1933 Act File No. 2-94560
1940 Act File No. 811-4154
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 54 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 54 [X]
EVERGREEN INVESTMENT TRUST
(Exact Name of Registrant as Specified in Charter)
200 Berkeley Street, Boston, Massachusetts 02116-5034
(Address of Principal Executive Offices)
(617) 210-3200
(Registrant's Telephone Number)
Dorothy E. Bourrassa, Esq.
First Union Corporation
200 Berkeley Street, Boston, Massachusetts 02116
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
[X] immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
<PAGE>
EVERGREEN INVESTMENT TRUST
CONTENTS OF
POST-EFFECTIVE AMENDMENT NO. 54
to
REGISTRATION STATEMENT
This Post-Effective Amendment No. 54 to Registration Statement No.
2-94560/811-4154 consists of the following pages, items of information, and
documents:
The Facing Sheet
The Contents Page
The Cross-Reference Sheet
PART A
------
Prospectus for Evergreen Treasury Money Market Fund and Evergreen Florida
Municipal Bond Fund contained in Post-Effective Amendment No. 47 to Registration
Statement No. 2-94560/811-4154 filed on October 31, 1996 is incorporated by
referenced herein.
PART B
------
Statement of Additional Information for Evergreen Treasury Money Market Fund and
Evergreen Florida Municipal Bond Fund contained in Post-Effective Amendment
No. 47 to Registration Statement No. 2-94560/811-4154 filed on October 31, 1996
is incorporated by reference herein.
PART C
------
Financial Statements
Exhibits
Number of Holders of Securities
Indemnification
Business and Other Connections of Investment Adviser
Principal Underwriter
Location of Accounts and Records
Undertakings
Signatures
<PAGE>
EVERGREEN INVESTMENT TRUST
Cross-Reference Sheet pursuant to Rules 404 and 495 under the Securities
Act of 1933.
N-1A Item No. Location in Prospectus(es)
Part A
Item 1. Cover Page Cover Page
Item 2. Synopsis and Fee Table Overview of the Fund(s);
Expense Information
Item 3. Condensed Financial Information Financial Highlights
Item 4. General Description of Registrant Cover Page; Description of
the Funds; Other
Information
Item 5. Management of the Fund Management of the Fund(s);
Other Information
Item 6. Capital Stock and Other Securities Other Information
Item 7. Purchase of Securities Being Offered Purchase and Redemption of
Shares
Item 8. Redemption or Repurchase Purchase and Redemption of
Shares
Item 9. Pending Legal Proceedings Not Applicable
Location in Statement of
Part B Additional Information
Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and History Not Applicable
Item 13. Investment Objectives and Policies Investment Objectives and
Policies;Investment
Restrictions; Non-
Fundamental Operating
Policies
Item 14. Management of the Fund Trustees and Holders of
Securities
Item 15. Control Persons and Principal Trustees and Holders of
Holders of Securities Securities
Item 16. Investment Advisory and Other Services Investment Advisers;
Purchase of Shares
Item 17. Brokerage Allocation Allocation of Brokerage
Item 18. Capital Stock and Other Securities Purchase of Shares;
General Information About
the Funds
Item 19. Purchase, Redemption and Pricing of Distribution Plans;
Securities Being Offered Purchase of Shares;
Net Asset Value
Item 20. Tax Status Additional Tax Information
Item 21. Underwriters Distribution Plans;
Purchase of Shares
Item 22. Calculation of Performance Data Performance Information
Item 23. Financial Statements Financial Statements
<PAGE>
SUPPLEMENT TO THE PROSPECTUS FOR THE FOLLOWING:
CLASS A,B AND C SHARES OF MONEY MARKET FUND AND CLASS A PROSPECTUS OF
EVERGREEN TAX EXEMPT MONEY MARKET FUND, EVERGREEN PENNSYLVANIA
TAX FREE MONEY MARKET FUND, AND EVERGREEN TREASURY MONEY MARKET
THE PROSPECTUS OF THE FUNDS IS HEREBY SUPPLEMENTED AS FOLLOWS:
At a joint special meeting of shareholders held on December 15, 1997, the
shareholders approved EVERGREEN MONEY MARKET FUND'S reorganization as a separate
series of the Evergreen Money Market Trust, which was organized on September 17,
1997. In connection with the reorganization, the investment objective(s) of
EVERGREEN MONEY MARKET FUND is now "nonfundamental" (i.e., changeable by vote of
the Board of Trustees without a shareholder vote). In addition, EVERGREEN MONEY
MARKET FUND is now subject to certain standardized investment restrictions as
set forth in the Fund's Statement of Additional Information.
EXPENSE INFORMATION
The "Expense Information" section is replaced entirely by the following:
The tables below summarize the shareholder transaction costs, which are
fees paid directly from your account when you buy or sell shares of a Fund,
associated with an investment in Class A shares of each Fund, and in the case of
EVERGREEN MONEY MARKET FUND, Class B and Class C Shares. For further information
see "Purchase and Redemption of Shares" and "General Information -- Other
Classes of Shares".
<TABLE>
<CAPTION>
(Evergreen Money Market Fund
only)
SHAREHOLDER TRANSACTION EXPENSES Class A Shares Class B Shares Class C Shares
<S> <C> <C> <C>
Contingent Deferred Sales Charge (as None 5.00%(1) 1.00%
a % of original purchase price or
redemption proceeds, whichever is
lower)
</TABLE>
(1) The deferred sales charge on Class B shares declines from 5.00% to
1.00% of amounts redeemed within six years after the month of
purchase. The Funds do not charge a contingent deferred sales charge
on redemptions made after that. See "Purchase and Redemption of
Shares" for more information.
Annual operating expenses reflect the normal operating expenses of a Fund,
and include costs such as management, distribution and other fees. The tables
below show, for each class of each Fund other than Class C shares of Evergreen
Money Market Fund, actual annual operating expenses for the fiscal period ended
August 31, 1997. The tables below show for Class C shares of Evergreen Money
Market Fund estimated annual operating expenses for the fiscal year ended
January 31, 1998. The example shows what you would pay if you invested $1,000
over periods indicated. The example assumes that you reinvest all of your
dividends and that the Fund's average annual return will be 5%. THE EXAMPLES ARE
FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE FUND'S ACTUAL EXPENSES AND RETURNS
WILL VARY. For a more complete description of the various costs and expenses
borne by the Fund see "Purchase and Redemption of Shares" and "General
Information -- Other Classes of Shares." 1
EVERGREEN MONEY MARKET FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING
EXPENSES Assuming Redemption Assuming no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class C Class A Class B Class C Class B Class C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees 0.41% 0.41% 0.41%
(after Reimbursement) After 1 Year $ 8 $ 65 $ 25 $ 15 $ 15
12b-1 Fees(1) 0.30% 1.00% 1.00%
After 3 Years $ 25 $ 77 $ 47 $ 47 $ 47
Other Expenses 0.08% 0.08% 0.08%
After 5 Years $ 44 $ 101 $ 81 $ 81 $ 81
After 10 Years $ 98 $ 150 $ 178 $150 $ 178
Total 0.79% 1.49% 1.49%
</TABLE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES
(AFTER Assuming Redemption
REIMBURSEMENTS)(2) at End of Period
Class A Class A
<S> <C> <C> <C>
Management Fees 0.47%
(after Reimbursement)
After 1 Year $ 8
12b-1 Fees(1) 0.30%
After 3 Years $ 26
Other Expenses 0.06%
After 5 Years $ 46
After 10 Years $103
Total 0.83%
</TABLE>
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES
(AFTER Assuming Redemption
REIMBURSEMENTS)(2) at End of Period
Class A Class A
<S> <C> <C> <C>
Management Fees 0.40%
(after Reimbursement) After 1 Year $ 8
12b-1 Fees(1) 0.21%
After 3 Years $ 26
Other Expenses 0.19%
After 5 Years $ 44
After 10 Years $ 99
Total 0.80%
</TABLE>
EVERGREEN TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES
(AFTER Assuming Redemption
REIMBURSEMENTS)(2) at End of Period
Class A Class A
<S> <C> <C> <C>
Management Fees 0.35%
(after Reimbursement) After 1 Year $ 7
12b-1 Fees(1) 0.30%
After 3 Years $ 23
Other Expenses 0.07%
After 5 Years $ 40
After 10 Years $ 89
Total 0.72%
</TABLE>
(1) Although Class A shares can pay up to 0.75% of average net assets as a
12b-1 fee, for the foreseeable future such fees have been limited to 0.30%
of average net assets. In addition, a portion of PENNSYLVANIA TAX FREE
MONEY MARKET FUND'S 12b-1 fee is being waived. Absent such waiver,
PENNSYLVANIA TAX FREE MONEY MARKET FUND'S would have been 0.30%.
(2) First Union National Bank ("FUNB") has agreed to reimburse each Fund to the
extent that a Fund's aggregate annual operating expenses exceed 1.00%
of average net assets for any fiscal year. FUNB currently expects to
continue such expense limitations through January 31, 1998, but may,
however, cease these voluntary expenses reimbursements at any time. For
the fiscal year ended August 31, 1997, FUNB reimbursed management fees of
certain of the Funds. Absent such reimbursements, each Fund would have
paid expenses equal to the following percentages of net assets:
<TABLE>
<CAPTION>
TOTAL FUND OPERATING
EXPENSES (WITHOUT
MANAGEMENT FEES WAIVERS AND/OR
FUND (WITHOUT WAIVER) REIMBURSEMENT)
<S> <C> <C>
Evergreen Money Market Fund
Class A........................................................................ 0.46% 0.88%
Class B........................................................................ 0.46% 1.55%
Class C........................................................................ 0.46% 1.55%
Evergreen Tax Exempt Money Market Fund
Class A........................................................................ 0.50% 0.86%
Evergreen Pennsylvania Tax Free Money Market Fund
Class A........................................................................ 0.40% 0.89%
</TABLE>
FINANCIAL HIGHLIGHTS
The "Financial Highlights" section is replaced entirely by the following:
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the ten most recent fiscal years ended August 31,
1997 or the life of the fund if shorter for EVERGREEN MONEY MARKET FUND and
EVERGREEN TAX EXEMPT MONEY MARKET FUND has been audited by Price Waterhouse LLP,
each Fund's independent accountants, and for EVERGREEN TREASURY MONEY MARKET
FUND and EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND has been audited by
KPMG Peat Marwick LLP, each Fund's independent auditors. A report of Price
Waterhouse LLP or KPMG Peat Marwick LLP, as the case may be, on the audited
information with respect to each Fund is incorporated by reference in the Fund's
SAI. The following information for each Fund should be read in conjunction with
the financial statements and related notes which are incorporated by reference
in the Fund's SAI.
Further information about each Fund's performance is contained in the
Funds' Annual Report to shareholders, which may be obtained without charge.
EVERGREEN MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 4, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
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.
EVERGREEN MONEY MARKET FUND -- CLASS B SHARES
<TABLE>
<CAPTION>
CLASS B SHARES
JANUARY 26, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
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.
EVERGREEN MONEY MARKET FUND -- CLASS C SHARES
<TABLE>
<CAPTION>
CLASS C SHARES
AUGUST 1, 1997
(COMMENCEMENT OF
CLASS OPERATIONS) TO
AUGUST 31, 1997
<S> <C>
PER SHARE DATA:
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 (c)........................................................................................ 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.
EVERGREEN TAX EXEMPT MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 5, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
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.
EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
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>
PER SHARE DATA:
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.
EVERGREEN TREASURY MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
EIGHT MONTHS MARCH 6, 1991
YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF
AUGUST 31, AUGUST 31, DECEMBER 31, CLASS OPERATIONS) TO
1997 1996 1995 (B) 1994 1993 1992 DECEMBER 31, 1991
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............ $ 1.00 $ 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 0.04
Less distributions to shareholders from net
investment income........................ (0.05) (0.05) (0.03) (0.04) (0.03) (0.03) (0.04)
Net asset value end of year.................. $ 1.00 $ 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% 4.46%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses............................. 0.72% 0.69% 0.63%(a) 0.50% 0.48% 0.48% 0.47%(a)
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% 1.08%(a)
Net investment income...................... 4.73% 4.76% 5.30%(a) 3.91% 2.70% 3.22% 4.95%(a)
Net assets end of year (millions)............ $2,485 $2,608 $1,178 $ 755 $ 261 $ 209 $ 100
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
NAME CHANGES
Effective January 12, 1998, Evergreen Tax Exempt Money Market Fund will
be known as Evergreen Municipal Money Market Fund and Evergreen Pennsylvania Tax
Free Money Market Fund will be known as Evergreen Pennsylvania Municipal Money
Market Fund.
The name of the distributor of the Funds has been changed to Evergreen
Distributor, Inc.; the name of the administrator for certain of the Funds has
been changed to Evergreen Investment Services, Inc.; and the name of the
transfer agent for the Funds has been changed to Evergreen Service Company.
INVESTMENT OBJECTIVES AND POLICIES
Effective January 9, 1998, EVERGREEN TAX EXEMPT MONEY MARKET FUND and
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND adopted a nonfundamental
policy permitting it, under normal circumstances, to invest its assets so that
at least 80% of its annual interest income is exempt from federal income tax
other than the federal alternative minimum tax ("AMT").
INVESTMENT ADVISERS
Disclosure regarding the Funds' subadministrator is hereby deleted.
EXCHANGE PRIVILEGES
You may exchange shares of a Fund for shares of another Evergreen fund by
calling or writing to Evergreen Service Company or by using the Evergreen
Express Line. If the shares being tendered for exchange are still subject to a
contingent deferred sales charge or are eligible for conversion in a specified
time, such remaining charge or remaining time will carry over to the shares
being acquired in the exchange transaction.
PERFORMANCE INFORMATION
The Funds may quote their "total return" or "yield" for specified periods
in advertisements, reports, or other communications to shareholders. Total
return and yield are computed separately for each Class of shares. Performance
data for one or more classes may be included in any advertisement or sales
literature using performance data of a Fund.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE CLASS Y PROSPECTUS OF
EVERGREEN MONEY MARKET FUND, EVERGREEN TAX EXEMPT MONEY MARKET FUND,
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND, AND EVERGREEN TREASURY MONEY
MARKET EVERGREEN MONEY MARKET FUNDS
THE CLASS Y PROSPECTUS OF THE FUNDS IS HEREBY SUPPLEMENTED AS FOLLOWS:
At a joint special meeting of shareholders held on December 15, 1997, the
shareholders approved EVERGREEN MONEY MARKET FUND'S reorganization as a separate
series of the Evergreen Money Market Trust, which was organized on September 17,
1997. In connection with the reorganization, the investment objective(s) of
EVERGREEN MONEY MARKET FUND is now "nonfundamental" (i.e., changeable by vote of
the Board of Trustees without a shareholder vote). In addition, each EVERGREEN
MONEY MARKET FUND is now subject to certain standardized investment restrictions
as set forth in the Fund's Statement of Additional Information.
EXPENSE INFORMATION
The "Expense Information" section is replaced entirely by the following:
The tables below are designed to help you understand the various expenses
that you will bear, directly or indirectly, when you invest in a Fund.
Shareholder transaction expenses are fees paid directly from your account when
you buy or sell shares. THERE ARE NO SHAREHOLDER TRANSACTION EXPENSES.
Annual operating expenses reflect the normal operating expenses of a
Fund, and include costs such as management, distribution and other fees. The
tables below show each Fund's actual annual operating expenses for the fiscal
period ended August 31, 1997. The example shows what you would pay if you
invested $1,000 over periods indicated. The example assumes that you reinvest
all of your dividends and that the Fund's average annual return will be 5%. THE
EXAMPLES ARE FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE FUND'S ACTUAL
EXPENSES AND RETURNS WILL VARY. For a more complete description of the various
costs and expenses borne by the Fund see "Purchase and Redemption of Shares" and
"General Information -- Other Classes of Shares."
EVERGREEN MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
(AFTER REIMBURSEMENTS)(1)
Management Fees 0.41%
12b-1 Fees --
Other Expenses 0.02%
Total 0.43%
EXAMPLE
Class Y
After 1 Year $4
After 3 Years $14
After 5 Years $24
After 10 Years $54
EVERGREEN TAX EXEMPT MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
(AFTER REIMBURSEMENTS)(1)
Management Fees 0.47%
12b-1 Fees --
Other Expenses 0.06%
Total 0.53%
EXAMPLE
Class Y
After 1 Year $ 5
After 3 Years $17
After 5 Years $30
After 10 Years $66
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
(AFTER REIMBURSEMENTS)(1)
Management Fees 0.31%
12b-1 Fees --
Other Expenses 0.10%
Total 0.41%
EXAMPLE
Class Y
After 1 Year $ 4
After 3 Years $13
After 5 Years $23
After 10 Years $52
EVERGREEN TREASURY MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
Management Fees 0.35%
12b-1 Fees --
Other Expenses 0.07%
Total 0.42%
EXAMPLE
Class Y
After 1 Year $ 4
After 3 Years $13
After 5 Years $24
After 10 Years $53
(1) First Union National Bank ("FUNB") has agreed to reimburse each Fund to the
extent that each Fund's aggregate annual operating expenses exceed 1.00% of
average net assets for any fiscal year. FUNB currently expects to continue
such expense limitations through January 31, 1998, but may, however, cease
these voluntary expense reimbursements at any time. For the fiscal year
ended August 31, 1997, FUNB reimbursed management fees of the Funds. Absent
such reimbursements, each Fund would have paid the expenses equal to the
following percentages of net assets:
<TABLE>
<CAPTION>
MANAGEMENT TOTAL FUND OPERATING
FEES EXPENSES (WITHOUT
(WITHOUT WAIVERS AND/OR
FUND WAIVER) REIMBURSEMENT)
<S> <C> <C>
Evergreen Money Market Fund
Class Y............................................................................ 0.46% 0.54%
Evergreen Tax Exempt Money Market Fund
Class Y............................................................................ 0.50% 0.56%
Evergreen Pennsylvania Tax Free Money Market Fund
Class Y............................................................................ 0.40% 0.43%
</TABLE>
FINANCIAL HIGHLIGHTS
The "Financial Highlights" section is replaced entirely by the following:
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the ten most recent fiscal years ended August 31,
1997 or the life of the fund if shorter for EVERGREEN MONEY MARKET FUND and
EVERGREEN TAX EXEMPT MONEY MARKET FUND has been audited by Price Waterhouse LLP,
each Fund's independent accountants, and for EVERGREEN TREASURY MONEY MARKET
FUND and EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND has been audited by
KPMG Peat Marwick LLP, each Fund's independent auditors. A report of Price
Waterhouse LLP or KPMG Peat Marwick LLP, as the case may be, on the audited
information with respect to each Fund is incorporated by reference in the Fund's
SAI. The following information for each Fund should be read in conjunction with
the financial statements and related notes which are incorporated by reference
in the Fund's SAI.
Further information about each Fund's performance is contained in the
Funds' Annual Report to shareholders, which may be obtained without charge.
EVERGREEN MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
NOVEMBER 2, 1987
TEN MONTHS (COMMENCEMENT OF
ENDED CLASS
YEAR ENDED AUGUST 31, AUGUST 31, 1994 YEAR ENDED OCTOBER 31, OPERATIONS) TO
1997 1996 1995 (B) 1993 1992 1991 1990 1989 OCTOBER 31, 1988
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of
year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income............ 0.05 0.05 0.05 0.03 0.03 0.04 0.07 0.08 0.09 0.07
Less distributions to
shareholders from net
investment income.............. (0.05) (0.05) (0.05) (0.03) (0.03) (0.04) (0.07) (0.08) (0.09) (0.07)
Net asset value end of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN....................... 5.27% 5.36% 5.38% 2.92% 3.23% 4.23% 6.73% 8.40% 9.39% 7.37%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses................... 0.48% 0.45% 0.53% 0.32%(a) 0.39% 0.36% 0.30% 0.35% 0.38% 0.43%(a)
Total expenses excluding
indirectly paid expenses....... 0.48% -- -- -- -- -- -- -- -- --
Total expenses excluding waivers
and/or reimbursements.......... 0.54% 0.59% 0.73% 0.71%(a) 0.71% 0.72% 0.70% 0.69% 0.75% 0.93%(a)
Net investment income............ 5.13% 5.16% 5.26% 3.46%(a) 3.19% 4.18% 6.53% 8.08% 9.42% 7.26%(a)
Net assets end of year
(millions)....................... $ 635 $ 671 $ 283 $ 273 $ 299 $ 358 $ 438 $ 458 $ 408 $ 161
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from October 31 to August 31.
EVERGREEN TAX EXEMPT MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
NOVEMBER 2, 1988
(COMMENCEMENT OF
YEAR ENDED AUGUST 31, CLASS OPERATIONS) TO
1997 1996 1995 1994 1993 1992 1991 1990 AUGUST 31, 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning
of year................ $ 1.00 $ 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 0.05
Less distributions to
shareholders from net
investment income.... (0.03) (0.03) (0.04) (0.02) (0.03) (0.04) (0.05) (0.06) (0.05)
Net asset value end of
year................... $ 1.00 $ 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% 5.51%
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% 0.24%(a)
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% 0.79%(a)
Net investment
income............... 3.37% 3.44% 3.53% 2.47% 2.58% 3.72% 5.23% 5.94% 6.77%(a)
Net assets end of year
(millions)............. $ 378 $ 617 $ 421 $ 402 $ 401 $ 417 $ 510 $ 311 $ 109
</TABLE>
(a) Annualized.
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31, FEBRUARY 29, FEBRUARY 28,
1997 1996 (B) 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
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>
PER SHARE DATA:
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.
EVERGREEN TREASURY MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
EIGHT MONTHS MARCH 6, 1991
YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF
AUGUST 31, AUGUST 31, DECEMBER 31, CLASS OPERATIONS) TO
1997 1996 1995 (B) 1994 1993 1992 DECEMBER 31, 1991
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year...... $ 1.00 $ 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 0.05
Less distributions to shareholders
from net investment income......... (0.05) (0.05) (0.04) (0.04) (0.03) (0.04) (0.05)
Net asset value end of year............ $ 1.00 $ 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% 4.66%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses....................... 0.42% 0.39% 0.33%(a) 0.20% 0.18% 0.17% 0.20%(a)
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% 0.52%(a)
Net investment income................ 5.02% 5.12% 5.60%(a) 3.78% 3.00% 3.61% 5.53%(a)
Net assets end of year (millions)...... $ 547 $ 760 $ 277 $ 163 $ 366 $ 286 $ 265
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
NAME CHANGES
Effective January 12, 1998, Evergreen Tax Exempt Money Market Fund will be
known as Evergreen Municipal Money Market Fund and Evergreen Pennsylvania Tax
Free Money Market Fund will be known as Evergreen Pennsylvania Municipal Money
Market Fund.
The name of the distributor of the Funds has been changed to Evergreen
Distributor, Inc.; the name of the administrator for certain of the Funds has
been changed to Evergreen Investment Services, Inc.; and the name of the
transfer agent for the Funds has been changed to Evergreen Service Company.
INVESTMENT OBJECTIVES AND POLICIES
Effective January 9, 1998, each of EVERGREEN TAX EXEMPT MONEY MARKET FUND
AND EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND adopted a nonfundamental
policy permitting it, under normal circumstances, to invest its assets so that
at least 80% of its annual interest income is exempt from federal income tax
other than the federal alternative minimum tax ("AMT").
INVESTMENT ADVISERS
Disclosure regarding the Funds' subadministrator is hereby deleted.
EXCHANGE PRIVILEGES
You may exchange shares of a Fund for shares of another Evergreen fund
identified above by calling or writing to Evergreen Service Company or by using
the Evergreen Express Line. If the shares being tendered for exchange are still
subject to a contingent deferred sales charge or are eligible for conversion in
a specified time, such remaining charge or remaining time will carry over to the
shares being acquired in the exchange transaction.
PERFORMANCE INFORMATION
The Funds may quote their "total return" or "yield" for specified periods
in advertisements, reports, or other communications to shareholders. Total
return and yield are computed separately for each Class of shares. Performance
data for one or more classes may be included in any advertisement or sales
literature using performance data of a Fund.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION OF
EVERGREEN MONEY MARKET FUND, EVERGREEN TAX EXEMPT MONEY MARKET FUND,
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND AND EVERGREEN TREASURY MONEY
MARKET FUND
The Statement of Additional Information of each of the Funds is hereby
supplemented as follows:
EXPENSES
The tables below list the total dollar amounts paid by each Fund for
expenses incurred for the periods specified.
<TABLE>
<CAPTION>
Aggregate Dollar
Aggregate Amount of
Dollar Underwriting
Amount of Commissions
Advisory Class A Class B Class C Class K Underwriting Retained by EIS or
Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees Commissions EDI
======================== ======== ========== ========== ========== ========== ============ ==================
<S> <C> <C> <C> <C> <C> <C> <C>
1997 FUND EXPENSES
Money Mkt (1) $13,092,396 $6,232,581 $122,419 $4,266 $136 N/A N/A
Tax Exempt Money Mkt (1) $5,695,367 $1,988,796 N/A N/A N/A N/A N/A
PA Tax Free Money Mkt (1) $275,516 $90,259* N/A N/A N/A N/A N/A
Treasury Money Mkt (1) $10,831,288 $7,263,329 N/A N/A N/A N/A N/A
1996 FUND EXPENSES
Money Mkt (1) $8,346,173 $3,938,802 $68,985 $0 $0 N/A N/A
Tax Exempt Money Mkt (1) $5,540,924 $1,898,665 N/A N/A N/A N/A N/A
PA Tax Free Money Mkt (2) $148,591 $24,476 N/A N/A N/A N/A N/A
Treasury Money Mkt (1) $8,857,503 $6,381,827 N/A N/A N/A N/A N/A
1995 FUND EXPENSES
Money Mkt (4) $1,831,518 $280,287 $9,349 N/A N/A N/A N/A
Tax Exempt Money Mkt (4) $2,329,035 $240,973 N/A N/A N/A N/A N/A
PA Tax Free Money Mkt (3) $85,049 N/A N/A N/A N/A N/A
Treasury Money Mkt (4) $2,814,251 $1,896,720 N/A N/A N/A N/A N/A
========================= ========== ========== ========== ========== ========== ============= ===================
</TABLE>
(1) For fiscal year ended August 31 of each year.
(2) For fiscal period March 1 to August 31, 1996.
(3) For fiscal year ended February 28, 1995.
(4) For fiscal period January 1 to August 31, 1995.
* Of this amount, $61,039 was waived by the Distributor.
In accordance with voluntary expense limitations in effect during the
fiscal year or period ended August 31, 1997, Evergreen Asset or CMG voluntarily
reimbursed or waived advisory fees, as follows:
Money Market $1,482,584
Tax Exempt Money Market 183,559
PA Tax Free Money Market 62,049
Treasury Money Market 132,244
BROKERAGE COMMISSIONS
The Funds paid no brokerage commissions during each fiscal year or period
ended August 31, 1997, 1996 and 1995.
YIELD CALCULATIONS
Each Fund may quote a "Current Yield" or "Effective Yield" from time to
time. The Current Yield is an annualized yield based on the actual total return
for a seven-day period. The Effective Yield is an annualized yield based on a
compounding of the Current Yield. These yields are each computed by first
determining the "Net Change in Account Value" for a hypothetical account having
a share balance of one share at the beginning of a seven-day period ("Beginning
Account Value"), excluding capital changes. The Net Change in Account Value will
generally equal the total dividends declared with respect to the account.
The yields are then computed as follows:
Current Yield = Beginning Account Value x 365/7
Effective Yield = (1 + Total Dividend for 7 days) 365/7-1 Tax Equivalent Yield =
Effective Yield
- ----------------------
1 - Fed Tax rate + [state Tax Rate - (state Tax Rate x Fed Tax Rate]
Yield fluctuations may reflect changes in a Fund's net investment income,
and portfolio changes resulting from net purchases or net redemptions of the
Fund's shares may affect the yield. Accordingly, a Fund's yield may vary from
day to day, and the yield stated for a particular past period is not necessarily
representative of its future yield. Since the Funds use the amortized cost
method of net asset value computation, it does not anticipate any change in
yield resulting from any unrealized gains or losses or unrealized appreciation
or depreciation not reflected in the yield computation, or change in net asset
value during the period used for computing yield. If any of these conditions
should occur, yield quotations would be suspended. A Fund's yield is not
guaranteed, and the principal is not insured.
Yield information is useful in reviewing a Fund's performance, but because
yields fluctuate, such information cannot necessarily be used to compare an
investment in a Fund's shares with bank deposits, savings accounts and similar
investment alternatives which often provide an agreed or guaranteed fixed yield
for a stated period of time. Shareholders should remember that yield is a
function of the kind and quality of the instruments in the Funds' investment
portfolios, portfolio maturity, operating expenses and market conditions.
It should be recognized that in periods of declining interest rates the
yields will tend to be somewhat higher than prevailing market rates, and in
periods of rising interest rates the yields will tend to be somewhat lower.
Also, when interest rates are falling, the inflow of net new money to a Fund
from the continuous sale of its shares will likely be invested in instruments
producing lower yields than the balance of the Fund's investments, thereby
reducing the current yield of the Fund. In periods of rising interest rates, the
opposite can be expected to occur.
The current yield and effective yield of each Fund (and for Evergreen Tax
Exempt Money Market Fund, and Evergreen Pennsylvania Tax Free Money Market Fund,
the tax equivalent yield) for the seven-day period ended August 31, 1997 for
each class of shares offered by the Funds is set forth in the table below. The
table assumes a federal tax rate of 36% for Evergreen Tax Exempt Money Market
Fund, and a combined federal and state tax rate for Evergreen Pennsylvania Tax
Free Money Market Fund of 37.8%.
Current Effective Tax Equivalent
Yield Yield Yield
Money Market
Class A 4.91% 5.03% N/A
Class B 4.20% 4.29% N/A
Class C 4.20% 4.29% N/A
Class K 4.90% 5.02% N/A
Class Y 5.20% 5.34% N/A
Tax Exempt Money Market
Class A 2.89% 2.93% 4.52%
Class Y 3.19% 3.24% 4.98%
Treasury Money Market
Class A 4.87% 4.99% N/A
Class Y 5.18% 5.31% N/A
Pennsylvania Tax Free Money Market
Class A 2.89% 2.93% 4.65%
Class Y 2.99% 3.03% 4.81%
TRUSTEE COMPENSATION
Listed below is the compensation paid to Trustees for the fiscal year ended
August 31, 1997.
Compensation Compensation
From From Registration
Compensation Registrant And Fund Complex
Laurence B. Ashkin $ 5,747.00 $ 56,200.00
Charles A. Austin III* $ 0.00 $ 48,200.00
K. Dun Gifford* $ 0.00 $ 39,600.00
James S. Howell $ 7,368.00 $ 89,229.00
Leroy Keith Jr.* $ 0.00 $ 45,200.00
Gerald M. McDonnell $ 5,831.00 $ 81,001.00
Thomas L. McVerry $ 6,498.00 $ 81,468.00
William Walt Pettit $ 6,002.00 $ 79,009.00
David M. Richardson* $ 0.00 $ 48,200.00
Russell A. Salton III $ 6,072.00 $ 81,601.00
Michael S. Scofield $ 5,572.00 $ 77,501.00
Richard J. Shima $ 4,180.00 $ 58,667.00
* Not a Trustee of the Trust for the relevant fiscal period.
PRINCIPAL HOLDERS OF FUND SHARES
As of the date of this SAI, the officers and Trustees of the Trust owned as
a group less than 1% of the outstanding Class A, Class B, Class C, Class K or
Class Y shares of any Fund as applicable.
Set forth below is information with respect to each person who, to each
Fund's knowledge, owned beneficially or of record more than 5% of a class of a
Fund's outstanding shares as of November 30, 1997.
<TABLE>
<CAPTION>
Money Market
Class A Class B Class C
- ------------ ------- -------
<S> <C> <C> <C> <C>
FUNB 73.61% NONE Michael J. Grimaldi 17.48%
Attn: Cap Finance GL 7 Edgeworth Pl.
230 S. Tryon St. New Brunswick, NJ 08901
Charlotte, NC
First Union Brokerage 10.17% State Street Bank & Trust 9.42%
Services Co. Cust.
Money Mkt Omnibus Acct Rollover IRA FBO
CP12-NC1167 Mark S. Matlock MD
301 S. College St. 2817 McClelland Blvd. #125
Charlotte, NC 28115 Joplin, MO 64804-1630
FUNB 6.33% Robert Samuel Klepper 5.29%
Trust Accounts Susan Leslie Klepper Comm
Attn: Ginney Batten Property
CMG-115102 House Account
401 S. Tryon St., 3rd Floor 424 Keel Lane
Charlotte, MC 282-1911 Redwood Shoes, CA 94065
Money Market
Class K Class Y
- ------------ -------
Prudential Securities FBO 43.59% First Union National Bank 40.86%
Charles R Fuchs & Trust Accounts
Phyllis A. Fuchs Jt Ten Attn: Ginny Batten CMG-1151-2
22 Winding Way 401 S. Tryon St. 3rd Floor
Wayne, NJ 07470-5957 Charlotte, NC 28202-1911
Prudential Securities FBO 38.63% Pitcairn Trust Company 8.23%
Mr. Marlene Silver Ex One Pitcairn Place
Est Elaine B. Ames Jenkintown, PA 19046
6038 Sweetbriar Cv
Memphis, TN 38120-2514
Interstate/Johnson Lane 10.69%
FBO 329-04563-12
Interstate Tower
PO Box 1220
Charlotte, NC 28201-1220
Wexford Clearing Services Corp FBO 7.09%
Marian V. Dingman
9001 Neill Lake Road
Eden Prairie, MN 55347-2046
Tax Exempt Money Market
Class A Class Y
- ----------------------- -------
FUNB 80.61% Evergreen Tax-Exempt Money Market 13.31%
Attn: Cap Finance GL "Y" Share Fund Cash A/C
230 S. Tryon St. C/O FUNB for Customers
Charlotte, NC 28202-3215 One First Union Center
301 South College St.
Charlotte, NC 28288-0601
First Union Brokerage Services 10.71%
Money Market Omnibus Account
CP13-NC1167
301 S. College St.
Charlotte, NC 28115
Treasury Money Market
Class A Class Y
- --------------------- -------
First Union National Bank 20.45% First Union National Bank 85.32%
Trust Accounts Trust Accounts
Attn: Ginny Batten Attn: Ginny Batten CMG-1151
11th Floor CMG-1151 301 S. Tryon St., 3rd Floor
301 S. Tryon St. Charlotte, NC 28288-0002
Charlotte, NC 28202-1910
FUNB 67.59% Evergreen Money Market "Y" Fund 7.36%
Attn: Cap Finance GL Reinvest A/C C/O FUNB for Customers
230 S. Tryon St. One First Union Center
Charlotte, NC 28202-1164 301 South College St.
Charlotte, NC 28288-0601
Pennsylvania Tax Free Money Market
Class A Class Y
- ---------------------------------- -------
FUNB 90.64% First Union National Bank 31.79%
Attn: Cap Finance GL Trust Accounts
230 S. Tryon St. Attn: Ginny Batten CMG-1151-2
Charlotte, NC 28202-3215 401 S. Tryon St., 3rd Floor
Charlotte, NC 28202-1911
First Union Brokerage Services 8.76% Johnathan B. Detwiler 11.90%
Money Market Omnibus Account PO Box 69
CP13-NC1167 Phoenixville, PA 19460-0069
301 S. College St.
Charlotte, NC 28115
Agnes C. Kim 7.47%
760 Conshohocken State Rd.
Gladuyne, PA 19035-1416
Dalck Feith & Rose Feith Jt Ten 6.71%
8134 High School Road
Elkins Park, PA 19027-2453
First Union Brokerage Services 5.54%
Money Market Omnibus Account
CP13-NC1167
301 S. College Street
Charlotte, NC 28115
</TABLE>
FINANCIAL STATEMENTS
The audited financial statements and the reports thereon are hereby
incorporated by reference to each Fund's Annual Report, a copy of which may be
obtained without charge from Evergreen Service Company, Box 2121, Boston,
Massachusetts 02106-2121.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE CLASS A AND B PROSPECTUS
OF
EVERGREEN FLORIDA MUNICIPAL BOND FUND , EVERGREEN GEORGIA MUNICIPAL BOND FUND,
EVERGREEN NORTH CAROLINA MUNICIPAL BOND FUND, EVERGREEN SOUTH CAROLINA MUNICIPAL
BOND FUND, EVERGREEN VIRGINIA MUNICIPAL BOND FUND, EVERGREEN FLORIDA HIGH INCOME
MUNICIPAL BOND FUND
THE CLASS A AND B PROSPECTUS OF THE FUNDS IS HEREBY SUPPLEMENTED AS FOLLOWS:
EVERGREEN NEW JERSEY TAX-FREE INCOME FUND is no longer offered through
this Prospectus. The Fund is now offered through a prospectus dated July 21,
1997, as amended from time to time.
WITH RESPECT TO EACH FUND OTHER THAN EVERGREEN FLORIDA MUNICIPAL BOND FUND:
At a joint special meeting of shareholders held on December 15, 1997, the
shareholders approved each Fund's reorganization as a separate series of the
Evergreen Municipal Trust, which was organized on September 17, 1997. In
connection with the reorganization, the investment objective(s) of each Fund is
now "nonfundamental" (i.e., changeable by vote of the Board of Trustees without
a shareholder vote). In addition, each Fund is now subject to certain
standardized investment restrictions as set forth in the Fund's Statement of
Additional Information.
EXPENSE INFORMATION
The "Expense Information" section is replaced entirely by the following:
The tables below summarize the shareholder transaction costs, which are
fees paid directly from your account when you buy or sell shares of a Fund,
associated with an investment in Class A and Class B shares of each Fund. For
further information see "Purchase and Redemption of Fund Shares" and "General
Information -- Other Classes of Shares".
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES Class A Shares Class B Shares
<S> <C> <C>
Maximum Sales Charge Imposed on Purchases 4.75%(1) None
(as a % of offering price)
Contingent Deferred Sales Charge (as a % of original purchase None 5.00%(2)(3)
price or redemption proceeds, whichever is lower)
</TABLE>
(1) The Funds do not charge a front-end sales charge on purchase of $1 million
or more, but they do charge a contingent deferred sales charge of 1.00% if
you redeem those shares within one year after your purchase.
(2) The deferred sales charge on Class B shares declines from 5.00% to 1.00% of
amounts redeemed within six years after the month of purchase. The Funds do
not charge a contingent deferred sales charge on redemptions made after
that. See "Shareholder Information" for more information.
(3) Long-term shareholders may pay more than the economic equivalent front-end
sales charges permitted by the National Association of Securities Dealers,
Inc. See "Purchase and Redemption of Shares" for more information.
Annual operating expenses reflect the normal operating expenses of a
Fund, and include costs such as management, distribution and other fees. The
tables below show each Fund's actual annual operating expenses for the fiscal
year ended August 31, 1997. The example shows what you would pay if you invested
$1,000 over periods indicated. The example assumes that you reinvest all of your
dividends and that the Fund's average annual return will be 5%. THE EXAMPLES ARE
FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE FUND'S ACTUAL EXPENSES AND RETURNS
WILL VARY. For a more complete description of the various costs and expenses
borne by the Fund see "Purchase and Redemption of Shares" and "General
Information -- Other Classes of Shares."
EVERGREEN FLORIDA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING Assuming Assuming
EXPENSES Redemption no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class A Class B Class B
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.45% 0.45%
After 1 Year $ 56 $ 67 $ 17
12b-1 Fees(1) 0.08% 1.00%
After 3 Years $ 69 $ 82 $ 52
Other Expenses 0.21% 0.21%
After 5 Years $ 83 $ 110 $ 90
After 10 Years $ 125 $ 156 $156
Total 0.74% 1.66%
</TABLE>
EVERGREEN GEORGIA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING Assuming Assuming
EXPENSES Redemption no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class A Class B Class B
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.00% 0.00%
After 1 Year $ 59 $ 67 $ 17
12b-1 Fees(1) 0.25% 1.00%
After 3 Years $ 79 $ 84 $ 54
Other Expenses 0.70% 0.70%
After 5 Years $ 100 $ 112 $ 92
After 10 Years $ 161 $ 171 $171
Total 0.95% 1.70%
</TABLE>
EVERGREEN NORTH CAROLINA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
EXAMPLES
Assuming Assuming
Redemption no
ANNUAL OPERATING EXPENSES at End of Period Redemption
Class A Class B Class A Class B Class B
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.50% 0.50%
.50% After 1 Year $ 61 $ 69 $ 19
12b-1 Fees 0.25% 1.00%
After 3 Years $ 84 $ 88 $ 58
Other Expenses 0.36% 0.36%
After 5 Years $ 108 $ 121 $101
After 10 Years $ 178 $ 189 $189
Total 1.11% 1.86%
</TABLE>
EVERGREEN SOUTH CAROLINA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING Assuming Assuming
EXPENSES Redemption no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class A Class B Class B
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.00% 0.00%
After 1 Year $ 59 $ 68 $ 18
12b-1 Fees(1) 0.25% 1.00%
After 3 Years $ 80 $ 84 $ 54
Other Expenses 0.73% 0.73%
After 5 Years $ 101 $ 114 $ 94
After 10 Years $ 164 $ 175 $175
Total 0.98% 1.73%
</TABLE>
EVERGREEN VIRGINIA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING Assuming Assuming
EXPENSES Redemption no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class A Class B Class B
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.00% 0.00%
After 1 Year $ 60 $ 68 $ 18
12b-1 Fees(1) 0.25% 1.00%
After 3 Years $ 81 $ 86 $ 56
Other Expenses 0.78% 0.78%
After 5 Years $ 104 $ 116 $ 96
After 10 Years $ 170 $ 180 $180
Total 1.03% 1.78%
</TABLE>
EVERGREEN FLORIDA HIGH INCOME MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING Assuming Assuming
EXPENSES Redemption no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class A Class B Class B
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.36% 0.36%
After 1 Year $ 59 $ 67 $ 17
12b-1 Fees(1) 0.25% 1.00%
After 3 Years $ 77 $ 81 $ 51
Other Expenses 0.27% 0.27%
After 5 Years $ 96 $ 109 $ 89
After 10 Years $ 153 $ 163 $163
Total 0.88% 1.63%
</TABLE>
(1) Although Class A shares can pay up to 0.75% of average net assets as a 12b-1
fee, for the foreseeable future such fees have been limited to 0.25% of
average net assets. For Class B shares, a portion of the 12b-1 fees
equivalent to 0.25% of average annual assets will be shareholder
servicing-related. Distribution-related 12b-1 fees will be limited to 0.75%
of average annual assets as permitted under the rules of the National
Association of Securities Dealers, Inc. ("NASD"). In addition, a portion of
FLORIDA MUNICIPAL BOND FUND'S 12b-1 fees are currently being waived. Absent
such waivers, the Fund's 12b-1 fees would have been 0.25%.
(2) First Union National Bank ("FUNB") has agreed to reimburse each Fund to the
extent that each Fund's aggregate annual operating expenses exceed 1.00% of
average net assets for any fiscal year. FUNB may cease these voluntary
expense reimbursements at any time. For the fiscal year ended August 31,
1997, FUNB reimbursed and/or waived certain other expenses and/or management
fees of the Funds. Absent such reimbursements and/or waivers, each Fund
would have paid the expenses equal to the following percentages of net
assets:
<TABLE>
<CAPTION>
OTHER EXPENSES TOTAL FUND OPERATING
(WITHOUT WAIVERS EXPENSES (WITHOUT
MANAGEMENT FEES AND/OR WAIVERS AND/OR
FUND (WITHOUT WAIVER) REIMBURSEMENT) REIMBURSEMENT)
<S> <C> <C> <C>
Evergreen Florida Municipal Bond Fund
Class A........................................................ 0.50% 0.21% 0.96%
Class B........................................................ 0.50% 0.21% 1.71%
Evergreen Georgia Municipal Bond Fund
Class A........................................................ 0.50% 1.08% 1.83%
Class B........................................................ 0.50% 1.08% 2.58%
Evergreen South Carolina Municipal Bond Fund
Class A........................................................ 0.50% 1.41% 2.16%
Class B........................................................ 0.50% 1.41% 2.91%
Evergreen Virginia Municipal Bond Fund
Class A........................................................ 0.50% 1.09% 1.84%
Class B........................................................ 0.50% 1.09% 2.59%
Evergreen Florida High Income Municipal Bond Fund
Class A........................................................ 0.60% 0.27% 1.12%
Class B........................................................ 0.60% 0.27% 1.87%
</TABLE>
FINANCIAL HIGHLIGHTS
The "Financial Highlights" section is replaced entirely by the following:
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the ten most recent fiscal years or the life of
the Fund if shorter for EVERGREEN GEORGIA MUNICIPAL BOND FUND, EVERGREEN NORTH
CAROLINA MUNICIPAL BOND FUND, EVERGREEN SOUTH CAROLINA MUNICIPAL BOND FUND and
EVERGREEN VIRGINIA MUNICIPAL BOND FUND has been audited by KPMG Peat Marwick
LLP, each Fund's independent auditors. The information in the tables for
EVERGREEN FLORIDA MUNICIPAL BOND FUND for the periods ended August 31, 1997,
August 31, 1996 and August 31, 1995 has been audited by KPMG Peat Marwick LLP,
the Fund's current independent auditors. The information in the tables for each
of the years in the three-year period ended April 30, 1995 was audited by the
Fund's prior independent auditors. The information in the tables for EVERGREEN
FLORIDA HIGH INCOME MUNICIPAL BOND FUND for each of the periods from May 1, 1995
through August 31, 1997 has been audited by Price Waterhouse LLP, the Fund's
current independent auditors. The information in the tables for EVERGREEN
FLORIDA HIGH INCOME MUNICIPAL BOND FUND for each of the years in the two-year
period ended April 30, 1995 and for the period June 17, 1992 (commencement of
operations) through April 30, 1993 was audited by the Fund's prior independent
auditors. A report of KPMG Peat Marwick LLP or Price Waterhouse LLP, as the case
may be, on the audited information with respect to each Fund is incorporated by
reference in the Fund's Statement of Additional Information. The following
information for each Fund should be read in conjunction with the financial
statements and related notes which are incorporated by reference in the Fund's
Statement of Additional Information.
Further information about each Fund's performance is contained in the
Fund's Annual Report to shareholders, which may be obtained without charge.
EVERGREEN FLORIDA MUNICIPAL BOND FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
YEAR ENDED FOUR MONTHS
AUGUST 31, ENDED YEAR ENDED APRIL 30,
1997 1996 AUGUST 31, 1995 (C)* 1995 (C) 1994 (C)
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year....................... $9.70 $9.74 $9.61 $9.52 $9.95
Income from investment operations:
Net investment income................................... 0.51 0.54 0.19 0.54 0.56
Net realized and unrealized gain (loss) on
investments........................................... 0.35 (0.04) 0.22 0.11 (0.36)
Total from investment operations...................... 0.86 0.50 0.41 0.65 0.20
Less distributions from:
Net investment income................................... (0.52) (0.54) (0.19) (0.54) (0.56)
Distributions in excess of net investment income........ 0 0 (0.03) 0 0
Net realized gains on investments....................... (0.06) 0 (0.06) (0.02) (0.07)
Paid-in capital......................................... 0 0 0 0 0
Total distributions................................... (0.58) (0.54) (0.28) (0.56) (0.63)
Net asset value end of year........................... $9.98 $9.70 $9.74 $9.61 $9.52
TOTAL RETURN (B)........................................ 9.06% 5.15% 4.20% 7.05% 1.87%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses........................................ 0.74% 0.63% 0.82%(a) 0.61% 0.56%
Total expenses excluding indirectly paid expenses..... 0.74% -- -- -- --
Total expenses excluding waivers and reimbursements... 0.91% 0.95% 1.05%(a) -- --
Net investment income................................. 5.22% 5.46% 4.89%(a) 5.73% 5.37%
Portfolio turnover rate................................. 41% 30% 29% 53% 32%
Net assets end of year (thousands)...................... $105,673 $115,723 $136,449 $168,542 $199,612
</TABLE>
<TABLE>
<CAPTION>
CLASS A SHARES
MAY 11, 1988
(COMMENCEMENT OF
CLASS
OPERATIONS)
THROUGH
YEAR ENDED APRIL 30, APRIL 30, 1989
1993 (C) 1992 (C) 1991 (C) 1990 (C) (C)
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............................ $9.35 $9.21 $8.80 $9.09 $8.82
Income from investment operations:
Net investment income........................................ 0.56 0.61 0.66 0.58 0.47
Net realized and unrealized gain (loss) on investments....... 0.67 0.22 0.43 (0.24) 0.22
Total from investment operations........................... 1.23 0.83 1.09 0.34 0.69
Less distributions from:
Net investment income........................................ (0.56) (0.61) (0.68 ) (0.59) (0.42)
Distributions in excess of net investment income............. 0 0 0 0 0
Net realized gains on investments............................ (0.07) (0.04) 0 (0.04) 0
Paid-in capital.............................................. 0 (0.04) 0 0 0
Total distributions........................................ (0.63) (0.69) (0.68 ) (0.63) (0.42)
Net asset value end of year................................ $9.95 $9.35 $9.21 $8.80 $9.09
TOTAL RETURN (B)............................................. 13.63% 9.30% 12.87% 3.74% 9.16%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses............................................. 0.58% 0.41% 0.10% 0.10% 0.30%(a)
Total expenses excluding indirectly paid expenses.......... -- -- -- -- --
Total expenses excluding waivers and reimbursements........ -- 0.68% 0.88% 5.14% 20.40%(a)
Net investment income...................................... 5.66% 6.12% 6.55% 6.15% 5.30%(a)
Portfolio turnover rate...................................... 24% 24% 66% 82% 30%
Net assets end of year (thousands)........................... $198,286 $147,996 $75,791 $7,286 $717
</TABLE>
* The Fund changed its fiscal year end from April 30 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
(c) On June 30, 1995, ABT Florida Tax-Free Fund sold substantially all of its
net assets to Evergreen Florida Municipal Bond Fund. As ABT Florida
Tax-Free Fund is the accounting survivor, its basis of accounting for
assets and liabilities and its operating results for periods prior to June
30, 1995 have been carried forward in these financial highlights.
EVERGREEN FLORIDA MUNICIPAL BOND FUND -- CLASS B SHARES
<TABLE>
<CAPTION>
CLASS B SHARES
JUNE 30, 1995
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED AUGUST 31, THROUGH
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............................................... $9.70 $9.74 $9.67
Income from investment operations:
Net investment income........................................................... 0.42 0.44 0.07
Net realized and unrealized gain (loss) on investments.......................... 0.35 (0.04) 0.10
Total from investment operations.............................................. 0.77 0.40 0.17
Less distributions from:
Net investment income........................................................... (0.43) (0.44) (0.07)
Net realized gains on investments............................................... (0.06) 0 (0.03)
Total distributions........................................................... (0.49) (0.44) (0.10)
Net asset value end of year................................................... $9.98 $9.70 $9.74
TOTAL RETURN (B)................................................................ 8.06% 4.17% 1.49%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................................ 1.66% 1.56% 1.44%(a)
Total expenses excluding indirectly paid expenses............................. 1.66% -- --
Total expenses excluding waivers and reimbursements........................... 1.84% 1.76% 1.64%(a)
Net investment income......................................................... 4.29% 4.52% 3.22%(a)
Portfolio turnover rate......................................................... 41% 30% 29%
Net assets end of year (thousands).............................................. $31,281 $28,849 $27,351
</TABLE>
(a) Annualized.
(b) Excluding applicable sales charges.
EVERGREEN GEORGIA MUNICIPAL BOND FUND -- CLASS A AND B SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JULY 2, 1993
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED YEAR ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* DECEMBER 31, 1994 1993
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............... $9.57 $9.47 $8.74 $10.19 $10.00
Income from investment operations:
Net investment income........................... 0.49 0.48 0.33 0.48 0.20
Net realized and unrealized gain (loss) on
investments................................... 0.33 0.10 0.73 (1.45) 0.19
Total from investment operations.............. 0.82 0.58 1.06 (0.97) 0.39
Less distributions from net investment income... (0.49) (0.48) (0.33) (0.48) (0.20)
Net asset value end of year................... $9.90 $9.57 $9.47 $8.74 $10.19
TOTAL RETURN (B)................................ 8.73% 6.22% 12.28% (9.64%) 3.96%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................ 0.94% 0.88% 0.71%(a) 0.53% 0.25%(a)
Total expenses excluding indirectly paid
expenses.................................... 0.94% -- -- -- --
Total expenses excluding waivers and
reimbursements.............................. 1.83% 2.82% 2.83%(a) 3.61% 6.82%(a)
Net investment income......................... 5.00% 4.96% 5.39%(a) 5.26% 4.71%(a)
Portfolio turnover rate......................... 32% 21% 91% 147% 15%
Net assets end of year (thousands).............. $2,201 $1,954 $2,098 $1,387 $817
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
<TABLE>
<CAPTION>
CLASS B SHARES
JULY 2, 1993
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED YEAR ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* DECEMBER 31, 1994 1993
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............ $9.57 $9.47 $8.74 $10.19 $10.00
Income from investment operations:
Net investment income........................ 0.41 0.41 0.28 0.43 0.18
Net realized and unrealized gain (loss) on
investments................................ 0.33 0.10 0.73 (1.45) 0.19
Total from investment operations........... 0.74 0.51 1.01 (1.02) 0.37
Less distributions from net investment
income..................................... (0.41) (0.41) (0.28) (0.43) (0.18)
Net asset value end of year................ $9.90 $9.57 $9.47 $8.74 $10.19
TOTAL RETURN (B)............................. 7.93% 5.44% 11.72% (10.15%) 3.74%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses............................. 1.69% 1.63% 1.46%(a) 1.13% 0.75%(a)
Total expenses excluding indirectly paid
expenses................................. 1.69% -- -- -- --
Total expenses excluding waivers and
reimbursements........................... 2.58% 3.54% 3.58%(a) 4.21% 7.32%(a)
Net investment income...................... 4.25% 4.21% 4.64%(a) 4.66% 4.15%(a)
Portfolio turnover rate...................... 32% 21% 91% 147% 15%
Net assets end of year (thousands)........... $10,870 $9,271 $7,538 $ 6,912 $3,692
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
EVERGREEN NORTH CAROLINA MUNICIPAL BOND FUND -- CLASS A AND B SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 11, 1993
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED YEAR ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* DECEMBER 31, 1994 1993
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year....... $9.98 $9.95 $9.16 $10.61 $10.00
Income from investment operations:
Net investment income................... 0.49 0.49 0.33 0.49 0.46
Net realized and unrealized gain (loss)
on investments........................ 0.40 0.02 0.79 (1.45) 0.64
Total from investment operations...... 0.89 0.51 1.12 (0.96) 1.10
Less distributions from:
Net investment income................... (0.50) (0.48) (0.33) (0.49) (0.46)
Net realized gains on investments....... 0 0 0 0 (0.03)
Total distributions................... (0.50) (0.48) (0.33) (0.49) (0.49)
Net asset value end of year........... $10.37 $9.98 $9.95 $9.16 $10.61
TOTAL RETURN (B)........................ 9.11% 5.21% 12.34% (9.12%) 11.28%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses........................ 1.11% 1.08% 0.92%(a) 0.79% 0.32%(a)
Total expenses excluding indirectly
paid expenses....................... 1.11% -- -- -- --
Total expenses excluding waivers and
reimbursements...................... 1.11% 1.35% 1.27%(a) 1.18% 1.25%(a)
Net investment income................. 4.77% 4.81% 5.09%(a) 5.11% 4.91%(a)
Portfolio turnover rate................. 50% 86% 117% 126% 57%
Net assets end of year (thousands)...... $8,115 $7,989 $8,279 $ 7,979 $ 12,739
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
<TABLE>
<CAPTION>
CLASS B SHARES
JANUARY 11, 1993
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED YEAR ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* DECEMBER 31, 1994 1993
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year..... $9.98 $9.95 $9.16 $10.61 $10.00
Income from investment operations:
Net investment income................. 0.41 0.42 0.28 0.44 0.42
Net realized and unrealized gain
(loss) on investments............... 0.40 0.02 0.79 (1.45) 0.64
Total from investment operations.... 0.81 0.44 1.07 (1.01) 1.06
Less distributions from:
Net investment income................. (0.42) (0.41) (0.28) (0.44) (0.42)
Net realized gains on investments..... 0 0 0 0 (0.03)
Total distributions................. (0.42) (0.41) (0.28) (0.44) (0.45)
Net asset value end of year......... $10.37 $9.98 $9.95 $9.16 $10.61
TOTAL RETURN (B)...................... 8.30% 4.42% 11.78% (9.64%) 10.80%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses...................... 1.86% 1.83% 1.67%(a) 1.37% 0.79%(a)
Total expenses excluding indirectly
paid expenses..................... 1.86% -- -- -- --
Total expenses excluding waivers and
reimbursements.................... 1.86% 2.10% 2.02%(a) 1.76% 1.74%(a)
Net investment income............... 4.02% 4.06% 4.34%(a) 4.53% 4.47%(a)
Portfolio turnover rate............... 50% 86% 117% 126% 57%
Net assets end of year (thousands).... $48,198 $49,382 $ 49,040 $44,616 $ 45,168
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
EVERGREEN SOUTH CAROLINA MUNICIPAL BOND FUND -- CLASS A AND B SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 3, 1994
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* 1994
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year................................... $9.69 $9.59 $8.62 $10.00
Income from investment operations:
Net investment income............................................... 0.48 0.49 0.34 0.46
Net realized and unrealized gain (loss) on investments.............. 0.40 0.10 0.97 (1.38)
Total from investment operations.................................. 0.88 0.59 1.31 (0.92)
Less distributions from:
Net investment income............................................... (0.48) (0.49) (0.34) (0.46)
Net realized gains on investments................................... (0.01) 0 0 0
Total distributions............................................... (0.49) (0.49) (0.34) (0.46)
Net asset value end of year....................................... $10.08 $9.69 $ 9.59 $ 8.62
TOTAL RETURN (B).................................................... 9.33% 6.23% 15.35% (9.32%)
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses.................................................... 0.98% 0.86% 0.53%(a) 0.25%(a)
Total expenses excluding indirectly paid expenses................. 0.98% -- -- --
Total expenses excluding waivers and reimbursements............... 2.16% 4.00% 6.50%(a) 10.71%(a)
Net investment income............................................. 4.87% 4.98% 5.41%(a) 5.57%(a)
Portfolio turnover rate............................................. 62% 37% 66% 23%
Net assets end of year (thousands).................................. $1,025 $841 $610 $312
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
<TABLE>
<CAPTION>
CLASS B SHARES
JANUARY 3, 1994
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* 1994
`<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................. $9.69 $9.59 $8.62 $10.00
Income from investment operations:
Net investment income.............................................. 0.41 0.41 0.29 0.41
Net realized and unrealized gain (loss) on investments............. 0.40 0.10 0.97 (1.38)
Total from investment operations................................. 0.81 0.51 1.26 (0.97)
Less distributions from:
Net investment income.............................................. (0.41) (0.41) (0.29) (0.41)
Net realized gains on investments.................................. (0.01) 0 0 0
Total distributions.............................................. (0.42) (0.41) (0.29) (0.41)
Net asset value end of year...................................... $10.08 $9.69 $9.59 $8.62
TOTAL RETURN (B)................................................... 8.52% 5.43% 14.77% (9.83%)
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................... 1.73% 1.61% 1.28%(a) 0.87%(a)
Total expenses excluding indirectly paid expenses................ 1.73% -- -- --
Total expenses excluding waivers and reimbursements.............. 2.91% 4.76% 7.25%(a) 11.33%(a)
Net investment income............................................ 4.13% 4.23% 4.66%(a) 4.88%(a)
Portfolio turnover rate............................................ 62% 37% 66% 23%
Net assets end of year (thousands)................................. $4,734 $4,282 $3,542 $2,456
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
EVERGREEN VIRGINIA MUNICIPAL BOND FUND -- CLASS A AND B SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JULY 2, 1993
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED YEAR ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* DECEMBER 31, 1994 1993
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............. $9.68 $9.67 $8.85 $10.19 $10.00
Income from investment operations:
Net investment income......................... 0.50 0.48 0.33 0.47 0.20
Net realized and unrealized gain (loss) on
investments................................. 0.37 0.01 0.82 (1.34) 0.19
Total from investment operations............ 0.87 0.49 1.15 (0.87) 0.39
Less distributions from net investment
income...................................... (0.50) (0.48) (0.33) (0.47) (0.20)
Net asset value end of year................. $10.05 $9.68 $9.67 $8.85 $10.19
TOTAL RETURN (B).............................. 9.05% 5.12% 13.09% (8.60%) 3.89%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses.............................. 1.03% 0.93% 0.72%(a) 0.53% 0.25%(a)
Total expenses excluding indirectly paid
expenses.................................. 1.02% -- -- -- --
Total expenses excluding waivers and
reimbursements............................ 1.84% 3.47% 3.83%(a) 5.14% 7.75%(a)
Net investment income....................... 4.95% 4.83% 5.17%(a) 5.11% 4.64%(a)
Portfolio turnover rate....................... 72% 68% 87% 59% 0%
Net assets end of year (thousands)............ $2,934 $2,892 $1,983 $ 1,606 $1,306
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
<TABLE>
<CAPTION>
CLASS B SHARES
JULY 2, 1993
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED YEAR ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* DECEMBER 31, 1994 1993
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............. $9.68 $9.67 $8.85 $10.19 $10.00
Income from investment operations:
Net investment income......................... 0.41 0.41 0.28 0.42 0.17
Net realized and unrealized gain (loss) on
investments................................. 0.37 0.01 0.82 (1.34) 0.19
Total from investment operations............ 0.78 0.42 1.10 (0.92) 0.36
Less distributions from net investment
income...................................... (0.41) (0.41) (0.28) (0.42) (0.17)
Net asset value end of year................. $10.05 $ 9.68 $ 9.67 $ 8.85 $10.19
TOTAL RETURN (B).............................. 8.24% 4.34% 12.53% (9.13%) 3.66%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses.............................. 1.79% 1.68% 1.47%(a) 1.12% 0.75%(a)
Total expenses excluding indirectly paid
expenses.................................. 1.78% -- -- -- --
Total expenses excluding waivers and
reimbursements............................ 2.59% 4.23% 4.58%(a) 5.73% 8.25%(a)
Net investment income....................... 4.21% 4.09% 4.42%(a) 4.54% 4.25%(a)
Portfolio turnover rate....................... 72% 68% 87% 59% 0%
Net assets end of year (thousands)............ $6,695 $5,963 $5,083 $ 3,817 $2,235
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
EVERGREEN FLORIDA HIGH INCOME MUNICIPAL BOND FUND -- CLASS A AND B SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JUNE 17, 1992
(COMMENCEMENT OF
CLASS
FOUR MONTHS OPERATIONS)
YEAR ENDED AUGUST 31, ENDED YEAR ENDED APRIL 30, THROUGH
1997 1996 AUGUST 31, 1995* 1995 1994 APRIL 30, 1993
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.... $10.42 $10.40 $10.16 $10.08 $10.36 $10.00
Income from investment operations:
Net investment income................ 0.62 0.63 0.21 0.65 0.68 0.61
Net realized and unrealized gain
(loss) on investments.............. 0.47 0.02 0.24 0.08 (0.26) 0.39
Total from investment operations... 1.09 0.65 0.45 0.73 0.42 1.00
Less distributions from:
Net investment income................ (0.62) (0.63) (0.21) (0.65) (0.68) (0.61)
Net realized gains on investments.... 0 0 0 0 (0.02) (0.03)
Total distributions................ (0.62) (0.63) (0.21) (0.65) (0.70) (0.64)
Net asset value end of year........ $10.89 $10.42 $10.40 $10.16 $10.08 $10.36
TOTAL RETURN (B)..................... 10.77% 6.42% 4.43% 7.56% 3.94% 10.33%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses..................... 0.88% 0.85% 1.07%(a) 0.60% 0.14% 0.00%(a)
Total expenses excluding indirectly
paid expenses.................... 0.87% -- -- -- -- --
Total expenses excluding waivers
and reimbursements............... 1.12% 1.15% 1.42%(a) 1.26% 1.12% 1.12%(a)
Net investment income.............. 5.86% 6.02% 5.92%(a) 6.52% 6.16% 5.92%(a)
Portfolio turnover rate.............. 32% 42% 14% 28% 31% 50%
Net assets end of year (thousands)... $119,942 $76,267 $ 59,551 $65,043 $72,683 $ 33,541
</TABLE>
* The Fund changed its fiscal year end from April 30 to August 31.
(a) Annualized.
(b) Excluding applicable sales charges.
<TABLE>
<CAPTION>
CLASS B SHARES
JULY 10, 1995
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED AUGUST 31, THROUGH
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............................................ $10.42 $10.40 $10.41
Income from investment operations:
Net investment income........................................................ 0.54 0.55 0.08
Net realized and unrealized gain (loss) on investments....................... 0.47 0.02 (0.01)
Total from investment operations........................................... 1.01 0.57 0.07
Less distributions from net investment income................................ (0.54) (0.55) (0.08)
Net asset value end of year................................................ $10.89 $10.42 $10.40
TOTAL RETURN (B)............................................................. 9.95% 5.63% 0.64%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses............................................................. 1.63% 1.59% 1.09%(a)
Total expenses excluding indirectly paid expenses.......................... 1.63% -- --
Total expenses excluding waivers and reimbursements........................ 1.87% 1.89% --
Net investment income...................................................... 5.09% 5.27% 3.40%(a)
Portfolio turnover rate...................................................... 32% 42% 14%
Net assets end of year (thousands)........................................... $63,475 $19,219 $3,137
</TABLE>
(a) Annualized.
(b) Excluding applicable sales charges.
NAME CHANGES
The name of the distributor of the Funds has been changed to Evergreen
Distributor, Inc.; the name of the administrator has been changed to Evergreen
Investment Services, Inc.; and the name of the transfer agent for the Funds has
been changed to Evergreen Service Company.
INVESTMENT OBJECTIVES AND POLICIES
Each Fund other than EVERGREEN FLORIDA MUNICIPAL BOND FUND is permitted to
make taxable investments, and may from time to time generate income subject to
federal regular income tax.
Each Fund other than EVERGREEN FLORIDA MUNICIPAL BOND FUND will invest at
least 80% of its assets in bonds that, at the date of investment, are rated
within the four highest categories by Standard & Poor's Rating Group ("S&P")
(AAA, AA, A and BBB) or, if not rated or rated under a different system, are of
comparable quality to obligations so rated as determined by another nationally
recognized statistical ratings organization (an "SRO") or by the Fund's
investment adviser. A Fund may invest the remaining 20% of its assets in lower
rated bonds, but it will not invest in bonds rated below B. A Fund is not
required to sell or otherwise dispose of any security that loses its rating or
has its rating reduced after the Fund has purchased it.
During the fiscal year ended August 31, 1997, EVERGREEN FLORIDA HIGH
INCOME MUNICIPAL BOND FUND'S holdings had the following average credit quality
characteristics:
<TABLE>
<CAPTION>
Percent of
Rating Net Assets
<S> <C>
Aaa or AAA 11.10%
Aa or AA 2.00%
A 2.50%
Baa or BBB 16.70%
Ba or BB 1.20%
B 0.40%
Non-rated 66.10%
Total 100.00%
</TABLE>
PORTFOLIO MANAGERS
The portfolio manager for EVERGREEN GEORGIA MUNICIPAL BOND FUND is
Charles E. Jeanne. Since joining First Union in 1993, Mr. Jeanne has been an
Assistant Vice President and Portfolio Manager. In addition to the Fund, Mr.
Jeanne also manages the Evergreen Virginia Municipal Bond Fund. Prior to joining
First Union, Mr. Jeanne served as a trader/portfolio manager for First American
Bank.
INVESTMENT ADVISER
Disclosure regarding the Funds' subadministrator is hereby deleted.
EXCHANGE PRIVILEGES
You may exchange shares of a Fund for shares of another Evergreen fund by
calling or writing to Evergreen Service Company or by using the Evergreen
Express Line. If the shares being tendered for exchange are still subject to a
contingent deferred sales charge or are eligible for conversion in a specified
time, such remaining charge or remaining time will carry over to the shares
being acquired in the exchange transaction.
PERFORMANCE INFORMATION
The Funds may quote their "total return" or "yield" for specified periods
in advertisements, reports, or other communications to shareholders. Total
return and yield are computed separately for each Class of shares. Performance
data for one or more classes may be included in any advertisement or sales
literature using performance data of a Fund.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE CLASS Y PROSPECTUS
OF
EVERGREEN FLORIDA MUNICIPAL BOND FUND , EVERGREEN GEORGIA MUNICIPAL BOND FUND,
EVERGREEN NORTH CAROLINA MUNICIPAL BOND FUND, EVERGREEN SOUTH CAROLINA MUNICIPAL
BOND FUND, EVERGREEN VIRGINIA MUNICIPAL BOND FUND, EVERGREEN FLORIDA HIGH INCOME
MUNICIPAL BOND FUND
THE CLASS Y PROSPECTUS OF THE FUNDS IS HEREBY SUPPLEMENTED AS FOLLOWS:
EVERGREEN NEW JERSEY TAX-FREE INCOME FUND is no longer offered through
this Prospectus. The Fund is now offered through a prospectus dated July 21,
1997, as amended from time to time.
WITH RESPECT TO EACH FUND OTHER THAN EVERGREEN FLORIDA MUNICIPAL BOND FUND:
At a joint special meeting of shareholders held on December 15, 1997, the
shareholders approved each Fund's reorganization as a separate series of the
Evergreen Municipal Trust, which was organized on September 17, 1997. In
connection with the reorganization, the investment objective(s) of each Fund is
now "nonfundamental" (i.e., changeable by vote of the Board of Trustees without
a shareholder vote). In addition, each Fund is now subject to certain
standardized investment restrictions as set forth in the Fund's Statement of
Additional Information.
EXPENSE INFORMATION
The "Expense Information" section is replaced entirely by the following:
The tables below are designed to help you understand the various expenses
that you will bear, directly or indirectly, when you invest in a Fund.
Shareholder transaction expenses are fees paid directly from your account when
you buy or sell shares. THERE ARE NO SHAREHOLDER TRANSACTION EXPENSES.
Annual operating expenses reflect the normal operating expenses of a
Fund, and include costs such as management, distribution and other fees. The
tables below show each Fund's actual annual operating expenses for the fiscal
year ended August 31, 1997. The example shows what you would pay if you invested
$1,000 over periods indicated. The example assumes that you reinvest all of your
dividends and that the Fund's average annual return will be 5%. THE EXAMPLES ARE
FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE FUND'S ACTUAL EXPENSES AND RETURNS
WILL VARY. For a more complete description of the various costs and expenses
borne by the Fund see "Purchase and Redemption of Shares" and "General
Information -- Other Classes of Shares."
EVERGREEN FLORIDA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES EXAMPLE
(AFTER REIMBURSEMENTS)(1) Class Y
<S> <C> <C> <C>
Management Fees 0.45%
After 1 Year $ 7
12b-1 Fees --
After 3 Years $ 21
Other Expenses 0.21%
After 5 Years $ 37
After 10 Years $ 82
Total 0.66%
</TABLE>
EVERGREEN GEORGIA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES EXAMPLE
(AFTER REIMBURSEMENTS)(1) Class Y
<S> <C> <C> <C>
Management Fees 0.00%
After 1 Year $ 7
12b-1 Fees --
After 3 Years $ 22
Other Expenses 0.70%
After 5 Years $ 39
After 10 Years $ 87
Total 0.70%
</TABLE>
EVERGREEN NORTH CAROLINA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES Class Y
<S> <C> <C> <C>
Management Fees 0.50%
After 1 Year $ 9
12b-1 Fees --
After 3 Years $ 27
Other Expenses 0.36%
After 5 Years $ 48
After 10 Years $ 106
Total 0.86%
</TABLE>
EVERGREEN SOUTH CAROLINA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES EXAMPLE
(AFTER REIMBURSEMENTS)(1) Class Y
<S> <C> <C> <C>
Management Fees 0.00%
After 1 Year $ 7
12b-1 Fees --
After 3 Years $ 23
Other Expenses 0.73%
After 5 Years $ 41
After 10 Years $ 91
Total 0.73%
</TABLE>
EVERGREEN VIRGINIA MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES EXAMPLE
(AFTER REIMBURSEMENTS)(1) Class Y
<S> <C> <C> <C>
Management Fees 0.00%
After 1 Year $ 8
12b-1 Fees --
After 3 Years $ 25
Other Expenses 0.78%
After 5 Years $ 43
After 10 Years $ 97
Total 0.78%
</TABLE>
EVERGREEN FLORIDA HIGH INCOME MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING
EXPENSES EXAMPLE
(AFTER REIMBURSEMENTS)(1) Class Y
<S> <C> <C> <C>
Management Fees 0.36%
After 1 Year $ 6
12b-1 Fees --
After 3 Years $ 20
Other Expenses 0.27%
After 5 Years $ 35
After 10 Years $ 79
Total 0.63%
</TABLE>
(1) First Union National Bank ("FUNB") has agreed to reimburse each Fund to the
extent that each Fund's aggregate annual operating expenses exceed 1.00% of
average net assets for any fiscal year. FUNB may cease these voluntary
expense reimbursements at any time. For the fiscal year ended August 31,
1997, FUNB reimbursed and/or waived certain other expenses and/or management
fees of the Funds. Absent such reimbursements and/or waivers, each Fund
would have paid the expenses equal to the following percentages of net
assets:
<TABLE>
<CAPTION>
MANAGEMENT OTHER EXPENSES TOTAL FUND OPERATING
FEES (WITHOUT WAIVERS EXPENSES (WITHOUT
(WITHOUT AND/OR WAIVERS AND/OR
FUND WAIVER) REIMBURSEMENT) REIMBURSEMENT)
<S> <C> <C> <C>
Evergreen Florida Municipal Bond Fund
Class Y........................................................ 0.50% 0.21% 0.71%
Evergreen Georgia Municipal Bond Fund
Class Y........................................................ 0.50% 1.08% 1.58%
Evergreen South Carolina Municipal Bond Fund
Class Y........................................................ 0.50% 1.41% 1.91%
Evergreen Virginia Municipal Bond Fund
Class Y........................................................ 0.50% 1.09% 1.59%
Evergreen Florida High Income Municipal Bond Fund
Class Y........................................................ 0.60% 0.27% 0.87%
</TABLE>
FINANCIAL HIGHLIGHTS
The "Financial Highlights" section is replaced entirely by the following:
The tables on the following pages present, for each Fund, financial
highlights for a Class Y share outstanding throughout each period indicated. The
information in the tables for the ten most recent fiscal years or the life of
the Fund if shorter for EVERGREEN GEORGIA MUNICIPAL BOND FUND, EVERGREEN NORTH
CAROLINA MUNICIPAL BOND FUND, EVERGREEN SOUTH CAROLINA MUNICIPAL BOND FUND and
EVERGREEN VIRGINIA MUNICIPAL BOND FUND has been audited by KPMG Peat Marwick
LLP, each Fund's independent auditors. The information in the tables for
EVERGREEN FLORIDA MUNICIPAL BOND FUND for the periods ended August 31, 1997,
August 31, 1996 and August 31, 1995 has been audited by KPMG Peat Marwick LLP,
the Fund's current independent auditors. The information in the tables for each
of the years in the three-year period ended April 30, 1995 was audited by the
Fund's prior independent auditors. The information in the tables for EVERGREEN
FLORIDA HIGH INCOME MUNICIPAL BOND FUND for each of the periods from May 1, 1995
through August 31, 1997 has been audited by Price Waterhouse LLP, the Fund's
current independent auditors. The information in the tables for EVERGREEN
FLORIDA HIGH INCOME MUNICIPAL BOND FUND for each of the years in the two-year
period ended April 30, 1995 and for the period June 17, 1992 (commencement of
operations) through April 30, 1993 was audited by the Fund's prior independent
auditors. A report of KPMG Peat Marwick LLP or Price Waterhouse LLP, as the case
may be on the audited information with respect to each Fund is incorporated by
reference in the Fund's Statement of Additional Information. The following
information for each Fund should be read in conjunction with the financial
statements and related notes which are incorporated by reference in the Fund's
Statement of Additional Information.
Further information about each Fund's performance is contained in the
Fund's Annual Report to shareholders, which may be obtained without charge.
EVERGREEN FLORIDA MUNICIPAL BOND FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
JUNE 30, 1995
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED AUGUST 31, THROUGH
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............................................. $9.70 $9.74 $9.67
Income from investment operations:
Net investment income......................................................... 0.52 0.53 0.09
Net realized and unrealized gain (loss) on investments........................ 0.35 (0.03) 0.10
Total from investment operations............................................ 0.87 0.50 0.19
Less distributions from:
Net investment income......................................................... (0.53) (0.54) (0.09)
Net realized gains on investments............................................. (0.06) 0 (0.03)
Total distributions......................................................... (0.59) (0.54) (0.12)
Net asset value end of year................................................. $9.98 $9.70 $9.74
TOTAL RETURN.................................................................. 9.14% 5.22% 1.67%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses.............................................................. 0.67% 0.57% 0.59%(a)
Total expenses excluding indirectly paid expenses........................... 0.67% -- --
Total expenses excluding waivers and reimbursements......................... 0.84% 0.77% 0.79%(a)
Net investment income....................................................... 5.27% 5.55% 4.93%(a)
Portfolio turnover rate....................................................... 41% 30% 29%
Net assets end of year (thousands)............................................ $24,850 $12,259 $3,602
</TABLE>
(a) Annualized.
EVERGREEN GEORGIA MUNICIPAL BOND FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
FEBRUARY 28,
1994
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* 1994
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................. $9.57 $9.47 $8.74 $9.83
Income from investment operations:
Net investment income.............................................. 0.51 0.50 0.35 0.42
Net realized and unrealized gain (loss) on investments............. 0.33 0.10 0.73 (1.09)
Total from investment operations................................. 0.84 0.60 1.08 (0.67)
Less distributions from net investment income...................... (0.51) (0.50) (0.35) (0.42)
Net asset value end of year...................................... $9.90 $9.57 $9.47 $8.74
TOTAL RETURN....................................................... 9.00% 6.48% 12.47% (6.86%)
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................... 0.69% 0.63% 0.46%(a) 0.31%(a)
Total expenses excluding indirectly paid expenses................ 0.69% -- -- --
Total expenses excluding waivers and reimbursements.............. 1.58% 2.51% 2.58%(a) 3.39%(a)
Net investment income............................................ 5.25% 5.21% 5.64%(a) 5.68%(a)
Portfolio turnover rate............................................ 32% 21% 91% 147%
Net assets end of year (thousands)................................. $1,180 $1,620 $1,339 $284
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
EVERGREEN NORTH CAROLINA MUNICIPAL BOND FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
FEBRUARY 28,
1994
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* 1994
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................. $9.98 $9.95 $9.16 $10.31
Income from investment operations:
Net investment income.............................................. 0.51 0.51 0.35 0.43
Net realized and unrealized gain (loss) on investments............. 0.41 0.03 0.79 (1.15)
Total from investment operations................................. 0.92 0.54 1.14 (0.72)
Less distributions from net investment income...................... (0.53) (0.51) (0.35) (0.43)
Net asset value end of year...................................... $10.37 $9.98 $9.95 $9.16
TOTAL RETURN....................................................... 9.39% 5.47% 12.52% (7.01%)
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................... 0.86% 0.84% 0.67%(a) 0.59%(a)
Total expenses excluding indirectly paid expenses................ 0.86% -- -- --
Total expenses excluding waivers and reimbursements.............. 0.86% 1.07% 1.02%(a) 0.98%(a)
Net investment income............................................ 5.02% 5.05% 5.34%(a) 5.58%(a)
Portfolio turnover rate............................................ 50% 86% 117% 126%
Net assets end of year (thousands)................................. $4,042 $3,771 $1,006 $642
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
EVERGREEN SOUTH CAROLINA MUNICIPAL BOND FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
FEBRUARY 28,
1994
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* 1994
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................. $9.69 $9.59 $8.62 $9.74
Income from investment operations:
Net investment income.............................................. 0.51 0.51 0.35 0.43
Net realized and unrealized gain (loss) on investments............. 0.40 0.10 0.97 (1.12)
Total from investment operations................................. 0.91 0.61 1.32 (0.69)
Less distributions from:
Net investment income.............................................. (0.51) (0.51) (0.35) (0.43)
Net realized gains on investments.................................. (0.01) 0 0 0
Total distributions.............................................. (0.52) (0.51) (0.35) (0.43)
Net asset value end of year...................................... $10.08 $9.69 $9.59 $8.62
TOTAL RETURN....................................................... 9.60% 6.49% 15.54% (7.12%)
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................... 0.73% 0.62% 0.28%(a) 0.00%(a)
Total expenses excluding indirectly paid expenses................ 0.73% -- -- --
Total expenses excluding waivers and reimbursements.............. 1.91% 3.70% 6.25%(a) 10.46%(a)
Net investment income............................................ 5.12% 5.22% 5.66%(a) 5.92%(a)
Portfolio turnover rate............................................ 62% 37% 66% 23%
Net assets end of year (thousands)................................. $7,012 $4,555 $1,673 $92
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
EVERGREEN VIRGINIA MUNICIPAL BOND FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
FEBRUARY 28,
1994
(COMMENCEMENT OF
CLASS
OPERATIONS)
YEAR ENDED EIGHT MONTHS THROUGH
AUGUST 31, ENDED DECEMBER 31,
1997 1996 AUGUST 31, 1995* 1994
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................. $9.68 $9.67 $8.85 $9.83
Income from investment operations:
Net investment income.............................................. 0.51 0.50 0.34 0.41
Net realized and unrealized gain (loss) on investments............. 0.37 0.01 0.82 (0.98)
Total from investment operations................................. 0.88 0.51 1.16 (0.57)
Less distributions from net investment income...................... (0.51) (0.50) (0.34) (0.41)
Net asset value end of year...................................... $10.05 $9.68 $9.67 $8.85
TOTAL RETURN....................................................... 9.32% 5.38% 13.28% (5.80%)
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................... 0.79% 0.70% 0.47%(a) 0.28%(a)
Total expenses excluding indirectly paid expenses................ 0.78% -- -- --
Total expenses excluding waivers and reimbursements.............. 1.60% 3.24% 3.58%(a) 4.89%(a)
Net investment income............................................ 5.27% 5.05% 5.42%(a) 5.54%(a)
Portfolio turnover rate............................................ 72% 68% 87% 59%
Net assets end of year (thousands)................................. $6,195 $4,266 $965 $344
</TABLE>
* The Fund changed its fiscal year end from December 31 to August 31.
(a) Annualized.
EVERGREEN FLORIDA HIGH INCOME MUNICIPAL BOND FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
SEPTEMBER 20, 1995
(COMMENCEMENT OF
CLASS OPERATIONS)
YEAR ENDED THROUGH
AUGUST 31, 1997 AUGUST 31, 1996
<S> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................................. $10.42 $10.48
Income from investment operations:
Net investment income.............................................................. 0.65 0.63
Net realized and unrealized gain (loss) on investments............................. 0.47 (0.06)
Total from investment operations................................................. 1.12 0.57
Less distributions from net investment income...................................... (0.65) (0.63)
Net asset value end of year...................................................... $10.89 $10.42
TOTAL RETURN....................................................................... 11.04% 5.54%
RATIOS/SUPPLEMENTAL DATA
Ratios to average net assets:
Total expenses................................................................... 0.63% 0.59%(a)
Total expenses excluding indirectly paid expenses................................ 0.63% --
Total expenses excluding waivers and reimbursements.............................. 0.87% 0.89%(a)
Net investment income............................................................ 6.08% 6.27%(a)
Portfolio turnover rate............................................................ 32% 42%
Net assets end of year (thousands)................................................. $6,326 $1,970
</TABLE>
(a) Annualized.
NAME CHANGES
The name of the distributor of the Funds has been changed to Evergreen
Distributor, Inc.; the name of the administrator has been changed to Evergreen
Investment Services, Inc.; and the name of the transfer agent for the Funds has
been changed to Evergreen Service Company.
INVESTMENT OBJECTIVES AND POLICIES
Each Fund other than EVERGREEN FLORIDA MUNICIPAL BOND FUND is permitted to
make taxable investments, and may from time to time generate income subject to
federal regular income tax.
Each Fund other than EVERGREEN FLORIDA MUNICIPAL BOND FUND will invest at
least 80% of its assets in bonds that, at the date of investment, are rated
within the four highest categories by Standard & Poor's Rating Group ("S&P")
(AAA, AA, A and BBB) or, if not rated or rated under a different system, are of
comparable quality to obligations so rated as determined by another nationally
recognized statistical ratings organization (an "SRO") or by the Fund's
investment adviser. A Fund may invest the remaining 20% of its assets in lower
rated bonds, but it will not invest in bonds rated below B. A Fund is not
required to sell or otherwise dispose of any security that loses its rating or
has its rating reduced after the Fund has purchased it.
During the fiscal year ended August 31, 1997, EVERGREEN FLORIDA HIGH
INCOME MUNICIPAL BOND FUND'S holdings had the following average credit quality
characteristics:
<TABLE>
<CAPTION>
Percent of
Rating Net Assets
<S> <C>
Aaa or AAA 11.10%
Aa or AA 2.00%
A 2.50%
Baa or BBB 16.70%
Ba or BB 1.20%
B 0.40%
Non-rated 66.10%
Total 100.00%
</TABLE>
PORTFOLIO MANAGERS
The portfolio manager for EVERGREEN GEORGIA MUNICIPAL BOND FUND is
Charles E. Jeanne. Since joining First Union in 1993, Mr. Jeanne has been an
Assistant Vice President and Portfolio Manager. In addition to the Fund, Mr.
Jeanne also manages the Evergreen Virginia Municipal Bond Fund. Prior to joining
First Union, Mr. Jeanne served as a trader/portfolio manager for First American
Bank.
INVESTMENT ADVISER
Disclosure regarding the Funds' subadministrator is hereby deleted.
EXCHANGE PRIVILEGES
You may exchange shares of a Fund for shares of another Evergreen fund
identified above by calling or writing to Evergreen Service Company or by using
the Evergreen Express Line. If the shares being tendered for exchange are still
subject to a contingent deferred sales charge or are eligible for conversion in
a specified time, such remaining charge or remaining time will carry over to the
shares being acquired in the exchange transaction.
PERFORMANCE INFORMATION
The Funds may quote their "total return" or "yield" for specified periods
in advertisements, reports, or other communications to shareholders. Total
return and yield are computed separately for each Class of shares. Performance
data for one or more classes may be included in any advertisement or sales
literature using performance data of a Fund.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION OF
EVERGREEN FLORIDA MUNICIPAL BOND FUND (THE "FLORIDA FUND"), EVERGREEN GEORGIA
MUNICIPAL BOND FUND (THE "GEORGIA FUND"), EVERGREEN NORTH CAROLINA MUNICIPAL
BOND FUND (THE "NORTH CAROLINA FUND"), EVERGREEN SOUTH CAROLINA MUNICIPAL BOND
FUND (THE "SOUTH CAROLINA FUND"), EVERGREEN VIRGINIA MUNICIPAL BOND FUND (THE
"VIRGINIA FUND"), EVERGREEN FLORIDA HIGH INCOME MUNICIPAL BOND FUND (THE
"FLORIDA HIGH INCOME FUND") (EACH A "FUND"; TOGETHER, THE "FUNDS")
The Statement of Additional Information of each of the Funds is hereby
supplemented as follows:
FINANCIAL INFORMATION
Expenses
The table below shows the total dollar amounts paid by each Fund for
services rendered during the fiscal periods specified. For more information on
specific expenses, see "Investment Advisory and Other Services," "Distribution
Plans and Agreements," "Principal Underwriter" and "Purchase, Redemption and
Pricing of Shares."
<TABLE>
<CAPTION>
Aggregate
Dollar
Aggregate Amount of
Dollar Underwriting
Amount of Commissions
Advisory Class A Class B Underwriting Retained by
Fees 12b-1 Fees 12b-1 Fees Commissions EIS or EDI
====================== ============ ============ ============ ============= ==============
<S> <C> <C> <C> <C> <C>
1997 FUND EXPENSES
Florida $791,322 $275,983* $298,114 $236,607 $22,335
Georgia $66,245 $5,499 $96,055 $22,854 $2,488
North Carolina $305,634 $20,523 $490,164 $35,137 $2,377
South Carolina $58,299 $2,271 $45,393 $5,744 $710
Virginia $70,972 $7,230 $61,471 $14,653 $1,596
Florida High Income $813,790 $235,662 $383,197 $757,824 $34,454
- ----------------------
1996 FUND EXPENSES
- ----------------------
Florida $803,741 $240,978 $287,825 $49,589 $5,996
Georgia $63,102 $5,047 $84,596 $7,300 $875
North Carolina $306,892 $20,833 $500,469 $16,557 $154
South Carolina $40,781 $1,917 $39,896 $1,447 $2,228
Virginia $51,952 $6,048 $57,906 $20,400 $2,033
Florida High Income $477,128 $169,651 $106,733 $276,615 $29,467
- ----------------------
1995 FUND EXPENSES
- ----------------------
Florida $243,413 $59,721 $37,405 $87,755 $4,301
Georgia $32,646 $2,856 $49,968 $56,210 $4,220
North Carolina $190,284 $13,739 $319,719 $123,175 $7,843
South Carolina $13,154 $788 $20,125 $35,241 $3,595
Virginia $23,156 $3,127 $30,267 $45,713 $2,320
Florida High Income $123,320 $41,690 $2,087 $196,614 $24,672
====================== ============ ============ ============ ============= ==============
</TABLE>
*Of this amount, $191,541 was waived by the Distributor.
Advisory Fee Waivers
In accordance with voluntary expense limitations in effect during the
fiscal year or period ended August 31, 1997, CMG voluntarily reimbursed or
waived advisory fees, as follows:
Florida $81,274
Georgia $66,245
North Carolina $0
South Carolina $58,299
Virginia $70,972
Florida High Income $330,629
===================== ==========
Brokerage Commissions
The Funds paid no brokerage commissions during the fiscal year or period
ended August 31, 1997, 1996 and 1995.
Total Return
Total return quotations for a class of shares of a Fund as they may appear
from time to time in advertisements are calculated by finding the average annual
compounded rates of return over one, five and ten year periods, or the time
periods for which such class of shares has been effective, whichever is
relevant, on a hypothetical $1,000 investment that would equate the initial
amount invested in the class to the ending redeemable value. To the initial
investment all dividends and distributions are added, and all recurring fees
charged to all shareholder accounts are deducted.
The ending redeemable value assumes a complete redemption at the end of the
relevant periods.
The annual total returns for each class of shares of the Funds (including
applicable sales charges) are as follows:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS SINCE INCEPTION INCEPTION DATE
<S> <C> <C> <C> <C> <C>
FLORIDA
Class A 3.88% 5.81% 5.92% 7.47% 5/11/88
Class B 3.06% - - 5.03% 6/30/95
Class Y 9.14% - - 7.38% 6/30/95
GEORGIA
Class A 3.57% 5.78% - 3.63% 7/2/93
Class B 2.93% 5.83% - 3.73% 7/2/93
Class Y 9.00% 7.78% - 5.73% 2/28/94
NORTH CAROLINA
Class A 3.93% 6.03% - 4.79% 1/11/93
Class B 3.30% 6.08% - 4.85% 1/11/93
Class Y 9.39% 8.03% - 5.51% 2/28/94
SOUTH CAROLINA
Class A 4.14% 7.05% - 4.06% 1/3/94
Class B 3.52% 7.12% - 3.99% 1/3/94
Class Y 9.60% 9.07% - 6.62% 2/28/94
VIRGINIA
Class A 3.87% 6.08% - 3.90% 7/2/93
Class B 3.24% 6.14% - 3.98% 7/2/93
Class Y 9.32% 8.08% - 6.06% 2/28/94
FLORIDA HIGH INCOME
Class A 5.51% 6.96% 7.33% 7.34% 6/17/92
Class B 4.95% - - 6.24% 7/10/95
Class Y 11.04% - - 8.47% 9/20/95
==================== ========= ======== ========= ============= ==============
</TABLE>
Current and Tax Equivalent Yields
Current yield quotations as they may appear from time to time in
advertisements will consist of a quotation based on a 30-day period ended on the
date of the most recent balance sheet of a Fund, computed by dividing the net
investment income per share earned during the period by the maximum offering
price per share on the last day of the base period. Such yield will include
income from sources other than municipal obligations, if any. Tax equivalent
yield is, in general, the current yield divided by a factor equal to one minus a
stated income tax rate and reflects the yield a taxable investment would have to
achieve in order to equal on an after-tax basis a tax-exempt yield. For the
30-day period ended August 31, 1997, the current and tax-equivalent yields of
the Funds are shown below. Any given yield or total return quotation should not
be considered representative of the Fund's yield or total return for any future
period.
<TABLE>
<CAPTION>
30-DAY YIELD TAX-EQUIVALENT YIELD
================================= ============================================ ============================================
FUND COMBINED CLASS A CLASS B CLASS Y CLASS A CLASS B CLASS Y
FEDERAL &
STATE TAX
RATE (1)
================== ============= ============ =========== =========== =========== =========== ==============
<S> <C> <C> <C> <C> <C> <C> <C>
Florida 28% 4.94% 4.02% 5.02% 6.86% 5.58% 6.97%
Georgia 34% 4.80% 4.04% 5.05% 7.27% 6.12% 7.65%
North Carolina 28% 4.67% 3.92% 4.92% 6.49% 5.44% 6.83%
South Carolina 35% 4.65% 3.90% 4.90% 7.15% 6.00% 7.54%
Virginia 33.25% 4.78% 4.03% 5.03% 7.16% 6.04% 7.54%
Florida High 28% 5.48% 4.73% 5.73% 7.61% 6.57% 7.96%
Income
================== ============= ============= =========== =============== ============ ============ ==============
(1) Assumed for purposes of this chart. Your tax may vary.
</TABLE>
Method of Computing Offering Price for Class A Shares
Class A shares are sold at the NAV plus a sales charge. Below is an example
of the method of computing the offering price of the Class A shares of each
Fund. The example assumes a purchase of Class A shares of each Fund aggregating
less than $100,000 based upon the NAV of each Fund's Class A shares at the end
of each Fund's latest fiscal period.
<TABLE>
<CAPTION>
FUND DATE NET ASSET VALUE PER SHARE SALES OFFERING PRICE PER
CHARGE SHARE
<S> <C> <C> <C> <C>
Florida 8/31/97 $9.98 4.75% $10.48
Georgia 8/31/97 $9.90 4.75% $10.39
North Carolina 8/31/97 $10.37 4.75% $10.89
South Carolina 8/31/97 $10.08 4.75% $10.58
Virginia 8/31/97 $10.05 4.75% $10.55
Florida High Income 8/31/97 $10.89 4.75% $11.43
</TABLE>
Trustee Compensation
Listed below is the Trustee compensation for the fiscal year ended August
31, 1997.
TRUSTEE COMPENSATION FROM COMPENSATION FROM
TRUST TRUST AND FUND
COMPLEX
Laurence B. Ashkin $3,176 $56,200
Charles A.Austin III * -0- $48,200
K. Dun Gifford* -0- $39,600
James S. Howell $3,979 $89,229
Leroy Keith Jr.* -0- $45,200
Gerald M. McDonnell $3,154 $81,001
Thomas L. McVerry $3,820 $81,468
William Walt Pettit $3,483 $79,009
David M. Richardson* -0- $48,200
Russell A. Salton,III $3,501 $81,601
Michael S. Scofield $5,572 $77,501
Richard J. Shima $4,180 $58,667
*Not a Trustee of the Trust during the relevant fiscal period.
PRINCIPAL HOLDERS OF FUND SHARES
As of the date of this SAI, the officers and Trustees of the Trust owned as
a group less than 1% of the outstanding of any class of each Fund. As of the
same date, no person, to any Fund's knowledge, owned beneficially or of record
more than 5% of a class of a Fund's outstanding shares.
Set forth below is information with respect to each person who, to each
Fund's knowledge, owned beneficially or of record more than 5% of a class of a
Fund's outstanding shares as of November 30, 1997.
FLORIDA FUND CLASS A
None
FLORIDA FUND CLASS B
None
FLORIDA FUND CLASS Y
First Union National Bank 98.79%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
FLORIDA HIGH INCOME FUND CLASS A
MLPF&S 9.63%
Attn: Fund Administration
4800 Deer Lake Dr. E 3rd Fl
Jacksonville, FL 32246-6484
FLORIDA HIGH INCOME FUND CLASS B
MLPF&S 10.31%
Attn: Fund Administration
4800 Deer Lake Dr. E 3rd Fl
Jacksonville, FL 32246-6484
FLORIDA HIGH INCOME FUND CLASS Y
First Union National Bank 68.58%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
First Union National Bank 19.69%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
GEORGIA FUND CLASS A
FUBS & Co. FEBO 10.09%
Lee R. Meadows and
Mary Lee Meadows
1270 Hicks Cir SW
Conyers, GA 30207-4221
FUBS & Co. FEBO 6.03%
William F. Hill Jr. and Marvin Hill
P O Box 554 Silver Creek, GA 30173-0554
FUBS & Co. FEBO 5.46%
Samuel A Barber
Velma H Barber
4852 Banner Elk Drive
Stone Mountain, GA 30083
FUBS & Co. FEBO 5.18%
Larry N Merritt
Ann C Merritt
310 Chinquapin Drive
Marietta, GA 30064-3506
FUBS & Co. FEBO 5.13%
Raiden W Dellinger
710 River Ave.
Rome, GA 30161-4773
GEORGIA FUND CLASS B
None
GEORGIA FUND CLASS Y
First Union National Bank 98.61%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
NORTH CAROLINA FUND CLASS A
None
NORTH CAROLINA FUND CLASS B
None
NORTH CAROLINA FUND CLASS Y
First Union National Bank 99.64%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
SOUTH CAROLINA FUND CLASS A
FUBS & Co. FEBO 21.96%
Charles W. Lombard Trust
Charlotte Lombard and
Warren Prout Co-tees
U/A/D 5/4/94
Boone, NC 28607
FUBS & Co. FEBO 11.87%
Warren A. Ransom Jr.
Laurie P. Ransom
1162 East Parkview Place
Mount Pleasant, SC 29464-7909
First Union Brokerage Services 10.82%
Ann D. Schwab
A/C 7448-7777
2189 Windy Oaks Rd.
Ft. Mills, SC 29715
FUBS & Co. FEBO 6.91%
Charles Dean Turner
103 Carolina Club Drive
Spartanburg, SC 29306-6601
FUBS & Co. FEBO 5.79%
Virginia C. Thomas
330 Concord St. No 7G
Charleston, SC 29401-2731
FUBS & Co. FEBO 5.05%
Virginia S. Herring
Oren L. Herring Jr. JTWROS
107 Bennett Street
Mt. Pleasant, SC 29464-4382
SOUTH CAROLINA FUND CLASS B
FUBS & Co. FEBO 5.99%
Ruby B. Motsinger and
Joseph G. Motsinger JTTENCOM
550 Brandon Rd.
Clover, SC 29710-9667
SOUTH CAROLINA FUND CLASS Y
First Union National Bank 93.13%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
First Union National Bank 6.16%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
VIRGINIA FUND CLASS A
Duff M Green 7.97%
638 Kings Highway
Fredericksburg, VA 22405-3156
FUBS & Co. FEBO 6.34%
David A. Hetzer and Iris L. Hetzer
5009 Laburch Lane
Annandale, VA 22003-6019
VIRGINIA FUND CLASS B
FUBS & Co. FEBO 6.13%
Patsy B. Williams and
Harry S. Williams
P O Box 888
Marion, VA 24354
VIRGINIA FUND CLASS Y
First Union National Bank 98.34%
Trust Accounts
Attn: Ginny Batten
11th Floor CMG-1151
301 S. Tryon St.
Charlotte, NC 28288-0002
Financial Statements
The audited financial statements and the reports thereon are hereby
incorporated by reference to each Fund's Annual Report, a copy of which may be
obtained without charge from ESC, P.O. Box 2121, Boston, Massachusetts
02106-2121.
January 1, 1998
<PAGE>
EVERGREEN INVESTMENT TRUST
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
Item 24(a). Financial Statements
EVERGREEN TREASURY MONEY MARKET FUND
The following financial statements are incorporated by reference to the
Registrant's Annual Report, as filed with the Securities and Exchange
Commission.
Class A Financial Highlights For each of the years in the
two-year period ended
August 31, 1997; for the
eight-month period ended
August 31, 1995; for each of
the years in the three-year
period ended December 31,
1994; and for the period from
March 6, 1991 (Commencement of
Operations) to December 31,
1991.
Class Y Financial Highlights For each of the years in the
two-year period ended
August 31, 1997; for the
eight-month period ended
August 31, 1995; for each of
the years in the three-year
period ended December 31,
1994; and for the period from
March 6, 1991 (Commencement of
Operations) to December 31,
1991.
Schedule of Investments August 31, 1997
Statement of Assets and Liabilities August 31, 1997
Statement of Operations Year ended August 31, 1997
Statement of Changes in Net Assets For each of the years in the
two-year period ended
August 31, 1997
Notes to Financial Statements
Independent Auditors' Report October 10, 1997
EVERGREEN FLORIDA MUNICIPAL BOND FUND
Class A Financial Highlights For each of the years in the
two-year period ended
August 31, 1997; for the
four-month period ended
August 31, 1995; for each of
the years in the six-year
period ended April 30, 1995;
and for the period from
May 11, 1988 (Commencement of
Operations) to April 30, 1989
Class B Financial Highlights For each of the years in the
two-year period ended
August 31, 1997 and for the
period from June 30, 1995
(Commencement of Operations)
to August 31, 1995
Class Y Financial Highlights For each of the years in the
two-year period ended
August 31, 1997 and for the
period from June 30, 1995
(Commencement of Operations)
to August 31, 1995
Schedule of Investments August 31, 1997
Statement of Assets and Liabilities August 31, 1997
Statement of Operations Year ended August 31, 1997
Statement of Changes in Net Assets For each of the years in the
two-year period ended
August 31, 1997
Notes to Financial Statements
Independent Auditors' Report October 10, 1997
Item 24(b). Exhibits:
Exhibit
Number Description Location
- ------- ----------- --------
(1)(a) Declaration of Trust (1)
(b) Amendment to Declaration of Trust (14)
(c) Amendment to Declaration of Trust (22)
(2)(a) By-Laws (1)
(b) Amendment to the By-Laws (3)
(3) Not applicable
(4)(a) Specimen Certificate for Shares of
Beneficial Interest (19)
(4)(b) Declaration of Trust, Articles V
(Section 5.1), VI, VII and X
(4)(c) By-Laws, Articles 2, 7.8 and 8
(5) Investment Advisory Contract (21)
(6)(a) Distributor's Contract (22)
(b) Previous Distributors Contract (21)
(7) Form of Deferred Compensation Plan (26)
(8) Custodian Contract (21)
(9)(a) Form of Dealer Agreement (26)
(9)(b) Fund Accounting and Shareholder
Recordkeeping Agreement (20)
(9)(c)(i) Previous Transfer Agency and Service
Agreement (21)
(ii) Shareholder Services Plan (21)
(iii) Shareholder Services Agreement (21)
(9)(d) Administrative Services Agreement (26)
(9)(e) Sub-Administrator Agreement (26)
(10) Opinion and Consent of Counsel ( )
(11) Consent of Independent Auditors (28)
(12) Not applicable
(13) Copy of Initial Capital Understanding (1)
(14) Forms of model plans used in the
establishment of retirement plans in
connection with which Registrant
offers its securities (25)
(15)(a) Distribution Plan First Union
Utility Portfolio - Class B Investment
Shares and First Union Funds - Class C
Investment Shares (21) & (17), respectively
(b) Exhibit to Class C Investment Shares (21)
(c) Rule 12b-1 Agreement (14)
(d) Amendment Number 5 to 12b-1 Agreement (21)
(16) Performance calculations (28)
(17) Financial Data Schedules (28)
(18) Multiple Class Plan (26)
(19) Powers of Attorney (27)
- -----------------
(1) Response is incorporated by reference to Registrant's Initial
Registration Statement on Form N-1A. (File Nos. 2-94560 and 811-4154).
(2) Response is incorporated by reference to Registrant's Pre-Effective
Amendment No. 1 on Form N-1A (File Nos. 2-94560 and 811-4154).
(5) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 11 filed on July 30, 1990 on Form N-1A (File Nos. 2-94560
and 811-4154).
(11) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 20 filed on August 26, 1992 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(14) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 28 filed on April 15, 1993 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(15) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 29 filed on April 30, 1993 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(16) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 31 filed on June 14, 1993 on Form N-1A (File Nos. 2-94560
and 811-4154).
(17) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 32 filed on November 2, 1993 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(18) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 33 filed on December 29, 1993 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(19) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 35 filed on February 25, 1994 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(20) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 36 filed on June 28, 1994 on Form N-1A (File Nos. 2-94560
and 811-4154).
(21) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 38 filed on December 30, 1994 on Form N-1A (File Nos. 2-
94560 and 811-4154).
(22) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 40 filed on July 6, 1995 on Form N-1A (File Nos. 2-94560
and 811-4154).
(23) Response is incoporated by refernce to Registrant's Post-Effective
Amendment No. 44 filed on April 1, 1996 on Form N-1A (File Nos. 2-94560
and 811-4154)
(24) Incorporated herein by reference to Rule 24f-2 Notice filed August 29,
1997
(25) Incorporated herein by reference to Post-Effective Amendment No. 66 to
Registration Statement No. 2-10527/811-96.
(26) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 50 filed on July 31, 1997 on Form N-1A (File Nos. 2-94560
and 811-4154).
(27) Incorporated herein by reference to Registrant's Post-Effective
Amendment No. 53 filed on December 2, 1997 on Form N-1A (File Nos. 2-94560
and 811-4154).
(28) Filed herewith.
Item 25. Persons Controlled by or Under Common Control with Registrant:
Not applicable.
Item 26. Number of Holders of Securities (as of November 30, 1997):
Title of Class Number of Record Holders
-------------- ------------------------
Evergreen Treasury Money Market Fund
Class A 1,062
Class Y 133
Evergreen Florida Municipal Bond Fund
Class A 2,614
Class B 742
Class Y 24
Item 27. Indemnification: (1.)
- --------------------------------------
(1.) Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 35 filed on February 25, 1994 on Form N-1A
(File Nos. 2-94560 and 811-4154).
Item 28. Business and Other Connections of Investment Adviser:
The Directors and principal executive officers of First Union National Bank
are:
Edward E. Crutchfield, Jr. Chairman and Chief Executive Officer,
First Union Corporation; Chief Executive
Officer and Chairman, First Union National
Bank
Anthony P. Terracciano President, First Union Corporation; President
First Union National Bank
John R. Georgius Vice Chairman, First Union Corporation;
Vice Chairman, First Union National Bank
Marion A. Cowell, Jr. Executive Vice President, Secretary &
General Counsel, First Union Corporation;
Secretary and Executive Vice President,
First Union National Bank
Robert T. Atwood Executive Vice President and Chief Financial
Officer, First Union Corporation; Chief
Financial Officer and Executive Vice
President
All of the above persons are located at the following address: First Union
National Bank, One First Union Center, Charlotte, NC 28288.
The information required by this item with respect to Evergreen Asset
Management Corp. is incorporated by reference to the Form ADV (File No.
801-46522) of Evergreen Asset Management Corp.
The Directors and principal executive officers of Evergreen Distributor,
Inc. are:
Lynn C. Mangum Director, Chairman and Chief Executive
Officer
Robert J. McMullan Director, Executive Vice President and
Treasurer
J. David Huber President
Kevin J. Dell Vice President, General Counsel and Secretary
All of the above persons are located at the following address: Evergreen
Distributor, Inc., 125 West 55th Street, New York, New York 10019.
Evergreen Distributor, Inc. acts as principal underwriter for each
registered investment company or series thereof that is a part of the Evergreen
Keystone "fund complex" as such term is defined in Item 22(a) of Schedule 14A
under the Securities Exchange Act of 1934.
Item 30. Location of Accounts and Records.
All accounts and records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and the Rules 31a-1 through 31a-3 promulgated
thereunder are maintained at one of the following locations:
Evergreen Investment Services, Inc., Evergreen Service Company and Keystone
Investment Management Company, all located at 200 Berkeley Street, Boston,
Massachusetts 02110
First Union National Bank, One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28288
Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase,
New York 10577
Iron Mountain, 3431 Sharp Slot Road, Swansea, Massachusetts 02777
State Street Bank and Trust Company, 2 Heritage Drive, North Quincy,
Massachusetts 02171
Item 31. Management Services.
Not Applicable
Item 32. Undertakings.
The Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Columbus, and State of Ohio, on the 31st day of
December, 1997.
EVERGREEN INVESTMENT TRUST
/s/ William J. Tomko
---------------------------
Name: William J. Tomko
Title: President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on the 31st day of December, 1997.
/s/William J. Tomko /s/ Laurence B. Ashkin*
- ------------------------- -----------------------------
William J. Tomko Laurence B. Ashkin
President amd Treasurer (Principal Trustee
Financial and Accounting Officer)
/s/ Russell A. Salton, III MD* /s/ Thomas L. McVerry*
- ------------------------- ------------------------------
Russell A. Salton, III MD Thomas L. McVerry
Trustee Trustee
/s/ William Walt Pettit* /s/ Michael S. Scofield*
- ---------------------------- -------------------------
William Walt Pettit Michael S. Scofield
Trustee Trustee
/s/ James S. Howell* /s/ Gerald M. McDonnell*
- ----------------------------- ------------------------
James S. Howell Gerald M. McDonell
Trustee Trustee
/s/ Foster Bam*
- -------------------------
Foster Bam
Trustee
*By: /s/ Martin J. Wolin
- -------------------------------
Martin J. Wolin
Attorney-in-Fact
*Martin J. Wolin, by signing his name hereto, does hereby sign this
document on behalf of each of the above-named individuals pursuant to powers of
attorney duly executed by such persons.
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Exhibit
- -------------- -------
11 Consent of KPMG Peat Marwick LLP
16 Performance Calculations
17 Financial Data Schedules
CONSENT OF INDEPENDENT AUDITORS
The Trustees and Shareholders
Evergreen Tax-Free Trust
Evergreen Investment Trust
We consent to the use of our report dated October 10, 1997 incorporated by
reference herein and to the reference to our firm under the caption "Financial
Highlights" in the Prospectus.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Boston, Massachusetts
December 31, 1997
<TABLE>
<CAPTION>
EVERGREEN TREASURY MONEY MARKET FUND CLASS A
$952.50
A NAV A A
IME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Aug-97 BLANK 1,311.71 0.00% 952.50 -4.75% -4.75%
31-Jul-97 1 MO 1,306.12 0.43% 0.43% 956.58 -4.34% -4.34%
31-May-97 QTR 1,295.78 1.23% 1.23% 964.21 -3.58% -3.58%
31-Dec-96 YTD 1,270.71 3.23% 3.23% 983.24 -1.68% -1.68%
31-Aug-96 1 1,251.34 4.82% 4.82% 998.45 -0.15% -0.15%
31-Aug-94 3 1,133.70 15.70% 4.98% 1,102.06 10.21% 3.29%
31-Aug-92 5 1,069.61 22.64% 4.17% 1,168.10 16.81% 3.16%
31-Aug-87 10 #N/A #N/A #N/A #N/A #N/A #N/A
06-Mar-91 INCEPT. 1,000.00 31.17% 4.27% 1,249.41 24.94% 3.49%
</TABLE>
INCEPTION FACTOR: 6.4959
<TABLE>
<CAPTION>
EVERGREEN TREASURY MONEY MARKET FUND CLASS Y
Y
TIME ACCOUNT Y AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Aug-97 BLANK 1,336.73 0.00%
31-Jul-97 1 MO 1,330.68 0.45% 0.45%
31-May-97 QTR 1,319.50 1.31% 1.31%
31-Dec-96 YTD 1,292.38 3.43% 3.43%
31-Aug-96 1 1,271.43 5.14% 5.14%
31-Aug-94 3 1,145.03 16.74% 5.30%
31-Aug-92 5 1,073.87 24.48% 4.48%
31-Aug-87 10 #N/A #N/A #N/A
06-Mar-91 INCEPT. 1,000.00 33.67% 4.57%
</TABLE>
INCEPTION FACTOR: 6.4959
<TABLE>
<CAPTION>
EVERGREEN FLORIDA MUNICIPAL BOND FUND CLASS A
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Aug-97 BLANK 2,053.60 0.00% 952.500 -4.75% -4.75%
31-Jul-97 1 MO 2,075.48 -1.05% -1.05% 942.462 -5.75% -5.75%
31-May-97 QTR 1,997.34 2.82% 2.82% 979.331 -2.07% -2.07%
31-Dec-96 YTD 1,953.45 5.13% 5.13% 1,001.336 0.13% 0.13%
31-Aug-96 1 1,883.02 9.06% 9.06% 1,038.787 3.88% 3.88%
31-Aug-94 3 1,651.01 24.38% 7.54% 1,184.762 18.48% 5.81%
31-Aug-92 5 1,467.49 39.94% 6.95% 1,332.928 33.29% 5.92%
31-Aug-87 10 #N/A #N/A #N/A #N/A #N/A #N/A
11-May-88 INCEPT. 1,000.00 105.36% 8.03% 1,956.057 95.61% 7.47%
INCEPTION FACTOR: 9.3151
</TABLE>
<TABLE>
<CAPTION>
EVERGREEN FLORIDA MUNICIPAL BOND FUND CLASS B
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIT. B AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Aug-97 BLANK 2,012.97 0.00% 50.000 100000.00% 100000.00% 0.00%
31-Jul-97 1 MO 2,036.05 -1.13% -1.13% 49.260 98866.35% 98519.25% -6.06% -6.06%
31-May-97 QTR 1,962.34 2.58% 2.58% 50.000 102580.07% 101525.94% -2.42% -2.42%
31-Dec-96 YTD 1,926.55 4.49% 4.49% 50.000 104485.62% 101525.94% -0.51% -0.51%
31-Aug-96 1 1,862.74 8.06% 8.06% 50.000 108064.93% 102886.60% 3.06% 3.06%
31-Aug-94 3 1,651.01 21.92% 6.83% 27.620 121923.23% 92066.42% 19.16% 6.02%
31-Aug-92 5 1,467.49 37.17% 6.53% 18.278 137170.98% 91391.94% 35.34% 6.24%
31-Aug-87 10 #N/A #N/A #N/A #N/A #N/A #N/A #N/A
11-May-88 INCEPT. 1,000.00 101.30% 7.80% 0.000 201296.83% 99800.00% 101.30% 7.80%
INCEPTION FACTOR: 9.3151
</TABLE>
<TABLE>
<CAPTION>
EVERGREEN FLORIDA MUNICIPAL BOND FUND CLASS Y
Y
TIME ACCOUNT Y AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Aug-97 BLANK 2,056.94 0.00%
31-Jul-97 1 MO 2,078.70 -1.05% -1.05%
31-May-97 QTR 2,000.19 2.84% 2.84%
31-Dec-96 YTD 1,955.59 5.18% 5.18%
31-Aug-96 1 1,884.65 9.14% 9.14%
31-Aug-94 3 1,651.01 24.59% 7.60%
31-Aug-92 5 1,467.49 40.17% 6.99%
31-Aug-87 10 #N/A #N/A #N/A
11-MaY-88 INCEPT. 1,000.00 105.69% 8.05%
INCEPTION FACTOR: 9.3151
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN TREASURY MONEY MARKET FUND CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> SEP-01-1996
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 3,498,693,913
<INVESTMENTS-AT-VALUE> 3,498,693,913
<RECEIVABLES> 30,743,764
<ASSETS-OTHER> 71,884
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,529,509,561
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 497,829,148
<TOTAL-LIABILITIES> 497,829,148
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,031,630,773
<SHARES-COMMON-STOCK> 2,484,732,831
<SHARES-COMMON-PRIOR> 2,607,674,461
<ACCUMULATED-NII-CURRENT> 49,640
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3,031,680,413
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 168,500,697
<OTHER-INCOME> 0
<EXPENSES-NET> (20,256,628)
<NET-INVESTMENT-INCOME> 148,244,069
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 148,244,069
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (148,244,069)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,767,671,119
<NUMBER-OF-SHARES-REDEEMED> (4,907,328,690)
<SHARES-REINVESTED> 16,715,941
<NET-CHANGE-IN-ASSETS> (122,941,630)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 49,640
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (10,831,288)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (20,388,872)
<AVERAGE-NET-ASSETS> 2,421,334,968
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.05)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1
<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN TREASURY MONEY MARKET FUND CLASS Y
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] AUG-31-1997
[PERIOD-START] SEP-01-1996
[PERIOD-END] AUG-31-1997
[INVESTMENTS-AT-COST] 3,498,693,913
[INVESTMENTS-AT-VALUE] 3,498,693,913
[RECEIVABLES] 30,743,764
[ASSETS-OTHER] 71,884
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,529,509,561
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 497,829,148
[TOTAL-LIABILITIES] 497,829,148
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,031,630,773
[SHARES-COMMON-STOCK] 546,914,493
[SHARES-COMMON-PRIOR] 759,956,138
[ACCUMULATED-NII-CURRENT] 49,640
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 3,031,680,413
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 168,500,697
[OTHER-INCOME] 0
[EXPENSES-NET] (20,256,628)
[NET-INVESTMENT-INCOME] 148,244,069
[REALIZED-GAINS-CURRENT] 0
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 148,244,069
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (148,244,069)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,186,926,840
[NUMBER-OF-SHARES-REDEEMED] (2,402,879,746)
[SHARES-REINVESTED] 2,911,261
[NET-CHANGE-IN-ASSETS] (213,041,645)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 49,640
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (10,831,288)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (20,388,872)
[AVERAGE-NET-ASSETS] 673,375,392
[PER-SHARE-NAV-BEGIN] 1
[PER-SHARE-NII] 0.05
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] (0.05)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1
[EXPENSE-RATIO] 0.42
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 101
[NAME] EVERGREEN FLORIDA MUNICIPAL BOND FUND CLASS A
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] AUG-31-1997
[PERIOD-START] SEP-01-1996
[PERIOD-END] AUG-31-1997
[INVESTMENTS-AT-COST] 150,941,611
[INVESTMENTS-AT-VALUE] 159,112,037
[RECEIVABLES] 3,361,629
[ASSETS-OTHER] 8,314
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 162,481,980
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 678,410
[TOTAL-LIABILITIES] 678,410
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 94,193,191
[SHARES-COMMON-STOCK] 10,589,864
[SHARES-COMMON-PRIOR] 11,934,283
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 34,068
[ACCUMULATED-NET-GAINS] 3,352,388
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 8,092,962
[NET-ASSETS] 105,672,609
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 6,572,028
[OTHER-INCOME] 0
[EXPENSES-NET] (815,245)
[NET-INVESTMENT-INCOME] 5,756,783
[REALIZED-GAINS-CURRENT] 2,989,961
[APPREC-INCREASE-CURRENT] 886,928
[NET-CHANGE-FROM-OPS] 9,633,672
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (5,824,608)
[DISTRIBUTIONS-OF-GAINS] (665,344)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 680,065
[NUMBER-OF-SHARES-REDEEMED] (2,225,426)
[SHARES-REINVESTED] 200,942
[NET-CHANGE-IN-ASSETS] (10,050,650)
[ACCUMULATED-NII-PRIOR] 32,872
[ACCUMULATED-GAINS-PRIOR] 1,096,791
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (551,974)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (815,245)
[AVERAGE-NET-ASSETS] 110,394,797
[PER-SHARE-NAV-BEGIN] 9.70
[PER-SHARE-NII] 0.51
[PER-SHARE-GAIN-APPREC] 0.35
[PER-SHARE-DIVIDEND] (0.52)
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 9.98
[EXPENSE-RATIO] 0.74
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN FLORIDA MUNICIPAL BOND FUND CLASS B
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] AUG-31-1997
[PERIOD-START] SEP-01-1996
[PERIOD-END] AUG-31-1997
[INVESTMENTS-AT-COST] 150,941,611
[INVESTMENTS-AT-VALUE] 159,112,037
[RECEIVABLES] 3,361,629
[ASSETS-OTHER] 8,314
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 162,481,980
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 678,410
[TOTAL-LIABILITIES] 678,410
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 31,621,437
[SHARES-COMMON-STOCK] 3,134,781
[SHARES-COMMON-PRIOR] 2,975,000
[ACCUMULATED-NII-CURRENT] 53,105
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (312,907)
[ACCUM-APPREC-OR-DEPREC] (80,250)
[NET-ASSETS] 31,281,385
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 1,773,383
[OTHER-INCOME] 0
[EXPENSES-NET] (495,715)
[NET-INVESTMENT-INCOME] 1,277,668
[REALIZED-GAINS-CURRENT] 798,262
[APPREC-INCREASE-CURRENT] 251,107
[NET-CHANGE-FROM-OPS] 2,327,037
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (1,295,519)
[DISTRIBUTIONS-OF-GAINS] (171,650)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 586,099
[NUMBER-OF-SHARES-REDEEMED] (503,356)
[SHARES-REINVESTED] 77,038
[NET-CHANGE-IN-ASSETS] 2,432,686
[ACCUMULATED-NII-PRIOR] 52,317
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (920,880)
[GROSS-ADVISORY-FEES] (149,059)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (495,715)
[AVERAGE-NET-ASSETS] 29,811,874
[PER-SHARE-NAV-BEGIN] 9.70
[PER-SHARE-NII] 0.42
[PER-SHARE-GAIN-APPREC] 0.35
[PER-SHARE-DIVIDEND] (0.43)
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 9.98
[EXPENSE-RATIO] 1.66
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN FLORIDA MUNICIPAL BOND FUND CLASS Y
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] AUG-31-1997
[PERIOD-START] SEP-01-1996
[PERIOD-END] AUG-31-1997
[INVESTMENTS-AT-COST] 150,941,611
[INVESTMENTS-AT-VALUE] 159,112,037
[RECEIVABLES] 3,361,629
[ASSETS-OTHER] 8,314
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 162,481,980
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 678,410
[TOTAL-LIABILITIES] 678,410
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 24,314,215
[SHARES-COMMON-STOCK] 2,490,213
[SHARES-COMMON-PRIOR] 1,264,156
[ACCUMULATED-NII-CURRENT] 15,071
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 362,576
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 157,714
[NET-ASSETS] 24,849,576
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 1,070,985
[OTHER-INCOME] 0
[EXPENSES-NET] (120,235)
[NET-INVESTMENT-INCOME] 950,750
[REALIZED-GAINS-CURRENT] 464,797
[APPREC-INCREASE-CURRENT] 176,638
[NET-CHANGE-FROM-OPS] 1,592,185
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (960,612)
[DISTRIBUTIONS-OF-GAINS] (81,864)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,566,132
[NUMBER-OF-SHARES-REDEEMED] (353,969)
[SHARES-REINVESTED] 13,894
[NET-CHANGE-IN-ASSETS] 12,590,812
[ACCUMULATED-NII-PRIOR] 13,643
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (9,066)
[GROSS-ADVISORY-FEES] (90,289)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (120,235)
[AVERAGE-NET-ASSETS] 18,057,680
[PER-SHARE-NAV-BEGIN] 9.70
[PER-SHARE-NII] 0.52
[PER-SHARE-GAIN-APPREC] 0.35
[PER-SHARE-DIVIDEND] (0.53)
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 9.98
[EXPENSE-RATIO] 0.67
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
