FUNB, provides transfer and dividend disbursing agent
services for the Funds. These services were formerly provided by State Street
Bank and Trust Company ("State Street").
As of August 31, 1997, the Funds' accrued or paid to EKSC the following amounts
for these services:
<TABLE>
<S> <C>
Money Market Fund............................................ $482,639
Pennsylvania Tax-Free Money Market Fund...................... 3,203
Tax Exempt Money Market Fund................................. 99,662
Treasury Money Market Fund................................... 71,754
</TABLE>
For certain accounts of the Money Market and the Treasury Money Market Funds,
First Union had been sub-contracted by State Street to maintain shareholder
sub-account records, take fund purchase and redemption orders and answer
inquiries. For each account of the Funds, First Union earned a fee which
aggregated as follows for the year ended August 31, 1997:
<TABLE>
<S> <C>
Money Market Fund........................................ $ 32,890
Treasury Money Market Fund............................... 93,455
</TABLE>
Officers of the Funds and affiliated Trustees receive no compensation directly
from the Funds. As sub-administrator, BYSIS compensates the officers of the
Funds.
6. EXPENSE OFFSET ARRANGEMENT
The Funds have entered into an expense offset arrangement with their custodian.
The assets deposited with the custodian under this expense offset arrangement
could have been invested in income-producing assets.
39
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here) COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. DEFERRED TRUSTEES' FEES
Each Independent Trustee of the Funds may defer any or all compensation related
to performance of their duties as a Trustee. Each Trustee's deferred balance is
allocated to deferral accounts which are included in the accrued expenses for
each Fund. The investment performance of the deferral accounts is based on the
investment performance of certain Evergreen Keystone Funds. Any gains earned or
losses incurred in the deferral accounts are reported in the Fund's Trustees'
fees and expenses. Trustees will be paid either in one lump sum or in quarterly
installments for up to ten years at their election, not earlier than either the
year in which the Trustee ceases to be a member of the Board of Trustees or
January 1, 2000. As of August 31, 1997, the value of the Trustees' deferral
accounts was as follows:
<TABLE>
<S> <C>
Money Market Fund........................................ $ 45,487
Pennsylvania Tax-Free Money Market Fund.................. 5,102
Tax Exempt Money Market Fund............................. 18,639
Treasury Money Market Fund............................... 111,635
</TABLE>
8. ACQUISITION INFORMATION
Effective August 1, 1997, the Money Market Fund acquired substantially all the
assets and assumed the liabilities of Keystone Liquid Trust in exchange for
Class A, Class B and Class C shares of the Money Market Fund. The acquisition
was accomplished by a tax-free exchange of the respective shares of the Money
Market Fund for the net assets of Keystone Liquid Trust. The net assets
acquired, valued at $1 per share, amounted to $163,579,564. The aggregate net
assets of the Money Market Fund immediately after the acquisition was
$3,202,817,920.
Effective January 1, 1996, First Union merged with First Fidelity
Bancorporation. Effective on the close of business January 19, 1996, the Funds
noted below acquired substantially all of the net assets of the following
management investment companies, previously advised by a subsidiary of First
Fidelity Bancorporation, through non-taxable exchanges. The net assets acquired,
valued at $1 per share, and class of shares exchanged are as follows:
<TABLE>
<CAPTION>
CLASS OF
ACQUIRED FUND ACQUIRING FUND SHARES EXCHANGED NET ASSETS
<S> <C> <C> <C>
FFB Cash Management Fund Money Market Fund Class A $ 592,358,361
FFB Lexicon Cash Management Fund Money Market Fund Class Y 95,834,929
FFB Tax-Free Money Market Fund Tax Exempt Money Class A 103,129,021
Market Fund
FFB U.S. Treasury Fund Treasury Money Class A 1,070,672,333
Market Fund
FFB U.S. Government Fund Treasury Money Class A 327,532,054
Market Fund
FFB 100% U.S. Treasury Fund Treasury Money Class A 28,227,573
Market Fund
</TABLE>
The aggregate net assets of the Money Market, Tax Exempt Money Market and
Treasury Money Market Funds immediately after the acquisitions were
$1,865,328,722, $1,141,961,188 and $3,053,739,559, respectively.
9. FINANCING AGREEMENT
On October 31, 1996, a financing agreement between all of the Evergreen Funds
and State Street, Societe Generale and ABN Amro Bank N.V. (collectively, the
"Banks") became effective. Under this agreement, the Banks provide an unsecured
credit facility in the aggregate amount of $225 million ($112.5 million
committed and $112.5 million uncommitted) allocated evenly between the Banks.
Borrowings under this facility bear interest at 0.75% per annum above the
Federal Funds rate. A commitment fee of 0.10% per annum will be incurred on the
unused portion of the committed facility which will be allocated to all
participating funds. State Street acts as agent for the Banks, and as agent is
entitled to a fee of $15,000 which is allocated to all of the Evergreen Funds.
During the year ended August 31, 1997, the Tax Exempt Money Market Fund had
borrowings outstanding for 3 days under the line of credit and incurred $28,513
in interest charges related to these borrowings. The Tax Exempt Money Market
Fund's average amount of debt outstanding during the year ended August 31, 1997
aggregated $47,400,000 at a weighted average interest rate of 7.218%. The
maximum amount outstanding under the line of credit during the year ended August
31, 1997 was $67,212,367 (including accrued interest). The Funds had no
outstanding borrowings under this agreement at August 31, 1997.
10. CONCENTRATION OF CREDIT RISK
The Pennsylvania Tax-Free Money Market Fund invests a substantial portion of its
assets in issuers located in a single state, therefore, it may be more affected
by economic and political developments in that state or region than would be a
comparable general tax-exempt money market fund.
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<PAGE>
EVERGREEN
(Evergreen Graphic
REPORT OF INDEPENDENT ACCOUNTANTS Goes Here)
TO THE TRUSTEES AND SHAREHOLDERS OF
EVERGREEN MONEY MARKET FUND AND
EVERGREEN TAX EXEMPT MONEY MARKET FUND
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Evergreen Money Market Fund,
(the "Fund"), a series of the Evergreen Money Market Trust, at August 31, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated and the financial position of the
Evergreen Tax Exempt Money Market Fund (the "Fund"), one of the Evergreen
Municipal Trust Portfolios, at August 31, 1997, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1997 by correspondence with the custodian and the application of alternative
auditing procedures where securities purchased were not received, provide a
reasonable basis for the opinion expressed above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
October 14, 1997
41
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here) INDEPENDENT AUDITORS' REPORT
The Trustees and Shareholders
Evergreen Tax-Free Trust
Evergreen Investment Trust
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of the Evergreen Money Market Funds listed below as
of August 31, 1997, and the related statements of operations, statements of
changes in net assets, and financial highlights for each of the years or periods
listed below:
EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (ONE OF THE PORTFOLIOS
CONSTITUTING EVERGREEN TAX-FREE TRUST)-- statement of operations for the
year ended August 31, 1997, statements of changes in nets assets for the
year ended August 31, 1997, the six-months ended August 31, 1996 and the
year ended February 29, 1996, and financial highlights for the periods
presented on page 9.
EVERGREEN TREASURY MONEY MARKET FUND (ONE OF THE PORTFOLIOS CONSTITUTING
EVERGREEN INVESTMENT TRUST)-- statement of operations for the year ended
August 31, 1997, statements of changes in net assets for each of the years
in the two-year period then ended, and the financial highlights for the
periods presented on page 11.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform our audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Evergreen Pennsylvania Tax-Free Money Market Fund and Evergreen Treasury Money
Market Fund as of August 31, 1997, the results of their operations for the year
then ended, and the changes in their net assets and financial highlights for
each of the years or periods specified in the first paragraph above in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
October 10, 1997
42
<PAGE>
EVERGREEN
(Evergreen Graphic
Goes Here)
FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED)
100% of the dividends distributed by the Pennsylvania Tax-Exempt Money Market
Fund and the Tax-Exempt Money Market Fund for the year ended August 31, 1997 are
exempt from federal income tax, other than alternative minimum tax.
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This brochure must be preceded or accompanied by a prospectus of an Evergreen
fund contained herein. The prospectus contains more complete information,
including fees and expenses, and should be read carefully before investing
or sending money.
NOT May lose value
FDIC
INSURED No bank guarantee
Evergreen Funds Distributor, Inc.
62545 540710 Rev. 01
10/97
