EVERGREEN MUNICIPAL TRUST, N-30D, 1995-11-06

EVERGREEN MUNICIPAL TRUST
N-30D, 1995-11-06

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<PAGE>

EVERGREEN
MONEY MARKET FUNDS

(photo of cash) (photo of eagle) (photo of coins)

(photo of evergreens)

1995 Annual Report
A Shares B Shares Y Shares

(Evergreen logo)
Evergreen
Funds

<PAGE>
EVERGREEN MONEY MARKET FUNDS
TABLE OF CONTENTS
<TABLE>
<S> <C> <C>

A Review of the Past Year
(photo of cash) and Prospects for the Future.............................................. 1
MONEY MARKET A Report From Your Portfolio Manager...................................... 3
FUND Statement of Investments.................................................. 4
Statement of Assets and Liabilities....................................... 8
Statement of Operations................................................... 9
Statement of Changes in Net Assets........................................ 10
Financial Highlights...................................................... 11

(photo of eagle) TAX-EXEMPT A Report From Your Portfolio Manager...................................... 13
MONEY MARKET FUND Statement of Investments.................................................. 14
Statement of Assets and Liabilities....................................... 26
Statement of Operations................................................... 27
Statement of Changes in Net Assets........................................ 28
Financial Highlights...................................................... 29

(photo of coins) TREASURY A Report From Your Portfolio Manager...................................... 30
MONEY MARKET FUND Statement of Investments.................................................. 31
Statement of Assets and Liabilities....................................... 32
Statement of Operations................................................... 33
Statement of Changes in Net Assets........................................ 34
Financial Highlights...................................................... 35

Combined Notes to Financial Statements.................................... 36
Report of Independent Accountants -- Price Waterhouse LLP................. 42
Independent Auditors' Report -- KPMG Peat Marwick LLP..................... 43
Trustees and Officers..................................................... IBC
</TABLE>

<PAGE>
EVERGREEN MONEY MARKET FUNDS
A REVIEW OF THE PAST YEAR AND
PROSPECTS FOR THE FUTURE
BY STEPHEN A. LIEBER, CHAIRMAN
EVERGREEN ASSET MANAGEMENT CORP.
In projecting the outlook for the United States
economy in the final months of 1995, one central fact
dominates the discussion; inflation is being held to (photo of Stephen Lieber)
the very low single digits. For a nation which has,
for over twenty-five years, been preoccupied in all
economic forecasting with apprehension over the outlook for inflation, this is a
period of remarkable calm. Instead of concerns over inflation, the dominant
anxiety with which investors look to the future, is now that of the price level
of securities; stocks and bonds. That price level, however, is a reflection of
changing perceptions of the inflation risk. Comparison of inflation rates,
interest rates, and equity valuation, at the beginning of the long-bull market
which began in the summer of 1982, clarifies these points. The inflation rate
fell from 7.2% in the second quarter of 1982, to 2.5% in the third quarter of
1995. Thirty-year U.S. Treasury Bond yields fell from 12.97% to 6.52%, and
90-day U.S. Treasury Bill rates from 11.91% to 5.31%, while price/earnings
ratios have risen (on the S&P 500 Stock Index) from 7.8 times to 16.6 times.
Clearly, both bonds and stocks are worth more in this environment of lowered
inflation and reduced inflationary expectations.

Thus far, in 1995, the hoped for "soft landing" of the economy into a slower,
non-inflationary expansion has been achieved. The issue of its future course is,
however, open to analysis and debate. There can be little debate over today's
cautious policies. There is a broad acceptance of the need to sustain low
leverage financial policies; minimizing the build-up of debt by both government
and industry, accelerating productivity gains, and economizing resources. This
is not only an anti-inflationary mentality, but it is also a conservative,
counter-expansionary economic growth policy. Politicians are prouder of
cut-backs than of expansion in public services. Businessmen boast of "re-
engineering" which results in lay-offs, rather than of hiring. When new
facilities are built, they are described as enhancers of productivity, not just
as producers of products or services. Business and labor alike think of their
pricing as competing in the world market. Industry wants to sell in the world
markets, and labor does not want to be outpriced by alternative manufacturing
sources in low labor cost countries. These policies push productivity,
price-restraint, and wage-restraint.
Policies of restraint, evident in so many sectors of the economy, lead some
observers to apprehensions that they will be over-done. If consumer demand slows
and business inventories build, it is argued, then a cycle of manufacturing
cutbacks will lead to accelerating lay-offs and another recessionary period. The
counter-argument holds that there are enough dynamic growth potentials on the
horizon for consumer products and services, and for increasing exports, so that
this negative prediction will not be realized. This positive point of view looks
to the increasing demand for American products, particularly technologically
sophisticated consumer and capital goods products, and the output of our
multi-national corporations which sell products in developing countries to
accelerate demand for our exports. It holds that the rapid technological change,
notably in electronics and communications, is bringing enough new demand from
both the industrial and the consumer
sectors to act as the catalyst for overall consumer and industrial goods demand
growth.
Whether the "soft landing" scenario continues in the next few months, and the
economy shows modest expansion, or a slowdown begins to emerge, the likelihood
is that inflation will remain under control. This provides for a continuing
pattern of the recently lowered interest rate levels. Whether long-term and
short-term interest rates move significantly lower than today's 6.3%, 30-year
U.S. Treasury Bonds, and 5.5%, 1-year U. S. Treasury Bills, depends not only on
the strengthening or weakening of the domestic economy, but also on the
comparative interest rates being paid by other major industrial nations, and the
stability of the dollar. Our interest rates must be in equilibrium

1
<PAGE>

EVERGREEN MONEY MARKET FUNDS

A REVIEW OF THE PAST YEAR AND
PROSPECTS FOR THE FUTURE -- (continued)

with others, when adjusted for their inflation rates and the values of our
currency. Presently, the trends in the major industrial countries, Germany and
Japan, suggest continued slower growth than that recently experienced by the
American economy, with prospective declining inflationary trends. This should
enable the United States Federal Reserve to retain sufficient flexibility, so
that rates can be brought down if the economy slows too rapidly and, thus, to
sustain our economic strength without being pressured toward unreasonably high
interest rates.
We believe that the general level of valuation of both stocks and bonds is
likely to be sustained. Individual equity issues will, of course, reflect
prevailing business conditions. Emphasis in owning equities, we believe, should
be on powerful business franchises, companies with both leadership and dynamic
growth characteristics, providing vital services or products. On average, the
level of equities valuation is in line with current interest rate trends, but,
it is apparent that large sectors of the market are priced on highly optimistic
growth expectations. These sectors and issues are subject to quick and major
downward revaluation to the extent that their businesses fail to show strong
evidence of continued high growth rates. As the economy remains slower than over
the past two years, it will evidently be more difficult to show extraordinary
growth rates. Therefore, we anticipate a renewed interest in those businesses
which are undervalued in terms of their growth potential, especially those
beginning, or, in process of, programs for profit margin improvement and profits
growth.
We continue to believe that the merger and acquisition trend will continue,
as larger companies seek to capitalize on opportunities for economies of scale
and synergies through mergers and acquisitions. This movement, already strong,
is expected to broaden as a deregulatory atmosphere continues to develop through
new legislative initiatives.
In summary, we anticipate an environment where careful selection of equities
and careful analysis of current economic trends in fixed income investing will
combine to sustain rewarding long-term investment programs.
October 20, 1995

2
<PAGE>
EVERGREEN MONEY MARKET ANNUAL REPORT

(photo of cash)

A REPORT FROM YOUR
PORTFOLIO MANAGER
BY ETHEL SUTTON
We are pleased to bring you the 1995 Annual Report for
Evergreen Money Market Fund. On July 7, 1995, the First Union
Money Market Fund was combined into the Evergreen Money Market (photo of
Fund. As of August 31, the Fund's assets totalled approximately Ethel Sutton)
$976 million.
At their July 6 meeting, the Federal Open Market Committee
shaved one-quarter of a percent off the Federal Funds rate, the
primary interbank lending rate, in response to the decline in
inflation. Since inflationary forces are clearly at bay, many
economists are now predicting further interest rate cuts during
the remainder of the year.
We think that interest rates may be headed lower, or at least
remain stable through 1995, therefore, we have tried to lock in
higher rates for our investors by pushing out the Fund's average
days to maturity. On March 1, the Fund's average weighted
maturity was 53 days; on August 31, it was 81 days.
As this strategy indicates, we take a pro-active approach to managing the
Fund's investment portfolio. For instance, we often capitalize on market
anomalies that can cause similar securities to sell at different prices, and we
try to enhance yield by trading on these differences.

The Fund continues to be well-diversified in high-quality liquid money market
instruments. We will continue to strive to provide the same competitive
performance that has always been the hallmark of Evergreen Money Market Fund.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN
A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
* HAD EXPENSES NOT BEEN ABSORBED THE 7-DAY CURRENT AND EFFECTIVE YIELDS AS OF
AUGUST 31, 1995, WOULD HAVE BEEN 5.29% AND 5.43%, RESPECTIVELY. YIELDS
FLUCTUATE.
10/95
3

<PAGE>
EVERGREEN MONEY MARKET FUND
STATEMENT OF INVESTMENTS
(photo of cash) AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<C> <S> <C>
BANKERS' ACCEPTANCES* -- 3.4%
Bank of America:
$ 1,000 6.16%, 9/18/95....................... $ 997,091
3,000 6.16%, 9/20/95....................... 2,990,247
2,000 6.16%, 9/25/95....................... 1,991,787
5,000 Bank of Tokyo, Ltd.,
6.18%, 9/22/95....................... 4,981,975
CoreStates Bank:
1,000 5.64%, 2/1/96........................ 976,030
4,000 5.64%, 2/13/96....................... 3,896,600
3,000 Credit Suisse,
5.98%, 11/2/95....................... 2,969,103
Mitsubishi Bank, Ltd.:
1,000 6.05%, 9/22/95....................... 996,471
1,500 6.06%, 10/16/95...................... 1,488,637
7,950 5.74%, 11/21/95...................... 7,847,326
4,501 State Street Bank & Trust Co.,
5.55%, 12/13/95...................... 4,429,919
TOTAL BANKERS' ACCEPTANCES
(COST $33,565,186)................... 33,565,186
CERTIFICATES OF DEPOSIT -- 5.1%
10,000 Bayerische Hypotheken-Und
Wechsel-Bank AG,
6.10%, 8/19/96....................... 10,000,000
10,000 Canadian Imperial Holdings Inc.,
6.00%, 7/19/96....................... 10,000,000
10,000 First National Bank of Boston,
6.33%, 9/27/95....................... 9,999,852
10,000 Huntington National Bank,
6.05%, 8/1/96........................ 10,000,000
10,000 Societe Generale,
6.00%, 6/12/96....................... 10,000,000
TOTAL CERTIFICATES OF DEPOSITS
(COST $49,999,852)................... 49,999,852
COMMERCIAL PAPER* -- 77.1%
BANK HOLDING COMPANIES -- 16.6%
Banca CRT Financial Corp.:
10,000 5.66%, 2/8/96........................ 9,748,444
5,000 5.70%, 2/28/96....................... 4,857,500
8,100 Bank of Nova Scotia,
5.67%, 11/1/95....................... 8,022,179
Bankers Trust New York Corp.:
15,000 6.10%, 10/11/95...................... 14,898,333
5,000 5.95%, 11/6/95....................... 4,945,458
20,000 B.B.V. Finance (DE) Inc.,
5.55%, 4/22/96....................... 19,278,500

<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<C> <S> <C>
BANK HOLDING COMPANIES -- CONTINUED
BIL North America Inc.:
$ 14,000 5.68%, 10/10/95...................... $ 13,913,853
13,200 5.68%, 10/13/95...................... 13,112,528
Compagnie Bancaire:
2,100 5.75%, 10/2/95....................... 2,089,602
1,400 5.62%, 1/4/96........................ 1,372,681
Great Western Bank:
10,000 5.75%, 11/2/95....................... 9,900,972
7,000 5.74%, 11/9/95....................... 6,922,988
10,000 Internationale Nederlanden
(U.S.) Funding Corp.,
5.64%, 2/23/96....................... 9,725,833
5,700 MPS U.S. Commercial
Paper Corp.,
5.65%, 2/7/96........................ 5,557,761
Svenska Handelsbanken Inc.:
7,500 6.13%, 9/5/95........................ 7,494,892
1,000 6.05%, 9/26/95....................... 995,799
2,000 6.12%, 9/29/95....................... 1,990,480
2,100 6.07%, 10/16/95...................... 2,084,066
1,200 5.61%, 2/2/96........................ 1,171,202
10,000 5.67%, 2/2/96........................ 9,757,450
14,000 Westpac Capital Corp.,
5.61%, 1/22/96....................... 13,688,022
161,528,543
CHEMICALS -- 1.9%
Akzo Nobel America Inc.:
6,500 5.67%, 11/9/95....................... 6,429,361
11,500 5.68%, 1/18/96....................... 11,247,792
1,073 Sinochem American Holdings Inc.,
(LOC: Credit Suisse),
5.73%, 10/10/95...................... 1,066,339
DIVERSIFIED -- 7.4%
Daewoo International Corp.,
(America), (LOC Korean
Development Bank):
10,900 5.77%, 10/5/95....................... 10,840,601
2,800 5.78%, 10/5/95....................... 2,784,715
2,500 5.80%, 10/5/95....................... 2,486,306
8,700 5.80%, 10/18/95...................... 8,634,122
13,000 5.80%, 12/4/95....................... 12,803,122
8,000 Mitsui & Co. (USA) Inc.,
5.70%, 11/22/95...................... 7,896,133
25,000 Rexam,
5.90%, 9/6/95........................ 24,979,514

</TABLE>

<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <S> <C>
18,743,492
DIVERSIFIED -- (CONTINUED)
$ 2,000 Sunkyong America Inc.,
(LOC: Credit Suisse),
5.73%, 10/10/95...................... $ 1,987,585
72,412,098
ELECTRIC POWER -- 1.7%
9,002 FPL Fuels Inc.,
(LOC: Sumitomo Bank, Ltd.),
5.78%, 10/30/95...................... 8,916,726
8,000 IES Utilities Inc.,
5.75%, 9/26/95....................... 7,968,056
16,884,782
ELECTRONICS -- 4.0%
Hitachi Credit America Corp.:
7,000 5.72%, 11/22/95...................... 6,908,798
3,000 5.67%, 2/23/96....................... 2,917,312
10,000 Seiko Corp. of America,
(LOC: Dai-Ichi Kangyo Bank, Ltd.),
6.10%, 10/17/95...................... 9,922,056
Toshiba America Inc.:
9,000 6.18%, 9/11/95....................... 8,984,550
10,000 5.88%, 11/7/95....................... 9,890,567
38,623,283
FINANCE -- 15.1%
10,000 Arena Funding Corp.,
(LOC: Bank of Tokyo, Ltd.),
5.82%, 12/29/95...................... 9,807,617
B.I. Funding Inc.:
18,000 5.70%, 9/29/95....................... 18,019,757
2,000 5.76%, 10/18/95...................... 1,984,960
5,102 Broadway Capital Corp.,
(LOC: Bank of Tokyo, Ltd.),
5.95%, 9/1/95........................ 5,102,000
10,406 Dynamic Funding Corp.,
(LOC: Fuji Bank, Ltd.),
5.90%, 10/2/95....................... 10,353,132
Finova Capital Corp.:
5,000 5.79%, 9/7/95........................ 4,995,175
3,200 6.05%, 9/22/95....................... 3,188,707
9,000 5.85%, 10/17/95...................... 8,932,725
10,000 5.65%, 1/10/96....................... 9,794,403
10,000 General Motors Acceptance Corp.,
5.94%, 9/20/95....................... 9,968,650
Island Finance Puerto Rico Inc.:
13,600 5.75%, 9/8/95........................ 13,584,794
10,000 5.70%, 10/16/95...................... 9,928,750

<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <S> <C>
FINANCE -- CONTINUED
$ 14,000 KFW International Finance Inc.,
5.72%, 9/25/95....................... $ 13,946,613
2,900 Merrill Lynch & Co., Inc.,
6.15%, 9/29/95....................... 2,886,128
10,000 Sierra Funding Corp.,
(LOC: Bank of Tokyo, Ltd.),
5.81%, 10/25/95...................... 9,912,850
5,000 Transamerica Finance Corp.,
6.05%, 10/20/95...................... 4,958,826
10,000 Tri-Lateral Capital (USA) Inc.,
(LOC: Industrial Bank of Japan,
Ltd.),
5.81%, 11/20/95...................... 9,870,889
147,235,976
FOOD & BEVERAGES -- 2.5%
13,500 American Home Food Products Corp.,
5.72%, 9/22/95....................... 13,454,955
3,800 Coca Cola Enterprises Inc.,
5.75%, 9/29/95....................... 3,783,006
7,200 UBFC Inc.,
5.78%, 10/3/95....................... 7,163,008
24,400,969
INSURANCE -- 2.7%
Allianz of America Finance Corp.:
10,000 6.03%, 10/5/95....................... 9,942,861
11,200 6.05%, 10/5/95....................... 11,136,193
5,088 5.70%, 11/9/95....................... 5,032,414
26,111,468
LEASING -- 2.1%
5,000 Fleet Funding Inc.,
5.74%, 10/6/95....................... 4,972,097
International Lease Finance Corp.,
3,600 6.18%, 9/25/95....................... 3,585,168
1,900 5.63%, 10/12/95...................... 1,887,817
10,000 Orix America Inc.,
(LOC: Sanwa Bank, Ltd.),
5.90%, 9/6/95........................ 9,991,806
20,436,888
MACHINERY, EQUIPMENT &
AUTOS -- 10.8%
American Honda Finance Corp.:
17,000 5.78%, 9/22/95....................... 16,942,682
3,000 6.18%, 9/22/95....................... 2,989,185
3,600 6.18%, 9/26/95....................... 3,584,550

</TABLE>
5

<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <S> <C>
MACHINERY, EQUIPMENT &
AUTOS -- (CONTINUED)
BMW U.S. Capital Corp.:
$ 800 6.15%, 9/22/95....................... $ 797,130
5,500 6.14%, 9/25/95....................... 5,477,487
3,100 6.16%, 9/27/95....................... 3,086,208
4,500 5.70%, 10/31/95...................... 4,457,250
5,000 5.75%, 11/15/95...................... 4,940,104
BTR Dunlop Finance Inc.:
10,000 6.15%, 9/13/95....................... 9,979,500
10,000 6.153%, 9/13/95...................... 9,979,500
1,800 Cooperative Association of Tractor
Dealers Inc.,
6.00%, 9/8/95........................ 1,797,900
4,900 Dealers Capital Access Trust Inc.,
5.70%, 11/17/95...................... 4,840,261
3,700 Hyundai Motor Finance Co.,
(LOC: Bank of America),
6.16%, 9/25/95....................... 3,684,805
Toyota Motor Credit Corp.:
5,000 6.15%, 12/27/95...................... 4,900,063
5,000 6.17%, 12/29/95...................... 4,898,024
23,400 Whirlpool Financial Corp.,
5.75%, 9/7/95........................ 23,377,575
105,732,224
NATURAL GAS -- 0.8%
7,500 Southern California Gas Co.,
5.60%, 3/1/96........................ 7,287,667
OIL -- 1.6%
1,000 Deer Park Refining Limited
Partnership,
5.70%, 9/15/95....................... 997,783
15,000 Pemex Capital Inc.,
5.90%, 9/5/95........................ 14,990,167
15,987,950
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <S> <C>
PHARMACEUTICALS & HEALTHCARE -- 5.7%
$ 15,000 American Home Products Corp.,
5.94%, 9/7/95........................ $ 14,985,150
Massachusetts College of Pharmacy and
Allied Health Services:
1,600 5.80%, 10/10/95...................... 1,589,947
8,728 5.70%, 10/19/95...................... 8,661,667
1,600 A.H. Robbins Co., Inc.,
5.87%, 9/18/95....................... 1,595,565
10,000 Sandoz Corp.,
5.70%, 11/7/95....................... 9,893,917
Sherwood Medical Co.:
10,000 5.95%, 9/5/95........................ 9,993,389
8,400 5.72%, 9/18/95....................... 8,377,311
55,096,946
REAL ESTATE -- 1.1%
1,200 Copley Financing Corp.,
5.78%, 9/5/95........................ 1,199,229
10,000 Embarcadero Center Venture (Three)
(LOC: Dai-Ichi Kangyo Bank, Ltd.),
5.70%, 10/5/95....................... 9,946,167
11,145,396
RETAIL -- 1.0%
4,800 Dayton Hudson Corp.,
5.70%, 10/16/95...................... 4,765,800
5,000 Hasbro Inc.,
5.63%, 12/20/95...................... 4,913,986
9,679,786
TELECOMMUNICATIONS -- 1.1%
10,000 Nynex Corp.,
6.06%, 9/25/95....................... 9,959,600
1,000 US West Communications Inc.,
5.70%, 9/18/95....................... 997,308
10,956,908
6

<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

<PAGE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <S> <C>
TRANSPORTATION -- 1.0%
$ 10,000 JAL Capital Corp.,
5.72%, 11/17/95...................... $ 9,877,655
TOTAL COMMERCIAL PAPER
(COST $752,142,031).................. 752,142,031
CORPORATE NOTES -- 13.3%
5,000 American Honda Finance Corp.,
5.937%, 1/26/96 (VR)................. 5,000,000
4,000 Beta Finance Inc.,
6.05%, 9/7/95 (VR)................... 3,999,967
13,820 Central Fidelity Bank, VA,
4.785%, 2/15/96...................... 13,737,663
4,000 CIT Group Holdings Inc.,
5.95%, 9/18/95 (VR).................. 3,999,755
7,000 Dean Witter Discover & Co.,
6.119%, 12/15/95 (VR)................ 7,002,915
5,000 FCC National Bank of Wilmington (DE),
5.60%, 11/8/95 (VR).................. 4,999,034
20,000 First Bank of Sioux Falls,
South Dakota,
5.825%, 2/5/96 (VR).................. 19,995,783
5,000 General Electric Captital Corp.,
6.07%, 11/21/95 (VR)................. 4,999,778
General Motors Acceptance Corp.:
4,500 5.95%, 2/23/96....................... 4,468,401
5,000 6.40%, 3/1/96 (VR)................... 4,999,646
3,000 Hanson Overseas,
5.50%, 1/15/96....................... 2,980,069
8,000 Lehman Brothers Holdings Inc.,
7.68%, 2/12/96....................... 8,025,628
8,000 Merrill Lynch & Co., Inc.,
5.997%, 2/20/96 (VR)................. 8,000,378
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <S> <C>
CORPORATE NOTES -- CONTINUED
$ 5,000 Morgan (J.P.) & Co., Inc.,
6.20%, 5/13/96....................... $ 5,000,000
20,000 Morgan Guaranty Trust Co. of N.Y.,
6.10%, 8/21/96....................... 20,000,000
12,456 Student Loan Marketing Association,
6.08%, 7/1/96........................ 12,505,859
TOTAL CORPORATE NOTES
(COST $129,714,876).................. 129,714,876
MUTUAL FUND SHARES -- .6%
5,910 Lehman Prime Value Money Market Fund
Series A (at net asset value)
(COST $5,910,419).................... 5,910,419
</TABLE>

<TABLE>
<C> <S> <C> <C>
TAXABLE MUNICIPAL -- .7%
6,250 Metrocrest Hospital Authority,
5.791%, 11/1/95
(COST $6,188,669)................... 6,188,669
TOTAL INVESTMENTS
(COST $977,521,033)......... 100.2% 977,521,033
OTHER ASSETS &
LIABILITIES -- NET.......... (0.2) (1,770,806)
NET ASSETS.................. 100.0% $975,750,227
</TABLE>

LOC -- Letter of Credit
*These securities held by the Fund at August 31, 1995 are traded on a discount
basis; the interest rate shown is the discount rate to be earned at the time of
purchase by the Fund.
VR -- Variable Rate Securities -- Interest rates presented for these securities
are those in effect at August 31, 1995. These securities represent 6% of
total investments at August 31, 1995.
See accompanying notes to financial statements.
7

<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1995

<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at value (amortized cost $977,521,033)............................................................ $977,521,033
Cash.......................................................................................................... 554,675
Interest and dividends receivable............................................................................. 1,410,806
Receivable for Fund shares sold............................................................................... 783,013
Prepaid expenses.............................................................................................. 50,994
Total assets............................................................................................ 980,320,521
LIABILITIES:
Dividend payable.............................................................................................. 2,602,630
Payable for Fund shares repurchased........................................................................... 1,249,408
Accrued expenses.............................................................................................. 458,825
Accrued advisory fee.......................................................................................... 259,431
Total liabilities....................................................................................... 4,570,294
NET ASSETS....................................................................................................... $975,750,227
NET ASSETS CONSIST OF:
Paid-in capital............................................................................................... $976,271,292
Accumulated net realized loss on investment transactions...................................................... (521,065)
Net assets.............................................................................................. $975,750,227
CALCULATION OF NET ASSET VALUE PER SHARE:
Class A Shares ($685,155,403 685,140,995 shares of beneficial interest outstanding).............................. $1.00
Class B Shares ($7,926,965 7,926,747 shares of beneficial interest outstanding).................................. $1.00
Class Y Shares ($282,667,859 283,199,275 shares of beneficial interest outstanding).............................. $1.00
</TABLE>

See accompanying notes to financial statements.

<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1995

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest....................................................................................... $21,475,028
EXPENSES:
Advisory fee................................................................................... $1,831,518
Distribution fee -- Class A shares............................................................. 280,287
Distribution fee -- Class B shares............................................................. 9,349
Shareholder services fee -- Class B shares..................................................... 3,116
Transfer agent fee............................................................................. 343,812
Registration and filing fees................................................................... 297,098
Professional fees.............................................................................. 67,293
Reports and notices to shareholders............................................................ 52,065
Trustees' fees and expenses.................................................................... 34,750
Custodian fee.................................................................................. 32,347
Insurance...................................................................................... 14,712
Other.......................................................................................... 12,825
2,979,172
Less: Fee waivers and expense reimbursements................................................... (750,085)
Net expenses............................................................................. 2,229,087
Net investment income............................................................................. 19,245,941
Net realized gain on investments.................................................................. 19,987
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................................. $19,265,928
</TABLE>

See accompanying notes to financial statements.
9
<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
TEN MONTHS
YEAR ENDED ENDED
AUGUST 31, AUGUST 31,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................................................................ $ 19,245,941 $ 8,623,202
Net realized gain (loss) on investments.............................................. 19,987 (541,052)
Net increase in net assets resulting from operations.............................. 19,265,928 8,082,150
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A Shares....................................................................... (4,909,735) --
Class B Shares....................................................................... (56,561) --
Class Y Shares....................................................................... (14,279,645) (8,623,202)
Total distributions to shareholders............................................ (19,245,941) (8,623,202)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold............................................................ 1,749,914,977 1,123,908,685
Proceeds from shares issued from acquisition of
First Union Money Market Portfolio................................................ 642,287,528 --
Proceeds from reinvestment of distributions.......................................... 14,341,469 8,126,641
Payments for shares redeemed......................................................... (1,703,929,225) (1,157,797,109)
Net increase (decrease) resulting from Fund share transactions.................... 702,614,749 (25,761,783)
Net increase (decrease) in net assets............................................. 702,634,736 (26,302,835)
Net assets:
Beginning of period.................................................................. 273,115,491 299,418,326
End of period........................................................................ $ 975,750,227 $ 273,115,491
</TABLE>

See accompanying notes to financial statements.

10
<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) FINANCIAL HIGHLIGHTS
CLASS Y SHARES

<TABLE>
<CAPTION>
TEN MONTHS
YEAR ENDED ENDED
AUGUST 31, AUGUST 31, YEAR ENDED OCTOBER 31,
1995 1994# 1993 1992 1991
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period................... $1.00 $1.00 $1.00 $1.00 $1.00
Net investment income.................................. .05 .03 .03 .04 .07
Less distributions to shareholders from net investment
income.............................................. (.05) (.03) (.03) (.04) (.07)
Net asset value, end of period......................... $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN+.......................................... 5.4% 2.9% 3.2% 4.2% 6.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).............. $ 283,199 $273,115 $299,418 $357,917 $437,933
Ratios to average net assets:
Expenses**.......................................... .53% .32%* .39% .36% .30%
Net investment income**............................. 5.26% 3.46%* 3.19% 4.18% 6.53%
</TABLE>

# The Fund changed its fiscal year end from October 31 to August 31.
+ Total return is calculated for the periods indicated and is not annualized.
* Annualized
** Net of expense waivers and reimbursements. If the Fund had borne all expenses
that were reimbursed or waived by the adviser, the annualized ratios of
expenses and net investment income to average net assets would have been the
following:
<TABLE>
<CAPTION>
TEN MONTHS
YEAR ENDED ENDED
AUGUST 31, AUGUST 31, YEAR ENDED OCTOBER 31,
1995 1994# 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Expenses............................................................. .73% .71% .71% .72% .70%
Net investment income................................................ 5.06% 3.07% 2.87% 3.82% 6.13%
</TABLE>

See accompanying notes to financial statements.
11
<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of cash) FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
JANUARY 4, JANUARY 26,
1995* 1995*
THROUGH THROUGH
AUGUST 31, AUGUST 31,
1995 1995
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period........................................................... $1.00 $1.00
Income from investment operations:
Net investment income.......................................................................... .03 .03
Less distributions to shareholders from net investment income.................................. (.03) (.03)
Net asset value, end of period................................................................. $1.00 $1.00
TOTAL RETURN+.................................................................................. 3.5% 2.8%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted)...................................................... $685,155 $7,927
Ratios to average net assets:
Expenses**.................................................................................. .81%++ 1.51%++
Net investment income**..................................................................... 5.26%++ 4.54%++
</TABLE>

* Commencement of class operations.
+ Total return is calculated on net asset value. Contingent deferred sales
charge is not reflected. Total return is calculated for the periods indicated
and is not annualized.
++ Annualized.
** Net of expense waivers and reimbursements. If the Fund had borne all expenses
that were reimbursed or waived by the adviser, the annualized ratios of
expenses and net investment income to average net assets would have been the
following:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
JANUARY 4, JANUARY 26,
1995* 1995*
THROUGH THROUGH
AUGUST 31, AUGUST 31,
1995 1995
<S> <C> <C>
Expenses....................................................................................... 1.02% 2.39%
Net investment income.......................................................................... 5.05% 3.66%
</TABLE>

See accompanying notes to financial statements.
12

<PAGE>

EVERGREEN TAX EXEMPT MONEY MARKET FUND

(Photo of eagle)

A REPORT FROM YOUR PORTFOLIO MANAGER
BY STEVEN C. SHACHAT

We are pleased to bring you
our 1995 Annual Report. As you know, effective July 7,
1995, First Union Money Tax Free Market Portfolio was (photo of
combined into Evergreen Tax Exempt Money Market Fund. As Steven Shachat)
of August 31, the Fund's
assets totalled $976,413,830.
The Federal Reserve Board relaxed its policy of monetary restraint on July 6,
when it lowered the Fed Funds rate. The reduction ended the upward pressure on
short-term rates that had prevailed since the beginning of 1994. The Fed's
restraint was based on concern about a resurgence of inflation, given the strong
economic news then prevailing. However, in July, reports indicated a significant
weakening trend in the economy. The July reduction in the Fed Funds rate
signaled that economic growth issues outweighed, for a time, Federal Reserve
fears of resurgence of inflation. The Fed's easing was limited to a lowering of
the Fed Funds rate by 25 basis points (.25%); the discount rate remained at
5.25% -- the level it has been for most of 1995.
While market fundamentals do affect the short-term municipal market, the
overriding influence continues to be market technicals (i.e. supply/ demand).
The portfolio holdings that provide the highest degree of liquidity are 1-day
and 7-day demand notes. Since the rates on these notes, which the Fund held
during the reporting period, are adjusted on a daily or weekly basis, the Fund's
fluctuating yields reflected these rapid adjustments over time. For example, the
entire tax-exempt note market exhibited significant strength during late June
and early July as demand exceeded supply, and short-term yields on securities
dropped accordingly. More recently, market conditions have begun to stabilize
and yields have returned to more attractive levels. However, over the coming
months, we believe supply and demand conditions could still result in market
weakness, and thereby provide additional buying opportunities. This does not
rule out the possibility of another Fed easing. Nevertheless, we currently
expect the market's technical factors to outweigh the effect of any further
monetary action.
Responding to this changing interest rate environment and in anticipation of
a flat yield curve in the one-year market, we decreased the Fund's average
maturity to 21 days. This strategy has enabled the Fund to benefit from
technical aberrations in the market while providing the portfolio with a greater
cushion of liquidity.
As always, whatever the economic environment, we remain committed to our
efforts of preserving the integrity of your investment and providing you with
top-quality investment results.
* THE FUND'S YIELD MAY VARY, AND THERE CAN BE NO GUARANTEE THAT THE FUND WILL
ACHIEVE ITS OBJECTIVE OR ANY PARTICULAR TAX EXEMPT YIELD. INCOME MAY BE SUBJECT
TO SOME STATE OR LOCAL TAXES, AND THE FEDERAL ALTERNATIVE MINIMUM TAX FOR
CERTAIN INVESTORS. AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED
BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE
TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
10/95

13
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- 97.0%
ALABAMA -- 4.9%

$ 3,700 Alabama State IDA Industrial
Development RB (Automation
Technologies Industries, Inc.),
3.95% -- VRDN (LOC: Columbus Bank &
Trust Co.)........................... $3,700,000
5,860 City of Northport Multifamily Housing
Refunding Revenue Warrants
(Northbrook I Project) 1993 Series A,
3.80% -- VRDN (LOC: Southtrust Bank
of Alabama, N.A.).................... 5,860,000
Commercial Development Authority of
the City of Birmingham RB Series
1991, 4.00% -- VRDN (LOC: Amsouth
Bank, N.A.)
1,270 Avondale Commerce Park,
Phase II Project..................... 1,270,000
720 Southside Business Center
Project.............................. 720,000
7,335 Education Building Authority of the
City of Homewood RB (Samford
University) Series 1988C,
3.75% -- VRDN (LOC: Amsouth
Bank, N.A.).......................... 7,335,000
8,700 IDA of the County of Pinal RB
(Calsonic, Inc. Project) Series 1985,
3.70% -- VRDN (LOC: Industrial Bank
of Japan, Ltd.)...................... 8,700,000
2,875 Industrial Development Board of the
City of Foley RB (Vulcan, Inc.),
3.75% -- VRDN (LOC: Amsouth Bank,
N.A.)................................ 2,875,000
3,500 Industrial Development Board of
Mobile County RB (Sherman
International Corp.) Series 1994-A,
3.90% -- VRDN (LOC: Columbus Bank &
Trust Co.)........................... 3,500,000
1,000 Industrial Development Board
of the City of Tuscaloosa RRB
(Field Container Corp.) Series 1992,
3.70% -- VRDN (LOC: American National
Bank & Trust Co. of Chicago)......... 1,000,000
9,000 Jefferson County Special Obligation
School Warrants, 3.95% -- VRDN (LOC:
Columbus Bank
& Trust Co.)......................... 9,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

ALABAMA -- CONTINUED

$ 1,100 Livingston Industrial Development
Board RB (Toin Corporation U.S.A.
Project) Series 1989, 4.00% -- VRDN
(LOC: Industrial Bank of Japan,
Ltd.)................................ $ 1,100,000
2,550 State IDA (Alabama) Industrial
Development RB (Air-Dro Cylinders,
Inc.), 4.19% -- VRDN (LOC: Southtrust
Bank
of Alabama, N.A.).................... 2,550,000
47,610,000
ARKANSAS -- .4%
4,055 City of Magnolia Industrial
Development RB (American Fuel Cell
and Coated Fabrics Co. Project)
Series 1989, 3.95% -- VRDN (LOC:
Credit Commercial
de France)........................... 4,055,000
ARIZONA -- 5.1%
900 Chandler County IDA Industrial
Development RB (Parsons Municipal
Service, Inc.) Series 1983,
3.95% -- VRDN (LOC: National
Westminster Bank).................... 900,000
2,500 County of Coconino Pollution Control
RB (Arizona Public Service -- Navajo
Project) Series A, 3.70% -- VRDN
(LOC: Bank of America, Arizona)...... 2,500,000
200 County of Maricopa IDA Industrial
Development RB (McClane Co.) Series
1984, 4.05% -- VRDN (LOC: Barclay's
Bank)................................ 200,000
22,700 Maricopa County Pollution Control RRB
(El Paso Electric Co. Palo Verde
Project) 1984 Series E, 3.85% -- VRDN
(LOC: Credit Suisse)................. 22,700,000
23,600 Maricopa County Pollution Control RB
(El Paso Electric Co. Palo Verde
Project) 1994 Series A, 3.95% -- VRDN
(LOC: Citibank, N.A.)................ 23,600,000
49,900,000
</TABLE>
14

<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- (CONTINUED)
(photo of eagle) AUGUST 31, 1995

PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
CALIFORNIA -- 14.8%

$ 1,400 City of Barstow Multifamily Housing
RB (Mercury Savings & Loan
Association/Rimrock Village
Apartments Project) 1988 Series A,
4.10% -- VRDN (LOC: Mercury Savings &
Loan, Collateralized: U.S. Treasury
Bills)............................... $1,400,000
4,500 City of Corona Multifamily Housing RB
(Household Bank Project) 1985 Series
B, 4.175% -- VRDN (LOC: Household
Bank -- Guaranteed by Household
Finance Corp.)....................... 4,500,000
3,900 City of Fresno Multifamily Housing RB
(Housing Heritage Project) Series
1988A, 3.925% -- VRDN (LOC: Western
Federal Savings & Loan Association,
Collateralized: U.S. Treasury
Bills)............................... 3,900,000
1,500 City of Hemet Multifamily Housing RB
(Mercury Savings & Loan
Association/Sunwest Resort Village
Project) 1986 Series B, 3.85% -- VRDN
(LOC: Mercury Savings & Loan,
Collateralized: U.S.
Treasury Bills)...................... 1,500,000
8,525 Community Development Commission of
the City of Oceanside Multifamily
Housing RB (Parcwood Apartment
Project) Series 1985A, 4.075% -- VRDN
(LOC: Western Federal Savings & Loan
Association, Collateralized: U.S.
Treasury Bills)...................... 8,525,000
46,715 County of Orange Irvine Coast
Assessment Dist, No. 88-1 Limited
Obligation Improvement Bonds,
3.90% -- VRDN (LOC: Industrial Bank
of Japan, Ltd., Fuji Bank, Ltd., &
Mitsubishi Bank, Ltd., 1/3 each)..... 46,715,000
15,375 County of San Bernadino COP (West
Valley Detention Center),
3.80% -- VRDN
(LIQ: Merrill Lynch Capital Services,
Inc.)**.............................. 15,375,000
</TABLE>

PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

CALIFORNIA -- CONTINUED
$10,800 County of San Bernadino Multifamily
Loan RB (Mercury Savings & Loan
Association/Pooled Projects) 1985
Series A, 4.00% -- VRDN (LOC: Mercury
Savings & Loan, Collateralized: U.S.
Treasury Bills)...................... $10,800,000
9,400 Housing Authority of the County of
Riverside Housing RB (Mercury Savings
& Loan/McKinley Hills Apartments
Project) 1985 Series R, 4.20% -- VRDN
(LOC: Mercury Savings & Loan,
Collateralized: U.S. Treasury
Bills)............................... 9,400,000
4,500 Housing Authority of the City of San
Diego Multifamily Housing RB (Oro
Vista Apartments) Series 1987A,
4.10% -- VRDN
(LOC: Mercury Savings & Loan,
Collateralized: U.S. Treasury
Bills)............................... 4,500,000
5,000 Housing Authority of the City of
Santa Ana Multifamily Housing RB
(Villa Verde Apartments) Series
1985B, 4.05% -- VRDN
(LOC: Mercury Savings & Loan,
Collateralized: U.S. Treasury
Bills)............................... 5,000,000
2,700 IDA of the City of Simi Valley
Industrial Development RB (Wambold
Furniture Project) Series 1984,
4.35% -- VRDN (LOC: Wells Fargo Bank,
N.A.)................................ 2,700,000
10,000 Irvine Assessment District 85-7-1
Improvement Bonds-TECP, 4.05%,
9/11/95 (LOC: Dai-Ichi Kangyo Bank,
Ltd./Mitsubishi Bank, Ltd.).......... 10,000,000
4,400 Irvine Ranch Water District
Consolidated RB Series 1985B,
3.60% -- VRDN
(LOC: Sumitomo Bank, Ltd.)........... 4,400,000
4,980 Irvine Ranch Water District
Constituting the Consolidated Several
GO of Improvement District Nos. 186,
188, 140 and 240 Series 1989,
3.60% -- VRDN (LOC: Industrial Bank
of Japan, Ltd.)...................... 4,980,000
</TABLE>
15
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
CALIFORNIA -- CONTINUED

$ 2,100 Irvine Ranch Water District
Constituting the Consolidated Several
GO of Improvement District Nos. 103,
105, 109, 121, 140, 161, 3(203), 221,
250, 261, and 290 Series 1993A,
3.60% -- VRDN (LOC: Bank of
America)............................. $ 2,100,000
8,500 Lancaster Redevelopment Agency
Multifamily Housing RRB (Far West
Savings & Loan Association/20th
Street Apartments Project) 1985
Series R, 4.10% -- VRDN (LOC: Far
West Savings & Loan Association,
Collateralized: U.S. Treasury
Bills)............................... 8,500,000
144,295,000
COLORADO -- 1.3%
2,000 Adams County IDA Industrial
Development RB (Yellow Freight
Systems, Inc.), 3.90% -- VRDN (LOC:
Union Bank of
Switzerland)......................... 2,000,000
2,500 Arapahoe County Multifamily Housing
RRB (Stratford Station Project)
Series 1994,
4.00% -- VRDN (LOC: Heller
Financial, Inc., Indirect Subsidiary
of Fuji Bank, Ltd.).................. 2,500,000
2,680 Arapahoe County Parkview Metropolitan
District GO RB Series 1993,
3.75% -- VRDN
(LOC: Central Bank/Bank Western,
N.A.)................................ 2,680,000
580 Boulder County Development RB (The
Geological Society of America, Inc.)
Series 1992-ARB,
5.25%, 12/1/95
(LOC: Banc One Boulder).............. 580,000
Colorado Springs Utility RB, Series
A, Prerefunded @ 100,
2,000 9.375%, 11/15/95..................... 2,019,821
3,000 9.50%, 11/15/95...................... 3,034,868
12,814,689
DELAWARE -- .5%
3,000 Delaware State Economic Development
Authority, Industrial Development RB
(Arlon, Inc.) Series 1989,
4.10% -- VRDN
(LOC: Bank of America, Illinois)..... 3,000,000
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

DELAWARE -- CONTINUED
$ 2,480 New Castle IDA Industrial Development
RB (Toys R Us), 3.80% -- VRDN (LOC:
Bankers Trust Co.)................... $ 2,480,000
5,480,000
DISTRICT OF COLUMBIA -- 8.4%
5,120 District of Columbia GO RB (Putable
Floating Option Tax-Exempt Receipts,
Series PA-64) Series 1993C,
3.95% -- VRDN (LIQ: Merrill Lynch
Capital
Services, Inc.)**.................... 5,120,000
15,200 District of Columbia GO General Fund
Recovery Bonds Series 1991B-1,
4.20% -- VRDN (LOC: Union Bank of
Switzerland)......................... 15,200,000
4,400 District of Columbia GO General Fund
Recovery Bonds Series 1991B-2,
4.20% -- VRDN (LOC: Westdeutsche
Landesbank).......................... 4,400,000
3,900 District of Columbia GO General Fund
Recovery Bonds Series 1991B-3,
4.20% -- VRDN
(LOC: Landesbank Hessen)............. 3,900,000
District of Columbia GO Variable RFB,
3.70% -- VRDN (LOC: National
Westminster Bank)
6,800 Series 1992A-1....................... 6,800,000
7,100 Series 1992A-6....................... 7,100,000
District of Columbia GO Variable RFB,
3.70% -- VRDN (LOC: Toronto Dominion
Bank)
9,000 Series 1992A-3....................... 9,000,000
10,400 Series 1992A-4....................... 10,400,000
District of Columbia TRANS
10,000 Series A-3, 6.25%, 9/30/95........... 10,010,738
10,000 Series A-5, 6.25%, 9/30/95........... 10,010,349
81,941,087
FLORIDA -- 1.5%
2,300 Dade County IDA Industrial
Development RB (Dolphin Stadium)
Series 1985C, 3.75% -- VRDN (LOC:
Citibank, N.A. & Marine Midland Bank,
N.A.)................................ 2,300,000
4,500 Florida Housing Finance Agency
Multifamily Housing RB (Wood Forest
II Project) 1985 Series BBB, 5.00%,
12/1/95 (Surety Bond issued by
Continental Casual Co.).............. 4,494,500
</TABLE>
16

<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
FLORIDA -- CONTINUED

$ 2,735 Florida Housing Finance Agency
Residential Mortgage RB 1986 Series
2-ARB, 4.25%, 12/15/95 (FGIC)........ $ 2,735,000
1,750 Jacksonville Electric Authority RB
(St. Johns River Power) Series 6,
Prerefunded @ $102, 9.375%,
10/1/95.............................. 1,791,815
1,995 Jacksonville Electric Authority RB
(St. Johns River Power) Series 7,
Prerefunded @ $102, 8.875%,
10/1/95.............................. 2,041,875
1,070 Palm Beach County Housing Project RB
(Meridian Housing Project) Series
1985, 4.1875% -- VRDN (LOC: Bank of
California, N.A.).................... 1,070,000
14,433,190
GEORGIA -- 1.3%
1,000 Albany Dougherty County Hospital RB
Series 1984A, 4.05% -- VRDN
(Guaranteed by Merck & Co., Inc.).... 1,000,000
2,000 Athens Clark County IDA Industrial
Development RB (Nakanishi Management
Corp.), 4.05% -- VRDN (LOC: Sumitomo
Bank, Ltd.).......................... 2,000,000
435 Development Authority of Columbus
Industrial Development RRB (R.P. Real
Estate, Inc.) Series 1990A,
4.10% -- VRDN (LOC: Columbus Bank &
Trust Co.)........................... 435,000
2,000 Development Authority of Polk County
RB (Kimoto Tech, Inc.) Series 1985,
4.20% -- VRDN (LOC: Industrial Bank
of Japan, Ltd.)...................... 2,000,000
2,200 Housing Authority of Columbus
Multifamily Housing RRB (Quail Ridge
Project) Series 1988, 3.95% -- VRDN
(LOC: Columbus Bank & Trust Co.)..... 2,200,000
2,455 Housing Authority of Fulton County
Multifamily Housing RB (Provence
North Apartments) Series 1993,
3.80% -- VRDN (LOC: Bank South,
N.A.)................................ 2,455,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

GEORGIA -- CONTINUED
$ 1,280 Macon-Bibb County Urban Development
Authority RRB (Macon Hotel Investors
Project) Series 1995, 3.65% -- VRDN
(LOC: National Bank of Detroit)...... $ 1,280,000
1,000 Private Colleges & University
Facility RB (Emory University
Project) Series B, Prerefunded @
$103, 8.15%, 10/1/95................. 1,033,214
12,403,214
ILLINOIS -- 8.4%
15,660 Central Lake County Joint Action
Water Agency (Municipal Securities
Trust Receipts 1995 SG-11) Water RRB
Series 1993, 3.75% -- VRDN (LIQ:
Societe Generale)**.................. 15,660,000
4,200 City of Chicago Industrial
Development RB (Federal Marine
Terminal), 3.90% -- VRDN (LOC: Royal
Bank of Canada)...................... 4,200,000
6,680 City of Chicago (Municipal Securities
Trust Receipts 1995 SGA-8) GO Bonds
Series 1993B, 3.80% -- VRDN (LIQ:
Societe Generale)**.................. 6,680,000
1,500 City of Chicago O'Hare International
Airport Special Facility RB (American
Airlines, Inc.) Series 1983C,
3.50% -- VRDN (LOC: Sanwa Bank,
Ltd.)................................ 1,500,000
2,640 City of Jacksonville Industrial
Project RB (AGI, Inc.) Series 1995,
3.85% -- VRDN (LOC: Bank of America,
Illinois)............................ 2,640,000
2,750 City of Oakbrook Terrace Multifamily
Housing Mortgage RB (Oakbrook Terrace
Atrium), 3.90% -- VRDN (LOC: First of
America, Illinois)................... 2,750,000
15,000 City of Oakbrook Terrace Multifamily
Housing Mortgage RB (Renaissance
Project) 1985 Series A, Subseries
III-ARB, 4.75%, 4/1/96 (Investment
Agreement: Bayerische Landesbank,
Girozentrale)........................ 15,000,000
</TABLE>
17
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
ILLINOIS -- CONTINUED

$ 1,495 Illinois Development Finance
Authority Industrial Development
Revenue and RRB, (Saint Xavier
University) Series 1992, 3.70% --
VRDN (LOC: American National Bank &
Trust Co. of Chicago)................ $ 1,495,000
1,950 Illinois Development Finance
Authority Multifamily Housing RRB
(Cobbler Square Project) Series 1991,
3.80% -- VRDN
(LOC: Sumitomo Bank, Ltd.)........... 1,950,000
3,300 Illinois Development Finance
Authority Industrial Development RB
(Randolph Pickle) Series 1992,
3.85% -- VRDN (LOC: American National
Bank & Trust Co. of Chicago)......... 3,300,000
1,000 Illinois Development Finance
Authority Industrial Development RB
(Camcraft, Inc.) Series 1993,
3.85% -- VRDN (LOC: American National
Bank & Trust Co. of Chicago)......... 1,000,000
3,250 Illinois Development Finance
Authority Industrial Development RB
(Icon Metalcraft, Inc.) Series 1995,
4.00% -- VRDN (LOC: American National
Bank & Trust Co. of Chicago)......... 3,250,000
3,500 Illinois Development Finance
Authority, Economic Development RB
(MTI Corp.) 4.175% -- VRDN (LOC:
Industrial Bank of Japan, Ltd.)...... 3,500,000
6,800 Illinois Development Finance
Authority RB (General Accident
Insurance Co.)-ARB, 4.60%, 9/1/95
(Guaranteed by General Accident
Insurance Co. of America)............ 6,800,000
6,800 Illinois Development Finance
Authority RB (General Accident
Insurance Co.)-ARB, 4.10%, 3/1/96
(Guaranteed by General Accident
Insurance Co. of America) -- WI...... 6,800,000
3,910 Illinois Educational Facilities
Authority RB (Cultural Pooled
Project) Series 1985, 3.45% -- VRDN
(LOC: Commonwealth Bank of
Australia)........................... 3,910,000
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

ILLINOIS -- CONTINUED
$ 2,000 Village of Skokie Economic
Development RB (Skokie Fashion Square
Associates Project) Series 1984,
4.20% -- VRDN
(LOC: Bankers Trust Co.)............. $ 2,000,000
82,435,000
INDIANA -- 4.5%
2,750 City of Hammond Economic Development
RB of 1994 (Lear Seating Corp.),
4.20% -- VRDN (LOC: Chemical Bank)... 2,750,000
10,000 Indiana Bond Bank Advance Funding
Program Notes Series 1995 A-2, 5.75%,
1/10/96.............................. 10,024,023
13,500 Indiana Bond Bank Advance Funding
Program Notes Series 1995 A-3,
3.995% -- VRDN (LOC: Bank One,
Indianapolis, N.A.).................. 13,500,000
2,700 Indiana Health Facilities Authority
RB (St. Anthony Medical Center
Project), 3.60% -- VRDN
(LOC: Sanwa Bank, Ltd.).............. 2,700,000
3,500 Mishawaka Economic Development
Authority RB (Elco Industries, Inc.),
4.00% -- VRDN (LOC: National Bank of
Detroit)............................. 3,500,000
10,000 Rockport Industrial Pollution Control
RB (Michigan Power Co.) Series 1995B,
3.60% -- VRDN (SPA: The Bank of New
York)................................ 10,000,000
2,000 South Bend Industrial Development
Board Multifamily RB (Maple Lane
Association) Series 1987, 4.05% --
VRDN (LOC: Society Bank of
Cleveland)........................... 2,000,000
44,474,023
KANSAS -- 1.6%
8,500 City of Lenexa Multifamily Housing
RRB (Charter House Apartments) Series
1988-ARB, 4.65%, 10/1/95 (LOC: Home
Savings Association of Kansas City,
Collateralized: Fed Home Loan
Bank)*............................... 8,500,000
City of Salina RB (Salina Central
Mall L.P.) Series 1984, 4.075% --
VRDN, (LOC: Boatmen's Bancshares,
Inc.)
1,105 Dillard's Project.................... 1,105,000
1,200 Penney's Project..................... 1,200,000
</TABLE>
18

<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
KANSAS -- CONTINUED

$ 4,800 Osage City Industrial RB (Marley
Continental Homes of Kansas) Series
1984, 4.20% -- VRDN (LOC: Commerce
Bank of Kansas City)................. $ 4,800,000
15,605,000
KENTUCKY -- 1.0%
10,300 County of Ohio Pollution Control RB
(Big Rivers Electric Corp.) Series
1985, 4.00% -- VRDN (LOC: Chemical
Bank)................................ 10,300,000
LOUISIANA -- 1.8%
1,990 Industrial Development Board of the
Parish of Calcasieu, Inc. Industrial
Development RRB (Weingarten Realty
Investors) Series 1995, 3.80% -- VRDN
(LOC: Texas Commerce Bank, N.A.)..... 1,990,000
3,735 Lafayette Parish IDA Industrial
Development RB (Westwood Village),
3.80% -- VRDN (LOC: Texas Commerce
Bank, N.A.).......................... 3,735,000
800 Lake Charles Harbor & Terminal
District Pollution Control RB (Conco
Inc.) Series 1987, 3.70% -- VRDN
(Guaranteed by E.I. du Pont de
Nemours & Co.)....................... 800,000
10,600 Louisiana Recovery District Sales Tax
Bonds Series 1988, 3.50% -- VRDN
(SPA: Swiss Bank).................... 10,600,000
17,125,000
MASSACHUSETTS -- 1.8%
460 City of Lowell Industrial RB (Oak
Realty Trust) Series 1985,
4.1875% -- VRDN (LOC: First
National Bank of Boston)............. 460,000
15,000 Massachusetts Bay Transportation
Authority 1995 Series A Notes, 5.50%,
3/1/96............................... 15,064,296
1,000 Massachusetts Industrial Financial
Agency Industrial RB (Leavy Realty &
Jen-Coat, Inc.-Westfield) Series
1994, 4.1875% -- VRDN (LOC: Bank of
Boston).............................. 1,000,000
</TABLE>

PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
MASSACHUSETTS -- CONTINUED
$ 700 Massachusetts Industrial Financial
Agency Industrial RB (Portland
Causeway Realty Project) Series 1988,
4.1875% -- VRDN (LOC: Citibank,
N.A.)................................ $ 700,000
17,224,296
MARYLAND -- 1.3%
1,300 Mayor & City Council of Baltimore
Economic Development RRB (Field
Container Corp.) Series 1992,
3.70% -- VRDN (LOC: American National
Bank & Trust Co. of Chicago)......... 1,300,000
4,800 Northeast Maryland Waste Disposal
Authority Resource Recovery RRB
(Southwest Resource Recovery
Facility) Series 1993-ARB, 3.75%,
1/1/96 (LOC: Citibank, N.A.)......... 4,800,000
6,490 State of Maryland Single Family
Program Bonds Department of Housing &
Community Development 1987 Fourth
Series-ARB, 4.35%, 10/1/95 (TOP:
First National Bank of Chicago)...... 6,490,000
12,590,000
MICHIGAN -- .6%
2,909 Economic Development Corp. of the
City of Battle Creek RRB (Michigan
Carton & Paperboard Co.) Series 1992,
3.70% -- VRDN (LOC: American National
Bank & Trust Co. of Chicago)......... 2,909,000
800 Economic Development Corp. of the
Township of Meridian Economic RB
(Hannah Technology & Research Center)
Series 1984, 3.95% -- VRDN (LOC:
Barclay's Bank)...................... 800,000
2,000 Economic Development Corp. of the
Township of Van Buren Economic RB
(Daikin Clutch USA, Inc.),
4.20% -- VRDN (LOC: Sanwa Bank of
Chicago)............................. 2,000,000
5,709,000
MINNESOTA -- .3%
3,200 Eagle Tax-Exempt Trust Class A COP
(Minnesota Housing Finance Agency)
Series 94C2302, 3.72% -- VRDN (LOC:
Citibank, N.A.)**.................... 3,200,000
</TABLE>
19
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>

PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
MISSOURI -- 2.1%

$ 2,000 IDA of the County of St. Louis
Industrial Development RB (Schnuck
Markets, Inc. Kirkwood Project)
Series 1985, 4.20% -- VRDN (LOC:
Bankers Trust Co.)................... $ 2,000,000
IDA of Kansas City Multifamily
Housing RRB Series 1988A-ARB, 4.65%,
10/1/95 (LOC: Home Savings
Association of Kansas City, F.A.,
Collateralized: Federal Home Loan
Bank)
3,890 President Gardens Apartments
Project.............................. 3,890,000
3,000 Twin Oaks I Apartments Project....... 3,000,000
3,000 Twin Oaks II Apartments Project...... 3,000,000
4,500 Missouri Development Finance Board
Industrial Development RB (Cook
Composites & Polymers Co.) Series
1994, 3.90% -- VRDN (LOC: Societe
Generale)............................ 4,500,000
3,900 Missouri State Environmental
Improvement & Energy Resources
Authority Pollution Control RB
(Noranda Aluminum, Inc.) Series 1982,
3.60% -- VRDN
(LOC: Sanwa Bank, Ltd.).............. 3,900,000
20,290,000
NEW HAMPSHIRE -- .4%
3,645 New Hampshire Higher Education &
Health Facilities Authority
(Municipal Securities Trust Receipts
1995 SG-19) RRB Dartmouth College
Issues Series 1993, 3.75% -- VRDN
(LIQ: Societe Generale)**............ 3,645,000
NEW JERSEY -- .1%
1,000 State of New Jersey GO Bonds, 5.20%,
3/1/96............................... 1,002,389
NEW MEXICO -- 1.7%
12,600 City of Farmington Pollution Control
RRB (El Paso Electric Company Four
Corners Project) 1994 Series A,
3.95% -- VRDN (LOC: Citibank,
N.A.)................................ 12,600,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

NEW MEXICO -- CONTINUED
$ 3,635 New Mexico Mortgage Finance Authority
1994 Series F-ARB, 3.75%, 1/1/96
(FGIC)............................... $ 3,635,000
16,235,000
NEW YORK -- 1.8%
8,000 Eagle Tax-Exempt Trust Class A COP
(New York State Environment
Facilities Corp.) Series 943205,
3.72% -- VRDN
(LOC: Citibank, N.A.)**.............. 8,000,000
9,500 Eagle Tax-Exempt Trust Class A COP
(Niagara Mohawk Power Corp.) Series
943208, 3.72% -- VRDN (LOC: Citibank,
N.A.)**.............................. 9,500,000
17,500,000
NORTH CAROLINA -- 2.4%
7,700 Columbus County Industrial Facility &
Pollution Control Financing Authority
Solid Waste Disposal RB (Federal
Paper Board Co., Inc.) Series 1992,
3.85% -- VRDN (LOC: Dai-Ichi Kango
Bank)................................ 7,700,000
15,000 Lenoir County Industrial Facilities &
Pollution Control Financing Authority
Resource Recovery RB (Carolina Energy
L.P.) Series 1995, 3.85% -- VRDN
(LOC: Bank of Tokyo, Ltd.)........... 15,000,000
1,180 NCNB Pooled Tax-Exempt Trust (North
Carolina) COP Series 1990A,
4.375% -- VRDN (LOC: NationsBank of
North Carolina)**.................... 1,180,000
23,880,000
OHIO -- .3%
2,500 State of Ohio Industrial Development
RB (Best-Atlas, Ltd.) Series 1995,
3.80% -- VRDN (LOC: Banc One
Cleveland)........................... 2,500,000
OKLAHOMA -- .3%
2,800 Bartlesville Development Authority RB
(Heritage Village Nursing Center)
Series 1985, 4.05% -- VRDN (LOC:
Kreditbank).......................... 2,800,000
</TABLE>
20
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE

<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
OREGON -- 1.2%

$ 1,000 Metropolitan Service District Waste
Disposal RB (Ridel Oregon Compost
Co., Inc.) 1990 Series One,
4.00% -- VRDN (LOC: U.S. National
Bank of Oregon)...................... $ 1,000,000
2,300 State of Oregon Economic Development
RB (Stagg Foods, Inc.) Series 75,
4.15% -- VRDN (LOC: Bank of
America)............................. 2,300,000
State of Oregon Economic Development
RB Series CLVI, 4.20% -- VRDN (LOC:
Bank of California, N.A.)
1,960 Pacific Coast Seafoods Co............ 1,960,000
1,210 Pacific Oyster Co.................... 1,210,000
5,050 State of Oregon Health Housing
Education & Culture Facility
Authority RB (Evangelical Lutheran)
Series A, 3.80% -- VRDN (LOC: First
National Bank System)................ 5,050,000
11,520,000
PENNSYLVANIA -- 1.1%
500 Elk County IDA Industrial Development
RRB (Stackpole Corp.) Series 1989,
4.1875% -- VRDN (LOC: First National
Bank of Boston)...................... 500,000
650 Lawrence County IDA Pollution Control
RB (Calgon Carbon) 1983 Series A,
4.05% -- VRDN (LOC: The Bank of New
York)................................ 650,000
3,000 Mercer County IDA Industrial
Development RB (Penntecq, Inc.),
4.05% -- VRDN (LOC: Dai-Ichi Kangyo
Bank, Ltd.).......................... 3,000,000
1,300 Pennsylvania Economic Development
Financing Authority RB (C.F. Martin &
Co, Inc.) Series H, 4.40% -- VRDN
(LOC: Meridian Bank)**............... 1,300,000
2,050 West Cornwall Township Municipal
Authority RB (Lebanon Valley Brethren
Home) Series 1995, 4.075% -- VRDN
(LOC: Meridian Bank)................. 2,050,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

PENNSYLVANIA -- CONTINUED
$ 2,995 Westmoreland County IDA Industrial
Development RB (White Consolidated
Industries, Inc.)-ARB, 4.62%, 12/1/95
(LOC: Chemical Bank)................. $ 2,995,000
10,495,000
RHODE ISLAND -- .6%
500 Rhode Island Industrial Facilities
Corp. RB (NFA Corp.) Series 1994,
3.90% -- VRDN (LOC: First National
Bank of Boston)...................... 500,000
5,000 Rhode Island Solid Waste Management
Corp. Landfill Lease Notes Series
1995A,
4.75%, 8/1/96........................ 5,015,331
5,515,331
SOUTH CAROLINA -- 2.8%
1,270 Chester County School District GO
Bonds, 6.50%, 2/1/96 (AMBAC)......... 1,283,378
2,300 Darlington County IDA Industrial
Development RB (Hobart Corp.),
3.95% -- VRDN (LOC: Fuji Bank,
Ltd.)................................ 2,300,000
South Carolina Jobs Economic
Development Authority Economic
Development RB, 4.00% -- VRDN (LOC:
Credit Commercial de France)
1,150 (Regal Beloit Corp.), Series
1987A................................ 1,150,000
800 (Tuttle Co., Inc.), Series 1989B..... 800,000
700 (Ridge Pallets), Series 1989B........ 700,000
500 (Kent Manufacturing), Series
1988A................................ 500,000
150 (Sudan Co., Inc. & Delta
Properties), Series 1989A............ 150,000
2,700 South Carolina Jobs Economic
Development Authority Industrial
Development RB (Roller Bearing Co.)
Series 1994A, 4.07% -- VRDN (LOC:
Credit Commercial de France)......... 2,700,000
1,600 South Carolina Jobs Economic
Development Authority Economic
Development RB (Conco Medical
Products) Series 1990, 3.80% -- VRDN
(LOC: Bayerische Landesbank
Girozentale)......................... 1,600,000
</TABLE>
21
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
SOUTH CAROLINA -- CONTINUED

$ 800 South Carolina Jobs Economic
Development Authority Industrial
Development RB (Harvin Choice Meats,
Inc.) Series 1987, 4.00% -- VRDN
(LOC: Bank of
Tokyo, Ltd.)......................... $ 800,000
8,355 South Carolina Public Service
Authority (Municipal Securities Trust
Receipts 1994 SG-2) RB 1993 Refunding
Series A, 3.75% -- VRDN (LIQ: Societe
Generale)**.......................... 8,355,000
5,049 State Capital Improvement Bonds of
the State of South Carolina (Series
BTP-27 Certificates) Series V,
3.85% -- VRDN (LOC: Bankers Trust
Co.)**............................... 5,049,000
2,400 Sumter County IDA Industrial
Development RB (Bendix Corp.),
4.075% -- VRDN (LOC: Sumitomo Bank,
Ltd.)................................ 2,400,000
27,787,378
TENNESSEE -- 3.4%
1,000 Blount County Industrial Development
Board Industrial Development RB
(Advanced Crystal, Inc.) Series 1988,
4.00% -- VRDN (LOC: Industrial Bank
of Japan, Ltd.)...................... 1,000,000
5,000 City of Morristown Industrial
Development Board Industrial RB
(Camvac International, Inc.) Series
1983, 4.075% -- VRDN
(LOC: ABN Amro Bank)................. 5,000,000
3,200 Industrial Development Board of the
City of Chattanooga RRB (Radisson
Read House) Series 1995, 4.05% --
VRDN (LOC: Heller Financial, Inc.,
Indirect Subsidiary of Fuji Bank,
Ltd.)................................ 3,200,000
3,300 Industrial Development Board of the
Metropolitan Government of Nashville
& Davidson County Multifamily Housing
RRB (Hickory Terrace Apartments)
Series 1995, 3.75% -- VRDN
(LOC: National City Bank)............ 3,300,000

</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

TENNESSEE -- CONTINUED

$ 3,610 Industrial Development Board of the
Metropolitan Government of Nashville
& Davidson County Industrial
Development RRB (Perimeter Two),
4.05% -- VRDN (LOC: Lincoln National
Corp.)............................... $ 3,610,000
3,700 Industrial Development Board of
Rutherford County Industrial RRB
(Outboard Marine Corp.) Series 1987,
4.25% -- VRDN (LOC: National Bank of
Detroit)............................. 3,700,000
2,850 Industrial Development Board of the
Metropolitan Government of Nashville
& Davidson County Multifamily Housing
RRB (Nashville Apartment Properties
#2, Ltd. Project) Series 1987-ARB,
4.25%, 9/1/95 (LOC: Union Bank of
Switzerland)......................... 2,850,000
10,500 Tennessee Housing Development Agency
Homeownership Program Bonds
(Custodial Receipts Series 5I) Issue
F-ARB, 4.85%, 1/1/96
(LIQ: Citibank, N.A.)................ 10,500,000
33,160,000
TEXAS -- 7.3%
4,250 City of Dallas Industrial Development
Corp. Industrial Development RB
(Crane Plumbing), 4.05% -- VRDN (LOC:
American National Bank & Trust Co. of
Chicago)............................. 4,250,000
1,420 City of San Antonio Airport System
RRB Series 1993 -- ARB, 4.35%,
10/1/95 (LOC: Citibank, N.A.)........ 1,420,000
6,000 Eagle Tax-Exempt Trust Class A COP
(Harris County) Series 1994E,
3.72% -- VRDN
(LOC: Citibank, N.A.)**.............. 6,000,000
6,425 Galveston Housing Finance Corp.
Multifamily Housing RRB (Village by
the Sea Apartments Project) Series
1993, 3.90% -- VRDN (LOC: Sumitomo
Bank, Ltd.).......................... 6,425,000
5,000 Harris County Toll Road Unlimited Tax
and Sub Lien RB Series 1994A,
3.72% -- VRDN
(LIQ: Citibank, N.A.)................ 5,000,000
</TABLE>

22
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
TEXAS -- CONTINUED

$ 4,400 Harris County Industrial Development
RB (Yokohoma Tire Corp. Project)
Series 1986, 3.65% -- VRDN (LOC:
Industrial Bank of Japan, Ltd.)...... $ 4,400,000
11,800 Harris County Industrial Development
Corp. Solid Waste Disposal RB (Deer
Park L.P.) Series A, 3.70% -- VRDN... 11,800,000
800 Lone Star Airport Authority RB Series
B4 -- TECP 3.82%, 9/11/95 (LOC: Royal
Bank of Canada)...................... 800,000
6,050 NCNB Pooled Tax Exempt-Trust (Texas)
COP Series 1990B, 4.375% -- VRDN
(LOC: NationsBank of Texas)**........ 6,050,000
3,700 North Central Health Facilities
Development Corp. Hospital RB
(Presbyterian Medical Center) Series
1985D, 3.50% -- VRDN
(SPA: NationsBank of Texas).......... 3,700,000
2,345 Robertson County Industrial
Development RB (CR/PL Project) Series
1990, 4.05% -- VRDN (LOC: American
National Bank & Trust Co. of
Chicago)............................. 2,345,000
4,380 Tarrant County Housing Finance Corp.
Multifamily Housing RRB (Lincoln
Meadows) Series 1988-ARB, 5.00%,
12/1/95
(Surety Bond issued by Continental
Casual Corp.)........................ 4,380,000
15,000 Texas State TRANS Series A, 4.75%,
8/30/96 -- WI........................ 15,102,000
71,672,000
UTAH -- 3.9%
3,900 City of Provo Multifamily Rental
Housing RRB (Branbury Park Project)
Series 1987A, 4.05% -- VRDN (LOC:
Dai-Ichi Kangyo Bank, Ltd.).......... 3,900,000
3,000 Summit County Industrial Development
RB (Hornes' Kimball Junction L.P.)
Series 1985, 4.05% -- VRDN
(LOC: West One Trust)................ 3,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>

UTAH -- CONTINUED
Tooele County Hazardous Waste
Treatment RB (Union Pacific) Series
A -- TECP,
$16,200 4.25%, 9/12/95....................... $ 16,200,000
9,990 4.30%, 10/16/95...................... 9,990,000
5,000 Utah County Industrial Development RB
(McWane Inc. Project), 3.90% -- VRDN
(LOC: Amsouth Bank, N.A.)............ 4,999,990
38,089,990
VIRGINIA -- 1.0%
6,200 IDA of Amelia County RB (Chambers
Waste Systems of Virginia, Inc.) 1991
Series, 4.00% -- VRDN
(LOC: NationsBank)................... 6,200,000
1,000 IDA of Rockingham County Pollution
Control RB (Merck
& Co., Inc. Project) 1982 Series A,
3.80% -- VRDN........................ 1,000,000
2,500 Louisa County IDA Pollution Control
RB (Virginia Electric &
Power) -- TECP, 4.00%, 9/20/95....... 2,500,000
9,700,000
VERMONT -- .2%
2,000 Vermont IDA Industrial Development RB
(Burlington Properties),
4.05% -- VRDN
(LOC: The Bank of New York).......... 2,000,000
WASHINGTON -- 5.4%
2,620 Economic Development Corp. of Pierce
County Industrial RB (McFarland
Cascade Project) Series 1989,
3.95% -- VRDN
(LOC: Seattle-First National
Bank)................................ 2,620,000
701 Pilchuck Development Public Corp.
Industrial RB (Crystal Creek Lot #11)
Series III, 3.90% -- VRDN (LOC:
Mitsubishi Bank, Ltd.)............... 701,000
1,000 Seattle Industrial Development Corp.
Industrial RB (Northwestern
Industries, Inc.) Series 1985,
4.20% -- VRDN (LOC: Industrial Bank
of Japan, Ltd.)...................... 1,000,000
</TABLE>
23
<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF INVESTMENTS -- (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES -- CONTINUED
WASHINGTON -- CONTINUED

$15,020 State of Washington GO Bonds Series
1995 A , 3.72% -- VRDN (LIQ:
Citibank, N.A.)...................... $ 15,020,000
6,000 Washington State Housing Finance
Multifamily RB (Heatherstone
Apartments) Series 1995, 3.85% --
VRDN (LOC: U.S. Bank of
Washington).......................... 6,000,000
9,370 Washington State GO RRB (Custodial
Receipts Series B-2) Series R-94A,
3.70% -- VRDN (LIQ: Banque Francaise
du Commerce)**....................... 9,370,000
6,410 Washington Public Power Supply System
Nuclear Project No.2 RB (CR-145)
Series 1990, 3.72% -- VRDN (LOC:
Citibank, N.A.)...................... 6,410,000
8,240 Washington Public Power Supply System
(Municipal Securities Trust Receipts
1995 SG-13) Nuclear Project No. 3 RRB
Series 1993B, 3.75% -- VRDN (LIQ:
Societe Generale)**.................. 8,240,000
3,050 Yakima County Public Corp. Industrial
Development RB
(John I. Haas, Inc.) Series 1989,
3.80% -- VRDN (LOC: Bayerische
Landesbank, Girozentrale)............ 3,050,000
52,411,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<S> <C> <C>
WISCONSIN -- 1.1%
$10,000 Eagle Tax Exempt Trust Class A COP
(State of Wisconsin) Series 944904,
3.82% -- VRDN
(LOC: Citibank, N.A.)**.............. $10,000,000
1,000 Village of Pleasant Prairie
Industrial Development RB (Chicago
Lock Company) Series 1995, 3.95% --
VRDN (LOC: American National Bank &
Trust Co. of Chicago)................ 1,000,000
11,000,000
OTHER -- .4%
3,825 LaSalle National Bank BusTOPS Trust,
BusTOPS Certificates Series 1993A,
3.90% -- VRDN
(LIQ: LaSalle National Bank)**....... 3,825,613
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(COST $946,623,200).................. 946,623,200
MUTUAL FUND SHARES -- 3.8%
37,375,792 Tax Free Obligations Fund
(at net asset value)
(COST $37,375,792)................... 37,375,792
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(COST $983,998,992).... 100.8% 983,998,992
OTHER ASSETS AND
LIABILITIES -- NET..... (.8) (7,585,162)
NET ASSETS............... 100.0% $976,413,830
</TABLE>

<PAGE>

EVERGREEN TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS--(Continued)
AUGUST 31, 1995

(photo of eagle)

Summary of Abbreviations
AMBAC -- American Municipal Bond Assurance Corp.
ARB -- Adjustable Rate Bonds
COP -- Certificates of Participation
FGIC -- Financial Guaranty Insurance Co.
GO -- General Obligations
IDA -- Industrial Development Authority
LIQ -- Liquidity Provider
LOC -- Letter of Credit
RB -- Revenue Bonds
RRB -- Refunding Revenue Bonds
SPA -- Standby Purchase Agreement
TECP -- Tax Exempt Commercial Paper
TOP -- Tender Option Purchase
TRANS -- Tax Revenue Anticipation Notes
VRDN -- Variable Rate Demand Notes
WI -- When Issued
Adjustable Rate Bonds are putable back to the issuer or other parties not
affiliated with the issuer at par quarterly, semi-annually or annually depending
upon the terms of the security. Interest rates are determined and set by the
issuer on such put dates. Interest rates presented for these securities are
those in effect at August 31, 1995. These securities represent 9% of total
investments at August 31, 1995.
Variable Rate Demand Notes are payable on demand on no more than seven calendar
days notice given by the Fund to the issuer or other parties not affiliated with
the issuer. Interest rates are determined and reset by the issuer daily, weekly
or monthly depending upon the terms of the security. Interest rates presented
for these securities are those in effect at August 31, 1995. These securities
represent 75% of total investments at August 31, 1995.
Adjustable rate bonds and variable rate demand notes held in the portfolio may
be considered derivative securities. Management has determined that these
securities comply with the standards imposed by the Securities and Exchange
Commission under Rule 2a-7 which were designed to minimize both credit and
market risk.
* Represents the securities of which $6,800,000 was designated as collateral
for the purchase of a when issued security.
** Rule 144A security which are restricted in resale to qualified institutions
and are considered liquid.
See accompanying notes to financial statements.
25
<PAGE>

EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1995

<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at value (identified cost $983,998,992)......................................................... $ 983,998,992
Cash........................................................................................................ 4,003,338
Dividends and interest receivable........................................................................... 8,078,896
Receivable for investment securities sold................................................................... 8,895,000
Receivable for Fund shares sold............................................................................. 600,334
Prepaid expenses............................................................................................ 39,702
Total assets.......................................................................................... 1,005,616,262
LIABILITIES:
Payable for investment securities purchased................................................................. 25,613,171
Dividends payable........................................................................................... 1,570,809
Payable for Fund shares repurchased......................................................................... 1,376,760
Payable to Adviser.......................................................................................... 324,323
Accrued expenses............................................................................................ 317,369
Total liabilities..................................................................................... 29,202,432
NET ASSETS..................................................................................................... $ 976,413,830
NET ASSETS CONSISTS OF:
Paid-in capital............................................................................................. $ 976,663,776
Accumulated net realized loss on investment transactions.................................................... (249,946)
Net assets............................................................................................ $ 976,413,830
CALCULATION OF NET ASSET VALUE PER SHARE:
Class A Shares ($554,923,754 555,065,149 shares of beneficial interest outstanding)......................... $ 1.00
Class Y Shares ($421,490,076 421,587,830 shares of beneficial interest outstanding)......................... $ 1.00
</TABLE>

See accompanying notes to financial statements.
26

<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1995

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest....................................................................................... $18,791,392
EXPENSES:
Advisory fee................................................................................... $2,329,035
Distribution fee -- Class A Shares............................................................. 241,973
Transfer agent fee............................................................................. 224,346
Custodian fee.................................................................................. 83,608
Registration and filing fees................................................................... 82,927
Professional fees.............................................................................. 81,706
Reports and notices to shareholders............................................................ 34,118
Trustees' fees and expenses.................................................................... 24,571
Insurance...................................................................................... 15,049
Miscellaneous.................................................................................. 18,687
3,136,020
Less: Fee waivers and expense reimbursements................................................... (568,031)
Net expenses................................................................................ 2,567,989
Net investment income............................................................................. 16,223,403
Net realized loss on investments.................................................................. (374,299)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................................. $15,849,104
</TABLE>

See accompanying notes to financial statements.
27

<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION> YEAR ENDED AUGUST 31,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................................................................... $ 16,223,403 $ 10,492,103
Net realized loss on investments........................................................ (374,299) --
Net increase in net assets resulting from operations................................. 15,849,104 10,492,103
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A Shares.......................................................................... (2,645,739)
Class Y Shares.......................................................................... (13,577,664) (10,492,103)
Total distributions to shareholders.................................................. (16,223,403) (10,492,103)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold............................................................... 523,419,419 438,032,706
Proceeds from shares issued from acquisition of First Union Tax-Free Money Market
Portfolio............................................................................. 604,010,226 --
Proceeds from reinvestment of distributions............................................. 13,277,476 10,143,045
Payments for shares redeemed............................................................ (566,638,173) (447,132,393)
Net increase resulting from Fund share transactions.................................. 574,068,948 1,043,358
CAPITAL CONTRIBUTION (NOTE 5).............................................................. 300,000 --
Net increase in net assets........................................................... 573,994,649 1,043,358
NET ASSETS:
Beginning of year....................................................................... 402,419,181 401,375,823
End of year............................................................................. $ 976,413,830 $402,419,181
</TABLE>

See accompanying notes to financial statements.
28

<PAGE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
(photo of eagle) FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 5,
1995* CLASS Y SHARES
THROUGH
AUGUST 31, YEAR ENDED AUGUST 31,
1995 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income.................................. .02 .04 .02 .03 .04 .05
Less distributions to shareholders from net investment
income............................................... (.02) (.04) (.02) (.03) (.04) (.05)
Net asset value, end of period......................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN+.......................................... 2.2%+ 3.6% 2.5% 2.6% 3.7% 5.5%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted).............. $554,924 $421,490 $402,419 $401,376 $416,924 $510,160
Ratios to average net assets:
Total expenses**..................................... .78%++ .50% .34% .34% .32% .28%
Net investment income**.............................. 3.28%++ 3.53% 2.47% 2.58% 3.72% 5.23%
</TABLE>

* Commencement of class operations.
+ Total return calculated on net asset value per share for the period indicated
and is not annualized.
++ Annualized.
** Net of expense waivers and reimbursement. If the Fund had borne all expenses
that were reimbursed or waived by the investment adviser, the annualized
ratios of expenses and net investment income to average net assets would have
been the following:
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 5,
1995* CLASS Y SHARES
THROUGH
AUGUST 31, YEAR ENDED AUGUST 31,
1995 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Expenses............................................... .90% .63% .64% .63% .63% .66%
Net investment income.................................. 3.16% 3.40% 2.17% 2.29% 3.41% 4.85%
</TABLE>

See accompanying notes to financial statements.
29

<PAGE>
EVERGREEN MONEY MARKET FUND
(photo of coins)

A REPORT FROM YOUR
PORTFOLIO MANAGER
BY KELLIE ALLEN
The primary means by which the Federal Reserve attempts to
control the economy is by raising or lowering short-term rates,
i.e., the Fed Funds rate. For example, if the economy is growing
too fast or inflation is rising above an acceptable level, the (photo of
Federal Reserve can raise the Fed Funds rate and, in essence, Kellie Allen)
try to "put the brakes" on the economy.
In 1994, as the economy gained momentum, concern grew over
these very issues of a fast growing economy and rising
inflation. The Federal Reserve responded by raising short-term
rates six times, and once more in February of 1995.
Early in 1995, as signs of a slowing economy began to emerge,
investors bid down long-term interest rates. Yet, the Fed held steady,
maintaining the Fed Funds Rate at 6% until July when it modestly reduced it to
5.75% as an indication of a willingness to lower rates in order to avoid a
recession.
Today, short-term interest rates are high relative to both inflation and
long-term rates. While we do not anticipate immediate action, we do believe the
odds favor stable to lower rates in the months ahead.
Within the Fund, we are maintaining a maturity at the longer end of our
normal range in our attempt to "lock in" what we believe are attractive rates.
Thus far, we have accomplished this by investing U.S. Treasury notes, bonds,
bills, and overnight repurchase agreements which are fully collateralized by
Treasury obligations. This combination helps to give the Fund a competitive
yield advantage "locking in" longer yields on a portion of the Fund should rates
decline.

<PAGE>
EVERGREEN TREASURY MONEY MARKET FUND
(photo of coins) STATEMENT OF INVESTMENTS
AUGUST 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<C> <S> <C>
U.S. TREASURY NOTES -- 25.3%
$ 50,000 4.625%, 2/29/96.................. $ 49,626,219
40,000 5.875%, 8/31/96.................. 40,000,000
90,000 7.375%, 5/15/96.................. 90,981,266
25,000 8.5%, 11/15/95................... 25,099,982
25,000 8.875%, 2/15/96.................. 25,320,368
85,000 9.25%, 1/15/96................... 85,833,600
50,000 9.375, 4/15/96................... 51,126,805
TOTAL U.S. TREASURY NOTES
(COST $367,988,240).............. 367,988,240
*REPURCHASE AGREEMENTS -- 71.8%
70,000 Barclays Bank PLC, 5.75%,
dated 8/31/95,
due 9/1/95....................... 70,000,000
100,000 Dean Witter Reynolds, Inc.,
5.75%, dated 8/31/95, due
9/1/95........................... 100,000,000
75,170 Donaldson, Lufkin &
Jenrette Securities Corp.,
5.79%, dated 8/31/95, due
9/1/95........................... 75,170,000
25,000 Dresdner Bank AG, 5.80%, dated
8/31/95, due 9/1/95.............. 25,000,000
70,000 First Boston Corp., 5.75%, dated
8/31/95, due 9/1/95.............. 70,000,000
100,000 Fuji Securities, Inc., 5.80%,
dated 8/28/95, due 9/5/95........ 100,000,000
70,000 Goldman, Sachs & Co., 5.70%,
dated 8/31/95, due 9/1/95........ 70,000,000
100,000 HSBC Securities, Inc., 5.77%,
dated 8/31/95, due 9/1/95........ 100,000,000
70,000 Merrill Lynch, Pierce,
Fenner & Smith, Inc.,
5.70%, dated 8/31/95, due
9/1/95........................... 70,000,000
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
<C> <S> <C>

$100,000 Morgan Guaranty Trust Co.
of New York,
5.78%, dated 8/31/95,
due 9/1/95....................... $ 100,000,000
100,000 NationsBank,
5.79%, dated 8/28/95, due
9/5/95........................... 100,000,000
100,000 Nikko Securities Co.
International, Inc.,
5.82%, dated 8/28/95, due
9/5/95........................... 100,000,000
65,000 State Street Bank & Trust Co.,
5.75%, dated 8/31/95, due
9/1/95........................... 65,000,000
TOTAL REPURCHASE AGREEMENTS
(COST $1,045,170,000)............ 1,045,170,000
</TABLE>
<TABLE>
<CAPTION>
SHARES
MUTUAL FUND SHARES -- 3.0%
<S> <C> <C>
43,204,547 Fidelity U.S. Treasury Income
Portfolio (COST $43,204,547)..... 43,204,547
</TABLE>

<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS
(COST
$1,456,362,787)........ 100.1% 1,456,362,787
OTHER ASSETS AND
LIABILITIES -- NET..... (.1) (1,101,928)
NET ASSETS............... 100.0% $1,455,260,859
</TABLE>

* Repurchase agreements are fully collateralized by U.S. Treasury obligations
based on market prices at August 31, 1995.
See accompanying notes to financial statements.
31

<PAGE>
EVERGREEN TREASURY MONEY MARKET FUND
(photo of coins) STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1995

<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in repurchase agreements........................................................................ $1,045,170,000
Investments in securities................................................................................... 411,192,787
Investments at value (identified cost $1,456,362,787).................................................... 1,456,362,787
Interest receivable......................................................................................... 6,601,001
Receivable for Fund shares sold............................................................................. 515,000
Prepaid expenses............................................................................................ 5,956
Total assets.......................................................................................... 1,463,484,744
LIABILITIES:
Due to custodian bank....................................................................................... 76,618
Dividends payable........................................................................................... 5,631,895
Payable for Fund shares repurchased......................................................................... 1,900,000
Accrued expenses............................................................................................ 425,355
Accrued advisory fee........................................................................................ 190,017
Total liabilities..................................................................................... 8,223,885
NET ASSETS..................................................................................................... $1,455,260,859
NET ASSETS CONSIST OF:
Paid-in capital............................................................................................. $1,455,351,316
Accumulated net realized loss on investment transactions.................................................... (90,457)
Net assets............................................................................................ $1,455,260,859
CALCULATION OF NET ASSET VALUE PER SHARE:
Class A Shares ($1,177,879,798 1,177,953,023 shares of beneficial interest
outstanding)............................................................................................. $1.00
Class Y Shares ($277,381,061 277,398,293 shares of beneficial interest outstanding)......................... $1.00
</TABLE>

See accompanying notes to financial statements.
32

<PAGE>
EVERGREEN TREASURY MONEY MARKET FUND
(photo of coins) STATEMENT OF OPERATIONS
EIGHT MONTHS ENDED AUGUST 31, 1995

<TABLE>

<S> <C> <C>
INVESTMENT INCOME:
Interest...................................................................................... $47,674,921
EXPENSES:
Advisory fee.................................................................................. $ 2,814,251
Administrative personnel and services fees.................................................... 601,034
Distribution fee -- Class A Shares............................................................ 1,896,720
Custodian fee................................................................................. 181,166
Registration and filing fees.................................................................. 164,004
Transfer agent fee............................................................................ 62,175
Reports and notices to shareholders........................................................... 37,780
Professional fees............................................................................. 24,445
Trustees' fees and expenses................................................................... 23,721
Insurance..................................................................................... 2,843
Miscellaneous................................................................................. 12,124
5,820,263
Less: Advisory fee waiver..................................................................... (1,258,611)
Net expenses............................................................................... 4,561,652
Net investment income............................................................................ 43,113,269
Net realized loss on investments................................................................. (7,403)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................................. $43,105,866
</TABLE>

See accompanying notes to financial statements.
33
<PAGE>
EVERGREEN TREASURY MONEY MARKET FUND
(photo of coins) STATEMENT OF CHANGES IN NET ASSETS
<TABLE>

<CAPTION>
EIGHT MONTHS
ENDED YEAR ENDED
AUGUST 31, DECEMBER 31,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................................................................ $ 43,113,269 $ 28,172,647
Net realized loss on investments..................................................... (7,403) --
Net increase in net assets resulting from operations.............................. 43,105,866 28,172,647
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME:
Class A Shares....................................................................... (33,495,553) (18,913,691)
Class Y Shares....................................................................... (9,617,716) (9,258,956)
Total distributions to shareholders from net investment income.................... (43,113,269) (28,172,647)
IN EXCESS OF NET INVESTMENT INCOME:
Class A Shares....................................................................... (67,232) --
Class Y Shares....................................................................... (15,822) --
Total distributions to shareholders in excess of net
investment income.............................................................. (83,054) --
Total distributions to shareholders............................................ (43,196,323) (28,172,647)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold............................................................ 2,358,670,175 2,812,355,925
Proceeds from reinvestment of distributions.......................................... 5,178,570 4,558,410
Payments for shares redeemed......................................................... (1,826,468,286) (2,526,526,774)
Net increase resulting from Fund share transactions............................... 537,380,459 290,387,561
Net increase in net assets........................................................ 537,290,002 290,387,561
NET ASSETS:
Beginning of period.................................................................. 917,970,857 627,583,296
End of period........................................................................ $1,455,260,859 $ 917,970,857
</TABLE>

See accompanying notes to financial statements.
34

<PAGE>
EVERGREEN TREASURY MONEY MARKET FUND
(photo of coins) FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A SHARES CLASS Y SHARES
EIGHT MARCH 6, EIGHT
MONTHS 1991* MONTHS
ENDED YEAR ENDED DECEMBER THROUGH ENDED YEAR ENDED DECEMBER
AUGUST 31, 31, DECEMBER 31, AUGUST 31, 31,
1995# 1994 1993 1992 1991 1995# 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period.......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income......................... .03 .04 .03 .03 .04 .04 .04 .03 .04
Less distributions to shareholders from net
investment income........................... (.03) (.04) (.03) (.03) (.04) (.04) (.04) (.03) (.04)
Net asset value, end of period................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN+................................. 3.6% 3.8% 2.7% 3.4% 4.5% 3.8% 4.1% 3.0% 3.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period
(in millions)............................... $1,178 $755 $261 $209 $100 $277 $163 $366 $286
Ratios to average net assets:
Expenses**.................................. .63%++ .50% .48% .48% .47%++ .33%++ .20% .18% .17%
Net investment income**..................... 5.30%++ 3.91% 2.70% 3.22% 4.95%++ 5.60%++ 3.78% 3.00% 3.61%

MARCH 6,
1991*
THROUGH
DECEMBER 31,
1991
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period.......... $1.00
Income from investment operations:
Net investment income......................... .05
Less distributions to shareholders from net
investment income........................... (.05)
Net asset value, end of period................ $1.00
TOTAL RETURN+................................. 4.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period
(in millions)............................... $265
Ratios to average net assets:
Expenses**.................................. .20%++
Net investment income**..................... 5.53%++
</TABLE>

# The Fund changed its fiscal year end from December 31 to August 31.
* Commencement of operations.
+ Total return is calculated on net asset value per share for the periods
indicated and is not annualized.
++ Annualized.
** Net of expense waivers and reimbursements. If the Fund had borne all expenses
that were reimbursed or waived by the investment adviser, the annualized
ratios of expenses and net investment income to average net assets would have
been the following:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS Y SHARES
EIGHT MARCH 6, EIGHT
MONTHS 1991* MONTHS
ENDED YEAR ENDED DECEMBER THROUGH ENDED YEAR ENDED DECEMBER
AUGUST 31, 31, DECEMBER 31, AUGUST 31, 31,
1995# 1994 1993 1992 1991 1995# 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses...................................... .79% .78% .82% .82% 1.08% .49% .48% .52% .52%
Net investment income......................... 5.14% 3.63% 2.36% 2.88% 4.34% 5.44% 3.50% 2.66% 3.26%
<CAPTION>

MARCH 6,
1991*
THROUGH
DECEMBER 31,
1991
<S> <C>
Expenses...................................... .52%
Net investment income......................... 5.21%
</TABLE>

See accompanying notes to financial statements.

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS

NOTE 1 -- ORGANIZATION AND NAME CHANGES
The Evergreen Money Market Funds (the "Funds") are separate series of
open-end management companies registered under the Investment Company Act of
1940, as amended (the "Act"). The Evergreen Money Market Funds consist of
Evergreen Money Market Fund ("Money Market"), Evergreen Tax-Exempt Money Market
Fund ("Tax-Exempt") and Evergreen Treasury Money Market Fund ("Treasury"), known
collectively as the Funds. Money Market is the sole series of Evergreen Money
Market Trust, Tax-Exempt is a series of Evergreen Municipal Trust and Treasury
is a series of Evergreen Investment Trust.
Effective July 7, 1995, First Union Treasury Money Market Portfolio changed
its name to Evergreen Treasury Money Market Fund and Evergeen Money Market Trust
changed its name to Evergreen Money Market Fund.
NOTE 2 -- CHANGE IN FISCAL YEARS
On March 15, 1995, its Trustees approved a change in Treasury's fiscal year
from December 31 to August 31. These financial statements are as of and for the
eight months ended August 31, 1995. On September 21, 1994, Money Market's
Trustees approved a change in Money Market's fiscal year from October 31 to
August 31. The financial statements for Money Market and Tax-Exempt are for the
year ended August 31, 1995.
NOTE 3 -- ACQUISITION INFORMATION
Effective July 7, 1995, Money Market acquired substantially all of First
Union Money Market Portfolio's net assets, valued at $1.00 per share through a
non-taxable exchange for 642,283,253 shares of Money Market. The aggregate net
assets of Money Market immediately after the acquisition were $884,502,198.
In addition, effective July 7, 1995, Tax-Exempt acquired substantially all
of First Union Tax-Free Money Market Portfolio's net assets, valued at $1.00 per
share through a non-taxable exchange for 604,175,076 shares of Tax-Exempt. The
aggregate net assets of Tax-Exempt immediately after the acquisition were
$952,382,736.
NOTE 4 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. These policies are
in conformity with generally accepted accounting principles.
SECURITY VALUATIONS -- Portfolio securities are valued at amortized cost
which approximates market value. The amortized cost method involves valuing a
security at cost on the date of purchase and thereafter assuming a straight-line
amortization of any discount or premium to maturity.
SECURITY TRANSACTIONS -- Security transactions are accounted for on the
date purchased or sold. Net realized gains or losses are determined on the
identified cost basis.
INVESTMENT INCOME AND EXPENSES -- Interest income and expenses are accrued
daily. Premiums and discounts paid on securities are amortized or accreted into
interest income.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the Federal Reserve Bank and are designated as being held
on each Fund's behalf by its custodian under a book-entry system. Each Fund
monitors the adequacy of the collateral on a daily basis, and can require the
seller to provide additional collateral in the event the market value of the
securities pledged falls below the carrying value of the repurchase agreement,
including accrued interest. Each Fund will only enter into repurchase agreements
with banks and other financial institutions which are deemed by the
36

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS
NOTE 4 -- SIGNIFICANT ACCOUNTING POLICIES -- continued
investment adviser to be creditworthy pursuant to guidelines established by each
Funds' Trustees. Under certain circumstances, in the event of default or
bankruptcy by the counterparty to the agreement, realization of the collateral
may be subject to legal proceedings.
WHEN ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Funds record
when-issued or delayed delivery transactions on the trade date and maintain
security positions such that sufficient liquid assets will be available to make
payment for the securities purchased. Securities purchased on a when-issued or
delayed delivery basis begin earning interest on the settlement date.
DIVIDENDS TO SHAREHOLDERS -- Dividends from net investment income are
declared daily and paid monthly. Dividends from net realized capital gains on
investments, if any, will be distributed at least annually. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from the amounts available for distribution under
generally accepted accounting principles. To the extent these differences are
permanent in nature, such amounts are reclassified within the components of net
assets. As of August 31, 1995, a reclassification has been made for Treasury to
increase undistributed net investment income by $83,054 and for Tax-Exempt and
Treasury to increase (decrease) accumulated losses on investments by ($124,353)
and $83,054, respectively, with offsetting adjustments made to paid-in-capital.
INCOME TAXES -- It is the Funds' policy to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable and other net income to its
shareholders. Accordingly, no provisions for Federal income or excise taxes are
necessary. To the extent that realized capital gains can be offset by capital
loss carryforwards, it is the Fund's policy not to distribute such gains.
At August 31, 1995 the Funds had capital loss carryforwards in the
following amounts:
<TABLE>
<CAPTION>
EXPIRATION
2001 2002 2003
<S> <C> <C> <C>
Money Market..................... -- -- $521,065
Tax-Exempt....................... $175,647 -- 15,847
Treasury......................... -- $83,054 --
</TABLE>

Capital losses incurred after October 31 within the Fund's fiscal year are
deemed to arise on the first business day of the following fiscal year for tax
purposes. Tax-Exempt and Treasury have incurred and will elect to defer $58,452
and $7,403, respectively of such capital losses.
DEFERRED EXPENSES -- The costs incurred by Treasury with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering the shares, have been deferred and are being amortized
using the straight-line method not to exceed a period of five years from the
Fund's commencement of operations, March 6, 1991.
ALLOCATION OF EXPENSES -- Expenses specifically identifiable to a class of
shares are charged to that class. Expenses common to a Trust as a whole are
allocated to the funds in that Trust. Net investment income (other than class
specific expenses) and realized and unrealized gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
of each class.
NOTE 5 -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENTS -- First Union National Bank of North
Carolina ("First Union"), is entitled to an annual fee of .35 of 1% of
Treasury's average daily net assets pursuant to Treasury's investment advisory
agreement. For the eight-
37

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS
NOTE 5 -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES -- continued
month period ended August 31, 1995, First Union voluntarily waived $1,258,611 of
its advisory fee. First Union can modify or terminate this voluntary waiver at
any time.
Pursuant to an agreement with Money Market's and Tax-Exempt's investment
adviser, Evergreen Asset Management Corp. (Evergreen Asset), a wholly owned
subsidiary of First Union, Evergreen Asset is entitled to an annual fee based on
Money Market's and Tax-Exempts average daily net assets, for the year ended
August 31, 1995, in accordance with the following schedule:
First $1 billion 0.50%
Over $1 billion 0.45%
Pursuant to this agreement, Evergreen Asset also furnishes Money Market and
Tax-Exempt with administrative services. Evergreen Asset has agreed to reimburse
Money Market and Tax-Exempt to the extent that the Funds' operating expenses
(including the investment advisory fee but excluding interest, taxes, brokerage
commissions, 12b-1 distribution and shareholder services fees and extraordinary
expense) exceeds 1.00% of its average daily net assets for any fiscal year. For
the year ended August 31, 1995, the expenses of Money Market and Tax-Exempt did
not exceed this limit. For the year ended August 31, 1995, Evergreen Asset
voluntarily waived $732,723 and $558,942 of its advisory fee and reimbursed
class specific expenses amounting to $17,362 and $9,089 for Money Market and
Tax-Exempt, respectively. Evergreen Asset can modify or terminate these
voluntary waivers at any time.
Lieber & Company, an affiliate of First Union is the investment sub-adviser
to Money Market and Tax-Exempt. Lieber & Company is reimbursed by the Adviser at
no additional expense to the Funds.
During the year ended August 31, 1995, Tax-Exempt entered into stand-by
purchase agreements ("agreements") with First Union with regards to securities
issued by Orange County, California. The agreements enabled the securities to be
valued at par, which was $300,000 in excess of the securities fair market value
on the date of the issuance. The increase in the value is deemed to be a
voluntary contribution of capital to offset the loss in value. The agreements
were exercised during the year and accordingly, the securities were sold to
First Union at par.
ADMINISTRATION AGREEMENT -- Until July 7, 1995, Federated Investor Services
("FAS") provided Treasury with certain administrative personnel and services
including certain clerical and recordkeeping services. In addition, certain of
the Fund's officers and Trustees were officers or directors of FAS. FAS' fee was
based on the level of average net assets of Treasury's Trust for the period,
subject to a minimum fee. Effective July 7, 1995, Evergreen Asset, became
Treasury's Administrator and Furman Selz, Incorporated ("Furman Selz") became
the sub-administrator. Officers of Furman Selz became officers of all of the
Funds. Evergreen Asset's fee and Furman Selz' fee is based on the average daily
net assets of all the funds administered by Evergreen Asset for which First
Union or Evergreen Asset is also investment adviser. Such fee is calculated at
the following annual rates:
<TABLE>
<CAPTION>
ADMINISTRATION FEE AVERAGE DAILY NET ASSETS
<S> <C>
0.050% on the first $7 billion
0.035% on the next $3 billion
0.030% on the next $5 billion
0.020% on the next $10 billion
0.015% on the next $5 billion
0.010% in excess of $30 billion

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

</TABLE>

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS
NOTE 5 -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES -- continued
At August 31, 1995, assets for which Evergreen Asset was the administrator
for which either Evergreen Asset or First Union was investment adviser totaled
approximately $9.8 billion.
PLANS OF DISTRIBUTION -- The Funds have adopted for their Class A shares
and Class B shares (Money Market only) Distribution Plans (the "Plans") pursuant
to Rule 12b-1 under the Act. (See Note 6) Under the terms of the Plans, the
Funds may incur distribution-related and shareholder servicing expenses which
may not exceed .75 of 1% for Class A shares for Money Market and Tax-Exempt and
.35 of 1% for Class A shares for Treasury. The payments for Money Market's Class
B shares may not exceed it. The payments for Class A for each of the Funds were
voluntarily limited to .30 of 1% of average daily net assets. Such fees are
accrued daily and paid monthly.
In connection with their Plans, Money Market and Tax-Exempt have entered
into distribution agreements with Evergreen Funds Distributor, Inc. ("EFD"), a
subsidiary of Furman Selz whereby Money Market and Tax-Exempt will compensate
EFD for its services at a rate which may not exceed .30 of 1% of Class A average
daily net assets and 1% of Class B average daily net assets (Money Market only).
A portion of Money Market's Class B Plan, up to .25 of 1% of average daily net
assets may constitute a shareholder service fee. EFD has entered into a
Shareholder Services Agreement with First Union Brokerage Services ("FUBS"), an
affiliate of First Union, whereby EFD will compensate FUBS for certain services
provided to shareholders and/or maintenance of shareholder accounts relating to
Money Market's Class B shares. At August 31, 1995, $836 remains payable from
Money Market to EFD related to the Shareholder Services Plan.
In connection with its Plan, prior to July 7, 1995, Treasury had entered
into distribution agreements with Federated Securities Corp. ("FSC") whereby
Treasury compensated FSC for its services at a rate which did not exceed .30 of
1% of Class A average daily net assets. Effective July 7, 1995, Treasury entered
into a distribution agreement with EFD whereby Treasury will compensate EFD for
its services at a rate which may not exceed .30 of 1% of Class A average daily
net assets.
NOTE 6 -- SHARES OF BENEFICIAL INTEREST
Money Market and Tax-Exempt have an unlimited number of $0.0001 par value
shares of beneficial interest authorized. Treasury has an unlimited number of no
par value shares of beneficial interest authorized. The shares are divided into
classes which are designated Class Y, Class A and Class B shares (Money Market
only). Class Y shares are available 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 the First Union and its
affiliates as of December 30, 1994. The classes have identical voting, dividend,
liquidation and other rights, except that Class A and Class B shares bear
distribution expenses (see Note 5) and have exclusive voting rights with respect
to their distribution plans.
39

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS
NOTE 6 -- SHARES OF BENEFICIAL INTEREST -- continued
Transactions in shares of beneficial interest (valued at $1.00 per share)
were as follows:
<TABLE>
<CAPTION>
YEAR ENDED TEN MONTHS ENDED
MONEY MARKET AUGUST 31, 1995 AUGUST 31, 1994
<S> <C> <C>
CLASS A*
Shares sold............................................................................. 263,807,185 --
Shares issued from acquisition of First Union Money Market Portfolio.................... 577,090,623 --
Shares issued from reinvestment of distributions........................................ 1,073,970 --
Shares redeemed......................................................................... (156,830,783) --
Net increase............................................................................ 685,140,995 --
CLASS B**
Shares sold............................................................................. 1,222,632 --
Shares issued from acquisition of First Union Money Market Portfolio.................... 8,848,122 --
Shares issued from reinvestment of distributions........................................ 41,082 --
Shares redeemed......................................................................... (2,185,089) --
Net increase............................................................................ 7,926,747 --
CLASS Y
Shares sold............................................................................. 1,484,885,160 1,123,908,685
Shares issued from acquisition of First Union Money Market Portfolio.................... 56,344,508 --
Shares issued from reinvestment of distributions........................................ 13,226,417 8,126,641
Shares redeemed......................................................................... (1,544,913,353) (1,157,797,109)
Net increase (decrease)................................................................. 9,542,732 (25,761,783)
Total net increase (decrease) resulting from Fund share transactions.................... 702,610,474 (25,761,783)
</TABLE>

<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
TAX-EXEMPT AUGUST 31, 1995 AUGUST 31, 1994
<S> <C> <C>
CLASS A***
Shares sold............................................................................. 126,822,267 --
Shares issued from acquisition of First Union Tax-Free Money Market Portfolio........... 529,834,393 --
Shares issued from reinvestment of distributions........................................ 499,871 --
Shares redeemed......................................................................... (102,091,382) --
Net increase............................................................................ 555,065,149 --
CLASS Y
Shares sold............................................................................. 396,597,152 438,032,706
Shares issued from acquisition of First Union Tax-Free Money Market Portfolio........... 74,340,683 --
Shares issued from reinvestment of distributions........................................ 12,777,605 10,143,045
Shares redeemed......................................................................... (464,546,791) (447,132,393)
Net increase............................................................................ 19,168,649 1,043,358
Total net increase resulting from Fund share transactions............................... 574,233,798 1,043,358
</TABLE>

<PAGE>
COMBINED NOTES TO FINANCIAL STATEMENTS
NOTE 6 -- SHARES OF BENEFICIAL INTEREST -- continued
<TABLE>
<CAPTION>
EIGHT MONTHS
ENDED YEAR ENDED
TREASURY AUGUST 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
CLASS A
Shares sold............................................................................. 1,854,109,537 2,181,392,175
Shares issued from reinvestment of distributions........................................ 5,178,018 4,558,410
Shares redeemed......................................................................... (1,436,384,809) (1,692,374,918)
Net increase............................................................................ 422,902,746 493,575,667
CLASS Y
Shares sold............................................................................. 504,560,638 630,963,750
Shares issued from reinvestment of distributions........................................ 552 --
Shares redeemed......................................................................... (390,083,477) (834,151,856)
Net increase (decrease)................................................................. 114,477,713 (203,188,106)
Total net increase resulting from Fund share transactions............................... 537,380,459 290,387,561
</TABLE>

* Class share activity reflects the period from commencement of class
operations, January 4, 1995 through August 31, 1995.
** Class share activity reflects the period from commencement of class
operations, January 26, 1995 through August 31, 1995.
*** Class share activity reflects the period from commencement of class
operations, January 5, 1995 through August 31, 1995.
NOTE 7 -- CONCENTRATION OF CREDIT RISK
Each Fund maintains a diversified portfolio of money market instruments
which are deemed, under Rule 2a-7 of the Act to have a maturity of 397 days or
less and whose ratings are determined to be of eligible quality under Securities
and Exchange Commission rules. The ability of the issuers of the securities held
by the Funds to meet their obligations may be affected by economic developments
in a specific industry, state, region or country. Certain instruments may be
entitled to the benefit of standby letters of credit or other guarantees of
banks or other financial institutions.
NOTE 8 -- SUBSEQUENT EVENT
On September 19, 1995, the Funds' management signed Agreements and Plans of
Reorganization to exchange substantially all of the net assets of certain mutual
funds ("FFB Funds") advised by First Fidelity Bancorporation listed below for
shares of the Funds. The FFB Funds' Trustees have called a special meeting of
the FFB Funds' shareholders to consider the proposed transactions. If the
transactions are consummated, the reorganizations are scheduled to take place on
or about January 19, 1996.
<TABLE>
<CAPTION>
NET ASSETS ACQUIRING
FFB FUND TO BE ACQUIRED AT AUGUST 31, 1995 EVERGREEN FUND
<S> <C> <C>
FFB Cash Management Fund $769.5 million Money Market
Lexicon Cash Management Fund 98.3 million Money Market
FFB Tax-Free Money Market Fund 103.7 million Tax-Exempt
FFB U.S. Treasury Fund 887.3 million Treasury
FFB 100% U.S. Treasury Fund 25.4 million Treasury
FFB U.S. Government Fund 237.3 million Treasury
</TABLE>

<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND SHAREHOLDERS OF
EVERGREEN MONEY MARKET FUND AND
EVERGREEN TAX-EXEMPT MONEY MARKET FUND
In our opinion, the accompanying Statements of Assets and Liabilities,
including the Statements of Investments, and the related Statements of
Operations and of Changes in Net Assets and the Financial Highlights present
fairly, in all material respects, the financial position of Evergreen Money
Market Fund and Evergreen Tax-Exempt Money Market Fund (one of the Evergreen
Municipal Trust Portfolios), (the "Funds"), at August 31, 1995, the results of
each of their operations for the year then ended, the changes in the net assets
of Evergreen Money Market Fund for the year then ended and for the ten-month
period ended August 31, 1994, the changes in the net assets of Evergreen
Tax-Exempt Money Market Fund for each of the two years in the period then ended,
and the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 1995 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
October 24, 1995
42

<PAGE>
INDEPENDENT AUDITORS' REPORT
THE TRUSTEES AND SHAREHOLDERS OF
EVERGREEN TREASURY MONEY MARKET FUND:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, for Evergreen Treasury Money Market Fund
(formerly First Union Treasury Money Market Portfolio) as of August 31, 1995,
and the related statements of operations for the eight-month period ended August
31, 1995, and changes in net assets for the eight-month period ended August 31,
1995 and the year ended December 31, 1994, and the financial highlights for each
of the years or periods from March 6, 1991 (commencement of operations) through
August 31, 1995. 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 are 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
August 31, 1995 by correspondence with the custodian and brokers. An audit also
includes assessing the overall accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provides 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 Treasury Money Market Fund as of August 31, 1995, and the results of
its operations, changes in its net assets and the financial highlights for each
of the periods listed above, in conformity with generally accepted accounting
principles.
KPMG PEAT MARWICK LLP
Pittsburgh, Pennsylvania
October 16, 1995
(The following text is enclosed in a box):

FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED)
100% of the dividends distributed by Tax Exempt Money Market
Fund for the year ended August 31, 1995 are exempt from federal
income tax, other than alternative minimum tax.
43
<PAGE>

(blank page)
<PAGE>
TRUSTEES AND OFFICERS
TRUSTEES:
Mr. Laurence B. Ashkin*
Mr. Foster Bam*
Mr. James S. Howell, Chairman
Mr. Robert J. Jeffries*
Mr. Gerald M. McDonnell
Mr. Thomas L. McVerry
Mr. William W. Pettit
Mr. Russell A. Salton, III M.D.
Mr. Michael S. Scofield
OFFICERS:
John J. Pileggi
President and Treasurer
Joan V. Fiore
Secretary
Sheryl Hirschfeld
Assistant Secretary
Donald E. Brostrom
Assistant Treasurer
Stephen W. St. Clair
Assistant Treasurer
* Not a Trustee for Evergreen Treasury Money Market Fund.
<PAGE>

NOT May lose value
FDIC No bank guarantee
INSURED
(The above text is enclosed in a box.)
Evergreen Funds Distributor, Inc. 536901
11/95