Left Column
Dear Fellow Shareholder:
We are pleased to bring you an update on the activities
of Evergreen Money Market Trust, whose semi-annual reporting
period ran from September 1, 1994, through February 28,
1995. The Trust's annualized expense ratio (Class Y, no-load
shares) for these six months was .54%.
As we discussed in our last shareholders report, the
Federal Reserve Board began a policy of tightening credit,
starting in February, 1994, in a pre-emptive strike against
inflationary pressures that were perceived as building in
the economy. These periodic rate increases have brought the
Federal Funds rates from a low of 3% up to the current level
of 6%. As Federal Reserve Chairman, Alan Greenspan recently
testified, the happiest outcome for the dollar, which has
fallen to new lows against the Japanese yen and the German
deutschemark, would be for the U.S. economy to follow a path
of slow growth coupled with low inflation. The recently
reported slippages in durable goods orders and new housing
starts, for instance, are precisely what the Fed hopes will
decelerate the economy but not tip it into a recession.
While inflation, although currently subdued, is still on the
increase, the bond market seems willing to tolerate higher
inflation in the short run if it gets slower growth in the
long run.
Throughout the period, our primary goal has been to
position the Trust's maturities to take advantage of rising
interest rates and investment opportunities provided by a
steeper money market yield curve. To this end, we have
continued to "barbell" the portfolio, buying some securities
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Performance as of February 28, 1995(D)
Class Y Class A Class B
Shares Shares Shares
------ ------ ------
<C> <C> <C> <C>
6-Month Total Return 2.44% 2.40% -2.64%
1-Year Total Return 4.36% 4.32% -0.72%
5-Year Average Annual
Compound Return 5.02% 5.01% 4.67%
Average Annual
Compound Return
Since Inception 6.09% 6.08% 5.98%
7-Day Current Yield 5.58% 5.30% 4.60%
7-Day Effective Yield 5.74% 5.44% 4.71%
- -------------------------------------------------------------
</TABLE>
<PAGE>
Right Column
March 20, 1995
out at the longer end of the curve to capture higher yields,
while at the same time targeting meeting dates of the
Federal Open Market Committee when we believed further rate
tightening could occur. This investment approach has
produced a wide average maturity range, fluctuating between
77 days on September 1, and 28 days on January 31, the date
of the latest Fed rate increase.
Based on its twelve-month yield-to-date each December,
the Trust's yields (Class Y, no-load shares) have been
higher than the Donoghue's Money Funds Average for each full
year that the Trust has existed. The following chart
compares the Trust's monthly yields for the past six months
to the Donoghue's average. As of February 28, 1995, there
were 248 funds in this average.
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Evergreen Donoghue's
Money Market Money Fund
Month Trust* Averages**
--------------------------------------------------
<S> <C> <C>
September 1994 3.58% 3.16%
October 3.68% 3.32%
November 3.82% 3.49%
December 3.99% 3.70%
January 1995 4.18% 3.92%
February 4.37% 4.14%
- ------------------------------------------------------------
</TABLE>
We appreciate your support and confidence in Evergreen
Money Market Trust as we continue to monitor the economy and
respond to yield average.
Sincerely,
Stephen A. Lieber Ethel B. Sutton
Chairman Portfolio Manager
Evergreen Asset
Management Corp.
- --------------------------------------------------------------------------------
Figures represent past performance, which is no guarantee of future results.
(D) Net of voluntary advisory fee waivers and expense absorption. Had expenses
not been absorbed, the Trust's 7-day current and effective yields as of February
28, 1995, would have been 5.38% and 5.53% for Class Y shares, 5.08% and 5.21%
for Class A shares, and 4.10% and 4.18% for Class B shares, respectively.
Voluntary fee waivers and expense absorptions may be revised at any time. Yields
fluctuate. An investment in the Trust is neither insured nor guaranteed by the
U.S. Government, and there can be no assurance that the Trust will be able to
maintain a stable net asset value of $1.00 per share. Fund's inception: 11/2/87
Since Class A and Class B shares were not in existence until 1/4/95 and 1/26/95,
respectively, the performance for such classes until such dates has been
calculated based upon the performance of the existing no-load (Class Y) shares
as adjusted for any front-end or back-end sales charges. That perfor- mance for
Class A and Class B shares until 1/4/95 and 1/26/95, respectively, does not
reflect any 12b-1 fees and if reflected, the returns would be lower. The Trust
may incur 12b-1 expenses up to an annual maximum of .75 of 1% of its aggregate
average daily net assets attributable to Class A shares and 1.00% of its
aggregate average daily net assets attributable to Class B shares. For the
foreseeable future, however, management intends to limit such payments on Class
A shares to .30 of 1% of the Trust's aggregate average daily net assets.
* Calculated as total dividends declared per share for the month, divided by
the number of days for which dividends were declared for the month and
multiplied by 365.
** IBC/Donoghue's Money Fund Averages(TM) for all First Tier taxable funds
listed in its monthly publication.
<PAGE>
Statement of Investments
February 28, 1995 (unaudited)
- --------------------------------------------------------------------------------
Left Column
<TABLE>
<CAPTION>
Principal
Amount Issue Value
- ------------------------------------------------------------
<S> <C> <C>
Bankers' Acceptances - 15.4 %
- ------------------------------------------------------------
Bank of Montreal
$5,000,000 6.25% Due 06/30/95 $ 4,894,965
5,000,000 6.12% Due 08/15/95 4,858,050
- ------------------------------------------------------------
Bank of Tokyo, Ltd.
2,900,000 5.21% Due 03/07/95 2,897,482
4,000,000 6.42% Due 04/18/95 3,965,760
- ------------------------------------------------------------
1,000,000 Banque Nationale de Paris
6.25% Due 04/06/95 993,750
- ------------------------------------------------------------
Barclays Bank PLC
1,000,000 6.25% Due 04/07/95 993,576
500,000 6.30% Due 04/13/95 496,238
500,000 6.30% Due 04/14/95 496,150
500,000 6.35% Due 04/21/95 495,502
1,000,000 6.10% Due 05/23/95 985,936
- ------------------------------------------------------------
Dai-Ichi Kangyo Bank, Ltd.
6,000,000 6.10% Due 03/28/95 5,972,550
1,200,000 6.40% Due 04/07/95 1,192,107
- ------------------------------------------------------------
1,000,000 Industrial Bank of Japan, Ltd.
6.40% Due 04/03/95 994,133
- ------------------------------------------------------------
Mitsubishi Bank, Ltd.
3,000,000 6.00% Due 03/20/95 2,990,500
2,000,000 6.00% Due 03/23/95 1,992,667
- ------------------------------------------------------------
Societe Generale
2,569,044 6.41% Due 04/03/95 2,553,949
843,880 6.45% Due 04/24/95 835,716
- ------------------------------------------------------------
Total Bankers' Acceptances
(Cost $37,609,031) 37,609,031
- ------------------------------------------------------------
Commercial Paper - 80.5%
- ------------------------------------------------------------
Bank Holding Companies - 6.3%
- ------------------------------------------------------------
Commerzbank U.S. Finance, Inc.
1,900,000 5.10% Due 03/07/95 1,898,385
- ------------------------------------------------------------
10,000,000 Dresdner U.S. Finance, Inc.
6.13% Due 06/12/95 9,824,614
- ------------------------------------------------------------
3,750,000 Svenska Handelsbanken
6.07% Due 04/07/95 3,726,605
- ------------------------------------------------------------
15,449,604
- ------------------------------------------------------------
Chemicals - 7.7%
- ------------------------------------------------------------
4,000,000 Sinochem American Holdings
Inc., (LOC Credit Suisse)
6.09% Due 03/31/95 3,979,700
- ------------------------------------------------------------
10,000,000 U.S. Borax & Chemical Corp.
6.07% Due 05/08/95 9,885,344
- ------------------------------------------------------------
5,000,000 WMX Technologies Inc.
5.22% Due 05/12/95 4,947,800
- ------------------------------------------------------------
18,812,844
- ------------------------------------------------------------
</TABLE>
<PAGE>
Right Column
<TABLE>
<CAPTION>
Principal
Amount Issue Value
- ------------------------------------------------------------
<S> <C> <C>
Diversified - 6 2%
- ------------------------------------------------------------
$6,600,000 Progress Funding Corp.,
(LOC Fuji Bank)
6.17% Due 05/12/95 $ 6,518,556
- ------------------------------------------------------------
Sumitomo Corp. of America
6,400,000 6.30% Due 03/31/95 6,366,400
- ------------------------------------------------------------
2,200,000 6.12% Due 05/12/95 2,173,072
- ------------------------------------------------------------
15,058,028
- ------------------------------------------------------------
Electric Power - 6.4%
- ------------------------------------------------------------
10,000,000 AES Barbers Point Inc.,
(LOC Bank of America)
6.00% Due 03/24/95 9,961,667
- ------------------------------------------------------------
3,950,000 Central Louisiana Electric Co.
6.10% Due 04/25/95 3,913,188
- ------------------------------------------------------------
1,800,000 Florida Power & Light Co.
5.98% Due 03/27/95 1,792,226
- ------------------------------------------------------------
15,667,081
- ------------------------------------------------------------
Finance - 19.7%
- ------------------------------------------------------------
B.I. Funding Inc.
3,000,000 6.04% Due 03/29/95 2,985,907
4,300,000 6.07% Due 04/10/95 4,270,999
- ------------------------------------------------------------
10,000,000 Dynamic Funding Corp.
(Series B), (LOC Fuji Bank)
6.11% Due 05/18/95 9,867,617
- ------------------------------------------------------------
McKenna Triangle National Corp.
5,675,000 6.03% Due 03/27/95 5,650,285
- ------------------------------------------------------------
3,000,000 New York State
Job Development Authority,
6.00% Due 03/13/95 2,994,000
- ------------------------------------------------------------
10,000,000 Receivables Capital Corp.,
(LOC Bank of America)
6.05% Due 04/17/95 9,921,014
- ------------------------------------------------------------
7,000,000 Sanwa Business Credit Corp.
6.00% Due 3/30/95 6,966,167
- ------------------------------------------------------------
5,600,000 Strategic Asset Funding Corp.,
(LOC Sanwa Bank)
6.07% Due 3/31/95 5,571,673
- ------------------------------------------------------------
48,227,662
- ------------------------------------------------------------
Food & Beverages - 6.9%
- ------------------------------------------------------------
5,000,000 Golden Peanut Co.,
6.10% Due O6/08/95 4,916,125
- ------------------------------------------------------------
Sysco Corp.
4,400,000 6.02% Due 03/30/95 4,378,662
1,610,000 6.00% Due 05/23/95 1,587,728
- ------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Left Column
<TABLE>
<CAPTION>
Principal
Amount Issue Value
- ------------------------------------------------------------
<S> <C> <C>
Commercial Paper - (continued)
- ------------------------------------------------------------
Food & Beverages - (continued)
- ------------------------------------------------------------
$6,000,000 Texas Agricultural
Finance Authority
6.10% Due 04/18/95 $ 5,951,200
- ------------------------------------------------------------
16,833,715
- ------------------------------------------------------------
Forest Products - 2.3%
- ------------------------------------------------------------
5,555,000 Temple-Inland, Inc.
6.00% Due 03/24/95 5,533,706
- ------------------------------------------------------------
Insurance - 7.5%
- ------------------------------------------------------------
American Honda Finance
Corp.
8,000,000 6.02% Due 03/22/95 7,971,907
2,000,000 6.02% Due 03/30/95 1,990,301
- ------------------------------------------------------------
8,475,000 Chubb Capital Corp.
5.23% Due 05/15/95 8,382,658
- ------------------------------------------------------------
18,344,866
- ------------------------------------------------------------
Leasing - 0.7%
- ------------------------------------------------------------
1,700,000 NNW Utility Funding Corp.
(SB Capital Markets
Assurance Corp.)
6.00% Due 03/01/95 1,700,000
- ------------------------------------------------------------
Pharmaceuticals & Healthcare - 4.1%
- ------------------------------------------------------------
American Home Products
Corp.
8,700,000 6.10% Due 03/28/95 8,660,197
1,300,000 6.10% Due 03/31/95 1,293,392
- ------------------------------------------------------------
9,953,589
- ------------------------------------------------------------
Real Estate - 4.0%
- ------------------------------------------------------------
10,000,000 Embarcadero Center Venture
(Four), (LOC Dai-Ichi
Kangyo Bank, Ltd.)
6.10% Due 05/22/95 9,861,056
- ------------------------------------------------------------
Telecommunications - 2.4%
- ------------------------------------------------------------
6,000,000 Comsat Corp.
6.02% Due 03/20/95 5,980,937
- ------------------------------------------------------------
</TABLE>
<PAGE>
Right Column
<TABLE>
<CAPTION>
Principal
Amount Issue Value
- ------------------------------------------------------------
<S> <C> <C>
Textiles & Apparel - 3.3%
- ------------------------------------------------------------
$8,000,000 Calcot Ltd.
6.10% Due 03/28/95 $ 7,963,400
- ------------------------------------------------------------
Transportation - 3.0%
- ------------------------------------------------------------
2,500,000 JAL Capital Corp.
6.10% Due 05/10/95 2,470,347
- ------------------------------------------------------------
4,800,000 United Capital Services, Inc.,
(LOC Fuji Bank)
6.03% Due 03/13/95 4,790,352
- ------------------------------------------------------------
7,260,699
- ------------------------------------------------------------
Total Commercial Paper
(Cost $196,647,187) 196,647,187
- ------------------------------------------------------------
U.S. Government Agency Obligations - 19.4%
- ------------------------------------------------------------
2,000,000 Federal Farm Credit Bank
5.84% Due 03/29/95 1,990,916
- ------------------------------------------------------------
Federal Home Loan Mortgage Corp.
16,800,000 5.90% Due 03/28/95 16,725,660
- ------------------------------------------------------------
Federal National Mortgage
Association
19,000,000 5.90% Due 03/22/95 18,934,608
10,000,000 5.28% Due 06/30/95 9,822,533
- ------------------------------------------------------------
Total U.S. Government Agency
Obligations (Cost $47,473,717) 47,473,717
- ------------------------------------------------------------
Total Investments*
(Cost $281,729,935) 115.3% 281,729,935
Other Assets & Liabilities-Net (15.3) (37,500,646)
- ------------------------------------------------------------
Total Net Assets 100.0% $244,229,289
- ------------------------------------------------------------
- ------------------------------------------------------------
<FN>
LOC - Letter of Credit
SB - Surety Bond
*All securities held by the Fund at February 28, 1995 are
traded on a discount basis; the interest rate shown is the
discount rate to be earned at the time of purchase by the
Fund.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
February 28, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investments at value (amortized cost $281,729,935) $281,729,935
Cash 689,880
Receivable for Fund shares sold 534,800
Prepaid expenses 86,611
- --------------------------------------------------------------------------------
Total assets 283,041,226
- --------------------------------------------------------------------------------
Liabilities:
Payable for Fund shares repurchased 38,582,930
Payable to Adviser 31,896
Accrued advisory fee 57,370
Accrued expenses 106,884
Dividend payable in cash 32,857
- --------------------------------------------------------------------------------
Total liabilities 38,811,937
- --------------------------------------------------------------------------------
Net assets:
Paid-in capital 244,765,631
- --------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (536,342)
- --------------------------------------------------------------------------------
Net assets $244,229,289
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Calculation of maximum offering price:
Class A shares
Net asset value and offering price per share
($668,255/668,251 shares of beneficial interest
issued and outstanding) $1.00
=====
Class B shares
Net asset value and offering price per share
($35,161/35,161 shares of beneficial interest issued and outstanding) $1.00
=====
Class Y shares
Net asset value and offering price per share
($243,525,873/244,062,219 shares of beneficial interest
issued and outstanding) $1.00
=====
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations
Six Months Ended February 28, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Interest and discount earned $7,393,108
Expenses:
Advisory fee $ 681,432
Transfer agent fee 185,572
Professional fees 32,667
Registration and filing fees 28,179
Custodian fee 27,638
Reports and notices to shareholders 23,184
Trustees' fees and expenses 17,949
Insurance 6,981
Distribution fee-Class A shares 165
Distribution and services fees-Class B shares 29
Other 6,193
---------
1,009,989
---------
Less: Advisory fee waiver (272,573)
Expense reimbursement (1,276)
---------
Total expenses 736,140
- --------------------------------------------------------------------------------
Net investment income 6,656,968
- --------------------------------------------------------------------------------
Net realized gain on investments 4,710
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations $6,661,678
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Statement of Changes in Net Assets
- -----------------------------------------------------------------------------------------
Six Months Ended Ten Months
February 28, 1995 Ended
(unaudited) August 31, 1994
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 6,656,968 $ 8,623,202
Net realized gain (loss) on investments 4,710 (541,052)
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 6,661,678 8,082,150
- -----------------------------------------------------------------------------------------
Dividends to shareholders from net investment income:
Class A shares (2,981) -
Class B shares (145) -
Class Y shares (6,653,842) (8,623,202)
- -----------------------------------------------------------------------------------------
Total distributions to shareholders (6,656,968) (8,623,202)
- -----------------------------------------------------------------------------------------
Fund share transactions (Note 7)
Net decrease resulting from Fund share transactions (28,890,912) (25,761,783)
- -----------------------------------------------------------------------------------------
Net decrease in net assets (28,886,202) (26,302,835)
Net assets:
Beginning of year 273,115,491 299,418,326
- -----------------------------------------------------------------------------------------
End of period $244,229,289 $273,115,491
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements (unaudited)
Left Column
Note 1--Change in Accounting and Tax Year
The Evergreen Money Market Trust (the "Fund") was
organized in the Commonwealth of Massachusetts as a
Massachusetts business trust on August 19, 1987,
and registered under the Investment Company Act of
1940, as amended (the "Act"), as a diversified
open-end management investment company. On
September 21, 1994, the Fund's trustees approved a
change in the Fund's accounting and tax year from
October 31 to August 31.
Note 2--Approval and Issuance of Multiple
Classes of Shares
On December 13, 1994, the Fund's shareholders,
among other things, approved amendments to the
Declaration of Trust to permit the issuance of
additional classes of shares. On December 27, 1994,
the Securities and Exchange Commission approved the
application to issue additional classes of shares.
In connection with the adoption of the multiple
class distribution program, the Trustees have
designated the existing shares of the Fund as Class
Y (no load) shares and have created two new classes
of shares designated Class A and Class B shares.
Class B shares are offered with a contingent
deferred sales charge payable when shares are
redeemed which would decline from 5% to zero over a
seven year period. All three classes of shares have
identical voting, dividend, liquidation and other
rights, except certain classes bear distribution
expenses (see note 5) and have exclusive voting
rights with respect to its distribution plan.
NOTE 3--Significant accounting policies
The following is a summary of significant
accounting policies consistently followed by the
Fund in the preparation of its financial
statements. The policies are in conformity with
generally accepted accounting principles.
Security Valuation: Portfolio securities are
valued at amortized cost, which approximates
market value. The amortized cost method involves
recording a security at cost on the date of
purchase and thereafter assuming a straight-line
amortization to maturity of any discount or
premium.
Securities Transactions and Investment Income:
Securities transactions are recorded on the trade
date (the date the order to buy or sell is
executed). Interest income, including the
amortization of discount and premium, is
recognized on the accrual basis.
<PAGE>
Right Column
Dividends to Shareholders: The Fund declares
substantially all of its net investment income as
dividends each business day to shareholders of
record. At the end of each month, such dividends
are either reinvested in Fund shares and credited
to the shareholder's account or, if elected by
the shareholder, paid in cash. Distributions of
net realized gains (if any) will be made at least
annually.
Federal Income Tax: It is the Fund's policy to
comply with the requirements of the Internal
Revenue Code applicable to regulated investment
companies and to distribute all of its taxable
income to its shareholders. Therefore, no Federal
income tax provision is required. The cost of
portfolio securities for Federal income tax
purposes is the same as for financial reporting
purposes. The Fund has elected for Federal income
tax purposes to treat $541,052 of net capital
losses that arose after October 31, 1993
("post-October losses") within the prior fiscal
year end as if arising on the first business day
of the current fiscal year.
Allocation of Expenses: Expenses specifically
identifiable to a class of shares are charged to
the Class. Other expenses common to the Fund as a
whole, are primarily allocated to the classes in
the Fund in proportion to net assets.
NOTE 4--Advisory Fee and Related Party
Transactions
Evergreen Asset Management Corp. (the "Adviser"),
an affiliate of Lieber & Company, is the investment
adviser to the Fund and also furnishes the Fund
with administrative services. The Adviser, which is
an indirect, wholly-owned subsidiary of First Union
Corporation, succeeded on June 30, 1994 to the
advisory business of the same name, but under
different ownership. The Adviser is entitled to a
fee, accrued daily and payable monthly, for the
performance of its services at the annual rate of
.50 of 1% of the daily net assets of the Fund. For
the six months ended February 28, 1995, the Adviser
voluntarily waived a portion of its advisory fee.
In addition, the Adviser voluntarily reimbursed
Class A and Class B shares for certain Class
specific expenses in the amount of $638 for each
class. The Adviser may, at its discretion revise or
cease this voluntary waiver and expense
reimbursement at any time.
The Adviser has agreed to reimburse the Fund to the
extent that the Fund's aggregate annual operating
expenses (including the Adviser's fee but excluding
interest, taxes, brokerage commissions, 12b-1
distribution and shareholder service fees and
extraordinary expenses) exceed 1.00% of its daily
net assets for any fiscal year. The expenses of the
<PAGE>
Notes to Financial Statements (unaudited) (continued)
Left Column
Fund for the six months ended February 28,1995, did
not exceed this limit.
Lieber & Company is the investment sub-adviser to
the Fund. Lieber & Company is reimbursed by the
Adviser, at no additional expense to the Fund, for
its cost of providing investment advisory services
to the Adviser.
Note 5--Distribution and Shareholder
Services Fees
The Fund has adopted for each of its Class A and
Class B shares, a Distribution Plan (the "Plans")
pur suant to Rule 12b-1 under the Act. Under the
terms of the Plans, the Fund may incur
distribution-related and shareholder servicing-
related expenses which may not exceed, as a
percentage of average daily net assets on an annual
basis, .75 of 1% for Class A shares and 1% for
Class B shares. The payments under the Class A Plan
will be voluntarily limited to .30 of 1%.
In connection with the Plans, the Fund has entered
into a distribution agreement with Evergreen Funds
Distributor, Inc. ("EFD"), a subsidiary of Furman
Selz Incorporated, whereby the Fund will compensate
EFD for its services at a rate which may not
exceed, as a percentage of average daily net assets
on an annual basis, .30 of 1% for Class A shares
and .75 of 1% for Class B shares. Such fees are
accrued daily and paid monthly. The Agreement
provides that EFD will use such fees to finance
activities that promote the sale of Class A and
Class B shares.
A portion of the payments under the Class B Plan up
to .25 of 1% of average daily net assets may
constitute a shareholder service fee. The Fund has
entered into a Shareholder Services Agreement with
First Union Brokerage Services ("FUBS"), an
affiliate of the Adviser, whereby the Fund will
compensate FUBS for certain services provided to
shareholders and/or for the maintenance of
shareholder accounts relating to the Fund's Class B
shares. Such fees are accrued daily and paid
monthly.
NOTE 6--Concentration of Credit Risk
The Fund maintains a diversified portfolio of money
market instruments which are deemed, under
Securities and Exchange Commission rule 2a-7 under
the Act, to have a maturity of 397 days or less and
whose ratings, at the time of purchase, are of the
highest rating category issued by at least two of
the nationally recognized rating organizations
(e.g., A-1 by Standard and Poor's Corporation and
Prime-1 by Moody's Investors Service, Inc.). The
ability of the issuers of the securities held by
the Fund to meet their obligations may be affected
by economic developments in a specific industry,
region or country. Certain money
<PAGE>
Right Column
market instruments may be entitled to the benefit
of standby letters of credit or other guarantees of
banks or other financial institutions.
Note 7-Shares of Beneficial Interest
There is an unlimited number of $.0001 par value
shares of beneficial interest authorized, divided
into three classes, designated Class A, Class B and
Class Y. Transactions in shares of beneficial
interest were as follows:
Six Months Ended
February 28, 1995
(unaudited)
- ---------------------------------------------------
Class A*
Shares sold $691,614
Shares issued on reinvestment
of distributions 2,920
Shares redeemed (26,283)
- ---------------------------------------------------
Net increase $668,251
- ---------------------------------------------------
- ---------------------------------------------------
Class B*
Shares sold $35,160
Shares issued on reinvestment
of distributions 1
Shares redeemed -
- ---------------------------------------------------
Net increase $35,161
- ---------------------------------------------------
- ---------------------------------------------------
Class Y
Shares sold $764,695,530
Shares issued on reinvestment
of distributions 6,309,994
Shares redeemed (800,599,848)
- ---------------------------------------------------
Net decrease $ (29,594,324)
- ---------------------------------------------------
- ---------------------------------------------------
Total net decrease resulting
from share transactions $ (28,890,912)
- ---------------------------------------------------
- ---------------------------------------------------
Ten Months
Ended
August 31, 1994
- ---------------------------------------------------
Class Y
Shares sold $1,123,908,685
Shares issued on reinvestment
of distributions 8,126,641
Shares redeemed (1,157,797,109)
- ---------------------------------------------------
Net decrease resulting
from Fund share transactions $ (25,761,783)
- ---------------------------------------------------
- ---------------------------------------------------
*For Class A and B shares, the Fund share
transaction activity reflects the period from
commencement of class operations January 4, 1995
and January 26, 1995, respectively through February
28, 1995.
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Shares Class B Shares
January 4, 1995* January 26, 1995*
through through
Per Share Data February 28, 1995 February 28, 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $1.000 $1.000
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income .008 .004
Net realized gain (loss)
on investments - -
- --------------------------------------------------------------------------------
Total income from investment operations .008 .004
- --------------------------------------------------------------------------------
Less distributions to shareholders
from net investment income (.008) (.004)
- --------------------------------------------------------------------------------
Net asset value, end of period $1.000 $1.000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Return(D) .8% .4%
Ratios & Supplemental Data
Net assets, end of period (000's omitted) $668 $35
Ratios to average net assets:#
Expenses .85% 1.56%
Net investment income 5.40% 5.03%
Voluntary advisory fee waiver(D)(D) .20% .20%
Voluntary expense reimbursement(D)(D) .25% .24%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<FN>
* Commencement of class operations.
# Annualized. Due to the recent commencement of their offering, the ratios
for Class A and Class B shares are not necessarily comparable to that of
the Class Y shares, and are not necessarily indicative of future ratios.
(D) Total return is calculated on net asset value. Contingent deferred sales
charge is not reflected. Total return is calculated for the periods
indicated and is not annualized.
(D)(D) This voluntary expense decrease is reflected in both the expense and
net investment income ratios shown above.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
Class Y Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Ten Months Year Ended October 31,
February 28, 1995 Ended --------------------------------
Per Share Data (unaudited) August 31, 1994 1993 1992 1991 1990
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .02 .03 .03 .04 .07 .08
Net realized gain (loss)
on investments - - - - - -
- --------------------------------------------------------------------------------------------------------
Total income from investment
operations .02 .03 .03 .04 .07 .08
- --------------------------------------------------------------------------------------------------------
Less distributions to
shareholders from
net investment income (.02) (.03) (.03) (.04) (.07) (.08)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
Total return(D) 2.4% 2.9% 3.2% 4.2% 6.7% 8.4%
Ratios & Supplemental Data
Net assets, end of year
(in millions) $244 $273 $299 $358 $438 $458
Ratios to average net assets:
Total Expenses .54%* .32%* .39% .36% .30% .35%
Net investment income 4.88%* 3.46%* 3.19% 4.18% 6.53% 8.08%
Voluntary advisory fee waiver(D)(D) .20%* .39%* .32% .36% .40% .34%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<FN>
* Annualized.
(D) Total return is calculated for the periods indicated and is not annualized.
(D)(D) This voluntary expense decrease is reflected in both the expense and net investment income ratios
shown above.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Evergreen Money Market Trust
Left Column
In our opinion, the accompanying Statement of Assets and
Liabilities, including the Statement of Investments, and
the related Statements of Operations and of Changes in
Net Assets and the Financial Highlights present fairly,
in all material respects, the financial position of
Evergreen Money Market Trust (the "Fund") at August 31,
1994, the results of its operations for the ten months in
the period then ended, the changes in its net assets for
the ten months in the period then ended and for the year
ended October 31, 1993 and the financial highlights for
the ten months in the period then ended and for each of
the five years in the period ended October 31, 1993, in
conformity with generally accepted accounting principles.
These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our
responsibility is to express an opinion on these
financial statements based on our audits. We conducted
our audits of these financial statements in accordance
with generally accepted auditing standards which require
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made
by management, and evaluating the overall financial
statement presentation. We believe that our audits, which
included confirmation of securities at August 31, 1994 by
correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
October 17, 1994
Right Column
- ---------------------------------------------------------
FEDERAL INCOME TAX STATUS OF DIVIDENDS
(unaudited)
Dividends paid from net investment income by The
Evergreen Money Market Trust during the ten
months ended August 31, 1994, represent ordinary
income for Federal income tax purposes.
- ---------------------------------------------------------
<PAGE>
Left Column
- --------------------------------------------------------
TRUSTEES
Laurence B. Ashkin
Foster Bam
James S. Howell
Robert J. Jeffries
Gerald M. McDonnell
Thomas L. McVerry
William Walt Pettit
Russell A. Salton, III, M.D.
Michael S. Scofield
INVESTMENT ADVISER
Evergreen Asset Management Corp.
2500 Westchester Avenue
Purchase, New York 10577
CUSTODIAN & TRANSFER AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Shereff, Friedman, Hoffman & Goodman
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
DISTRIBUTOR
Evergreen Funds Distributor, Inc.
The investment adviser to the Evergreen Funds is
Evergreen Asset Management Corp., which is wholly
owned by First Union National Bank of North Carolina.
Investments in the Evergreen Funds are not endorsed
or guaranteed by First Union, are not deposits or other
obligations of First Union, are not insured or otherwise
protected by the U.S. Government, the FDIC or any
other government agency, and involve investment
risks, including possible loss of principal.
The Evergreen Funds are sponsored and distributed by
Evergreen Funds Distributor, Inc., which is independent
of Evergreen and First Union.
Evergreen Money Market Trust
2500 Westchester Avenue
Purchase, New York 10577
Right Column
- --------------------------------------------------------
Evergreen
Money
Market
Trust
Semi-Annual Report
February 28, 1995
- --------------------------------------------------------
