EVERGREEN MONEY MARKET TRUST, N-30D, 1997-05-05

EVERGREEN MONEY MARKET TRUST
N-30D, 1997-05-05

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EVERGREEN
INSTITUTIONAL
MONEY MARKET FUNDS

(Photo of currency)

(Photo of coins)

(Photo of eagle)

1997 ANNUAL REPORT FOR THE YEAR ENDED FEBRUARY 28, 1997.

Evergreen Keystone
(Evergreen Logo) FUNDS (Evergreen Logo)
<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUNDS

TABLE OF CONTENTS

<TABLE>
<C> <S> <C>
INSTITUTIONAL MONEY Economic Overview.......................................... 1
MARKET FUND A Report From Your Portfolio Manager....................... 2

(Photo of currency)
Statement of Investments................................... 3
Statement of Assets and Liabilities........................ 7
Statement of Operations.................................... 8
Statement of Changes in Net Assets......................... 9
Financial Highlights....................................... 10

INSTITUTIONAL A Report From Your Portfolio Manager....................... 11
TAX EXEMPT Statement of Investments................................... 12

(Photo of coins)
MONEY MARKET FUND Statement of Assets and Liabilities........................ 15
Statement of Operations.................................... 16
Statement of Changes in Net Assets......................... 17
Financial Highlights....................................... 18

INSTITUTIONAL TREASURY A Report From Your Portfolio Manager....................... 19
MONEY MARKET FUND Statement of Investments................................... 20

(Photo of eagle)
Statement of Assets and Liabilities........................ 22
Statement of Operations.................................... 23
Statement of Changes in Net Assets......................... 24
Financial Highlights....................................... 25

Combined Notes to Financial Statements..................... 26
Independent Auditors' Report............................... 30
Trustees and Officers...................................... Inside Back Cover
</TABLE>

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUNDS

ECONOMIC OVERVIEW
BY STEPHEN A. LIEBER, CHAIRMAN
EVERGREEN ASSET MANAGEMENT CHAIRMAN CORP.

The strong momentum of the United States economy
at the end of 1996 was well sustained through the
first quarter of 1997. Industrial production rose in
each month of the first quarter, 0.10% in January, (Photo of Stephen A.
0.60% in February, and Lieber Goes Here)
0.90% in March. Industrial capacity utilization reflected the dynamic economy,
rising to 84.1%, the highest level since March 1995. Despite the sustained
growth in the U.S. economy, the rate of inflation continues to be moderate. The
Consumer Price Index increase was 1.8% on an annual rate basis during the first
quarter, well below the moderate 3.3% rise during 1996. These recent economic
figures combine to offset the fearful expectations of many economists and
participants in the fixed income markets that the economy might not be capable
of significant overall growth without inciting inflation. Most observers,
however, are very reluctant to assume that the major driving force of inflation,
rising wages, is unlikely to appear. They point to record low inventory-to-sales
ratios, low level of inventories on the retailing and wholesaling level, and the
rising operating rate of industrial production. While arguing over whether the
recent 6% growth in consumer spending is sustainable, and whether consumer
credit card debt is over-extended, there are few who would project any near-term
significant decline in overall domestic demand.
The many aspects of domestic economic growth have led to an intense watch on
the trends of wage levels. The rise in average hours worked, some gradual creep
in compensation, and the sustained jobless level at just over 5%, have led many
key observers to conclude that any further acceleration in the economy's
momentum will lead to some breakout in wage compensation, especially in areas of
labor shortage. The Federal Reserve has clearly concluded that this risk
justifies the slowing effort of the recent 0.25% increase in the discount rate.
The majority of observers expect that the economic figures published through
April will probably lead to another 0.25% rise in May. There is widespread
discussion about whether there will be more increases of 0.25%, or even a rise
of 0.50% over the next few months. In initiating the recent discount rate
increase, Federal Reserve Chairman, Alan Greenspan, described the move as "pre-
emptive". Consequently, most observers conclude that the Federal Reserve policy
is going to be one of pre-emptive moves when inflationary signs appear in the
economy. Higher short-term interest rates will be the Fed's first line of
defense. The real return in long-term fixed income investments today is in the
area of 5%. This is strikingly higher than the "normal" real return of 3% to 4%,
and well above the 3.6% yield of the new ten-year U.S. Treasury Inflation
Indexed Bonds, which are an appropriate proxy for the real return. This
extremely high rate of real return suggests either that the long-term interest
rate structure in the United States is forecasting a much higher rate of
inflation than presently seen, or is at a level which discounts expectations of
a higher rate of inflation. Many bond market observers believe that the
discounting has been done and, therefore, has provided the better than 7% yields
now available in long-term United States Treasuries.
The fixed income markets currently provide a combination of short-term
uncertainty, and increased long-term confidence. Over the short-term, the data
on economic strength and trends are being read with anxiety as indicators of
whether or not interest rates will rise. Over the longer term, the demonstrated
readiness of the Federal Reserve Open Market Committee to act "pre-emptively" to
ensure the longer term control of inflation, and to maintain stability in the
economy, is highly encouraging for fixed income investment.

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
A REPORT FROM YOUR
PORTFOLIO MANAGER

KELLIE ALLEN

We are pleased to present the first Annual Report for
Evergreen Institutional Money Market Fund. The total returns*
for the periods since inceptions through fiscal year-end on
February 28, 1997, for the Fund's Institutional (no-load) shares
and Institutional Service shares**, are 1.57% and 1.40%,
respectively. The seven-day current and effective yields as of
February 28, were 5.42% and 5.57%, respectively, for
Institutional shares, and 5.16% and 5.30%, respectively, for
Institutional Service shares.

The past six months have proven to be a roller coaster ride (Photo of Kellie
for fixed income investors. The bond market rallied Allen Goes Here)
throughout the second half of calendar 1996 as interest rates declined, but was
stifled as interest rates jumped in December then steadily increased throughout
the first two months of 1997. The yield on the benchmark thirty-year Treasury
bond began the six months at 7.1%, declined, then rebounded, and settled at 6.8%
on February 28. Short-term rates also fluctuated rather dramatically during
this time. The yield on the three-month Treasury bill began the fiscal year at
5.3%, declined steadily through mid-December, then climbed sharply to finish at
5.2% on February 28.

In the final week of February, Federal Reserve Chairman, Alan Greenspan,
rocked the financial markets in an appearance before Congress. Mr. Greenspan,
while acknowledging that inflation remains in check, suggested that the best
course of action may be to raise rates as a preventative measure to curb
inflation before it actually appears. The Federal Reserve Board had neither
raised nor lowered interest rates in well over a year.

The Fund's objective is to achieve as high a level of current income as is
consistent with preserving capital and providing liquidity. Within the Fund, we
continue to maintain a maturity at the longer end of our normal range in an
attempt to lock in higher, more attractive rates. As of fiscal year end, the
Fund's weighted average maturity was 73 days. If rates increase as the year
progresses, our higher-yielding instruments will be increased accordingly. As of
February 28, the Fund's net assets were comprised of 70% commercial paper and
other money market equivalents, 28.3% corporate bonds, and 1.7% adjustable rate
bonds.

Thank you for your investment in the Evergreen Institutional Money Market
Fund.

* PERFORMANCE FIGURES INCLUDE REINVESTMENT OF INCOME DIVIDENDS, AND CAPITAL
GAIN DISTRIBUTIONS, IF ANY. INCEPTION DATES FOR INSTITUTIONAL (NO-LOAD)
SHARES AND INSTITUTIONAL SERVICE SHARES ARE NOVEMBER 19, 1996, AND NOVEMBER
26, 1996, RESPECTIVELY.

** THE FUND MAY INCUR 12B-1 EXPENSES UP TO AN ANNUAL MAXIMUM OF .25 OF 1% OF ITS
AVERAGE DAILY NET ASSETS OF ITS INSTITUTIONAL SERVICE SHARES.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1 PER SHARE. YIELDS FLUCTUATE.

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency) STATEMENT OF INVESTMENTS
FEBRUARY 28, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
BANKER'S ACCEPTANCES -- 3.8%
$18,200,000 Dai-Ichi Kangyo Bank
5.44% 4/1/97.................... $ 18,114,743
15,000,000 Sanwa New York
5.35% 3/3/97.................... 14,995,542
22,000,000 Sumitomo Bank
5.50% 6/10/97................... 21,660,528
TOTAL BANKER'S ACCEPTANCES
(COST $54,770,813)......... 54,770,813
CERTIFICATES OF DEPOSIT -- 3.0%
25,000,000 Sanwa (Yankee)
5.58% 4/4/97.................... 25,002,184
18,000,000 Societe Generale (Yankee)
5.85% 3/3/98.................... 17,996,580
TOTAL CERTIFICATES OF DEPOSIT
(COST $42,998,764)......... 42,998,764
COMMERCIAL PAPER -- 64.3%
BANK HOLDING COMPANIES -- 8.6%
5,000,000 Banca Crt Financial
5.40% 7/7/97.................... 4,904,000
5,000,000 Banca Crt Financial
5.40% 5/27/97................... 4,934,750
4,000,000 Banca Crt Financial
5.43% 6/30/97................... 3,926,997
18,500,000 Corporate Asset
5.32% 3/19/97................... 18,450,790
6,790,000 Creative Capital Corp.
5.43% 5/12/97................... 6,716,261
10,139,000 Creative Capital Corp.
5.45% 4/16/97................... 10,068,393
4,470,000 Creative Capital Corp.
5.47% 5/5/97.................... 4,425,853
15,735,000 Korea Development Bank
5.34% 5/12/97................... 15,566,950
10,000,000 Korea Development Bank
5.37% 3/17/97................... 9,976,132
20,000,000 Korea Development Bank
5.39% 3/17/97................... 19,952,089
25,000,000 Svenska Handelsbanken, Inc.
5.35% 4/7/97.................... 24,862,535
123,784,750
DIVERSIFIED PRODUCTS -- 0.7%
10,525,000 Daewoo International
5.42% 4/7/97.................... 10,466,370

<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
ELECTRONICS -- 3.9%
$14,000,000 Hitachi Credit America
5.36% 4/10/97................... $ 13,916,622
8,900,000 Hitachi Credit America
5.50% 3/14/97................... 8,882,324
13,419,000 Kanematsu USA
5.38% 4/8/97.................... 13,342,795
2,216,000 KZH Holding Corp.
5.38% 6/6/97.................... 2,183,876
3,133,000 KZH Holding Corp.
5.38% 6/19/97................... 3,081,497
10,000,000 Minolta Corp.
5.36% 3/4/97.................... 9,995,533
5,000,000 Seiko Corp
5.37% 3/11/97................... 4,992,542
56,395,189
FINANCE -- 39.5%
18,000,000 Alamo Funding Corp.
5.38%, 3/4/97................... 17,991,930
10,000,000 Anchor Funding Corp.
5.38% 3/18/97................... 9,974,594
4,900,000 Anchor Funding Corp.
5.00% 5/28/97................... 4,834,122
5,972,000 Apex Funding Corp.
5.45% 7/31/97................... 5,834,578
35,000,000 Asset Backed Securities Corp.
5.46% 2/15/98................... 35,000,000
20,000,000 Astro Capital Corp.
5.45% 5/15/97................... 19,772,917
14,285,000 Astro Capital Corp.
5.50% 5/1/97.................... 14,860,208
15,000,000 Astro Capital Corp.
5.50% 5/15/97................... 14,121,318
14,230,000 Atlantic Asset
5.40% 3/17/97................... 14,195,848
14,470,000 Atlas Funding
5.43% 4/9/97.................... 14,384,880
8,500,000 Broadway Capital Corp.
5.38% 4/3/97.................... 8,458,081
8,900,000 CC USA, Inc.
5.40% 6/2/97.................... 8,775,845
15,000,000 Dean Witter
5.32% 3/21/97................... 14,955,667
15,000,000 Dynamic Funding
5.47% 4/2/97.................... 14,927,067
11,750,000 GMAC
6.75% 2/25/98................... 11,867,723
</TABLE>

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EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
STATEMENT OF INVESTMENTS -- (CONTINUED)
FEBRUARY 28, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE

COMMERCIAL PAPER -- 64.3% -- CONTINUED

FINANCE -- CONTINUED
$11,720,000 Gotham Funding Corp.
5.38% 4/15/97................... $ 11,641,183
14,999,000 Gotham Funding Corp.
5.39% 3/7/97.................... 14,985,526
5,275,000 Gotham Funding Corp.
5.40% 4/7/97.................... 5,245,724
10,000,000 Gotham Funding Corp.
5.50% 3/4/97.................... 9,995,417
35,000,000 Jet Funding Corp.
5.46% 4/30/97................... 34,681,500
10,895,000 Jet Funding Corp.
5.50% 4/30/97................... 10,795,129
10,000,000 Konica USA
5.36% 3/14/97................... 9,980,644
4,500,000 Merrill Lynch & Co., Inc.
5.31% 4/21/97................... 4,466,149
6,500,000 Oak Funding Corp.
5.45% 4/3/97.................... 6,467,527
12,000,000 Repeat Offering Sec
5.40% 3/26/97................... 11,955,000
20,000,000 Repeat Offering Sec
5.32% 5/27/97................... 19,742,869
20,000,000 Strait Capital Corp.
5.38% 3/31/97................... 19,910,333
4,625,000 Strategic Asset Funding
5.70% 3/6/97.................... 4,621,339
10,000,000 Strategic Asset Funding
5.36% 3/31/97................... 9,955,333
10,000,000 Strategic Asset Funding
5.39% 3/31/97................... 9,955,083
8,000,000 Strategic Asset Funding
5.42% 3/31/97................... 7,963,867
8,905,000 Strategic Asset Funding
5.45% 5/30/97................... 8,783,669
7,600,000 Toshiba Capital Ltd.
5.30% 4/21/97................... 7,542,937
7,200,000 Toshiba Capital Ltd.
5.43% 5/12/97................... 7,121,808
7,000,000 Toshiba International Finance
5.36% 4/18/97................... 6,949,973
12,200,000 Tri Lateral Capital
5.42% 5/13/97................... 12,065,915
12,675,000 Tri Lateral Capital
5.43% 4/14/97................... 12,590,880
5,000,000 Tri Lateral Capital
5.60% 3/13/97................... 4,990,667
25,000,000 Triple A One Funding Corp.
5.34% 3/10/97................... 24,966,625
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>

FINANCE -- CONTINUED
$18,402,000 Wood Street Funding Corp.
5.36% 3/3/97.................... $ 18,396,520
9,000,000 Wood Street Funding Corp.
5.38% 4/4/97.................... 8,954,270
20,000,000 Working Capital Management Corp.
5.40% 4/17/97................... 19,859,000
35,000,000 Working Capital Management Corp.
5.46% 4/2/97.................... 34,830,133
569,369,798
LEASING -- 3.3%
40,000,000 Orix America, Inc.
5.40% 3/3/97.................... 39,988,000
7,500,000 Orix America, Inc.
5.45% 4/7/97.................... 7,457,989
47,445,989
MACHINERY, EQUIPMENT &
AUTOS -- 2.5%
4,000,000 Dealers Capital Access
5.34% 4/15/97................... 3,973,300
15,675,000 Mitsubishi Motor Credit
5.35% 4/16/97................... 15,567,844
16,000,000 Mitsubishi Motor Credit
5.38% 4/7/97.................... 15,911,529
35,452,673
MAIL ORDER -- 1.7%
25,000,000 Fingerhut
5.32% 3/7/97.................... 24,977,833
REAL ESTATE -- 3.1%
30,000,000 SRD Finance
5.38% 3/13/97................... 29,946,200
8,700,000 Sunbelt Dix, Inc.
5.31% 4/11/97................... 8,647,387
6,300,000 Sunbelt Dix, Inc.
5.40% 3/18/97................... 6,283,934
44,877,521
RESTAURANTS -- 1.0%
14,590,000 Hartz
5.40% 3/5/97.................... 14,581,246
TOTAL COMMERCIAL PAPER
(COST $927,351,369)........ 927,351,369
</TABLE>

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
STATEMENT OF INVESTMENTS -- (CONTINUED)
FEBRUARY 28, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
NOTES & BONDS -- 30.0%
BANKING -- 6.6%
$14,800,000 Bankers Trust
5.75% 1/8/98.................... $ 14,795,789
20,000,000 Banque Nationale De Paribas
5.84% 1/6/98.................... 20,000,000
5,000,000 Chase Manhattan
5.75% 11/26/97.................. 5,009,965
25,000,000 Huntington National Bank MTN
5.49% 2/11/98................... 25,000,000
20,000,000 SouthTrust Bank
5.70% 1/6/98.................... 19,991,837
10,000,000 Toshiba International Finance
5.30% 4/21/97................... 9,924,917
94,722,508
COMPUTERS -- 1.4%
20,000,000 IBM Corp. MTN
5.47% 12/30/97.................. 20,000,000
FINANCE -- 19.4%
15,000,000 AIG Matched Funding Corp FRN
5.41% 5/20/97................... 15,000,533
10,000,000 AIG Matched Funding Corp FRN
5.61% 7/10/97................... 10,002,062
9,140,000 Associates Corp.
7.30% 3/15/98................... 9,265,529
5,000,000 Bear Stearns
5.63% 9/19/97................... 5,005,610
7,000,000 Bear Stearns MTN
5.58% 2/20/98................... 7,014,819
3,600,000 Beneficial Corp
9.13% 2/15/98................... 3,707,500
25,000,000 Centauri Corp.
5.41% 10/30/97.................. 25,001,057
10,000,000 Dean Witter
6.00% 3/1/98.................... 10,036,012
18,000,000 GMAC
7.75% 3/2/98.................... 18,331,200
10,375,000 GMAC
8.38% 1/30/98................... 10,607,012
4,700,000 Household Finance
7.91% 2/6/98.................... 4,787,167
6,500,000 Lehman Brothers Holdings, Inc.
9.50% 6/15/97................... 6,568,630
8,634,000 Lehman Brothers Holdings, Inc.
5.75% 2/15/98................... 8,619,281
6,300,000 Lehman Brothers Holdings, Inc.
7.63% 6/15/97................... 6,332,910
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>

FINANCE -- CONTINUED
$ 4,500,000 Lehman Brothers Holdings, Inc.
8.10% 3/17/98................... $ 4,605,603
10,000,000 Lehman Brothers Holdings, Inc.
8.38% 4/1/97.................... 10,022,420
25,000,000 Merrill Lynch & Co., Inc.
5.43% 10/27/97.................. 25,001,158
11,746,883 Money Store
5.51% 1/15/98................... 11,746,883
10,800,000 NorthStar
5.75% 2/15/98................... 10,800,000
30,000,000 PHH Corp.
5.41% 1/15/98................... 29,994,879
22,800,000 PHH Corp. MTN
5.35% 1/27/98................... 22,793,992
25,000,000 Racers Series 1997
5.44% 1/15/98................... 24,993,571
280,237,828
GOVERNMENT AGENCY -- 1.3%
14,250,000 California Housing
5.62% 5/1/97.................... 14,250,000
4,000,000 Federal Home Loan Mortgage Corp.
5.75% 3/14/97................... 4,000,185
18,250,185
INDUSTRIAL -- 0.3%
4,000,000 GTE Corp
8.85% 3/1/98.................... 4,116,725
PUBLIC UTILITIES -- 1.0%
6,000,000 Public Services Electric & Gas
6.00% 1/1/98.................... 6,002,302
9,000,000 Public Services Electric & Gas
7.13% 11/1/97................... 9,078,050
15,080,352
TOTAL NOTES & BONDS
(COST $432,407,598)........ 432,407,598
REPURCHASE AGREEMENT -- 1.6%
(COST $23,021,577)
23,021,577 Lehman Brothers 5.37% dated
2/28/97,
due 3/3/97 (1).................. 23,021,577
</TABLE>

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
STATEMENT OF INVESTMENTS -- (CONTINUED)
FEBRUARY 28, 1997

<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT COMPANIES -- 0.5%
7,750,724 Fidelity Institutional Fund..... $ 7,750,724
290,536 Fidelity US Treasury Fund....... 290,536
TOTAL INVESTMENT COMPANIES
(COST $8,041,260).......... 8,041,260

TOTAL INVESTMENTS --
(COST $1,488,591,381)
(A) 103.2% 1,488,591,381
OTHER ASSETS AND
LIABILITIES (NET)....... (3.2%) (45,966,446)
NET ASSETS.............. 100.0% $1,442,624,935
</TABLE>

(a) Cost for federal income tax and financial reporting purposes are the same.

(1) Collateralized by $109,447,000 U.S. Treasury Strips, 5/15/18 to 5/15/19;
value including accrued interest $23,482,233

MTN -- Medium Term Note

FRN -- Floating Rate Notes are putable back to the issuer or other parties not
affiliated with the issuer at par on the interest reset dates. Interest
rates are determined and set by the issuer quarterly, semi-annually or
annually depending upon the terms of the security. Interest rates
presented for these securities are those in effect at February 28, 1997.
These securities represent 1.73% of total net assets at February 28,
1997.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1997

<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at value (amortized cost $1,488,591,381)........................................................ $1,488,591,381
Cash........................................................................................................ 5,555
Interest receivable......................................................................................... 5,130,704
Receivable for Fund shares sold............................................................................. 170,000
Unamortized organization expenses........................................................................... 12,942
Other assets................................................................................................ 474,287
Total assets.......................................................................................... 1,494,384,869
LIABILITIES:
Payable for investments purchased........................................................................... 47,498,800
Dividends payable........................................................................................... 3,418,241
Distribution fee payable.................................................................................... 257,825
Administration fee payable.................................................................................. 42,677
Accrued expenses............................................................................................ 542,391
Total liabilities..................................................................................... 51,759,934
NET ASSETS..................................................................................................... $1,442,624,935
NET ASSETS CONSIST OF:
Paid-in capital............................................................................................. $1,442,626,785
Accumulated realized loss on investments.................................................................... (1,850)
Net assets............................................................................................ $1,442,624,935
CALCULATION OF NET ASSET VALUE PER SHARE:
Institutional Service Shares ($867,294,032) (867,294,925 shares of beneficial interest outstanding)...........$ 1.00
Institutional Shares ($575,330,903) (575,331,860 shares of of beneficial interest outstanding)................$ 1.00
</TABLE>

See accompanying notes to combined financial statements.

<PAGE>

EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED FEBRUARY 28, 1997*

<TABLE>
<S> <C> <C>
INCOME:
Interest income................................................................................ $12,624,037
EXPENSES:
Advisory fee (Note 3).......................................................................... $ 337,302
Distribution fee -- Institutional Service Shares (Note 3)...................................... 297,918
Administration fee (Note 3).................................................................... 90,043
Registration................................................................................... 453,627
Custodian fees................................................................................. 46,518
Professional fees.............................................................................. 29,000
Trustees' fees and expenses.................................................................... 1,300
Amortization of organization expenses (Note 2)................................................. 758
Other.......................................................................................... 15,116
Total expenses before waivers and reimbursements............................................... 1,271,582
Less: Expenses waived and reimbursed by Advisor................................................ (815,352)
Net expenses............................................................................. 456,230
Net investment income............................................................................. 12,167,807
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions................................................... (1,850)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................................. $12,165,957
</TABLE>

* Fund commenced operations on November 19, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED FEBRUARY 28, 1997*

<TABLE>
<S> <C>
OPERATIONS:
Net investment income....................................................................................... $ 12,167,807
Net realized loss on investment transactions................................................................ (1,850)
Net increase in net assets resulting from operations........................................................ 12,165,957
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Institutional Service Shares............................................................................. (6,263,482)
Institutional Shares..................................................................................... (5,904,325)
Total distributions to shareholders......................................................................... (12,167,807)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold................................................................................... 2,578,642,264
Proceeds from reinvestment of distributions................................................................. 3,216,759
Payments for shares redeemed................................................................................ (1,139,232,248)
Net increase resulting from Fund share transactions...................................................... 1,442,626,775
Total increase in net assets................................................................................... 1,442,624,925
NET ASSETS:
Beginning of period......................................................................................... 10
End of period............................................................................................... $1,442,624,935
</TABLE>

* Fund commenced operations on November 19, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL MONEY MARKET FUND
(Photo of currency)
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE PERIOD

<TABLE>
<CAPTION>
PERIOD ENDED
FEBRUARY 28, 1997
INSTITUTIONAL INSTITUTIONAL
SERVICE SHARES * SHARES **
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period......................................................... $1.000 $1.000
Net investment income........................................................................ 0.014 0.015
Less distributions to shareholders from net investment income................................ (0.014) (0.015)
Net asset value, end of period............................................................... $1.000 $1.000
Total Return................................................................................. 1.40% 1.57%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)................................................. $ 867,294 $ 575,331
Ratios to average net assets (annualized):
Expenses, net.......................................................................... 0.32% 0.07%
Expenses before waivers and reimbursements............................................. 0.68% 0.43%
Net investment income.................................................................. 5.24% 5.48%
</TABLE>

* Class commenced operations on November 26, 1996.

** Class commenced operations on November 19, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
A REPORT FROM YOUR
PORTFOLIO MANAGER

RICK MARRONE

We are pleased to present the first Annual Report for
Evergreen Institutional Tax Exempt Money Market Fund. The total
returns* for the periods since inceptions through fiscal
year-end on February 28, 1997, for the Fund's Institutional
(no-load) shares and Institutional Service shares**, are 0.96%
and 0.85%, respectively. The seven-day current, effective and
tax-equivalent yields*** as of February 28, were 3.29%, 3.34%
and 5.22%, respectively, for Institutional shares, and 3.04%,
3.08% and 4.81%, respectively, for Institutional Service shares.

As the fourth quarter of 1996 progressed, talk of a
Fed-induced rate hike circulated but never transpired, in part
due to economic data that supported a low inflation environment. Although the
Federal Reserve Board has neither raised nor lowered interest rates in well over
a year, Fed chairman Alan Greenspan has twice shaken the financial markets with
his comments. In February, in testimony before Congress, Greenspan suggested a
possible interest rate hike as "pre-emptive strike" against inflation. As a
result of his comments, which led to the expectation that the Fed will raise
rates, the market is positioned for a Fed rate hike. The seasonal decline in
interest rates, which usually occurs in December as a result of year-end
redemptions, never materialized. Likewise, the "January effect" of large cash
inflows such as coupon payments and maturities, which cause rates to decline,
did not occur.

At the fiscal year-end, the Fund's weighted average maturity was 32 days and
is positioned to take advantage of any back up in rates due to Fed intervention.
As of February 28, the Fund's net assets were comprised of 69.0% variable rate
demand notes, 29.4% adjustable rate bonds and 1.6% short-term municipal bonds
and cash. Total net assets in the Fund currently stand at $220 million.

Thank you for your investment in Evergreen Institutional Tax-Exempt Money
Market Fund.

** THE FUND MAY INCUR 12B-1 EXPENSES UP TO AN ANNUAL MAXIMUM OF .25 OF 1% OF
ITS AVERAGE DAILY NET ASSETS OF ITS INSTITUTIONAL SERVICE SHARES.

*** TAX-EQUIVALENT YIELD ASSUMES A 36% FEDERAL TAX BRACKET. TAX-EQUIVALENT YIELD
WOULD BE LOWER FOR INVESTORS IN LOWER TAX BRACKETS AND HIGHER FOR INVESTORS
IN HIGHER TAX BRACKETS.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1 PER SHARE. YIELDS FLUCTUATE. THE
FUND'S INCOME IS SUBJECT TO STATE AND LOCAL TAXES. SOME INCOME MAY BE
SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX FOR CERTAIN INVESTORS.

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
STATEMENT OF INVESTMENTS
FEBRUARY 28, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
MUNICIPAL SECURITIES -- 98.4%
ARIZONA -- 5.9%
$ 5,000,000 Apache County IDA
3.25%, 12/1/20 -- VRDN
(LOC: Barclays PLC)............... $ 5,000,000
2,000,000 Gila County IDA,
3.35% 11/01/25 -- ARB
(LOC: Bank One ).................. 2,000,000
2,600,000 Health Facility Authority
Hospital,
3.35%, 10/1/26 -- VRDN............ 2,600,000
3,460,000 IBM Tax Exempt Asset Backed
Certificates,
3.55%, 3/1/98 -- VRDN............. 3,460,000
13,060,000
CALIFORNIA -- 4.5%
5,000,000 California State Revenue,
3.25%, 6/30/97 -- VRDN............ 5,000,000
5,000,000 California State Revenue,
4.50%, 6/30/97 -- VRDN............ 5,015,246
10,015,246
COLORADO -- 1.4%
3,100,000 University of Colorado
3.30% 6/1/20 -- VRDN.............. 3,100,000
FLORIDA -- 5.7%
2,000,000 Escambia County Housing
Authority,
3.50%, 10/1/16 -- VRDN............ 2,000,000
3,000,000 Orange County Eagle Trust,
3.40%, 12/1/05 -- ARB............. 3,000,000
5,000,000 Pasco County School Board,
3.30%, 8/1/26 -- VRDN (AMBAC)..... 5,000,000
2,600,000 Volusia County School District GO,
5.60%, 8/1/97 -- ARB (FGIC)....... 2,621,827
12,621,827
GEORGIA -- 8.0%
5,700,000 Burke County Development
Authority PCRB,
3.25%, 1/1/16 -- VRDN
(FGIC)............................ 5,700,000
6,100,000 Eagle Trust Sewer,
3.60%, 3/1/97 -- ARB.............. 6,100,000
5,900,000 Municipal Gas Authority,
3.45%, 4/10/97 -- ARB
(LOC: Wachovia Bank).............. 5,900,000
17,700,000

<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>

ILLINOIS -- 12.5%
$ 4,200,000 Educational Facility Authority,
3.35%, 5/1/19 -- VRDN............. $ 4,200,000
7,440,000 Illinois GO,
3.45%, 2/1/08 -- VRDN............. 7,440,000
5,000,000 Toll Highway Authority
3.50%, 1/1/10 -- VRDN (MBIA)
(LOC: Societe Generale)........... 5,000,000
5,000,000 Chicago MHRB
3.30%, 11/1/18 -- VRDN
(LOC: Swiss Bank)................. 5,000,000
5,800,000 Joliet Regional Port District,
3.45%, 10/1/24 -- VRDN............ 5,800,000
27,440,000
INDIANA -- 6.8%
6,000,000 Petersberg PCRB,
3.30%, 1/1/23 -- ARB (AMBAC)...... 6,000,000
3,995,000 Office Building Revenue,
4.00%, 7/1/97 -- ARB (AMBAC)...... 4,000,213
5,000,000 Sullivan PCRB
3.45%, 4/14/97 -- VRDN............ 5,000,000
15,000,213
LOUISIANA -- 3.4%
5,000,000 Ascension PCRB,
3.50%, 12/1/05 -- VRDN
(LOC: Bank of Tokyo).............. 5,000,000
2,500,000 Plaquemines District Marine,
3.45%, 4/8/97 -- ARB............. 2,500,000
7,500,000
MASSACHUSETTS -- 1.0%
2,110,000 Water Resources Authority
General Revenue,
3.35%, 11/1/26 -- VRDN (FGIC)..... 2,110,000
MICHIGAN -- 2.9%
2,000,000 Michigan Strategic,
3.45%, 9/1/30 -- VRDN............. 2,000,000
2,000,000 University of Michigan,
3.50%, 12/1/27 -- VRDN............ 2,000,000
2,300,000 Kent Hospital Finance Authority,
3.25%, 1/15/20 -- VRDN
(LOC: Rabobank Nederlands)........ 2,300,000
6,300,000
NORTH CAROLINA -- 4.4%
7,000,000 Charlotte Mecklenberg Hospital,
3.25%, 1/15/26 -- VRDN............ 7,000,000
</TABLE>

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND

(Photo of coins) STATEMENT OF INVESTMENTS -- (CONTINUED)
FEBRUARY 28, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE

MUNICIPAL SECURITIES -- CONTINUED

NORTH CAROLINA -- CONTINUED

<C> <S> <C>
$ 2,800,000 Winston Salem Water & Sewer,
3.25%, 6/1/14 -- ARB.............. $ 2,800,000
9,800,000
NEW JERSEY -- 3.4%
7,500,000 Eagle Partnership,
3.40%, 11/1/14 -- VRDN............ 7,500,000
NEW MEXICO -- 2.8%
4,000,000 New Mexico Highway Commission,
3.35%, 6/15/11 -- ARB............. 4,000,000
2,200,000 University of New Mexico,
3.25%, 6/1/06 -- VRDN (AMBAC)..... 2,200,000
6,200,000
NEVADA -- 2.3%
5,000,000 Clark County Apartment Revenue,
3.25%, 7/1/12 -- VRDN (MBIA)...... 5,000,000
OHIO -- 3.6%
5,000,000 Columbus Sewer Revenue,
3.20%, 6/1/11 -- VRDN
(LOC: Chase Manhattan Bank)....... 5,000,000
3,000,000 Environment Improvement Revenue,
3.35%, 12/1/26 -- VRDN, AMT....... 3,000,000
8,000,000
OREGON -- 2.0%
4,500,000 Housing & Community Services,
3.65%, 12/11/97 -- ARB............ 4,500,000
PENNSYLVANIA -- 3.0%
3,000,000 Schuylkill County EDA,
3.50%, 12/1/11 -- VRDN............ 3,000,000
(LOC: Sumitomo Bank)
3,200,000 Schuylkill County EDA,
3.55%, 12/1/11 -- ARB
(LOC: Sumitomo)................... 3,200,000
500,000 Pennsylvania Higher Education
Authority,
3.45%, 11/1/30 -- VRDN............ 500,000
6,700,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>

PUERTO RICO -- 5.5%
$ 2,000,000 Puerto Rico Government
Development Bank,
3.30%, 3/11/97 -- ARB............. $ 2,000,000
10,000,000 Puerto Rico GO,
4.00%, 7/30/97 -- ARB............. 10,023,153
12,023,153
SOUTH CAROLINA -- 3.3%
2,200,000 Educational Facility Authority,
3.25%, 10/1/26 -- VRDN (MBIA)..... 2,200,000
5,000,000 Public Service Authority,
3.40%, 4/10/97 -- VRDN............ 5,000,000
7,200,000
TENNESSEE -- 1.3%
2,800,000 Tennessee GO,
3.20%, 7/2/01 -- VRDN............. 2,800,000
TEXAS -- 10.9%
7,600,000 Calhoun County IDR,
3.40%, 11/1/15 -- VRDN
(LOC: Bank of America)............ 7,600,000
5,000,000 Red River Authority PCRB,
3.30%, 7/1/11 -- VRDN............. 5,000,000
5,200,000 Guadalupe Blanco River Authority,
3.50%, 11/01/15 -- VRDN
(LOC: ABN Amro Bank).............. 5,200,000
6,200,000 Texas Transportation
4.75%, 8/29/97 -- ARB............. 6,236,529
24,036,529
VIRGINIA -- 1.5%
3,400,000 Lynchburg IDA,
3.35%, 12/1/25 -- VRDN
(AMBAC)........................... 3,400,000
WASHINGTON -- 2.3%
5,000,000 Pierce County EDA,
3.30% 1/1/27 -- VRDN
(LOC: ABN Amro Bank).............. 5,000,000
TOTAL MUNICIPAL SECURITIES
(COST $217,006,968).......... 217,006,968
</TABLE>

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
STATEMENT OF INVESTMENTS -- (CONTINUED)
FEBRUARY 28, 1997

<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.3%
(COST $2,843,000)
2,843,000 Federated Municipal
Obligation Fund............ $ 2,843,000
TOTAL INVESTMENTS --
(COST $219,849,968) (A).. 99.7% 219,849,968
OTHER ASSETS AND
LIABILITIES (NET)........ 0.3% 568,946
NET ASSETS................. 100.0% $220,418,914
</TABLE>

(a) Cost for federal income tax and financial reporting purposes are the same.

AMBAC -- Insured by AMBAC Indemnity Corporation
AMT -- Income subject to Alternative Minimum Tax
ARB -- Adjustable Rate Bond
EDA -- Economic Development Authority
FGIC -- Insured by Financial Guaranty Insurance Corporation
GO -- General Obligation
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue Bond
LOC -- Letter of Credit
MBIA -- Insured by Municipal Bond Insurance Association
MHRB -- Multifamily Housing Revenue Bond
PCRB -- Pollution Control Revenue Bond
VRDN -- Variable Rate Demand Note

Adjustable Rate Bonds are putable back to the issuer or other parties not
affiliated with the issuer at par on the interest reset dates. Interest rates
are determined and set by the issuer quarterly, semi-annually or annually
depending upon the terms of the security. Interest rates presented for these
securities are those in effect at February 28, 1997. These securities represent
29.4% of total net assets at February 28, 1997.

Variable Rate Demand Notes are payable on demand on no more than seven
calendar day's notice given by the Fund to the issuer or other parties not
affiliated with the issuer. Interest rates are determined and reset by the
issuer daily, weekly, or monthly depending upon the terms of the security.
Interest rates presented for these securities are those in effect at February
28, 1997. These securities represent 69.0% of total net assets at February 28,
1997.

Certain obligations held in the portfolio have credit enhancements or
liquidity features that may, under certain circumstances provide for repayment
of principal and interest on the obligation upon demand date, interest rate
reset date or final maturity. These enhancements include: letters of credit;
liquidity guarantees; standby bond purchase agreements; and third party
insurance (i.e. AMBAC, FGIC and MBIA). Adjustable rate bonds and variable rate
demand notes held in the portfolio may be considered derivative securities
within the standards imposed by the Securities and Exchange Commission under
Rule 2a-7 which were designed to minimize both credit and market risk.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1997

<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at value (amortized cost $219,849,968)............................................................ $219,849,968
Cash.......................................................................................................... 6,775
Interest receivable........................................................................................... 1,086,682
Unamortized organization expenses............................................................................. 12,942
Other assets.................................................................................................. 25,334
Total assets............................................................................................ 220,981,701
LIABILITIES:
Dividends payable............................................................................................. 515,092
Distribution fee payable...................................................................................... 7,353
Administration fee payable.................................................................................... 6,510
Accrued expenses.............................................................................................. 33,832
Total liabilities....................................................................................... 562,787
NET ASSETS....................................................................................................... $220,418,914
NET ASSETS CONSIST OF:
Paid-in capital............................................................................................... $220,430,334
Accumulated realized loss on investments...................................................................... (11,420)
Net assets.............................................................................................. $220,418,914
CALCULATION OF NET ASSET VALUE PER SHARE:
Institutional Service Shares ($14,295,391 14,296,743 shares
of beneficial interest outstanding)........................................................................ $ 1.00
Institutional Shares ($206,123,523 206,133,591 shares of
of beneficial interest outstanding)........................................................................ $ 1.00
</TABLE>

See accompanying notes to financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED FEBRUARY 28, 1997*

<TABLE>
<S> <C> <C>
INCOME:
Interest income.................................................................................... $1,777,302
EXPENSES:
Advisory fee (Note 3).............................................................................. $ 77,430
Administration fee (Note 3)........................................................................ 21,604
Distribution fee -- Institutional Service Shares (Note 3).......................................... 11,834
Registration....................................................................................... 78,416
Professional fees.................................................................................. 27,500
Custodian fees..................................................................................... 17,313
Trustees' fees and expenses........................................................................ 1,050
Amortization of organization expenses (Note 2)..................................................... 758
Other.............................................................................................. 9,819
Total expenses before waivers and reimbursements...................................................... 245,724
Less: Expenses waived and reimbursed by Advisor....................................................... (205,656)
Net expenses................................................................................. 40,068
Net investment income................................................................................. 1,737,234
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions.......................................................... (11,420)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................................. $1,725,814
</TABLE>

* Fund commenced operations on November 20, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED FEBRUARY 28, 1997*

<TABLE>
<S> <C>
OPERATIONS:
Net investment income......................................................................................... $ 1,737,234
Net realized loss on investment transactions.................................................................. (11,420)
Net increase in net assets resulting from operations.......................................................... 1,725,814
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Institutional Service Shares............................................................................... (150,109)
Institutional Shares....................................................................................... (1,587,125)
Total distributions to shareholders........................................................................... (1,737,234)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold..................................................................................... 462,534,674
Proceeds from reinvestment of distributions................................................................... 2,873
Payments for shares redeemed.................................................................................. (242,107,223)
Net increase resulting from Fund share transactions........................................................ 220,430,324
Total increase in net assets..................................................................................... 220,418,904
NET ASSETS:
Beginning of period........................................................................................... 10
End of period................................................................................................. $220,418,914
</TABLE>

* Fund commenced operations on November 20, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TAX EXEMPT
MONEY MARKET FUND
(Photo of coins)
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE PERIOD

<TABLE>
<CAPTION>
PERIOD ENDED
FEBRUARY 28, 1997
INSTITUTIONAL INSTITUTIONAL
SERVICE SHARES* SHARES**
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period......................................................... $1.000 $1.000
Net investment income........................................................................ 0.008 0.010
Less distributions to shareholders from net investment income................................ (0.008) (0.010)
Net asset value, end of period............................................................... $1.000 $1.000
Total Return................................................................................. 0.85% 0.96%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)................................................. $14,295 $206,124
Ratios to average net assets (annualized):
Expenses, net.......................................................................... 0.30% 0.05%
Expenses before waivers and reimbursements............................................. 0.70% 0.45%
Net investment income.................................................................. 3.19% 3.50%
</TABLE>

* Class commenced operations on November 25, 1996.

** Class commenced operations on November 20, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
A REPORT FROM YOUR
PORTFOLIO MANAGER

KELLIE ALLEN

We are pleased to present the first Annual Report for
Evergreen Institutional Treasury Money Market Fund. The total
returns for the periods since inceptions through fiscal year-end
on February 28, 1997, for the Fund's Institutional (no-load)
shares and Institutional Service shares, is 1.49% and 1.33%,
respectively*. The seven-day current and effective yields as of
February 28, were 5.24% and 5.38%, respectively, for
Institutional shares, and 4.99% and 5.12%, respectively, for
Institutional Service shares.
(Photo of
The past six months have proven to be a roller coaster ride Kellie Allen
for fixed income investors. The bond market rallied Goes Here)
throughout the second half of calendar 1996 as interest rates declined, but
was stifled as rates jumped in December, then steadily increased throughout
the first two months of 1997. The yield on the benchmark thirty-year Treasury
bond began this period at 7.1%, declined, then rebounded, and settled at 6.8%
on February 28. Short-term rates also fluctuated rather dramatically during
the six-month period. The yield on the three-month Treasury bill began the
fiscal year at 5.3%, declined steadily through mid-December, then climbed
sharply to finish at 5.2% on February 28.

In the final week of February, Federal Reserve Chairman, Alan Greenspan,
rocked the financial markets in an appearance before Congress. Mr. Greenspan,
while acknowledging that inflation remains in check, suggested that the best
course of action may be to raise rates as a preventative measure to curb
inflation before it actually appears. The Federal Reserve Board Chairman has
neither raised nor lowered interest rates in well over a year. As of February
28, the yield on two-year treasury notes stood at 6.09%, 84 basis points above
the Fed Funds rate.

The Fund invests exclusively in short-term U.S. Government obligations which
are fully guaranteed as to principal and interest by the U.S. Government. Within
the Fund, we continue to maintain a maturity at the longer end of our normal
range in an attempt to lock in higher, more attractive rates. The Fund also
utilizes reverse repurchase agreements to help enhance the portfolio's return.
This process, relatively risk-free, provides the Fund an opportunity gain a
couple of basis points as reward, helping it to outperform similar funds.

Thank you for your investment in Evergreen Institutional Treasury Money
Market Fund.

<PAGE>
EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
STATEMENT OF INVESTMENTS
FEBRUARY 28, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 27.9%
U.S. TREASURY BILLS -- 5.7%
$50,000,000 4/17/97........................... $ 49,679,375
U.S. TREASURY NOTES -- 22.2%
50,000,000 3/31/97+.......................... 50,059,126
50,000,000 6/30/97+.......................... 50,178,137
25,000,000 12/31/97.......................... 24,913,691
35,000,000 9/30/97........................... 35,075,109
25,000,000 12/31/97.......................... 24,960,291
10,000,000 3/31/98........................... 10,051,303
195,237,657
TOTAL U.S. TREASURY OBLIGATIONS
(COST $244,917,032).......... 244,917,032
REPURCHASE AGREEMENTS* -- 88.4%
35,000,000 Daiwa Securities Co. Ltd.,
5.36% dated 2/28/97, due
3/3/97(1)......................... 35,000,000
40,000,000 Dean Witter Reynolds, Inc.
5.35% dated 2/28/97, due
3/3/97 (2)........................ 40,000,000
20,000,000 Donaldson, Lufkin, & Jenrette
Securities Corp.,
5.35%, dated 2/28/97, due 3/3/97
(3)............................... 20,000,000
50,000,000 Dresdner Bank AG,
5.35% dated 2/28/97, due
3/3/97 (4)........................ 50,000,000
51,187,500 Dresdner Bank AG,
5.25% dated 2/28/97, due 3/31/97
(5) (b)**......................... 51,187,500
50,500,000 Dresdner Bank AG,
5.33% dated 2/28/97, due 6/30/97
(6) (b)**......................... 50,500,000
40,000,000 First Boston Corp.,
5.35% dated 2/28/97, due
3/3/97 (7)........................ 40,000,000
40,000,000 Goldman, Sachs Group L.P.,
5.35% dated 2/28/97, due
3/3/97 (8)........................ 40,000,000
40,000,000 HSBC Securities, Inc.,
5.35% 3/3/97 dated 2/28/97, due
3/3/97 (9)........................ 40,000,000
40,000,000 J.P. Morgan & Co., Inc.,
5.38% dated 2/28/97, due
3/3/97 (10)....................... 40,000,000
13,562,907 Lehman Brothers, Inc.,
5.37% dated 2/28/97, due
3/3/97 (11)....................... 13,562,907

<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
$40,000,000 Merrill Lynch & Co., Inc.,
5.35% dated 2/28/97, due
3/3/97 (12)....................... $ 40,000,000
40,000,000 Morgan Stanley Co.,
5.30% dated 2/28/97, due
3/3/97 (13)....................... 40,000,000
35,000,000 Nikko Securities Co.
International,
5.36% dated 2/28/97, due
3/3/97 (14)....................... 35,000,000
150,000,000 Smith Barney,
5.38% dated 2/28/97, due
3/3/97 (15)....................... 150,000,000
50,000,000 Smith Barney,
5.28% 3/6/97 dated 2/20/97, due
3/6/97 (15) (b)................... 50,000,000
40,000,000 Union Bank Switzerland,
5.37% dated 2/28/97, due
3/3/97 (16)....................... 40,000,000
TOTAL REPURCHASE AGREEMENTS
(COST $775,250,407).......... 775,250,407

<CAPTION>
SHARES
INVESTMENT COMPANIES -- 0.8%
(COST $6,758,697)
6,758,697 Fidelity U.S. Treasury Income
Portfolio....................... 6,758,697
TOTAL INVESTMENTS --
(COST $1,026,926,136)
(A)..................... 117.1 % 1,026,926,136
OTHER ASSETS AND
LIABILITIES (NET)....... (17.1 %) (149,785,264)
NET ASSETS................ 100.0 % $ 877,140,872
</TABLE>

(a) Cost for federal income tax and financial reporting purposes are the
same.
(b) Repurchase agreements are putable back to the issuer on no more than
seven calendar days notice given by the Fund.
** Represents investment of cash collateral received from securities on
loan.
+ Securities on loan (see Note 2).

* Collateralized by:

(1) $32,500,000 U.S. Treasury Notes, 5.13% to 6.00%, 4/30/98 to 10/15/99; value
including accrued interest -- $33,052,027 and $1,823,000 U.S. Treasury
Bonds, 11.25%, 2/15/15; value including accrued interest -- $2,648,595.

<PAGE>
EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
STATEMENT OF INVESTMENTS -- (CONTINUED)
FEBRUARY 28, 1997

(2) $40,560,000 U.S. Treasury Notes, 5.25% to 6.63%,
7/31/98 to 7/31/01, value including accrued interest --
$40,800,186.

(3) $27,869,000 U.S. Treasury Strips, 8/15/99 to 8/15/16;
value including accrued interest -- $12,114,156 and
$8,163,000 U.S. Treasury Notes 6.25%, 6/30/98; value
including accrued interest -- $8,286,570.

(4) $52,169,000 U.S. Treasury Bills, 6/26/97 to 8/21/97; value
including accrued interest -- $51,003,488.

(5) $51,260,000 U.S. Treasury Notes, 6.13%, 5/15/98; value
including accrued interest -- $52,362,904.

(6) $51,135,000 U.S. Treasury Notes, 6.25%, 7/31/98; value
including accrued interest -- $51,637,875.

(7) $40,739,000 U.S. Treasury Notes, 5.63% to 6.00%,
8/31/97 to 12/31/97; value including accrued interest --
$40,899,345.

(8) $41,725,000 U.S. Treasury Bonds, 6.63%, 2/15/97; value
including accrued interest -- $40,800,046.

(9) $41,100,000 Government National Mortgage Association
Notes, 5.50% to 6.00%, 9/20/26; value including accrued
interest -- $40,802,539.

(10) $40,145,000 U.S. Treasury Notes, 8.50%, 10/15/06; value
including accrued interest -- $40,800,035.

(11) $55,341,000 U.S. Treasury Notes, 7.25%-9.25%, 1/15/16
to 5/15/18; value including accrued interest --
$13,835,233.

(12) $28,300,000 U.S. Treasury Bonds, 12.00% to 13.25%,
8/15/13 to 8/15/14; value including accrued interest --
$40,806,489.

(13) $40,446,000 U.S. Treasury Strips 10/31/97 to 11/15/05;
value including accrued interest -- $28,366,390 and
$12,425,000 U.S. Treasury Notes, 5.75%, 10/31/97; value
including accrued interest -- $12,676,715.

(14) $34,428,000 U.S. Treasury Notes, 5.87% to 8.88%,
5/15/97 to 5/15/00; value including accrued interest --
$35,837,751.

(15) These two repurchase agreements are collateralized by
$213,475,201 Government National Mortgage Association
Notes, 5.50% to 8.50%, 4/16/10 to 12/15/28; value
including accrued interest -- $195,802,393 and
$8,158,000 U.S. Treasury Notes, 8.50%, 8/15/97; value
including accrued interest -- $8,200,700.

(16) $51,646,000 U.S. Treasury Notes, 6.25% to 8.88%,
5/15/97 to 7/15/03; value including accrued interest --
$40,800,002.

See accompanying notes to combined financial statements.

21
<PAGE>

EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
STATEMENT OF ASSETS AND LIABILITIES

FEBRUARY 28, 1997

<TABLE>
<S> <C>
ASSETS:
Investment securities at value (amortized cost $251,675,729)................................................ $ 251,675,729
Repurchase agreements (amortized cost $775,250,407)......................................................... 775,250,407
Total investments........................................................................................... 1,026,926,136
Interest receivable......................................................................................... 4,035,258
Unamortized organization expenses........................................................................... 12,942
Other assets................................................................................................ 289,177
Total assets.......................................................................................... 1,031,263,513
LIABILITIES:
Payable for securities on loan.............................................................................. 102,083,270
Payable for investments purchased........................................................................... 49,679,375
Dividends payable........................................................................................... 1,902,750
Distribution fee payable.................................................................................... 130,135
Administration fee payable.................................................................................. 21,761
Accrued expenses............................................................................................ 305,350
Total liabilities..................................................................................... 154,122,641
NET ASSETS..................................................................................................... $ 877,140,872
NET ASSETS CONSIST OF:
Paid-in capital............................................................................................. $ 877,140,872
Net Assets............................................................................................ $ 877,140,872
CALCULATION OF NET ASSET VALUE PER SHARE:
Institutional Service Shares ($509,369,468) (509,369,468 shares of beneficial interest outstanding)........... $1.00
Institutional shares ($367,771,404) (367,771,404 shares of beneficial interest outstanding)................... $1.00
</TABLE>

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED FEBRUARY 28, 1997*

<TABLE>
<S> <C> <C>
INCOME:
Interest income................................................................................... $7,047,008
EXPENSES:
Advisory fee (Note 3)............................................................................. $ 199,136
Distribution fee -- Institutional Service Shares (Note 3)......................................... 165,813
Administration fee (Note 3)....................................................................... 54,904
Registration...................................................................................... 277,269
Custodian fees.................................................................................... 29,179
Professional fees................................................................................. 27,500
Trustees' fees and expenses....................................................................... 1,050
Amortization of organization expenses (Note 2).................................................... 758
Other............................................................................................. 9,820
Total expenses before waivers and reimbursements.................................................. 765,429
Less: Expenses waived and reimbursed by Advisor................................................... (520,172)
Net expenses................................................................................ 245,257
Net investment income................................................................................ 6,801,751
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................................. $6,801,751
</TABLE>

* Fund commenced operations on November 20, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED FEBRUARY 28, 1997*

<TABLE>
<S> <C>
OPERATIONS:
Net investment income....................................................................................... $ 6,801,751
Net increase in net assets resulting from operations........................................................... 6,801,751
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Institutional Service Shares............................................................................. (3,308,507)
Institutional Shares..................................................................................... (3,493,244)
Total distributions to shareholders......................................................................... (6,801,751)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold................................................................................... 1,671,272,107
Proceeds from reinvestment of distributions................................................................. 809,212
Payments for shares redeemed................................................................................ (794,940,457)
Net increase resulting from Fund share transactions...................................................... 877,140,862
Total increase in net assets................................................................................... 877,140,862
NET ASSETS:
Beginning of period......................................................................................... 10
End of period............................................................................................... $ 877,140,872
</TABLE>

* Fund commenced operations on November 20, 1996.

See accompanying notes to combined financial statements.

<PAGE>
EVERGREEN INSTITUTIONAL TREASURY
MONEY MARKET FUND
(Photo of eagle)
FINANCIAL HIGHLIGHTS
FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE PERIOD

<TABLE>
<CAPTION>
PERIOD ENDED
FEBRUARY 28, 1997
INSTITUTIONAL INSTITUTIONAL
SERVICE SHARES* SHARES**
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period...................................................... $1.000 $1.000
Net investment income..................................................................... 0.013 0.015
Less distributions to shareholders from net investment income............................. (0.013) (0.015)
Net asset value, end of period............................................................ $1.000 $1.000
Total Return.............................................................................. 1.33% 1.49%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).............................................. $509,369 $ 367,771
Ratios to average net assets (annualized):
Expenses, net....................................................................... 0.31% 0.06%
Expenses before waivers and reimbursements.......................................... 0.70% 0.45%
Net investment income............................................................... 4.98% 5.24%
</TABLE>

* Class commenced operations on November 27, 1996.

** Class commenced operations on November 20, 1996.

See accompanying notes to combined financial statements.

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS

NOTE 1 -- ORGANIZATION AND NATURE OF OPERATIONS

The Evergreen Institutional Money Market Funds (the "Funds") are series of
open-end, diversified, management investment companies registered under the
Investment Company Act of 1940, as amended (the "Act"). The Evergreen
Institutional Money Market Funds consist of Evergreen Institutional Money Market
Fund ("Money Market"), Evergreen Institutional Tax Exempt Money Market Fund
("Tax Exempt") and Evergreen Institutional Treasury Money Market Fund
("Treasury"), known collectively as the Funds. Money Market and Treasury are
separate investment series of Evergreen Money Market Trust. Tax Exempt is a
separate investment series of The Evergreen Municipal Trust.

The investment objective of Money Market is to achieve as high a level of
current income as is consistent with preserving capital and providing liquidity.
The investment objective of Tax Exempt is to achieve as high a level of current
income exempt from Federal income tax as is consistent with preserving capital
and providing liquidity. The investment objective of Treasury is to maintain
stability of principal while earning current income.

Prior to November 19, 1996 for Money Market and November 20, 1996 for Tax
Exempt and Treasury, the Funds had no operations other than the sale of 10
shares of beneficial interest to Evergreen Keystone Distributor, Inc. ("EKD")
(formerly, Evergreen Funds Distributor, Inc.), the distributor for the Evergreen
group of mutual funds.

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. These policies are
in conformity with generally accepted accounting principles.

SECURITY VALUATIONS -- Portfolio securities are valued at amortized cost
which approximates market value. The amortized cost method involves valuing a
security at cost on the date of purchase and thereafter assuming a straight-line
amortization of any discount or premium to maturity.

SECURITY TRANSACTIONS -- Security transactions are accounted for on the
date purchased or sold. Net realized gains or losses are determined on the
identified cost basis.

INVESTMENT INCOME AND EXPENSES -- Interest income and expenses are accrued
daily. Premiums and discounts paid on securities are amortized or accreted into
interest income.

REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the Federal Reserve Bank and are designated as being held
on each Fund's behalf by its custodian under a book-entry system. Each Fund
monitors the adequacy of the collateral on a daily basis, and can require the
seller to provide additional collateral in the event the market value of the
securities pledged falls below the carrying value of the repurchase agreement,
including accrued interest. Each Fund will only enter into repurchase agreements
with banks and other financial institutions which are deemed by the investment
adviser to be creditworthy pursuant to guidelines established by each Fund's
Trustees.

LENDING SECURITIES -- In order to generate income and to offset expenses,
the Funds may lend portfolio securities to brokers, dealers and other financial
organizations. The Funds' investment adviser will monitor the creditworthiness
of such borrowers. Loans of securities may not exceed 30% of a Fund's total
assets and will be collateralized by cash, letters of credit or United States
Government securities that are maintained at all times in an amount equal to at
least 100% of the current market value of the loaned securities, including
accrued interest. While such securities are on loan, the borrower will pay a
Fund any income accruing thereon, and the Fund many invest the collateral in
portfolio securities, thereby increasing its return. A Fund will have the right
to call any such loan and obtain the securities loaned at any time on five days'
notice. Any gain or loss in the market price of the loaned securities which
occurs during the term of the loan would affect a Fund and its investors. A Fund
may pay reasonable fees in connection with such loans.

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES -- continued
At February 28, 1997, Treasury had $100,237,263 in United States Treasury
Notes on loan and held $102,105,842 (including accrued interest) in repurchase
agreements as collateral.

WHEN ISSUED AND DELAYED DELIVERY TRANSACTIONS -- Tax Exempt and Treasury
may purchase securities on a "when-issued" basis (i.e., for delivery beyond the
normal settlement date at a stated price and yield). The Funds record
when-issued or delayed delivery transactions on the trade date and maintain
security positions such that sufficient liquid assets will be available to make
payment for the securities purchased. Securities purchased on a when-issued or
delayed delivery basis begin earning interest on the settlement date.

DIVIDENDS TO SHAREHOLDERS -- Dividends from net investment income are
declared daily and paid monthly. Dividends from net realized capital gains on
investments, if any, will be distributed at least annually. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from the amounts available for distribution under
generally accepted accounting principles. To the extent these differences are
permanent in nature, such amounts are reclassified within the components of net
assets.

INCOME TAXES -- It is each Fund's policy to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable and other net income to its
shareholders. Accordingly, no provisions for Federal income or excise taxes are
necessary. To the extent that realized capital gains can be offset by capital
loss carryforwards, it is each Fund's policy not to distribute such gains.

At February 28, 1997, Money Market and Tax Exempt had capital loss
carryforwards of $1,850 and $11,420, respectively, expiring in the year 2005.

ALLOCATION OF EXPENSES -- Expenses specifically identifiable to a class of
shares are charged to that class. Expenses common to a Trust as a whole are
allocated to the funds in that Trust. Net investment income (other than class
specific expenses) and realized and unrealized gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
of each class.

ORGANIZATION COSTS -- All costs incurred by the Funds in connection with
the organization and initial public offering of shares of the Funds, principally
professional fees and printing costs, have been deferred. Upon commencement of
investment operations of each Fund, the deferred organization expenses are being
amortized on a straight-line basis over a period of five years.

USE OF ESTIMATES -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures.
Actual results could differ from those estimates.

NOTE 3 -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

INVESTMENT ADVISORY AGREEMENT -- The Capital Management Group of First
Union National Bank of North Carolina, ("CMG") serves as the Funds' investment
adviser. First Union National Bank of North Carolina ("First Union") is a
subsidiary of First Union Corporation. CMG is entitled to receive from each Fund
an annual fee equal to 0.15 of 1% of average daily net assets pursuant to each
Fund's investment advisory agreement. For the period ended February 28, 1997,
CMG voluntarily waived fees of $337,302, $77,430 and $199,136 for Money Market,
Tax Exempt and Treasury, respectively. CMG has voluntarily agreed to reimburse
each Fund to the extent that any of these Funds' aggregate operating expenses
(including the investment advisory fee and amortization of organization
expenses, but excluding interest, taxes, brokerage commissions, and
extraordinary expenses, and for such Funds' Institutional Service Shares Rule
12b-1 distribution fees and shareholder servicing fees payable) exceed 0.20 of
1% of their average net assets for any fiscal year for Institutional Shares and
0.45 of 1% for

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS

NOTE 3 -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES -- continued
Institutional Service Shares. For the period ended February 28, 1997, CMG
reimbursed expenses of $478,050, $128,226 and $321,036 for Money Market, Tax
Exempt and Treasury, respectively. CMG can modify or terminate these voluntary
waivers and reimbursements at any time.

ADMINISTRATION AGREEMENT -- Evergreen Asset Management Corp. ("Evergreen
Asset"), a wholly owned subsidiary of First Union, served as administrator for
each Fund. Furman Selz LLC ("Furman Selz") was each Fund's sub-administrator
through December 31, 1996. Effective January 1, 1997, The BISYS Group Inc.
("BISYS") acquired Furman Selz' mutual fund unit and accordingly, BISYS became
sub-administrator. As sub-administrator, Furman Selz/BISYS provided the officers
of the Funds. The administrator and sub-administrator to the Funds are each
entitled an annual fee based on the average daily net assets of the Funds
administered by Evergreen Asset or Evergreen Keystone Investment Services
("EKIS"), a subsidiary of First Union, for which First Union or its investment
advisory subsidiaries is also the investment adviser. These fees are calculated
at the following annual rates:

<TABLE>
<CAPTION>
ADMINISTRATION FEE AVERAGE DAILY NET ASSETS
<S> <C>
0.050% on the first $7 billion
0.035% on the next $3 billion
0.030% on the next $5 billion
0.020% on the next $10 billion
0.015% on the next $5 billion
in excess of $30
0.010% billion
</TABLE>

<TABLE>
<CAPTION>
SUB-ADMINISTRATION FEE AVERAGE DAILY NET ASSETS
<S> <C>
0.0100% on the first $7 billion
0.0075% on the next $3 billion
0.0050% on the next $15 billion
in excess of $25
0.0040% billion
</TABLE>

Effective March 11, 1997, EKIS began providing the administrative services
to the funds that were formerly provided by Evergreen Asset. The administrative
fees are unchanged from those charged by Evergreen Asset.

At February 28, 1997, assets for which Evergreen Asset or EKIS was the
administrator for which First Union and its investment advisory subsidiaries was
investment adviser totaled approximately $29 billion.

PLANS OF DISTRIBUTION -- The Funds have adopted for their Institutional
Service Shares Distribution Plans (the "Plans") pursuant to Rule 12b-1 under the
Act. Under the terms of the Plans, the Funds incur distribution-related and
shareholder servicing expenses which may not exceed 0.25 of 1% of the average
daily net asset value of each Fund's outstanding Institutional Service Shares.
For the period ended February 28, 1997, Money Market, Tax Exempt and Treasury
paid EKD fees of $297,918, $11,834 and $165,813, respectively pursuant to the
Plans.

NOTE 4 -- SHARES OF BENEFICIAL INTEREST

The Funds have an unlimited number of $0.001 par value shares of beneficial
interest authorized. Each Fund has two classes of shares, Institutional Service
Shares and Institutional Shares. The classes have identical voting, dividend,
liquidation and other rights, except that Institutional Service Shares bear
distribution expenses (see Note 3) and have exclusive voting rights with respect
to their Plans.

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS

NOTE 4 -- SHARES OF BENEFICIAL INTEREST -- continued
Transactions in shares of beneficial interest (valued at $1.00 per share)
were as follows:

<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28, 1997
MONEY MARKET** TAX EXEMPT* TREASURY*
<S> <C> <C> <C>
Institutional Service Shares:
Shares sold............................................................. 1,727,721,201 106,200,440 986,532,681
Shares issued from reinvestment of distributions........................ 3,192,090 2,873 779,808
Shares redeemed......................................................... (863,618,376 ) (91,906,580) (477,943,031)
Net increase............................................................ 867,294,915 14,296,733 509,369,458
Institutional Shares:
Shares sold............................................................. 850,921,063 356,334,234 684,739,426
Shares issued from reinvestment of distributions........................ 24,669 -- 29,404
Shares redeemed......................................................... (275,613,872 ) (150,200,643) (316,997,426)
Net increase............................................................ 575,331,860 206,133,591 367,771,404
Total net increase resulting from Fund share transactions............... 1,442,626,775 220,430,324 877,140,862
</TABLE>

* Funds commenced operations on November 20, 1996.

** Fund commenced operations on November 19, 1996.

NOTE 5 -- FINANCING AGREEMENT

A financing agreement exists with all of the Evergreen Funds and State
Street Bank and Trust Company, Societe Generale and ABN Amro Bank N.V.
(collectively, the "Banks") to be accessed by the Evergreen Funds for temporary
or emergency purposes only and is subject to each participating Fund's borrowing
restrictions. Under the agreement, the Banks provide an unsecured line of credit
facility, in the aggregate amount of $225 million ($112.5 million committed and
$112.5 million uncommitted), allocated evenly between the Banks. Borrowings
under this facility bear interest at .75% per annum above the Federal Funds
rate. A commitment fee of .10% per annum will be incurred on the unused portion
of the committed facility which would be allocated to all participating funds.
The Funds had no borrowings under the financing agreements during the period
ended February 28, 1997.

<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
EVERGREEN INSTITUTIONAL MONEY MARKET FUND,
EVERGREEN INSTITUTIONAL TAX EXEMPT MONEY MARKET FUND,
AND EVERGREEN INSTITUTIONAL TREASURY MONEY MARKET FUND

In our opinion, the accompanying Statements of Assets and Liabilities,
including the Statements 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
Institutional Money Market Fund, Evergreen Institutional Treasury Money Market
Fund (two of the portfolios constituting the Evergreen Money Market Trust), and
of Evergreen Institutional Tax Exempt Money Market Fund (one of the portfolios
constituting the Evergreen Municipal Trust) (collectively, the "Funds"), at
February 28, 1997, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the period from
commencement of operations, as indicated, through February 28, 1997, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit 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
audit, which included confirmation of securities at February 28, 1997 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provides
a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP

1177 Avenue of the Americas
New York, NY 10036
April 28, 1997

<PAGE>
(This Page Left Blank Intentionally)

<PAGE>
TRUSTEES AND OFFICERS

TRUSTEES:

Laurence B. Ashkin*

Foster Bam*

James S. Howell, Chairman

Robert J. Jeffries*+

Gerald M. McDonnell

Thomas L. McVerry

William W. Pettit

Russell A. Salton, III M.D.

Michael S. Scofield

OFFICERS:

John J. Pileggi
President and Treasurer

George O. Martinez
Secretary

Sheryl Hirschfeld
Assistant Secretary

Stephen W. St. Clair
Assistant Treasurer

*Not a Trustee for Evergreen Institutional
Treasury Money Market Fund
+ Trustee Emeritus

FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED)
100% of the dividends distributed by Evergreen Institutional Tax Exempt Money
Market Fund for the period ended February 28, 1997 are exempt from federal
income tax, other than alternative minimum tax.

<PAGE>

This brochure must be preceeded or accompanied by a prospectus of an Evergreen
fund contained herein. The prospectus contains more complete information,
including fees and expenses, and should be read carefully before investing
or sending money.

NOT May lose value
FDIC No bank Guarantee
INSURED

Evergreen Keystone Distributor, Inc.

Evergreen Keystone (SM) is a Service Mark of Evergreen Keystone Investment
Services, Inc. Copyright 1997.
540713
4/97