<PAGE>
Evergreen
Money Market
Funds
July 31, 1998
Semiannual Report
[ART APPEARS HERE]
[LOGO OF EVERGREEN FUNDS APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareholders ...................................................1
Evergreen Money Market Fund
Fund at a Glance ......................................................2
Evergreen Municipal Money Market
Fund
Fund at a Glance ......................................................3
Evergreen Pennsylvania Municipal
Money Market Fund
Fund at a Glance ......................................................4
Evergreen Treasury Money Market
Fund
Fund at a Glance ......................................................5
Financial Highlights
Evergreen Money Market Fund ...........................................6
Evergreen Municipal Money Market Fund .................................8
Evergreen Pennsylvania Municipal Money
Market Fund ........................................................9
Evergreen Treasury Money Market Fund .................................10
Schedule of Investments
Evergreen Money Market Fund ..........................................11
Evergreen Municipal Money Market Fund ................................15
Evergreen Pennsylvania Municipal Money
Market Fund .......................................................25
Evergreen Treasury Money Market Fund .................................28
Statements of Assets and Liabilities ....................................30
Statements of Operations ................................................31
Statements of Changes in Net Assets --
Six Months Ended July 31, 1998 .......................................32
Five Months Ended January 31, 1998 ...................................33
Year Ended August 31, 1997 ...........................................33
Combined Notes to Financial
Statements ..............................................................34
- --------------------------------------------------------------------------------
Evergreen Funds
- --------------------------------------------------------------------------------
Evergreen Funds is one of the nation's fastest growing investment companies with
approximately $50 billion in assets under management.
With over 70 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broader range of quality investment products and
services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This semiannual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees and expenses, and should be read carefully before
investing or sending money.
----------------------------------------------------------------
Mutual Funds: ARE NOT FDIC INSURED May lose value . Are not bank guaranteed
----------------------------------------------------------------
Evergreen Distributor, Inc.
Evergreen/SM/ is a Service Mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
----------------------
September 1998
[PICTURE OF WILLIAM M. ENNIS APPEARS HERE]
William M. Ennis
Managing Director
Dear Shareholders:
The following report covers the Evergreen Money Market Funds and the six-month
period ended July 31, 1998. The Evergreen Money Market Funds continue to provide
investors a relatively safe alternative to stock and bond funds.
Market Review
At the writing of this report -- after the six-month period ended July 31, 1998
- -- the markets have experienced increased volatility, mainly due to financial
and currency crises in the Asian and Russian economies. We encourage investors
to remain focused on their long-term goals, and to keep short-term volatility in
perspective.
Although no one can accurately predict either the timing or the degree, one
thing is certain: the stock market will continue to experience ups and downs. At
this time, we still believe the domestic economy is strong with low inflation,
low unemployment and moderate, yet sustainable growth. We are confident that the
opportunity remains to participate in the continued, dynamic growth of both U.S.
and international companies.
Cost Savings
In an effort to achieve efficiencies and cost savings, we have changed the way
we mail your funds' information. Wherever possible, we are trying to combine
your funds' required mailings so you only receive one per household, based on
the registration last name and exact address./1/ This reduces the mailing costs,
not to mention the amount of paper needed to print, which in turn benefits your
funds by reducing the overall expenses. If you prefer to receive separate copies
of reports and prospectuses for each registered holder in your household, please
notify us by calling the number on your statement and we will adjust our records
accordingly.
Evergreen Service
Evergreen remains committed to providing investment choices which match a range
of investment objectives, as well as clear and accurate information on all the
Evergreen Funds. We recommend you consult with your financial advisor to
evaluate your asset allocation and ensure you are on target with your investment
time horizon. If you have any questions or need additional information, please
contact one of our service representatives at 800.343.2898. We will be happy to
assist you.
Thank you for your continued investment with Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
Managing Director
Evergreen Funds
- ---------
/1/ If you purchased your shares through a financial representative, we may not
be able to consolidate your mailings by last name and address, because the
brokerage firm controls the mailings.
1
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of July 31, 1998
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Commercial Paper -- 45.8%
Corp. Notes/Bonds -- 33.7%
Certificates of Deposit -- 7.9%
Funding Agreement -- 7.1%
Taxable Municipals -- 3.0%
U.S. Government Agency
and other investments -- 2.5%
Portfolio
Management
--------------
[PICTURE OF KELLIE ALLEN APPEARS HERE]
Kellie Allen
Tenure: March 1991
[PICTURE OF BRYAN K. WHITE APPEARS HERE]
Bryan K. White
Tenure: December 1997
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
- --------------------------------------------------------------------------------
Class A Class B Class C Class Y
Inception Date 1/4/95 1/26/95 8/1/97 11/2/87
.................................................................................
Average Annual Returns
.................................................................................
1 year with sales charge n/a -0.69% 3.31% n/a
.................................................................................
1 year w/o sales charge 5.04% 4.31% 4.31% 5.36%
.................................................................................
5 years -- -- -- 4.92%
.................................................................................
10 years -- -- -- 5.77%
.................................................................................
Since Inception 3.66% 3.57% 3.31% 5.86%
.................................................................................
Maximum Sales Charge n/a 5.00% 1.00% n/a
CDSC CDSC
.................................................................................
7-day annualized yield 4.89% 4.19% 4.19% 5.19%
.................................................................................
30-day annualized yield 4.87% 4.17% 4.17% 5.17%
.................................................................................
6-month distributions $0.02 $0.02 $0.02 $0.03
.................................................................................
* Adjusted for maximum sales charge.
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class A Class B Class C Class Y
2/28/98 4.93% 4.23% 4.23% 5.23%
3/31/98 4.91% 4.21% 4.21% 5.21%
4/30/98 4.88% 4.18% 4.18% 5.18%
5/31/98 4.89% 4.19% 4.19% 5.19%
6/30/98 4.90% 4.20% 4.20% 5.20%
7/31/98 4.89% 4.19% 4.19% 5.19%
Total Net Assets: $5,436,115,718
Average Maturity: 61 days
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 NAV of $1.00 per share. Yields will fluctuate. Past performance is no
guarantee of future results.
2
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Municipal Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of July 31, 1998
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Variable Rate Demand Notes -- 77.3%
Put Bonds -- 16.3%
Commercial Paper -- 2.9%
Anticipation Notes -- 1.7%
Bonds -- 1.5%
Mutual Fund Shares -- 0.3%
Portfolio
Management
--------------
[PICTURE OF STEVEN C. SHACHAT APPEARS HERE]
Steven C. Shachat
Tenure: November 1988
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Class A Class Y
Inception Date 1/5/95 11/2/88
.................................................................................
Average Annual Returns
.................................................................................
1 year 3.20% 3.51
.................................................................................
5 years -- 3.30
.................................................................................
Since Inception 3.96% 4.07
.................................................................................
7-day annualized yield 3.06% 3.36
.................................................................................
30-day annualized yield 2.97% 3.27
.................................................................................
6-month distributions $0.02 $0.02
.................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class A Class Y
2/28/98 3.04% 3.34%
3/31/98 3.19% 3.48%
4/30/98 3.73% 4.04%
5/31/98 3.34% 3.64%
6/30/98 3.16% 3.46%
7/31/98 3.08% 3.36%
Total Net Assets: $1,364,854,308
Average Maturity: 23 days
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 NAV of $1.00 per share. Yields will fluctuate. Past performance is no
guarantee of future results.
3
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Pennsylvania Municipal Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of July 31, 1998
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Variable Rate Notes -- 72.8%
Revenue & General
Obligation Bonds -- 23.0%
Other -- 4.2%
Portfolio
Management
--------------
[PICTURE OF STEVEN C. SHACHAT APPEARS HERE]
Steven C. Shachat
Tenure: May 1998
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Class A Class Y
Inception Date 8/22/95 8/15/91
.................................................................................
Average Annual Returns
.................................................................................
1 year 3.12% 3.23%
.................................................................................
5 years -- 3.04%
.................................................................................
Since Inception 2.98% 3.01%
.................................................................................
7-day annualized yield 3.02% 3.12%
.................................................................................
30-day annualized yield 2.88% 2.98%
.................................................................................
6-month distributions $0.02 $0.02
.................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class A Class Y
2/28/98 2.86% 2.96%
3/31/98 3.17% 3.28%
4/30/98 3.57% 3.67%
5/31/98 3.17% 3.27%
6/30/98 3.07% 3.17%
7/31/98 3.02% 3.12%
Total Net Assets: $82,100,293
Average Maturity: 38 days
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 NAV of $1.00 per share. Yields will fluctuate. Past performance is no
guarantee of future results.
4
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Treasury Money Market Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of July 31, 1998
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of portfolio assets)
[PIE CHART APPEARS HERE]
Repurchase Agreements -- 79.6%
U.S. Treasury Note -- 20.2%
Mutual Fund Shares -- 0.2%
Portfolio
Management
--------------
[PICTURE OF KELLIE ALLEN APPEARS HERE]
Kellie Allen
Tenure: March 1991
[PICTURE OF BRYAN K. WHITE APPEARS HERE]
Bryan K. White
Tenure: December 1997
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS
- --------------------------------------------------------------------------------
Class A Class Y
Inception Date 3/6/91 3/6/91
.................................................................................
Average Annual Returns
.................................................................................
1 year 5.01% 5.33%
.................................................................................
5 years 4.57% 4.88%
.................................................................................
Since Inception 4.36% 4.66%
.................................................................................
7-day annualized yield 4.91% 5.22%
.................................................................................
30-day annualized yield 4.86% 5.16%
.................................................................................
6-month distributions $0.02 $0.03
.................................................................................
- --------------------------------------------------------------------------------
ANNUALIZED 7-DAY YIELD
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Class A Class Y
2/28/98 4.95% 5.25%
3/31/98 4.92% 5.22%
4/30/98 4.79% 5.09%
5/31/98 4.89% 5.20%
6/30/98 4.95% 5.25%
7/31/98 4.91% 5.22%
Total Net Assets: $4,138,358,119
Average Maturity: 39 days
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 NAV of $1.00 per share. Yields will fluctuate. Past performance is no
guarantee of future results.
5
<PAGE>
EVERGREEN
Money Market Fund
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months January 4, 1995
Ended Five Months Year Ended August 31, (Commencement of
July 31, 1998 Ended ---------------------- Class Operations) to
(Unaudited) January 31, 1998 (c) 1997 1996 August 31, 1995
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
------ ------ ---------- ---------- -----
...............................................................................................................
Net investment income 0.02 0.02 0.05 0.05 0.03
...............................................................................................................
Less dividends (from net
investment income) (0.02) (0.02) (0.05) (0.05) (0.03)
------ ------ ---------- ---------- -----
...............................................................................................................
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
------ ------ ---------- ---------- -----
...............................................................................................................
TOTAL RETURN 2.46% 2.08% 4.95% 5.05% 3.53%
...............................................................................................................
RATIOS/SUPPLEMENTAL DATA
...............................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $3,823 $2,910 $ 2,803 $ 1,755 $ 685
...............................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.86%(a) 0.89%(a) 0.79% 0.75% 0.81%(a)
...............................................................................................................
Expenses, excluding
indirectly paid
expenses 0.86%(a) 0.89%(a) 0.79% -- --
...............................................................................................................
Expenses, excluding
waivers and/or
reimbursements 0.86%(a) 0.89%(a) 0.88% 0.89% 1.02%(a)
...............................................................................................................
Net income 4.89%(a) 4.91%(a) 4.87% 4.86% 5.26%(a)
...............................................................................................................
<CAPTION>
Six Months January 26, 1995
Ended Five Months Year Ended August 31, (Commencement of
July 31, 1998 Ended ---------------------- Class Operations) to
(Unaudited) January 31, 1998 (c) 1997 1996 August 31, 1995
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
------ ------ ---------- ---------- -----
...............................................................................................................
Net investment income 0.02 0.02 0.04 0.04 0.03
...............................................................................................................
Less dividends (from net
investment income) (0.02) (0.02) (0.04) (0.04) (0.03)
------ ------ ---------- ---------- -----
...............................................................................................................
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
------ ------ ---------- ---------- -----
...............................................................................................................
TOTAL RETURN (B) 2.11% 1.78% 4.22% 4.31% 2.78%
...............................................................................................................
RATIOS/SUPPLEMENTAL DATA
...............................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $ 53 $ 25 $ 23 $ 10 $ 8
...............................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 1.57%(a) 1.59%(a) 1.49% 1.45% 1.51%(a)
...............................................................................................................
Expenses, excluding
indirectly paid
expenses 1.56%(a) 1.59%(a) 1.49% -- --
...............................................................................................................
Expenses, excluding
waivers and/or
reimbursements 1.57%(a) 1.59%(a) 1.55% 1.59% 2.39%(a)
...............................................................................................................
Net income 4.28%(a) 4.22%(a) 4.16% 4.18% 4.54%(a)
...............................................................................................................
</TABLE>
(a) Annualized.
(b) Excluding applicable sales charges.
(c) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
6
<PAGE>
EVERGREEN
Money Market Fund
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months August 1, 1997
Ended Five Months (Commencement of
July 31, 1998 Ended Class Operations) to
(Unaudited) January 31, 1998 (d) August 31, 1997
<S> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $1.00
------ ------ -----
...................................................................................
Net investment income 0.02 0.02 0(e)
...................................................................................
Less dividends (from net
investment income) (0.02) (0.02) 0(e)
------ ------ -----
...................................................................................
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $1.00
------ ------ -----
...................................................................................
TOTAL RETURN (B) 2.11% 1.78% 0.37%
...................................................................................
RATIOS/SUPPLEMENTAL DATA
...................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $ 7 $ 2 $ 5
...................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 1.56%(a) 1.59%(a) 1.67%(a)
...................................................................................
Expenses, excluding
indirectly paid
expenses 1.55%(a) 1.59%(a) 1.66%(a)
...................................................................................
Expenses, excluding
waivers and/or
reimbursements 1.56%(a) 1.59%(a) 1.69%(a)
...................................................................................
Net income 4.19%(a) 4.20%(a) 4.42%(a)
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended Five Months Year Ended August 31, Ten Months Year
July 31, 1998 Ended ------------------------- Ended Ended
(Unaudited) January 31, 1998 (d) 1997 1996 1995 August 31, 1994 (c) October 31, 1993
...............................................................................................................................
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------- ------- ------- ------ ------
...............................................................................................................................
Net investment income 0.03 0.02 0.05 0.05 0.05 0.03 0.03
...............................................................................................................................
Less dividends (from net
investment income) (0.03) (0.02) (0.05) (0.05) (0.05) (0.03) (0.03)
------ ------ ------- ------- ------- ------ ------
...............................................................................................................................
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------- ------- ------- ------ ------
...............................................................................................................................
TOTAL RETURN 2.62% 2.21% 5.27% 5.36% 5.38% 2.92% 3.23%
...............................................................................................................................
RATIOS/SUPPLEMENTAL DATA
...............................................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $1,553 $ 610 $ 635 $ 671 $ 283 $ 273 $ 299
...............................................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.56%(a) 0.59%(a) 0.48% 0.45% 0.53% 0.32%(a) 0.39%
...............................................................................................................................
Expenses, excluding
indirectly paid
expenses 0.55%(a) 0.59%(a) 0.48% -- -- -- --
...............................................................................................................................
Expenses, excluding
waivers and/or
reimbursements 0.56%(a) 0.59%(a) 0.54% 0.59% 0.73% 0.71%(a) 0.71%
...............................................................................................................................
Net income 5.18%(a) 5.22%(a) 5.13% 5.16% 5.26% 3.46%(a) 3.19%
...............................................................................................................................
</TABLE>
(a) Annualized.
(b) Excluding applicable sales charges.
(c) The Fund changed its fiscal year end from October 31 to August 31.
(d) The Fund changed its fiscal year end from August 31 to January 31.
(e) Represents an amount less than $0.01 per share.
See Combined Notes to Financial Statements.
7
<PAGE>
EVERGREEN
Municipal Money Market Fund
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Year Ended January 5, 1995
Ended Five Months August 31, (Commencement of
July 31, 1998 Ended ------------ Class Operations) to
(Unaudited) January 31, 1998 (b) 1997 1996 August 31, 1995
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
..........................................................................
Net investment income 0.02 0.01 0.03 0.03 0.02
..........................................................................
Less dividends (from net
investment income) (0.02) (0.01) (0.03) (0.03) (0.02)
----- ----- ----- ----- -----
..........................................................................
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
..........................................................................
TOTAL RETURN 1.57% 1.34% 3.13% 3.22% 2.24%
..........................................................................
RATIOS/SUPPLEMENTAL DATA
..........................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $ 776 $ 672 $ 667 $ 661 $ 555
..........................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.87%(a) 0.88%(a) 0.83% 0.79% 0.78%(a)
..........................................................................
Expenses, excluding
indirectly paid
expenses 0.87%(a) 0.88%(a) 0.83% -- --
..........................................................................
Expenses, excluding
waivers and/or
reimbursements 0.87%(a) 0.88%(a) 0.86% 0.90% 0.90%(a)
..........................................................................
Net income 3.12%(a) 3.18%(a) 3.09% 3.14% 3.28%(a)
..........................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended Five Months Year Ended August 31,
July 31, 1998 Ended ---------------------------------
(Unaudited) January 31, 1998 (b) 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- -----
..........................................................................
Net investment income 0.02 0.01 0.03 0.03 0.04 0.02 0.03
..........................................................................
Less dividends (from net
investment income) (0.02) (0.01) (0.03) (0.03) (0.04) (0.02) (0.03)
----- ----- ----- ----- ----- ----- -----
..........................................................................
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- -----
..........................................................................
TOTAL RETURN 1.72% 1.47% 3.44% 3.53% 3.59% 2.50% 2.61%
..........................................................................
RATIOS/SUPPLEMENTAL DATA
..........................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $ 589 $ 386 $ 378 $ 617 $ 421 $ 402 $ 401
..........................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.57%(a) 0.58%(a) 0.53% 0.49% 0.50% 0.34% 0.34%
..........................................................................
Expenses, excluding
indirectly paid
expenses 0.57%(a) 0.58%(a) 0.53% -- -- -- --
..........................................................................
Expenses, excluding
waivers and/or
reimbursements 0.57%(a) 0.58%(a) 0.55% 0.60% 0.63% 0.64% 0.63%
..........................................................................
Net income 3.41%(a) 3.46%(a) 3.37% 3.44% 3.53% 2.47% 2.58%
..........................................................................
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
8
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months August 22, 1995
Ended Five Months Six Months (Commencement of
July 31, 1998 Ended Year Ended Ended Class Operations) to
(Unaudited) January 31, 1998 (c) August 31, 1997 August 31, 1996 (b) February 29, 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ------ ------ ------ ------
........................................................................................................................
Net investment income 0.02 0.01 0.03 0.01 0.02
........................................................................................................................
Less dividends (from net
investment income) (0.02) (0.01) (0.03) (0.01) (0.02)
----- ------ ------ ------ ------
........................................................................................................................
NET ASSET VALUE, END OF
PERIOD $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ------ ------ ------ ------
........................................................................................................................
TOTAL RETURN 1.51% 1.34% 3.05% 1.49% 1.72%
........................................................................................................................
RATIOS/SUPPLEMENTAL DATA
........................................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $ 50 $ 37 $ 36 $ 22 $ 4
........................................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.65%(a) 0.61%(a) 0.60% 0.55%(a) 0.47%(a)
........................................................................................................................
Expenses, excluding
indirectly paid
expenses 0.64%(a) 0.61%(a) 0.60% -- --
........................................................................................................................
Expenses, excluding
waivers and/or
reimbursements 0.87%(a) 0.87%(a) 0.89% 0.96%(a) 1.08%(a)
........................................................................................................................
Net income 3.00%(a) 3.15%(a) 3.01% 2.97%(a) 3.14%(a)
........................................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended Five Months Six Months Year Ended February 28,
July 31, 1998 Ended Year Ended Ended --------------------------
(Unaudited) January 31, 1998 (c) August 31, 1997 August 31, 1996 (b) 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
............................................................................................................................
Net investment income 0.02 0.01 0.03 0.01 0.03 0.03 0.02 0.03
............................................................................................................................
Less dividends (from
net investment
income) (0.02) (0.01) (0.03) (0.01) (0.03) (0.03) (0.02) (0.03)
----- ----- ----- ----- ----- ----- ----- -----
............................................................................................................................
NET ASSET VALUE, END
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
............................................................................................................................
TOTAL RETURN 1.56% 1.38% 3.15% 1.51% 3.55% 2.81% 2.10% 2.68%
............................................................................................................................
RATIOS/SUPPLEMENTAL
DATA
............................................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $ 32 $ 33 $ 32 $ 48 $ 83 $ 44 $ 14 $ 16
............................................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.55%(a) 0.51%(a) 0.50% 0.50%(a) 0.37% 0.33% 0.47% 0.35%
............................................................................................................................
Expenses, excluding
indirectly paid
expenses 0.54%(a) 0.51%(a) 0.50% -- -- -- -- --
............................................................................................................................
Expenses, excluding
waivers and/or
reimbursements 0.57%(a) 0.58%(a) 0.60% 0.66%(a) 0.73% 1.05% 1.26% 1.07%
............................................................................................................................
Net income 3.10%(a) 3.26%(a) 3.10% 2.92%(a) 3.42% 3.09% 2.10% 2.62%
............................................................................................................................
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from February 29 to August 31.
(c) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
9
<PAGE>
EVERGREEN
Treasury Money Market Fund
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Year Ended Year Ended
Ended Five Months August 31, Eight Months December 31,
July 31, 1998 Ended -------------- Ended --------------
(Unaudited) January 31, 1998 (c) 1997 1996 August 31, 1995 (b) 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------
........................................................................................................................
Net investment income 0.02 0.02 0.05 0.05 0.03 0.04 0.03
........................................................................................................................
Less dividends (from net
investment income) (0.02) (0.02) (0.05) (0.05) (0.03) (0.04) (0.03)
------ ------ ------ ------ ------ ------ ------
........................................................................................................................
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------
........................................................................................................................
TOTAL RETURN 2.45% 2.07% 4.82% 4.98% 3.58% 3.75% 2.73%
........................................................................................................................
RATIOS/SUPPLEMENTAL DATA
........................................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $2,979 $2,616 $2,485 $2,608 $1,178 $ 755 $ 261
........................................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.73%(a) 0.73%(a) 0.72% 0.69% 0.63%(a) 0.50% 0.48%
........................................................................................................................
Expenses, excluding
indirectly paid
expenses 0.73%(a) 0.73%(a) 0.72% -- -- -- --
........................................................................................................................
Expenses, excluding
waivers and/or
reimbursements 0.73%(a) 0.73%(a) 0.72% 0.77% 0.79%(a) 0.78% 0.82%
........................................................................................................................
Net income 4.86%(a) 4.89%(a) 4.73% 4.76% 5.30%(a) 3.91% 2.70%
........................................................................................................................
<CAPTION>
Six Months Year Ended Year Ended
Ended Five Months August 31, Eight Months December 31,
July 31, 1998 Ended -------------- Ended --------------
(Unaudited) January 31, 1998 (c) 1997 1996 August 31, 1995 (b) 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------
Less dividends (from net
investment income) (0.03) (0.02) (0.05) (0.05) (0.04) (0.04) (0.03)
------ ------ ------ ------ ------ ------ ------
........................................................................................................................
Net investment income 0.03 0.02 0.05 0.05 0.04 0.04 0.03
........................................................................................................................
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------
........................................................................................................................
........................................................................................................................
TOTAL RETURN 2.60% 2.20% 5.14% 5.29% 3.78% 4.06% 3.04%
........................................................................................................................
RATIOS/SUPPLEMENTAL DATA
........................................................................................................................
NET ASSETS, END OF
PERIOD (MILLIONS) $1,160 $ 572 $ 547 $ 760 $ 277 $ 163 $ 366
........................................................................................................................
RATIOS TO AVERAGE NET
ASSETS
Expenses 0.43%(a) 0.43%(a) 0.42% 0.39% 0.33%(a) 0.20% 0.18%
........................................................................................................................
Expenses, excluding
indirectly paid
expenses 0.43%(a) 0.43%(a) 0.42% -- -- -- --
........................................................................................................................
Expenses, excluding
waivers and/or
reimbursements 0.43%(a) 0.43%(a) 0.43% 0.47% 0.49%(a) 0.48% 0.52%
........................................................................................................................
Net income 5.16%(a) 5.19%(a) 5.02% 5.12% 5.60%(a) 3.78% 3.00%
........................................................................................................................
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
10
<PAGE>
EVERGREEN
Money Market Fund
SCHEDULE OF INVESTMENTS
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
BANKERS' ACCEPTANCES - 0.1% (COST $4,998,462)
$ 5,000,000 Barclays Bank,
5.645%, 3/2/99................................... $ 4,998,462
------------
CERTIFICATES OF DEPOSIT - 7.8%
50,000,000 Bank of Nova Scotia,
5.81%, 8/5/98.................................... 49,999,843
50,000,000 Banque National de Paris (New York), 5.69%,
2/26/99.......................................... 50,000,000
25,000,000 Bayerische Vereinsbank AG (New York),
5.71%, 2/26/99................................... 25,000,000
50,000,000 Credit Suisse First Boston, Inc.,
5.70%, 12/14/98.................................. 50,000,000
Deutsche Bank:
5,000,000 5.84%, 10/14/98................................... 4,999,409
9,250,000 5.94%, 10/22/98................................... 9,249,205
50,000,000 National Bank of Canada (New York), 5.93%,
9/14/98.......................................... 49,997,120
30,000,000 Rabobank Nederland, N.V.,
5.75%, 4/27/99................................... 29,989,414
Societe Generale (New York):
5,000,000 5.80%, 4/1/99..................................... 4,999,362
25,000,000 5.97%, 9/15/98.................................... 25,002,991
50,000,000 Standard Chartered Bank,
5.95%, 10/19/98.................................. 49,998,966
50,000,000 Svenska Handlesbanken, Inc.,
5.96%, 8/13/98................................... 49,999,372
Swiss Bank (New York):
12,000,000 5.65%, 3/5/99..................................... 11,996,598
10,000,000 5.825%, 10/2/98................................... 9,999,322
5,000,000 5.852%, 11/20/98.................................. 4,999,564
------------
Total Certificates of Deposit
(cost $426,231,166).............................. 426,231,166
------------
COMMERCIAL PAPER* - 45.2%
AUTOMOTIVE EQUIPMENT & MANUFACTURING - 2.1%
Mitsubishi Motors Credit
of America, Inc.:
25,000,000 5.65%, 8/6/98..................................... 24,980,382
35,000,000 5.68%, 8/4/98..................................... 34,983,433
(LOC: Norinchukin Bank):
25,000,000 5.65%, 8/5/98..................................... 24,984,306
30,000,000 5.68%, 8/6/98..................................... 29,976,333
------------
114,924,454
------------
BANKS - 1.4%
7,582,000 Bank One Corp.,
5.60%, 8/21/98................................... 7,558,791
5,000,000 National Westminster Bank,
5.83%, 10/14/98.................................. 4,999,612
12,850,000 NationsBank, N.A.,
5.55%, 2/11/99................................... 12,846,723
55,000,000 Unibanco Uniao de Bancos,
5.49%, 4/16/99................................... 52,836,025
------------
78,241,151
------------
CHEMICAL & AGRICULTURAL
PRODUCTS - 0.4%
DuPont Corp.:
$ 10,000,000 5.53%, 8/4/98...................................... $ 9,990,800
10,000,000 5.56%, 8/14/98..................................... 9,980,139
------------
19,970,939
------------
COMMERCIAL SERVICES - 1.1%
60,000,000 PHH Corp.,
5.86%, 7/26/99.................................... 60,002,817
------------
FINANCE & INSURANCE - 33.3%
Aetna Services, Inc.:
60,000,000 5.56%, 9/8/98...................................... 59,647,867
35,000,000 5.57%, 8/18/98..................................... 34,907,940
62,300,000 Asset Backed Capital Finance, Inc.,
5.57%, 8/17/98.................................... 62,145,773
20,000,000 Bank One Funding Corp.,
5.60%, 8/19/98.................................... 19,944,900
Banner Receivables Corp.,
(LOC: Republic Bank):
34,733,000 5.67%, 9/9/98...................................... 34,519,652
53,859,000 5.68%, 8/13/98..................................... 53,757,027
24,567,000 5.70%, 8/4/98...................................... 24,555,331
45,853,000 5.70%, 8/7/98...................................... 45,809,440
42,790,000 5.70%, 8/20/98..................................... 42,661,273
19,610,000 5.70%, 9/15/98..................................... 19,470,279
78,767,000 Barton Capital Corp.,
5.70%, 8/4/98..................................... 78,729,586
Broadway Capital Corp.:
15,223,000 5.68%, 8/20/98..................................... 15,177,365
62,797,000 5.70%, 8/3/98...................................... 62,777,114
18,985,000 5.71%, 8/3/98...................................... 18,978,978
45,057,000 5.75%, 8/4/98...................................... 45,035,410
10,000,000 CDC Capital Corp.,
5.57%, 8/21/98.................................... 9,969,445
Ciesco Corp.:
10,000,000 5.61%, 9/9/98...................................... 9,940,417
25,000,000 5.63%, 9/18/98..................................... 24,816,666
140,000,000 Countrywide Funding Corp.,
5.60%, 8/5/98..................................... 139,912,889
20,000,000 First Chicago Corp.,
5.55%, 8/28/98.................................... 19,917,200
Gotham Funding Corp.,
(LOC: Republic Bank):
30,000,000 5.67%, 8/20/98..................................... 29,910,225
30,000,000 5.67%, 9/9/98...................................... 29,815,725
40,000,000 5.68%, 9/2/98...................................... 39,798,044
64,742,000 5.70%, 8/7/98...................................... 64,680,495
13,810,000 5.73%, 8/3/98...................................... 13,805,604
25,246,000 Greenwich Funding Corp.,
5.54%, 8/3/98..................................... 25,238,230
Merrill Lynch & Co., Inc.:
10,000,000 5.59%, 8/5/98...................................... 9,993,911
20,000,000 5.65%, 9/21/98..................................... 19,843,600
50,000,000 Mont Blanc Capital Corp.,
5.55%, 8/21/98.................................... 49,845,833
</TABLE>
11
<PAGE>
EVERGREEN
Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
COMMERCIAL PAPER - CONTINUED
FINANCE & INSURANCE - CONTINUED
$ 59,883,000 Monte Rosa Capital Corp.,
5.60%, 8/28/98................................... $ 59,631,491
5,000,000 National Australia Funding,
5.57%, 8/14/98................................... 4,990,051
Old Line Funding Corp.,
(LOC: Dai-Ichi Kangyo Bank, Ltd.):
64,352,000 5.55%, 8/13/98.................................... 64,232,949
58,000,000 5.57%, 8/12/98.................................... 57,901,287
111,080,000 5.58%, 8/17/98.................................... 110,804,522
50,000,000 Orix America, Inc.,
(LOC: Norinchukin Bank),
5.888%, 10/23/98.................................. 50,000,000
26,445,000 Park Avenue Receivables Corp.,
5.55%, 8/21/98................................... 26,363,461
36,425,000 Progress Funding Corp.,
(LOC: Sumitomo Bank),
5.65%, 8/19/98.................................... 36,322,099
20,000,000 Prudential Finance Corp.,
5.60%, 8/19/98................................... 19,944,900
Receivables Capital Corp.:
68,248,000 5.54%, 8/25/98.................................... 67,995,937
28,615,000 5.55%, 8/25/98.................................... 28,509,125
10,000,000 Rhyan Fundings LLC,
5.64%, 8/6/98.................................... 10,000,000
2,500,000 Salomon, Inc.,
5.50%, 1/15/99................................... 2,498,908
7,459,000 Teco Finance, Inc.,
5.58%, 8/18/98................................... 7,439,592
Thames Asset Global Securitization, Inc.:
50,000,000 5.54%, 9/8/98..................................... 49,707,611
33,629,000 5.57%, 8/7/98..................................... 33,597,781
Toshiba Capital, Ltd.:
11,800,000 5.62%, 8/14/98.................................... 11,776,053
10,200,000 5.65%, 9/18/98.................................... 10,123,160
50,466,000 Wood Street Funding Corp.,
(LOC: Royal Bank of Canada),
5.56%, 8/3/98..................................... 50,450,412
-------------
1,807,895,558
-------------
FOOD & BEVERAGE PRODUCTS - 0.3%
18,550,000 Campbell Soup Co.,
5.69%, 10/5/98................................... 18,369,138
-------------
HOLDING COMPANIES - 4.4%
KZH Corp.:
61,328,000 (ING 2 Project),
5.55%, 9/30/98.................................... 60,760,716
10,203,000 (Pamco Project),
5.56%, 12/4/98.................................... 10,006,026
KZH Holding Corp. III:
15,338,000 5.56%, 12/4/98.................................... 15,041,891
30,000,000 5.57%, 8/14/98.................................... 29,939,658
84,638,000 5.57%, 8/17/98.................................... 84,428,474
39,162,000 5.60%, 8/28/98.................................... 38,997,520
-------------
239,174,285
-------------
INDUSTRIAL SPECIALTY PRODUCTS & SERVICES - 0.7%
$ 40,000,000 Johnson Controls, Inc.,
5.57%, 8/14/98................................... $ 39,919,544
--------------
PHARMACEUTICALS - 0.1%
5,000,000 Merck & Co., Inc.,
5.25%, 12/22/98.................................. 4,986,675
--------------
TELECOMMUNICATION SERVICES & EQUIPMENT - 1.4%
75,000,000 GTE Corp.,
5.55%, 8/4/98.................................... 74,965,312
--------------
Total Commercial Paper
(cost $2,458,449,873)........................... 2,458,449,873
--------------
CORPORATE BONDS & NOTES - 33.2%
Abbey National Treasury Services, PLC, MTN:
15,000,000 5.59%, 2/3/99.................................... 14,996,331
25,000,000 5.72%, 1/29/99................................... 25,000,000
50,000,000 5.72%, 2/26/99................................... 50,000,000
4,927,000 Associates Corp. of North America,
7.50%, 5/15/99................................... 4,985,706
25,000,000 BankBoston Corp.,
5.90%, 8/7/98.................................... 25,000,000
50,000,000 Bankers Trust Corp., (New York), MTN,
5.77%, 2/3/99.................................... 50,000,000
15,000,000 Beneficial Corp., MTN,
8.10%, 11/23/98.................................. 15,108,274
20,000,000 Beta Finance, Inc.,
5.69%, 3/5/99.................................... 20,000,000
70,000,000 Bravo Trust Series,
5.738%, 10/15/98 (a)............................. 70,000,107
50,000,000 Caterpillar Financial Services, Inc., FRN,
5.618%, 10/7/98.................................. 49,975,849
15,000,000 CC USA, Inc.,
5.71%, 3/30/99................................... 15,000,000
Centauri Finance Corp., FRN:
100,000,000 5.603%, 8/4/98................................... 100,000,000
10,000,000 5.606%, 8/28/98.................................. 10,000,000
29,200,000 Chrysler Financial Corp., MTN,
5.97%, 12/14/98.................................. 29,226,925
5,000,000 CIT Group Holdings, Inc., MTN,
6.375%, 5/21/99.................................. 5,021,028
9,060,000 Commercial Credit Group, Inc.,
10.00%, 5/1/99................................... 9,329,331
60,000,000 Credit Suisse First Boston, Inc., MTN,
5.703%, 8/4/98................................... 60,000,000
29,250,000 Dean Witter Discover & Co.,
5.523%, VRDN..................................... 29,251,507
6,000,000 Discover Credit Corp., MTN,
8.38%, 5/4/99.................................... 6,108,605
</TABLE>
12
<PAGE>
EVERGREEN
Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS & NOTES - CONTINUED
$ 10,000,000 Empress River Casino Finance Corp.,
10.75%, 4/1/99...................................... $ 10,826,949
4,249,000 Exxon Capital Corp.,
8.00%, 10/2/98...................................... 4,262,920
Finova Capital Corp., MTN:
5,850,000 6.38%, 4/15/99...................................... 5,871,877
5,350,000 6.38%, 4/15/99...................................... 5,370,008
Ford Motor Credit Corp.:
1,000,000 5.625%, 12/15/98.................................... 1,000,044
5,675,000 8.875%, 6/15/99..................................... 5,817,048
15,000,000 FRN,
5.70%, 9/23/98...................................... 14,999,429
General Motors Acceptance Corp.:
10,000,000 8.625%, 6/15/99..................................... 10,232,677
39,755,000 MTN,
6.40%, 5/17/99...................................... 39,939,434
6,115,000 Gesmundo & Associates, Inc.,
5.64%, 8/6/98....................................... 6,115,000
30,000,000 Goldman Sachs Group, L.P.,
5.656%, 8/17/98 (a)................................. 30,000,000
8,300,000 Houlihan Brothers,
(LOC: First of America Bank N.A.),
5.64%, VRDN........................................ 8,300,000
35,000,000 Huntington National Bank,
6.15%, 1/21/99..................................... 35,059,563
60,000,000 IBM Credit Corp., MTN,
5.576%, 8/4/98..................................... 59,985,463
50,000,000 J.P. Morgan & Co., Inc., MTN,
5.75%, 3/10/99..................................... 50,000,000
4,905,000 KBL Capital Funding, Inc.,
(LOC: First of America Bank, MI),
5.64%, VRDN........................................ 4,905,000
13,260,000 LAM Funding LLC,
(LOC: First of America Bank, N.A.),
5.64%, VRDN........................................ 13,260,000
Lehman Brothers Holdings, Inc.:
21,639,000 5.75%, 11/15/98..................................... 21,632,218
5,000,000 5.996%, 8/10/98..................................... 5,000,355
4,000,000 6.78%, 5/6/99....................................... 4,026,656
10,000,000 6.84%, 9/25/98...................................... 10,010,963
23,515,000 8.375%, 2/15/99..................................... 23,820,999
7,000,000 9.375%, 1/15/99..................................... 7,108,761
FRN:
60,000,000 5.781%, 8/21/98..................................... 60,000,000
30,000,000 5.83%, 8/3/98....................................... 30,000,000
Lehman Brothers, Inc.:
8,000,000 7.625%, 8/1/98...................................... 8,000,000
17,852,000 10.00%, 5/15/99..................................... 18,411,080
14,000,000 Manitoba Province (Canada),
9.50%, 9/15/98..................................... 14,057,951
Merrill Lynch & Co., Inc.:
25,000,000 5.74%, 8/3/98....................................... 25,000,000
4,500,000 6.375%, 3/30/99..................................... 4,518,319
Morgan Guaranty Trust Co. (New York):
$ 10,000,000 5.55%, 2/4/99....................................... $ 9,997,243
75,000,000 5.93%, 8/31/98...................................... 75,001,157
2,000,000 FRN,
5.71%, 8/21/98...................................... 2,000,000
Morgan Stanley Dean Witter Discover & Co.:
20,000,000 5.788%, 9/15/98.................................... 20,000,000
15,000,000 FRN,
5.75%, 10/15/98..................................... 15,000,000
100,000,000 Norwest Corp.,
5.60%, 8/6/98...................................... 99,922,222
2,000,000 Norwest Financial, Inc.,
8.50%, 8/15/98..................................... 2,001,871
25,000,000 Paccar Financial Corp., MTN,
5.526%, 8/26/98.................................... 24,988,811
PHH Corp., MTN:
20,000,000 5.588%, 9/10/98..................................... 19,985,538
25,000,000 5.68%, 10/6/98...................................... 24,991,968
25,000,000 5.69%, 8/25/98...................................... 24,999,071
80,000,000 5.726%, 8/17/98..................................... 80,000,000
Salomon, Inc.:
15,000,000 6.038%, 8/13/98..................................... 15,013,170
31,950,000 7.00%, 5/15/99...................................... 32,235,560
5,000,000 Sears Roebuck & Co.,
9.50%, 6/1/99...................................... 5,142,865
Sigma Finance Corp.:
50,000,000 5.705%, 3/2/99..................................... 50,000,000
50,000,000 MTN,
6.00%, 9/16/98...................................... 50,000,000
75,000,000 Structured Product Trust,
5.738%, 9/18/98 (a)................................ 75,000,000
50,000,000 Swedbank Sparbanken Svenge,
5.85%, 5/14/99..................................... 49,981,260
4,000,000 Toyota Motor Credit Corp.,
6.375%, 8/5/98..................................... 4,000,176
-------------
Total Corporate Bonds & Notes
(cost $1,806,797,289).............................. 1,806,797,289
-------------
FUNDING AGREEMENTS - 7.1%
38,000,000 Allstate Insurance Co.,
5.696%, 8/1/98 (a)................................. 38,000,000
150,000,000 General American Cash Manager Plus,
5.85%, 8/1/98 (a).................................. 150,000,000
100,000,000 Jackson National Funding,
5.93%, 7/20/99 (a)................................. 100,000,000
50,000,000 Jackson National Life Insurance Co.,
5.91%, 6/29/99 (a)................................. 50,000,000
25,000,000 Pacific Mutual Life Insurance,
5.688%, 8/1/98 (a)................................. 25,000,000
20,000,000 Peoples" Security Life,
5.78%, 8/24/98..................................... 20,000,000
-------------
Total Funding Agreements
(cost $383,000,000)................................ 383,000,000
-------------
</TABLE>
13
<PAGE>
EVERGREEN
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
GOVERNMENT AGENCY BONDS & NOTES - 1.8%
$ 5,250,000 Federal Farm Credit Bank,
Consolidated MTN,
5.52%, 8/11/98.................................. $ 5,249,902
Federal Home Loan Bank:
4,200,000 5.551%, 10/23/98................................. 4,199,723
15,000,000 5.605%, 1/29/99.................................. 15,000,000
50,000,000 5.70%, 3/17/99................................... 50,000,000
10,130,000 5.77%, 4/15/99................................... 10,130,000
Federal Home Loan Mortgage Corp.:
3,170,342 6.00%, 1/1/99.................................... 3,171,541
2,021,820 6.00%, 2/1/99.................................... 2,022,159
5,000,000 Federal National Mortgage Assn., MTN,
5.546%, 10/20/98................................ 4,999,523
-------------
Total Government Agency Bonds & Notes (cost
$94,772,848).................................... 94,772,848
-------------
TAXABLE MUNICIPALS - 2.9%
5,900,000 Brittany Acres,
5.902%, VRDN (a)................................ 5,900,000
128,730,000 Macon Trust Pooled Variable Certificates,
5.71%, VRDN..................................... 128,730,000
25,000,000 Richmond County, Georgia, Industrial Development
Authority,
6.00%, 12/1/98.................................. 25,000,000
-------------
Total Taxable Municipals
(cost $159,630,000) ............................ 159,630,000
-------------
MUTUAL FUND SHARES - 0.6% (COST $32,744,274)
32,744,274 Federated Prime Value
Obligation Fund.................................. $ 32,744,274
--------------
TOTAL INVESTMENTS -
(COST $5,366,623,912)..................... 98.7% 5,366,623,912
OTHER ASSETS AND
LIABILITIES - NET......................... 1.3 69,491,806
----- --------------
NET ASSETS -............................... 100.0% $5,436,115,718
===== ==============
</TABLE>
(a) Securities may be sold to "qualified institutional buyers" under Rule
144A or securities offered pursuant to Section 4(2) of the Securities
Act of 1933, as amended. These securities have been determined to be
liquid under guidelines established by the Board of Trustees.
* Rates represent yield to maturity.
SUMMARY OF ABBREVIATIONS:
FRN Floating Rate Note
LOC Letter of Credit
MTN Medium Term Note
VRDN Variable Rate Demand Note
Variable Rate Demand Notes are payable on demand on no more than seven
calendar days notice given by the Fund to the issuer or other parties not
affiliated with the issuer. Interest rates are determined and reset by
the issuer daily, weekly, or monthly depending upon the terms of the
security. Interest rates presented for these securities are those in
effect at July 31, 1998.
See Combined Notes to Financial Statements.
14
<PAGE>
EVERGREEN
Municipal Money Market Funds
SCHEDULE OF INVESTMENTS
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 98.7%
ALABAMA - 2.2%
Alabama State IDA-IDRB:
$ 2,150,000 Air-Dro Cylinders, Inc.,
(LOC: Southtrust Bank of Alabama, N.A.),
3.90%, VRDN..................................... $ 2,150,000
3,470,000 Automation Technology Industries, Inc.,
(LOC: Columbus Bank & Trust Co.),
3.90%, VRDN...................................... 3,470,000
Commercial Development Authority of the City of
Birmingham, Alabama, RB:
980,000 Avondale Comm. Park, Phase II,
(LOC: Amsouth Bank, N.A.),
3.85%, VRDN...................................... 980,000
605,000 Southside Business Ctr.,
(LOC: Amsouth Bank, N.A),
3.85%, VRDN...................................... 605,000
1,500,000 Florence, Alabama,
IDRB, Die Tech Inc. Project,
(LOC: Southtrust Bank of Alabama, N.A.),
3.87%, VRDN...................................... 1,500,000
1,200,000 Guntersville, Alabama,
IDB-IDRB, KSG Realty Inc. Project,
(LOC: National Bank of Canada),
3.87%, VRDN..................................... 1,200,000
2,500,000 Hackleberg, Alabama,
IDRB, River Birch Homes Project,
(LOC: AmSouth Bank, N.A.),
4.00%, VRDN..................................... 2,500,000
2,500,000 Huntsville, Alabama,
IDB-IDRB,
(LOC: First of America),
3.75%, VRDN..................................... 2,500,000
3,000,000 IDB of Mobile County, Alabama, RB:
3.35%, 8/5/98................................... 3,000,000
2,655,000 Sherman Intl. Corp.,
Ser. 1994A,
(LOC: Columbus Bank & Trust Co.),
3.90%, VRDN...................................... 2,655,000
9,060,000 Mobile, Alabama, IDB,
International Paper Company Project, Ser. 1983A-
ARB,
(Gtd. by International Paper Co.),
4.00%, 11/16/98................................. 9,060,000
--------------
29,620,000
--------------
ALASKA - 0.1%
2,000,000 Valdez, Alaska,
GO,
3.75%, 8/14/98.................................. 2,000,000
--------------
ARIZONA - 0.0%
200,000 Maricopa County, Arizona,
IDA, McLane Co., Inc. Project,
(LOC: Wachovia Bank of Georgia),
4.00%, VRDN..................................... 200,000
--------------
MUNICIPAL OBLIGATIONS - CONTINUED
ARKANSAS - 0.3%
$ 3,455,000 Magnolia, Arkansas,
IDRB, American Fuel Cell Project,
(LOC: Credit Commercial de France),
4.00%, VRDN..................................... $ 3,455,000
--------------
CALIFORNIA - 6.2%
4,250,000 City of Paramount, California,
MHRB, Century Place Apt.,
Ser. 1989A,
(LOC: Heller Financial Inc.),
4.37%, VRDN..................................... 4,250,000
1,900,000 Glenn County, California,
IDA-PCRB, Land O'Lakes, Inc.,
Ser. 1995,
(LOC: Sanwa Bank, Ltd.),
4.35%, VRDN..................................... 1,900,000
20,000,000 Los Angeles, California,
MHRB, Channel Gateway Apts.,
Ser. 89B,
(LOC: Fuji Bank Ltd.),
4.40%, VRDN..................................... 20,000,000
6,440,000 Los Angeles, California,
Municipal Improvement Corp., COP, Equipment and
Real Property Acquisition Program,
4.50%, 10/1/98.................................. 6,445,184
1,100,000 Ontario, California,
IDA-RB, Erenberg Brothers Project, Ser. 1988A,
Issue I,
(LOC: Tokai Bank, Ltd.),
4.55%, VRDN..................................... 1,100,000
17,200,000 Orange County, California, Apartment Development
RB:
4.35%, 8/15/98.................................. 17,202,186
8,500,000 Park Place Apts.,
(LOC: Tokai Bank, Ltd.),
4.52%, VRDN...................................... 8,500,000
11,970,674 San Diego Regl. Comm. Sys. Lease, Pitney Bowes
Credit Corp. Leasetops Trusts:
Ser. 1996A,
(LOC: Landesbank Hessen & Gtd. by Pitney Bowes
Corp.),
3.85%, VRDN (a)................................. 11,970,674
7,417,000 Ser. 1998-2,
(LOC: Pitney Bowes Credit Corp. & Ins. by AMBAC),
3.85%, VRDN (a).................................. 7,417,000
4,400,000 Sacramento County, California, MHRB, River
Terrace Apts. Project, Ser. C,
(LOC: Dai-Ichi Kangyo Bank, Ltd.),
4.40%, VRDN..................................... 4,400,000
1,600,000 San Rafael, California,
IDRB, Phoenix American Inc.,
(LOC: BHF Bank),
3.75%, VRDN..................................... 1,600,000
--------------
84,785,044
--------------
</TABLE>
15
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
COLORADO - 0.6%
$ 5,000,000 Adams County, Colorado,
IDRB, Yellow Freight Systems, Inc., Ser. 1983,
(LOC: LaSalle National Bank),
3.85%, VRDN..................................... $ 5,000,000
2,900,000 Dove Valley Metropolitan District Arapahoe County
GO,
Ser. 1996C-ARB,
(LOC: Dai-Ichi Kangyo Bank, Ltd.),
4.25%, 11/1/98.................................. 2,900,000
--------------
7,900,000
--------------
DELAWARE - 0.4%
3,000,000 Delaware EDA-IDRB,
Arlon, Inc., Ser. 1989,
(LOC: Bank of America, IL),
3.95%, VRDN..................................... 3,000,000
2,480,000 New Castle County, Delaware, EDRB, Toys R Us Inc.
Project, (LOC: Bankers Trust Co., NY),
3.80%, VRDN..................................... 2,480,000
--------------
5,480,000
--------------
DISTRICT OF COLUMBIA - 1.1%
5,120,000 District of Columbia GO RB,
Putable Floating Option Tax Exempt Receipts,
Ser. PA-64,
(LIQ: Merrill Lynch, Inc. & Ins. by FGIC),
3.77%, VRDN..................................... 5,120,000
4,800,000 District of Columbia GO RRB,
Ser. 1992A-4,
(LOC: Societe Generale),
3.80%, VRDN..................................... 4,800,000
4,500,000 District of Columbia HFA-SFHRB, (COLL: GNMA),
4.05%, 9/1/98................................... 4,500,000
--------------
14,420,000
--------------
FLORIDA - 2.9%
20,000,000 Hillsborough County, Florida,
School Board, COP,
(LOC: Citibank N.A. & Ins. by MBIA),
3.67%, VRDN..................................... 20,000,000
6,835,000 Orange County, Florida,
Health Facilities Authority, MSTR, SAK 11,
(LIQ: Credit Suisse First Boston & Ins. by
AMBAC),
3.78%, VRDN..................................... 6,835,000
2,800,000 Orange County, Florida,
HFA MHRB,
Oakwood Project 1985, Ser. E,
(LOC: Fleet Bank, N.A.),
4.00%, 10/1/98.................................. 2,800,000
5,875,000 Palm Beach County, Florida,
School Board, MSTR, Ser. 1996B,
(LIQ: Norwest Bank, MN & Ins. by AMBAC),
3.75%, VRDN..................................... 5,875,000
915,000 Palm Beach, Florida,
Housing Project RB, Meridian Housing, Ser. 1985,
(LOC: Union Bank of California, N.A.),
4.16%, VRDN...................................... 915,000
MUNICIPAL OBLIGATIONS - CONTINUED
FLORIDA - CONTINUED
$ 1,800,000 St. John's County, Florida,
IDA-RB, Bronz-Glow Technologies Project,
(LOC: SouthTrust Bank, N.A.),
3.82%, VRDN..................................... 1,800,000
2,000,000 Sunshine State Government
Community RB,
(LOC: Toronto Dominion Bank & Ins. by AMBAC),
3.60%, 9/11/98.................................. 2,000,000
--------------
40,225,000
--------------
GEORGIA - 2.4%
1,000,000 Albany Dougherty County, Georgia,
Hospital RB, Merck & Co. Project,
Ser. 1984A,
(Gtd. by Merck & Co.),
4.00%, VRDN..................................... 1,000,000
5,000,000 Albany Dougherty County, Georgia,
Payroll, Ser. 1982A, Merck & Co. Project,
(Gtd. by Merck & Co.),
3.75%, VRDN..................................... 5,000,000
1,000,000 Cherokee County, Georgia,
EDA-IDRB,
Piolax Corporation Project,
(LOC: Industrial Bank of Japan),
4.55%, VRDN..................................... 1,000,000
2,200,000 Columbus, Georgia,
HFA MHRB RRB,
Quail Ridge Project, Ser. 1988,
(LOC: Columbus Bank & Trust Co.),
3.90%, VRDN..................................... 2,200,000
Georgia Municipal Electric
Authority, Power Revenue, MSTR:
8,000,000 SAK 14, (LIQ: Credit Suisse First Boston & Ins.
by MBIA),
3.78%, VRDN..................................... 8,000,000
5,040,000 SAK 15, (LIQ: Credit Suisse First Boston & Ins.
by MBIA),
3.78%, VRDN...................................... 5,040,000
6,000,000 Polk County, Georgia,
Development Authority RB, Kimoto Tech. Inc.,
Ser. 1985,
(LOC: Industrial Bank of Japan, Ltd.),
4.30%, VRDN..................................... 6,000,000
5,000,000 Savannah, Georgia,
EDA IDRB, Fuji Vegetable Oil, Inc.,
(LOC: Bank of Tokyo-Mitsubishi),
4.10%, VRDN..................................... 5,000,000
--------------
33,240,000
--------------
HAWAII - 0.4%
4,000,000 Hawaii State GO, 1998 Ser. CR-B,
(LOC: BankBoston N.A. & Ins.
by MBIA),
3.67%, VRDN..................................... 4,000,000
</TABLE>
16
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
HAWAII - CONTINUED
$ 1,000,000 Honolulu, Hawaii,
City and County GO,
Pre-refunded,
6.90%, 10/1/04.................................. $ 1,019,959
--------------
5,019,959
--------------
IDAHO - 0.7%
10,000,000 Education Funding Association Inc.,
Idaho Student Loan RB,
(LOC: First Security Bank),
3.80%, VRDN..................................... 10,000,000
--------------
ILLINOIS - 13.9%
13,303,592 ABN-Amro Chicago Corporation, Munitops
Certificates Trust, Ser. 1997-1,
(LOC: LaSalle National Bank),
3.85%, VRDN (a)................................. 13,303,592
2,820,000 Arlington Heights, Illinois,
MHRB RRB, Dunton Tower Apts. Project,
(LOC: Heller Financial, Inc.),
4.45%, VRDN..................................... 2,820,000
16,000,000 Chicago, Illinois,
GO, ABN-Amro Munitops Certificates Trust, Ser.
1998-3,
(LOC: ABN-Amro Bank & Ins. by FGIC),
3.78%, VRDN (a)................................. 16,000,000
4,200,000 Chicago, Illinois,
IDRB, Federal Marine Terminal Project,
(LOC: Canadian Imperial Bank of Commerce),
3.85%, VRDN..................................... 4,200,000
7,500,000 Chicago, Illinois,
O'Hare International Airport, Special Facilities
RB, Northwest Airlines Inc.,
(LOC: Bank of Tokyo Mitsubishi),
4.10%, VRDN..................................... 7,500,000
9,595,000 City of Aurora, Illinois,
MHRB, Fox Valley Village Apts., Ser. 1993,
(LOC: Sumitomo Bank, Ltd.),
4.25%, VRDN..................................... 9,595,000
2,900,000 City of Chicago, Illinois,
GO, MSTR, SAK-13, Ser. 1995A-2,
(LIQ: Credit Suisse First Boston & Ins. by
AMBAC),
3.78%, VRDN..................................... 2,900,000
1,000,000 City of Peoria, Illinois,
IDRB, PMP Fermentation Products, Inc.,
(LOC: Sanwa Bank, Ltd.),
4.15%, VRDN..................................... 1,000,000
6,500,000 City of Peoria, Illinois,
Solid Waste Disposal RB, PMP Fermentation
Products Inc.,
Ser. 1996,
(LOC: Sanwa Bank, Ltd.),
4.15%, VRDN..................................... 6,500,000
$ 5,900,000 City of West Chicago, Illinois,
IDRB, Acme Printing Inc.,
Ser. 1989,
(LOC: Bank of Tokyo-Mitsubishi, Ltd.),
4.175%, VRDN..................................... 5,900,000
3,500,000 Illinois Development Finance
Authority, EDRB, MTI Corp.,
(LOC: Industrial Bank of Japan, Ltd.),
4.40%, VRDN...................................... 3,500,000
1,400,000 Illinois Development Finance Authority, PCRB,
Illinois Power Co.,
(LOC: Canadian Imperial Bank),
3.50%, VRDN..................................... 1,400,000
15,000,000 Illinois State GO,
(LOC: Citibank, N.A. & Ins. by FSA),
3.67%, VRDN...................................... 15,000,000
Oakbrook Terrace, Illinois,
MHRB, Renaissance Project ARB: (LOC: Trinity
Funding Corp. & Ins. by FGIC)
35,000,000 Ser. A, Subseries II, 4.95%, 11/3/98............. 35,000,000
29,000,000 Ser. A, Subseries III, 4.95%, 11/3/98............ 29,000,000
1,000,000 Schaumburg, Illinois,
MHRB, Windsong Apts. Project,
(LOC: LaSalle National Bank),
3.55%, VRDN..................................... 1,000,000
1,850,000 Skokie, Illinois,
EDRB, Skokie Fashion Square Project,
(LOC: LaSalle National Bank),
3.875%, VRDN.................................... 1,850,000
1,300,000 St. Charles, Illinois,
IDRB, Pier 1 Imports-Midwest Project,
(LOC: Bank One, Texas N.A.),
3.70%, VRDN..................................... 1,300,000
15,210,000 Vernon Hills, Illinois,
MHRB, Hawthorn Lakes Project, Ser. 1991,
(LIQ: Fuji Bank, Ltd. & Ins. by FSA),
4.25%, VRDN..................................... 15,210,000
16,640,000 Village of Hazelcrest Retirement Center RB,
Waterford Estates Project,
Ser. 1992A,
(LOC: Sumitomo Bank Ltd.),
4.25%, VRDN..................................... 16,640,000
--------------
189,618,592
--------------
INDIANA - 2.2%
6,500,000 Avilla, Indiana,
EDRB, Pent Assemblies Inc., Ser. 1996,
(LOC: Fort Wayne National Bank),
4.25%, VRDN..................................... 6,500,000
</TABLE>
17
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
INDIANA - CONTINUED
$ 2,180,000 City of Fort Wayne,
PCRB, General Motors Corp.,
(Gtd. by General Motors Corp.),
3.70%, VRDN..................................... $ 2,180,000
2,000,000 City of South Bend,
MHRB, Maple Lane Assn., Ser. 1987,
(LOC: FHLB of Indianapolis),
3.80%, VRDN..................................... 2,000,000
7,900,000 Fort Wayne, Indiana,
International Airport Trade Ctr. BAN,
4.00%, 9/30/98.................................. 7,900,000
2,000,000 Madison, Indiana,
IDB-RB, Century Tube Corp.,
(LOC: Bank of Tokyo-Mitsubishi),
4.15%, VRDN..................................... 2,000,000
3,700,000 Mount Vernon, Indiana,
PCRB, General Electric Project,
(Gtd. by General Electric),
3.50%, 9/8/98................................... 3,700,000
Sullivan, Indiana,
PCRB, Hoosier Energy Rural Electric Co.,
(Gtd. by Natl. Rural Utilities Co-op Finance
Assoc.):
1,000,000 3.45%, 9/1/98.................................... 1,000,000
1,400,000 3.55%, 10/1/98................................... 1,400,000
2,050,000 3.55%, 10/9/98................................... 2,050,000
1,050,000 3.60%, 9/3/98.................................... 1,050,000
--------------
29,780,000
--------------
IOWA - 0.3%
3,800,000 Algona, Iowa,
IDRB, George A. Hormel and Co.,
(LOC: Sumitomo Bank, Ltd.),
4.55%, VRDN..................................... 3,800,000
--------------
KANSAS - 0.7%
Burlington, Kansas,
PCRB, Kansas City Power & Light Co.:
2,000,000 3.55%, 8/11/98................................... 2,000,000
1,700,000 3.55%, 8/14/98................................... 1,700,000
1,200,000 3.65%, 8/13/98................................... 1,200,000
1,200,000 City of Salina, Kansas,
RB, Salina Central Mall Ltd., Penney's Project,
(LOC: Boatmen's Bank of St. Louis), 3.75%,
VRDN............................................ 1,200,000
1,105,000 City of Salina, Kansas,
RB, Salina Central Mall Ltd., Dillard's Project,
(LOC: Boatmen's Bank of St. Louis), 3.75%,
VRDN............................................ 1,105,000
2,000,000 Johnson County, Kansas,
Water District RB, Pre-refunded, 10.50%,
12/1/98......................................... 2,043,972
--------------
9,248,972
--------------
KENTUCKY - 2.1%
$20,300,000 County of Ohio
PCRB, Big Rivers Electric Corp., Ser. 1985,
(LOC: Chemical Bank),
3.75%, VRDN..................................... 20,300,000
3,320,000 Mason County, Kentucky,
PCRB, Eastern Kentucky Power Co.,
(Gtd. by Natl. Rural Utilities Co-op
Finance Assoc.),
3.60%, VRDN...................................... 3,320,000
Pendleton County, Kentucky,
Multi-County Lease, Kentucky Association of
Counties
Leasing Trust,
(LOC: Commonwealth Bank of Australia):
3,500,000 3.50%, 10/7/98................................... 3,500,000
2,000,000 3.65%, 9/8/98.................................... 2,000,000
--------------
29,120,000
--------------
LOUISIANA - 1.0%
3,060,000 Bossier Parish, Loisiana,
IDRB, H.J. Wilson Co., Inc., Ser. 1982-ARB,
(LOC: Canadian Imperial Bank
of Commerce),
4.05%, 12/1/98.................................. 3,060,000
10,000,000 Natchitoches Parish, Louisiana,
MHRB, Trust Joist Corp.,
(LOC: Bank of Tokyo-Mitsubishi), 4.55%, VRDN.... 10,000,000
--------------
13,060,000
--------------
MASSACHUSETTS - 0.2%
Massachusetts Industrial Finance Authority IDRB:
400,000 Copley Pharmaceutical, Inc.,
(LOC: BankBoston, N.A.),
4.41%, VRDN...................................... 400,000
590,000 Kryptonite Issue, Ser. 1990,
(LOC: BankBoston, N.A.),
4.25%, 9/1/98.................................... 590,022
415,000 Leavy Realty & Jencoat Metal Inc.
Project, Ser. 1994,
(LOC: BankBoston, N.A.),
4.16%, VRDN...................................... 415,000
700,000 Portland Causeway Realty Co., Ser. 1988,
(LOC: Citibank, N.A.),
4.16%, VRDN...................................... 700,000
--------------
2,105,022
--------------
MICHIGAN - 0.7%
6,000,000 Michigan State Jobs Development Authority PCRB,
Mazda Motor Mfg. USA Corp.,
(LOC: Sumitomo Bank Ltd.),
4.125%, VRDN.................................... 6,000,000
</TABLE>
18
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
MICHIGAN - CONTINUED
$ 3,625,000 Sault St. Marie, Michigan Tribe Building
Authority RB, Ser. 1996A,
(LOC: First of America Bank, N.A.),
4.30%, 12/1/98.................................. $ 3,625,000
--------------
9,625,000
--------------
MINNESOTA - 3.3%
4,220,000 Minneapolis, Minnesota,
GO, Sports Arena Project, MSTR, Ser. 1996A,
(LIQ: Norwest Bank, MN)
3.75%, VRDN..................................... 4,220,000
3,150,000 Minnesota State GO, Various Purpose, Pre-
refunded,
6.60%, 8/1/98................................... 3,150,000
2,510,000 Richfield, Minnesota,
Independent School District,
MSTR, Ser. 1994P,
(LIQ: U.S. Bank, N.A. & Ins. by FGIC), 3.75%,
VRDN............................................ 2,510,000
750,000 Southern Minnesota, Municipal Power Agency, MSTR,
Ser. 1996I,
(LIQ: Norwest Bank, MN & Ins. by FGIC),
3.75%, VRDN..................................... 750,000
1,000,000 Spring Lake, Minnesota,
MSTR, Ser. 1996G,
(LIQ: Norwest Bank, MN & Ins. by MBIA),
3.75%, VRDN..................................... 1,000,000
St. Louis Park, Minnesota,
Health Care Facilities Authority RB,
(LIQ: Norwest Bank, MN & Ins. by AMBAC):
14,000,000 MSTR, 1994V-1,
3.75%, VRDN...................................... 14,000,000
10,200,000 MSTR, 1998U-1,
3.75%, VRDN...................................... 10,200,000
2,200,000 Stewartville, Minnesota,
IDA-RB, Halcon Corporation,
(LIQ: U.S. Bank, N.A.),
3.75%, VRDN..................................... 2,200,000
7,170,000 Washington County, Minnesota,
Housing and Redevelopment Authority, Granada
Pond Apts. Project,
(LOC: Sumitomo Bank, Ltd.), 4.20%, VRDN......... 7,170,000
--------------
45,200,000
--------------
MISSISSIPPI - 0.4%
3,075,000 Claiborne County, Mississippi,
PCRB, So. Mississippi Electric Power Assoc.,
(Gtd. by Natl. Rural Utilities Co-op Finance
Assoc.),
3.60%, 9/3/98................................... 3,075,000
3,000,000 Mississippi Business Finance Corp., IDRB,
Nitek Metal Services Inc.,
(LOC: Bank of Tokyo-Mitsubishi),
4.10%, VRDN..................................... 3,000,000
--------------
6,075,000
--------------
MISSOURI - 1.0%
$ 8,000,000 Mexico, Missouri,
IDA-RB, Optec D.D., USA, Inc.,
(LOC: Bank of Tokyo-Mitsubishi),
4.10%, VRDN..................................... 8,000,000
4,240,000 Missouri State Development Finance Board, IDRB,
Cook Composite Co., Ser. 1994,
(LOC: Societe Generale),
3.95%, VRDN..................................... 4,240,000
2,000,000 Missouri State Health & Educational Facilities
Authority
School District, St. Louis County,
4.50%, 9/14/98.................................. 2,001,385
--------------
14,241,385
--------------
MONTANA - 0.5%
6,500,000 Forsythe, Montana,
PCRB, Pacificorp Project,
(LOC: Deutsche Bank AG),
3.85%, VRDN..................................... 6,500,000
--------------
NEVADA - 1.7%
1,000,000 Las Vegas, Nevada,
Sewer RB, Series A,
(Ins. by FGIC),
4.75%, 11/1/98.................................. 1,002,217
16,560,000 Nevada State GO,
Capital Improvements,
(LOC: Banc One Capital Holdings, Inc.),
3.77%, VRDN...................................... 16,560,000
5,000,000 Nevada State GO, ABN-Amro Munitops Certificates
Trust, Ser. 1998-1,
(LOC: ABN-Amro Bank & Ins. by MBIA),
3.76%, VRDN...................................... 5,000,000
--------------
22,562,217
--------------
NEW JERSEY - 0.6%
5,000,000 Essex County, New Jersey,
BAN, Ser. A,
4.25%, 8/7/98................................... 5,000,245
3,700,000 Newark, New Jersey,
Healthcare Facilities RB, New Community Urban
Renewal, Ser. 1995,
(LOC: Sumitomo Bank Ltd. & COLL: GNMA),
4.65%, VRDN..................................... 3,700,000
--------------
8,700,245
--------------
NEW YORK - 6.1%
Battery Park, New York City Housing Authority RB,
Marina Towers Tender Corp.,
(LOC: Sumitomo Bank Ltd.):
8,560,000 Ser. A,
4.60%, VRDN...................................... 8,560,000
7,765,000 Ser. B,
4.60%, VRDN...................................... 7,765,000
</TABLE>
19
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
NEW YORK - CONTINUED
$ 6,500,000 New York State Thruway Authority, Local Highway
and Bridge Service, Putable Floating Option Tax
Exempt Receipts, PA-172,
(LOC: Merrill Lynch, Inc.),
3.78%, VRDN (a)................................. $ 6,500,000
New York, New York,
GO, Putable Floating Option Tax Exempt Receipts,
(LOC: Merrill Lynch, Inc.):
12,495,000 PA-141 Ser. L,
3.78%, VRDN...................................... 12,495,000
19,855,000 PA-148 Ser. L,
3.78%, VRDN...................................... 19,855,000
3,055,000 PA-228 Ser. 1998 C,
3.80%, VRDN...................................... 3,055,000
25,000,000 Onondaga County, New York,
IDA Solid Waste Disposal, Solvay Paperboard II
L.P. Project,
(LOC: Bear Stearns Capital Markets),
4.10%, 11/1/98................................... 25,000,000
--------------
83,230,000
--------------
NORTH CAROLINA - 4.6%
4,000,000 Cabarrus County, North Carolina, Industrial
Facilities PCRB, Oiles America Corp., Ser. 1989,
(LOC: Industrial Bank of Japan, Ltd., NY),
4.55%, VRDN..................................... 4,000,000
North Carolina Eastern Municipal Power Agency,
(LOC: Morgan Guaranty Trust & Union Bank of
Switzerland A.G.):
1,000,000 Catawba Project,
3.70%, 8/13/98................................... 1,000,000
2,000,000 Power System RB,
3.65%, 9/9/98.................................... 2,000,000
10,995,000 North Carolina Municipal Power
Agency, Municipal Securities Trust
Certificates,
(LOC: Bear Stearns Capital Markets & Ins. by
MBIA),
3.90%, 10/29/98 (a)............................. 10,995,000
Wake County, NC, Industrial
Facilities PCRB, Carolina Power & Light Co.,
(LOC: Sumitomo Bank Ltd.):
11,200,000 4.05%, VRDN...................................... 11,200,000
33,250,000 4.25%, VRDN...................................... 33,250,000
--------------
62,445,000
--------------
OHIO - 1.4%
9,160,000 Cuyahoga County, Ohio,
Hospital RB, University
Hospital of Cleveland,
(LOC: Dai-Ichi Kangyo Bank),
4.15%, VRDN..................................... 9,160,000
Ohio Housing Finance Agency MHRB:
$ 3,000,000 10 Wilmington Place Project,
Ser. 1991B,
(LIQ: Fuji Bank, Ltd. & Ins. by FSA),
4.25%, VRDN...................................... 3,000,000
3,405,000 Pine Crossing Project,
(LOC: Sumitomo Bank, Ltd.),
4.70%, VRDN...................................... 3,405,000
3,900,000 St. Mary's, Ohio,
IDRB, Setex, Inc.,
(LOC: Industrial Bank of Japan),
4.50%, VRDN..................................... 3,900,000
--------------
19,465,000
--------------
OREGON - 0.4%
Oregon State EDRB:
2,200,000 Georgia Pacific Corp. 95A Project,
(LOC: Deutsche Genosn-schaftshank),
3.90%, VRDN...................................... 2,200,000
1,830,000 Pacific Coast Seafoods Co.,
(LOC: Union Bank of California, N.A.),
4.25%, VRDN...................................... 1,830,000
1,130,000 Pacific Oyster Co.,
(LOC: Union Bank of California, N.A.),
4.25%, VRDN...................................... 1,130,000
--------------
5,160,000
--------------
PENNSYLVANIA - 2.3%
2,400,000 Beaver County, Pennsylvania,
IDA-PCRB, Duquesne Light Co.,
(LOC: Barclays Bank),
3.65%, 8/7/98................................... 2,400,000
500,000 Elk County, Pennsylvania,
IDA-IDRB, Stackpole Corp. Project, Ser. 1989,
(LOC: Fleet Bank, N.A.),
4.16%, VRDN..................................... 500,000
200,000 Lehigh County, Pennsylvania,
IDA-PCRB, Allegheny Electric Co.,
(LOC: Rabobank Nederland),
3.55%, VRDN..................................... 200,000
1,500,000 Montgomery County, Pennsylvania,
IDA-PCRB, Peco Energy Project,
(LOC: Deutsche Bank A.G.),
3.70%, 8/11/98.................................. 1,500,000
455,000 Pennsylvania State Higher Education
Facilities Authority RB, University of
Pennsylvania, Ser. A,
4.80%, 9/1/98................................... 455,475
1,000,000 Philadelphia, Pennsylvania, Hospital & Higher
Education Facilities Authority RB, Children's
Hospital Project, Ser. A,
(SPA: Morgan Guaranty Trust, NY), 3.75%, VRDN... 1,000,000
</TABLE>
20
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
PENNSYLVANIA - CONTINUED
$ 6,500,000 Philadelphia, Pennsylvania,
Water and Waste Water RB, MSTR,
(LOC: Bear Stearns Capital Markets & Ins. by
FGIC),
3.85%, 9/1/98 (a)............................... $ 6,500,000
14,720,000 Pittsburgh, Pennsylvania,
GO, MSTR,
(LOC: Bear Stearns Capital Markets & Ins. by
MBIA),
3.71%, VRDN (a)................................. 14,720,000
3,065,000 Westmoreland County, Pennsylvania, IDA-IDRB,
White Consolidated Industries, Inc.,
(LOC: Bank of Nova Scotia), 4.07%, 12/1/98...... 3,065,000
1,500,000 York County, Pennsylvania,
Solid Waste and Refuse Authority RB,
(Ins. by FGIC),
4.75%, 12/1/98.................................. 1,504,474
--------------
31,844,949
--------------
SOUTH CAROLINA - 2.8%
16,030,000 Georgetown County, South Carolina,
PCRB, International Paper Co.,
(Gtd. by International Paper Co.),
4.00%, 9/1/98................................... 16,030,000
8,770,000 Lexington, South Carolina,
Combined Water and Sewer Systems RB, Putable
Floating Option Tax Exempt Receipts,
PA-177,
(LIQ: Merrill Lynch, Inc. & Ins. by Asset
Guaranty Corp.),
3.77%, VRDN..................................... 8,770,000
500,000 North Charleston, South Carolina,
GO, Pre-refunded,
7.50%, 8/1/98................................... 510,000
South Carolina Jobs EDA-EDRB:
550,000 Ridge Pallets Inc., Ser. B,
(LOC: Credit Commerce de France),
3.85%, VRDN...................................... 550,000
2,700,000 Roller Bearing Co., Ser. 1994A,
(LOC: Heller Financial Inc.),
4.42%, VRDN...................................... 2,700,000
750,000 Tuttle Co., Inc., Ser. A,
(LOC: NationsBank, N.A.),
3.85%, VRDN...................................... 750,000
8,300,000 South Carolina Port Authority,
ABN-Amro Munitops Certificates Trust, Ser. 1998-
7,
(LOC: ABN-Amro Bank & Ins. by FSA),
3.79%, VRDN (a)................................. 8,300,000
--------------
37,610,000
--------------
SOUTH DAKOTA - 0.4%
5,175,000 Rapid City, South Dakota,
EDRB, Civic Center Association,
(LOC: Citibank N.A.),
3.87%, VRDN..................................... 5,175,000
--------------
TENNESSEE - 2.8%
$ 2,500,000 Bristol, Tennessee,
IDB-IDRB, Robinette Company,
(LOC: First American National Bank),
3.95%, VRDN..................................... $ 2,500,000
Chattanooga, Tennessee,
IDB-IDRB:
3,200,000 Radisson Read House Project,
Ser. 1995,
(LOC: Heller Financial Inc.),
4.40%, VRDN...................................... 3,200,000
5,500,000 Top Flight, Inc.,
(LOC: National Bank of Canada),
3.80%, VRDN...................................... 5,500,000
4,400,000 Jackson City, Tennessee,
Health, Educational and Housing Facilities Board
RB, Union University Project,
(LOC: First American National Bank),
3.80%, VRDN..................................... 4,400,000
4,900,000 Maryville, Tennessee,
IDB of Education, IDRB, Maryville College,
(LOC: First American National Bank),
3.80%, VRDN..................................... 4,900,000
700,000 Metro Govt. of Nashville and
Davidson County, Tennessee,
IDB, Wellington IV Assn. Project,
(LOC: U.S. Bank, N.A.),
3.85%, VRDN..................................... 700,000
8,465,000 Shelby County, Tennessee,
Health, Education and Housing Facilities RB,
MSTR,
(LOC: Bear Stearns Capital Markets & Ins. by
MBIA),
3.71%, VRDN..................................... 8,465,000
700,000 Shelby County, Tennessee,
Health, Educational and Housing Facility Board
MHRB, 99 Tower Place Project,
(LOC: NationsBank, N.A.),
4.05%, VRDN..................................... 700,000
8,000,000 Wilson County, Tennessee,
IDB-IDRB, Knight Leasing Company,
(LOC: First American National Bank),
3.95%, VRDN..................................... 8,000,000
--------------
38,365,000
--------------
TEXAS - 10.4%
1,000,000 Austin, Texas,
Utility Systems RB, Pre-refunded,
7.80%, 11/15/98................................. 1,031,989
7,400,000 Brazos River, Texas,
Harbor Navigation District, Dow Chemical Co.
Project,
(Gtd. by Dow Chemical Co.),
3.90%, VRDN..................................... 7,400,000
</TABLE>
21
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
TEXAS - CONTINUED
$ 5,700,000 Brazos River, Texas,
Harbor Navigation District, Solid Waste, Silica
Products, Inc.,
(LOC: Bank of Tokyo-Mitsubishi),
4.10%, VRDN....................................... $ 5,700,000
500,000 Camp County, Texas,
Industrial Development Corp., PCRB, Texas Oil &
Gas Project,
(LOC: PNC Bank),
3.65%, VRDN....................................... 500,000
15,820,000 Dallas, Texas,
Civic Center RB, MSTR,
(LOC: Bear Stearns Capital Markets & Ins. by
MBIA),
3.71%, VRDN (a),.................................. 15,820,000
930,000 Denton County, Texas,
TAN,
5.50%, 9/1/98..................................... 931,225
3,000,000 Galveston, Texas,
Housing Finance Corp., MHRB, Village-by-the-Sea
Apts.,
Ser. 1993,
(LOC: Sumitomo Bank Ltd.),
4.10%, VRDN....................................... 3,000,000
4,500,000 Gulf Coast, Texas,
IDA Solid Waste Disposal RB, CITGO Petroleum
Corp.,
(LOC: Wachovia Bank, N.A.),
3.85%, VRDN....................................... 4,500,000
Harris County, Texas,
Industrial Development Corp., IDRB:
5,000,000 Southern Ionics, Inc.,
(LOC: Southtrust Bank, N.A.),
3.77%, VRDN........................................ 5,000,000
8,000,000 Zeon Chemicals Project,
(LOC: Industrial Bank of Japan),
4.50%, VRDN........................................ 8,000,000
5,210,000 NCNB Pooled Tax-Exempt Trust, COP, Ser. 1990B,
(LOC: NationsBank, N.A.),
4.25%, VRDN....................................... 5,210,000
2,425,000 Nieces County, Texas,
Health Facilities Development Corp. RB,
Driscoll Children's Hospital,
(LOC: Bank One, Texas),
3.60%, VRDN....................................... 2,425,000
4,380,000 Tarrant County, Texas,
Housing Finance Corp. MHRB, Lincoln Meadows
Project,
Ser. 1988 ARB,
(LOC: KBC Bank N.V.),
4.10%, 12/1/98.................................... 4,380,000
1,895,000 Texas Higher Education Authority Inc., Ser. 1985B,
(Ins. by FGIC),
3.55%, VRDN....................................... 1,895,000
38,790,000 Texas State GO,
Reset Option Certificates,
(LOC: Toronto Dominion Bank),
3.70%, VRDN..................................... 38,790,000
Texas State Public Finance
Authority Building RB, General
Services Commission Project,
(LIQ: Citibank, N.A. & Ins. by AMBAC):
4,595,000 PCRB-2,
3.67%, VRDN...................................... 4,595,000
6,535,000 PCRB-3,
3.67%, VRDN...................................... 6,535,000
6,500,000 Texas State RANS and TANS,
Ser. A,
4.75%, 8/31/98.................................. 6,505,202
20,000,000 Texas State Water Finance
Assistance, MSTR,
(LOC: Bear Stearns Capital Markets & Ins. by
AMBAC),
3.81%, VRDN (a)................................. 20,000,000
--------------
142,218,416
--------------
UTAH - 0.3%
1,500,000 Intermountain Power Agency, Utah
Power Supply RB, Ser. E,
(LOC: Union Bank of Switzerland A.G. & Ins. by
AMBAC),
3.45%, 9/15/98.................................. 1,500,000
2,500,000 Summit County, Utah,
IDRB, Hornes' Kimball Project, Ser. 1985,
(LOC: U.S. Bank, N.A.),
4.00%, VRDN..................................... 2,500,000
--------------
4,000,000
--------------
VERMONT - 0.1%
1,235,000 Vermont Student Loan Assistance
Corporation, Student Loan RB,
(LOC: National Westminster, PLC),
3.55%, VRDN..................................... 1,235,000
--------------
VIRGINIA - 0.6%
1,000,000 Chesapeake, Virginia,
IDA-PCRB, Virginia Electric Power Co.,
(LOC: Chase Manhattan Bank),
3.70%, 8/12/98.................................. 1,000,000
2,500,000 Henrico County, Virginia,
IDA-RB, San-J Project,
(LOC: Tokai Bank, Ltd.),
4.55%, VRDN..................................... 2,500,000
2,215,000 Loudoun County, Virginia,
GO, School Improvement and Public Improvement,
4.375%, 8/1/98.................................. 2,215,000
1,500,000 Peninsula Ports Authority, Virginia,
RB, Port Facilities-CSX Transportation Project,
(LOC: Bank of Nova Scotia),
3.70%, 8/7/98................................... 1,500,000
</TABLE>
22
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
VIRGINIA - CONTINUED
$ 1,000,000 Rockingham County, Virginia,
IDA-PCRB, Merck & Co. Project,
(Gtd. by Merck & Co.),
3.75%, VRDN..................................... $ 1,000,000
500,000 Virginia State Public Building
Authority, Public Facilities RB,
3.90%, 8/1/98................................... 500,000
--------------
8,715,000
--------------
WASHINGTON - 2.6%
125,000 Klickitat County, Washington,
Public Corporation RB, Mercer Ranches Project,
Ser. 1996,
(LOC: U.S. Bank, N.A.),
3.65%, VRDN..................................... 125,000
3,400,000 Pierce County, Washington,
Economic Development Corporation RB, Northwest
Banking Project,
(LOC: U.S. Bank, N.A.),
3.80%, VRDN..................................... 3,400,000
Pilchuck Public Development Corporation,
Washington, IDRB,
(LOC: U.S. Bank, N.A.):
145,000 Canyon Park Association Project,
3.60%, VRDN...................................... 145,000
81,000 Hillside Association Project,
3.60%, VRDN...................................... 81,000
94,000 Omni Association Project,
3.60%, VRDN...................................... 94,000
1,650,000 Port Kalama, Washington,
Public Corporation, Port Facilities, Conagra,
Inc. Project,
(LOC: Morgan Guaranty Trust),
3.50%, VRDN..................................... 1,650,000
Washington State GO, Reset Option Certificates,
(LOC: Toronto Dominion Bank):
9,445,000 Ser. 98-12,
3.70%, VRDN (a).................................. 9,445,000
7,430,000 Ser. 98-13,
3.70%, VRDN (a).................................. 7,430,000
10,080,000 Ser. 98-14,
3.70%, VRDN (a).................................. 10,080,000
3,000,000 Ser. 98-15,
3.70%, VRDN (a).................................. 3,000,000
500,000 Washington State, Motor Vehicle
Fuel Tax, Ser. B,
6.00%, 1/1/99................................... 504,280
--------------
35,954,280
--------------
WEST VIRGINIA - 1.5%
21,185,000 West Virginia State, Public Energy Authority,
Putable Floating Option Tax Exempt Receipts,
PPT-184,
(LIQ: Bay Hypotheken-und & Union Bank of
Switzerland A.G.),
3.80%, VRDN..................................... 21,185,000
--------------
WISCONSIN - 0.1%
$ 1,000,000 Wisconsin State GO, Ser. A,
5.75%, 5/1/99................................... 1,015,261
--------------
OTHER - 16.4%
Capital Investors Tax Exempt Fund, Ltd.,
(LOC: Union Bank of Switzerland A.G.):
6,345,000 Series 1993-3,
3.82%, VRDN (a).................................. 6,345,000
21,285,000 Series 1996-1,
3.82%, VRDN (a).................................. 21,285,000
19,900,000 Series 1996-2,
3.82%, VRDN (a).................................. 19,900,000
25,000,000 Clipper Tax-Exempt Certificates Trust, Ser. 1998-
1,
(LOC: State Street Bank & Ins. by MBIA),
3.87%, VRDN..................................... 25,000,000
Merrill Lynch, Inc., Putable Floating Option Tax
Exempt Receipts:
74,200,000 Municipal Securities Pooled Trust,
(Ins. by MBIA),
3.92%, VRDN...................................... 74,200,000
24,660,000 PPT-4,
(Ins. by MBIA & FHA),
3.90%, VRDN...................................... 24,660,000
2,265,000 PPT-5,
(LIQ: Bay Hypotheken-und & Ins. by AMBAC),
3.85%, VRDN...................................... 2,265,000
6,590,000 PPT-5,
(LOC: Credit Suisse First Boston & Ins. by FHA),
4.00%, 8/13/98................................... 6,590,000
17,187,000 PPT-6,
(LOC: Credit Suisse First Boston),
4.075%, VRDN..................................... 17,187,000
9,820,000 PPT-7,
(LOC: Credit Suisse First Boston),
3.90%, 3/11/99 (a)............................... 9,820,000
16,760,000 Morgan Keegan Municipal Products Trust Receipts,
Ser. 1998A,
(LOC: Credit Local de France & Gtd. by U.S.
Treasury),
3.82%, VRDN..................................... 16,760,000
--------------
224,012,000
--------------
Total Municipal Obligations
(cost $1,347,611,342)........................... 1,347,611,342
--------------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUNDS SHARES - 0.3% (COST $4,200,000)
4,200,000 Federated Municipal Obligation Fund.............. 4,200,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS -
(COST $1,351,811,342).. 99.0% 1,351,811,342
OTHER ASSETS AND
LIABILITIES - NET...... 1.0 13,042,966
----- --------------
NET ASSETS - ........... 100.0% $1,364,854,308
===== ==============
</TABLE>
See Combined Notes to Financial Statements.
23
<PAGE>
EVERGREEN
Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
(a) Securities that may be sold to "qualified institutional buyers" under Rule
144A or securities offered pursuant to Section 4(2) of the Securities Act
of 1933, as amended. These securities have been determined to be liquid un-
der guidelines established by the Board of Trustees.
SUMMARY OF ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corp.
ARB Adjustable Rate Bond
BAN Bond Anticipation Note
COLL Collateral
COP Certificates of Participation
EDA Economic Development Authority
EDRB Economic Development Revenue Bond
FGIC Financial Guaranty Insurance Co.
FHA Federal Housing Authority
FHLB Federal Home Loan Bank
FSA Financial Security Assurance Inc.
GNMA Government National Mortgage Association
GO General Obligation
HFA Housing Finance Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDRB Industrial Development Revenue Bond
LIQ Liquidity Provider
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
MHRB Multifamily Housing Revenue Bond
MSTR Municipal Securities Trust Receipt
PCRB Pollution Control Revenue Bond
PPT Pooled Putable Trust
RAN Revenue Anticipation Note
RB Revenue Bond
RRB Refunding Revenue Bond
SAK Sakura Trust
SFHRB Single Family Housing Revenue Bond
SPA Stand-by Purchase Agreement
TAN Tax Anticipation Note
VRDN Variable Rate Demand Note
Adjustable Rate Bonds are putable back to the issuer or other parties not af-
filiated with the issuer at par on the interest reset dates. Interest rates are
determined and set by the issuer quarterly, semi-annually or annually depending
upon the terms of the security. Interest rates and reset dates presented for
these securities are those in effect at July 31, 1998.
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated
with the issuer. Interest rates are determined and reset by the issuer daily,
weekly, or monthly depending upon the terms of the security. Interest rates
presented for these securities are those in effect at July 31, 1998.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstances, provide for repayment of prin-
cipal and interest on the obligation upon demand date, interest rate reset date
or final maturity. These enhancements include: letters of credit; liquidity
guarantees; standby bond purchase agreements; tender option purchase agree-
ments; 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 Ex-
change Commission under Rule 2a-7 which was designed to minimize both credit
and market risk.
See Combined Notes to Financial Statements.
24
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
SCHEDULE OF INVESTMENTS
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 99.7%
PENNSYLVANIA - 99.7%
Allegheny County Airport Revenue,
Putable Floating Tax-Exempt Receipts:
$2,000,000 PA-329,
3.70%, VRDN (a)............................ $ 2,000,000
4,400,000 PT-176,
3.78%, VRDN................................ 4,400,000
Allegheny County Hospital Development
Authority RB:
700,000 Catholic Health System East, Ser. A,
(Ins. by AMBAC),
3.80%, 11/15/98............................ 700,000
400,000 Presbyterian University Hospital, Ser. B1,
ACES,
3.60%, VRDN................................ 400,000
1,000,000 St. Francis Health Center System,
(LOC: First National Bank of Chicago),
3.50%, VRDN................................ 1,000,000
2,000,000 Allegheny County IDA Environmental Resource
RB, U.S. Steel Corp., TECP,
(LOC: Long-Term Credit Bank of Japan),
3.45%, 8/20/98............................ 2,000,000
1,005,000 Allegheny County IDA RB, United Jewish
Federation Project, Ser. A,
(LOC: Mellon Bank N.A.),
3.60%, VRDN............................... 1,005,000
1,750,000 Allegheny County IDR, Multi-Mode, Chelsea
Industries Inc.,
(LOC: Mellon Bank N.A.),
3.65%, VRDN............................... 1,750,000
1,000,000 Allegheny County, Sanitation Authority,
Sewer Revenue, Putable Floating Tax-Exempt
Receipts,
3.65%, VRDN (a) .......................... 1,000,000
Beaver County IDA PCRB:
2,500,000 3.60%, 8/25/98............................ 2,500,000
1,000,000 Ohio Edison Company, Ser. A,
(LOC: Barclays Bank, New York),
4.05%, 4/1/99.............................. 1,002,623
2,000,000 Toledo Edison Co., TECP, Ser. 1992E,
(LOC: Toronto Dominion Bank),
3.80%, 12/1/98............................. 2,000,000
1,000,000 Clarion County, IDA, Meritcare MTC Inc.
Project, Ser. 1991A,
(LOC: PNC Bank),
3.60%, VRDN............................... 1,000,000
2,000,000 Dauphin County General Authority RB,
Education and Health Loan Program,
(SPA: Chase Manhattan Bank &
Ins. by AMBAC),
3.55%, VRDN............................... 2,000,000
1,100,000 Delaware Valley, Regional Finance
Authority, Local Government RB, Ser. D,
(LOC: Credit Suisse First Boston),
3.45%, VRDN............................... 1,100,000
320,000 Derry Township GO Bonds,
(Ins. by MBIA),
3.85%, 9/15/98............................ 320,000
480,000 Easton Area Joint Sewer Authority RB,
Ser. A,
(Ins. by FSA),
4.00%, 12/1/98........................... 480,229
Emmaus General Authority RB
(LOC: Kredietbank N.V.):
1,300,000 Subseries B-16,
3.50%, VRDN............................... 1,300,000
2,000,000 Subseries C-15,
3.50%, VRDN............................... 2,000,000
3,000,000 Franconia Township IDA RB,
Ashers Chocolates Project, Ser. A,
(LOC: Mellon Bank N.A.),
3.75%, VRDN............................... 3,000,000
1,000,000 Geisinger Authority Health Systems RB,
Ser. B, Pre-refunded,
7.625%, 7/1/99............................ 1,053,810
150,000 Hempfield School District, GO,
3.65%, 10/15/98........................... 150,000
650,000 Lawrence County IDA PCRB, Calgon Corp.
Project, Ser. A,
(Ins. by FGIC),
4.00%, VRDN............................... 650,000
500,000 Lehigh County, Allegheny Electric
Cooperation, Inc., IDA PCRB, Ser. 1985-A,
(LOC: Rabobank Nederland),
3.65%, VRDN............................... 500,000
180,000 Lower Paxton Township, Ser. A, GO,
(Ins. by AMBAC),
3.90%, 1/1/99............................. 180,000
4,000,000 Mercer County, IDR, Penntecq, Inc.
Project,
(LOC: Dai-Ichi Kangyo Bank, Ltd.),
4.40%, VRDN............................... 4,000,000
295,000 Montgomery County, GO,
3.80%, 9/15/98............................ 295,106
570,000 Montgomery County, Sewer Authority RB,
4.00%, 8/1/98 (a)......................... 570,000
Montgomery County, MSTR:
1,000,000 Abbington Memorial Hospital, Ser. 1998-31
Class A (LIQ: Bear Stearns Capital Market
& Ins. by AMBAC),
3.77%, VRDN (a)........................... 1,000,000
3,500,000 Philadelphia, Ser. 1997-11 Class A,
(LIQ: Bear Stearns Capital Market & Ins.
by FGIC),
3.85%, 9/2/98 (a)......................... 3,500,000
250,000 North Penn School District, GO,
4.05%, 9/1/98............................. 250,092
Northampton County, Higher Education
Authority:
2,455,000 Putable Floating Tax-Exempt Receipts
PA-176,
3.78%, VRDN (a)........................... 2,455,000
2,500,000 RB, Lafayette College, Ser. A,
(LOC: Landesbakken Hessen-Thuringen
Girozen),
3.60%, VRDN............................... 2,500,000
</TABLE>
25
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - CONTINUED
PENNSYLVANIA - CONTINUED
$2,000,000 Pennsylvania Convention Center RB, Ser. A,
(Ins. by FGIC),
6.50%, 9/1/98.............................. $ 2,004,502
2,900,000 Pennsylvania Energy Development Authority
RB, B&W Ebensburg Project,
(LOC: Swiss Bank),
3.50%, VRDN................................ 2,900,000
1,000,000 Pennsylvania State, Second Series, GO,
5.30%, 7/1/99.............................. 1,014,662
2,000,000 Pennsylvania State Higher Education
Assistance Agency, Student Loan RB,
Ser. A,
(LOC: SLMA),
3.65%, VRDN ............................... 2,000,000
Pennsylvania State Higher Education
Facilities Authority RB:
4,000,000 Carnegie Mellon University, Ser. C,
(SPA: Union Bank of Switzerland N.V. &
Morgan Guaranty Trust),
3.75%, VRDN................................ 4,000,000
Council of Independent Colleges: Harcum
910,000 College, Ser. A5,
(LOC: PNC Bank N.A.),
3.60%, VRDN................................ 910,000
360,000 Drexel University, Second Series,
(Ins. by MBIA),
4.25%, 5/1/99.............................. 361,120
1,600,000 University of Pennsylvania Health Services,
Ser. 1996-C,
(SPA: Credit Suisse First Boston),
3.50%, VRDN................................ 1,600,000
800,000 Waynesburg College, Ser. A8, (LOC: PNC Bank
N.A.),
3.60%, VRDN................................ 800,000
955,000 Pennsylvania State Housing Finance Agency,
Putable Floating Tax-Exempt Receipts PT-
119A,
3.78%, VRDN (a)........................... 955,000
2,100,000 Philadelphia TRANs GO, Ser. A,
4.25%, 6/30/99............................ 2,111,354
500,000 Philadelphia, Airport RB, MSTR, SG 118,
(SPA: Societe Generale & Ins. by FGIC),
3.80%, VRDN (a)........................... 500,000
1,100,000 Philadelphia, Hospital and Higher Education
Facilities Authority RB, Children's
Hospital Project, Ser. A,
(SPA: Morgan Guaranty Trust),
3.75%, VRDN............................... 1,100,000
2,000,000 Philadelphia, School District,
Putable Floating Tax-Exempt Receipts
PA-151,
3.78%, VRDN (a)........................... 2,000,000
3,000,000 Pittsburgh, Putable Floating Tax-Exempt
Receipts, SG 71,
(SPA: Societe Generale & Ins. by FGIC),
3.70%, VRDN (a)........................... 3,000,000
1,455,000 Quakertown, General Authority RB, Pooled
Financing Program, Ser. A,
(LOC: PNC Bank N.A.),
3.55%, VRDN............................... 1,455,000
Schuylkill County, IDA Resource Recovery
RB:
1,000,000 Gilberton Power Project,
(LOC: Mellon Bank N.A.),
3.50%, VRDN................................ 1,000,000
4,300,000 Northeastern Power Co., Ser. A,
(LOC: Credit Local de France),
3.70%, VRDN................................ 4,300,000
530,000 Sharon, Regional Health Systems RB,
(Ins. by MBIA),
4.00%, 12/1/98............................ 530,508
1,250,000 York County, Solid Waste and Refuse
Authority RB, (Ins. by FGIC),
4.75%, 12/1/98............................ 1,253,728
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS -
(COST $81,857,734)........................... 99.7% 81,857,734
OTHER ASSETS AND
LIABILITIES - NET............................ 0.3 242,559
----- -----------
NET ASSETS - ................................. 100.0% $82,100,293
===== ===========
</TABLE>
26
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
(a) Securities that may be sold to "qualified institutional buyers" under Rule
144A or securities offered pursuant to Section 4(2) of the Securities Act
of 1933, as amended. These securities have been determined to be liquid un-
der guidelines established by the Board of Trustees.
SUMMARY OF ABBREVIATIONS:
ACES Adjustable Convertible Extendable Security
AMBAC American Municipal Bond Assurance Corp.
FGIC Financial Guaranty Insurance Co.
FSA Financial Security Assurance Inc.
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
LIQ Liquidity Facility
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
MSTR Municipal Securities Trust Receipt
PCRB Pollution Control Revenue Bond
RB Revenue Bond
SLMA Student Loan Marketing Association
SPA Securities Purchase Agreement
TECP Tax Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated
with the issuer. Interest rates are determined and reset by the issuer daily,
weekly, or monthly depending upon the terms of the security. Interest rates
presented for these securities are those in effect at July 31, 1998.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstance, provide for repayment of princi-
pal and interest on the obligation upon demand date, interest rate reset date
or final maturity. These enhancements include: letters of credit; liquidity
guarantees; standby bond purchase agreements; tender option purchase agree-
ments; 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 Ex-
change Commission under Rule 2a-7 which was designed to minimize both credit
and market risk.
See Combined Notes to Financial Statements.
27
<PAGE>
EVERGREEN
Treasury Money Market Fund
SCHEDULE OF INVESTMENTS
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
U.S. TREASURY STRIPS - 0.5% (COST $19,957,842)
$ 20,000,000 (Effective yield 6.125%)#
0.00%, 8/15/98.................................. $ 19,957,842
--------------
U.S. TREASURY NOTES - 21.7%
133,000,000 4.75% - 6.125%, 8/31/98+......................... 132,975,264
65,000,000 4.75% - 6.00%, 9/30/98+.......................... 65,017,346
135,000,000 5.125% - 5.75%, 12/31/98+........................ 134,815,355
15,000,000 5.50%, 11/15/98.................................. 14,989,993
15,000,000 5.625%, 11/30/98................................. 14,994,486
10,000,000 5.875%, 8/15/98.................................. 10,000,325
60,000,000 5.875%, 10/31/98+................................ 60,024,489
15,000,000 5.875%, 1/31/99.................................. 15,022,371
125,000,000 5.875% - 6.875%, 8/31/99......................... 126,277,040
250,000,000 6.25%, 3/31/99................................... 251,142,346
50,000,000 6.375%, 4/30/99.................................. 50,275,034
25,000,000 6.375%, 5/15/99.................................. 25,141,660
--------------
Total U.S. Treasury Notes
(cost $900,675,709)............................. 900,675,709
--------------
REPURCHASE AGREEMENTS - 87.8%*
200,000,000 ABN Amro, Inc.,
5.63%, dated 6/30/98, due 8/3/98 (1)............ 200,000,000
200,000,000 Barclays Bank, PLC,
5.63%, dated 2/27/98, due 8/3/98 (2)............ 200,000,000
200,000,000 Credit Suisse First Boston Corp.,
5.60%, dated 2/27/98, due 8/3/98 (3)............ 200,000,000
200,000,000 Dean Witter Reynolds, Inc.,
5.61%, dated 2/27/98, due 8/3/98 (4)............ 200,000,000
60,450,000 Dean Witter Reynolds, Inc.,
5.44%, dated 5/22/98, due 8/31/98 (18)**........ 60,450,000
50,125,000 Dean Witter Reynolds, Inc.,
5.43%, dated 5/22/98, due 9/30/98 (19)**........ 50,125,000
75,093,750 Dean Witter Reynolds, Inc.,
5.48%, dated 5/22/98, due 12/31/98 (20)**....... 75,093,750
200,000,000 Deutsche Bank GC,
5.54%, dated 2/27/98, due 8/3/98 (5)............ 200,000,000
55,568,750 Dresdner Bank AG,
5.45%, dated 5/22/98, due 8/3/98 (6)............ 55,568,750
200,000,000 Dresdner Bank AG,
5.60%, dated 2/27/98, due
8/3/98 (7)**.................................... 200,000,000
58,435,000 Dresdner Bank AG,
5.44%, dated 5/22/98, due 8/31/98 (17)**........ 58,435,000
60,662,500 Dresdner Bank AG,
5.48%, dated 5/22/98, due 11/2/98 (6)........... 60,662,500
60,287,500 Dresdner Bank AG,
5.46%, dated 5/22/98, due 12/31/98 (6).......... 60,287,500
10,262,500 Dresdner Bank AG,
5.45%, dated 5/22/98, due 8/3/98 (6)............ 10,262,500
100,000,000 Goldman Sachs & Co.,
5.64%, dated 2/27/98, due 8/3/98 (8)............ 100,000,000
200,000,000 HSBC Securities, Inc.,
5.63%, dated 2/27/98, due 8/3/98 (9)............ 200,000,000
200,000,000 J.P. Morgan,
5.62%, dated 2/27/98, due 8/3/98 (10)........... 200,000,000
82,714,482 Lehman Brothers, Inc.,
5.60%, dated 1/29/98, due 8/3/98 (11)........... 82,714,482
150,000,000 Merrill Lynch, Pierce, Fenner & Smith Inc.,
5.60%, dated 2/27/98, due 8/3/98 (12)........... 150,000,000
100,000,000 NationsBank, Charlotte, NC,
5.62%, dated 2/27/98, due 8/3/98 (13)........... 100,000,000
500,000,000 Salomon Smith Barney, Inc.,
5.65%, dated 6/30/98, due 8/3/98 (14)........... 500,000,000
170,000,000 Societe Generale,
5.63%, dated 7/8/98, due
8/3/98 (15)..................................... 170,000,000
500,000,000 Union Bank Switzerland, Inc.,
5.62%, dated 2/27/98, due
8/3/98 (16)..................................... 500,000,000
--------------
Total Repurchase Agreements
(cost $3,633,599,482)........................... 3,633,599,482
--------------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 0.3% (COST $11,059,162)
11,059,162 Fidelity Institutional Cash Portfolio Treasury
Class 1........................................ 11,059,162
--------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS -
(COST $4,565,292,195)................... 110.3% 4,565,292,195
OTHER ASSETS AND
LIABILITIES - NET....................... (10.3) (426,934,644)
----- --------------
NET ASSETS - ............................ 100.0% $4,138,357,551
===== ==============
</TABLE>
28
<PAGE>
EVERGREEN
Treasury Money Market Fund
SCHEDULE OF INVESTMENTS(continued)
July 31, 1998 (Unaudited)
** Represents collateral received for securities on loan.
+ A portion of these securities are on loan (see Note 3).
# Effective yield (calculated at the date of purchase) is the yield at which
the bond accretes on an annual basis until maturity date.
* Collateralized by:
(1) $398,340,000 U.S. Treasury Notes, 8/15/14 to 11/15/10; value including ac-
crued interest--$300,000,459.
(2) $233,194,000 U.S. Treasury STRIPS, 8/15/15 to 5/15/21; value including ac-
crued interest--$204,000,630.
(3) $198,435,000 U.S. Treasury Notes, 6.25% to 7.125%, 5/31/99 to 9/30/99;
value including accrued interest--$205,942,635.
(4) $185,129,500 U.S. Treasury STRIPS, 2/15/99 to 2/15/27; value including ac-
crued interest--$52,716,560, $115,034,000 U.S. Treasury Bills, 1/22/99 to
7/22/99; value including accrued interest--$109,559,968, $8,539,000 U.S.
Treasury Bonds, 13.25%, 05/15/14; value including accrued interest--
$13,613,855 and $24,180,000 U.S. Treasury Notes, 5.75%, 10/31/00 to
11/15/00; value including accrued interest--$24,110,620.
(5) $129,797,000 U.S. Treasury Bond, 8/15/15; value including accrued inter-
est--$204,000,825.
(6) $10,830,000 U.S. Treasury Bonds, 11.125% to 13.25%, 11/15/03 to 5/15/14;
value including accrued interest--$17,258,629, $103,510,000 GNMA, 6.50% to
7.00%, 2/20/24 to 10/20/27; value including accrued interest--$70,611,686,
$179,790,000 U.S. Treasury Notes, 5.375% to 7.125%, 9/30/99 to 3/31/01;
value including accrued interest--$185,204,348.
(7) $127,296,000 U.S. Treasury Bills, 7/22/99 to 1/28/99; value including ac-
crued interest--$133,166,851, $64,214,000 U.S. Treasury Notes, 8.87% to
10.75%, 2/15/19 to 05/15/03; value including accrued interest--
$70,839,504.
(8) $98,812,000 U.S. Treasury Notes, 5.64%, 2/15/00; value including accrued
interest--$102,000,526.
(9) $178,322,000 U.S. Treasury Notes, 4.75% to 8.12%, 10/31/98 to 8/15/19;
value including accrued interest--$204,000,013.
(10) $5,437,000 U.S. Treasury Bonds,10.75%, 5/15/03; value including accrued
interest--$6,723,140, $76,803,000 U.S. Treasury Notes, 5.50% to 6.87%,
5/31/00 to 7/31/99; value including accrued interest--$77,636,595.
(11) $424,890,000 U.S. Treasury Bonds, 8.12% to 10.00%, 8/15/21 to 5/15/10;
value including accrued interest--$153,003,082.
(12) $134,304,000 U.S. Treasury Notes, 5.125% to 7.25%, 12/31/98 to 5/15/04;
value including accrued interest--$138,333,439, $31,184,000 U.S. Treasury
Bonds, 8.875%, 12/15/19; value including accrued interest--$43,767,041,
$22,109,000 U.S. Treasury Bill, 10/08/98; value including accrued inter-
est--$21,470,874.
(13) $100,000,000 U.S. Treasury Notes, 5.62%, 8/3/98; value including accrued
interest--$100,046,833.
(14) $999,999,290 GNMA, 6.50% to 10.00%, 8/15/01 to 4/20/10; value including
accrued interest--$510,001,068.
(15) $170,000,000 U.S. Treasury STRIPS, 11/15/01 to 2/15/20; value including
accrued interest--$170,354,678.
(16) $3,000,000 U.S. Treasury Notes, 5.50%, 2/15/08; value including accrued
interest--$3,001,568, $1,224,122 U.S. Treasury STRIPS, 5/15/05 to
11/15/10, value including accrued interest--$497,176,271.
(17) $58,705,000 U.S. Treasury Notes, 5.625%, 11/30/00; value including accrued
interest--$59,383,922, $315,000 U.S. Treasury Notes, 6.375%, 3/31/01;
value including accrued interest--$328,192.
(18) $153,986,083 U.S. Treasury STRIPS, 8/15/98 to 11/15/26; value including
accrued interest--$60,474,036.
(19) $112,692,810 U.S. Treasury STRIPS, 8/15/98 to 11/15/27; value including
accrued interest--$50,125,615.
(20) $18,576,519 U.S. Treasury STRIPS, 2/15/01 to 8/15/22; value including ac-
crued interest--$10,839,294, $87,183,117 GNMA 5.00% to 10.50%, 5/15/10 to
7/15/28; value including accrued interest--$62,057,025, $2,279,000 U.S.
Treasury Bills, 11/27/98; value including accrued interest--$2,197,532.
SUMMARY OF ABBREVIATIONS:
GNMAGovernment National Mortgage Association
STRIPSSeparately Traded Registered Interest and Principal Securities
See Combined Notes to Financial Statements.
29
<PAGE>
EVERGREEN
MONEY MARKETS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MUNICIPAL PENNSYLVANIA TREASURY
MARKET MONEY MARKET MUNICIPAL MONEY MONEY MARKET
FUND FUND MARKET FUND FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in
securities............. $5,366,623,912 $1,351,811,342 $81,857,734 $ 931,692,713
Investments in
repurchase agreements.. 0 0 0 3,633,599,482
- ------------------------------------------------------------------------------------------
Investments at amortized
cost................... 5,366,623,912 1,351,811,342 81,857,734 4,565,292,195
Cash.................... 54,298 199,364 9,126 0
Receivable for Fund
shares sold............ 85,709,882 642,215 0 2,307,607
Interest receivable..... 49,505,069 10,047,884 456,321 20,091,456
Receivable for
investments sold....... 0 5,607,498 0 0
Prepaid expenses and
other assets........... 290,854 56,492 3,104 141,983
- ------------------------------------------------------------------------------------------
Total assets........... 5,502,184,015 1,368,364,795 82,326,285 4,587,833,241
- ------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares
redeemed............... 46,848,283 636,613 20,000 551,972
Dividends payable....... 15,056,784 1,934,506 138,465 13,171,952
Due to related parties.. 2,223,671 582,767 31,415 1,435,516
Distribution fee
payable................ 1,014,419 141,710 3,919 770,911
Accrued Trustees' fees
and expenses........... 103,595 37,468 6,447 172,144
Payable for securities
on loan................ 0 0 0 347,036,953
Payable for investments
purchased.............. 0 0 0 86,031,250
Accrued expenses and
other liabilities...... 821,545 177,423 25,746 304,992
- ------------------------------------------------------------------------------------------
Total liabilities...... 66,068,297 3,510,487 225,992 449,475,690
- ------------------------------------------------------------------------------------------
NET ASSETS.............. $5,436,115,718 $1,364,854,308 $82,100,293 $4,138,357,551
- ------------------------------------------------------------------------------------------
NET ASSETS REPRESENTED
BY
Paid-in capital......... $5,436,942,269 $1,365,135,614 $82,110,510 $4,138,354,023
Accumulated net realized
gains and losses on
investments............ (826,551) (281,306) (10,217) 3,528
- ------------------------------------------------------------------------------------------
TOTAL NET ASSETS....... $5,436,115,718 $1,364,854,308 $82,100,293 $4,138,357,551
- ------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Class A................. $3,822,603,484 $ 775,506,983 $49,680,373 $2,978,788,473
Class B................. 53,481,342 -- -- --
Class C................. 6,860,564 -- -- --
Class Y................. 1,553,170,328 589,347,325 32,419,920 1,159,569,078
- ------------------------------------------------------------------------------------------
$5,436,115,718 $1,364,854,308 $82,100,293 $4,138,357,551
- ------------------------------------------------------------------------------------------
SHARES OUTSTANDING
Class A................. 3,822,994,785 775,643,709 49,682,151 2,978,979,068
Class B................. 53,485,654 -- -- --
Class C................. 6,861,987 -- -- --
Class Y................. 1,554,588,103 589,561,024 32,428,359 1,159,625,780
- ------------------------------------------------------------------------------------------
NET ASSET VALUE PER
SHARE
Class A................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------
Class B................. $ 1.00 -- -- --
- ------------------------------------------------------------------------------------------
Class C................. $ 1.00 -- -- --
- ------------------------------------------------------------------------------------------
Class Y................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
30
<PAGE>
EVERGREEN
MONEY MARKETS FUNDS
STATEMENTS OF OPERATIONS
Six Months Ended July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MUNICIPAL PENNSYLVANIA TREASURY
MARKET MONEY MARKET MUNICIPAL MONEY MONEY MARKET
FUND FUND MARKET FUND FUND
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest................ $121,069,468 $23,848,067 $1,303,392 $95,253,953
- ------------------------------------------------------------------------------------
EXPENSES
Management fee.......... 9,727,312 2,930,692 143,256 5,968,350
Distribution Plan
expenses............... 5,327,924 1,114,717 58,438 4,252,135
Transfer agent fees..... 908,219 151,103 3,365 281,629
Custodian fees.......... 448,150 176,453 15,325 368,679
Shareholder reports
expense................ 86,914 54,761 14,317 76,238
Trustees' fees and
expenses............... 56,318 18,012 285 50,792
Professional fees....... 34,868 21,675 10,277 23,548
Administrative services
fees................... 0 0 10,020 476,927
Other................... 473,648 60,730 7,069 68,868
Fee waivers............. 0 0 (47,275) 0
- ------------------------------------------------------------------------------------
Total expenses......... 17,063,353 4,528,143 215,077 11,567,166
Less: Indirectly paid
expenses............... (34,854) (12,596) (3,088) (31,932)
- ------------------------------------------------------------------------------------
Net expenses........... 17,028,499 4,515,547 211,989 11,535,234
- ------------------------------------------------------------------------------------
NET INVESTMENT INCOME... 104,040,969 19,332,520 1,091,403 83,718,719
Net realized gains and
losses on investments.. (194,919) (53,168) 0 3,528
- ------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $103,846,050 $19,279,352 $1,091,403 $83,722,247
- ------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
31
<PAGE>
EVERGREEN
MONEY MARKETS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended July 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MUNICIPAL PENNSYLVANIA TREASURY
MARKET MONEY MARKET MUNICIPAL MONEY MONEY MARKET
FUND FUND MARKET FUND FUND
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.. $ 104,040,969 $ 19,332,520 $ 1,091,403 $ 83,718,719
Net realized gains and
losses on invest-
ments................. (194,919) (53,168) 0 3,528
- --------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 103,846,050 19,279,352 1,091,403 83,722,247
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income
Class A................ (83,596,324) (11,665,207) (585,094) (68,950,332)
Class B................ (793,564) 0 0 0
Class C................ (78,486) 0 0 0
Class Y................ (19,572,595) (7,667,313) (506,309) (14,858,739)
- --------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (104,040,969) (19,332,520) (1,091,403) (83,809,071)
- --------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSAC-
TIONS
Proceeds from shares
sold.................. 5,149,768,330 1,271,142,391 92,380,791 3,580,769,454
Proceeds from shares
issued from acquisi-
tion of:
Virtus Money Market
Fund.................. 227,443,405 0 0 0
Virtus Tax-Free Money
Market Fund........... 0 51,784,668 0 0
Virtus Treasury Money
Market Fund........... 0 0 0 243,731,970
CoreFund Cash Reserve.. 872,363,752 0 0 0
CoreFund Tax-Free Re-
serve................. 0 140,753,563 0 0
CoreFund Treasury Re-
serve................. 0 0 0 687,797,346
Proceeds from reinvest-
ment of distribu-
tions................. 23,973,900 6,766,171 319,097 10,867,230
Payment for shares re-
deemed................ (4,383,920,311) (1,163,351,011) (80,991,447) (3,572,626,237)
- --------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
capital share
transactions.......... 1,889,629,076 307,095,782 11,708,441 950,539,763
- --------------------------------------------------------------------------------------------
Total increase in net
assets............... 1,889,434,157 307,042,614 11,708,441 950,452,939
NET ASSETS
Beginning of period.... 3,546,681,561 1,057,811,694 70,391,852 3,187,904,612
- --------------------------------------------------------------------------------------------
END OF PERIOD.......... $ 5,436,115,718 $ 1,364,854,308 $ 82,100,293 $ 4,138,357,551
- --------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
32
<PAGE>
EVERGREEN
MONEY MARKETS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Five Months Ended January 31, 1998*
<TABLE>
<CAPTION>
MONEY MUNICIPAL PENNSYLVANIA TREASURY
MARKET MONEY MARKET MUNICIPAL MONEY MONEY MARKET
FUND FUND MARKET FUND FUND
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.. $ 72,699,147 $ 14,195,219 $ 891,708 $ 62,823,301
Net realized gains on
investments........... 5,356 32,649 0 40,712
- -------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations........... 72,704,503 14,227,868 891,708 62,864,013
- -------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM
Net investment income
Class A................ (58,870,079) (8,830,796) (461,218) (51,249,555)
Class B................ (373,680) 0 0 0
Class C................ (63,444) 0 0 0
Class K................ (3,988) 0 0 0
Class Y................ (13,387,956) (5,364,423) (430,490) (11,573,746)
- -------------------------------------------------------------------------------------------
Total distributions to
shareholders......... (72,699,147) (14,195,219) (891,708) (62,823,301)
- -------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSAC-
TIONS
Proceeds from shares
sold.................. 3,567,022,048 934,299,761 72,891,344 2,512,165,806
Proceeds from reinvest-
ment of distribu-
tions................. 17,805,187 5,303,116 353,402 7,304,038
Payment for shares re-
deemed................ (3,503,474,896) (926,250,046) (70,557,276) (2,363,286,357)
- -------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
capital share
transactions.......... 81,352,339 13,352,831 2,687,470 156,183,487
- -------------------------------------------------------------------------------------------
Total increase in net
assets............... 81,357,695 13,385,480 2,687,470 156,224,199
NET ASSETS
Beginning of period.... 3,465,323,866 1,044,426,214 67,704,382 3,031,680,413
- -------------------------------------------------------------------------------------------
END OF PERIOD.......... $ 3,546,681,561 $1,057,811,694 $ 70,391,852 $ 3,187,904,612
- -------------------------------------------------------------------------------------------
Undistributed net in-
vestment income........ $ 0 $ 0 $ 0 $ 90,352
- -------------------------------------------------------------------------------------------
</TABLE>
* The Funds changed their fiscal year end from August 31 to January 31 during
the period.
Year Ended August 31, 1997
<TABLE>
<CAPTION>
MONEY MUNICIPAL PENNSYLVANIA TREASURY
MARKET MONEY MARKET MUNICIPAL MONEY MONEY MARKET
FUND FUND MARKET FUND FUND
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.. $ 139,056,319 $ 37,023,232 $ 2,105,384 $ 148,244,069
Net realized gains and
losses on invest-
ments................. (85,308) (2,907) 0 0
- --------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 138,971,011 37,020,325 2,105,384 148,244,069
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHARE-
HOLDERS FROM
Net investment income
Class A................ (101,255,910) (20,900,359) (905,311) (114,457,775)
Class B................ (509,494) 0 0 0
Class C................ (17,908) 0 0 0
Class K................ (2,220) 0 0 0
Class Y................ (37,268,232) (16,122,873) (1,203,873) (33,786,294)
- --------------------------------------------------------------------------------------------
Total distributions to
shareholders......... (139,053,764) (37,023,232) (2,109,184) (148,244,069)
- --------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSAC-
TIONS
Proceeds from shares
sold.................. 8,940,579,510 2,604,375,798 127,715,297 6,954,597,959
Proceeds from shares
issued from
acquisition of
Keystone Liquid
Trust................. 163,579,564 0 0 0
Proceeds from reinvest-
ment of distribu-
tions................. 38,314,180 14,787,888 1,021,288 19,627,202
Payment for shares re-
deemed................ (8,113,736,002) (2,852,083,788) (131,543,821) (7,310,208,436)
- --------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 1,028,737,252 (232,920,102) (2,807,236) (335,983,275)
- --------------------------------------------------------------------------------------------
Total increase in net
assets............... 1,028,654,499 (232,923,009) (2,811,036) (335,983,275)
NET ASSETS
Beginning of period.... 2,436,669,367 1,277,349,223 70,515,418 3,367,663,688
- --------------------------------------------------------------------------------------------
END OF PERIOD.......... $ 3,465,323,866 $ 1,044,426,214 $ 67,704,382 $ 3,031,680,413
- --------------------------------------------------------------------------------------------
Undistributed net in-
vestment income........ $ 2,555 $ 0 $ 0 $ 49,640
- --------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
33
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Evergreen Money Market Funds (the "Funds") consist of the Evergreen Money
Market Fund ("Money Market Fund"), Evergreen Municipal Money Market Fund ("Mu-
nicipal Money Market Fund"), Evergreen Pennsylvania Municipal Money Market Fund
("Pennsylvania Municipal Money Market Fund") and Evergreen Treasury Money Mar-
ket Fund ("Treasury Money Market Fund"), known collectively as the "Funds".
Each Fund is a series of Evergreen Money Market Trust (the "Trust"), a Delaware
business trust organized on September 18, 1997. The Trust is an open end man-
agement investment company registered under the Investment Company Act of 1940,
as amended (the "1940 Act").
Each Fund offers Class A and Class Y shares. In addition, the Money Market Fund
offers Class B and Class C shares. Class A shares are sold at net asset value
without a front-end sales charge but pay distribution fees. Class B and Class C
shares pay a higher ongoing distribution fee than Class A. Class B shares are
sold subject to a contingent deferred sales charge that is payable upon redemp-
tion and decreases depending on how long the shares have been held. Class B
shares will automatically convert to Class A shares after seven years. Class C
shares are sold subject to a contingent deferred sales charge payable on shares
redeemed within one year after the month of purchase. Prior to January 16,
1998, Class K shares were offered by the Money Market Fund. On January 16,
1998, Class K shares were converted to Class B shares of the Money Market Fund.
Class Y shares are not subject to any sales charges or distribution fees. Class
Y shares are sold only to investment advisory clients of First Union Corpora-
tion ("First Union") and its affiliates, certain institutional investors or
Class Y shareholders of record of certain other funds managed by First Union
and its affiliates as of December 30, 1994.
The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
A. VALUATION OF SECURITIES
Portfolio securities are valued at amortized cost which approximates market
value. The amortized cost method involves valuing a security at cost on the
date of purchase and thereafter assuming a straight-line amortization of any
discount or premium.
B. REPURCHASE AGREEMENTS
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held by the custodian on the Fund's behalf. Each
Fund monitors the adequacy of the collateral daily and will require the seller
to provide additional collateral in the event the market value of the securi-
ties pledged falls below the carrying value of the repurchase agreement, in-
cluding accrued interest. Each Fund will only enter into repurchase agreements
with banks and other financial institutions which are deemed by the investment
adviser to be creditworthy pursuant to guidelines established by the Board of
Trustees.
C. SECURITIES LENDING
In order to generate income and to offset expenses, the Funds may lend portfo-
lio securities to brokers, dealers and other financial organizations. Each
Fund's 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 securi-
ties 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 ac-
cruing thereon, and a Fund may invest the collateral in portfolio securities,
thereby increasing its return. A Fund will have the right to call any such loan
and obtain the securities loaned at any time on five days' notice. Any gain or
loss in the market price of the loaned securities which occurs during the term
of the loan would affect a Fund and its investors. A Fund may pay reasonable
fees in connection with such loans.
34
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited) (continued)
D. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are accounted for no later than one business day after
the trade date. Realized gains and losses are computed on the identified cost
basis. Interest income is recorded on the accrual basis and includes accretion
of discounts and amortization of premiums.
E. FEDERAL TAXES
The Funds have qualified and intend to continue to qualify as regulated invest-
ment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable in-
come, net tax- exempt income and net capital gains, if any, to their sharehold-
ers. The Funds also intend to avoid any excise tax liability by making the re-
quired distributions under the Code. Accordingly, no provision for federal
taxes is required. To the extent that realized capital gains can be offset by
capital loss carryforwards, it is each Fund's policy not to distribute such
gains.
F. DISTRIBUTIONS
Distributions from net investment income for each Fund are declared daily and
paid monthly. Distributions from net realized capital gains, if any, are paid
at least annually. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles. To the extent these differences are permanent in nature,
such amounts are reclassified within the components of net assets.
G. CLASS ALLOCATIONS
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.
2. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of $0.001 par value shares of beneficial in-
terest authorized. The shares are divided into classes which are designated
Class A and Class Y shares. In addition, the Money Market Fund offers Class B
and Class C shares. Transactions in shares of beneficial interest (valued at
$1.00 per share) of the Funds were as follows:
Money Market Fund
<TABLE>
<CAPTION>
Six Months Five Months Year
Ended Ended Ended
July 31, 1998 January 31, 1998 August 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A
Shares sold.................. 3,204,752,158 2,143,096,717 4,913,816,942
Shares issued in acquisition
of:
CoreFund Cash Reserve....... 78,077,775 0 0
Virtus Money Market Fund.... 47,782,010 0 0
Keystone Liquid Trust....... 0 0 151,861,145
Shares issued in reinvestment
of distributions............ 15,988,231 11,138,399 19,783,898
Shares redeemed.............. (2,433,336,289) (2,047,246,823) (4,037,993,646)
- -------------------------------------------------------------------------------
Net increase................. 913,263,885 106,988,293 1,047,468,339
- -------------------------------------------------------------------------------
CLASS B
Shares sold.................. 138,987,580 33,697,484 22,383,686
Shares issued in acquisition
of:
CoreFund Cash Reserve....... 91,326 0 0
Keystone Liquid Trust....... 0 0 7,303,582
Shares issued in the conver-
sion of Class K shares...... 0 74,271 0
Shares issued in reinvestment
of distributions............ 678,156 314,550 442,030
Shares redeemed.............. (111,327,027) (31,906,139) (17,471,935)
- -------------------------------------------------------------------------------
Net increase................. 28,430,035 2,180,166 12,657,363
- -------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited) (continued)
Money Market Fund (continued)
<TABLE>
<CAPTION>
August 1, 1997
Six Months Five Months (Commencement of
Ended Ended Class Operations) to
July 31, 1998 January 31, 1998 August 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS C
Shares sold............... 12,720,034 5,355,264 1,309,779
Shares issued in acquisi-
tion of Keystone Liquid
Trust.................... 0 0 4,493,120
Shares issued in reinvest-
ment of distributions.... 66,648 51,687 16,706
Shares redeemed........... (7,954,847) (8,464,881) (731,523)
- -------------------------------------------------------------------------------
Net increase (decrease)... 4,831,835 (3,057,930) 5,088,082
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
August 1, 1997
Five Months (Commencement of
Ended Class Operations) to
January 31, 1998 August 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C>
CLASS K
Shares sold............................. 1,258,327 156,690
Shares converted to Class B shares...... (74,271) 0
Shares issued in reinvestment of distri-
butions................................ 1,841 208
Shares redeemed......................... (1,291,309) (51,486)
- -------------------------------------------------------------------------------
Net increase (decrease)................. (105,412) 105,412
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Five Months Year
Ended Ended Ended
July 31, 1998 January 31, 1998 August 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS Y
Shares sold.................. 1,793,308,558 1,383,614,256 4,002,912,413
Shares issued in acquisition
of:
CoreFund Cash Reserve....... 794,989,126 0 0
Virtus Money Market Fund.... 179,784,370 0 0
Shares issued in reinvestment
of distributions............ 7,240,865 6,298,710 18,071,338
Shares redeemed.............. (1,831,302,148) (1,414,565,744) (4,057,487,412)
- -------------------------------------------------------------------------------
Net increase (decrease)...... 944,020,771 (24,652,778) (36,503,661)
- -------------------------------------------------------------------------------
</TABLE>
Municipal Money Market Fund
<TABLE>
<CAPTION>
Six Months Five Months Year
Ended Ended Ended
July 31, 1998 January 31, 1998 August 31, 1997
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A
Shares sold................... 621,367,019 481,665,658 1,491,746,339
Shares issued in acquisition
of CoreFund Tax-Free Re-
serve........................ 17,909,419 0 0
Shares issued in reinvestment
of distributions............. 1,608,605 1,156,331 3,081,550
Shares redeemed............... (537,094,954) (477,834,788) (1,488,596,189)
- ------------------------------------------------------------------------------
Net increase.................. 103,790,089 4,987,201 6,231,700
- ------------------------------------------------------------------------------
CLASS Y
Shares sold................... 649,775,372 452,634,103 1,112,629,458
Shares issued in acquisition
of:
CoreFund Tax-Free Reserve.... 122,945,815 0 0
Virtus Tax Free Money Market
Fund........................ 51,790,982 0 0
Shares issued in reinvestment
of distributions............. 5,157,566 4,146,785 11,706,339
Shares redeemed............... (626,256,057) (448,415,258) (1,363,487,668)
- ------------------------------------------------------------------------------
Net increase (decrease)....... 203,413,678 8,365,630 (239,151,871)
- ------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited) (continued)
Pennsylvania Municipal Money Market Fund
<TABLE>
<CAPTION>
Six Months Five Months Year
Ended Ended Ended
July 31, 1998 January 31, 1998 August 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A
Shares sold.................. 55,444,697 53,496,270 84,061,251
Shares issued in reinvestment
of distributions............ 57,500 60,103 196,984
Shares redeemed.............. (42,937,487) (52,168,806) (70,724,545)
- -------------------------------------------------------------------------------
Net increase................. 12,564,710 1,387,567 13,533,690
- -------------------------------------------------------------------------------
CLASS Y
Shares sold.................. 36,936,094 19,395,074 43,654,046
Shares issued in reinvestment
of distributions............ 261,597 293,299 824,304
Shares redeemed.............. (38,053,960) (18,388,470) (60,819,276)
- -------------------------------------------------------------------------------
Net increase (decrease)...... (856,269) 1,299,903 (16,340,926)
- -------------------------------------------------------------------------------
Treasury Money Market Fund
<CAPTION>
Six Months Five Months Year
Ended Ended Ended
July 31, 1998 January 31, 1998 August 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A
Shares sold.................. 2,782,199,286 1,939,261,773 4,767,671,119
Shares issued in acquisition
of:
CoreFund Treasury Reserve... 22,113,282 0 0
Virtus Treasury Money Market
Fund....................... 85,936,814 0 0
Shares issued in reinvestment
of distributions............ 9,009,938 5,981,255 16,715,941
Shares redeemed.............. (2,536,599,886) (1,813,656,225) (4,907,328,690)
- -------------------------------------------------------------------------------
Net increase (decrease)...... 362,659,434 131,586,803 (122,941,630)
- -------------------------------------------------------------------------------
CLASS Y
Shares sold.................. 798,570,168 572,904,033 2,186,926,840
Shares issued in acquisition
of:
CoreFund Treasury Reserve... 665,722,969 0 0
Virtus Treasury Money Market
Fund....................... 157,990,525 0 0
Shares issued in reinvestment
of distributions............ 1,857,292 1,322,783 2,911,261
Shares redeemed.............. (1,036,026,351) (549,630,132) (2,402,879,746)
- -------------------------------------------------------------------------------
Net increase (decrease)...... 588,114,603 24,596,684 (213,041,645)
- -------------------------------------------------------------------------------
</TABLE>
3. SECURITIES TRANSACTIONS
The Treasury Money Market Fund loaned securities during the six months ended
July 31, 1998 to certain brokers who paid the Fund a negotiated lenders' fee.
These fees are included in interest income. The Fund received cash as collat-
eral against the loaned securities in an amount at least equal to 100% of the
market value of the loaned securities at the inception of each loan. The Fund
monitors the adequacy of the collateral daily and will require the broker to
provide additional collateral in the event the value of the collateral falls
below 100% of the market value of the securities on loan. At July 31, 1998, the
value of securities on loan and the value of collateral amounted to
$344,773,398 and $347,122,544, respectively. During the six months ended July
31, 1998, the Fund earned $143,239 in income from securities lending transac-
tions.
As of January 31, 1998, the Money Market Fund, Municipal Money Market Fund and
the Pennsylvania Municipal Money Market Fund had capital loss carryovers for
federal income tax purposes as follows:
<TABLE>
<CAPTION>
Expiration
------------------------------------------------
2001 2002 2003 2004 2005 2006
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------
Money Market
Fund........... -- -- $517,000 -- $33,000 $82,000
Municipal Money
Market Fund.... $147,000 -- 16,000 $65,000 -- --
Pennsylvania
Municipal Money
Market Fund.... -- $4,000 6,000 -- -- --
</TABLE>
37
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited) (continued)
4. DISTRIBUTION PLANS
Evergreen Distributor, Inc. ("EDI"), a wholly-owned subsidiary of The BISYS
Group Inc. ("BISYS"), serves as the principal underwriter to the Funds. The
Funds have adopted Distribution Plans (the "Plans") for their Class A shares,
Class B shares and Class C shares pursuant to Rule 12b-1 under the 1940 Act.
The Plans permit each Fund to reimburse its principal underwriter for costs re-
lated to selling shares of the Fund and for various other services. These
costs, which consist primarily of commissions and services fees to broker-deal-
ers who sell shares of the Fund, are paid by shareholders through expenses
called "Distribution Plan expenses". Distribution Plan expenses are calculated
daily and paid monthly.
Under the terms of the Plans, the Funds may incur distribution-related and
shareholder servicing expenses which may not exceed 0.75% for Class A shares of
the Money Market Fund and Municipal Money Market Fund and 0.35% for Class A
shares of the Pennsylvania Municipal Money Market and Treasury Money Market
Funds. The payments for Class A shares for each Fund are voluntarily limited to
0.30% of average daily net assets.
The Money Market Fund may incur distribution-related and shareholder servicing
expenses which may not exceed an annual fee of 1.00% of average daily net as-
sets for its Class B and Class C shares.
EDI has entered into a Shareholder Services Agreement with First Union Broker-
age Services ("FUBS"), an affiliate of First Union, whereby EDI will compensate
FUBS for certain services provided to shareholders and/or maintenance of share-
holder accounts relating to Money Market Fund's Class B shares. EDI paid
$13,304 to FUBS during the six months ended July 31, 1998 under the shareholder
services agreement.
During the six months ended July 31, 1998, amounts paid to EDI pursuant to each
Fund's Class A, Class B and Class C Distribution Plans were as follows:
<TABLE>
<CAPTION>
Amount accrued Amount waived
--------------------------- -------------
Class A Class B Class C Class A
<S> <C> <C> <C> <C>
-----------------------------------------
Money Market Fund.. $5,123,945 $185,226 $18,753 --
Municipal Money
Market Fund....... 1,114,717 -- -- --
Pennsylvania
Municipal Money
Market Fund....... 58,438 -- -- $38,959
Treasury Money
Market Fund....... 4,252,135 -- -- --
</TABLE>
Each of the Distribution Plans may be terminated at any time by vote of the In-
dependent Trustees or by vote of a majority of the outstanding voting shares of
the respective class.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
Evergreen Asset Management Corp. ("Evergreen Asset"), a wholly-owned subsidiary
of First Union, is the investment adviser for the Money Market Fund and the Mu-
nicipal Money Market Fund. In return for providing investment management and
administrative services to the Funds, the Funds pay Evergreen Asset a manage-
ment fee that is calculated daily and paid monthly. The management fee is com-
puted by applying percentage rates, starting at 0.50% and declining to 0.45%
per annum as net assets increase, to the average daily net asset value of each
Fund.
The Capital Management Group ("CMG") of First Union National Bank of North Car-
olina ("FUNB"), a subsidiary of First Union, serves as the investment adviser
to the Pennsylvania Municipal Money Market Fund and the Treasury Money Market
Fund. In return for providing investment management and administrative services
to the Funds, the Funds pay CMG a management fee that is calculated daily and
paid monthly. For the Pennsylvania Municipal Money Market Fund, the management
fee is calculated by applying percentage rates, starting at 0.40% and declining
to 0.28% per annum as net assets increase, to the average daily net asset value
of the Pennsylvania Municipal Money Market Fund. CMG is entitled to an annual
fee of 0.35% of the average daily net asset value of the Treasury Money Market
Fund.
During the six months ended July 31, 1998, the Pennsylvania Municipal Money
Market Fund voluntarily waived management fees of $8,316. The investment ad-
viser can modify or discontinue these voluntary waivers and reimbursements at
any time.
38
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited) (continued)
Lieber & Company, an affiliate of First Union, is the investment sub-adviser to
the Money Market and Municipal Money Market Funds. Lieber & Company is reim-
bursed by Evergreen Asset, at no additional expense to the Money Market and Mu-
nicipal Money Market Funds, for its cost of providing sub-investment advisory
services.
Evergreen Investment Services, Inc. ("EIS"), a subsidiary of First Union,
serves as the administrator for each Fund.
The administrator and sub-administrator for the Pennsylvania Municipal Money
Market and Treasury Money Market Funds are entitled to an annual fee based on
the average daily net assets of the funds administered by EIS for which First
Union or its investment advisory subsidiaries are also the investment advisers.
The administration fee is calculated by applying percentage rates, which start
at 0.05% and decline to 0.01% per annum as net assets increase, to the average
daily net asset value of the Pennsylvania Municipal Money Market and Treasury
Money Market Funds. The sub-administration fee is calculated by applying per-
centage rates, which start at 0.01% and decline to 0.004% as net assets in-
crease, to the average daily net asset value of the Pennsylvania Municipal
Money Market and Treasury Money Market Funds.
For the Money Market and Municipal Money Market Funds the administration and
sub-administration fees are paid by Evergreen Asset and are not fund expenses.
During the six months ended July 31, 1998, the Pennsylvania Municipal Money
Market and Treasury Money Market Funds paid or accrued $9,827 and $383,824, re-
spectively, to EIS for certain administrative services.
Evergreen Service Company ("ESC"), a wholly-owned subsidiary of FUNB, serves as
transfer and dividend disbursing agent for the Funds. For certain accounts of
the Money Market and the Treasury Money Market Funds, First Union had been sub-
contracted to maintain shareholder sub-account records, take fund purchase and
redemption orders and answer inquiries. For each account of the Funds, First
Union earned a fee which aggregated as follows for the six months ended July
31, 1998:
<TABLE>
<S> <C>
Money Market Fund........................................ $26,801
Treasury Money Market Fund............................... 63,561
</TABLE>
Officers of the Funds and affiliated Trustees receive no compensation directly
from the Funds. As sub-administrator, BISYS provides the officers of the Funds.
6. EXPENSE OFFSET ARRANGEMENT
The Funds have entered into an expense offset arrangement with their custodian.
The assets deposited with the custodian under this expense offset arrangement
could have been invested in income-producing assets.
7. DEFERRED TRUSTEES' FEES
Each Independent Trustee of the Funds may defer any or all compensation related
to performance of duties as a Trustee. Each Trustee's deferred balances are
allocated to deferral accounts which are included in the accrued expenses for
each Fund. The investment performance of the deferral accounts are based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Trustees' fees and
expenses. Trustees will be paid either in one lump sum or in quarterly
installments for up to ten years at their election, not earlier than either the
year in which the Trustee ceases to be a member of the Board of Trustees or
January 1, 2000.
39
<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS(Unaudited) (continued)
8. ACQUISITION INFORMATION
Effective July 27, 1998, the Funds noted below acquired substantially all the
assets and assumed the liabilities of the following management investment com-
panies through non-taxable exchanges. The net assets acquired, valued at $1 per
share, and class of shares exchanged are as follows:
<TABLE>
<CAPTION>
Class of Value of
Shares Net Assets
Acquired Fund Acquiring Fund Exchanged Acquired
--------------------------------------------------------------------------
<S> <C> <C> <C>
CoreFund Cash
Reserve....... Money Market Fund Class A, B and Y $872,363,752
CoreFund Tax-
Free Reserve.. Municipal Money Market Fund Class A and Y 140,753,563
CoreFund
Treasury
Reserve....... Treasury Money Market Fund Class A, B and Y 687,797,346
</TABLE>
On July 27, 1998, the aggregate net assets of the Money Market, Municipal Money
Market and Treasury Money Market Funds immediately after the acquisitions were
$5,486,371,538, $1,362,080,503 and $4,203,181,670, respectively.
Effective March 2, 1998, the Funds noted below acquired substantially all the
assets and assumed the liabilities of the following management investment com-
panies through non-taxable exchanges. The net assets acquired, valued at $1 per
share, and class of shares exchanged are as follows:
<TABLE>
<CAPTION>
Class of Value of
Shares Net Assets
Acquired Fund Acquiring Fund Exchanged Acquired
----------------------------------------------------------------------
<S> <C> <C> <C>
Virtus Money
Market Fund... Money Market Fund Class A and Y $227,443,405
Virtus Tax-Free
Money Market
Fund.......... Municipal Money Market Fund Class Y 51,784,668
Virtus Treasury
Money Market
Fund.......... Treasury Money Market Fund Class A and Y 243,731,970
</TABLE>
On March 2, 1998, the aggregate net assets of the Money Market, Municipal Money
Market and Treasury Money Market Funds immediately after the acquisitions were
$3,972,178,894, $1,236,483,220 and $3,473,282,398, respectively.
In addition, effective August 1, 1997, the Money Market Fund acquired substan-
tially all the assets and assumed the liabilities of Keystone Liquid Trust in
exchange for Class A, Class B and Class C Shares of the Money Market Fund. The
acquisition was accomplished by a tax-free exchange of the respective shares of
the Money Market Fund for the net assets of the Keystone Liquid Trust. The net
assets acquired, valued at $1 per share, amounted to $163,579,564. The aggre-
gate net assets of the Money Market Fund immediately after the acquisition was
$3,202,817,920.
9. FINANCING AGREEMENT
On December 22, 1997, a financing agreement among all of the Evergreen Funds,
State Street and a group of banks (the "Banks") became effective. Under this
agreement, the Banks provide an unsecured credit facility in the aggregate
amount of $400 million ($275 million committed and $125 million uncommitted).
The credit facility is allocated, under the terms of the financing agreement,
among the Banks. The credit facility is to be accessed by the Funds for tempo-
rary or emergency purposes only and is subject to each Fund's borrowing re-
strictions. Borrowings under this facility bear interest at 0.50% per annum
above the Federal Funds rate. A commitment fee of 0.065% per annum will be in-
curred on the unused portion of the committed facility, which will be allocated
to all Funds. For its assistance in arranging this financing agreement, the
Capital Market Group of First Union was paid a one time arrangement fee of
$27,500. State Street serves as administrative agent for the Banks, and as ad-
ministrative agent is entitled to a fee of $20,000 per annum which is allocated
to all of the Funds.
During the six months ended July 31, 1998, the Funds had no borrowings under
the agreement.
10. CONCENTRATION OF CREDIT RISK
The Pennsylvania Municipal Money Market Fund invests a substantial portion of
its assets in issuers located in a single state, therefore, it may be more af-
fected by economic and political developments in that state or region than
would be a comparable general tax-exempt money market fund.
40
<PAGE>
Evergreen Funds
Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Tax Exempt
Short Intermediate Municipal Fund
High Grade Tax Free Fund
Tax Free Fund
California Tax Free Fund
Connecticut Municipal Bond Fund
Florida Municipal Bond Fund
Florida High Income Municipal Bond Fund
Georgia Municipal Bond Fund
Maryland Municipal Bond Fund
Massachusetts Tax Free Fund
Missouri Tax Free Fund
New Jersey Tax Free Income Fund
New York Tax Free Fund
North Carolina Municipal Bond Fund
Pennsylvania Tax Free Fund
South Carolina Municipal Bond Fund
Virginia Municipal Bond Fund
Income
Capital Preservation and Income Fund
Short Intermediate Bond Fund
Intermediate Term Government Securities Fund
Intermediate Term Bond Fund
U.S. Government Fund
Diversified Bond Fund
Strategic Income Fund
High Yield Bond Fund
Balanced
American Retirement Fund
Balanced Fund
Tax Strategic Foundation Fund
Foundation Fund
Growth & Income
Utility Fund
Income and Growth Fund
Fund for Total Return
Value Fund
Blue Chip Fund
Growth and Income Fund
Small Cap Equity Income Fund
Domestic Growth
Strategic Growth Fund
Stock Selector Fund
Evergreen Fund
Omega Fund
Small Company Growth Fund
Aggressive Growth Fund
Micro Cap Fund
Global International
Global Leaders Fund
International Growth Fund
Global Opportunities Fund
Precious Metals Fund
Emerging Markets Growth Fund
Latin America Fund
Express Line
800.346.3858
Investor Services
800.343.2898
Retirement Plan Services
800.247.4075
www.evergreenfunds.com
37492 543696 RVO 9/98
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BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 19
[LOGO OF EVERGREEN FUNDS APPEARS HERE] HUDSON, MA
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200 Berkeley Street
Boston, MA 02116
