Table of Contents
<TABLE>
<S> <C>
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 ......... 9
Evergreen Pennsylvania Municipal Money
Market Fund ................................ 11
Evergreen Treasury Money Market Fund .......... 12
</TABLE>
<TABLE>
<S> <C>
Schedule of Investments
Evergreen Money Market Fund ................... 13
Evergreen Municipal Money Market Fund ......... 16
Evergreen Pennsylvania Municipal Money
Market Fund ................................ 23
Evergreen Treasury Money Market Fund .......... 26
Statements of Assets and Liabilities ............. 27
Statements of Operations -
Five Months Ended January 31, 1998 and
Year Ended August 31, 1997 ................. 28
Statements of Changes in Net Assets -
Five Months Ended January 31, 1998 ............ 29
Statements of Changes in Net Assets -
Prior Fiscal Periods .......................... 30
Combined Notes to Financial
Statements ....................................... 32
Report of Independent Accountants:
Price Waterhouse LLP ............................. 40
Independent Auditors' Report:
KPMG Peat Marwick LLP ............................ 41
Additional Information ........................... 42
</TABLE>
- --------------------------------------------------------------------------------
Evergreen Funds
Evergreen Funds is one of the nation's fastest growing investment companies
with more than $45 billion in assets under management.
With 85 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 annual 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.
<TABLE>
<S> <C>
Mutual Funds: ARE NOT FDIC INSURED May lose value o Are not bank guaranteed
</TABLE>
Evergreen Funds Distributor, Inc.
<PAGE>
Letter to Shareholders
March 1998
[Photograph appears here of Dear Shareholders:
William M. Ennis]
Money market funds, as a group, have the most
conservative objectives and strategies of all
mutual funds. While shareholders invest in
money market funds for a variety of purposes,
one of the principal uses of these funds is as
a relatively safe haven in times of
William M. Ennis uncertainty. The Evergreen
Managing Director Money Market Funds performed that role well
during this report's fiscal period, which ended on January 31, 1998.1 The funds
provided a stable alternative to stock-oriented investments, which went through
a sometimes-bumpy market. At the same time, declines in interest rates cut into
the dividends that the money funds could provide.
The Market Environment
During the fiscal year, the continued moderate-growth economy, with low
inflation and declining interest rates, generally rewarded fixed-income
investors. Long-term and intermediate-term bond prices tended to rise as
interest rates declined.
For equity investors, the reassuring stock market of the previous months
changed and began showing periodic flashes of volatility. This volatility was
linked to anxieties about the effects of the Asian financial crisis on the
American economy, in general, and on the earnings of multi-national companies
and technology companies, in particular.
The Standard and Poor's 500 Index, the most widely used barometer for the
performance of the U.S. stock market, had a healthy return of 26.9% for the
twelve months ended January 31, 1998, but at a cost of dramatic fluctuations
from month to month.
A Conservative Investment
Market analysts are divided about whether the stock market will resume its
sustained strong upward momentum. In such an uncertain market environment, many
financial advisors and investors believe it makes sense to have at least part
of one's investment portfolio in a relatively safe alternative, such as a money
market fund. The exact allocation should depend on factors such as how soon
investors will need their money, how old they are, and what long-term
objectives they have.
At Evergreen Funds, we are committed to providing a strong array of funds with
complementary objectives and strategies to help investors and their financial
advisors assemble personal portfolios that make sense for their needs and risk
tolerances. We recommend shareholders periodically review their portfolios with
professional investment advisors to make sure their allocations continue to be
in line with their financial plans. We can assist by providing the information
you need about Evergreen Funds. If you have any questions about the funds in
this report or other Evergreen Funds, we encourage you to consult your
financial advisor or call us at 1-800-343-2898.
Sincerely,
/s/ William M. Ennis
William M. Ennis
Managing Director
- ---------
1 The Funds' fiscal year ends were changed from August 31 to January 31. The
next report you receive will be in September for the semiannual period ending
July 31, 1998.
1
<PAGE>
EVERGREEN
Money Market Fund
Fund at a Glance as of January 31, 1998
PORTFOLIO COMPOSITION
----------------------------
(as a percentage of portfolio assets)
[Pie Chart appears below with the following percentages]
Commercial Paper-54.7%
Corp. Note/Bonds-17.3%
Certificates of Deposit-16.4%
Other-6.8%
U.S. Government and Agencies-3.2%
Bankers' Acceptance-1.6%
Portfolio
Management
- --------------------
[Photograph appears here of Kellie Allen with the following caption]
Kellie Allen
Vice President
Capital Management Group
Tenure: December 1, 1997
[Photograph appears here of Bryan K. White with the following caption]
Bryan K. White
Assistant Vice President
Capital Management Group
Tenure: December 1, 1997
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Inception Date 1/4/95 1/26/95 8/1/97 11/2/87
Average Annual Returns*
One year with sales charge N/A -0.73% - N/A
One year w/o sales charge 5.00% 4.27% - 5.32%
3 years 3.40% 3.43% - 5.40%
5 years - - 4.71%
10 years - - - 5.85%
Since Inception 3.44% 3.43% 2.30% 5.88%
Maximum Sales Charge N/A 5.00% 1.00% N/A
CDSC CDSC
7-day annualized yield 4.95% 4.24% 4.24% 5.24%
30-day annualized yield 5.00% 4.29% 4.29% 5.29%
</TABLE>
*Adjusted for maximum applicable sales charge
----------------------------------------
ANNUALIZED 7-DAY YIELD
[Line Graph appears here with the following plot points]
Class A Shares Class B Shares Class C Shares Class Y Shares
2/97 4.87 4.17 5.17
4/97 4.88 4.18 5.2
6/97 4.94 4.24 5.26
8/97 4.91 4.21 4.21 5.21
10/97 4.86 4.16 4.16 5.16
12/97 4.96 4.27 4.27 5.29
1/98 4.95 4.24 4.24 5.24
Total Net Assets: $3,546,681,561
Average Maturity: 57 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 January 31, 1998
PORTFOLIO COMPOSITION
----------------------------
(as a percentage of portfolio assets)
[Pie chart appears here with the following percentages]
Variable Rate Demand Notes-69.9%
Put Bonds-24.3%
Commercial Paper and Bonds-5.3%
Anticipation Notes-0.5%
Portfolio
Management
--------------------
[Photograph appears here of Stephen C. Shachat with the following Caption]
Stephen C. Shachat
Vice President
Evergreen Asset
Management Corp.
Tenure: November 2, 1988
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Class A Class Y
<S> <C> <C>
Inception Date 1/5/95 11/2/88
Average Annual Returns
1 year 3.18% 3.46%
3 years 3.24% 3.54%
5 years - 3.19%
Since Inception 3.24% 4.10%
7-day annualized yield 3.05% 3.35%
30-day annualized yield 3.04% 3.34%
</TABLE>
----------------------------------------
ANNUALIZED 7-DAY YIELD
[Line graph appears here with the following plot points]
Class A Shares Class Y Shares
2/97 2.92 3.22
4/97 3.65 3.96
6/97 3.55 3.85
8/97 2.89 3.19
10/97 3.08 3.39
12/97 3.46 3.77
1/98 3.05 3.35
Total Net Assets: $1,057,811,694
Average Maturity: 54 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 January 31, 1998
PORTFOLIO COMPOSITION
----------------------------
(as a percentage of portfolio assets)
[Pie chart appears here with the following percentages]
Variable Rate Notes-76.0%
Revenue and General
Obligation Bonds-13.7%
General Market Notes-5.8%
Put or Option Tender Bonds-4.5%
Portfolio
Management
--------------------
[Photograph appears here of Diane Beaver with the following caption]
Diane Beaver
Assistant Vice President
Capital Management Group
Tenure: January 22, 1996
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Class A Class Y
<S> <C> <C>
Inception Date 8/22/95 8/15/91
Average Annual Returns
1 year 3.12% 3.23%
3 years - 3.31%
5 years - 2.94%
Since Inception 3.12% 3.00%
7-day annualized yield 2.91% 3.01%
30-day annualized yield 2.94% 3.04%
</TABLE>
----------------------------------------
ANNUALIZED 7-DAY YIELD
Class A Shares Class Y Shares
2/97 3.05 2.98
4/97 3.39 3.49
6/97 3.38 3.48
8/97 3.02 3.12
10/97 3.15 3.25
12/97 3.32 3.43
1/98 2.91 3.01
Total Net Assets: $70,391,852
Average Maturity: 40 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 January 31, 1998
PORTFOLIO COMPOSITION
----------------------------
(as a percentage of portfolio assets)
[Pie chart appears here with the following percentages]
Repurchase Agreements-81.0%
U.S. Treasury Notes-18.6%
Mutual Fund Shares-0.4%
Portfolio
Management
- --------------------
[Phograph of Kellie Allen appears here with the following caption]
Kellie Allen
Vice President
Capital Management Group
Tenure: March 3, 1991
[Photograph of Bryan K. White appears here with the following caption]
Bryan K. White
Assistant Vice President
Capital Management Group
Tenure: December 31, 1997
----------------------------------------
PERFORMANCE AND RETURNS
<TABLE>
<CAPTION>
Class A Class Y
<S> <C> <C>
Inception Date 3/6/91 3/6/91
Average Annual Returns
1 year 4.92% 5.23%
3 years 5.03% 5.34%
5 years 4.35% 4.66%
Since Inception 4.31% 4.61%
7-day annualized yield 4.43% 5.23%
30-day annualized yield 4.89% 5.19%
</TABLE>
----------------------------------------
ANNUALIZED 7-DAY YIELD
[Line graph appears here with the following plot points]
Class A Shares Class Y Shares
2/97 4.68 4.98
4/97 4.79 5.09
6/97 4.82 5.14
8/97 4.81 5.11
10/97 4.92 5.22
12/97 5.01 5.31
1/98 4.43 5.23
Total Net Assets: $3,187,904,612
Average Maturity: 40 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>
Year Ended August 31,
January 4, 1995
Five Months (Commencement of
Ended Class Operations) to
January 31, 1998 (b) 1997 1996 August 31, 1995
<S> <C> <C> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== =========
Net investment income 0.02 0.05 0.05 0.03
Less distributions to shareholders from net investment
income ( 0.02) ( 0.05) ( 0.05) ( 0.03)
---------- --------- --------- ----------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========= ========= ==========
Total return 2.08% 4.95% 5.05% 3.53%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.89%(a) 0.79% 0.75% 0.81%(a)
Total expenses excluding indirectly paid expenses 0.89%(a) 0.79% - -
Total expenses excluding waivers and/or reimbursements 0.89%(a) 0.88% 0.89% 1.02%(a)
Net investment income 4.91%(a) 4.87% 4.86% 5.26%(a)
Net assets end of period (millions) $ 2,910 $ 2,803 $ 1,755 $ 685
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
January 26, 1995
Five Months (Commencement of
Ended Class Operations) to
January 31, 1998 (b) 1997 1996 August 31, 1995
<S> <C> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== =========
Net investment income 0.02 0.04 0.04 0.03
Less distributions to shareholders from net investment
income ( 0.02) ( 0.04) ( 0.04) ( 0.03)
---------- --------- --------- ----------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========= ========= ==========
Total return (c) 1.78% 4.22% 4.31% 2.78%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 1.59%(a) 1.49% 1.45% 1.51%(a)
Total expenses excluding indirectly paid expenses 1.59%(a) 1.49% - -
Total expenses excluding waivers and/or reimbursements 1.59%(a) 1.55% 1.59% 2.39%(a)
Net investment income 4.22%(a) 4.16% 4.18% 4.54%(a)
Net assets end of period (millions) $ 25 $ 23 $ 10 $ 8
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from August 31 to January 31.
(c) Excluding applicable sales charges.
See Combined Notes to Financial Statements.
6
<PAGE>
EVERGREEN
Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
August 1, 1997
Five Months (Commencement of
Ended Class Operations) to
January 31, 1998 (d) August 31, 1997
<S> <C> <C>
CLASS C SHARES
Net asset value beginning of period $ 1.00 $ 1.00
========= ==========
Net investment income 0.02 0.00 (c)
Less distributions to shareholders from net investment income ( 0.02) ( 0.00)(c)
---------- ----------
Net asset value end of period $ 1.00 $ 1.00
========== ==========
Total return (b) 1.78% 0.37%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 1.59%(a) 1.67%(a)
Total expenses excluding indirectly paid expenses 1.59%(a) 1.66%(a)
Total expenses excluding waivers and/or reimbursements 1.59%(a) 1.69%(a)
Net investment income 4.20%(a) 4.42%(a)
Net assets end of period (millions) $ 2 $ 5
</TABLE>
<TABLE>
<CAPTION>
August 1, 1997
Period (Commencement of
Ended Operations) to
January 16, 1998 (e) August 31, 1997
<S> <C> <C>
CLASS K SHARES
Net asset value beginning of period $ 1.00 $ 1.00
========= ==========
Net investment income 0.02 0.00 (c)
Less distributions to shareholders from net investment income ( 0.02) ( 0.00)(c)
---------- ----------
Net asset value end of period $ 1.00 $ 1.00
========== ==========
Total return (b) 2.08% 0.38%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.89%(a) 0.88%(a)
Total expenses excluding indirectly paid expenses 0.89%(a) 0.87%(a)
Total expenses excluding waivers and/or reimbursements 0.89%(a) 0.91%(a)
Net investment income 4.91%(a) 4.90%(a)
Net assets end of period (thousands) $ 0 $ 105
</TABLE>
(a) Annualized.
(b) Excluding applicable sales charges.
(c) Represents an amount less than $0.01 per share.
(d) The Fund changed its fiscal year end from August 31 to January 31.
(e) Class K shares were converted to Class B shares on January 16, 1998.
See Combined Notes to Financial Statements.
7
<PAGE>
EVERGREEN
Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
Ten Months
Five Months Ended
Ended August 31,
January 31, 1998 (c) 1997 1996 1995 1994 (b)
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Net investment income 0.02 0.05 0.05 0.05 0.03
Less distributions to shareholders from net
investment income ( 0.02) ( 0.05) ( 0.05) ( 0.05) ( 0.03)
--------- --------- --------- --------- ---------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total return 2.21% 5.27% 5.36% 5.38% 2.92%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.59%(a) 0.48% 0.45% 0.53% 0.32%(a)
Total expenses excluding indirectly paid
expenses 0.59%(a) 0.48% - - -
Total expenses excluding waivers and/or
reimbursements 0.59%(a) 0.54% 0.59% 0.73% 0.71%(a)
Net investment income 5.22%(a) 5.13% 5.16% 5.26% 3.46%(a)
Net assets end of period (millions) $ 610 $ 635 $ 671 $ 283 $ 273
</TABLE>
<TABLE>
<CAPTION>
Year Ended October 31,
----------------------
November 2, 1987
(Commencement of
Class Operations) to
1993 1992 1991 1990 1989 October 31, 1988
<S> <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
======== ======== ======== ======== ======== ========
Net investment income 0.03 0.04 0.07 0.08 0.09 0.07
Less distributions to shareholders
from net investment income ( 0.03) ( 0.04) ( 0.07) ( 0.08) ( 0.09) ( 0.07)
--------- --------- --------- --------- --------- ---------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total return 3.23% 4.23% 6.73% 8.40% 9.39% 7.37%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.39% 0.36% 0.30% 0.35% 0.38% 0.43%(a)
Total expenses excluding
indirectly paid expenses - - - - - -
Total expenses excluding waivers
and/or reimbursements 0.71% 0.72% 0.70% 0.69% 0.75% 0.93%(a)
Net investment income 3.19% 4.18% 6.53% 8.08% 9.42% 7.26%(a)
Net assets end of period
(millions) $ 299 $ 358 $ 438 $ 458 $ 408 $ 161
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from October 31 to August 31.
(c) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
8
<PAGE>
EVERGREEN
Municipal Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Five Months
Ended
January 31, 1998 (b)
<S> <C>
CLASS A SHARES
Net asset value beginning of period $ 1.00
==========
Net investment income 0.01
Less distributions to shareholders from net investment income ( 0.01)
-----------
Net asset value end of period $ 1.00
===========
Total return 1.34%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.88%(a)
Total expenses excluding indirectly paid expenses 0.88%(a)
Total expenses excluding waivers and reimbursments 0.88%(a)
Net investment income 3.18%(a)
Net assets end of period (millions) $ 672
<CAPTION>
January 5, 1995
(Commencement of
Year Ended August 31, Class Operations) to
1997 1996 August 31, 1995
<S> <C> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 1.00 $ 1.00 $ 1.00
======== ======== ==========
Net investment income 0.03 0.03 0.02
Less distributions to shareholders from net investment income ( 0.03) ( 0.03) ( 0.02)
--------- --------- -----------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00
========= ========= ===========
Total return 3.13% 3.22% 2.24%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.83% 0.79% 0.78%(a)
Total expenses excluding indirectly paid expenses 0.83% - -
Total expenses excluding waivers and reimbursments 0.86% 0.90% 0.90%(a)
Net investment income 3.09% 3.14% 3.28%(a)
Net assets end of period (millions) $ 667 $ 661 $ 555
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
9
<PAGE>
EVERGREEN
Municipal Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Five Months
Ended
January 31, 1998 (b)
<S> <C>
CLASS Y SHARES
Net asset value beginning of period $ 1.00
=========
Net investment income 0.01
Less distributions to shareholders from net investment income ( 0.01)
----------
Net asset value end of period $ 1.00
==========
Total return 1.47%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.58%(a)
Total expenses excluding indirectly paid expenses 0.58%(a)
Total expenses excluding waivers and reimbursments 0.58%(a)
Net investment income 3.46%(a)
Net assets end of period (millions) $ 386
<CAPTION>
Year Ended August 31,
1997 1996 1995 1994
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Net investment income 0.03 0.03 0.04 0.02
Less distributions to shareholders from net investment income ( 0.03) ( 0.03) ( 0.04) ( 0.02)
-------- -------- -------- --------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return 3.44% 3.53% 3.59% 2.50%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.53% 0.49% 0.50% 0.34%
Total expenses excluding indirectly paid expenses 0.53% - - -
Total expenses excluding waivers and reimbursments 0.55% 0.60% 0.63% 0.64%
Net investment income 3.37% 3.44% 3.53% 2.47%
Net assets end of period (millions) $ 378 $ 617 $ 421 $ 402
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
1993 1992 1991 1990
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Net investment income 0.03 0.04 0.05 0.06
Less distributions to shareholders from net investment income ( 0.03) ( 0.04) ( 0.05) ( 0.06)
-------- -------- -------- --------
Net asset value end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return 2.61% 3.73% 5.46% 6.15%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.34% 0.32% 0.28% 0.31%
Total expenses excluding indirectly paid expenses - - - -
Total expenses excluding waivers and reimbursments 0.63% 0.63% 0.66% 0.71%
Net investment income 2.58% 3.72% 5.23% 5.94%
Net assets end of period (millions) $ 401 $ 417 $ 510 $ 311
<CAPTION>
November 2, 1988
(Commencement of
Class Operations) to
August 31, 1989
<S> <C>
CLASS Y SHARES
Net asset value beginning of period $ 1.00
=========
Net investment income 0.05
Less distributions to shareholders from net investment income ( 0.05)
----------
Net asset value end of period $ 1.00
==========
Total return 5.51%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.24%(a)
Total expenses excluding indirectly paid expenses -
Total expenses excluding waivers and reimbursments 0.79%(a)
Net investment income 6.77%(a)
Net assets end of period (millions) $ 109
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from August 31 to January 31.
See Combined Notes to Financial Statements.
10
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Five Months
Ended Year Ended
January 31, 1998 (c) August 31, 1997
<S> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 1.00 $ 1.00
========= ========
Net investment income 0.01 0.03
Less distributions to shareholders from net investment income ( 0.01) ( 0.03)
---------- ---------
Net asset value end of period $ 1.00 $ 1.00
========== =========
Total return 1.34% 3.05%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.61%(a) 0.60%
Total expenses excluding indirectly paid expenses 0.61%(a) 0.60%
Total expenses excluding waivers and/or reimbursements 0.87%(a) 0.89%
Net investment income 3.15%(a) 3.01%
Net assets end of period (millions) $ 37 $ 36
<CAPTION>
August 22, 1995
Six Months (Commencement of
Ended Class Operations) to
August 31, 1996 (b) February 29, 1996
<S> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 1.00 $ 1.00
========= =========
Net investment income 0.01 0.02
Less distributions to shareholders from net investment income ( 0.01) ( 0.02)
---------- ----------
Net asset value end of period $ 1.00 $ 1.00
========== ==========
Total return 1.49% 1.72%
Ratios/Supplemental Data
Ratios to average net assets
Total expenses 0.55%(a) 0.47%(a)
Total expenses excluding indirectly paid expenses - -
Total expenses excluding waivers and/or reimbursements 0.96%(a) 1.08%(a)
Net investment income 2.97%(a) 3.14%(a)
Net assets end of period (millions) $ 22 $ 4
</TABLE>
<TABLE>
<CAPTION>
Five Months Six Months
Ended Year Ended Ended
January 31, 1998 (c) August 31, 1997 August 31, 1996 (b)
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value
beginning of period $ 1.00 $ 1.00 $ 1.00
========= ======== =========
Net investment
income 0.01 0.03 0.01
Less distributions to
shareholders from
net investment
income ( 0.01) ( 0.03) ( 0.01)
---------- --------- ----------
Net asset value end
of period $ 1.00 $ 1.00 $ 1.00
========== ========= ==========
Total return 1.38% 3.15% 1.51%
Ratios/Supplemental
Data
Ratios to average net
assets
Total expenses 0.51%(a) 0.50% 0.50%(a)
Total expenses
excluding
indirectly paid
expenses 0.51%(a) 0.50% -
Total expenses
excluding waivers
and/or
reimbursements 0.58%(a) 0.60% 0.66%(a)
Net investment
income 3.26%(a) 3.10% 2.92%(a)
Net assets end of
period (millions) $ 33 $ 32 $ 48
<CAPTION>
August 15, 1991
(Commencement of
Year Ended February 28, Class Operations) to
1996 1995 1994 1993 February 29, 1992
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ==========
Net investment
income 0.03 0.03 0.02 0.03 0.02
Less distributions to
shareholders from
net investment
income ( 0.03) ( 0.03) ( 0.02) ( 0.03) ( 0.02)
-------- -------- -------- -------- -----------
Net asset value end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ===========
Total return 3.55% 2.81% 2.10% 2.68% 2.20%
Ratios/Supplemental
Data
Ratios to average net
assets
Total expenses 0.37% 0.33% 0.47% 0.35% 0.19%(a)
Total expenses
excluding
indirectly paid
expenses - - - - -
Total expenses
excluding waivers
and/or
reimbursements 0.73% 1.05% 1.26% 1.07% 0.77%(a)
Net investment
income 3.42% 3.09% 2.10% 2.62% 3.90%(a)
Net assets end of
period (millions) $ 83 $ 44 $ 14 $ 16 $ 21
</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.
11
<PAGE>
EVERGREEN
Treasury Money Market Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
Five Months
Ended
January 31, 1998 (c) 1997 1996
<S> <C> <C> <C>
CLASS A SHARES
Net asset value
beginning of period $ 1.00 $ 1.00 $ 1.00
========= ======= =======
Net investment
income 0.02 0.05 0.05
Less distributions to
shareholders from
net investment
income ( 0.02) ( 0.05) ( 0.05)
---------- ------- -------
Net asset value end
of period $ 1.00 $ 1.00 $ 1.00
========== ======= =======
Total return 2.07% 4.82% 4.98%
Ratios/Supplemental
Data
Ratios to average net
assets
Total expenses 0.73%(a) 0.72% 0.69%
Total expenses
excluding
indirectly paid
expenses 0.73%(a) 0.72% -
Total expenses
excluding
waivers and
reimbursments 0.73%(a) 0.72% 0.77%
Net investment
income 4.89%(a) 4.73% 4.76%
Net assets end of
period (millions) $ 2,616 $2,485 $2,608
<CAPTION>
March 6, 1991
Eight Months (Commencement of
Ended Year Ended December 31, Class Operations) to
August 31, 1995 (b) 1994 1993 1992 December 31, 1991
<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 0.03 0.04 0.03 0.03 0.04
Less distributions to
shareholders from
net investment
income ( 0.03) ( 0.04) ( 0.03) ( 0.03) ( 0.04)
----------- -------- -------- -------- -----------
Net asset value end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== ======== ===========
Total return 3.58% 3.75% 2.73% 3.36% 4.46%
Ratios/Supplemental
Data
Ratios to average net
assets
Total expenses 0.63%(a) 0.50% 0.48% 0.48% 0.47%(a)
Total expenses
excluding
indirectly paid
expenses - - - - -
Total expenses
excluding
waivers and
reimbursments 0.79%(a) 0.78% 0.82% 0.82% 1.08%(a)
Net investment
income 5.30%(a) 3.91% 2.70% 3.22% 4.95%(a)
Net assets end of
period (millions) $ 1,178 $ 755 $ 261 $ 209 $ 100
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
Five Months
Ended
January 31, 1998 (c) 1997 1996
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value
beginning of period $ 1.00 $ 1.00 $ 1.00
========= ======= =======
Net investment
income 0.02 0.05 0.05
Less distributions to
shareholders from
net investment
income ( 0.02) ( 0.05) ( 0.05)
---------- -------- --------
Net asset value end
of period $ 1.00 $ 1.00 $ 1.00
========== ======== ========
Total return 2.20% 5.14% 5.29%
Ratios/Supplemental
Data
Ratios to average net
assets
Total expenses 0.43%(a) 0.42% 0.39%
Total expenses
excluding
indirectly paid
expenses 0.43%(a) 0.42% -
Total expenses
excluding
waivers and
reimbursments 0.43%(a) 0.43% 0.47%
Net investment
income 5.19%(a) 5.02% 5.12%
Net assets end of
period (millions) $ 572 $ 547 $ 760
<CAPTION>
March 6, 1991
Eight Months (Commencement of
Ended Year Ended December 31, Class Operations) to
August 31, 1995 (b) 1994 1993 1992 December 31, 1991
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======= ======= ======= ==========
Net investment
income 0.04 0.04 0.03 0.04 0.05
Less distributions to
shareholders from
net investment
income ( 0.04) ( 0.04) ( 0.03) ( 0.04) ( 0.05)
----------- -------- -------- -------- -----------
Net asset value end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== ======== ===========
Total return 3.78% 4.06% 3.04% 3.67% 4.66%
Ratios/Supplemental
Data
Ratios to average net
assets
Total expenses 0.33%(a) 0.20% 0.18% 0.17% 0.20%(a)
Total expenses
excluding
indirectly paid
expenses - - - - -
Total expenses
excluding
waivers and
reimbursments 0.49%(a) 0.48% 0.52% 0.52% 0.52%(a)
Net investment
income 5.60%(a) 3.78% 3.00% 3.61% 5.53%(a)
Net assets end of
period (millions) $ 277 $ 163 $ 366 $ 286 $ 265
</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.
12
<PAGE>
EVERGREEN
Money Market Fund
Schedule of Investments
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
BANKERS' ACCEPTANCES-YANKEE & EURO DOLLAR - 1.6%
$ 10,000,000 Fuji Bank Limited (New York),
5.62%, 2/2/98 ...................... $ 9,998,439
28,650,000 Industrial Bank Of Japan Ltd.,
5.68%, 4/17/98 ..................... 28,310,975
19,700,000 Sanwa Bank Limited,
6.00%, 2/17/98 ..................... 19,647,466
-----------
Total Bankers' Acceptances-Yankee &
Euro Dollar (cost $57,956,880) ..... 57,956,880
-----------
CERTIFICATES OF DEPOSIT - 16.4%
50,000,000 Bank Of Nova Scotia,
5.81%, 8/5/98 ...................... 49,992,722
Bank Of Tokyo Mitsubishi:
50,000,000 6.02%, 5/18/98 ................... 50,001,429
50,000,000 6.18%, 2/5/98 .................... 50,002,533
50,000,000 Banque National de Paris (New York),
5.90%, 11/12/98 .................... 50,000,000
Bayerische Vereinsbank AG (New York):
25,000,000 5.92%, 10/5/98 ................... 25,000,000
25,000,000 6.15%, 5/11/98 ................... 25,000,000
50,000,000 Credit Suisse First Boston, Inc.,
Floating Rate Certificates of Deposit,
5.70%, 12/14/98 .................... 50,000,000
5,000,000 Deutsche Bank AG,
5.91%, 3/17/98 ..................... 4,999,827
National Bank Of Canada (New York):
50,000,000 5.93%, 9/14/ 98 .................. 49,985,273
50,000,000 6.00%, 6/26/98 ................... 50,000,000
25,000,000 Norinchukin Bank (New York),
5.82%, 3/4/98 ...................... 25,000,209
1,000,000 Rabobank Nederland N.V.,
5.99%, 3/24/98 ..................... 999,709
Societe Generale (New York):
25,000,000 5.66%, 2/23/98 ................... 25,000,000
25,000,000 5.97%, 9/15/98 ................... 25,015,021
50,000,000 Standard Chartered Bank,
5.95%, 10/19/98 .................... 49,996,596
50,000,000 Svenska Handlesbanken, Inc.,
5.96%, 8/13/98 ..................... 49,989,892
===========
Total Certificates of Deposit
(cost $580,983,211) ................ 580,983,211
===========
COMMERCIAL PAPER * - 54.8%
Asset-Backed - 0.7%
25,000,000 Standard Credit Card Master Trust I,
5.50%, 2/19/98 ..................... 24,931,250
-----------
Automotive Equipment &
Manufacturing - 1.5%
29,450,000 Daimler-Benz North America Corp.,
5.55%, 4/1/98 ...................... 29,182,128
25,000,000 Hertz Corp.,
5.58%, 2/6/98 ...................... 24,980,625
-----------
54,162,753
-----------
Banks - 2.9%
25,000,000 Bankers Trust Co.,
6.15%, 5/28/98 ..................... 24,999,242
25,000,000 BCI Funding Corp.,
5.71%, 2/11/98 ..................... 24,960,347
30,000,000 NationsBank Corp.,
5.52%, 2/10/98 ..................... 29,958,600
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
COMMERCIAL PAPER * - continued
Banks - continued
$25,000,000 Sumitomo Bank Capital Markets, Inc.,
5.82%, 2/4/98 ...................... $24,987,875
-----------
104,906,064
-----------
Brokers - 1.4%
49,455,000 Goldman Sachs Group,
5.60%, 2/2/98 49,447,307
-----------
Business Equipment & Services - 0.5%
18,500,000 JLUS Funding Corp.,
(LOC: Norinchukin Bank)
6.03%, 2/12/98 ..................... 18,465,914
===========
Diversified Companies - 0.3%
10,000,000 Finova Capital Corp.,
5.70%, 2/2/98 ...................... 9,998,417
-----------
Finance - 42.8%
19,000,000 Amsterdam Funding Corp.,
5.78%, 2/9/98 ...................... 18,975,596
47,460,000 Anchor Funding Corp.,
5.65%, 2/11/98 ..................... 47,385,514
50,000,000 Apex Funding Corp., (LOC: Bank of
Tokyo-Mitsubishi Ltd.),
5.72%, 4/6/98 ...................... 49,491,556
Atlas Funding Corp., (LOC: Dai-Ichi
Kangyo Bank Ltd.):
45,000,000 5.80%, 2/18/98 ................... 44,876,750
30,000,000 5.86%, 2/17/98 ................... 29,921,867
26,275,000 5.90%, 2/11/98 ................... 26,231,938
Banner Receivables Corp.,
(LOC Republic Bank):
30,000,000 5.58%, 2/11/98 ................... 29,953,500
19,040,000 5.70%, 2/5/98 .................... 19,027,941
Broadway Capital Corp.:
25,000,000 5.52%, 2/20/98 ................... 24,927,167
9,200,000 6.35%, 2/2/98 .................... 9,198,377
50,000,000 Budget Funding Corp.,
5.50%, 2/24/98 ..................... 49,824,305
50,000,000 Clipper Receivables Corp.,
5.49%, 2/18/98 ..................... 49,870,375
38,418,000 FP Funding Corp.,
(LOC: The Bank of Tokyo-Mitsubishi
Ltd.),
5.80%, 2/6/98 ...................... 38,387,052
35,000,000 5.58%, 2/19/98 ................... 34,902,350
20,819,000 5.60%, 2/18/98 ................... 20,763,945
35,000,000 5.65%, 2/5/98 .................... 34,978,028
20,064,000 5.77%, 2/3/98 .................... 20,057,569
35,619,000 5.77%, 2/4/98 .................... 35,601,873
GTE Funding, Inc.:
25,000,000 5.55%, 2/3/98 .................... 24,992,291
49,640,000 5.75%, 2/11/98 ................... 49,560,714
20,100,000 Lexington Parker Capital Corp.,
5.48%, 2/6/98 ...................... 20,084,702
35,450,000 Madison Funding, Inc.,
5.55%, 2/19/98 ..................... 35,351,626
50,000,000 Mont Blanc Capital Corp.,
5.51%, 3/5/98 ...................... 49,755,111
</TABLE>
13
<PAGE>
EVERGREEN
Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
COMMERCIAL PAPER * - continued
Finance - continued
$25,682,000 Monte Rosa Capital Corp.,
5.48%, 3/5/98 ..................... $ 25,556,900
Old Line Funding Corp.,
(LOC: Dai-Ichi Kangyo Bank, Ltd.):
25,121,000 5.50%, 2/23/98 .................. 25,036,565
22,289,000 5.52%, 2/17/98 .................. 22,234,318
50,000,000 Orix America, Inc.,
(LOC: Norinchukin Bank)
5.83%, 10/23/98 ................... 50,000,000
Sanwa Business Credit Corp.,
(LOC: Fuji Bank Ltd.):
35,000,000 5.60%, 2/17/98 .................. 34,912,889
30,000,000 5.65%, 2/3/98 ................... 29,990,583
Seven Hills Funding Corp.:
100,000,000 5.67%, 2/2/98 ................... 99,984,250
50,000,000 5.75%, 2/2/98 ................... 49,992,014
30,717,000 Strategic Asset Funding Corp.,
(Series A, Years 1&2)
5.80%, 2/9/98 ..................... 30,677,409
Tri-Lateral Capital (USA), Inc.,
(LOC: Industrial Bank of Japan Ltd.):
50,000,000 5.55%, 2/5/98 ................... 49,969,167
50,000,000 5.70%, 2/2/98 ................... 49,992,083
50,000,000 6.00%, 2/20/98 .................. 49,841,667
35,000,000 WCP Funding, Inc.,
5.47%, 3/17/98 .................... 34,766,006
23,572,000 Windmill Funding Corp.,
5.50%, 2/23/98 .................... 23,492,772
Wood Street Funding Corp.,
(LOC: Royal Bank of Canada):
35,138,000 5.50%, 2/3/98 .................... 35,127,263
25,081,000 5.50%, 2/12/98 .................. 25,038,850
Working Capital Management
Co. L.P.,
75,000,000 5.85%, 2/2/98 .................... 74,987,812
(LOC: Industrial Bank of Japan Ltd.)
42,230,000 5.65%, 2/13/98 .................. 42,150,467
-------------
1,517,871,162
-------------
Industrial Specialty Products &
Services - 1.3%
46,821,000 Thames Asset Global Securitization,
5.48%, 4/20/98 .................... 46,265,078
-------------
Insurance - 1.6%
25,500,000 ING America Insurance HL,
5.73%, 3/4/98 ..................... 25,374,179
30,000,000 Safeco Credit Company, Inc.,
5.70%, 2/9/98 ..................... 29,962,000
-------------
55,336,179
-------------
Other - 0.9%
32,500,000 Fingerhut Owner Trust,
5.48%, 2/20/98 .................... 32,406,003
-------------
Telecommunication Services &
Equipment - 0.9%
30,600,000 GTE Corp.,
5.55%, 2/9/98 ..................... 30,562,260
-------------
Total Commercial Paper
(cost $1,944,352,387) ............. 1,944,352,387
-------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
CORPORATE NOTES - 17.4%
Abbey National PLC, Treasury
Services, MTN:
$25,000,000 5.72%, 1/29/99 .................. $ 25,000,000
25,000,000 6.19%, 4/7/98 ................... 24,997,151
25,000,000 BankBoston,
5.90%, 8/7/98 ..................... 25,000,000
25,000,000 BankBoston, Medium Senior Notes,
5.74%, 4/21/98 .................... 25,000,000
15,000,000 Beneficial Corp. MTN,
6.09%, 5/28/98 .................... 15,016,089
70,000,000 Bravo Trust Series,
5.65%, 10/15/98, (a) .............. 70,000,365
4,500,000 Gesmundo & Associates, Inc.,
(LOC: First of America Bank N.A.)
5.60%, VRDN ....................... 4,500,000
20,000,000 Heller Financial, Inc.,
9.38%, 3/15/98 .................... 20,069,387
8,300,000 Houlihan Brothers,
(LOC: First of America Bank N.A.)
5.60%, VRDN ....................... 8,300,000
5,000,000 KBL Capital Fund Inc.,
(LOC: First of America Bank N.A.)
5.60%, VRDN ....................... 5,000,000
13,260,000 LAM Funding LLC,
(LOC: First of America Bank N.A.)
5.60%, VRDN ....................... 13,260,000
Lehman Brothers Holdings, Inc.:
40,000,000 5.65%, 1/13/99 .................. 40,000,000
1,819,000 5.75%, 11/15/98 ................. 1,814,453
5,000,000 5.97%, 8/10/98 .................. 5,007,494
10,000,000 6.84%, 9/25/98 .................. 10,047,040
19,464,000 (Eff. Yield 5.84%)
0.00%, 5/16/98 .................... 19,136,019
30,000,000 5.74%, 1/13/99 .................. 30,000,000
14,000,000 Manitoba Province (Canada),
9.50%, 9/15/98 .................... 14,291,042
75,000,000 Morgan Guaranty Trust Co. (New York),
5.93%, 8/31/98 .................... 75,008,140
13,000,000 Morgan Stanley Dean Witter
Discover & Co.,
5.69%, 2/12/98 .................... 13,000,530
50,000,000 Morgan Stanley Dean Witter
Discover & Co., FRN,
5.91%, 6/16/98 .................... 50,000,000
5,000,000 Northern Trust Co. Bank, MTN,
5.96%, 6/17/98 .................... 5,000,500
25,000,000 PHH Corp., MTN,
5.69%, 2/25/98 .................... 24,997,622
15,000,000 Salomon, Inc.,
6.16%, 2/13/98 .................... 15,036,090
26,000,000 Salomon, Inc., MTN,
7.76%, 5/11/98 .................... 26,150,402
50,000,000 Sigma Finance Corp., MTN,
6.00%, 9/16/98 .................... 50,000,000
-------------
Total Corporate Notes
(cost $615,632,324) ............... 615,632,324
-------------
FUNDING AGREEMENT - 2.8%
(cost $100,000,000)
100,000,000 General American, Cash Manager Plus,
6.14%, 2/1/98 ..................... 100,000,000
-------------
</TABLE>
14
<PAGE>
EVERGREEN
Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TAXABLE MUNICIPALS - 2.6%
$ 5,900,000 Brittany Acres,
6.22%, VRDN ............. $ 5,900,000
84,500,000 Macon Trust Pooled Variable
Certificates,
5.96%, VRDN (a) ......... 84,500,000
------------
Total Taxable Municipals
(cost $90,400,000) ...... 90,400,000
------------
GOVERNMENT AGENCY BONDS & NOTES - 3.2%
Federal Home Loan Bank:
5,000,000 5.88%, 2/26/98 ......... 5,000,000
30,000,000 6.00%, 12/30/98 ........ 30,000,000
5,000,000 Federal National Mortgage
Assn.,
5.44%, 2/13/98 .......... 5,000,000
75,000,000 Federal National Mortgage
Assn. MTN,
5.60%, 2/4/98 ........... 74,979,051
------------
Total Government Agency
Bonds &
Notes (cost $114,979,051) 114,979,051
------------
REPURCHASE AGREEMENT - 1.4%
(cost $49,533,111)
49,533,111 Dresdner Bank AG,
5.57%, dated 01/30/98, due
2/2/98,
maturity value $49,556,103(b) 49,533,111
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C> <C>
MUTUAL FUND SHARES - 0.0% (cost $1,234,968)
1,234,968 Federated Prime Value Obligation Fund. $ 1,234,968
==============
Total Investments
(cost $3,555,071,932) ..... 100.2% 3,555,071,932
Other Assets and
Liabilities - Net ......... ( 0.2) (8,390,371)
----- --------------
Net Assets - .............. 100.0% $3,546,681,561
===== ==============
</TABLE>
Summary of Abbreviations:
FRN Floating Rate Note
LOC Letter of Credit
MTN Medium Term Note
VRDN Variable Rate Demand Note
(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.
(b) Collateralized by $42,125,000 U.S. Treasury Notes, 6.125%, due 3/31/98,
and $7,105,000 U.S. Treasury Notes, 7.50%, due 10/31/99; total value
including accrued interest $50,525,658.
* Rates listed represent yield to maturity.
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 January 31, 1998.
See Combined Notes to Financial Statements
15
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - 99.5%
Alabama - 5.7%
Alabama IDA-IDRB:
$2,150,000 Air-Dro Cylinders, Inc.,
(LOC: Fleet Bank, N.A.),
3.85%, VRDN ...................... $2,150,000
3,470,000 Automation Technologies Ind. Inc.,
(LOC: Columbus Bank & Trust Co.),
3.85%, VRDN ...................... 3,470,000
Commercial Development Authority
of the City of Birmingham RB:
1,035,000 Avondale Comm. Park, Phase II,
(LOC: Amsouth Bank, N.A.),
3.85%, VRDN ...................... 1,035,000
625,000 Southside Business Ctr.,
(LOC: Amsouth Bank, N.A),
3.85%, VRDN ...................... 625,000
1,500,000 Florence, Alabama IDRB, Die Tech
Inc. Project,
(LOC: Southtrust Bank of Alabama),
3.88%, VRDN ...................... 1,500,000
1,400,000 Guntersville, Alabama IDB-IDRB, KSG
Realty Inc. Project,
(LOC: National Bank of Canada),
3.88%, VRDN ...................... 1,400,000
2,955,000 IDB of Mobile County RB, Sherman
Intl. Corp., Ser. 1994A,
(LOC: Columbus Bank & Trust Co.),
3.85%, VRDN ...................... 2,955,000
14,000,000 Jefferson County, Alabama Sewer
Revenue, Susquehanna Structured
Products,
(LIQ: Chase Manhattan Bank & Ins.
by FGIC),
3.75%, VRDN ...................... 14,000,000
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
18,790,000 Mobile, Alabama PCRB, International
Paper Company Project, ARB,
(Gtd. by International Paper Co.),
3.85%, 4/15/98 ................... 18,790,000
5,200,000 Phenix City, Alabama Environmental
IDRB, Mead Coated Board Project,
(LOC: Sumitomo Bank),
4.00%, VRDN ...................... 5,200,000
==========
60,185,000
==========
Alaska - 1.8%
18,820,000 Alaska State Dept. Admin. COP,
Puttable Floating Option Tax Exempt
Receipts, Ser. PT-94,
(LIQ: Cr. Suisse & Ins. by Capital
Mkt. Assurance),
3.75%, VRDN ...................... 18,820,000
==========
Arizona - 0.0%
200,000 Maricopa County IDA, McLane Co.,
Inc., Ser. 1984,
(LOC: Wachovia Bank of Georgia),
3.95%, VRDN ...................... 200,000
==========
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Arkansas - 0.3%
$3,655,000 Magnolia, Arkansas IDRB, American
Fuel Cell Project,
(LOC: Credit Comml de France),
4.10%, VRDN ...................... $3,655,000
==========
California - 8.8%
6,600,000 California State RAN, 1997 Trust
Receipts Ser. 23,
(LOC: Bank of New York),
4.00%, VRDN ...................... 6,600,000
4,250,000 City of Paramount MHRB, Century
Place Apt., Ser. 1989A,
(LOC: Heller Financial Inc.),
4.05%, VRDN ...................... 4,250,000
1,900,000 Glenn County IDA-PCRB, Land
O'Lakes, Inc., Ser. 1995,
(LOC: Sanwa Bank, Ltd.),
4.40%, VRDN ...................... 1,900,000
5,000,000 Los Angeles, California MHRB,
Channel Gateway Apartments,
Ser. 89B,
(LOC: Fuji Bank Ltd.),
4.20%, VRDN ...................... 5,000,000
6,440,000 Los Angeles, California Municipal
Improvement Corp. COP, Equipment
and Real Property Acquisition
Program, ARB,
4.50%, 10/1/98 ................... 6,460,564
1,100,000 Ontario, California, IDA-RB,
Erenberg Brothers Project
Ser.1988A, Issue I,
(LOC: Tokai Bank, Ltd.),
4.50%, VRDN ...................... 1,100,000
Orange County, California, Apartment
Development, ARB:
(LOC: Tokai Bank Ltd.):
5,000,000 Villas Aliento Project, Issue R,
4.35%, 8/15/98 ................... 5,000,000
12,200,000 Villas De La Paz, Issue O,
4.35%, 8/15/98 ................... 12,200,000
Pitney Bowes Credit Corp. Leasetops
Trusts:
24,424,645 Bart Telesystem Lease,
(LOC: ABN-Amro Bank, N.V.),
3.70%, VRDN (a) .................. 24,424,645
12,930,099 San Diego Regl. Comm. Sys.
Lease, Ser. 1996A,
(LOC: Landesbank Hessen &
Gtd. by Pitney Bowes),
3.70%, VRDN (a) .................. 12,930,099
4,400,000 Sacramento County, California MHRB,
River Terrace Apts. Project, Ser. C,
(LOC: Dai-Ichi Kangyo Bank),
4.15%, VRDN ...................... 4,400,000
9,300,000 San Diego, California Public
Facilities Financing, Puttable
Floating Option Tax Exempt Receipts
Part 1010,
(LIQ: Merrill Lynch & Ins. by FGIC),
3.55%, VRDN ...................... 9,300,000
==========
93,565,308
==========
</TABLE>
16
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Colorado - 1.2%
$2,500,000 Adams County IDRB, Yellow Freight
Systems, Inc., Ser. 1983,
(LOC: Union Bank of Switzerland),
3.95%, VRDN ...................... $2,500,000
4,760,000 Colorado HFA RB MERLOTS, Ser. C,
ARB,
(LOC: CoreStates Bank, N.A.),
4.10%, 2/1/98 .................... 4,760,000
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
2,680,000 Parkview Metropolitan District,
Arapahoe County GO, Ser. 1993,
(LOC: Colorado National Bank),
3.75%, VRDN ...................... 2,680,000
==========
12,840,000
==========
Delaware - 0.5%
3,000,000 Delaware EDA-IDRB, Arlon, Inc.,
Ser. 1989,
(LOC: Bank of America, IL),
3.90%, VRDN ...................... 3,000,000
380,000 Delaware Housing Authority RB
MERLOTS, Ser. G, ARB,
(LIQ: CoreStates Bank & Ins. by FSA)
4.15%, 3/1/98 (a) ................ 380,000
2,480,000 New Castle County EDRB, Toys R Us
Inc. Project,
(LOC: Bankers Trust Co., NY),
3.60%, VRDN ...................... 2,480,000
==========
5,860,000
==========
District of Columbia - 1.0%
5,120,000 District of Columbia GO RB,
Puttable Floating Option Tax Exempt
Receipts, Ser. PA-64, Ser. 1993C,
(LIQ: Merrill Lynch & Ins. by FGIC),
3.80%, VRDN ...................... 5,120,000
500,000 District of Columbia GO, Series A,
(Ins. by AMBAC)
7.25%, 6/1/98 .................... 505,187
4,500,000 District of Columbia HFA SFHRB,
Ser. 97, ARB,
(COLL: GNMA),
4.05%, 9/1/98 .................... 4,500,000
==========
10,125,187
==========
Florida - 1.9%
6,835,000 Orange County Florida Health
Facilities Authority MSTR, SAK 11,
(LIQ: Credit Suisse First Boston &
Ins. by AMBAC),
3.75%, VRDN ...................... 6,835,000
2,800,000 Orange County 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 School Board,
MSTR Ser. 1996B,
(LIQ: Norwest Bank, MN & Ins. by
AMBAC),
3.70%, VRDN ...................... 5,875,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Florida - continued
$ 955,000 Palm Beach Housing Project RB,
Meridian Housing, Ser. 1985,
(LOC: Union Bank of California,
N.A.),
4.25%, VRDN ...................... $ 955,000
3,900,000 Tampa Florida Capital Improvement
Program RB, Puttable Floating Trust
Receipts PT-96,
(LOC: Merrill Lynch),
3.75%, VRDN ...................... 3,900,000
==========
20,365,000
==========
Georgia - 3.7%
1,000,000 Albany Dougherty County Hospital
RB, Merck & Co.Project, Ser. 1984A,
(Gtd. by Merck & Co.),
3.95%, VRDN ...................... 1,000,000
5,000,000 Albany Dougherty Payroll, Ser.
1982A, Merck & Co. Project,
(Gtd. by Merck & Co.),
3.70%, VRDN ...................... 5,000,000
1,000,000 Cherokee County, Georgia EDA IDR,
Piolax Corporation Project,
(LOC: Industrial Bank of Japan),
4.00%, VRDN ...................... 1,000,000
2,200,000 Columbus Housing Authority MHRB
RRB, Quail Ridge Project, Ser. 1988,
(LOC: Columbus Bank & Trust Co.),
3.90%, VRDN ...................... 2,200,000
10,980,000 De Kalb County, Georgia MHRB, Stone
Mountains Apts. Puttable Floating
Option Tax Exempt Receipts, PA-213,
(LOC: Merrill Lynch),
3.75%, VRDN ...................... 10,980,000
Georgia Municipal Electric
Authority Power Revenue MSTR:
(LIQ: Credit Suisse First Boston &
Ins. by MBIA):
8,000,000 SAK14,
3.75%, VRDN ...................... 8,000,000
5,040,000 SAK15,
3.75%, VRDN ...................... 5,040,000
6,000,000 Polk County Development Authority
RB, Kimoto Tech. Inc., Ser. 1985,
(LOC: Indl. Bank of Japan, Ltd.),
3.95%, VRDN ...................... 6,000,000
==========
39,220,000
==========
Illinois - 16.4%
13,311,000 ABN Amro Chicago Corporation
Leasetop COP, Master Trust I,
Ser. 1997-1,
(LOC: LaSalle National Bank),
3.70%, VRDN (a) .................. 13,311,000
2,820,000 Arlington Heights, Illinois MHRB
RRB, Dunton Tower Apts. Project,
(LOC: Heller Financial, Inc.),
4.30%, VRDN ...................... 2,820,000
1,700,000 Chicago IDR, Federal Marine
Terminal Project,
(LOC: Canadian Imperial Bank of
Commerce),
3.95%, VRDN ...................... 1,700,000
</TABLE>
17
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Illinois - continued
$25,000,000 Chicago, Illinois Sales Tax
Revenue, Susquehanna Structured
Products, MSTR SSP-9,
(LIQ: Chase Manhattan Bank & Ins.
by FGIC),
3.75%, VRDN ........................... $25,000,000
9,595,000 City of Aurora MHRB, Fox Valley
Village Apts., Ser. 1993,
(LOC: Sumitomo Bank, Ltd.),
4.25%, VRDN ........................... 9,595,000
2,900,000 City of Chicago GO, MSTR SAK-13,
Ser. 1995A-2,
(LIQ: Credit Suisse First Boston &
Ins. by AMBAC),
3.75%, VRDN ........................... 2,900,000
1,000,000 City of Peoria IDR, PMP
Fermentation Products, Inc.,
(LOC: Sanwa Bank, Ltd.),
4.15%, VRDN ........................... 1,000,000
6,500,000 City of Peoria 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 IDRB, Acme
Printing Inc., Ser. 1989,
(LOC: Bank of Tokyo-Mitsubishi, Ltd.),
3.98%, VRDN ........................... 5,900,000
3,500,000 Illinois Development Finance
Authority EDRB, MTI Corp.,
(LOC: Indl. Bank of Japan, Ltd.),
4.20%, VRDN ........................... 3,500,000
3,500,000 Illinois Development Finance
Limited Obligation Revenue, Decatur
Mental Health Center Project,
(LOC: First Bank of America,
Illinois),
3.70%, VRDN ........................... 3,500,000
Oakbrook Terrace, Illinois MHRB,
Renaissance Project, ARB:
(LOC: Trinity Funding Corp. and 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
1,850,000 Skokie, Illinois EDRB, Skokie
Fashion Square Project,
(LOC: LaSalle National Bank),
3.83%, VRDN ........................... 1,850,000
16,640,000 Village of Hazel Crest Retirement
Center RB, Waterford Estates
Project, Ser. 1992A,
(LOC: Sumitomo Bank Ltd.),
4.35%, VRDN ........................... 16,640,000
15,210,000 Village of Vernon Hills MHRB RRB,
Hawthorn Lakes Project, Ser. 1991,
(LIQ: Fuji Bank, Ltd. & Ins. by FSA),
4.35%, VRDN ........................... 15,210,000
===========
173,426,000
===========
Indiana - 1.2%
6,500,000 Avilla, Indiana EDRB, Pent
Assemblies Inc., Ser. 1996, ARB,
(LOC: Fort Wayne National Bank),
4.35%, VRDN ........................... 6,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Indiana - continued
$ 2,180,000 City of Fort Wayne PCRB, General
Motors Corporation,
(Gtd. by General Motors Corporation),
3.90%, 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
775,000 Decatur Industrial EDA-RB,
Silberline Mfg. Co. Inc.,
(LOC: CoreStates Bank N.A.),
4.20%, 6/1/98 ......................... 775,000
1,000,000 Muncie, Indiana Delaware County
COP, Delaware Building Corporation,
(Ins. by AMBAC),
8.10%, 2/1/98 ......................... 1,000,000
===========
12,455,000
===========
Iowa - 1.1%
2,800,000 Algona, Iowa IDR, George A. Hormel
and Co.,
(LOC: Sumitomo Bank Ltd.),
4.00%, VRDN ........................... 2,800,000
City of Council Bluffs RB Catholic
Healthcare Corp. (LOC: Fuji Bank,
Ltd.), :
6,810,000 Mercy Hospital Project, Ser. 1985,
3.90%, 4/1/98 ......................... 6,810,000
2,170,000 Mercy Medical Project,
3.90%, 4/1/98 ......................... 2,170,000
===========
11,780,000
===========
Kansas - 0.4%
1,800,000 City of Praire Village MHRB, J.C.
Nichol's Co., Ser. 1985,
(Gtd. by Principal Mutual Life Ins. Co.),
4.15%, VRDN ........................... 1,800,000
City of Salina, Kansas, RB, Salina
Central Mall Limited:
(LOC: Boatmen's Bank of St. Louis):
1,105,000 Dillard's Project,
3.70%, VRDN ........................... 1,105,000
1,200,000 Penney's Project,
3.70%, VRDN ........................... 1,200,000
===========
4,105,000
===========
Kentucky - 1.9%
20,300,000 County of Ohio PCRB, Big Rivers
Electric Corp., Ser. 1985,
(LOC: Chemical Bank),
4.20%, VRDN ........................... 20,300,000
===========
Louisiana - 1.6%
3,400,000 Bastrop, Louisiana, IDB-PCRB,
International Paper Project, ARB,
(Gtd. by International Paper),
3.85%, 4/15/98 ........................ 3,400,000
3,060,000 IDB of the Parish of Bossier, Inc.,
H. J. Wilson Co., Inc., Ser. 1982,
ARB,
(LOC: Canadian Imperial Bank of
Commerce),
4.05%, 12/1/98 ........................ 3,060,000
</TABLE>
18
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Louisiana - continued
$10,000,000 Natchitoches Parish Louisiana MHRB,
Trust Joist Corp.,
(LOC: Bank of Tokyo-Mitsubishi),
4.00%, VRDN .......................... $10,000,000
===========
16,460,000
===========
Maine - 0.3%
3,685,000 Jay Maine Solid Waste Disposal RB,
International Paper Project, ARB,
(Gtd. by International Paper),
4.20%, 6/1/98 ........................ 3,685,000
===========
Maryland - 0.8%
8,271,000 Howard County, Maryland MHRB,
Broken Land Parkway Project,
Puttable Floating Option Tax Exempt
Receipts, PA-212,
(LOC: Merrill Lynch),
3.75%, VRDN .......................... 8,271,000
===========
Massachusetts - 0.2%
MIFA,
(LOC: BankBoston):
400,000 Copley Pharmaceutical, Inc. Project,
4.50%, VRDN .......................... 400,000
590,000 Kryptonite Issue, Ser. 1990,
4.25%, 9/1/98 ........................ 590,152
MIFA IDRB:
415,000 Leavy Realty & Jencoat Metal Inc.
Project, Ser. 1994,
(LOC: BankBoston),
4.25%, VRDN .......................... 415,000
700,000 Portland Causeway Realty, Ser. 1988,
(LOC: Citibank, N.A.),
4.25%, VRDN .......................... 700,000
===========
2,105,152
===========
Michigan - 0.9%
6,000,000 Michigan State Jobs Development
Authority PCRB, Mazda Motor Mfg.
USA Corp.,
(LOC: Sumitomo Bank),
4.08%, VRDN .......................... 6,000,000
3,985,000 Sault Ste. Marie Tribe Building
Authority RB, Ser. 1996A, ARB,
(LOC: First of America Bank, N.A.),
4.33%, 6/1/98 ........................ 3,985,000
===========
9,985,000
===========
Minnesota - 3.7%
2,800,000 City of Robbinsdale IDRB, Unicare
Homes, Inc., Ser. 1984,
(LOC: Banque Paribas),
3.75%, VRDN .......................... 2,800,000
4,420,000 Dakota & Washington Counties Hsg. &
Redev. Auth., ARB, MERLOTS Ser. J,
(LOC: CoreStates Bank, N.A.),
4.15%, 3/1/98 ........................ 4,420,000
4,220,000 Minneapolis GO, Sports Arena, MSTR
Ser. 1996A,
(LIQ: Norwest Bank, MN),
3.70%, VRDN .......................... 4,220,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Minnesota - continued
$ 765,000 Minneapolis/ Saint Paul Hsg. Fin. Board
SFHRB, Minneapolis/Saint Paul
Family Hsg. Prog., Phase VI, ARB,
(COLL: GNMA),
4.00%, 2/1/98 ........................ $ 765,000
1,510,000 Richfield Independent School Dist. #280,
MSTR Ser. 1994P,
(LIQ: First Bank, N.A. & Ins. by FGIC),
3.70%, VRDN .......................... 1,510,000
750,000 Southern Minnesota Muni. Pwr. Agy.
Supply System, MSTR Ser. 1996I,
(LIQ: Norwest Bank, MN & Ins. by
FGIC),
3.70%, VRDN .......................... 750,000
1,000,000 Spring Lake Park I.S.D. No. 16, MSTR
Ser. 1996G,
(LIQ: Norwest Bank, MN & Ins. by
MBIA),
3.70%, VRDN .......................... 1,000,000
24,200,000 St. Louis Park Healthcare Facility RB
Floating Trust Certificates,
(LIQ: Norwest Bank, MN & Ins. by
AMBAC),
3.70%, VRDN .......................... 24,200,000
===========
39,665,000
===========
Missouri - 0.4%
4,240,000 Missouri State Development Finance
Board IDRB, Cook Composites &
Polymers Co., Ser. 1994,
(LOC: Societe Generale),
3.90%, VRDN .......................... 4,240,000
===========
Montana - 0.1%
660,000 Butte Silver Bow City & County, Copper
City Association, Ser. 1988,
(LOC: Bank of America, N.T. & S.A.),
3.80%, VRDN .......................... 660,000
===========
New Jersey - 0.5%
5,000,000 Essex County, New Jersey BAN, Ser. A,
ARB,
4.25%, 8/7/98 ........................ 5,007,634
===========
New Mexico - 0.5%
4,855,000 County of Sandoval MHRB, Arrowhead
Ridge Apts., Ser. 1996, ARB,
(Ins. by FGIC),
4.65%, 3/2/98 ........................ 4,855,000
===========
New York - 10.3%
Battery Park City Hsg. Auth. RB, Marina
Towers Tender Corp.:
(LOC: Sumitomo Bank Ltd.):
8,560,000 Ser. A,
4.55%, VRDN .......................... 8,560,000
7,765,000 Ser. B,
4.55%, VRDN .......................... 7,765,000
</TABLE>
19
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
New York - continued
$4,000,000 New York State Medical Care Facilities
Finance Agency RB, Floating Rate
Receipts Part 100,
(LIQ: Credit Suisse First Boston &
Ins. by FHA),
3.95%, VRDN ........................... $ 4,000,000
6,500,000 New York State Thruway Auth., Local
Highway and Bridge Service
Contract, Puttable Floating Option Tax
Exempt Receipts, PA-172,
(LOC: Merrill Lynch),
3.75%, VRDN (a) ....................... 6,500,000
10,400,000 New York State Thruway Auth., RB,
MSTR SG-119,
(LOC: Societe Generale),
4.00%, VRDN ........................... 10,400,000
New York, New York, GO, Puttable
Floating Option Tax Exempt Receipts,
(LOC: Merrill Lynch):
12,495,000 PA-147 Ser. L,
3.75%, VRDN ........................... 12,495,000
20,105,000 PA-148 Ser. L,
3.75%, VRDN ........................... 20,105,000
3,395,000 PA-228 Ser 1998 C,
3.80%, VRDN ........................... 3,395,000
10,200,000 New York, New York, GO RAN, 1997
Trust Receipts, Ser. 26,
(LOC: Bank of New York),
3.80%, VRDN ........................... 10,200,000
25,000,000 Onondaga County Solid Waste
Disposal, Solvay Paperboard II L.P.,
(LOC: Bear Stearns Capital Markets),
4.10%, 11/1/98 ........................ 25,000,000
===========
108,420,000
===========
North Carolina - 3.8%
4,000,000 Cabarrus County, Indl. Fac. PCRB, Oiles
America Corp., Ser. 1989,
(LOC: Indl. Bank of Japan, Ltd., NY),
4.15%, VRDN ........................... 4,000,000
2,600,000 Halifax County, Indl. Fac.,
Westmoreland Project,
(LOC: Credit Suisse First Boston),
3.80%, VRDN ........................... 2,600,000
33,250,000 Wake County, Indl. Fac. PCRB, Carolina
Power & Light Co.,Ser. 85C,
(LOC: Sumitomo Bank),
4.05%, VRDN ........................... 33,250,000
===========
39,850,000
===========
Ohio - 0.3%
3,000,000 Ohio Hsg. Fin. Agy. MHRB, 10
Wilmington Place Project, Ser. 1991B,
(LIQ: Fuji Bank, Ltd. & Ins. by FSA),
4.35%, VRDN ........................... 3,000,000
===========
Oregon - 0.4%
Oregon EDRB Series CLVI, ARB,
(LOC: UnionBank of California, N.A.):
1,830,000 Pacific Coast Seafoods Co.,
3.95%, VRDN ........................... 1,830,000
1,130,000 Pacific Oyster Co.,
3.95%, VRDN ........................... 1,130,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Oregon - continued
$1,200,000 Oregon State EDRB, Georgia Pacific
Corp. 95A Project,
(LOC: Deutsche
Genossenschaftsbank),
3.85%, VRDN ........................... $ 1,200,000
===========
4,160,000
===========
Pennsylvania - 1.6%
2,300,000 Chartiers Valley, Pennsylvania Industrial
& Commercial Development
Authority, William Penn Place Project,
(LOC: CoreStates Bank, N.A.),
4.00%, VRDN ........................... 2,300,000
10,000,000 City of Philadelphia Water & Waste
Water RB, MSTR #11, ARB,
(LIQ: Bear Stearns & Ins. by FGIC),
4.15%, 6/4/98 (a) ..................... 10,000,000
500,000 Elk County IDA-IDRB, Stackpole Corp.
Project, Ser. 1989,
(LOC: Fleet Bank, N.A.),
4.25%, VRDN ........................... 500,000
650,000 Lawrence County, Pennsylvania
IDA-PCRB, Calgon Carbon, Ser. 1983A,
(Gtd. by Merck & Co.),
3.95%, VRDN ........................... 650,000
3,065,000 Westmoreland County, IDA-IDRB,
White Consolidated Indl., Inc., ARB,
(LOC: Bank of Nova Scotia),
4.18%, 6/1/98 ......................... 3,065,000
===========
16,515,000
===========
South Carolina - 2.7%
16,030,000 Georgetown County PCRB,
International Paper Project, ARB,
(Gtd. by International Paper),
4.00%, 9/1/98 ......................... 16,030,000
8,770,000 Lexington Combined Water and Sewer
Systems RB, Puttable Floating Option
Tax Exempt Receipts, PA-177,
(LIQ: Merrill Lynch & Ins. by Asset
Guaranty Corp.),
3.75%, VRDN ........................... 8,770,000
South Carolina Jobs EDA-EDRB:
550,000 Ridge Pallets Inc., Ser. B,
(LOC: Credit Coml. de France),
4.00%, VRDN ........................... 550,000
2,700,000 Roller Bearing Co., Ser. 1994A,
(LOC: Heller Financial Inc.),
4.33%, VRDN ........................... 2,700,000
750,000 Tuttle Co., Inc., Ser. A,
(LOC: NationsBank N.A.),
4.00%, VRDN ........................... 750,000
===========
28,800,000
===========
South Dakota - 0.5%
5,175,000 City of Rapid EDRB, Civic Center Assoc.,
(LOC: Citibank N.A.),
3.88%, VRDN ........................... 5,175,000
===========
Tennessee - 5.1%
2,500,000 Bristol IDB, Robinette Company,
(LOC: First American National Bank),
3.90%, VRDN ........................... 2,500,000
</TABLE>
20
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Tennessee - continued
$3,200,000 IDB of the City Chattanooga RRB,
Radisson Read House, Ser. 1995,
(LOC: Heller Financial Inc.),
4.30%, VRDN ........................ $3,200,000
4,400,000 Jackson, TN, Health and Educational
Housing Facility, Union University
Project,
(LOC: First American National Bank),
3.75%, VRDN ........................ 4,400,000
5,000,000 Maryville, TN, IDB of Education, RB,
Maryville College,
(LOC: First American National Bank),
3.75%, VRDN ........................ 5,000,000
Metro Govt. of Nashville and Davidson
County IDB:
8,995,000 Beechwood Terrace Apts. Project,
Ser. 1989,
(LOC: Sumitomo Bank Ltd.),
4.65%, VRDN ........................ 8,995,000
700,000 Wellington IV Assn. Project, RRB,
(LOC: First Bank, N.A.),
3.95%, VRDN ........................ 700,000
6,710,000 Metro Govt. of Nashville and Davidson
County IDB MHRB, Graybrook Apts.,
Ser. 1989,
(LOC: Sumitomo Bank Ltd.),
4.65%, VRDN ........................ 6,710,000
5,000,000 Morristown, TN, IDB-IDRB, Camvac
International Inc., Ser. 1983,
(LOC: ABN Amro Bank),
3.83%, VRDN ........................ 5,000,000
700,000 Shelby County, TN, Health Educational
and Housing Facility Board MHRB,
99 Tower Place Project,
(LOC: Boatmen's Bank),
4.10%, VRDN ........................ 700,000
9,285,000 Smyrna Housing Assn. MHRB, Imperial
Gardens Apts. Project, Ser. 1989,
(LOC: Sumitomo Bank Ltd.),
4.65%, VRDN ........................ 9,285,000
8,000,000 Wilson County, TN, IDRB, Knight
Leasing Company,
(LOC: First American National Bank),
3.90%, VRDN ........................ 8,000,000
==========
54,490,000
==========
Texas - 3.3%
12,500,000 Houston, TX, Water and Sewer Systems
RB MSTR, Susquehanna Structured
Products, SSP- 11,
(LIQ: Chase Manhattan Bank & Ins.
by FGIC),
3.75%, VRDN ........................ 12,500,000
6,805,000 NCNB Pooled Tax-Exempt Trust COP,
Ser. 1990B,
(LOC: NationsBank of Texas),
4.25%, VRDN ........................ 6,805,000
4,380,000 Tarrant County Housing Finance Corp.
MHRB RRB, Lincoln Meadows
Project, Ser. 1988, ARB,
(Surety Bond: Continental Casualty
Corp.),
4.10%, 12/1/98 ..................... 4,380,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Texas - continued
Texas State Public Finance Authority
Building RB, General Services
Commission Project
(LIQ: Citibank, N.A. & Ins. by AMBAC):
$4,595,000 PCRB-2,
3.68%, VRDN ........................ $4,595,000
6,535,000 PCRB-3,
3.68%, VRDN ........................ 6,535,000
==========
34,815,000
==========
Utah - 4.4%
2,600,000 Summitt County IDRB, Hornes' Kimball
Junction L.P., Ser. 1985,
(LOC: West One Bank, Idaho),
3.95%, VRDN ........................ 2,600,000
Tooele County Hazardous Waste
Treatment RB, Union Pacific Corp.,
Ser. A, TECP,
(Gtd. by Union Pacific Corp.):
10,000,000 4.25%, 2/24/98 .................... 10,000,000
7,500,000 4.25%, 2/25/98 .................... 7,500,000
10,000,000 4.25%, 2/26/98 .................... 10,000,000
10,000,000 4.25%, 4/28/98 .................... 10,000,000
6,290,000 4.30%, 2/23/98 .................... 6,290,000
==========
46,390,000
==========
Virginia - 1.1%
2,500,000 Henrico County IDA-RB, San -J,
(LOC: Tokai Bank, Ltd.),
4.20%, VRDN ........................ 2,500,000
7,700,000 Richmond, VA Housing Authority
MHRB, Puttable Floating Option Tax
Exempt Receipts, PA-214,
(LOC: Merrill Lynch),
3.75%, VRDN ........................ 7,700,000
1,000,000 Rockingham County IDA-PCRB,
Merck & Co. Project, 1982 Ser. A,
(Gtd. by Merck & Co.)
3.70%, VRDN ........................ 1,000,000
==========
11,200,000
==========
Washington - 1.2%
2,200,000 Klickitat County Public Corp. RB,
Mercer Ranches, Ser. 1996,
(LOC: U.S. Bank of Washington, N.A.),
3.85%, VRDN ........................ 2,200,000
2,000,000 Pierce County Economic Development
Corp., McFarland Cascade,
(LOC: U.S. Bank of Washington, N.A.),
3.85%, VRDN ........................ 2,000,000
Pilchuck Public Development Corp. IDRB
(LOC: U.S. Bank of Washington, N.A.):
1,318,000 Canyon Park Assn., Lot 12,
3.70%, VRDN ........................ 1,318,000
966,000 Hillside Assn., Lot 6,
3.70%, VRDN ........................ 966,000
1,218,000 Omni Assn., Lot 7,
3.70%, VRDN ........................ 1,218,000
2,015,000 Washington State Community
Economic Revitalization Bonds,
(LOC: Industrial Bank of Japan),
3.95%, VRDN ........................ 2,015,000
</TABLE>
21
<PAGE>
EVERGREEN
Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C> <C>
MUNICIPAL BONDS - continued
Washington - continued
Washington State Public Power Supply,
Ser. 1998A:
$ 455,000 Nuclear Project #1,
4.50%, 7/1/98 ..................... $ 455,917
1,155,000 Nuclear Project #2,
4.50%, 7/1/98 ..................... 1,157,326
550,000 Nuclear Project #3,
4.50%, 7/1/98 ..................... 551,088
1,070,000 Nuclear Project #4,
4.50%, 7/1/98 ..................... 1,072,155
==============
12,953,486
==============
Other - 9.9%
5,900,000 Capital Investors Tax Exempt Fund
L.P.,
Ser. 1996-2,
(LOC: Swiss Bank Corp.),
4.20%, VRDN ....................... 5,900,000
913,996 Koch Financial Corp., Tax Exempt
Lease
Certificates, Ser. 1997-1 ClA,
4.10%, 5/6/98 (a) ................. 913,996
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C> <C>
MUNICIPAL BONDS - continued
Other - continued
Merrill Lynch, Inc., Putable Floating
Option Tax Exempt Receipts:
$56,200,000 Municipal Securities Pooled Trust,
(Ins. by MBIA),
3.90%, VRDN ....................... $ 56,200,000
6,755,000 PPT-5, (LIQ: Credit Suisse & Ins. by
FHA)
4.00%, 8/13/98 .................... 6,755,000
4,455,000 PPT-4, (Ins. by MBIA & FHA),
4.10%, VRDN ....................... 4,455,000
2,265,000 PPT-5, (LIQ: Bay Hypotheken & Ins.
by AMBAC),
3.80%, VRDN ....................... 2,265,000
18,850,000 PPT-6, (LOC: Credit Suisse),
4.08%, VRDN ....................... 18,850,000
9,600,000 PPT-7, (Ins. by FHA),
4.00%, VRDN ....................... 9,600,000
==============
104,938,996
==============
Total Investments
(cost $1,052,542,763)..... 99.5% 1,052,542,763
Other Assets and
Liabilities - Net ........ 0.5 5,268,931
===== ==============
Net Assets - ............. 100.0% $1,057,811,694
===== ==============
</TABLE>
(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
under guidelines established by the Board of Trustees.
Adjustable Rate Bonds are putable back to the issuer or other parties not
affiliated with the issuer at par on the interest reset dates. Interest rates
are determined and set by the issuer quarterly, semi-annually or annually
depending upon the terms of the security. Interest rates and reset dates
presented for these securities are those in effect at January 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 January 31, 1998.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstances, provide for repayment of
principal and interest on the obligation upon demand date, interest rate reset
date or final maturity. These enhancements include: letters of credit;
liquidity guarantees; standby bond purchase agreements; tender option purchase
agreements, and third party insurance (i.e. AMBAC, FGIC and MBIA). Adjustable
rate bonds and variable rate demand notes held in the portfolio may be
considered derivative securities within the standards imposed by the Securities
and Exchange Commission under Rule 2a-7 which were designed to minimize both
credit and market risk.
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
MIFA Massachusetts Industrial Finance Authority
MBIA Municipal Bond Investors Assurance Corp.
MERLOTS Municipal Exempt Receipts Liquidity Option Tender
MHRB Multifamily Housing Revenue Bond
MSTR Municipal Securities Trust Receipt
PCRB Pollution Control Revenue Bond
PPT Pooled Puttable Trust
RAN Revenue Anticipation Note
RB Revenue Bonds
RRB Refunding Revenue Bond
SSP Susquehanna Structure Product
SAK Sakura Trust
SFHRB Single Family Housing Revenue Bond
TECP Tax Exempt Commercial Paper
VRDN Variable Rate Demand Note
See Combined Notes to Financial Statements.
22
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
Schedule of Investments
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - 97.9%
Pennsylvania - 96.4%
$ 700,000 Allegheny County Hospital
Catholic Health System East
Development Auth. RB:
3.80%, 11/15/98 .................... $ 700,000
800,000 Allegheny Health Ed. & Resh.,
Series A-ACES,
(LOC: PNC Bank),
3.50%, VRDN ........................ 800,000
1,100,000 Allegheny Health Ed. & Resh.,
Series C-ACES,
(LOC: PNC Bank),
3.50%, VRDN ........................ 1,100,000
2,000,000 Presbyterian Health Center,
Series A,
(Ins. by MBIA),
3.50%, VRDN ........................ 2,000,000
1,000,000 St. Francis Health Center
Systems,
(LOC: First National Bank of Chicago),
3.60%, VRDN ........................ 1,000,000
Allegheny County IDA Environmental
Resource RB, U.S. Steel Corp.,TECP,
(LOC: Long-Term Credit Bank of
Japan):
1,100,000 3.45%, 4/6/98 ..................... 1,100,000
1,000,000 3.55%, 3/11/98 .................... 1,000,000
Allegheny County IDR:
1,005,000 3.55%, VRDN ....................... 1,005,000
1,750,000 3.60%, VRDN ....................... 1,750,000
1,000,000 Beaver County IDA, BASF Corp.
Project,
3.70%, VRDN ....................... 1,000,000
Beaver County IDA PCRB,
(LOC: Swiss Bank):
1,000,000 3.50%, 2/10/98 .................... 1,000,000
1,000,000 3.60%, 2/18/98 .................... 1,000,000
1,000,000 Beaver County PCRB,
(LOC: Toronto Dominion Bank),
3.80%, 12/1/98 ..................... 2,000,000
200,000 Bucks County, Series A,
5.60%, 3/1/98 ..................... 200,253
2,000,000 Dauphin County General Authority
RB, Education And Health Loan
Program, (Ins. by AMBAC),
3.55%, VRDN ........................ 2,000,000
500,000 Delaware County IDA PCRB, British
Petroleum Exploration and Oil,
3.65%, VRDN ........................ 500,000
1,000,000 Delaware Valley Registered Finance
RB, Series B, (LOC: Credit Suisse
First Boston),
3.55%, VRDN ........................ 1,000,000
320,000 Derry Township GO Bonds,
(Ins. by MBIA),
3.85%, 9/15/98 ..................... 320,000
480,000 Easton Area Joint Sewer Auth.,
Series A, (Ins. by FSA),
4.00%, 12/1/98 ..................... 480,568
Emmaus General Auth. RB:
1,300,000 Subseries B-16,
(Irrevocable LOC: Kredietbank
N.V.),
3.60%, VRDN ........................ 1,300,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Pennsylvania - continued
Emmaus General Auth. RB (continued):
$2,000,000 Subseries C-15,
(LOC: Kredietbank N.V.),
3.60%, VRDN ........................ $2,000,000
1,000,000 Subseries F-11,
(LOC: Canadian Imperial Bank
of Commerce),
3.60%, VRDN ........................ 1,000,000
3,000,000 Franconia Township IDA, Ashers
Chocolates Project, Series A,
(LOC: Mellon Bank),
3.70%, VRDN ........................ 3,000,000
1,600,000 Harrisburg Auth. Lease Revenue,
Green County Prison Project,
(Ins. by FSA),
5.90%, 6/1/98 ...................... 1,609,959
2,000,000 Harrisburg Auth. RB, Pool Financing
Fund,
(SPA: Anchor National Life Insurance
Co.),
3.60%, VRDN ........................ 2,000,000
2,000,000 Indiana County IDA,
(LOC: Union Bank of Switzerland),
3.55%, VRDN ........................ 2,000,000
1,000,000 Lackwanna County,
(LOC: Merrill Lynch) ,
3.65%, VRDN (a) .................... 1,000,000
500,000 Lancaster School District GO Bonds,
(Ins. by FGIC),
4.00%, 2/15/98 ..................... 500,027
1,100,000 Lehigh County General Purpose Auth.
RB, Lehigh Valley Hospital, Series A,
(Ins. by AMBAC),
3.65%, VRDN ........................ 1,100,000
1,000,000 New Castle Area Hospital Auth. RB,
Jameson Memorial Hospital,
(Ins. by FSA),
3.50%, VRDN ........................ 1,000,000
2,455,000 Northampton County Higher Education
Auth., Putable Floating Tax-Exempt
Receipts, PA 176,
(Ins. by MBIA),
3.65%, VRDN (a) .................... 2,455,000
1,000,000 Pennsylvania Energy Development
Auth. RB, B&W Ebensburg Project,
(LOC: Swiss Bank),
3.60%, VRDN ........................ 1,000,000
3,000,000 Pennsylvania Higher Education
Facilities Auth. RB, Allegheny
College Project,
(LOC: Mellon Bank) ,
3.55%, VRDN ........................ 3,000,000
Pennsylvania Housing Finance
Agency:
1,000,000 Putable Floating Tax-Exempt
Receipts PT-119A,
(LOC: Credit Suisse First Boston),
3.65%, VRDN (a) .................... 1,000,000
2,000,000 Putable Floating Tax-Exempt
Receipts PT-119B,
(SPA: Credit Suisse First Boston),
3.65%, VRDN (a) .................... 2,000,000
</TABLE>
23
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Pennsylvania - continued
$ 2,000,000 Pennsylvania State Higher Education
Assistance Agency, Student Loan
Rev., Series A,
(LOC: SLMA),
3.55%, VRDN (a) ....................... $2,000,000
1,445,000 Pennsylvania State Higher Education
Revenue, Series O,
(Ins. by AMBAC),
5.75%, 6/15/98 ........................ 1,455,205
Philadelphia Airport RB:
1,400,000 Floater, Series 11,
(Ins. by MBIA),
3.60%, VRDN (a) ....................... 1,400,000
2,000,000 Municipal Securities Trust
Receipts SG 118,
(Ins. by FGIC),
3.65%, VRDN (a) ....................... 2,000,000
1,000,000 Philadelphia School District TRANS,
(LOC: Commerzbank A.G.),
4.50%, 6/30/98 ........................ 1,002,409
2,000,000 Philadelphia TRANS GO,
Series A,
4.50%, 6/30/98 ........................ 2,003,924
3,000,000 Pittsburgh Floating Rate Receipts, SG 71,
(Ins. by FGIC),
3.60%, VRDN (a) ....................... 3,000,000
500,000 Schuylkill County IDA, Northeastern
Power, Series B,
(SPA: Credit Local de France),
3.75%, VRDN ........................... 500,000
2,200,000 Schuylkill County IDA Resource
Recovery RB, Gilberton Power Project,
(LOC: Mellon Bank),
3.60%, VRDN .......................... 2,200,000
650,000 South Western School District York
County,
(Ins. by FGIC),
5.00%, 6/15/98 ........................ 652,680
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
MUNICIPAL BONDS - continued
Pennsylvania - continued
$ 1,500,000 St. Mary Hospital Auth., Bucks County,
Catholic Health Services,
(LOC: Morgan Guaranty Trust),
3.50%, VRDN ........................... $1,500,000
1,000,000 Temple University of Commonwealth
Systems of Pennsylvania,
4.75%, 5/18/98 ........................ 1,002,373
2,000,000 Titusville Area School District,
Putable Floating Tax-Exempt
Receipts PA-191,
3.65%, VRDN (a) ....................... 2,000,000
1,250,000 York County Solid Waste And Refuse
Auth. RB, County Guaranteed,
(Ins. by FGIC),
4.75%, 12/1/98 ........................ 1,259,258
==========
67,896,656
==========
Puerto Rico - 1.5%
1,000,000 Puerto Rico Public Buildings Auth.,
Series J,
7.25%, 7/1/98 ......................... 1,025,061
==========
Total Municipal Bonds (cost $68,921,717). 68,921,717
==========
</TABLE>
<TABLE>
<CAPTION>
Shares
<S> <C> <C> <C>
MUTUAL FUND SHARES - 2.6%
(cost $1,805,000)
Pennsylvania - 2.6%
1,805,000 Federated Pennsylvania Municipal
Cash Trust, Institutional Service
Shares, ................................. 1,805,000
=========
Total Investments -
(cost $70,726,717)........... 100.5% 70,726,717
Other Assets and
Liabilities - Net .......... ( 0.5) (334,865)
===== ==========
Net Assets .................. 100.0% $70,391,852
===== ===========
</TABLE>
24
<PAGE>
EVERGREEN
Pennsylvania Municipal Money Market Fund
Schedule of Investments (continued)
January 31, 1998
Summary of Abbreviations:
ACES Adjustable Convertible Extendable Security
AMBAC American Municipal Bond Assurance Corp.
ARB Adjustable Rate Bond
FGIC Financial Guaranty Insurance Co.
FSA Financial Security Assurance Inc.
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corp.
PCRB Pollution Control Revenue Bond
RB Revenue Bond
SLMA Student Loan Marketing Association
SPA Securities Purchase Agreement
TECP Tax Exempt Commercial Paper
TRANS Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
(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
under guidelines established by the Board of Trustees.
Adjustable Rate Bonds are putable back to the issuer or other parties not
affiliated with the issuer at par on the interest reset dates. Interest rates
are determined and set by the issuer quarterly, semi-annually or annually
depending upon the terms of the security. Interest rates and reset dates
presented for these securities are those in effect at January 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 January 31, 1998.
Certain obligations held in the portfolio have credit enhancements or liquidity
features that may, under certain circumstances, provide for repayment of
principal and interest on the obligation upon demand date, interest rate reset
date or final maturity. These enhancements include: letters of credit;
liquidity guarantees; standby bond purchase agreements; tender option purchase
agreements, and third party insurance (i.e. AMBAC, FGIC and MBIA). Adjustable
rate bonds and variable rate demand notes held in the portfolio may be
considered derivative securities within the standards imposed by the Securities
and Exchange Commission under Rule 2a-7 which were designed to minimize both
credit and market risk.
See Combined Notes to Financial Statements.
25
<PAGE>
EVERGREEN
Treasury Money Market Fund
Schedule of Investments
January 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. TREASURY NOTES - 18.7%
$ 75,000,000 6.13%, 3/31/98 .................... $ 75,038,664
50,000,000 5.88%, 4/30/98 .................... 49,998,036
135,000,000 6.25%, 6/30/98 .................... 135,270,757
110,000,000 4.75%-6.13%, 8/31/98 .............. 109,806,406
50,000,000 6.00%, 9/30/98 .................... 50,074,830
50,000,000 5.88%, 10/31/98 ................... 50,057,804
125,000,000 5.13%-5.75%, 12/31/98 ............. 124,615,304
--------------
Total U.S. Treasury Notes
(cost $594,861,801) ............... 594,861,801
--------------
REPURCHASE AGREEMENTS* - 81.0%
140,000,000 Aubrey G. Lanston & Co., Inc.,
5.58%, dated 1/26/98,
due 2/2/98 (1) .................... 140,000,000
140,000,000 Barclays Bank, PLC,
5.57%, dated 1/26/98,
due 2/2/98 (2) .................... 140,000,000
140,000,000 Credit Suisse First Boston Corp.,
5.58%, dated 1/26/98,
due 2/2/98 (3) .................... 140,000,000
140,000,000 Dean Witter Reynolds, Inc.,
5.58%, dated 1/26/98,
due 2/2/98 (4) .................... 140,000,000
140,000,000 Deutsche Bank GC,
5.58%, dated 1/26/98,
due 2/2/98 (5) .................... 140,000,000
140,000,000 Donaldson, Lufkin & Jenrette
Securities Corp.,
5.58%, dated 1/30/98,
due 2/2/98 (6) .................... 140,000,000
284,000,000 Dresdner Bank AG,
5.57%, dated 1/26/98,
due 2/2/98 (7) .................... 284,000,000
140,000,000 Goldman Sachs & Co.,
5.59%, dated 1/30/98,
due 2/2/98 (8) .................... 140,000,000
140,000,000 HSBC Securities, Inc.,
5.57%, dated 1/26/98,
due 2/2/98 (9) .................... 140,000,000
200,000,000 Lehman Brothers, Inc.,
5.55%, dated 1/30/98,
due 2/2/98 (10) ................... 200,000,000
140,000,000 Merrill Lynch, Pierce, Fenner & Smith
Inc.,
5.57%, dated 1/30/98,
due 2/2/98 (11) ................... 140,000,000
140,000,000 Morgan Guaranty Trust Co. of New
York,
5.58%, dated 1/30/98,
due 2/2/98 (12) ................... 140,000,000
50,000,000 NationsBank, Charlotte, NC,
5.57%, dated 1/30/98,
due 2/2/98 (13) ................... 50,000,000
210,000,000 Smith Barney Shearson, Inc.,
5.62%, dated 1/26/98,
due 2/2/98 (14) ................... 210,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS* - continued
$140,000,000 State Street Bank & Trust Co.,
5.55%, dated 1/30/98,
due 2/2/98 (15) ................... $ 140,000,000
300,000,000 Union Bank of Switzerland, Inc.,
5.60%, dated 1/30/98,
due 2/2/98 (16) ................... 300,000,000
--------------
Total Repurchase Agreements
(cost $2,584,000,000) ............. 2,584,000,000
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares
<S> <C> <C> <C>
MUTUAL FUND SHARES - 0.4% (cost $11,474,630)
11,474,630 Fidelity Institutional Cash Portfolio
Treasury Class 1 .................... 11,474,630
----------
Total Investments
(cost $3,190,336,431) ..... 100.1% 3,190,336,431
Other Assets and
Liabilities - Net ......... ( 0.1) (2,431,819)
----- -------------
Net Assets ................ 100.0% $3,187,904,612
===== ==============
</TABLE>
* Collateralized by:
(1) $139,434,000 U.S. Treasury Notes, 4.75% to 9.125%, 1/31/98 to 8/15/07;
value including accrued interest - $142,803,371.
(2) $141,326,000 U.S. Treasury Notes, 4.75% to 8.25%, 7/15/98 to 10/31/98;
value including accrued interest - $142,800,165.
(3) $129,001,000 U.S. Treasury Notes, 5.875% to 7.875%, 8/15/98 to 2/15/05;
value including accrued interest - $144,153,108.
(4) $365,407,924 U.S. Treasury STRIPS, 2/15/98 to 2/15/27; value including
accrued interest - $139,762,761 and $4,591,935 GNMA 5.50% to 10.50%,
10/15/08 to 8/20/27; value including accrued interest - $3,059,913.
(5) $137,256,000 U.S. Treasury Notes, 5.75% to 6.75%, 8/15/03 to 4/30/00;
value including accrued interest - $142,800,880.
(6) $343,786,000 U.S. Treasury STRIPS, 8/15/06 to 2/15/25; value including
accrued interest - $116,390,621, $1,297,000 U.S. Treasury Notes, 7.50%,
10/31/99; value including accrued interest - $1,366,529 and $17,989,000
U.S. Treasury Bonds, 8.75% to 11.625%, 11/15/02 to 5/15/20; value
including accrued interest - $25,043,768.
(7) $279,905,000 U.S. Treasury Notes, 5.875% to 9.25%, 6/30/98 to 6/30/01;
value including accrued interest - $289,689,017.
(8) $141,466,000 U.S. Treasury Notes, 5.625%, 12/31/99; value including
accrued interest - $142,800,251.
(9) $93,838,000 U.S. Treasury STRIPS, 8/15/20; value including accrued
interest - $24,481,396, $45,259,000 U.S. Treasury Notes, 5.875%, 8/31/99;
value including accrued interest - $46,686,195 and $43,870,000 U.S.
Treasury Bonds, 11.25%, 2/15/15; value including accrued interest -
$71,636,145.
(10) $54,455,000 U.S. Treasury STRIPS, 2/15/19; value including accrued
interest - $15,567,051, $94,057,000 U.S. Treasury Notes, 5.75% to 8.125%,
2/15/98 to 10/31/02; value including accrued interest - $97,347,262 and
$76,205,000 U.S. Treasury Bonds, 7.50%, 11/15/16; value including accrued
interest - $91,002,933.
(11) $109,464,000 U.S. Treasury Bonds, 6.75% to 8.875, 8/15/17 to 8/15/26;
value including accrued interest - $142,803,816.
(12) $81,813,000 U.S. Treasury Notes, 6.00% to 7.00%, 5/31/98 to 4/15/99; value
including accrued interest - $83,902,731 and $50,465,000 U.S. Treasury
Bonds, 7.25%, 5/15/16; value including accrued interest - $58,897,499.
(13) $50,000,000 U.S. Treasury Notes, 6.00%, 7/31/02; value including accrued
interest - $50,008,333.
(14) $296,893,734 GNMA, 6.00% to 8.00%, 3/15/21 to 10/15/27; value including
accrued interest - $214,200,000.
(15) $140,000,000 U.S. Treasury Notes, 8.00%, 8/15/99; value including accrued
interest - $142,803,000.
(16) $289,018,000 U.S. Treasury Notes, 5.875% to 11.75%, 9/30/98 to
11/15/14; value including accrued interest - $305,602,603 and $800,000
U.S. Treasury STRIPS, 11/15/14; value including accrued interest -
$402,128.
Summary of Abbreviations:
GNMA Government National Mortgage Association
STRIPS Separately Traded Registered Interest and Principal Securities
See Combined Notes to Financial Statements.
26
<PAGE>
EVERGREEN
Money Market Funds
Statements of Assets and Liabilities
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>
Assets
Investments in securities ........................ $3,505,538,821 $1,052,542,763 $70,726,717 $ 606,336,431
Investments in repurchase agreements ............. 49,533,111 0 0 2,584,000,000
- --------------------------------------------------- -------------- -------------- ----------- ---------------
Investments at amortized cost .................... 3,555,071,932 1,052,542,763 70,726,717 3,190,336,431
Cash ............................................. 218,864 26,908 322 0
Interest receivable .............................. 25,275,269 7,528,223 461,510 9,536,819
Receivable for Fund shares sold .................. 11,136,303 360,029 60,481 1,221,909
Prepaid expenses and other assets ................ 312,320 69,413 3,228 75,779
- --------------------------------------------------- -------------- -------------- ----------- ---------------
Total assets ................................... 3,592,014,688 1,060,527,336 71,252,258 3,201,170,938
- --------------------------------------------------- -------------- -------------- ----------- ---------------
Liabilities
Payable for investments purchased ................ 25,011,917 0 703,547 0
Dividends payable ................................ 11,163,085 1,605,677 103,883 11,178,934
Payable for Fund shares redeemed ................. 6,585,791 378,666 0 93,326
Due to related parties ........................... 1,393,618 434,662 21,939 1,012,012
Distribution fee payable ......................... 728,510 170,846 3,244 654,507
Accrued Trustees' fees and expenses .............. 73,933 28,242 6,529 144,202
Accrued expenses and other liabilities ........... 376,273 97,549 21,264 183,345
- --------------------------------------------------- -------------- -------------- ----------- ---------------
Total liabilities ....................... ...... 45,333,127 2,715,642 860,406 13,266,326
- -------------------------------------------- ------ -------------- -------------- ----------- ---------------
Net assets ........................................ $3,546,681,561 $1,057,811,694 $70,391,852 $ 3,187,904,612
=================================================== ============== ============== =========== ===============
Net assets represented by
Paid-in capital .................................. $3,547,313,193 $1,058,039,832 $70,402,069 $ 3,187,814,260
Undistributed net investment income .............. 0 0 0 90,352
Accumulated net realized loss on investments ..... (631,632) (228,138) (10,217) 0
- --------------------------------------------------- -------------- -------------- ----------- ---------------
Total net assets ............................... $3,546,681,561 $1,057,811,694 $70,391,852 $ 3,187,904,612
=================================================== ============== ============== =========== ===============
Net assets consist of
Class A .......................................... $2,909,593,323 $ 671,754,330 $37,115,762 $ 2,616,379,921
Class B .......................................... 25,052,592 - - -
Class C .......................................... 2,028,845 - - -
Class Y .......................................... 610,006,801 386,057,364 33,276,090 571,524,691
- --------------------------------------------------- -------------- -------------- ----------- ---------------
$3,546,681,561 $1,057,811,694 $70,391,852 $ 3,187,904,612
============== ============== =========== ===============
Shares outstanding
Class A .......................................... 2,909,730,900 671,853,620 37,117,441 2,616,319,634
Class B .......................................... 25,055,619 - - -
Class C .......................................... 2,030,152 - - -
Class Y .......................................... 610,567,332 386,147,346 33,284,628 571,511,177
- --------------------------------------------------- -------------- -------------- ----------- ---------------
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.
27
<PAGE>
EVERGREEN
Money Market Funds
Statements of Operations
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>
Investment income
Interest ................................................ $85,035,929 $17,538,976 $1,048,168 $71,376,919
- ---------------------------------------------------------- ----------- ----------- ---------- -----------
Expenses
Management fee .......................................... 6,801,389 2,155,943 111,425 4,446,822
Distribution Plan expenses .............................. 3,698,197 833,863 43,990 3,142,342
Transfer agent fees ..................................... 757,593 114,240 3,014 84,142
Custodian fees .......................................... 404,042 128,364 7,143 298,551
Professional fees ....................................... 96,614 38,961 19,265 71,467
Trustees' fees and expenses ............................. 55,526 10,559 1,844 26,064
Administrative services fees ............................ 0 0 9,122 426,817
Other ................................................... 553,636 75,618 8,132 84,095
Fee waivers ............................................. 0 0 (46,689) 0
- ---------------------------------------------------------- ----------- ----------- ---------- -----------
Total expenses ......................................... 12,366,997 3,357,548 157,246 8,580,300
Less: Indirectly paid expenses .......................... (30,215) (13,791) (786) (26,682)
- ---------------------------------------------------------- ----------- ----------- ---------- -----------
Net expenses ........................................... 12,336,782 3,343,757 156,460 8,553,618
- ---------------------------------------------------------- ----------- ----------- ---------- -----------
Net investment income .................................... 72,699,147 14,195,219 891,708 62,823,301
Net realized gain 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
========================================================== =========== =========== ========== ===========
</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>
Investment income
Interest ................................................ $159,154,235 $45,162,514 $2,481,018 $168,500,697
- ---------------------------------------------------------- ------------ ----------- ---------- ------------
Expenses
Management fee .......................................... 13,092,396 5,695,367 275,516 10,831,288
Distribution Plan expenses .............................. 6,359,402 1,988,796 90,259 7,263,329
Transfer agent fees ..................................... 923,159 213,468 20,100 184,287
Custodian fees .......................................... 545,241 266,070 39,336 580,475
Administrative services fees ............................ 0 0 27,793 1,241,466
Professional fees ....................................... 32,998 37,267 15,890 28,199
Trustees' fees and expenses ............................. 53,364 25,813 5,512 65,862
Other ................................................... 595,807 123,733 24,404 203,935
Fee waivers and/or expense reimbursements ............... (1,482,584) (183,559) (123,088) (132,244)
- ---------------------------------------------------------- ------------ ----------- ---------- ------------
Total expenses ......................................... 20,119,783 8,166,955 375,722 20,266,597
Less: Indirectly paid expenses .......................... (21,867) (27,673) (88) (9,969)
- ---------------------------------------------------------- ------------ ----------- ---------- ------------
Net expenses ........................................... 20,097,916 8,139,282 375,634 20,256,628
- ---------------------------------------------------------- ------------ ----------- ---------- ------------
Net investment income .................................... 139,056,319 37,023,232 2,105,384 148,244,069
Net realized loss on investments ......................... (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
========================================================== ============ =========== ========== ============
</TABLE>
See Combined Notes to Financial Statements.
28
<PAGE>
EVERGREEN
Money Market Funds
Statements of Changes in Net Assets
Five Months Ended January 31, 1998*
<TABLE>
<CAPTION>
Money
Market
Fund
-------------------
<S> <C>
Operations
Net investment income ...................................... $ 72,699,147
Net realized gain on investments ........................... 5,356
- ------------------------------------------------------------- -----------------
Net increase in net assets resulting from operations ...... 72,704,503
- ------------------------------------------------------------- -----------------
Distributions to shareholders from
Net investment income
Class A ................................................... (58,870,079)
Class B ................................................... (373,680)
Class C ................................................... (63,444)
Class K ................................................... (3,988)
Class Y ................................................... (13,387,956)
- ------------------------------------------------------------- -----------------
Total distributions to shareholders ...................... (72,699,147)
- ------------------------------------------------------------- -----------------
Capital share transactions
Proceeds from shares sold .................................. 3,567,022,048
Proceeds from reinvestment of distributions ................ 17,805,187
Payment for shares redeemed ................................ (3,503,474,896)
- ------------------------------------------------------------- -----------------
Net increase in net assets resulting from capital share
transactions ............................................. 81,352,339
- ------------------------------------------------------------- -----------------
Total increase in net assets ............................. 81,357,695
Net assets
Beginning of period ........................................ 3,465,323,866
- ------------------------------------------------------------- -----------------
End of period .............................................. $ 3,546,681,561
============================================================= =================
Undistributed net investment income ......................... $ 0
============================================================= =================
<CAPTION>
Municipal Pennsylvania Treasury
Money Market Municipal Money Money Market
Fund Market Fund Fund
------------------ ----------------- -------------------
<S> <C> <C> <C>
Operations
Net investment income ...................................... $ 14,195,219 $ 891,708 $ 62,823,301
Net realized gain on investments ........................... 32,649 0 40,712
- -------------------------------------------------------------- -------------- -------------- -----------------
Net increase in net assets resulting from operations ...... 14,227,868 891,708 62,864,013
- -------------------------------------------------------------- -------------- -------------- -----------------
Distributions to shareholders from
Net investment income
Class A ................................................... (8,830,796) (461,218) (51,249,555)
Class B ................................................... 0 0 0
Class C ................................................... 0 0 0
Class K ................................................... 0 0 0
Class Y ................................................... (5,364,423) (430,490) (11,573,746)
- -------------------------------------------------------------- -------------- -------------- -----------------
Total distributions to shareholders ...................... (14,195,219) (891,708) (62,823,301)
- -------------------------------------------------------------- -------------- -------------- -----------------
Capital share transactions
Proceeds from shares sold .................................. 934,299,761 72,891,344 2,512,165,806
Proceeds from reinvestment of distributions ................ 5,303,116 353,402 7,304,038
Payment for shares redeemed ................................ (926,250,046) (70,557,276) (2,363,286,357)
- -------------------------------------------------------------- -------------- -------------- -----------------
Net increase in net assets resulting from capital share
transactions ............................................. 13,352,831 2,687,470 156,183,487
- -------------------------------------------------------------- -------------- -------------- -----------------
Total increase in net assets ............................. 13,385,480 2,687,470 156,224,199
Net assets
Beginning of period ........................................ 1,044,426,214 67,704,382 3,031,680,413
- -------------------------------------------------------------- -------------- -------------- -----------------
End of period .............................................. $1,057,811,694 $ 70,391,852 $ 3,187,904,612
============================================================== ============== ============== =================
Undistributed net investment income ......................... $ 0 $ 0 $ 90,352
============================================================== ============== ============== =================
</TABLE>
* The Funds changed their fiscal year end from August 31 to January 31 during
the period.
See Combined Notes to Financial Statements.
29
<PAGE>
EVERGREEN
Money Market Funds
Statements of Changes in Net Assets
Prior Fiscal Periods
<TABLE>
<CAPTION>
Money Market Fund
---------------------------------------
Year Ended August 31,
1997 1996
------------------- -------------------
<S> <C> <C>
Operations
Net investment income ...................................... $ 139,056,319 $ 85,949,891
Net realized gain (loss) on investments .................... (85,308) (26,141)
- ------------------------------------------------------------- ----------------- -----------------
Net increase in net assets resulting from operations ..... 138,971,011 85,923,750
- ------------------------------------------------------ ------ ----------------- -----------------
Distributions to shareholders from
Net investment income
Class A ................................................... (101,255,910) (63,327,347)
Class B ................................................... (509,494) (382,116)
Class C ................................................... (17,908) 0
Class K ................................................... (2,220) 0
Class Y ................................................... (37,268,232) (22,240,428)
- ------------------------------------------------------------- ----------------- -----------------
Total distributions to shareholders ...................... (139,053,764) (85,949,891)
- ------------------------------------------------------------- ----------------- -----------------
Capital share transactions
Proceeds from shares sold .................................. 8,940,579,510 6,275,701,649
Proceeds from shares issued from acquisition of:
Keystone Liquid Trust ..................................... 163,579,564 0
FFB Cash Management Fund .................................. 0 592,358,361
FFB Lexicon Cash Management Fund .......................... 0 95,834,929
FFB Tax-Free Money Market Fund ............................ 0 0
Proceeds from reinvestment of distributions ................ 38,314,180 28,242,023
Payment for shares redeemed ................................ (8,113,736,002) (5,531,191,681)
- ------------------------------------------------------------- ----------------- -----------------
Net increase (decrease) in net assets resulting from
capital share transactions ............................... 1,028,737,252 1,460,945,281
- ------------------------------------------------------------- ----------------- -----------------
Total increase (decrease) in net assets .................. 1,028,654,499 1,460,919,140
Net assets
Beginning of period ........................................ 2,436,669,367 975,750,227
- ------------------------------------------------------------- ----------------- -----------------
End of period .............................................. $ 3,465,323,866 $ 2,436,669,367
============================================================= ================= =================
Undistributed net investment income ......................... $ 2,555 $ 0
============================================================= ================= =================
<CAPTION>
Municipal Money Market Fund
---------------------------------------
Year Ended August 31,
1997 1996
------------------- -------------------
<S> <C> <C>
Operations
Net investment income ...................................... $ 37,023,232 $ 36,638,019
Net realized gain (loss) on investments .................... (2,907) (6,227)
- -------------------------------------------------------------- ----------------- -----------------
Net increase in net assets resulting from operations ..... 37,020,325 36,631,792
- ------------------------------------------------------ ------- ----------------- -----------------
Distributions to shareholders from
Net investment income
Class A ................................................... (20,900,359) (19,837,670)
Class B ................................................... 0 0
Class C ................................................... 0 0
Class K ................................................... 0 0
Class Y ................................................... (16,122,873) (16,800,349)
- -------------------------------------------------------------- ----------------- -----------------
Total distributions to shareholders ...................... (37,023,232) (36,638,019)
- -------------------------------------------------------------- ----------------- -----------------
Capital share transactions
Proceeds from shares sold .................................. 2,604,375,798 2,572,408,736
Proceeds from shares issued from acquisition of:
Keystone Liquid Trust ..................................... 0 0
FFB Cash Management Fund .................................. 0 0
FFB Lexicon Cash Management Fund .......................... 0 0
FFB Tax-Free Money Market Fund ............................ 0 103,129,021
Proceeds from reinvestment of distributions ................ 14,787,888 16,202,992
Payment for shares redeemed ................................ (2,852,083,788) (2,390,799,129)
- -------------------------------------------------------------- ----------------- -----------------
Net increase (decrease) in net assets resulting from
capital share transactions ............................... (232,920,102) 300,941,620
- -------------------------------------------------------------- ----------------- -----------------
Total increase (decrease) in net assets .................. (232,923,009) 300,935,393
Net assets
Beginning of period ........................................ 1,277,349,223 976,413,830
- -------------------------------------------------------------- ----------------- -----------------
End of period .............................................. $ 1,044,426,214 $ 1,277,349,223
============================================================== ================= =================
Undistributed net investment income ......................... $ 0 $ 0
============================================================== ================= =================
</TABLE>
See Combined Notes to Financial Statements.
30
<PAGE>
EVERGREEN
Money Market Funds
Statements of Changes in Net Assets (continued)
Prior Fiscal Periods
<TABLE>
<CAPTION>
Pennsylvania Municipal Money Market Fund
-----------------------------------------------------------
Year Ended Six Months Ended Year Ended
August 31, 1997 August 31, 1996 (a) February 29, 1996
----------------- --------------------- -------------------
<S> <C> <C> <C>
Operations
Net investment income ............... $ 2,105,384 $ 1,091,227 $ 2,665,986
Net realized gain (loss) on
investments ........................ 0 (378) (189)
- -------------------------------------- --------------- -------------- ---------------
Net increase in net assets
resulting from operations ......... 2,105,384 1,090,849 2,665,797
- -------------------------------------- --------------- -------------- ---------------
Distributions to shareholders from
Net investment income
Class A ............................ (905,311) (242,309) (9,466)
Class Y ............................ (1,203,873) (848,918) (2,656,520)
- -------------------------------------- --------------- -------------- ---------------
Total distributions to
shareholders ..................... (2,109,184) (1,091,227) (2,665,986)
- -------------------------------------- --------------- -------------- ---------------
Capital share transactions
Proceeds from shares sold ........... 127,715,297 61,460,030 179,632,522
Proceeds from shares issued from
acquisition of:
FFB U.S. Treasury Fund ............. 0 0 0
FFB U.S. Government Fund ........... 0 0 0
FFB 100% U.S. Treasury Fund ........ 0 0 0
Proceeds from reinvestment of
distributions ...................... 1,021,288 621,908 1,766,790
Payment for shares redeemed ......... (131,543,821) (79,296,671) (137,207,686)
- -------------------------------------- --------------- -------------- ---------------
Net increase (decrease) in net
assets resulting from capital
share transactions ................ (2,807,236) (17,214,733) 44,191,626
- -------------------------------------- --------------- -------------- ---------------
Total increase (decrease) in
net assets ....................... (2,811,036) (17,215,111) 44,191,437
Net assets
Beginning of period ................. 70,515,418 87,730,529 43,539,092
- -------------------------------------- --------------- -------------- ---------------
End of period ....................... $ 67,704,382 $ 70,515,418 $ 87,730,529
====================================== =============== ============== ===============
Undistributed net investment
income .............................. $ 0 $ 3,800 $ 3,800
====================================== =============== ============== ===============
<CAPTION>
Treasury Money Market Fund
---------------------------------------
Year Ended August 31,
1997 1996
------------------- -------------------
<S> <C> <C>
Operations
Net investment income ............... $ 148,244,069 $ 121,967,383
Net realized gain (loss) on
investments ........................ 0 161,674
- --------------------------------------- ----------------- -----------------
Net increase in net assets
resulting from operations ......... 148,244,069 122,129,057
- --------------------------------------- ----------------- -----------------
Distributions to shareholders from
Net investment income
Class A ............................ (114,457,775) (101,441,299)
Class Y ............................ (33,786,294) (20,526,084)
- --------------------------------------- ----------------- -----------------
Total distributions to
shareholders ..................... (148,244,069) (121,967,383)
- --------------------------------------- ----------------- -----------------
Capital share transactions
Proceeds from shares sold ........... 6,954,597,959 6,442,829,718
Proceeds from shares issued from
acquisition of:
FFB U.S. Treasury Fund ............. 0 1,070,672,333
FFB U.S. Government Fund ........... 0 327,532,054
FFB 100% U.S. Treasury Fund ........ 0 28,227,573
Proceeds from reinvestment of
distributions ...................... 19,627,202 17,972,077
Payment for shares redeemed ......... (7,310,208,436) (5,974,992,600)
- --------------------------------------- ----------------- -----------------
Net increase (decrease) in net
assets resulting from capital
share transactions ................ (335,983,275) 1,912,241,155
- --------------------------------------- ----------------- -----------------
Total increase (decrease) in
net assets ....................... (335,983,275) 1,912,402,829
Net assets
Beginning of period ................. 3,367,663,688 1,455,260,859
- --------------------------------------- ----------------- -----------------
End of period ....................... $ 3,031,680,413 $ 3,367,663,688
======================================= ================= =================
Undistributed net investment
income .............................. $ 49,640 $ 0
======================================= ================= =================
</TABLE>
(a) The Fund changed its fiscal year end from February 29 to August 31.
See Combined Notes to Financial Statements.
31
<PAGE>
Combined Notes to Financial Statements
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
("Municipal Money Market Fund") (formerly, Evergreen Tax Exempt Money Market
Fund), Evergreen Pennsylvania Municipal Money Market Fund ("Pennsylvania
Municipal Money Market Fund") (formerly, Evergreen Pennsylvania Tax-Free Money
Market Fund) and Evergreen Treasury Money Market 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 17, 1997 as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"). Each Fund is a
diversified series of the Trust.
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
redemption 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. Class K shares
were available for exchange by shareholders of any Keystone Classic Fund. The
contingent deferred sales charge applicable to shares of the Keystone Classic
Fund exchanged for Class K shares had carried over to the Class K shares
received in the exchange. 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 Corporation ("First Union") and its affiliates,
certain institutional investors or Class Y shareholders of record of certain
other funds managed by First Union and its affiliates as of December 30, 1994.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles, which
require management to make estimates and assumptions that affect amounts
reported herein. Actual results could differ from these estimates.
A. Valuation of Securities
Portfolio securities are valued at amortized cost which approximates market
value. The amortized cost method involves valuing a security at cost on the
date of purchase and thereafter assuming a straight-line amortization of any
discount or premium.
B. Repurchase Agreements
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held by the custodian on the Fund's behalf. Each
Fund monitors the adequacy of the collateral daily and will require the seller
to provide additional collateral in the event the market value of the
securities pledged falls below the carrying value of the repurchase agreement,
including accrued interest. Each Fund will only enter into repurchase
agreements with banks and other financial institutions which are deemed by the
investment adviser to be creditworthy pursuant to guidelines established by the
Board of Trustees.
C. Securities Lending
In order to generate income and to offset expenses, the Funds may lend
portfolio securities to brokers, dealers and other financial organizations.
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
securities that are maintained at all times in an amount equal to at least 100%
of the current market value of the loaned securities, including accrued
interest. While such securities are on loan, the borrower will pay a Fund any
income accruing thereon, and 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.
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
investment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute
32
<PAGE>
Combined Notes to Financial Statements (continued)
all of their net investment company taxable income, net tax-exempt income and
net capital gains, if any, to their shareholders. The Funds also intend to
avoid any excise tax liability by making the required distributions under the
Code. Accordingly, no provision for federal taxes is required. To the extent
that realized capital gains can be offset by capital loss carryforwards, it is
each Fund's policy not to distribute such gains.
F. Distributions
Distributions from net investment income for each Fund are declared daily and
paid monthly. Distributions from net realized capital gains, if any, are paid
at least annually. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. To the extent these differences are permanent
in nature, such amounts are reclassified within the components of net assets.
G. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the
relative net assets of each class. Currently, class specific expenses are
limited to expenses incurred under the Distribution Plans for each class.
2. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of $0.001 par value shares of beneficial
interest authorized. The shares are divided into classes which are designated
Class A and Class Y shares. In addition, the Money Market Fund offers Class B
and Class C shares. Prior to January 16, 1998 the Money Market Fund also
offered Class K shares. Transactions in shares of beneficial interest (valued
at $1.00 per share) of the Funds were as follows:
- --------------------------------------------------------------------------------
MONEY MARKET FUND
<TABLE>
<CAPTION>
Year Ended August 31,
Five Months
Ended
January 31, 1998 1997 1996
------------------ ------------------- -------------------
<S> <C> <C> <C>
Class A
Shares sold ........................................ 2,143,096,717 4,913,816,942 3,360,065,151
Shares issued in acquisition of:
FFB Cash Management Fund .......................... 0 0 592,362,245
Keystone Liquid Trust ............................. 0 151,861,145 0
Shares issued in reinvestment of distributions ..... 11,138,399 19,783,898 13,630,468
Shares redeemed .................................... (2,047,246,823) (4,037,993,646) (2,895,924,591)
- ---------------------------------------------------- ---------------- ----------------- -----------------
Net increase ....................................... 106,988,293 1,047,468,339 1,070,133,273
- ---------------------------------------------------- ---------------- ----------------- -----------------
Class B
Shares sold ........................................ 33,697,484 22,383,686 13,107,126
Shares issued in:
Acquisition of Keystone Liquid Trust .............. 0 7,303,582 0
Conversion of Class K shares to Class B ........... 74,271 0 0
Shares issued in reinvestment of distributions ..... 314,550 442,030 307,330
Shares redeemed .................................... (31,906,139) (17,471,935) (11,123,113)
- ---------------------------------------------------- ---------------- ----------------- -----------------
Net increase ....................................... 2,180,166 12,657,363 2,291,343
==================================================== ================ ================= =================
</TABLE>
33
<PAGE>
Combined Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
MONEY MARKET FUND - continued
<TABLE>
<CAPTION>
August 1, 1997
Five Months (Commencement of
Ended Class Operations) to
January 31, 1998 August 31, 1997
------------------ ---------------------
<S> <C> <C>
Class C
Shares sold ............................................... 5,355,264 1,309,779
Shares issued in acquisition of Keystone Liquid Trust ..... 0 4,493,120
Shares issued in reinvestment of distributions ............ 51,687 16,706
Shares redeemed ........................................... (8,464,881) (731,523)
- ----------------------------------------------------------- -------------- ---------------
Net increase (decrease) ................................... (3,057,930) 5,088,082
- ----------------------------------------------------------- -------------- ---------------
Class K
Shares sold ............................................... 1,258,327 156,690
Shares issued in reinvestment of distributions ............ 1,841 208
Shares converted to Class B shares ........................ (74,271) 0
Shares redeemed ........................................... (1,291,309) (51,486)
- ----------------------------------------------------------- -------------- ---------------
Net increase (decrease) ................................... (105,412) 105,412
=========================================================== ============== ===============
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
Five Months
Ended
January 31, 1998 1997 1996
------------------ ------------------- -------------------
<S> <C> <C> <C>
Class Y
Shares sold ........................................ 1,383,614,256 4,002,912,413 2,902,529,372
Shares issued in acquisition of
FFB Lexicon Cash Management Fund .................. 0 0 95,834,876
Shares issued in reinvestment of distributions ..... 6,298,710 18,071,338 14,304,225
Shares redeemed .................................... (1,414,565,744) (4,057,487,412) (2,624,143,977)
- ---------------------------------------------------- ---------------- ----------------- -----------------
Net increase (decrease) ............................ (24,652,778) (36,503,661) 388,524,496
==================================================== ================ ================= =================
</TABLE>
- --------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
Year Ended August 31,
Five Months
Ended
January 31, 1998 1997 1996
------------------ ------------------- -------------------
<S> <C> <C> <C>
Class A
Shares sold ...................................... 481,665,658 1,491,746,339 1,329,098,871
Shares issued in acquisition of
FFB Tax-Free Money Market Fund .................. 0 0 103,102,728
Shares issued in reinvestment of distributions ... 1,156,331 3,081,550 3,435,421
Shares redeemed .................................. (477,834,788) (1,488,596,189) (1,330,067,450)
- -------------------------------------------------- --------------- ----------------- -----------------
Net increase ..................................... 4,987,201 6,231,700 105,569,570
- -------------------------------------------------- --------------- ----------------- -----------------
Class Y
Shares sold ...................................... 452,634,103 1,112,629,458 1,243,309,865
Shares issued in reinvestment of distributions ... 4,146,785 11,706,339 12,767,571
Shares redeemed .................................. (448,415,258) (1,363,487,668) (1,060,731,679)
- -------------------------------------------------- --------------- ----------------- -----------------
Net increase (decrease) .......................... 8,365,630 (239,151,871) 195,345,757
================================================== =============== ================= =================
</TABLE>
- --------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
August 22, 1995
Five Months Six Months (Commencement of
Ended Year Ended Ended Class operations) to
January 31, 1998 August 31, 1997 August 31, 1996 February 29, 1996
------------------ ----------------- ----------------- ---------------------
<S> <C> <C> <C> <C>
Class A
Shares sold ................................... 53,496,270 84,061,251 40,205,338 4,636,845
Shares issued in reinvestment of distributions 60,103 196,984 35,417 3,934
Shares redeemed ............................... (52,168,806) (70,724,545) (22,377,383) (307,967)
- ----------------------------------------------- --------------- -------------- -------------- ---------------
Net increase .................................. 1,387,567 13,533,690 17,863,372 4,332,812
=============================================== =============== ============== ============== ===============
</TABLE>
34
<PAGE>
Combined Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET FUND - continued
<TABLE>
<CAPTION>
Five Months Six Months
Ended Year Ended Ended Year Ended
January 31, 1998 August 31, 1997 August 31, 1996 February 29, 1996
------------------ ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Class Y
Shares sold ................................... 19,395,074 43,654,046 21,254,692 174,995,677
Shares issued in reinvestment of distributions 293,299 824,304 586,491 1,762,856
Shares redeemed ............................... (18,388,470) (60,819,276) (56,919,288) (136,899,719)
- ----------------------------------------------- --------------- -------------- -------------- ---------------
Net increase (decrease) ....................... 1,299,903 (16,340,926) (35,078,105) 39,858,814
=============================================== =============== ============== ============== ===============
</TABLE>
- --------------------------------------------------------------------------------
TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
Year Ended August 31,
Five Months
Ended
January 31, 1998 1997 1996
------------------ ------------------- -------------------
<S> <C> <C> <C>
Class A
Shares sold ................................... 1,939,261,773 4,767,671,119 4,828,856,886
Shares issued in acquisition of:
FFB U.S. Treasury Fund ....................... 0 0 1,070,688,429
FFB U.S. Government Fund ..................... 0 0 327,554,031
FFB 100% U.S. Treasury Fund .................. 0 0 28,227,628
Shares issued in reinvestment of distributions 5,981,255 16,715,941 16,836,594
Shares redeemed ............................... (1,813,656,225) (4,907,328,690) (4,842,442,130)
- ----------------------------------------------- ---------------- ----------------- -----------------
Net increase (decrease) ....................... 131,586,803 (122,941,630) 1,429,721,438
- ----------------------------------------------- ---------------- ----------------- -----------------
Class Y
Shares sold ................................... 572,904,033 2,186,926,840 1,613,972,832
Shares issued in reinvestment of distributions 1,322,783 2,911,261 1,135,483
Shares redeemed ............................... (549,630,132) (2,402,879,746) (1,132,550,470)
- ----------------------------------------------- ---------------- ----------------- -----------------
Net increase (decrease) ....................... 24,596,684 (213,041,645) 482,557,845
=============================================== ================ ================= =================
</TABLE>
3. SECURITIES TRANSACTIONS
The Treasury Money Market Fund loaned securities during the five months ended
January 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
collateral against the loaned securities in an amount at least equal to 100% of
the market value of the loaned securities at the inception of each loan. The
Fund monitors the adequacy of the collateral daily and will require the broker
to provide additional collateral in the event the value of the collateral falls
below 100% of the market value of the securities on loan. At January 31, 1998,
the Fund had no securities on loan. During the five months ended January 31,
1998, the Fund earned $70,686 in income from securities lending transactions.
On January 31, 1998, the cost of investments for federal income tax purposes of
each Fund was the same as for financial reporting purposes.
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>
4. DISTRIBUTION PLANS
Evergreen Distributor, Inc. ("EDI") (formerly, Evergreen Keystone Distributor,
Inc.), a wholly-owned subsidiary of The BISYS Group Inc. ("BISYS"), serves as
the principal underwriter to the Funds. The Funds have adopted Distribution
Plans (the "Plans") for their Class A Shares, Class B Shares, Class C Shares
and Class K Shares pursuant to Rule 12b-1 under the 1940 Act. The Plans permit
each Fund to reimburse its principal underwriter for costs related to selling
shares of the Fund and for various other services. These costs, which
35
<PAGE>
Combined Notes to Financial Statements (continued)
consist primarily of commissions and services fees to broker-dealers 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 an annual rate of 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
assets for its Class B and Class C shares and up to 0.30% of its average daily
net assets of its Class K shares.
EDI has entered into a Shareholder Services Agreement with First Union
Brokerage Services ("FUBS"), an affiliate of First Union, whereby EDI will
compensate FUBS for certain services provided to shareholders and/or
maintenance of shareholder accounts relating to Money Market Fund's Class B
shares. EDI paid $11,046 to FUBS during the five months ended January 31, 1998
under the shareholder services agreement.
During the five months ended January 31, 1998, amounts paid to EDI pursuant to
each Fund's Class A, Class B, Class C and Class K Distribution Plans were as
follows:
<TABLE>
<CAPTION>
Amount paid Amount waived
------------------------------------------- --------------
Class A Class B Class C Class K Class A
------------- --------- --------- --------- --------------
<S> <C> <C> <C> <C> <C>
Money Market Fund ....................... $3,594,206 $88,649 $15,098 $244 -
Municipal Money Market Fund ............. 833,863 - - - -
Pennsylvania Municipal Money Market Fund 43,990 - - - $29,326
Treasury Money Market Fund .............. 3,142,342 - - - -
</TABLE>
Each of the Distribution Plans may be terminated at any time by vote of the
Independent 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
Municipal Money Market Fund. In return for providing investment management and
administrative services to the Funds, the Funds pay Evergreen Asset a
management fee that is calculated daily and paid monthly. The management fee is
computed by applying percentage rates, starting at 0.50% and declining to 0.45%
per annum as net assets increase, to the average daily net asset value of each
Fund.
The Capital Management Group ("CMG") of First Union National Bank of North
Carolina ("FUNB"), a subsidiary of First Union, serves as the investment
adviser to the Pennsylvania 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 five months ended January 31, 1998, the Pennsylvania Municipal Money
Market Fund voluntarily waived management fees of $17,363. The investment
adviser can modify or discontinue these voluntary waivers and reimbursements at
any time.
Lieber & Company, an affiliate of First Union, is the investment sub-adviser to
the Money Market and Municipal Money Market Funds. Lieber & Company is
reimbursed by Evergreen Asset, at no additional expense to the Money Market and
Municipal Money Market Funds, for its cost of providing sub-investment advisory
services.
Evergreen Investment Services, Inc. ("EIS") (formerly, Evergreen Keystone
Investment Services, Inc.), a subsidiary of First Union, serves as the
administrator for each Fund.
36
<PAGE>
Combined Notes to Financial Statements (continued)
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
percentage rates, which start at 0.01% and decline to .004% as net assets
increase, 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 five months ended January 31, 1998, the Pennsylvania Municipal Money
Market and Treasury Money Market Funds paid or accrued $7,495 and $341,830,
respectively, to EIS for certain administrative services.
Evergreen Service Company ("ESC") (formerly, Evergreen Keystone Service
Company), 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 Treaury Money Market Funds, First Union has 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 five months ended January 31, 1998:
<TABLE>
<S> <C>
Money Market Fund .................. $17,672
Treasury Money Market Fund ......... 45,198
</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.
8. ACQUISITION INFORMATION
Effective August 1, 1997, the Money Market Fund acquired substantially all the
assets and assumed the liabilities of Keystone Liquid Trust in exchange for
Class A, Class B and Class C Shares of the Money Market Fund. The acquisition
was accomplished by a tax-free exchange of the respective shares of the Money
Market Fund for the net assets of the Keystone Liquid Trust. The net assets
acquired, valued at $1 per share, amounted to $163,579,564. The aggregate net
assets of the Money Market Fund immediately after the acquisition was
$ 3,202,817,920.
37
<PAGE>
Combined Notes to Financial Statements (continued)
Effective January 1, 1996, First Union merged with First Fidelity
Bancorporation. Effective on the close of business January 19, 1996, the Funds
noted below acquired substantially all of the net assets of the following
management investment companies, previously advised by a subsidiary of First
Fidelity Bancorporation, through non-taxable exchanges. The net assets
acquired, valued at $1 per share, and class of shares exchanged are as follows:
<TABLE>
<CAPTION>
Class of
Acquired Acquiring Shares
Fund Fund Exchanged Net Assets
- -------------------------------------------- ------------------- ----------- ----------------
<S> <C> <C> <C>
FFB Cash Management Fund ............. Money Market Fund Class A $ 592,358,361
FFB Lexicon Cash Management Fund ..... Money Market Fund Class Y 95,834,929
Municipal Money
FFB Tax-Free Money Market Fund ....... Market Fund Class A 103,129,021
Treasury Money
FFB U.S. Treasury Fund ............... Market Fund Class A 1,070,672,333
Treasury Money
FFB U.S. Government Fund ............. Market Fund Class A 327,532,054
Treasury Money
FFB 100% U.S. Treasury Fund .......... Market Fund Class A 28,227,573
</TABLE>
The aggregate net assets of the Money Market, Municipal Money Market and
Treasury Money Market Funds immediately after the acquisitions were
$1,865,328,722, $1,141,961,188 and $3,053,739,559, respectively.
9. FINANCING AGREEMENT
On October 31, 1996, a financing agreement among certain of the Evergreen
Funds, State Street Bank & Trust ("State Street") and a group of Banks
(collectively, the "Banks") became effective. Under this agreement, the Banks
provided an unsecured credit facility in the aggregate amount of $225 million
($112.5 million committed and $112.5 million uncommitted) allocated evenly
among the Banks. Borrowings under this facility bore interest at 0.75% per
annum above the Federal Funds rate. A commitment fee of 0.10% per annum was
incurred on the unused portion of the committed facility, which was allocated
to all participating funds. State Street served as agent for the Banks, and as
agent was entitled to a fee of $15,000 which was allocated to all of the
participating Funds. This agreement was terminated on October 31, 1997.
On October 31, 1997, a temporary financing agreement between the participating
Funds and First Union became effective. Under this agreement, First Union
provided a fully committed unsecured credit facility in the aggregate amount of
$300 million. Borrowings under this facility bore interest at 1.00% per annum
above the Federal Funds rate. State Street served as administrative agent under
this agreement, but received no compensation for its services. This agreement
was terminated on December 22, 1997.
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
temporary or emergency purposes only and is subject to each Fund's borrowing
restrictions. 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
incurred 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 administrative agent is entitled to a fee of $20,000 per annum
which is allocated to all of the Funds.
During the five months ended January 31, 1998, the Municipal Money Market Fund
had borrowings outstanding for 5 days under these agreements and incurred
$11,667 in interest charges related to these borrowings. The average amount of
debt outstanding aggregated $14,000,000 at a weighted average interest rate of
6.00%. The maximum amount outstanding under the agreement was $14,002,333
(including accrued interest). On January 31, 1998, the Funds had no borrowings
under the agreement.
38
<PAGE>
Combined Notes to Financial Statements (continued)
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
affected by economic and political developments in that state or region than
would be a comparable general tax-exempt money market fund.
11. SUBSEQUENT EVENTS
Effective March 2, 1998, the Money Market Fund acquired substantially all the
assets and assumed the liabilities of Virtus Money Market Fund in exchange for
Class A and Class Y 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 Virtus Money Market Fund. The net assets
acquired, valued at $1 per share, amounted to $227,443,405. The aggregate net
assets of the Money Market Fund immediately after the acquisition was
$3,972,178,894.
Effective March 2, 1998, the Municipal Money Market Fund acquired substantially
all the assets and assumed the liabilities of Virtus Tax Free Money Market Fund
in exchange for Class Y shares of the Municipal Money Market Fund. The
acquisition was accomplished by a tax-free exchange of the respective shares of
the Municipal Money Market Fund for the net assets of Virtus Tax Free Money
Market Fund. The net assets acquired, valued at $1 per share, amounted to
$51,784,668. The aggregate net assets of the Municipal Money Market Fund
immediately after the acquisition was $1,236,483,220.
Effective March 2, 1998, the Treasury Money Market Fund acquired substantially
all the assets and assumed the liabilities of Virtus Treasury Money Market Fund
in exchange for Class A and Class Y shares of the Treasury Money Market Fund.
The acquisition was accomplished by a tax-free exchange of the respective
shares of the Treasury Money Market Fund for the net assets of Virtus Treasury
Money Market Fund. The net assets acquired, valued at $1 per share, amounted to
$243,731,970. The aggregate net assets of the Treasury Money Market Fund
immediately after the acquisition was $3,473,282,398.
39
<PAGE>
Report of Independent Accountants
To the Trustees and Shareholders of
Evergreen Money Market Fund
Evergreen Municipal Money Market Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Evergreen Money
Market Fund and Evergreen Municipal Money Market Fund (formerly, Evergreen Tax
Exempt Money Market Fund) (the "Funds"), two of the funds of Evergreen Money
Market Trust, at January 31, 1998, the results of each of their operations for
the period then ended and for the year ended August 31, 1997, the changes in
each of their net assets for the five months ended January 31, 1998 and for
each of the two years in the period ended August 31, 1997, and the financial
highlights for each of the periods indicated in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at January 31, 1998 by
correspondence with the custodian and the application of alternative auditing
procedures where securities purchased had not been received, provide a
reasonable basis for the opinion expressed above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
March 13, 1998
40
<PAGE>
Independent Auditors' Report
The Trustees and Shareholders
Evergreen Money Market Trust
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments of the Evergreen Money Market Funds
listed below as of January 31, 1998 and the related statements of operations,
statements of changes in net assets, and financial highlights for each of the
years or periods listed below:
Evergreen Pennsylvania Municipal Money Market Fund (formerly Evergreen
Pennsylvania Tax-Free Money Market Fund) (one of the portfolios
constituting Evergreen Money Market Trust) - statements of operations for
the five months ended January 31, 1998 and for the year ended August 31,
1997, statements of changes in nets assets for the five months ended
January 31, 1998, the year ended August 31, 1997, the six months ended
August 31, 1996 and the year ended February 29, 1996 and financial
highlights for the periods presented on page 11.
Evergreen Treasury Money Market Fund (one of the portfolios constituting
Evergreen Money Market Trust) - statements of operations for the five
months ended January 31, 1998 and for the year ended August 31, 1997,
statements of changes in net assets for the five months ended January 31,
1998 and for each of the years in the two-year period ended August 31,
1997, and the financial highlights for the periods presented on page 12.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform our audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of January 31, 1998 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Evergreen Pennsylvania Municipal Money Market Fund and Evergreen Treasury Money
Market Fund as of January 31, 1998, the results of their operations, the
changes in their net assets and financial highlights for each of the years or
periods specified in the first paragraph above in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
March 2, 1998
41
<PAGE>
ADDITIONAL INFORMATION (Unaudited)
On December 15, 1997, a special meeting of shareholders for each of the Funds
was held to consider a number of proposals. On October 16, 1997, the record
date for the meeting, the Funds had the following shares outstanding and number
of shares represented at the meeting:
<TABLE>
<CAPTION>
Money Municipal
Market Money
Fund Market Fund
--------------- -----------------
<S> <C> <C>
Record Date Shares Outstanding ....................................... 665,368,074 1,050,705,165
Shares represented at meeting ........................................ 488,884,359 579,552,500
Percentage of record date shares represented at meeting .............. 73.48% 55.16%
The votes recorded at the meeting, by proposal, were as follows:
Proposal 1 - The proposed reorganization of each Fund as
a series of the Evergreen Money Market Trust, a
Delaware business trust:
Shares voted "For" ............................................. 437,248,834 503,077,636
Shares voted "Against" ......................................... 8,870,976 46,094,331
Shares voted "Abstain" ......................................... 42,765,549 30,380,533
Proposal 2 - Reclassification as non-fundamental of the
investment objective of those Funds whose investment
objective is currently classified as fundamental:
Shares voted "For" ............................................. 424,291,905 527,521,756
Shares voted "Against" ......................................... 23,470,191 23,391,548
Shares voted "Abstain" ......................................... 41,122,263 28,639,196
Proposal 3 - Changes to fundamental investment
restrictions:
Proposal to amend the fundamental restriction concerning
diversification of investments
Shares voted "For" ............................................. 430,292,983 508,978,082
Shares voted "Against" ......................................... 16,325,096 38,700,635
Shares voted "Abstain" ......................................... 42,266,280 31,873,783
Proposal to amend the fundamental restriction concerning
concentration of a Fund's assets in a particular industry:
Shares voted "For" ............................................. 430,228,747 510,380,526
Shares voted "Against" ......................................... 16,335,117 37,298,191
Shares voted "Abstain" ......................................... 42,320,495 31,873,783
Proposal to amend the fundamental restriction concerning the
issuance of senior securities:
Shares voted "For" ............................................. 430,116,992 510,503,604
Shares voted "Against" ......................................... 16,451,969 37,175,113
Shares voted "Abstain" ......................................... 42,315,398 31,873,783
Proposal to amend the fundamental restriction concerning
borrowing:
Shares voted "For" ............................................. 430,218,362 510,036,379
Shares voted "Against" ......................................... 16,350,599 37,642,338
Shares voted "Abstain" ......................................... 42,315,398 31,873,783
Proposal to amend the fundamental restriction concerning
underwriting:
Shares voted "For" ............................................. 430,188,158 510,615,086
Shares voted "Against" ......................................... 16,380,803 37,063,631
Shares voted "Abstain" ......................................... 42,315,398 31,873,783
Proposal to amend the fundamental restriction concerning
investments in Real Estate:
Shares voted "For" ............................................. 430,215,635 510,344,860
Shares voted "Against" ......................................... 16,353,327 37,333,857
Shares voted "Abstain" ......................................... 42,315,397 31,873,783
<CAPTION>
Pennsylvania Treasury
Money Money
Market Market
Fund Fund
------------------ -----------------
<S> <C> <C>
Record Date Shares Outstanding ....................................... 64,701,257,910 2,463,577,719
Shares represented at meeting ........................................ 45,310,144 1,429,067,131
Percentage of record date shares represented at meeting .............. 70.03% 58.01%
The votes recorded at the meeting, by proposal, were as follows:
Proposal 1 - The proposed reorganization of each Fund as
a series of the Evergreen Money Market Trust, a
Delaware business trust:
Shares voted "For" ............................................. 44,081,273 1,315,195,172
Shares voted "Against" ......................................... 507,602 14,760,448
Shares voted "Abstain" ......................................... 721,269 99,111,511
Proposal 2 - Reclassification as non-fundamental of the
investment objective of those Funds whose investment
objective is currently classified as fundamental:
Shares voted "For" ............................................. 44,187,509 1,298,572,711
Shares voted "Against" ......................................... 399,429 30,742,118
Shares voted "Abstain" ......................................... 723,206 99,752,302
Proposal 3 - Changes to fundamental investment
restrictions:
Proposal to amend the fundamental restriction concerning
diversification of investments
Shares voted "For" ............................................. 43,970,019 1,300,398,112
Shares voted "Against" ......................................... 618,856 27,635,300
Shares voted "Abstain" ......................................... 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
concentration of a Fund's assets in a particular industry:
Shares voted "For" ............................................. 43,970,019 1,300,398,112
Shares voted "Against" ......................................... 618,856 27,635,300
Shares voted "Abstain" ......................................... 721,269 101,033,719
Proposal to amend the fundamental restriction concerning the
issuance of senior securities:
Shares voted "For" ............................................. 43,970,019 1,300,398,112
Shares voted "Against" ......................................... 618,856 27,635,300
Shares voted "Abstain" ......................................... 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
borrowing:
Shares voted "For" ............................................. 43,970,019 1,300,398,112
Shares voted "Against" ......................................... 618,856 27,635,300
Shares voted "Abstain" ......................................... 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
underwriting:
Shares voted "For" ............................................. 43,970,019 1,300,398,112
Shares voted "Against" ......................................... 618,856 27,635,300
Shares voted "Abstain" ......................................... 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
investments in Real Estate:
Shares voted "For" ............................................. 43,970,019 1,300,398,112
Shares voted "Against" ......................................... 618,856 27,635,300
Shares voted "Abstain" ......................................... 721,269 101,033,719
</TABLE>
42
<PAGE>
ADDITIONAL INFORMATION (Unaudited) (continued)
<TABLE>
<CAPTION>
Pennsylvania Treasury
Money Municipal Money Money
Market Money Market Market
Fund Market Fund Fund Fund
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
Proposal to amend the fundamental restriction concerning
commodities:
Shares voted "For" ............................................ 430,006,628 508,414,064 43,970,019 1,300,398,112
Shares voted "Against" ........................................ 16,562,334 39,264,654 618,856 27,635,300
Shares voted "Abstain" ........................................ 42,315,397 31,873,782 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
lending:
Shares voted "For" ............................................ 430,035,104 510,319,808 43,970,019 1,300,398,112
Shares voted "Against" ........................................ 16,533,857 37,358,909 618,856 27,635,300
Shares voted "Abstain" ........................................ 42,315,398 31,873,783 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
investment in federally tax exempt securities:
Shares voted "For" ............................................ N/A 508,812,608 43,970,019 N/A
Shares voted "Against" ........................................ N/A 38,866,109 618,856 N/A
Shares voted "Abstain" ........................................ N/A 31,873,783 721,269 N/A
Proposal to amend the fundamental restriction concerning
unseasoned issuers:
Shares voted "For" ............................................ 430,085,012 503,271,988 N/A N/A
Shares voted "Against" ........................................ 16,491,910 44,410,534 N/A N/A
Shares voted "Abstain" ........................................ 42,307,437 31,869,978 N/A N/A
Proposal to amend the fundamental restriction concerning
purchases on margin:
Shares voted "For" ............................................ 430,049,725 504,229,826 43,970,019 N/A
Shares voted "Against" ........................................ 16,527,197 43,574,545 618,856 N/A
Shares voted "Abstain" ........................................ 42,307,437 31,748,129 721,269 N/A
To amend the fundamental restriction concerning control or
management:
Shares voted "For" ............................................ N/A 503,278,652 43,970,019 1,301,401,860
Shares voted "Against" ........................................ N/A 44,403,870 618,856 26,631,552
Shares voted "Abstain" ........................................ N/A 31,869,978 721,269 101,033,719
Proposal to amend the fundamental restriction concerning
short sales:
Shares voted "For" ............................................ 430,109,364 503,283,412 N/A 1,303,100,728
Shares voted "Against" ........................................ 16,467,557 44,399,110 N/A 24,932,684
Shares voted "Abstain" ........................................ 42,307,438 31,869,978 N/A 101,033,719
Proposal to amend the fundamental restriction concerning
purchases on margin:
Shares voted "For" ............................................ 430,156,384 N/A N/A N/A
Shares voted "Against" ........................................ 16,420,537 N/A N/A N/A
Shares voted "Abstain" ........................................ 42,307,438 N/A N/A N/A
Proposal to amend the fundamental restriction concerning
Officers and Directors' ownership of shares:
Shares voted "For" ............................................ 430,453,574 507,385,479 N/A 1,301,401,860
Shares voted "Against" ........................................ 16,454,101 40,418,893 N/A 26,631,552
Shares voted "Abstain" ........................................ 41,976,684 31,748,128 N/A 101,033,719
Proposal to amend the fundamental restriction concerning Oil,
Gas or other mineral exploration program:
Shares voted "For" ............................................ 430,468,733 504,199,839 43,970,019 N/A
Shares voted "Against" ........................................ 16,420,537 43,604,533 618,856 N/A
Shares voted "Abstain" ........................................ 41,995,089 31,748,128 721,269 N/A
Proposal to amend the fundamental restriction concerning
options:
Shares voted "For" ............................................ 430,404,993 504,199,839 N/A N/A
Shares voted "Against" ........................................ 16,425,577 43,604,533 N/A N/A
Shares voted "Abstain" ........................................ 42,053,789 31,748,128 N/A N/A
</TABLE>
43
<PAGE>
ADDITIONAL INFORMATION (Unaudited) (continued)
<TABLE>
<CAPTION>
Pennsylvania Treasury
Money Municipal Money Money
Market Money Market Market
Fund Market Fund Fund Fund
------------- ------------- -------------- ---------
<S> <C> <C> <C> <C>
Proposal to amend the fundamental restriction concerning
warrants:
Shares voted "For" ....................................... N/A 504,217,213 N/A N/A
Shares voted "Against" ................................... N/A 43,587,159 N/A N/A
Shares voted "Abstain" ................................... N/A 31,748,128 N/A N/A
Proposal to amend the fundamental restriction concerning
investment in State Tax Exempt Securities:
Shares voted "For" ....................................... N/A N/A 43,970,019 N/A
Shares voted "Against" ................................... N/A N/A 618,856 N/A
Shares voted "Abstain" ................................... N/A N/A 721,269 N/A
Proposal to amend the fundamental restriction concerning
investment in Municipal Securities:
Shares voted "For" ....................................... N/A 504,217,213 43,970,019 N/A
Shares voted "Against" ................................... N/A 43,559,021 618,856 N/A
Shares voted "Abstain" ................................... N/A 31,776,266 721,269 N/A
Proposal to amend the fundamental restriction concerning
investment in Money Market securities:
Shares voted "For" ....................................... 430,414,206 N/A N/A N/A
Shares voted "Against" ................................... 16,456,782 N/A N/A N/A
Shares voted "Abstain" ................................... 42,013,371 N/A N/A N/A
Proposal to amend the fundamental restriction concerning
illiquid securities:
Shares voted "For" ....................................... N/A 504,199,839 N/A N/A
Shares voted "Against" ................................... N/A 43,604,533 N/A N/A
Shares voted "Abstain" ................................... N/A 31,748,128 N/A N/A
Proposal 4 - Changes to investment objective:
Shares voted "For" ....................................... N/A 501,142,661 43,763,630 N/A
Shares voted "Against" ................................... N/A 51,517,220 825,245 N/A
Shares voted "Abstain" ................................... N/A 26,892,619 721,269 N/A
</TABLE>
FEDERAL INCOME TAX STATUS OF DIVIDENDS (Unaudited)
100% of the dividends distributed by the Municipal Money Market Fund and the
Pennsylvania Municipal Money Market Fund for
the five months ended January 31, 1998 are exempt from federal income tax,
other than alternative minimum tax.
44
<PAGE>
3/98
BULK RATE
U.S. POSTAGE
PAID
CHARLOTTE, NC
PERMIT NO. 136
201 S. College St.
Charlotte, NC 28288
