<PAGE>
PAGE 1
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
Dear Shareholders:
It often seems that when international investment
diversification makes the most intellectual sense, it makes the
least emotional sense.
Like many international and global funds, the Evergreen
Global Opportunities Fund has provided positive returns during
the past year. However, the returns for the 12 months that
ended on October 31, 1997 were held back by the market setbacks
during October when several Asian currencies were devalued and
local stock markets suffered severe losses. As a result of both
this volatility and the positive investment environment in the
United States, most domestic equity funds showed superior
returns for the period.
It is easy to see why some mutual fund shareholders might
question the value of investing in a global or international
fund. It just seems more comfortable to invest in large U.S.
companies, which have been the market leaders for the past
three years.
(Photo of
WILLIAM M. ENNIS
appears here)
William M. Ennis
THE ADVANTAGES OF DIVERSIFICATION
The answer is simple. Over the longer term, international diversification of
part of one's investment portfolio can enhance returns and reduce volatility.
The United States stock market has had a wonderful rally for the past three
years. However, looking at present prices, many investment professionals see
more attractive values in the international markets that have been lagging the
U.S. market. In addition, the very large American companies, whose stocks have
been the best performers, may be less able to increase their future earnings by
the restructuring programs that have been helping them. Their ability to export
also is weakened by the strong U.S. dollar. Meanwhile, smaller companies, with
attractive stock valuations by historical standards, have new opportunities to
increase their earnings in a general environment of global economic growth and
low interest rates.
At Evergreen Funds, we encourage you to remain focused on your long-term goals
and to remain disciplined in your personal investment strategies. No one can
confidently say whether next year's market will follow last year's pattern, or
whether trends will reverse themselves so that last year's lagging strategy
becomes next year's winning strategy. We can say, however, that the most likely
winners in the long run are those who consistently follow long-term investment
strategies.
UPCOMING DEVELOPMENTS
In the next few weeks and months, shareholders of Evergreen and Keystone funds
will begin to notice some changes. The Evergreen Keystone Funds are becoming the
Evergreen Funds. On October 31, 1997 Keystone America Funds adopted the name of
Evergreen and in early 1998 the original Keystone Funds will take the Evergreen
name.
We believe that by putting all the funds under the umbrella name of Evergreen
Funds we will be creating a simpler and more cohesive image. Importantly, we
expect to create substantial cost savings for shareholders as a result of
consolidating prospectuses, annual reports, legal registrations and other
materials. It also will be easier for you to find all the funds of the Evergreen
Family, to which you have exchange privileges, under one heading in newspapers
and electronic services.
-- CONTINUED--
<PAGE>
PAGE 2
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
What will not change will be our commitment to provide you with the finest
investment products and shareholder services possible.
If you should have any questions about these changes or other issues affecting
your investments, we encourage you to consult your financial adviser or call
Evergreen Funds at 1-800-343-2898.
Sincerely,
/s/ William M. Ennis
William M. Ennis
MANAGING DIRECTOR
November, 1997
<PAGE>
PAGE 3
- ---------------------------------------------------------
A Discussion With
Your Fund Managers
(Photo of Margery C. Parker (Photo of Gilman Gunn
appears here) appears here)
MARGERY C. PARKER IS THE PORTFOLIO MANAGER FOR THE U.S. PORTION OF THE
FUND. MS. PARKER HAS MORE THAN 15 YEARS OF INVESTMENT MANAGEMENT
EXPERIENCE.
GILMAN GUNN IS THE SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF
INTERNATIONAL INVESTMENTS AT KEYSTONE INVESTMENT MANAGEMENT COMPANY, WITH
MORE THAN 24 YEARS OF EXPERIENCE. MR. GUNN AND THE KEYSTONE INTERNATIONAL
TEAM MANAGE THE FUND'S INTERNATIONAL INVESTMENTS.
Please note that we have changed the Fund's fiscal year end from September 30
to October 31. The next report you receive will be a semi-annual report for the
period ending April 30, 1998, which you should receive in June 1998.
Q MARGERY, AS OVERALL PORTFOLIO MANAGER, HOW WOULD YOU DESCRIBE PERFORMANCE OVER
THE YEAR?
A The Fund's performance improved dramatically over the second half of the year
as we increased our emphasis in U.S. small cap stocks, and leadership in the
stock market started to broaden to include these stocks. Unfortunately, we had a
correction in the market during the last two weeks of the fiscal year, which cut
into the returns.
For the 12-month period that ended on October 31, 1997, Class A Shares had a
total return of 4.25%; Class B Shares had a total return of 3.42%, and Class C
Shares had a total return of 3.41%. Class Y Shares had a return of 3.69% since
inception on January 13, 1997. These performance figures do not include
deduction of any sales charges, if applicable.
Relative performance was particularly strong during the second half of the
year. The total return of Class A, for example was 11.99% for the six months
ended October 31, 1999.
The Salomon Brothers EMI Extended Market Index, which is representative of
small company stocks world-wide, was 13.68% for the six months and 13.34% for
the 12 months ended October 31, 1997.
Q HOW WOULD YOU DESCRIBE THE INVESTMENT ENVIRONMENT DURING THE FISCAL YEAR?
A We really are talking about two different periods. During the first half of
the fiscal year, small company stocks were not performing well relative to large
company stocks, either in the United States or abroad. The stocks of blue chip
companies, particularly U.S. companies, were the leaders, and had been for about
two years. In addition, the Japanese market, especially the Japanese small cap
market, was not doing well.
The U.S. small company stock market probably troughed, or hit its relative
low, in the third week of April 1997. From the end of April until mid-October,
the small company stock market in the United States performed extremely well,
outperforming the large-cap stocks that had been market leaders for the previous
two years.
Q HOW DID YOU ALLOCATE ASSETS IN THIS ENVIRONMENT?
A For the last six months of the fiscal year, we gradually increased our
emphasis in U.S. small company stocks, changing the allocation in the United
States from about 40% of portfolio assets to about 60%. At the same time, we cut
back on our commitment in Japan and Asia substantially, which were poor
performing areas and did not have a good outlook. In our foreign portfolio, we
emphasized Europe and the United Kingdom, where we thought were the best
opportunities.
<PAGE>
PAGE 4
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
At the close of the fiscal year, 60.7% of portfolio assets was invested in
small company stocks in the United States, 30.4% was invested in small company
stocks outside the United States, and 9.1% was invested in cash. I would expect
to continue to emphasize the United States, with between 55% and 60% of net
assets there.
Q WHAT SECTORS OR INDUSTRIES HAVE YOU EMPHASIZED IN THE UNITED STATES?
A We like technology, in particular semiconductor equipment and
telecommunications stocks. We are seeing a great deal of innovation in the
semiconductor industry, and we have invested in several companies that provide
the equipment for semiconductor fabrication plants. Two good examples in the
portfolio are PRI Automation, Inc., and Asyst Technologies, Inc. We favor
telecommunications stocks because of the continually growing need to move data
electronically. One stock that we favor is Natural Microsystems, Corp., a leader
in computer telephony, which emphasizes the convergence of voice, data and
video.
Among the other areas that we have emphasized are the oil services industry,
to take advantage of the favorable market environment for oil exploration and
production; financial services; and healthcare.
Q MARGERY, HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT IN THE UNITED STATES
HEADING INTO A NEW FISCAL YEAR?
A We continue to see excellent relative values in small company stocks in the
United States, especially as the larger companies begin experiencing slowdowns
in earnings growth. We have a very strong economy, with moderate growth, low
inflation, and stable interest rates. The market did correct in late October.
However, we think this was just an interruption of the trend that began in late
April when market leadership started to broaden to include smaller company
stocks. Right now, small company stocks, on both a relative and historical
basis, are priced attractively compared to large company stocks. In early
October 1997, on a price/earnings basis, small cap stocks were trading at about
1.28 times the prices of large cap stocks. Historically, this is a relatively
low price.
I believe the market has broadened out, valuations are favorable and we have a
strong economic underpinning. In this environment, I think small company stocks
have the potential to continue to do very well.
Q GILMAN, YOU TOOK RESPONSIBILITY FOR THE FOREIGN PORTION OF THE PORTFOLIO ON
JUNE 1. WHAT CHANGES HAVE TAKEN PLACE SINCE THEN?
A The big decision was to reduce the international component and increase the
U.S. portion of the portfolio. We made this change as the U.S. small company
stock market started improving, and this has helped performance. We also have
reduced the emphasis on Japanese small company stocks from about 10% of the
portfolio to about 3.0%. We are fairly light in the rest of Asia.
Approximately 25% of the entire portfolio is in European small company stocks,
where we see the best opportunities. Within Europe, the largest weighting is in
the United Kingdom-- about 10% of the overall portfolio.
In investing in foreign small company stocks, our strategy tends to be more
stock-specific than emphasis on particular industries. We are trying to find
companies that have a dominance in their market niches.
Q WHAT ARE SOME OF THE COMPANIES THAT EXEMPLIFY THIS STRATEGY?
A One good example is Ashtead, a company with dominant market share in the
leasing business in the United Kingdom. This company, involved in leasing heavy
equipment, now is expanding into the United States. Another example is the
Berkeley Group, also in the United Kingdom. This real estate development company
currently is embarking on a series of joint
<PAGE>
PAGE 5
- ---------------------------------------------------------
ventures with local governments in the U.K., in which the governments supply the
land and buildings, and Berkeley renovates the property, and they split
the profits.
Q GILMAN, WHAT IS YOUR OUTLOOK FOR SMALL COMPANY STOCKS OUTSIDE THE UNITED
STATES?
A Small company stocks have underperformed large company stocks for a
significant period of time. For that to change, we need two things: a better
economy and a better stock market. We are seeing improvement in both in Europe
this year. Because large company stocks have outperformed small company stocks
for so long, we think there are more investment opportunities in small company
stocks in Europe, and that's where we are focusing our attention.
TOP 10 HOLDINGS
AS OF OCTOBER 31, 1997
<TABLE>
<CAPTION>
PERCENTAGE OF
STOCK (COUNTRY) INDUSTRY NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------
ACC Corp. (U.S.) Telecommunication
Services &
Equipment 1.6%
- ------------------------------------------------------------------
Health Management Associates, Healthcare Products
Inc. (U.S.) & Services 1.5%
- ------------------------------------------------------------------
BJ Services Co., Inc. (U.S.) Oil Field Services 1.4%
- ------------------------------------------------------------------
First Alliance Co. (U.S.) Finance & Insurance 1.4%
- ------------------------------------------------------------------
Natural Microsystems Corp. Information
(U.S.) Services &
Technology 1.3%
- ------------------------------------------------------------------
Mcleod USA, Inc. (U.S.) Telecommunication
Services &
Equipment 1.1%
- ------------------------------------------------------------------
Univision Communications, Telecommunication
Inc. (U.S.) Services &
Equipment 1.1%
- ------------------------------------------------------------------
TCF Financial Corp. (U.S.) Finance & Insurance 1.1%
- ------------------------------------------------------------------
Kuoni Reisen Holding AG Leisure & Tourism 1.1%
(Switzerland)
- ------------------------------------------------------------------
Falcon Drilling, Inc. (U.S.) Oil/Energy 1.1%
- ------------------------------------------------------------------
</TABLE>
International investing involves increased risk and volatility.
Funds that invest in stocks of small companies, also called small cap stocks,
involve certain risks and therefore, may not be appropriate for all investors.
Although they may offer the potential for greater long-term returns, they also
may experience greater price volatility due to their limited focus on a
particular industry, market, product, or service, or because they invest in
smaller, less established companies.
<PAGE>
PAGE 6
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
Growth of an Investment
(A graph appears below with the following information:)
Growth of an investment in
Evergreen Global Opportunities Fund, Class A
3/88 10/89 10/91 10/93 10/95 10/97
(In Thousands)
Dividend $9,525 $10,681 $13,523 $21,010 $26,610 $28,782
Reinvestment
Initial $9,525 $10,335 $12,583 $17,259 $21,860 $22,774
Reinvestment
A $10,000 investment in Evergreen Global Opportunities Fund Class A made on
March 16, 1988 with all distributions reinvested was worth $28,782 on October
31, 1997. Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
HISTORICAL PERFORMANCE
<S> <C> <C> <C> <C>
CLASS A CLASS B CLASS C CLASS Y
- ----------------------------------------------------------------
CUMULATIVE RETURNS
1-Year w/o Sales
Charge 4.25 % 3.42% 3.41% --
1-Year with Sales
Charge -0.70 % -1.47% 2.44% --
5 Year* 99.63 % -- -- --
Life of Class* 187.82 % 70.29% 72.57% 3.69%
AVERAGE ANNUAL
RETURNS
1-Year w/o Sales
Charge 4.25 % 3.42% 3.41% --
1-Year with Sales
Charge -0.70 % -1.47% 2.44% --
5 Year* 14.83 % -- -- --
Life of Class* 11.60 % 11.86% 12.17% --
(Class Y shares were introduced on January 13, 1997.)
* Adjusted for maximum sales charge.
</TABLE>
(A graph appears below with the following information:)_
Comparison of a change in value of a $10,000 investment
in Evergreen Global Opportunities Fund Class A, the Morgan
Stanley Capital International World Index and the Consumer
Price Index.
3/88 10/89 10/91 10/93 10/95 10/97
(In Thousands)
Class A Shares $10,000 $10,680 $13,520 $21,010 $26,610 $28,780
CPI $10,000 $10,920 $11,950 $12,670 $13,370 $14,010
MSIWI $10,000 $13,000 $12,840 $14,870 $16,950 $22,340
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholder
investing in different classes. The Morgan Stanley Capital International World
Index and the Consumer Price Index are from February 28, 1988.
Class A shares began operations on March 16, 1988. Class B and Class C shares
began operations on February 1, 1993. Class Y shares began operations on January
13, 1997. Class A share performance is reported at the current maximum front-end
sales charge of 4.75%.
Class B shares purchased after January 1, 1997 are subject to a contingent
deferred sales charge (CDSC) that declines from 5% to 1% over six years after
the month purchased. Performance assumes that shares were redeemed after the end
of a one-year holding period and reflect the deduction of a 5% CDSC.
Class C shares are subject to a 1% CDSC for 12 months after the months
purchased. Performance assumes that shares were redeemed after the end of a
one-year holding period and reflect the deduction of a 1% CDSC.
Class Y shares are not subject to a sales load. Performance assumes that
shares were redeemed after the end of a one-year holding period.
<PAGE>
PAGE 7
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- 89.6%
<C> <C> <S> <C>
AUSTRALIA-- 0.3%
FINANCE & INSURANCE-- 0.2%
50,638 QBE Insurance Group Ltd....... $ 235,604
306,979 Tyndall Australia Ltd......... 494,372
------------
729,976
------------
HEALTHCARE PRODUCTS &
SERVICES-- 0.1%
350,441 Sonic Healthcare Ltd.......... 369,671
------------
TOTAL AUSTRALIA............... 1,099,647
------------
AUSTRIA-- 0.4%
OTHER-- 0.4%
40,470 Julius Meinl International.... 1,300,804
------------
BRAZIL-- 0.2%
FOOD & BEVERAGE
PRODUCTS-- 0.2%
19,400 Panamerican Beverages, Inc.,
ADR......................... 601,400
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.0%
48,084 Compania Riograndense de
Telecommunica............... 37,073
------------
TOTAL BRAZIL.................. 638,473
------------
FRANCE-- 3.1%
ADVERTISING & RELATED
SERVICES-- 0.2%
11,500 Dauphin O.T.A................. 797,469
------------
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.3%
14,111 Sylea......................... 1,247,624
------------
HEALTHCARE PRODUCTS &
SERVICES-- 0.1%
1,000 Ile de France Pharmaceutique.. 206,302
------------
INFORMATION SERVICES &
TECHNOLOGY-- 0.1%
4,700 * ATOS S.A...................... 527,994
------------
MACHINERY-- DIVERSIFIED-- 1.4%
8,475 GFI Industries S.A............ 1,410,480
15,460 Norbert Destressangle......... 1,581,312
19,400 Societe Technip............... 2,051,575
------------
5,043,367
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
FRANCE-- CONTINUED
OTHER-- 0.8%
12,655 Grandoptical Photoservice..... $ 2,038,139
2,937 Le Carbone Lorraine........... 779,025
------------
2,817,164
------------
TEXTILE & APPAREL-- 0.1%
2,400 Deveaux S.A................... 237,160
------------
TRANSPORTATION-- 0.1%
6,410 Faiveley S.A.................. 205,582
------------
TOTAL FRANCE.................. 11,082,662
------------
GERMANY-- 1.8%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.8%
215,000 SAI Automotive AG............. 2,868,662
------------
ELECTRICAL EQUIPMENT &
SERVICES-- 0.1%
19,600 * Leica Camera AG............... 454,809
------------
OTHER-- 0.9%
107,150 Boewe Systec AG............... 3,170,119
------------
TOTAL GERMANY................. 6,493,590
------------
IRELAND-- 0.7%
DIVERSIFIED COMPANIES-- 0.7%
380,247 DCC PLC....................... 2,430,377
------------
ITALY-- 1.0%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.3%
107,500 Brembo SPA.................... 1,069,920
------------
ELECTRICAL EQUIPMENT &
ELECTRONICS-- 0.1%
5,000 Ericsson SPA.................. 200,236
------------
FINANCE & INSURANCE-- 0.5%
111,300 Mediolanum SPA................ 1,867,053
------------
INDUSTRIAL SPECIALTY PRODUCTS &
SERVICES-- 0.1%
171,000 Interpump Group SPA........... 520,676
------------
TOTAL ITALY................... 3,657,885
------------
JAPAN-- 3.0%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.5%
308,000 Koito Manufacturing Co. Ltd... 1,842,626
------------
</TABLE>
<PAGE>
PAGE 8
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
JAPAN-- CONTINUED
CHEMICAL & AGRICULTURAL
PRODUCTS-- 0.5%
229,000 Sumitomo Bakelite Co., Ltd.... $ 1,596,435
------------
CONSUMER PRODUCTS &
SERVICES-- 0.3%
165,000 Toshiba Ceramics Co., Ltd..... 1,059,784
------------
ELECTRICAL EQUIPMENT &
SERVICES-- 0.2%
111,000 Hitachi Cable, Ltd............ 737,848
------------
HEALTHCARE PRODUCTS &
SERVICES-- 0.1%
56,000 Sanyo Chemical Industries..... 444,370
------------
INFORMATION SERVICES &
TECHNOLOGY-- 0.5%
101,000 Aucnet, Inc................... 1,695,222
------------
METALS & MINING-- 0.6%
128,000 Sumitomo Sitix Corp........... 2,254,757
------------
RETAILING & WHOLESALE-- 0.3%
26,500 Familymart Co., Ltd........... 1,164,811
------------
TOTAL JAPAN................... 10,795,853
------------
MEXICO-- 0.8%
BANKS-- 0.0%
53,400 Grupo Finance Banamex Accival
SA de CV, Series B.......... 105,717
------------
BUILDING, CONSTRUCTION &
FURNISHINGS-- 0.2%
137,900 * Corp. Geo SA de CV, Class B... 743,361
------------
FOOD & BEVERAGE PRODUCTS-- 0.4%
72,500 Fomento Economico Mexicano,
Class B..................... 510,137
812,000 Grupo Industrial Maseca,
Class B..................... 784,401
------------
1,294,538
------------
HEALTHCARE PRODUCTS &
SERVICES-- 0.1%
247,100 Grupo Casa Autrey SA de CV.... 442,039
------------
MANUFACTURING-- DISTRIBUTING-- 0.1%
651,000 * Empaques Ponderosa SA,
Class B..................... 489,124
------------
TOTAL MEXICO.................. 3,074,779
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
NETHERLANDS-- 2.0%
ENGINEERING-- 1.0%
102,612 Fugro N.V..................... $ 3,620,356
------------
MANUFACTURING--
DISTRIBUTING-- 0.6%
65,600 Koninklijke Ahrend Groep NV... 2,186,104
------------
RETAILING & WHOLESALE-- 0.4%
29,208 Ceteco Holding N.V............ 1,384,052
------------
TOTAL NETHERLANDS............. 7,190,512
------------
NORWAY-- 0.3%
BUSINESS EQUIPMENT &
SERVICES-- 0.1%
22,100 * Tandberg ASA.................. 348,410
------------
OIL FIELD SERVICES-- 0.1%
9,600 Smedvig ASA................... 290,309
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.1%
43,063 * Tandberg Television ASA....... 404,252
------------
TOTAL NORWAY.................. 1,042,971
------------
PERU-- 0.1%
MACHINERY-- DIVERSIFIED-- 0.1%
20,214 Ferreyros SA, ADR **.......... 414,387
------------
PORTUGAL-- 0.5%
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.5%
19,400 * Telecel Comunicacaoes Pessoais
SA.......................... 1,754,109
------------
SOUTH AFRICA-- 0.1%
FINANCE & INSURANCE-- 0.1%
8,775 Liberty Life Association of
Africa, Ltd................. 218,805
------------
SPAIN-- 0.5%
FOOD & BEVERAGE PRODUCTS-- 0.4%
4,880 Campofrio Alimentacion SA..... 235,496
18,150 * Telepizza..................... 1,246,432
------------
1,481,928
------------
LEISURE & TOURISM-- 0.1%
4,900 Sol Melia SA.................. 148,041
------------
MISCELLANEOUS-- 0.0%
7,400 * Baron de Ley SA............... 139,892
------------
TOTAL SPAIN................... 1,769,861
------------
</TABLE>
<PAGE>
PAGE 9
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
SWEDEN-- 1.0%
HEALTHCARE PRODUCTS &
SERVICES-- 0.6%
116,400 Getinge Industrier AB, Class
B........................... $ 2,004,780
------------
RETAILING & WHOLESALE-- 0.4%
56,200 Lindex AB..................... 1,583,225
------------
TOTAL SWEDEN.................. 3,588,005
------------
SWITZERLAND-- 3.1%
ADVERTISING & RELATED
SERVICES-- 0.2%
1,525 Societe Generale
D'Affichage................. 571,773
------------
BUSINESS EQUIPMENT &
SERVICES-- 0.1%
1,050 Danzas Holding AG............. 209,963
------------
DIVERSIFIED COMPANIES-- 0.2%
4,000 Valora Holding AG............. 856,990
------------
ELECTRICAL EQUIPMENT &
SERVICES-- 0.5%
3,725 Phoenix Mecano AG............. 1,928,673
------------
FOOD & BEVERAGE PRODUCTS-- 0.5%
1,150 Lindt & Spruengli AG.......... 1,938,225
------------
LEISURE & TOURISM-- 1.1%
1,000 Kuoni Reisen Holding AG....... 3,785,038
------------
RETAILING & WHOLESALE-- 0.5%
16,000 * Tag Heuer International SA.... 1,828,245
------------
TOTAL SWITZERLAND............. 11,118,907
------------
UNITED KINGDOM-- 10.2%
ADVERTISING & RELATED
SERVICES-- 0.9%
2,431,600 Aegis Group PLC............... 2,488,567
156,500 Dorling Kindersley Holdings
PLC......................... 748,319
------------
3,236,886
------------
BUILDING, CONSTRUCTION &
FURNISHINGS-- 0.7%
208,310 Berkeley Group (The) PLC...... 2,271,700
52,957 Berkeley Group (The) PLC
(New)....................... 72,856
------------
2,344,556
------------
BUSINESS EQUIPMENT &
SERVICES-- 1.3%
553,916 Capita Group PLC.............. 2,862,346
486,132 Corporate Services Group PLC.. 1,826,963
------------
4,689,309
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
UNITED KINGDOM-- CONTINUED
ELECTRICAL EQUIPMENT &
SERVICES-- 1.4%
645,958 Astec (BSR) PLC............... $ 1,376,371
90,400 Critchley Group PLC........... 1,031,347
581,900 Pressac Holdings PLC.......... 2,753,119
------------
5,160,837
------------
FINANCE & INSURANCE-- 0.9%
550,804 Ashtead Group PLC............. 3,234,392
------------
FOOD & BEVERAGE PRODUCTS-- 0.4%
123,063 Compass Group PLC............. 1,300,755
------------
HEALTHCARE PRODUCTS &
SERVICES-- 0.4%
278,703 Westminster Healthcare
Holdings, PLC............... 1,472,922
------------
INFORMATION SERVICES &
TECHNOLOGY-- 1.7%
56,657 * Oxford Molecular Group PLC.... 230,036
361,100 Parity PLC.................... 3,495,673
210,498 Sage Group PLC (The).......... 2,521,586
------------
6,247,295
------------
LEISURE & TOURISM-- 0.6%
168,770 Millennium & Copthorne Hotels
PLC......................... 1,088,727
517,614 Vardon PLC.................... 937,902
------------
2,026,629
------------
METALS & MINING-- 0.4%
115,205 Powerscreen International
PLC......................... 1,345,266
------------
MANUFACTURING--
DISTRIBUTING-- 0.6%
383,900 Renishaw PLC.................. 2,254,310
------------
RETAILING & WHOLESALE-- 0.9%
195,800 Games Workshop Group PLC...... 2,250,250
242,303 Harvey Nichols PLC............ 995,984
------------
3,246,234
------------
TOTAL UNITED KINGDOM.......... 36,559,391
------------
UNITED STATES-- 60.5%
BUSINESS EQUIPMENT &
SERVICES-- 1.2%
79,200 * Equity Corp., International... 1,613,700
79,200 G & K Services, Inc., Class
A........................... 2,821,500
------------
4,435,200
------------
</TABLE>
<PAGE>
PAGE 10
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
UNITED STATES-- CONTINUED
ELECTRICAL EQUIPMENT &
SERVICES-- 2.4%
89,100 * Credence Systems Corp......... $ 2,622,881
61,500 * Electroglas, Inc.............. 1,153,125
68,300 General Cable Corp............ 2,211,212
49,500 * Kulicke & Soffa Industries,
Inc......................... 1,268,438
25,600 * Lattice Semiconductor Corp.... 1,277,600
------------
8,533,256
------------
FINANCE & INSURANCE-- 7.5%
60,900 Capital Re Corp............... 3,589,294
39,300 CMAC Investment Corp.......... 2,149,219
100,000 Dime Community Bancorp, Inc... 2,131,250
100,000 Everen Capital Corp........... 3,775,000
150,000 * First Alliance Co............. 4,968,750
69,300 * Frontier Insurance Group...... 2,334,544
43,600 HCC Insurance Holdings, Inc... 1,019,150
50,000 Investors Financial Services
Corp........................ 2,159,375
40,000 Penn-America Group, Inc....... 750,000
67,900 TCF Financial Corp............ 3,861,812
------------
26,738,394
------------
FOOD & BEVERAGE PRODUCTS-- 0.1%
15,100 Worthington Foods, Inc........ 345,413
------------
HEALTHCARE PRODUCTS &
SERVICES-- 13.5%
69,800 * Agouron Pharmaceuticals,
Inc......................... 3,180,262
162,600 * Amylin Pharmaceuticals, Inc... 1,366,856
118,700 * Bioreliance Corporation....... 2,566,887
92,686 * Concentra Managed Care, Inc... 3,018,088
24,000 * Cyberonics, Inc............... 324,000
80,000 * Cytyc Corp.................... 1,890,000
74,200 * Dura Pharmaceuticals, Inc..... 3,594,062
80,000 * Guilford Pharmaceuticals,
Inc......................... 1,935,000
217,906 * Health Management Associates,
Inc., Class A............... 5,311,447
160,000 * Idexx Laboratories, Inc....... 2,540,000
20,000 * Incyte Pharmaceuticals,
Inc......................... 1,585,000
30,000 * Kos Pharmaceuticals, Inc...... 1,070,625
138,500 * Lifecore Biomedical, Inc...... 2,960,437
111,000 * Neurogen Corp................. 2,303,250
228,200 * Norland Medical Systems,
Inc......................... 1,526,088
145,800 * Perclose, Inc................. 3,553,875
56,600 * Spine-Tech, Inc............... 1,758,138
60,000 * Synopsys, Inc................. 2,332,500
121,467 * Total Renal Care Holdings,
Inc......................... 3,742,692
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
UNITED STATES-- CONTINUED
62,500 * Wesley Jessen Visioncare,
Inc......................... $ 1,812,500
------------
48,371,707
------------
INFORMATION SERVICES &
TECHNOLOGY-- 11.8%
69,300 * Asyst Technologies, Inc....... 2,016,197
75,000 * Avid Technology, Inc.......... 2,139,844
50,000 * Brooks Automation, Inc........ 1,109,375
60,000 * Cognex Corp................... 1,595,625
112,000 * Computer Products, Inc........ 3,038,000
80,300 * Corsair Communications, Inc... 1,836,863
89,000 * Discreet Logic, Inc........... 1,741,063
30,000 * EMC Corp...................... 1,680,000
56,500 * International
Telecommunication Data
Systems, Inc................ 1,483,125
43,100 * Intuit, Inc................... 1,400,750
31,000 * JD Edwards & Co............... 1,052,063
65,000 * JDA Software Group, Inc....... 2,027,187
25,000 * Manugistics Group, Inc........ 890,625
151,000 * Metacreations Corp............ 2,198,937
40,000 * Microchip Technology, Inc..... 1,587,500
98,900 * Natural Microsystems Corp..... 4,747,200
50,000 * Peoplesoft, Inc............... 3,140,625
139,600 * Project Software &
Development, Inc............ 3,219,525
78,700 * Splash Technology Holdings,
Inc......................... 3,275,887
89,100 * Vantive Corp.................. 2,260,912
------------
42,441,303
------------
LEISURE & TOURISM-- 0.5%
60,400 * Vail Resorts, Inc............. 1,679,875
------------
MANUFACTURING--
DISTRIBUTING-- 2.1%
66,500 BMC Industries, Inc........... 2,140,469
99,000 Roper Industries, Inc......... 2,642,062
91,200 TriMas Corp................... 2,667,600
------------
7,450,131
------------
OIL/ENERGY-- 3.6%
79,200 ENSCO International, Inc...... 3,331,350
103,800 * Falcon Drilling, Inc.......... 3,775,725
99,000 KCS Energy Corp............... 2,604,938
49,500 * Ocean Energy, Inc............. 3,056,625
------------
12,768,638
------------
</TABLE>
<PAGE>
PAGE 11
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
UNITED STATES-- CONTINUED
OIL FIELD SERVICES-- 3.0%
93,100 * Basin Exploration, Inc........ $ 1,829,997
59,400 * BJ Services Co., Inc.......... 5,034,150
30,000 Devon Energy Corp............. 1,342,500
64,300 * Newpark Resources, Inc........ 2,668,450
------------
10,875,097
------------
OTHER-- 0.8%
11,800 * Megabios Corp................. 174,788
14,900 Oakwood Homes Corp............ 392,056
87,400 * Rental Service Corp........... 2,337,950
------------
2,904,794
------------
PUBLISHING, BROADCASTING &
ENTERTAINMENT-- 0.9%
46,300 Central Newspapers, Inc.,
Class A..................... 3,041,331
------------
RETAILING & WHOLESALE-- 2.0%
100,000 * Action Performance Cos.,
Inc......................... 2,550,000
70,000 * Central Garden & Pet Co....... 1,820,000
150,000 * Fritz Comp, Inc............... 2,048,437
28,900 Stanhome, Inc................. 807,394
------------
7,225,831
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 6.5%
148,500 * ACC Corp...................... 5,902,875
60,000 * Jacor Communications, Inc..... 2,505,000
111,100 * Mcleod USA, Inc............... 4,117,644
64,400 * Ortel Corp.................... 1,497,300
24,100 * Premiere Technologies, Inc.... 816,387
99,100 * Smartalk Teleservices, Inc.... 2,127,553
69,300 * U.S. Cellular Corp............ 2,252,250
64,300 * Univision Communications,
Inc., Class A............... 3,986,600
------------
23,205,609
------------
TEXTILE & APPAREL-- 0.6%
59,600 * Stage Stores, Inc............. 2,160,500
------------
AUTOMOBILES-- 0.7%
67,000 * PRI Automation, Inc........... 2,554,375
------------
BANKS-- 0.1%
6,000 Westamerica Bancorp........... 525,000
------------
BUSINESS SERVICES-- 0.2%
31,700 Market Facts, Inc............. 651,831
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- CONTINUED
<C> <C> <S> <C>
UNITED STATES-- CONTINUED
DRUGS & HEALTH CARE-- 0.4%
60,000 * Vivus, Inc.................... $ 1,575,000
------------
MISCELLANEOUS-- 1.2%
45,600 * Brylane, Inc.................. 1,980,750
34,400 * Cognicase, Inc................ 432,150
80,000 * ICG Communications, Inc....... 1,825,000
2,400 * Jevic Transportation, Inc..... 41,850
------------
4,279,750
------------
OTHER UTILITIES-- 0.3%
38,600 * Metromedia Fiber Network,
Inc., Class A............... 921,575
------------
RETAIL TRADE-- 0.6%
75,000 * Michaels Stores, Inc.......... 2,242,969
------------
TELEPHONE-- 0.5%
40,000 * Intermedia Communications,
Inc......................... 1,810,000
------------
TOTAL UNITED STATES........... 216,737,579
------------
TOTAL COMMON STOCKS
(COST-- $264,529,604)....... 320,968,597
------------
<CAPTION>
PREFERRED STOCKS-- 1.3%
<C> <C> <S> <C>
BRAZIL-- 0.8%
MANUFACTURING-- DISTRIBUTING-- 0.3%
72,696,030 Embraer-Empresa Brasiliera de
Aeronautica................. 982,513
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.5%
1,400,800 Compania Riograndense de
Telecomunica................ 1,080,031
8,227,979 Telecomunicacoes de Rio de
Janiero SA.................. 783,652
365,560 Telecomunicacoes de Rio de
Janiero SA, Rights.......... 4,974
------------
1,868,657
------------
UTILITIES-- TELEPHONE-- 0.0%
198,860 Telesponsora Telefonos de Sao
Paulo, Rights............... 180
------------
TOTAL BRAZIL.................. 2,851,350
------------
GERMANY-- 0.3%
HEALTHCARE PRODUCTS &
SERVICES-- 0.3%
35,250 Biotest AG.................... 1,042,899
------------
</TABLE>
<PAGE>
PAGE 12
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
PREFERRED STOCKS-- CONTINUED
<C> <C> <S> <C>
UNITED STATES-- 0.2%
OTHER-- 0.2%
52,200 * CorporateFamily Solutions,
Inc......................... $ 779,738
------------
TOTAL PREFERRED STOCKS
(COST-- $6,102,402)........... 4,673,987
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
REPURCHASE AGREEMENT-- 6.4%
<C> <C> <S> <C>
UNITED STATES-- 6.4%
FINANCIAL SERVICES-- 6.4%
$23,117,000 Keystone Joint Repurchase
Agreement, Investments in
repurchase agreements in a
joint trading account
purchased 10/31/97, 5.73%,
maturity value $23,127,887
(a) (Cost-- $23,117,000).... $ 23,117,000
------------
TOTAL REPURCHASE AGREEMENT
(COST-- $23,117,000).......... 23,117,000
------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
TOTAL INVESTMENTS--
(COST $293,749,006).................... 97.3% 348,759,584
OTHER ASSETS AND
LIABILITIES-- NET...................... 2.7% 9,610,962
-------- ------------
NET ASSETS............................... 100% $358,370,546
-------- ------------
</TABLE>
* Non-income producing securities.
** Securities that may be resold to "qualified institutional buyers" under Rule
144A of the Securities Act of 1933. These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(a) The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices plus accrued interest at October
31, 1997.
LEGEND OF PORTFOLIO ABBREVIATIONS:
ADR-- American Depository Receipts
<PAGE>
PAGE 13
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- OCTOBER 31, 1997
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Buy:
<S> <C> <C> <C> <C> <C>
UNREALIZED
EXCHANGE U.S. VALUE AT IN EXCHANGE APPRECIATION
DATE CONTRACTS TO RECEIVE OCTOBER 31, 1997 FOR U.S. $ (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------------------
11/24/97 7,780,298 German Marks $4,519,771 $4,342,896 $ 176,875
11/6/97 343,728,100 Italian Lira 203,029 204,278 (1,249)
11/24/97 10,336,806 Netherlands Guilder 5,331,824 5,121,795 210,029
11/4/97 2,037,172 Norwegian Krone 291,967 291,441 526
11/24/97 10,120,022 Swiss Franc 7,246,133 6,862,428 383,705
11/4/97 20,236,554 Spanish Peseta 139,111 139,803 (692)
<CAPTION>
Forward Foreign Currency Exchange Contracts to Sell:
CONTRACTS TO DELIVER
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
11/4/97 623,465 Argentine Peso $ 623,843 $ 623,596 $ (247)
1/26/98 825,270 Australian Dollar 581,632 597,000 15,368
11/4/97 143,091 Brazilian Real 129,794 129,882 88
11/4/97 1,199,344 Brazilian Real 1,087,889 1,088,630 741
11/4/97 1,649,466 Brazilian Real 1,496,182 1,497,201 1,019
11/4/97 399,123 Brazilian Real 362,032 362,279 247
10/31/97 938,396 Brazilian Real 851,192 851,771 579
11/4/97 143,712 British Pound Sterling 241,113 239,223 (1,890)
11/4/97 124,750 British Pound Sterling 209,299 207,658 (1,641)
11/4/97 189,969 British Pound Sterling 318,721 316,300 (2,421)
11/4/97 55,688 British Pound Sterling 93,431 92,721 (710)
11/4/97 313,372 British Pound Sterling 525,760 524,929 (831)
1/26/98 34,567,058 French Franc 6,023,132 5,791,000 (232,132)
11/28/97 601,390 French Franc 104,259 103,010 (1,249)
11/28/97 1,391,732 French Franc 241,275 238,384 (2,891)
11/28/97 269,190 French Franc 46,667 45,574 (1,093)
11/24/97 7,780,298 German Marks 4,519,771 4,219,800 (299,971)
11/4/97 533,322,219 Italian Lira 315,016 311,884 (3,132)
1/28/98 995,321,600 Japanese Yen 8,378,468 8,320,000 (58,468)
11/3/97 4,805,640 Mexican Peso 573,123 580,286 7,163
11/3/97 1,778,745 Mexican Peso 212,134 214,785 2,651
11/3/97 7,184,228 Mexican Peso 856,795 867,503 10,708
11/3/97 2,057,325 Mexican Peso 245,358 248,424 3,066
11/3/97 6,349,993 Mexican Peso 757,304 766,769 9,465
11/3/97 101,842 Mexican Peso 12,146 12,298 152
11/3/97 4,808,764 Mexican Peso 573,496 580,663 7,167
11/24/97 10,336,806 Netherlands Guilder 5,331,824 4,975,000 (356,824)
11/24/97 10,120,022 Swiss Franc 7,246,133 6,710,000 (536,133)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 14
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
<CAPTION>
COMMON STOCKS-- 92.7%
<C> <C> <S> <C>
ARGENTINA-- 0.4%
OIL / ENERGY-- 0.2%
104,702 Perez Compancia S.A........... $ 844,067
------------
TELECOMMUNICATION SERVICES
& EQUIPMENT-- 0.2%
29,910 Telecom Argentina S.A., Class
B, ADR...................... 910,386
------------
TOTAL ARGENTINA............... 1,754,453
------------
AUSTRALIA-- 0.3%
FINANCE & INSURANCE-- 0.2%
39,500 QBE Insurance Group Ltd....... 249,215
303,700 Tyndall Australia Ltd......... 584,248
------------
833,463
------------
HEALTHCARE PRODUCTS &
SERVICES-- 0.1%
350,441 Sonic Healthcare Ltd.......... 463,013
------------
TOTAL AUSTRALIA............... 1,296,476
------------
AUSTRIA-- 0.3%
OTHER-- 0.3%
40,470 Julius Meinl International.... 1,252,941
------------
BRAZIL-- 1.3%
FOOD & BEVERAGE PRODUCTS-- 0.7%
67,912 Panamerican Beverages, Inc.,
ADR......................... 2,652,812
------------
METALS & MINING-- 0.3%
46,000 Vale do Rio Doce Navegacao
S.A......................... 1,124,860
------------
NATURAL GAS-- 0.3%
5,062,800 Petroleo Brasileiro S.A....... 1,441,827
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.0%
48,084 Compania Riograndense de
Telecommunica............... 60,569
877,079 Telecomunicacoes de Rio de
Janiero SA.................. 120,007
------------
180,576
------------
TOTAL BRAZIL.................. 5,400,075
------------
CHINA-- 0.2%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.1%
800,000 Qingling Motors Co. Ltd....... 506,591
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
CHINA-- CONTINUED
ELECTRICAL EQUIPMENT & SERVICES-- 0.1%
237,700 Heilongjiang Electric Power
Co. Ltd..................... $ 213,930
------------
TOTAL CHINA................... 720,521
------------
FRANCE-- 3.3%
ADVERTISING & RELATED SERVICES-- 0.2%
11,500 Dauphin O.T.A................. 798,631
------------
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.3%
14,111 Sylea......................... 1,343,871
------------
HEALTHCARE PRODUCTS & SERVICES-- 0.0%
1,000 Ile de France Pharmaceutique.. 207,327
------------
INFORMATION SERVICES & TECHNOLOGY-- 0.2%
5,700 * Axime......................... 616,824
------------
MACHINERY-- DIVERSIFIED-- 1.5%
8,475 GFI Industries................ 1,698,528
15,460 Norbert Destressangle......... 1,980,498
19,400 Societe Technip............... 2,465,610
------------
6,144,636
------------
OTHER-- 0.9%
14,469 Grandoptical Photo............ 2,633,986
3,937 Le Carbone Lorraine........... 1,128,147
------------
3,762,133
------------
TEXTILE & APPAREL-- 0.1%
2,900 Deveaux S.A................... 313,334
------------
TRANSPORTATION-- 0.1%
6,730 Faiveley S.A.................. 256,375
------------
TOTAL FRANCE.................. 13,443,131
------------
GERMANY-- 1.9%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.6%
215,000 SAI Automotive AG............. 2,433,572
------------
ELECTRICAL EQUIPMENT & SERVICES-- 0.1%
19,600 * Leica Camera AG............... 482,527
------------
HEALTHCARE PRODUCTS & SERVICES-- 0.3%
36,250 Biotest AG.................... 1,220,677
------------
OTHER-- 0.9%
111,150 Boewe Systec AG............... 3,648,490
------------
TOTAL GERMANY................. 7,785,266
------------
</TABLE>
<PAGE>
PAGE 15
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
<C> <C> <S> <C>
COMMON STOCKS-- CONTINUED
HONG KONG-- 0.5%
ELECTRICAL EQUIPMENT & SERVICES-- 0.0%
88,000 VTech Holdings Ltd............ $ 169,450
------------
FINANCE & INSURANCE-- 0.4%
460,000 Cosco Pacific Ltd............. 817,394
524,000 Li & Fung Ltd................. 612,846
------------
1,430,240
------------
RETAILING & WHOLESALE-- 0.1%
80,000 Dickson Concepts
International, Ltd.......... 298,268
68,000 Wing On Company International
Ltd......................... 74,257
------------
372,525
------------
TOTAL HONG KONG............... 1,972,215
------------
INDONESIA-- 0.0%
FINANCE & INSURANCE-- 0.0%
167 PT Bank Dagang Nasional
Indonesia................... 33
------------
IRELAND-- 0.6%
DIVERSIFIED COMPANIES-- 0.6%
380,247 DCC PLC....................... 2,381,632
------------
ITALY-- 0.9%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.3%
107,500 Brembo SPA.................... 1,108,536
------------
FINANCE & INSURANCE-- 0.5%
131,300 Mediolanum SPA................ 2,129,827
------------
INDUSTRIAL SPECIALTY PRODUCTS &
SERVICES-- 0.1%
171,000 Interpump Group SPA........... 500,275
------------
TOTAL ITALY................... 3,738,638
------------
JAPAN-- 5.2%
AUTOMOTIVE EQUIPMENT &
MANUFACTURING-- 0.5%
308,000 Koito Manufacturing Co. Ltd... 1,978,122
------------
CHEMICAL & AGRICULTURAL PRODUCTS-- 0.4%
229,000 Sumitomo Bakelite............. 1,624,463
------------
CONSUMER PRODUCTS & SERVICES-- 0.4%
165,000 Toshiba Ceramics.............. 1,640,839
------------
ELECTRICAL EQUIPMENT & SERVICES-- 0.2%
111,000 Hitachi Cable, Ltd............ 746,010
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
JAPAN-- CONTINUED
FOOD & BEVERAGE PRODUCTS-- 0.3%
177,000 Albis Company, Ltd............ $ 689,401
48,000 Ohsho Food Service Corp....... 537,002
------------
1,226,403
------------
HEALTHCARE PRODUCTS & SERVICES-- 0.1%
56,000 Sanyo Chemical Industries..... 413,491
------------
INFORMATION SERVICES & TECHNOLOGY-- 0.5%
101,000 Aucnet, Inc................... 2,176,183
------------
METALS & MINING-- 0.6%
128,000 Sumitomo Sitix................ 2,471,534
------------
MANUFACTURING-- DISTRIBUTING-- 1.1%
51,000 Daiwa Industries, Ltd......... 328,391
49,000 Fuji Machine Manufacturing
Co.......................... 1,778,570
118,020 Nitto Kohki Co................ 2,200,588
------------
4,307,549
------------
RETAILING & WHOLESALE-- 1.1%
46,100 Aderans Co., Ltd.............. 1,230,149
26,500 Familymart Co., Ltd........... 1,159,526
71,600 Ministop Co., Ltd............. 1,934,333
------------
4,324,008
------------
TOTAL JAPAN................... 20,908,602
------------
MEXICO-- 2.9%
BANKS-- 0.4%
445,200 Grupo Finance Banamex Accival
SA de CV, Series B.......... 1,403,784
------------
BUILDING, CONSTRUCTION &
FURNISHINGS-- 0.8%
280,000 Cemex SA de CV................ 1,679,279
245,000 * Corp. Geo SA de CV............ 1,545,045
------------
3,224,324
------------
FINANCE & INSURANCE-- 0.4%
33,800 Desc SA de CV, ADR............ 1,411,150
------------
FOOD & BEVERAGE PRODUCTS-- 0.9%
266,600 Fomento Economico Mexicano.... 2,298,867
1,032,000 Grupo Industrial Maseca, Class
B........................... 1,245,838
------------
3,544,705
------------
HEALTHCARE PRODUCTS & SERVICES-- 0.1%
254,100 * Grupo Casa Autrey SA de CV.... 578,838
------------
MANUFACTURING-- DISTRIBUTING-- 0.3%
1,442,000 * Empaques Ponderosa SA......... 1,299,099
------------
TOTAL MEXICO.................. 11,461,900
------------
</TABLE>
<PAGE>
PAGE 16
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
<C> <C> <S> <C>
COMMON STOCKS-- CONTINUED
NETHERLANDS-- 2.1%
ENGINEERING-- 1.1%
132,612 Fugro N.V..................... $ 4,630,726
------------
MANUFACTURING-- DISTRIBUTING-- 0.6%
70,600 Koninklijke Ahrend Groep NV... 2,429,834
------------
RETAILING & WHOLESALE-- 0.4%
29,208 Ceteco Holding N.V............ 1,533,556
------------
TOTAL NETHERLANDS............. 8,594,116
------------
NORWAY-- 0.2%
BUSINESS EQUIPMENT & SERVICES-- 0.1%
22,100 * Tandberg ASA.................. 282,983
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.1%
43,063 * Tandberg Television ASA....... 345,386
------------
TOTAL NORWAY.................. 628,369
------------
PERU-- 0.2%
FINANCE & INSURANCE-- 0.1%
14,592 Credicorp Holdings Ltd........ 277,248
------------
MACHINERY-- DIVERSIFIED-- 0.1%
20,214 Ferreyros SA **............... 439,655
------------
TOTAL PERU.................... 716,903
------------
PORTUGAL-- 0.4%
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 0.4%
19,400 * Telecel Comunicacaoes Pessoais
SA.......................... 1,574,080
------------
SOUTH AFRICA-- 0.1%
FINANCE & INSURANCE-- 0.1%
8,775 Liberty Life Association of
Africa, Ltd................. 256,067
------------
SPAIN-- 0.5%
FOOD & BEVERAGE PRODUCTS-- 0.5%
4,880 Campofrio Alimentacion SA..... 223,289
24,150 * Telepizza..................... 1,682,589
------------
1,905,878
------------
LEISURE & TOURISM-- 0.0%
4,900 Sol Melia SA.................. 189,737
------------
TOTAL SPAIN................... 2,095,615
------------
SWEDEN-- 1.3%
HEALTHCARE PRODUCTS & SERVICES-- 0.7%
151,400 Getinge Industrier AB......... 2,843,427
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
SWEDEN-- CONTINUED
RETAILING & WHOLESALE-- 0.6%
76,200 Lindex AB..................... $ 2,179,295
------------
TOTAL SWEDEN.................. 5,022,722
------------
SWITZERLAND-- 3.1%
ADVERTISING & RELATED SERVICES-- 0.1%
1,525 Societe Generale
D'Affichage................. 559,921
------------
BUSINESS EQUIPMENT & SERVICES-- 0.1%
1,350 Danzas Holding AG............. 288,212
------------
DIVERSIFIED COMPANIES-- 0.2%
4,000 Valora Holding AG............. 851,210
------------
ELECTRICAL EQUIPMENT & SERVICES-- 0.6%
4,225 Phoenix Mecano AG............. 2,289,123
------------
FOOD & BEVERAGE PRODUCTS-- 0.5%
1,150 Lindt & Spruengli AG.......... 1,996,528
------------
LEISURE & TOURISM-- 1.0%
1,000 Kuoni Reisen AG............... 3,981,023
------------
RETAILING & WHOLESALE-- 0.6%
18,000 * Tag Heuer International SA.... 2,413,366
------------
TOTAL SWITZERLAND............. 12,379,383
------------
UNITED KINGDOM-- 9.1%
ADVERTISING & RELATED SERVICES-- 0.8%
2,431,600 Aegis Group................... 2,568,226
176,500 Dorling Kindersley Holdings
PLC......................... 822,512
------------
3,390,738
------------
BUILDING, CONSTRUCTION &
FURNISHINGS-- 0.7%
238,310 Berkeley Group (The) PLC...... 2,859,005
------------
BUSINESS EQUIPMENT & SERVICES-- 1.1%
603,916 Capita Group PLC.............. 2,775,372
486,132 Corporate Services Group PLC.. 1,661,842
------------
4,437,214
------------
ELECTRICAL EQUIPMENT & SERVICES-- 1.2%
645,958 Astec (BSR) PLC............... 1,312,425
90,400 Critchley Group PLC........... 1,005,813
581,900 Pressac Holdings PLC.......... 2,486,532
------------
4,804,770
------------
FINANCE & INSURANCE-- 0.7%
550,804 Ashtead Group PLC............. 2,779,977
------------
FOOD & BEVERAGE PRODUCTS-- 0.5%
173,063 Compass Group PLC............. 1,903,217
------------
</TABLE>
<PAGE>
PAGE 17
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
<C> <C> <S> <C>
COMMON STOCKS-- CONTINUED
UNITED KINGDOM-- CONTINUED
HEALTHCARE PRODUCTS & SERVICES-- 0.3%
278,703 Westminster Healthcare
Holdings, PLC............... $ 1,345,979
------------
INFORMATION SERVICES & TECHNOLOGY-- 1.5%
56,657 Oxford Molecular.............. 264,029
361,100 Parity PLC.................... 3,231,619
210,498 Sage Group PLC (The).......... 2,359,025
------------
5,854,673
------------
LEISURE & TOURISM-- 0.5%
168,770 Millennium & Copthorne Hotels
PLC......................... 1,175,652
517,614 Vardon PLC.................... 968,197
------------
2,143,849
------------
METALS & MINING-- 0.3%
115,205 Powerscreen International
PLC......................... 1,380,257
------------
MANUFACTURING-- DISTRIBUTING-- 0.6%
383,900 Renishaw PLC.................. 2,197,587
------------
RETAILING & WHOLESALE-- 0.9%
195,800 Games Workshop Group PLC...... 2,206,935
292,303 Harvey Nichols PLC............ 1,355,099
------------
3,562,034
------------
TOTAL UNITED KINGDOM.......... 36,659,300
------------
UNITED STATES-- 57.9%
BUSINESS EQUIPMENT & SERVICES-- 1.2%
80,000 * Equity Corp., International... 1,865,000
80,000 G & K Services, Inc., Class
A........................... 2,795,000
------------
4,660,000
------------
ELECTRICAL EQUIPMENT & SERVICES-- 3.2%
90,000 * Credence Systems Corp......... 4,398,750
61,500 * Electroglas, Inc.............. 2,087,156
69,000 * General Cable Corp............ 2,449,500
50,000 * Kulicke & Soffa Industries,
Inc......................... 2,314,063
25,600 * Lattice Semiconductor Corp.... 1,668,000
------------
12,917,469
------------
FINANCE & INSURANCE-- 7.3%
66,200 Capital Re Corp............... 4,038,200
39,300 CMAC Investment Corp.......... 2,107,463
100,000 Dime Community Bancorp, Inc... 2,031,250
117,700 Everen Capital Corp........... 4,781,562
160,700 * First Alliance Co............. 5,031,919
70,000 Frontier Insurance Group...... 2,660,000
61,400 HCC Insurance Holdings, Inc... 1,630,938
50,000 Investors Financial Services
Corp........................ 2,081,250
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
UNITED STATES-- CONTINUED
FINANCE & INSURANCE-- CONTINUED
40,000 Penn America Group, Inc....... $ 818,750
68,600 TCF Financial Corp............ 4,008,812
------------
29,190,144
------------
FOOD & BEVERAGE PRODUCTS-- 0.3%
23,700 * Landrys Seafood Restaurants,
Inc......................... 697,669
15,100 Worthington Foods, Inc........ 346,356
------------
1,044,025
------------
HEALTHCARE PRODUCTS & SERVICES-- 13.4%
69,800 Agouron Pharmaceuticals,
Inc......................... 3,354,762
100,500 * Amylin Pharmaceuticals, Inc... 851,109
118,700 * Bioreliance Corporation....... 3,130,713
93,586 * Concentra Managed Care, Inc... 3,313,529
24,000 * Cyberonics, Inc............... 386,250
80,000 * Cytyc Corp.................... 1,995,000
75,000 * Dura Pharmaceuticals, Inc..... 3,285,937
80,000 * Guilford Pharmaceuticals,
Inc......................... 2,345,000
146,737 Health Management Associates,
Inc. Cl, A.................. 4,640,558
160,000 * Idexx Laboratories, Inc....... 2,685,000
20,000 * Incyte Pharmaceuticals,
Inc......................... 1,679,375
40,000 * Kos Pharmaceuticals, Inc...... 1,430,000
139,900 * Lifecore Biomedical, Inc...... 2,518,200
111,000 * Neurogen Corp................. 2,983,125
276,900 * Norland Medical Systems,
Inc......................... 2,509,406
78,600 * Pediatrix Medical Group,
Inc......................... 3,468,225
147,300 * Perclose, Inc................. 3,259,013
56,600 * Spine-Tech, Inc............... 2,133,113
60,000 Synopsys, Inc................. 2,548,125
73,600 * Total Renal Care Holdings,
Inc......................... 3,680,000
62,500 * Wesley Jessen Visioncare,
Inc......................... 1,789,063
------------
53,985,503
------------
INFORMATION SERVICES & TECHNOLOGY-- 12.4%
77,800 Asyst Technologies, Inc....... 3,454,806
75,000 * Avid Technology, Inc.......... 2,423,437
13,800 * Brooks Automation, Inc........ 529,575
88,400 * Cognex Corp................... 2,917,200
112,000 * Computer Products, Inc........ 3,356,500
80,300 * Corsair Communications, Inc... 1,701,356
36,400 * Dataworks Corp................ 673,400
89,000 * Discreet Logic, Inc........... 2,364,063
30,000 * EMC Corp...................... 1,751,250
43,100 * Intuit, Inc................... 1,384,588
31,000 * JD Edwards & Company.......... 1,042,375
58,000 * JDA Software Group, Inc....... 2,113,375
20,100 * Manugistics Group, Inc........ 716,063
</TABLE>
<PAGE>
PAGE 18
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
<C> <C> <S> <C>
COMMON STOCKS-- CONTINUED
UNITED STATES-- CONTINUED
INFORMATION SERVICES &
TECHNOLOGY-- CONTINUED
152,500 * Metacreations Software,
Inc......................... $ 2,258,906
50,000 * Microchip Technology, Inc..... 2,265,625
126,500 * Natural Microsystems Corp..... 4,791,187
50,000 * Peoplesoft, Inc............... 2,984,375
111,000 Project Software &
Development, Inc............ 2,559,937
10,200 * Qad, Inc...................... 188,063
70,000 * Radisys Corp.................. 3,526,250
78,700 * Splash Technology Holdings,
Inc......................... 3,079,137
90,000 * Vantive Corp.................. 2,165,625
68,700 * Xylan Corp.................... 1,517,841
------------
49,764,934
------------
LEISURE & TOURISM-- 0.7%
100,000 * Sodak Gaming, Inc............. 1,409,375
61,000 * Vail Resorts, Inc............. 1,631,750
------------
3,041,125
------------
MANUFACTURING-- DISTRIBUTING-- 2.1%
67,200 BMC Industries, Inc........... 2,137,800
100,000 Roper Industries, Inc......... 3,375,000
92,100 TriMas Corp................... 2,809,050
------------
8,321,850
------------
OIL / ENERGY-- 1.7%
100,000 KCS Energy Corp............... 2,950,000
13,800 * Nextlink Communications,
Inc......................... 332,925
50,000 * Ocean Energy, Inc............. 3,450,000
------------
6,732,925
------------
OIL FIELD SERVICES-- 4.2%
70,000 * Basin Exploration, Inc........ 1,176,875
68,400 * BJ Services Co., Inc.......... 5,078,700
30,000 Devon Energy Corp............. 1,320,000
80,000 ENSCO International, Inc...... 3,155,000
104,800 * Falcon Drilling, Inc.......... 3,700,750
65,000 * Newpark Resources, Inc........ 2,555,312
------------
16,986,637
------------
OTHER-- 0.8%
18,200 * Budget Group, Inc............. 600,600
11,800 * Megabios Corporation.......... 199,125
14,900 Oakwood Homes Corp............ 422,788
88,300 * Rental Service Corp........... 1,981,231
------------
3,203,744
------------
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>
- ---------------------------------------------------------------
COMMON STOCKS-- CONTINUED
UNITED STATES-- CONTINUED
PUBLISHING, BROADCASTING &
ENTERTAINMENT-- 0.9%
46,800 Central Newspapers, Inc....... $ 3,474,900
------------
RETAILING & WHOLESALE-- 2.5%
150,000 * Action Performance Cos.,
Inc......................... 4,350,000
46,400 * Central Garden & Pet Co....... 1,418,100
150,000 * Fritz Comp, Inc............... 2,217,187
70,000 Stanhome, Inc................. 2,069,375
------------
10,054,662
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 7.0%
150,000 * ACC Corp...................... 4,893,750
50,000 * Aspect Telecommunications
Corp........................ 1,159,375
85,000 * Concord EFS, Inc.............. 2,289,688
30,600 International Telecomm
Systems, Inc................ 852,975
60,000 * Jacor Communications, Inc..... 2,649,375
112,200 * Mcleod USA, Inc............... 4,421,381
120,000 * Ortel Corp.................... 2,662,500
24,100 * Premiere Technologies, Inc.... 821,659
100,100 * Smartalk Teleservices, Inc.... 2,464,963
70,000 * U.S. Cellular Corp............ 2,581,250
65,000 * Univision Communications,
Inc......................... 3,526,250
------------
28,323,166
------------
TEXTILE & APPAREL-- 0.2%
23,400 * Stage Stores Inc.............. 1,006,200
------------
TOTAL UNITED STATES........... 232,707,284
------------
TOTAL COMMON STOCKS
(COST-- $292,402,995)....... 372,749,722
------------
<CAPTION>
PREFERRED STOCKS-- 2.6%
<C> <C> <S> <C>
BRAZIL-- 2.4%
ELECTRICAL EQUIPMENT & SERVICES-- 0.6%
47,426,600 Companhia Energetica
de Minas Gerais............. 2,649,361
------------
FINANCE & INSURANCE-- 0.2%
1,044,000 Banco Itau.................... 674,686
------------
MANUFACTURING-- DISTRIBUTING-- 0.3%
72,696,030 Embraer-Empresa Brasiliera de
Aeronautica................. 1,061,692
------------
TELECOMMUNICATION SERVICES &
EQUIPMENT-- 1.3%
1,846,800 Compania Riograndense de
Telecomunica................ 2,398,792
</TABLE>
<PAGE>
PAGE 19
- ---------------------------------------------------------
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------
<C> <C> <S> <C>
PREFERRED STOCKS-- CONTINUED
BRAZIL-- CONTINUED
TELECOMMUNICATION SERVICES &
EQUIPMENT-- CONTINUED
8,550,900 Telecomunicacoes de Rio
de Janiero SA............... $ 1,178,573
5,947,200 Telesponsora Telefonos Sao
Paulo....................... 1,813,175
------------
5,390,540
------------
TOTAL BRAZIL.................. 9,776,279
------------
UNITED STATES-- 0.2%
OTHER-- 0.2%
44,500 CorporateFamily Solutions,
Inc......................... 734,250
------------
TOTAL PREFERRED STOCKS
(COST-- $7,971,664)......... 10,510,529
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C> <C>
- -----------------------------------------------------------------
<CAPTION>
REPURCHASE AGREEMENTS-- 4.5%
<C> <C> <S> <C> <C>
$18,006,000 Keystone Joint Repurchase
Agreement, Investments in
repurchase agreements, in a
joint trading account
purchased 9/30/97, 6.15%,
maturity value $18,009,034 (a)
(Cost-- $18,006,000).......... $ 18,006,000
------------
<CAPTION>
TOTAL INVESTMENTS--
<C> <C> <S> <C> <C>
(COST-- $318,380,659).................. 99.8% 401,266,251
OTHER ASSETS AND LIABILITIES-- NET.......
0.2% 671,569
-------- ------------
NET ASSETS............................... 100% $401,937,820
-------- ------------
</TABLE>
* Non-income producing securities.
** Securities that may be resold to "qualified institutional buyers" under Rule
144A of the Securities Act of 1933. These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(a) The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices plus accrued interest at September
30, 1997.
LEGEND OF PORTFOLIO ABBREVIATIONS:
ADR-- American Depository Receipts
<PAGE>
PAGE 20
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS-- SEPTEMBER 30, 1997
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Buy:
<S> <C> <C> <C> <C>
UNREALIZED
EXCHANGE U.S. VALUE AT IN EXCHANGE APPRECIATION
DATE CONTRACTS TO RECEIVE SEPTEMBER 30, 1997 FOR U.S. $ (DEPRECIATION)
- --------------------------------------------------------------------------------------------------------------------------
10/28/97 25,876,528 French Franc $ 4,369,932 $4,353,386 $ 16,546
10/28/97 8,000,740 German Marks 4,536,866 4,370,079 166,787
11/24/97 7,780,298 German Marks 4,419,416 4,342,896 76,520
10/28/97 1,688,800,000 Japanese Yen 14,054,315 13,947,803 106,512
10/28/97 9,219,150 Netherlands Guilder 4,640,887 4,469,891 170,996
11/24/97 10,336,806 Netherlands Guilder 5,212,080 5,121,794 90,286
10/28/97 10,096,980 Swiss Franc 6,965,928 6,711,187 254,741
11/24/97 10,120,022 Swiss Franc 7,003,190 6,862,428 140,762
</TABLE>
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Sell:
<S> <C> <C> <C> <C>
CONTRACTS TO DELIVER
- --------------------------------------------------------------------------------------------------------------------------
10/28/97 802,005 Australian Dollar $ 582,600 $ 592,000 $ 9,400
9/18/97 546,000 British Pound 880,425 871,934 (8,491)
10/28/97 59,519,200 French Franc 10,051,381 9,700,000 (351,381)
10/28/97 8,000,740 German Marks 4,536,866 4,400,000 (136,866)
11/24/97 7,780,298 German Marks 4,419,416 4,219,800 (199,616)
10/1/97 5,157,900 Japanese Yen 42,744 42,712 (32)
10/1/97 1,028,328 Japanese Yen 8,522 8,482 (40)
10/1/97 7,858,940 Japanese Yen 65,127 64,822 (305)
10/2/97 2,970,387 Japanese Yen 24,616 24,541 (75)
10/28/97 3,276,416,000 Japanese Yen 27,266,570 28,600,000 1,333,430
10/28/97 9,219,150 Netherlands Guilder 4,640,887 4,500,000 (140,887)
11/24/97 10,336,806 Netherlands Guilder 5,212,080 4,975,000 (237,080)
10/28/97 10,096,980 Swiss Franc 6,965,928 6,800,000 (165,928)
11/24/97 10,120,022 Swiss Franc 7,003,190 6,710,000 (293,190)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 21
- ---------------------------------------------------------
FINANCIAL HIGHLIGHTS-- CLASS A SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
ONE-MONTH YEAR ENDED SEPTEMBER 30,
PERIOD ENDED -----------------------------------------------------
OCTOBER 31, 1997 (D) 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $ 24.90 $ 24.56 $ 23.43 $ 19.42 $ 18.02 $ 11.69
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.02 (0.17)(c) (0.06) (0.16) (0.04) (0.14)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (1.39) 1.76 1.19 4.17 1.60 6.47
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.37) 1.59 1.13 4.01 1.56 6.33
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM
Net investment income 0 0 0 0 0 0
Net realized gain on investments 0 (1.25) 0 0 (0.16) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions 0 (1.25) 0 0 (0.16) 0
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE END OF PERIOD $ 23.53 $ 24.90 $ 24.56 $ 23.43 $ 19.42 $ 18.02
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(A) (5.50%) 6.95% 4.82% 20.65% 8.74% 54.15%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.87%(b) 1.67% 1.62% 1.83% 2.01% 2.84%
Expenses excluding indirectly paid expenses 1.85%(b) 1.66% 1.60% 1.81% N/A N/A
Expenses excluding fee waivers & expense
reimbursements N/A N/A N/A N/A N/A N/A
Net investment income (loss) (1.40%)(b) (0.69%) (0.53%) (0.83%) (0.86%) (1.72%)
PORTFOLIO TURNOVER RATE 7% 72% 67% 35% 32% 64%
AVERAGE COMMISSIONS RATE PAID PER SHARE $ 0.0019 $ 0.0066 $ 0.0079 N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $ 98,031 $113,477 $250,427 $94,679 $71,122 $29,942
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARCH 16, 1988
YEAR ENDED SEPTEMBER 30, (COMMENCEMENT OF
------------------------------------- OPERATIONS) TO
1992 1991 1990 1989 SEPTEMBER 30, 1988
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $ 12.89 $ 9.89 $11.17 $ 9.77 $10.00
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.08) 0.17 0.19 0.09 0.05
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions 0.23 3.06 (1.27) 1.66 (0.28)
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.15 3.23 (1.08) 1.75 (0.23)
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM
Net investment income 0 (0.23) (0.12) (0.09) 0
Net realized gain on investments (1.35) 0 (0.08) (0.26) 0
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.35) (0.23) (0.20) (0.35) 0
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE END OF PERIOD $ 11.69 $12.89 $ 9.89 $11.17 $ 9.77
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(A) 1.81% 32.71% (9.65%) 16.94% (1.20%)
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.50% 2.03% 2.00% 2.00% 1.50%(b)
Expenses excluding indirectly paid expenses N/A N/A N/A N/A N/A
Expenses excluding fee waivers & expense reimbursements N/A 3.67% 7.77% 13.06% 5.54%(b)
Net investment income (loss) (0.69%) 1.49% 1.80% 0.86% 1.42%(b)
PORTFOLIO TURNOVER RATE 75% 134% 51% 13% 19%
AVERAGE COMMISSIONS RATE PAID PER SHARE N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $10,859 $2,159 $1,519 $1,378 $1,082
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Calculation based on average shares outstanding during the period.
(d) The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 22
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS-- CLASS B SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
ONE-MONTH YEAR ENDED SEPTEMBER 30,
PERIOD ENDED --------------------------------------------
OCTOBER 31, 1997 (D) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $ 24.03 $ 23.92 $ 23.00 $ 19.20 $ 17.95
- -----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (0.06) (0.32)(c) (0.21) (0.25) (0.15)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (1.28) 1.68 1.13 4.05 1.56
- -----------------------------------------------------------------------------------------------------------------
Total from investment operations (1.34) 1.36 0.92 3.80 1.41
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM
Net realized gain on investments 0 (1.25) 0 0 (0.16)
- -----------------------------------------------------------------------------------------------------------------
Total distributions 0 (1.25) 0 0 (0.16)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE END OF PERIOD $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN(A) (5.58%) 6.14% 4.00% 19.79% 7.93%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.62%(b) 2.46% 2.40% 2.58% 2.83%
Expenses excluding indirectly paid expenses 2.61%(b) 2.44% 2.38% 2.56% N/A
Net investment loss (2.15%)(b) (1.45%) (1.37%) (1.59%) (1.61%)
PORTFOLIO TURNOVER RATE 7% 72% 67% 35% 32%
AVERAGE COMMISSIONS RATE PAID PER SHARE $ 0.0019 $ 0.0066 $ 0.0079 N/A N/A
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $216,471 $238,936 $385,839 $238,320 $131,695
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
FEBRUARY 1, 1993
TO
SEPTEMBER 30, 1993
<S> <C>
- ----------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $ 14.04
- ----------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (0.04)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions 3.95
- ----------------------------------------------
Total from investment operations 3.91
- ----------------------------------------------
LESS DISTRIBUTIONS FROM
Net realized gain on investments 0
- ----------------------------------------------
Total distributions 0
- ----------------------------------------------
NET ASSET VALUE END OF PERIOD $ 17.95
- ----------------------------------------------
TOTAL RETURN(A) 27.85%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 3.35%(b)
Expenses excluding indirectly paid expenses N/A
Net investment loss (1.86%)(b)
PORTFOLIO TURNOVER RATE 64%
AVERAGE COMMISSIONS RATE PAID PER SHARE N/A
- ----------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $ 15,534
- ----------------------------------------------
</TABLE>
FINANCIAL HIGHLIGHTS-- CLASS C SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
ONE-MONTH YEAR ENDED SEPTEMBER 30,
PERIOD ENDED ---------------------------------------
OCTOBER 31, 1997 (D) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $ 24.07 $ 23.97 $ 23.04 $ 19.26 $ 17.99
- -----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (0.07) (0.33)(c) (0.24) (0.27) (0.15)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (1.27) 1.68 1.17 4.05 1.58
- -----------------------------------------------------------------------------------------------------------------
Total from investment operations (1.34) 1.35 0.93 3.78 1.43
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM
Net realized gain on investments 0 (1.25) 0 0 (0.16)
- -----------------------------------------------------------------------------------------------------------------
Total distributions 0 (1.25) 0 0 (0.16)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE END OF PERIOD $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN(A) (5.57%) 6.08% 4.04% 19.63% 8.02%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.62%(b) 2.45% 2.40% 2.58% 2.85%
Expenses excluding indirectly paid expenses 2.61%(b) 2.43% 2.38% 2.56% N/A
Net investment loss (2.15%)(b) (1.48%) (1.38%) (1.59%) (1.62%)
PORTFOLIO TURNOVER RATE 7% 72% 67% 35% 32%
AVERAGE COMMISSIONS RATE PAID PER SHARE $ 0.0019 $0.0066 $ 0.0079 N/A N/A
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $ 43,869 $49,524 $124,549 $86,339 $50,535
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
FEBRUARY 1, 1993
TO
SEPTEMBER 30, 1993
<S> <C>
- ---------------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $14.04
- ---------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (0.04)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions 3.99
- ---------------------------------------------------
Total from investment operations 3.95
- ---------------------------------------------------
LESS DISTRIBUTIONS FROM
Net realized gain on investments 0
- ---------------------------------------------------
Total distributions 0
- ---------------------------------------------------
NET ASSET VALUE END OF PERIOD $17.99
- ---------------------------------------------------
TOTAL RETURN(A) 28.13%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 3.04%(b)
Expenses excluding indirectly paid expenses N/A
Net investment loss (1.55%)(b)
PORTFOLIO TURNOVER RATE 64%
AVERAGE COMMISSIONS RATE PAID PER SHARE N/A
- ---------------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $6,217
- ---------------------------------------------------
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Calculation based on average shares outstanding during the period.
(d) The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 23
- ---------------------------------------------------------
FINANCIAL HIGHLIGHTS-- CLASS Y SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
JANUARY 13, 1997
(DATE OF INITIAL
ONE-MONTH PUBLIC OFFERING)
PERIOD ENDED TO
OCTOBER 31, 1997 (B) SEPTEMBER 30, 1997
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE BEGINNING OF PERIOD $ 25.24 $ 23.05
- -----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0 (0.28)
Net realized and unrealized gain (loss) on investments and foreign currency
related transactions (1.34) 2.47
- -----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.34) 2.19
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM
Net realized gain on investments 0 0
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions 0 0
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE END OF PERIOD $ 23.90 $ 25.24
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (5.31%) 9.50%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.62%(a) 1.42%(a)
Expenses excluding indirectly paid expenses 1.62%(a) 1.42%(a)
Net investment loss (1.62%)(a) (1.22%)(a)
PORTFOLIO TURNOVER RATE 7% 72%
AVERAGE COMMISSIONS RATE PAID PER SHARE $ 0.0019 $ 0.0066
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS END OF PERIOD (THOUSANDS) $ 0 $ 0
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 24
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
OCTOBER 31, SEPTEMBER 30,
1997 1997
<S> <C> <C>
- --------------------------------------------------------------
ASSETS
Investments at value (identified
cost-- $293,749,006 and
$318,380,659, respectively) $348,759,584 $401,266,251
Foreign currency holdings
(identified cost-- $516,244 and
$486,842, respectively) 480,935 484,850
Cash 1,787 650
Receivable for investments sold 12,843,023 2,111,047
Unrealized appreciation on forward
foreign currency exchange
contracts 829,549 2,365,980
Receivable for Fund shares sold 287,706 2,368,763
Dividends and interest receivable 205,329 332,354
Foreign tax reclaim receivable 160,974 180,915
Prepaid expenses and other assets 39,306 33,413
- --------------------------------------------------------------
Total assets 363,608,193 409,144,223
- --------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed 1,607,254 2,552,910
Unrealized depreciation on forward
foreign currency exchange
contracts 1,501,574 1,533,891
Payable for investments purchased 1,374,945 2,451,679
Foreign taxes to be withheld 35,271 47,043
Due to related parties 322,966 314,074
Accrued expenses and other
liabilities 395,637 306,806
- --------------------------------------------------------------
Total liabilities 5,237,647 7,206,403
- --------------------------------------------------------------
NET ASSETS $358,370,546 $401,937,820
- --------------------------------------------------------------
NET ASSETS REPRESENTED BY
Paid-in-capital $280,287,086 $302,639,005
Undistributed net investment
income (accumulated net
investment loss) 540,406 (966,557 )
Accumulated net realized gain on
investments and foreign currency
related transactions 23,261,754 16,546,267
Net unrealized appreciation on
investments and foreign currency
related transactions 54,281,300 83,719,105
- --------------------------------------------------------------
Total net assets $358,370,546 $401,937,820
- --------------------------------------------------------------
NET ASSET VALUE
Class A Shares
Net assets of ($98,030,513 /
4,166,415 shares outstanding
and $113,477,420 / 4,556,835
shares outstanding,
respectively) $ 23.53 $ 24.90
Offering price (based on sales
charge of 4.75%) $ 24.70 $ 26.14
Class B Shares
Net assets of ($216,470,993 /
9,540,331 shares outstanding
and $238,936,130 / 9,942,489
shares outstanding,
respectively) $ 22.69 $ 24.03
Class C Shares
Net assets of ($43,869,016 /
1,929,900 shares outstanding
and $49,524,245 / 2,057,099
shares outstanding,
respectively) $ 22.73 $ 24.07
Class Y Shares
Net assets of ($24 / 1 share
outstanding and $25 / 1 share
outstanding, respectively) $ 23.90 $ 25.24
- --------------------------------------------------------------
</TABLE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
ONE-MONTH
PERIOD ENDED YEAR ENDED
OCTOBER 31, 1997 SEPTEMBER 30, 1997
<S> <C> <C>
- ------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of
foreign withholding
tax of $11,503 and
$624,150,
respectively) $ 89,847 $ 4,353,325
Interest 61,804 959,006
- ------------------------------------------------------------
Total income 151,651 5,312,331
- ------------------------------------------------------------
EXPENSES
Management fee $ 325,228 $ 5,048,808
Distribution Plan
expenses 264,029 4,132,784
Transfer agent fees 116,794 1,901,832
Printing 44,456 172,317
Custodian fees 24,524 449,481
Administrative service
fees 9,025 73,452
Trustees fees 4,118 49,845
Miscellaneous 16,446 220,984
- ------------------------------------------------------------
Total expenses 804,620 12,049,503
Less: Indirectly paid
expenses (4,368) (82,148)
- ------------------------------------------------------------
Net expenses 800,252 11,967,355
- ------------------------------------------------------------
Net investment loss (648,601) (6,655,024)
- ------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND
FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized gain on
investments 7,419,948 49,817,055
Net realized gain
(loss) on foreign
currency related
transactions 1,451,103 (23,021,692)
- ------------------------------------------------------------
Net realized gain on
investments and
foreign currency
related transactions 8,871,051 26,795,363
- ------------------------------------------------------------
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency
related transactions (29,437,805) (6,946,269)
- ------------------------------------------------------------
Net realized and
unrealized gain
(loss) on investments
and foreign currency
related transactions (20,566,754) 19,849,094
- ------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations $(21,215,355) $ 13,194,070
- ------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 25
- ---------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ONE-MONTH PERIOD YEAR ENDED SEPTEMBER 30,
ENDED ----------------------------
OCTOBER 31, 1997 1997 1996
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment loss $ (648,601) $ (6,655,024) $ (6,922,836)
Net realized gain on investments and foreign currency related
transactions 8,871,051 26,795,363 40,623,123
Net change in unrealized appreciation (depreciation) on investments
and foreign currency related transactions (29,437,805) (6,946,269) (8,332,501)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (21,215,355) 13,194,070 25,367,786
- ------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net realized gain on investments:
Class A Shares 0 (11,550,719) 0
Class B Shares 0 (19,127,005) 0
Class C Shares 0 (6,057,525) 0
- ------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders 0 (36,735,249) 0
- ------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 5,938,720 72,496,510 529,168,793
Net asset value of shares issued in reinvestment of distributions 0 29,860,344 0
Payments for shares redeemed (28,290,639) (437,692,552) (213,060,012)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions (22,351,919) (335,335,698) 316,108,781
- ------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (43,567,274) (358,876,877) 341,476,567
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 401,937,820 760,814,697 419,338,130
- ------------------------------------------------------------------------------------------------------------------------
End of period [including undistributed net investment income
(accumulated net investment loss) as follows:
October 31, 1997-- $540,406
September 30, 1997-- ($966,557)
September 30, 1996-- ($836,743)] $358,370,546 $401,937,820 $760,814,697
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PAGE 26
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Evergreen Global Opportunities Fund, formerly Keystone Global Opportunities
Fund, (the "Fund") is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company.
The Fund offers Class A, Class B, Class C and Class Y shares. Class A shares
are sold with a maximum front-end sales charge of 4.75%. Class B and C shares
are sold without a front-end sales charge, but 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 purchased after January 1, 1997 will
automatically convert to Class A shares after seven years. Class B shares
purchased prior to January 1, 1997 retain their existing conversion rights.
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 Y shares are
sold at net asset value and are not subject to contingent deferred sales charges
or distribution fees. Class Y shares are sold only to investment advisory
clients of 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 Fund's investment objective is
capital growth.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles, which
require management to make estimates and assumptions that affect amounts
reported herein. Actual results could differ from these estimates.
A. VALUATION OF SECURITIES
The Fund values investments traded on an established exchange on the basis of
the last sales price on the exchange where primarily traded. The Fund values
securities traded in the over-the-counter market at the mean between the bid and
asked prices. Securities for which market quotations are not readily available,
including restricted securities, are valued at fair value as determined in good
faith according to procedures established by the Board of Trustees.
Short-term investments with remaining maturities of 60 days or less are
carried at amortized cost, which approximates market value.
B. REPURCHASE AGREEMENTS
The Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held by the custodian on the Fund's behalf. The
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. The Fund will only enter into repurchase agreements with banks
and other financial institutions which are deemed by the investment advisor to
be creditworthy pursuant to guidelines established by the Board of Trustees.
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, the Fund, along with certain other funds managed by Keystone
Investment Management Company ("Keystone"), may transfer uninvested cash
balances into a joint trading account. These balances are invested in one or
more repurchase agreements that are fully collateralized by U.S. Treasury and/or
federal agency obligations.
C. FOREIGN CURRENCY
The books and records of the Fund are maintained in United States ("U.S.")
dollars. Foreign currency amounts are translated into U.S. dollars as follows:
market value
<PAGE>
PAGE 27
- ---------------------------------------------------------
of investments, assets and liabilities at the daily rate of exchange; purchases
and sales of investments, income and expenses at the rate of exchange prevailing
on the respective dates of such transactions. Net unrealized foreign exchange
gain (loss) resulting from changes in foreign currency exchange rates is a
component of net unrealized appreciation (depreciation) on investments and
foreign currency related transactions. Net realized foreign currency gains and
losses resulting from changes in exchange rates include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency related transactions and the difference between
the amounts of interest and dividends recorded on the books of the Fund and the
amount actually received and is included in realized gain (loss) on foreign
currency related transactions. The portion of foreign currency gains and losses
related to fluctuations in exchange rates between the initial purchase trade
date and subsequent sale trade date is included in realized gain (loss) on
foreign currency related transactions.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Fund may enter into forward foreign currency exchange contracts ("forward
contracts") to settle portfolio purchases and sales of securities denominated in
a foreign currency and to hedge certain foreign currency assets or liabilities.
Forward contracts are recorded at the forward rate and are marked-to-market
daily. Realized gains and losses arising from such transactions are included in
net realized gain (loss) on foreign currency related transactions. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract and is subject to the credit risk that the other
party will not fulfill their obligations under the contract. Forward contracts
involve elements of market risk in excess of the amount reflected in the
statement of assets and liabilities.
E. 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. Dividend income is recorded on the
ex-dividend date or in the case of some foreign securities, on the date
thereafter when the Fund is made aware of the dividend. Foreign income may be
subject to foreign withholding taxes which are accrued as applicable. Capital
gains realized on some foreign securities are subject to foreign taxes which are
accrued as applicable.
F. FEDERAL TAXES
The Fund has qualified and intends to qualify in the future as a regulated
investment company under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Fund will not incur any federal income tax liability since it
is expected to distribute all of its net investment company taxable income and
net taxable capital gains, if any, to its shareholders. The Fund also intends to
avoid any excise tax liability by making the required distributions under the
Code. Accordingly, no provision for federal taxes is required.
G. DISTRIBUTIONS
The Fund distributes net investment income and net capital gains, if any, 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. The significant differences between financial statement
amounts available for distributions and distributions made in accordance with
income tax regulations are primarily due to differing treatment of foreign
currency transactions and net operating losses generated by the Fund.
<PAGE>
PAGE 28
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
H. 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 Fund has an unlimited number of shares of beneficial interest with no par
value authorized. Shares of beneficial interest of the Fund are currently
divided into Class A, Class B, Class C, and Class Y. Transactions in shares of
the Fund were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
ONE-MONTH PERIOD ENDED ------------------------------------------------------------
OCTOBER 31, 1997 1997 1996
------------------------- ---------------------------- ----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
Shares sold 205,158 $ 5,151,881 1,724,686 $ 40,645,838 11,443,628 $ 279,189,973
Shares issued in reinvestment
of distributions 0 0 293,025 6,669,240 0 0
Shares redeemed (595,578) (14,880,208) (7,656,939) (176,796,539) (5,288,523) (132,731,601)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (390,420) (9,728,327) (5,639,228) (129,481,461) 6,155,105 146,458,372
- --------------------------------------------------------------------------------------------------------------------------
CLASS B
- --------------------------------------------------------------------------------------------------------------------------
Shares sold 22,401 532,211 1,025,563 23,070,741 8,250,300 192,961,888
Shares issued in reinvestment
of distributions 0 0 798,355 17,651,626 0 0
Shares redeemed (424,559) (10,089,631) (8,009,248) (177,499,072) (2,485,770) (57,472,755)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (402,158) (9,557,420) (6,185,330) (136,776,705) 5,764,530 135,489,133
- --------------------------------------------------------------------------------------------------------------------------
CLASS C
- --------------------------------------------------------------------------------------------------------------------------
Shares sold 10,542 254,628 390,436 8,779,908 2,429,734 57,016,932
Shares issued in reinvestment
of distributions 0 0 250,089 5,539,478 0 0
Shares redeemed (137,741) (3,320,800) (3,780,382) (83,396,941) (980,684) (22,855,656)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (127,199) (3,066,172) (3,139,857) (69,077,555) 1,449,050 34,161,276
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
JANUARY 13, 1997 (DATE OF
INITIAL PUBLIC OFFERING) THROUGH
CLASS Y SEPTEMBER 30, 1997
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
Shares sold 0 0 1 23 0 0
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from capital share
transactions (919,777) $(22,351,919) (14,964,414) $(335,335,698) 13,368,685 $ 316,108,781
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities and foreign cash) for the one-month period ended October
31, 1997 were $24,195,357 and $61,363,815, respectively. Cost of purchases and
proceeds from sales of investment securities (excluding short-term securities
and foreign cash) for the year ended September 30, 1997 were $373,517,884 and
$734,655,169, respectively. On October 31, 1997, the cost of investments for
federal income tax purposes was $293,758,905, gross unrealized appreciation of
investments was $73,248,019 and gross
<PAGE>
PAGE 29
- ---------------------------------------------------------
unrealized depreciation of investments was $18,247,340, resulting in net
unrealized appreciation of $55,000,679 for federal income tax purposes. On
September 30, 1997, the cost of investments for federal income tax purposes was
$318,481,962, gross unrealized appreciation of investments was $96,177,617 and
gross unrealized depreciation of investments was $13,393,328 resulting in net
unrealized appreciation of $82,784,289 for federal income tax purposes.
4. DISTRIBUTION PLANS
Evergreen Distributors, Inc. ("EDI"), formerly Evergreen Keystone Distributors,
Inc., a wholly-owned subsidiary of The BISYS Group, Inc. ("BISYS") serves as
principal underwriter to the Fund. Prior to December 11, 1996, Evergreen
Investment Service, Inc. ("EIS"), formerly Evergreen Keystone Investment
Services, Inc. ("EKIS"), a wholly-owned subsidiary of Keystone, served as the
Fund's principal underwriter.
The Fund has adopted Distribution Plans for each class of shares, except Class
Y, as allowed by Rule 12b-1 of the 1940 Act. Distribution Plans permit the Fund
to reimburse its principal underwriter for costs related to selling shares of
the Fund and for various other services. These costs, which consist primarily of
commissions and service fees to broker-dealers who sell shares of the fund, are
paid by shareholders through expenses called "Distribution Plan expenses". Each
class, except Class Y, currently pays a service fee equal to 0.25% of the
average daily net asset of the class. Class B and Class C also presently pay
distribution fees equal to 0.75% of the average daily net assets of the class.
Distribution Plan expenses are calculated daily and paid monthly.
During the one-month period ended October 31, 1997, amounts paid to EDI and/or
EIS pursuant to each Fund's Class A, Class B and Class C Distribution Plans were
$23,188, $199,880, and $40,961, respectively. During the year ended September
30, 1997, amounts paid to EDI and/or EIS pursuant to the Fund's Class A, Class B
and Class C Distribution Plans were $371,892, $2,946,506, and $814,386,
respectively.
With respect to Class B and Class C shares, the principal underwriter may pay
distribution costs greater than the allowable annual amounts the Fund is
permitted to pay. The Fund may reimburse the principal underwriter for such
excess amounts in later years with annual interest at the prime rate plus 1.00%.
EDI intends to seek full payment of such distribution costs from the Fund at
such time in the future as, and to the extent that, payment thereof by the Class
B or Class C shares would be within permitted limits.
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. However, after the termination of any Distribution
Plan, and subject to the discretion of the Independent Trustees, payments to EDI
and/or EIS may continue as compensation for services which had been provided
while the Distribution Plan was in effect.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
Keystone Investment Management Company ("Keystone"), a subsidiary of First Union
Corporation ("First Union"), is the investment advisor for the Fund. In return
for providing investment management and administrative services to the Fund, the
Fund pays Keystone a management fee, that is calculated daily and paid monthly.
The management fee is determined by applying percentage rates starting at 1.00%
and declining as net assets increase to 0.75% per annum, to the average daily
net asset value of the Fund.
During the one-month period ended October 31, 1997 and the year ended
September 30, 1997, the Fund paid or accrued $9,025 and $73,452, respectively,
to Keystone for certain administrative services.
<PAGE>
PAGE 30
- ---------------------------------------------------------
EVERGREEN GLOBAL OPPORTUNITIES FUND
Evergreen Service Company ("ESC"), formerly Evergreen Keystone Services
Company ("EKSC"), a wholly-owned subsidiary of Keystone, serves as the transfer
and dividend disbursing agent for the Fund.
BISYS Fund Services, Inc. ("BISYS"), an affiliate of EDI, serves as the Fund's
sub-administrator. As sub-administrator, BISYS provides the officers of the
Fund. For this service, BISYS is paid a fee by Keystone, which is not a Fund
expense. Officers of the Fund and affiliated Trustees receive no compensation
directly from the Fund.
6. EXPENSE OFFSET ARRANGEMENT
The Fund has entered into an expense offset arrangement with its custodian. The
assets deposited with the custodian under this expense offset arrangement could
have been invested in income-producing assets.
7. DISTRIBUTION TO SHAREHOLDERS
A capital gain distribution of $1.53 per share was declared payable on November
24, 1997 to shareholders of record November 20, 1997 for all classes of shares.
This distribution is comprised of long-term capital gains of $1.27 and
short-term capital gains of $0.26 per share. This distribution is not reflected
in the accompanying financial statements.
<PAGE>
PAGE 31
- ---------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
THE TRUSTEES AND SHAREHOLDERS
EVERGREEN GLOBAL OPPORTUNITIES FUND
We have audited the accompanying statements of assets and liabilities of
Evergreen Global Opportunities Fund, formerly Keystone Global Opportunities
Fund, including the schedules of investments, as of October 31, 1997 and
September 30, 1997 and the related statements of operations for the one-month
period ended October 31, 1997 and the year ended September 30, 1997, the
statements of changes in net assets for the one-month period ended October 31,
1997 and each of the years in the two-year period ended September 30, 1997 and
the financial highlights for the one-month period ended October 31, 1997, each
of the years in the nine-year period ended September 30, 1997 and the period
from March 16, 1988 (Commencement of Operations) to September 30, 1988 for Class
A shares, for the one-month period ended October 31, 1997, each of the years in
the four-year period ended September 30, 1997 and for the period from February
1, 1993 (Date of Initial Public Offering) to September 30, 1993 for Class B and
Class C shares and for the one-month period ended October 31, 1997 and for the
period from January 13, 1997 (Date of Initial Public Offering) to September 30,
1997 for Class Y shares. These financial statements and financial highlights are
the responsibility of the Fund's 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 the 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. Our procedures included confirmation of securities owned as of
October 31, 1997 and September 30, 1997 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 Global Opportunities Fund as of October 31, 1997 and September 30,
1997, the results of its operations for the periods then ended, the changes in
its net assets for each of periods then ended and for the year ended September
30, 1996 and the 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
November 26, 1997
<PAGE>
This report was prepared primarily for the information of the Fund's
shareholders. It is authorized for distribution if preceded or accompanied by
the Fund's current prospectus. The prospectus contains important information
about the Fund including fees and expenses. Read it carefully before you invest
or send money. For a free prospectus on other Evergreen Funds, contact your
financial adviser or call Evergreen Funds.
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<C> <S>
NOT
FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE
EVERGREEN DISTRIBUTOR, INC.
Evergreen is a Service Mark of Evergreen
Investment Services, Inc. Copyright 1997.
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542302 (Recycle logo)
EVERGREEN
(Photo Exists in Film ONLY.
Will See on Dylux)
GLOBAL
OPPORTUNITIES
FUND
(FORMERLY KEYSTONE
GLOBAL OPPORTUNITIES FUND)
(Evergreen Logo appears here)
ANNUAL REPORTS
OCTOBER 31, 1997 AND
SEPTEMBER 30, 1997
