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Previous: RAYMOND CORP, SC 13G/A, 1995-10-11 |
Next: EVERGREEN FUND, 497, 1995-10-11 |
STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 25, 1995
Acquisition of the Assets of
SMALL COMPANY GROWTH FUND
OF
THE FFB LEXICON FUND
2 Oliver Street
Boston, Massachusetts 02109
1-800-833-8974
By and in Exchange for Shares of
EVERGREEN FUND
OF
EVERGREEN TRUST
2500 Westchester Avenue
Purchase, NY 10577
1-800-807-2940
This Statement of Additional Information, relating specifically to the
proposed transfer of the assets of the Small Company Growth Fund, a series of
The FFB Lexicon Fund, in exchange for Class Y shares of Evergreen Fund, a series
of Evergreen Trust, and the assumption by Evergreen Fund of certain identified
liabilities of the Small Company Growth Fund, is not a prospectus. A
Prospectus/Proxy Statement dated September 25, 1995 relating to the
above-referenced matter may be obtained from Evergreen Fund, 2500 Westchester
Avenue, Purchase, New York 10577 or by calling toll-free 1-800-807-2940. This
Statement of Additional Information relates to and should be read in conjunction
with such Prospectus/Proxy Statement.
This Statement of Additional Information incorporates by reference the
following documents, a copy of each of which accompanies this Statement of
Additional Information:
1. The Prospectus of the Evergreen Fund dated July 7,
1995.
2. The Statement of Additional Information of the
Evergreen Fund dated July 7, 1995.
3. The Annual Report of the Evergreen Fund dated September
30, 1994.
4. The Semi-Annual Report of the Evergreen Fund dated
March 31, 1995.
<PAGE>
5. The Prospectus of the Small Company Growth Fund dated
December 30, 1994.
6. The Statement of Additional Information of the Small
Growth Company Fund dated December 30, 1994.
7. The Annual Report of the Small Company Growth Fund
dated August 31, 1994.
8. The Semi-Annual Report of the Small Company Growth Fund
dated February 28, 1995.
The following pro forma financial information relates to the Small Company
Growth Fund and the Evergreen Fund:
-2-
<PAGE>
EVERGREEN FUND
Pro Forma Combining Financial Statements - June 30, 1995
<PAGE>
<TABLE>
<CAPTION>
Lexicon
Evergreen Small Company Pro-Forma
Fund Growth Fund Combined
06/30/95 06/30/95 06/30/95
Security Description Shares Value Shares Value Adjustment Shares Value
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 97.0%
Banks & Thrifts 21.3%
1st Source Corp. 201,155 $5,883,783 201,155 $5,883,783
1st United Bancorp 50,000 387,500 50,000 387,500
Amcore Financial, Inc. 45,000 832,500 45,000 832,500
American Federal Bank, FSB 50,000 687,500 50,000 687,500
AmSouth Bancorporation 28,300 923,288 28,300 923,288
Arrow Financial Corp. 101,196 1,568,538 101,196 1,568,538
Bank of Boston Corp. 76,300 2,861,250 76,300 2,861,250
Barnett Banks, Inc. 273,320 14,007,650 273,320 14,007,650
Baybanks Incorporated 190,000 15,057,500 4,200 332,850 194,200 15,390,350
Benson Financial Corp. 40,000 530,000 40,000 530,000
BSB Bancorp, Inc. 99,750 2,992,500 99,750 2,992,500
Central Fidelity Banks, Inc. 30,000 915,000 30,000 915,000
Chittenden Corp. 250,312 5,444,286 250,312 5,444,286
Collective Bancorp, Inc. 70,000 1,417,500 70,000 1,417,500
Compass Bankcshares Incorporated 12,800 369,600 12,800 369,600
Cullen Frost Bankers Incorporated 7,400 299,700 7,400 299,700
Crestar Financial Corp. 28,700 1,406,300 28,700 1,406,300
Dime Financial Corp. 255,000 2,550,000 255,000 2,550,000
First Empire State Corp. 127,000 21,780,500 127,000 21,780,500
First Michigan Bank Corp. 244,703 6,056,399 244,703 6,056,399
First Palm Beach Bancorp 15,000 335,625 15,000 335,625
First State Bancorp 50,000 700,000 50,000 700,000
Fort Wayne National Corp. 160,350 4,449,713 160,350 4,449,713
Glacier Bancorp, Inc. 33,275 648,862 33,275 648,862
Hawthorne Financial Corp. 73,500 197,531 73,500 197,531
Hibernia Corp. Cl. A 889,540 7,894,668 889,540 7,894,668
Intercontinental Bank 100,000 2,862,500 100,000 2,862,500
Magna Group, Inc. 67,779 1,491,138 67,779 1,491,138
Mark Twain Bancshares Inc. 10,400 335,400 10,400 335,400
North Fork Bancorporation, Inc. 210,000 3,806,250 210,000 3,806,250
Old Kent Financial Corp. 100,412 3,414,008 100,412 3,414,008
ONBANCorp, Inc. 121,000 3,433,375 121,000 3,433,375
One Valley Bancorp of West Virginia, Inc. 21,500 663,813 21,500 663,813
Riggs National Corp. 30,000 296,250 30,000 296,250
River Forrest Bancorp 35,000 1,417,500 35,000 1,417,500
Sandwich Co-Operative Bank 55,000 866,250 55,000 866,250
United Carolina Bancshares Corp. 90,000 2,767,500 90,000 2,767,500
Univest Corp. of Pennsylvania 31,428 1,084,266 31,428 1,084,266
USBanCorp, Inc. 10,000 235,000 10,000 235,000
Valley National Bancorp 16,800 405,300 16,800 405,300
West Coast Bancorp. New 29,400 433,650 29,400 433,650
Westamerica Bancorporation 115,900 4,288,300 115,900 4,288,300
Wilmington Trust Corporation 11,800 333,350 11,800 333,350
Total Banks & Thrifts 126,993,493 1,670,900 128,664,393
Building, Construction, & Furnishings 3.2%
Champion Enterprises, Inc. 20,000 $317,500 20,000 317,500
Continental Homes Holding Corp. 88,000 1,529,000 88,000 1,529,000
Interface, Inc. Cl. A 220,900 2,761,250 220,900 2,761,250
Juno Lighting, Inc. 160,000 2,560,000 160,000 2,560,000
Kaufman & Broad Home Corp. 43,000 623,500 43,000 623,500
La-Z-Boy Chair Co. 90,800 2,394,850 90,800 2,394,850
M/I Schottenstein Homes, Inc. 72,200 631,750 72,200 631,750
Medusa Corporation 92,650 2,304,668 15,200 378,100 107,850 2,682,768
Redman Industries, Inc. 100,000 2,175,000 100,000 2,175,000
Ryland Group, Inc. 85,700 1,381,913 85,700 1,381,913
Southern Energy Homes, Inc. 35,000 490,000 35,000 490,000
Standard Pacific Corp. 158,200 1,087,625 158,200 1,087,625
Sundance Homes, Inc. 113,000 296,625 113,000 296,625
Toll Brothers, Inc. 15,000 241,875 15,000 241,875
Total Building, Construction, & Furnishings 18,795,556 378,100 19,173,656
Business Equipment & Services 2.9%
Boole & Babbage, Inc. 52,500 1,575,000 52,500 1,575,000
Bowne & Co., Inc. 101,400 1,736,475 101,400 1,736,475
Cisco Systems, Inc. 30,000 1,516,875 30,000 1,516,875
EIS International, Inc. 40,000 645,000 40,000 645,000
Gradco Systems, Inc. 104,800 320,950 104,800 320,950
HON Industries Inc. 20,000 530,000 20,000 530,000
In Focus Systems, Inc. 30,000 810,000 30,000 810,000
Intuit, Inc. 15,000 1,140,000 15,000 1,140,000
Mark IV Industries Incorporated 15,750 338,625 15,750 338,625
McGrath Rent Corp. 33,000 577,500 33,000 577,500
Merisel, Inc. 47,930 365,466 47,930 365,466
Personnel Management, Inc. 14,850 207,900 14,850 207,900
Pitney Bowes, Inc. 90,000 3,453,750 90,000 3,453,750
Sensormatic Electronics Corp. 40,000 1,420,000 40,000 1,420,000
Zebra Technologies Corp. 60,000 3,195,000 60,000 3,195,000
Total Business Equipment & Services 17,493,916 338,625 17,832,541
Chemicals, Healthcare & Agricultural Products 18.8%
Arbor Drugs, Inc. 75,000 1,200,000 75,000 1,200,000
Arrow International, Inc. 15,000 633,750 15,000 633,750
Biomet, Inc. 130,000 2,015,000 130,000 2,015,000
Boston Scientific Corp. 68,298 2,176,999 68,298 2,176,999
Caremark International, Inc. 136,000 2,720,000 136,000 2,720,000
Circon Corp. 30,000 585,000 30,000 585,000
Coherent, Inc. 90,000 2,643,750 90,000 2,643,750
Columbia/HCA Healthcare Corp. 90,200 3,901,150 90,200 3,901,150
Express Scripts, Inc. 40,000 1,410,000 40,000 1,410,000
FHP International Corporation 54,828 1,261,044 11,000 253,000 65,828 1,514,044
Foundation Health Corp. 28,974 782,298 28,974 782,298
Health Management Associates Inc, Class A 11,800 345,150 11,800 345,150
HealthSouth Rehabilitation Corporation 16,800 291,900 16,800 291,900
Idexx Laboratories, Inc. 240,000 6,240,000 240,000 6,240,000
Invacare Corp. 20,000 830,000 20,000 830,000
Isomedix, Inc. 55,000 742,500 55,000 742,500
Johnson & Johnson 195,000 13,186,875 195,000 13,186,875
Laboratory Corporation of America Holdings 14,500 192,125 14,500 192,125
Living Centers of America, Inc. 104,600 2,837,275 104,600 2,837,275
Lumex, Inc. 31,000 337,125 31,000 337,125
Maxxim Medical, Inc. 20,000 300,000 20,000 300,000
McKesson Corp. 117,900 5,511,825 117,900 5,511,825
Merck & Co., Inc. 500,000 24,500,000 500,000 24,500,000
Mid Atlantic Medical Services, Inc. 15,000 277,500 15,000 277,500
Minntech Corp. 24,750 358,875 24,750 358,875
Nalco Chemical Co. 30,000 1,091,250 30,000 1,091,250
Physician Corporation of America 50,000 681,250 50,000 681,250
Physicians Health Services, Inc. 63,500 1,682,750 63,500 1,682,750
Psicor, Inc. 90,000 1,035,000 90,000 1,035,000
Regency Health Services, Inc. 44,200 464,100 44,200 464,100
Regeneron Pharmaceutical 25,000 225,000 25,000 225,000
Ren Corp.-USA 40,000 635,000 40,000 635,000
Salick Health Care, Inc. 45,000 1,665,000 45,000 1,665,000
Schulman (A.), Inc. 349,568 10,050,080 349,568 10,050,080
Sigma-Aldrich Corp. 45,000 2,210,625 45,000 2,210,625
St. Jude Medical, Inc. 75,000 3,759,375 75,000 3,759,375
Stryker Corp. 226,500 8,691,938 226,500 8,691,938
Sun HealthCare Group Incorporated 128,000 2,016,000 12,200 192,150 140,200 2,208,150
Superior Surgical Manufacturing Co., Inc. 39,600 415,800 39,600 415,800
Target Therapeutics Inc. 7,400 325,600 7,400 325,600
Tecnol Medical Products, Inc. 75,750 1,666,500 75,750 1,666,500
Tenet Healthcare Corp. 50,000 718,750 50,000 718,750
United Healthcare Corp. 20,000 827,500 20,000 827,500
Total Chemicals, Healthcare &
Agricultural Products 112,479,009 1,407,800 113,886,809
Consumer Products & Services 5.2%
Aaron Rents, Inc. Cl. B 70,000 1,050,000 70,000 1,050,000
American Business Information, Inc. 70,000 1,890,000 70,000 1,890,000
Anthony Industries, Inc. 185,030 3,399,926 185,030 3,399,926
Arctco, Inc. 60,000 705,000 60,000 705,000
Barry (R.G.)Corp 53,500 956,312 53,500 956,312
Children's Discovery Centers of America, Inc. 25,000 418,750 25,000 418,750
Chiquita Brands International Inc. 22,200 310,800 22,200 310,800
Circle K Corp. 75,000 1,265,625 75,000 1,265,625
Crown Crafts, Inc. 135,300 2,232,450 135,300 2,232,450
Deckers Outdoor Corp. 125,700 1,272,713 125,700 1,272,713
Franklin Electric Co., Inc. 30,000 922,500 30,000 922,500
Garan, Inc. 60,600 1,015,050 60,600 1,015,050
Handleman Company 26,400 254,100 26,400 254,100
Harman International Industries, Inc. 48,000 1,944,000 48,000 1,944,000
Kellwood Co. 28,750 488,750 28,750 488,750
Lancaster Colony Corp. 297,777 10,645,528 297,777 10,645,528
Nautica Enterprises, Inc. 30,000 1,087,500 30,000 1,087,500
Recovery Engineering, Inc. 35,000 542,500 35,000 542,500
Roto-Rooter, Inc. 23,000 626,750 23,000 626,750
Universal Corporation-Virginia 13,600 285,600 13,600 285,600
Waban Incorporated (ST) 16,200 240,975 16,200 240,975
Total Consumer Products & Services 30,463,354 1,091,475 31,554,829
Durable Goods 2.1%
Adaptec Incorporated 8,000 296,000 8,000 296,000
Agco Corporation 8,000 300,000 8,000 300,000
Augat Incorporated 15,200 311,600 15,200 311,600
Banyan Systems Incorporated 20,000 275,000 20,000 275,000
Belden Incorporated 16,000 432,000 16,000 432,000
Black Box Corporation 19,000 270,750 19,000 270,750
Briggs and Stratton Corporation 8,200 282,900 8,200 282,900
Cellular Communications of Puerto Rico 9,200 281,750 9,200 281,750
Cerner Corporation 5,200 318,500 5,200 318,500
Comdisco Incorporated 10,600 321,975 10,600 321,975
Comsat Corporation 15,600 306,150 15,600 306,150
Davidson and Associates Incorporated 9,800 389,550 9,800 389,550
Elan Corp. Public Limited Company ADR 9,200 374,900 9,200 374,900
Electronic Arts Incorporated 12,200 330,925 12,200 330,925
Equitable of Iowa 10,500 345,188 10,500 345,188
Exabyte Corporation 18,000 249,750 18,000 249,750
Firstier Financial Incorporated 9,200 338,100 9,200 338,100
Frame Technology Corporation 12,000 351,000 12,000 351,000
FTP Software Incorporated 11,400 342,000 11,400 342,000
Global Industries Limitied 13,800 307,050 13,800 307,050
Griffon Corporation 33,000 264,000 33,000 264,000
Indresco Incorporated 23,200 359,600 23,200 359,600
Medisense Incorporated 19,000 368,125 19,000 368,125
Micro Warehouse Incorporated 9,000 414,000 9,000 414,000
NewPark Resources, Inc. 14,600 306,600 14,600 306,600
OM Group Incorporated 11,000 313,500 11,000 313,500
Pacific Physician Services 16,200 210,600 16,200 210,600
Ply-Gem Ind. Inc. 17,000 301,750 17,000 301,750
Price T. Rowe and Associates, Incorporated 9,000 346,500 9,000 346,500
Proxima Corporation 12,000 286,500 12,000 286,500
Sierra Pacific Resources 16,000 348,000 16,000 348,000
SpaceLabs Medical Incorporated 13,600 345,100 13,600 345,100
Sybron International Corporation 8,400 334,950 8,400 334,950
Terra Industries Incorporated 31,000 375,875 31,000 375,875
Titan Wheel International Incorporated 12,600 324,450 12,600 324,450
Union Planters 11,400 304,950 11,400 304,950
Wackenhut Corrections Corp. 14,400 327,600 14,400 327,600
Watkins Johnson Company 8,200 364,900 8,200 364,900
Xircom 18,600 188,325 18,600 188,325
Zions Bancorporation 7,600 380,000 7,600 380,000
Total Durable Goods 12,890,413 12,890,413
Environmental Services 0.6%
Handex Environmental Recovery, Inc. 127,000 889,000 127,000 889,000
Watts Industries, Inc. Cl. A 40,000 1,002,500 40,000 1,002,500
Western Waste Industries, Inc. 100,000 2,012,500 100,000 2,012,500
Total Environmental Services 267,000 3,904,000 267,000 3,904,000
Finance & Insurance 10.4%
Allmerica Property & Casualty Cos., Inc. 172,200 3,809,925 172,200 3,809,925
AMBAC, Inc. 189,400 7,599,675 189,400 7,599,675
Cole Taylor Financial Group, Inc. 50,000 850,000 50,000 850,000
Countrywide Credit Industries, Inc. 25,000 525,000 25,000 525,000
Executive Risk, Inc. 149,300 2,836,700 149,300 2,836,700
Federal Home Loan Mortgage Corp. 126,900 8,724,375 126,900 8,724,375
Federal National Mortgage Association 159,500 15,052,813 159,500 15,052,813
First American Financial Corp. 50,000 1,156,250 50,000 1,156,250
John Nuveen Co. (The) Cl. A 97,000 2,328,000 97,000 2,328,000
MBIA, Inc. 70,900 4,714,850 70,900 4,714,850
MGIC Investment Corp. 253,800 11,896,875 253,800 11,896,875
National RE Corp. 15,000 502,500 15,000 502,500
Penncorp Financial Group Incorporated 16,600 307,100 16,600 307,100
Providian Corp. 23,992 869,710 23,992 869,710
Reliastar Financial Corporation 9,800 374,850 9,800 374,850
Resource Bancshares Mortgage Group Inc. 63,669 811,781 63,669 811,781
State Auto Financial Corp. 20,000 375,000 20,000 375,000
Total Finance & Insurance 62,053,454 681,950 62,735,404
Food Retailing & Distribution 0.6%
Coca-Cola Bottling Co. Consolidated Cl. B 16,500 513,645 16,500 513,645
Cracker Barrel Old Country Store, Inc. 55,405 1,142,728 55,405 1,142,728
Seaway Food Town, Inc. 134,000 1,976,500 134,000 1,976,500
Total Food Retailing & Distribution 3,632,873 3,632,873
Information Services & Technology 6.7%
Atmel Corp. 25,000 1,384,375 25,000 1,384,375
Autodesk, Inc. 120,000 5,160,000 120,000 5,160,000
Bisys (The) Group, Inc. 25,000 556,250 25,000 556,250
C U C International, Inc. 25,000 1,050,000 25,000 1,050,000
Dialogic Corp. 25,000 443,750 25,000 443,750
First Financial Management Corp. 93,679 8,009,555 93,679 8,009,555
HBO Company 55,000 2,997,500 6,000 327,000 61,000 3,324,500
Intel Corp. 172,000 10,889,750 172,000 10,889,750
Intersolv Inc. 10,000 232,500 10,000 232,500
Keane, Inc. 25,000 621,875 25,000 621,875
Molex, Inc. 38,750 1,501,562 38,750 1,501,562
Parametric Technology Corp. 45,000 2,238,750 45,000 2,238,750
Park Electrochemical Group 6,800 344,250 6,800 344,250
Silicon Graphics, Inc. 80,000 3,190,000 80,000 3,190,000
Three-Five Systems Incorporated 15,000 515,625 10,800 371,250 25,800 886,875
Trimble Navigation Ltd. 19,000 539,125 19,000 539,125
Wave Technologies International Inc. 25,000 206,250 25,000 206,250
Total Information Services & Technology 39,881,117 698,250 40,579,367
Metals, Mining, Energy, Construction and Industrial Products 8.7%
Adflex Solutions Inc. 25,000 612,500 25,000 612,500
Breed Technologies, Inc. 55,000 1,320,000 55,000 1,320,000
Cabot Corporation 6,400 337,600 6,400 337,600
Cleveland-Cliffs Incorporated 7,800 300,300 7,800 300,300
Dionex Corp. 72,500 3,316,875 72,500 3,316,875
Fisher Scientific International, Inc. 73,000 2,418,125 73,000 2,418,125
Fuller (H.B.) Co. 182,000 6,734,000 182,000 6,734,000
Galey & Lord Inc. 85,000 1,179,375 85,000 1,179,375
Greenbrier Companies Inc. 15,000 196,875 15,000 196,875
Input/Output Incorporated 9,000 324,000 9,000 324,000
Leggett & Platt, Inc. 70,400 3,097,600 70,400 3,097,600
Masland Corp. 90,000 1,158,750 90,000 1,158,750
Material Sciences Corp. 122,900 2,504,087 122,900 2,504,087
Nacco Industries, Inc. Cl. A 33,900 2,029,762 33,900 2,029,762
Osmonics, Inc. 66,000 1,072,500 66,000 1,072,500
Paxar Corp. 149,750 2,676,781 149,750 2,676,781
Roanoke Electric Steel Corp. 19,500 219,375 19,500 219,375
Smith (A.O.)Corp. 57,600 1,353,600 57,600 1,353,600
Superior Industries International Inc. 79,600 2,477,550 10,100 314,363 89,700 2,791,913
Tecumseh Products Co. Cl. A 178,400 7,849,600 178,400 7,849,600
Tecumseh Products Co. Cl. B 57,800 2,528,750 57,800 2,528,750
Teleflex, Inc. 91,600 3,938,800 91,600 3,938,800
Total Petroleum of North America 24,600 270,600 24,600 270,600
Truck Components, Inc. 75,000 1,181,250 75,000 1,181,250
Walbro Corp. 135,300 2,435,400 135,300 2,435,400
Wescast Industries, Inc. 50,000 512,500 50,000 512,500
Worthington Industries, Inc. 13,000 265,688 13,000 265,688
Total Metals, Mining, Energy,
Construction and Industrial Products 51,079,743 1,546,863 52,626,606
Paper & Packaging 0.8%
Avery Dennison Corp. 20,000 800,000 20,000 800,000
St. Joe Paper Co. 6,500 412,750 6,500 412,750
Wausau Paper Mills Co. 148,350 3,388,341 148,350 3,388,341
Total Paper & Packaging 174,850 4,601,091 174,850 4,601,091
Publishing, Broadcasting & Entertainment 3.8%
Clear Channel Communications, Inc. 214,250 13,792,344 214,250 13,792,344
EZ Communications, Inc. Cl. A 50,000 925,000 50,000 925,000
Grupo Televisa, S.A. GDR 38,000 774,250 38,000 774,250
Jacor Communications, Inc. 130,800 2,092,800 130,800 2,092,800
Multimedia, Inc. 2,000 77,500 2,000 77,500
Wiley, (John) & Sons, Inc. Cl. A 95,000 5,403,125 95,000 5,403,125
Total Publishing,
Broadcasting & Entertainment 23,065,019 23,065,019
Real Estate 3.1%
Alexander's, Inc. 138,760 7,701,180 138,760 7,701,180
Apartment Investment & Management Co. 50,000 1,012,500 50,000 1,012,500
Carr Realty Corp. 100 1,725 100 1,725
CBL and Associates Properties REIT 15,800 314,025 15,800 314,025
Chelsea GCA Realty, Inc. 54,000 1,458,000 54,000 1,458,000
Clayton Homes Inc. 80,000 1,310,000 21,500 352,063 101,500 1,662,063
FRP Properties, Inc. 47,400 1,019,100 47,400 1,019,100
Health and Retirement Property Trust REIT 19,600 294,000 19,600 294,000
Horizon Outlet Centers, Inc. 50,000 1,162,500 50,000 1,162,500
Host Marriott Corp. 80,000 850,000 80,000 850,000
Irvine Apartment Commmunities, Inc. 40,000 690,000 40,000 690,000
U.S. Home Corp. 45,000 1,035,000 45,000 1,035,000
Webb (Del) Corp. 29,300 681,225 29,300 681,225
Wellsford Residential Property Trust 30,500 693,875 30,500 693,875
Total Real Estate 17,615,105 960,088 18,575,193
Retailing & Wholesale 5.7%
American Eagle Outfitters, Inc. 40,000 630,000 40,000 630,000
Blair Corp. 41,800 1,436,875 41,800 1,436,875
Burlington Coat Factory Warehouse 60,000 622,500 60,000 622,500
Campo Electronics, Appliances & Computers, Inc. 60,000 397,500 60,000 397,500
Dillard Department Stores, Inc. Cl. A 300,000 8,812,500 300,000 8,812,500
Fingerhut Companies, Inc. 268,800 4,200,000 268,800 4,200,000
Forstmann & Co., Inc. 26,300 46,025 26,300 46,025
Gymboree Corporation 12,000 348,750 12,000 348,750
Heilig-Meyers Co. 20,000 510,000 20,000 510,000
Jones Apparel Group, Inc. 50,000 1,493,750 50,000 1,493,750
Leslie's Poolmart 120,225 1,803,375 120,225 1,803,375
Lillian Vernon Corp. 42,000 771,750 42,000 771,750
Lowe's Companies, Inc. 48,300 1,442,962 48,300 1,442,962
Medicine Shoppe International, Inc. 154,000 5,409,250 154,000 5,409,250
Mercantile Stores Co., Inc. 98,900 4,598,850 98,900 4,598,850
Michaels Stores Incorporated 40,500 860,625 10,000 212,500 50,500 1,073,125
West Maine, Inc. 25,000 640,625 25,000 640,625
Total Retailing & Wholesale 33,676,587 561,250 34,237,837
Telecommunication Services & Equipment 1.1%
Aspect Telecommunications Corp. 35,000 1,566,250 7,000 313,250 42,000 1,879,500
Boston Technology, Inc. 75,000 1,396,875 75,000 1,396,875
Coherent Communications Systems Corp. 50,000 837,500 50,000 837,500
Level One Communications, Inc. 35,000 752,500 35,000 752,500
Vertex Communications Corp. 110,000 1,512,500 110,000 1,512,500
Total Telecommunication Services &
Equipment 6,065,625 313,250 6,378,875
Transportation 1.9%
Atlantic Southeast Airlines, Inc. 135,000 4,066,875 135,000 4,066,875
Florida East Coast Industries, Inc. 1,600 118,000 1,600 118,000
Heartland Express, Inc. 94,166 2,401,233 94,166 2,401,233
Skywest, Inc. 95,000 2,149,375 95,000 2,149,375
TNT Freightways Corp. 100,000 1,987,500 100,000 1,987,500
Wabash National Corporation 18,800 585,150 9,800 305,025 28,600 890,175
Total Transportation 11,308,133 305,025 11,613,158
Miscellaneous 0.1%
Lincare Holdings 10,400 276,250 10,400 276,250
Pittston Services Group 13,000 312,000 13,000 312,000
Renal Treatment Centers Incorporated 12,200 300,425 12,200 300,425
Total Miscellaneous 888,675 888,675
Total Common Stock (Cost $347,603,718) 563,108,075 23,732,664 20,269,221 586,840,739
Repurchase Agreements * 0.2%
J.P. Morgan 6.20% due 7/3/95 1,157,457 1,157,457
Total Repurchase Agreements (Cost $1,157,457)
1,157,457 1,157,457
Short Term Investments 2.1%
Dayton Hudson 6.05% 7/31/95 500,000 497,479 500,000 497,479
Fed Farm Cr Bk 5.85% 7/31/95 7,000,000 6,965,875 7,000,000 6,965,875
Fed Home Loan Bk 5.91% 7/5/95 5,000,000 4,996,717 5,000,000 4,996,717
Total Short Term Investments
(Cost $12,460,071) 12,460,071 12,460,071
Total Investments
(Cost $361,221,246)** 99.3% 575,568,145 24,890,120 600,458,265
Other Assets & Liabilities-net 0.7% 4,449,950 4,953 4,454,903
Net Assets 100.0% $580,018,095 $24,895,073 $604,913,168
</TABLE>
* The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices at the date
of the portfolio
** Also represents cost for federal tax purposes.
(See Notes which are an integral part of the Pro-Forma Financial Statements)
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Evergreen FFB Lexicon Pro Forma
Fund Small Co Adjustments Combined
<S> <C> <C> <C> <C>
ASSETS
Cash $ 327,016 $ 171 $ 327,187
Investments, at value (Cost $ 361,221,246) 575,568,145 24,890,120 600,458,265
Dividends receivable 989,974 15,678 1,005,652
Receivable for investment securities sold 3,042,839 0 3,042,839
Receivable for fund shares sold 2,078,334 0 2,078,334
Prepaid expenses 65,492 12,740 78,232
TOTAL ASSETS 582,071,800 24,918,709 606,990,509
LIABILITIES:
Payable for investment securities purchased 1,411,130 0 1,411,130
Payable for fund shares repurchased 46,690 0 46,690
Dividends payable 3,596 0 3,596
Accrued expenses 592,289 23,636 615,925
TOTAL LIABILITIES 2,053,705 23,636 2,077,341
NET ASSETS $ 580,018,095 $ 24,895,073 $ 604,913,168
NET ASSETS CONSIST OF:
Paid in capital 318,683,531 20,430,990 339,114,521
Undistributed net investment income 1,169,360 424 1,169,784
Accumulated realized gain on investments 23,126,916 2,264,928 25,391,844
Net unrealized appreciation of investments 237,038,288 2,198,731 239,237,019
NET ASSETS $ 580,018,095 $ 24,895,073 $ 604,913,168
Net asset value and offering price per share:
Class A $ 14.45 $ - $ 14.45
Maximum offering price (4.75% sales charge) $ 15.17 $ - $ 15.17
Class B $ 14.41 $ - $ 14.41
Class C $ 14.41 $ - $ 14.41
Class Y $ 14.47 $ $12.58 $ 14.47
Net Assets:
Class A 16,081,699 - 16,081,699
Class B 39,051,974 - 39,051,974
Class C 954,298 - 954,298
Class Y 523,930,124 24,895,073 548,825,197
Shares outstanding:
Class A 1,112,610 - 1,112,610
Class B 2,710,358 - 2,710,358
Class C 66,245 - 66,245
Class Y 36,203,756 1,979,727 (259,266)(1) 37,924,217
</TABLE>
(See Notes which are an integral part of the Pro Forma Financial Statements)
(1)
<PAGE>
<TABLE>
<CAPTION>
Evergreen FFB Lexicon Pro Forma
Fund Small Co Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income $ 8,338,341 $ 249,186 $ 8,587,527
Interest income 403,002 80,376 483,378
TOTAL INCOME 8,741,343 329,562 9,070,905
OPERATING EXPENSES:
Investment advisory fee 5,182,377 171,846 (47,106)(1) 5,307,117
Trustees' fees 60,178 1,102 (1,102)(2) 60,178
Administrative personnel and service fees 0 38,952 (38,952)(1) 0
Custodian and portfolio accounting fees 122,722 1,275 29,435 (3) 153,432
Shareholder servicing fees 0 0 0 0
Transfer and dividend disbursing agent fees 271,567 183 0 271,743
Printing and postage 85,804 4,169 (3,949)(4) 86,024
Fund share registration costs 52,924 9 1,089 54,022
Professional fees 90,462 6,513 0 96,975
Insurance premiums 15,378 255 0 15,633
Rule 12b-1
Class A 7,282 0 0 7,282
Class B 72,313 0 0 72,313
Class C 1,812 0 0 1,812
Interest Expense 454,822 0 0 454,822
Organization costs 0 2,682 (2,682) 0
Miscellaneous 24,588 0 0 24,588
TOTAL OPERATING EXPENSES 6,442,229 226,986 (63,267) 6,605,948
Less fee waiver and expense reimbursements (10,949) (80,987) 80,492 (5) (11,444)
NET EXPENSES 6,431,280 145,999 17,255 6,594,504
NET INVESTMENT INCOME 2,310,063 183,563 (17,255) 2,467,401
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments 29,748,418 2,263,500 32,011,918
Net increase in unrealized
appreciation of investments 82,447,903 140,060 82,587,963
Net gain on investments 112,196,321 2,403,560 114,599,881
Net increase in net assets resulting from
operations $ 114,506,384 $ 2,587,123 (17,255) $ 117,076,282
</TABLE>
(See Notes which are an integral part of the Pro Forma Financial Statements)
(1) Reflects an decrease in investment advisory fee and a decrease in
administrative personnel and service fees based on the surviving Fund's fee
schedule.
(2) Reflects elimination of duplicate service fees.
(3) Based on surviving Fund's contract in effect for custodian and portfolio
accounting services.
(4) Adjustment reflects the expected cost savings when the Funds combine.
(5) Reflects an adjustment in waiver of investment advisory fee based on the
surviving Fund's voluntary advisory fee waiver in effect for the year ended
June 30, 1995.
Evergreen Fund
Notes to Pro Forma Combining Financial Statements (Unaudited)
June 30, 1995
1. Basis of Combination - The Pro forma Statement of Assets and
Liabilities, including the Pro forma Portfolio of Investments, and the
related Pro forma Statement of Operations ("Pro forma Statements") reflect
the accounts of Evergreen Fund ("Evergreen") and FFB Lexicon
Small Company Fund ("Lexicon") at June 30, 1995 and for the year
then ended.
The Pro forma Statements give effect to the proposed transfer of
all assets and liabilities of Lexicon in exchange for shares of
Evergreen. The Pro forma Statements do not reflect the expense
of each Fund in carrying out its obligations under the Agreement
and Plan of Reorganization. The actual fiscal year end of the
combined Fund will be September 30, the fiscal year end of Evergreen.
The Reorganization will be accomplished through the acquisition of
substantially all of the assets of Lexicon by Evergreen, and the
assumption by Evergreen of certain identified liabilities of
Lexicon. Thereafter there will be a distribution of such shares of
Evergreen to shareholders of Lexicon in liquidation of and
subsequent termination of Lexicon. The information contained
herein is based on the experience of each fund for the year ended
June 30, 1995 and is designed to permit shareholders of Lexicon to
evaluate the financial effect of the proposed Reorganization.
The expenses of Evergreen and Lexicon in connection with the
Reorganization (including the cost of any proxy soliciting agents),
will be borne by First Union National Bank of North Carolina.
The Pro forma Statements should be read in conjunction with the
historical financial statements of each Fund
incorporated by reference in the Statement of Additional
Information.
<PAGE>
2. Shares of Beneficial Interest - The pro forma net asset value per
share assumes the issuance of additional shares of Evergreen
Class Y which would have been issued at June 30, 1995 in connection
with the proposed reorganization. The amount of additional shares
assumed to be issued was calculated based on the June 30, 1995
net assets of Lexicon totaling $ 24,895,073 and the net asset value
per share of Evergreen Class Y of $ 14.47.
The pro forma shares outstanding of 1,112,610 Class A, 2,710,358
Class B, 66,245 Class C, and 37,924,217 Class Y consist of
1,720,461 additional shares of Class Y to be issued in the proposed
reorganization, as calculated above, in addition to shares of
Evergreen outstanding as of June 30, 1995.
3. Pro Forma Operations - The Pro Forma Statement of Operations
assumes similar rates of gross investment income for the
investments of each Fund. Accordingly, the combined gross
investment income is equal to the sum of each Fund's gross
investment income. Pro forma operating expenses include the actual
expenses of the Funds and the combined Fund, with certain expenses
adjusted to reflect the expected expenses of the combined entity.
The investment advisory fee, administrative personnel and service
fees have been charged to the combined Fund based on the fee
schedule in effect for Evergreen at the combined level of average
net assets for the year ended June 30, 1995. The Adviser may, at
its discretion, waive its fee or reimburse the Fund for certain of
its expenses in order to reduce the Fund's expense ratio. An
adjustment has been made to the combined Fund's expenses to
adjust the waiver of investment advisory fee based on the voluntary
advisory fee waiver in effect for Evergreen for the year ended
June 30, 1995. The Adviser may, at its discretion, revise or cease
this voluntary fee waiver at any time.
<PAGE>
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