STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 25, 1995
Acquisition of the Assets of
FFB TAX-FREE MONEY MARKET FUND
OF
FFB FUNDS TRUST
237 Park Avenue
New York, New York 10017
1-800-437-8790
By and in Exchange for Shares of
EVERGREEN TAX EXEMPT MONEY MARKET FUND
OF
THE EVERGREEN MUNICIPAL TRUST
2500 Westchester Avenue
Purchase, NY 10577
1-800-807-2940
This Statement of Additional Information, relating specifically to the
proposed transfer of the assets of the FFB Tax-Free Money Market Fund, a series
of FFB Funds Trust, in exchange for Class A shares of Evergreen Tax Exempt Money
Market Fund, a series of The Evergreen Municipal Trust, and the assumption by
Evergreen Tax Exempt Money Market Fund of certain identified liabilities of the
FFB Tax-Free Money Market Fund, is not a prospectus. A Prospectus/Proxy
Statement dated September 25, 1995 relating to the above-referenced matter may
be obtained from Evergreen Tax Exempt Money Market Fund, 2500 Westchester
Avenue, Purchase, New York 10577 or by calling toll-free 1-800- 807-2940. This
Statement of Additional Information relates to and should be read in conjunction
with such Prospectus/Proxy Statement.
This Statement of Additional Information incorporates by reference the
following documents, a copy of each of which accompanies this Statement of
Additional Information:
1. The Prospectus of the Evergreen Tax Exempt Money Market
Fund dated July 7, 1995.
2. The Statement of Additional Information of the
Evergreen Tax Exempt Money Market Fund dated July 7,
1995.
3. The Annual Report of the Evergreen Tax Exempt Money
Market Fund dated August 31, 1994.
4. The Semi-Annual Report of the Evergreen Tax Exempt
<PAGE>
Money Market Fund dated February 28, 1995.
5. The Prospectus of the FFB Tax-Free Money Market Fund
dated June 30, 1995.
6. The Statement of Additional Information of the FFB
Tax-Free Money Market Fund dated June 30, 1995.
7. The Annual Report of the FFB Tax-Free Money Market Fund
dated February 28, 1995.
The following pro forma financial information relates to the FFB Tax-Free
Money Market Fund and the Evergreen Tax Exempt Money Market Fund:
-2-
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
EVERGREEN TAX EXEMPT FFB TAX FREE
MONEY MARKET FUND MONEY MARKET FUND PRO FORMA COMBINED
June 30, 1995 June 30, 1995
SECURITY DESCRIPTION Principal Principal Adjustments Principal
Amount Value Amount Value Amount Value
<S> <C> <C> <C> <C> <C> <C> <C>
ALABAMA 3.3%
ALABAMA ST INDL DEV AUTH REV 4.4% 9/1/15* 3,700,000 3,700,000 3,700,000 3,700,000
ALABAMA ST INDL DEV AUTH REV 4.49% 1/1/10* 2,550,000 2,550,000 2,550,000 2,550,000
BIRMINGHAM ALA MED CLINIC REV 12/1/26* 2,000,000 2,000,000 2,000,000 2,000,000
BIRMINGTON AL COML DEV AUTH, 4.5% 6/1/00* 720,000 720,000 720,000 720,000
CHATOM ALA INDL DEV BRD 4.55% 8/15/95 200,000 200,000 200,000 200,000
DIRMINGTON AL COML DEV AUTH 4.5% 6/1/01* 1,270,000 1,270,000 1,270,000 1,270,000
JEFFERSON CNTY AL SPL OBLIG 4.4% 10/1/02* 9,000,000 9,000,000 9,000,000 9,000,000
LIVINGSTON ALA INDL DEV BRD 4.6% 8/1/97* 1,100,000 1,100,000 1,100,000 1,100,000
MOBILE CNTY AL INDL DEV BD REV 4.35% 6/1/05* 3,500,000 3,500,000 3,500,000 3,500,000
NORTH ALABAMA REYNOLDS 12/1/00* 400,000 400,000 400,000 400,000
NORTHPORT ALA MULTI FAMILY REV 4.45% 7/1/18* 5,935,000 5,935,000 5,935,000 5,935,000
PHENIX CITY AL MEAD 10/1/25* 1,100,000 1,100,000 1,100,000 1,100,000
PHENIX CITY ALA IDB KRAFT PJ 12/1/15* 2,200,000 2,200,000 2,200,000 2,200,000
TUSCALOOSA ALA INDL DEV BRD, 4.25% 12/1/99* 1,000,000 1,000,000 1,000,000 1,000,000
TOTAL ALABAMA 28,975,000 28,975,000 5,700,000 34,675,000 34,675,000
ARIZONA 7.5%
CHANDLER AZ INDL DEV AUTH 3.6% 12/15/09* 900,000 900,000 900,000 900,000
MARICOPA CNTY AZ 5/1/29* 3,700,000 3,700,000 3,700,000 3,700,000
MARICOPA CNTY AZ, 5%, 7/28/95* 8,500,000 8,505,207 8,500,000 8,505,207
MARICOPA CNTY AZ 5.2% 7/1/95* 6,625,000 6,625,000 6,625,000 6,625,000
MARICOPA CNTY AZ INDL DEV AUTH 4.5% 10/1/04* 200,000 200,000 200,000 200,000
MARICOPA CNTY AZ POLLUTN CTL 4.2% 8/2/95* 4,000,000 4,000,000 4,000,000 4,000,000
MARICOPA CNTY AZ POLLUTION CTL 4.8% 12/1/14* 22,700,000 22,700,000 22,700,000 22,700,000
MARICOPA CNTY AZ POLLUTION CTL 4.9% 7/1/14* 23,600,000 23,600,000 23,600,000 23,600,000
PINAL CNTY AZ INDL DEV AUTH, 4.1% 12/01/05* 8,700,000 8,700,000 8,700,000 8,700,000
TOTAL ARIZONA 75,225,000 75,230,207 78,925,000 78,930,207
CALIFORNIA 16.8%
BARSTOW CA MULTIFAMILY REV MULTI 4.4% 4/1/18* 1,400,000 1,400,000 1,400,000 1,400,000
CONTRA COSTA CNTY CA TRAN 4.5% 7/3/96 800,000 806,136 800,000 806,136
CORONA CA MLT FAM MTG REV, 4.625% 2/01/05* 4,500,000 4,500,000 4,500,000 4,500,000
FRESNO CA MULTI HSG REV 4.375% 7/1/05* 12,700,000 12,700,000 12,700,000 12,700,000
HEMET CA MLT FAM HSG REV 4.25% 7/1/06* 1,500,000 1,500,000 1,500,000 1,500,000
LANCASTER CA REDEV AGY MLT FAM 4.5% 8/1/17* 8,500,000 8,500,000 8,500,000 8,500,000
LOS ANGELES CA CMTY REDEV COPS 12/1/14* 2,500,000 2,500,000 2,500,000 2,500,000
LOS ANGELES CA UNI SCH DIST 4.5% 7/3/96* 25,000,000 25,153,400 25,000,000 25,153,400
LOS ANGELES CA UNI SCH DISTRICT, 4.5%, 7/10/95 6,000,000 6,003,999 6,000,000 6,003,999
OCEANSIDE CA CMNTY DEV MLT FAM 4.325% 12/1/07* 8,525,000 8,525,000 8,525,000 8,525,000
ORANGE CNTY CA IMPT ACT 1915 4.6% 9/2/18* 29,300,000 29,300,000 29,300,000 29,300,000
ORANGE CNTY CA VAR SANTN 4.5% 8/1/17* 9,600,000 9,600,000 9,600,000 9,600,000
ORANGE CNTY CA, 4.24%, 8/10/95 ++* 10,000,000 10,000,000 10,000,000 10,000,000
ORANGE CNTY CA CTFS PARTN 4.2% 3/1/16* 3,000,000 3,000,000 3,000,000 3,000,000
ORANGE COUNTY CA 4.5% 7/19/95 +* 14,000,000 14,004,980 14,000,000 14,004,980
RIVERSIDE CNTY CA MLY FAM MSG4.5% 12/1/07* 9,400,000 9,400,000 9,400,000 9,400,000
SAN BERNARDINO CNTY CA CTFS 4.2% 8/1/28* 10,000,000 10,000,000 10,000,000 10,000,000
SAN DIEGO CA IDR C/P GAS/ELECT CP 3.35% 8/22/95 1,000,000 1,000,000 1,000,000 1,000,000
SAN DIEGO CA MLT FAM HSG REV 4.4% 6/1/07* 4,500,000 4,500,000 4,500,000 4,500,000
SAN DIEGO CALIF TANS 4.75% 7/3/96* 1,000,000 1,007,812 1,000,000 1,007,812
SAN FRANCISCO CA BAY TRANS TAX 9% 7/1/95 2,000,000 2,060,000 2,000,000 2,060,000
SAN FRANCISCO CALIF CITY & CHT 4.75%, 8/24/95 4,000,000 4,003,114 4,000,000 4,003,114
SANTA ANA CA MLT FAM HSG REV 4.35% 12/1/07* 5,000,000 5,000,000 5,000,000 5,000,000
SIMI VY CALIF INDL DEV AUTH 4.5% 12/1/14* 2,700,000 2,700,000 2,700,000 2,700,000
TOTAL CALIFORNIA 171,625,000 171,850,493 5,300,000 5,313,948 176,925,000 177,164,441
COLORADO 3.5%
ADAMS CNTY CO INDL DEV REV, 4.64% 12/1/03* 1,410,000 1,410,000 1,410,000 1,410,000
ARAPAHOE CNTY COLO 4.45% 8/31/95 1,000,000 1,000,000 1,000,000 1,000,000
ARAPAHOE CNTY CO MLT FAM REV 4.5% 11/1/17* 2,500,000 2,500,000 2,500,000 2,500,000
ARAPAHOE CNTY CO CAP IMPT HWY, 4.4% 8/31/95 8,000,000 8,000,000 8,000,000 8,000,000
ARAPAHOE CNTY CO CAP IMPT HWY, 4.45%, 8/31/95 12,500,000 12,500,000 12,500,000 12,500,000
BOULDER CNTY CO REV 5.25% 12/01/95* 580,000 580,000 580,000 580,000
COLORADO PARKVIEW DIST 4.3% 12/1/12* 2,680,000 2,680,000 2,680,000 2,680,000
COLORADO SPRINGS CO UTILS REV 9.375% 11/15/95 5,000,000 5,099,898 5,000,000 5,099,898
MOFFAT CNTY COLO POLL CTL REV 5/1/13/* 2,600,000 2,600,000 2,600,000 2,600,000
TOTAL COLORADO 32,670,000 32,769,898 3,600,000 3,600,000 36,270,000 36,369,898
DELAWARE 0.5%
DELWARE ST ECON INDL DEV REV, 4.55% 4/15/03* 3,000,000 3,000,000 3,000,000 3,000,000
NEW CASTLE DE TOYSRUS 4.25% 2/1/14* 2,480,000 2,480,000 2,480,000 2,480,000
TOTAL DELAWARE 5,480,000 5,480,000 5,480,000 5,480,000
DISTRICT OF COLUMBIA 6.2%
DISTRICT COLUMBIA REV 4.05% 7/01/95 4,600,000 4,600,000 4,600,000 4,600,000
DISTRICT COLUMBIA 4.4% 10/01/01* 200,000 200,000 200,000 200,000
DISTRICT OF COLUMBIA, 4.4% 10/01/07* 12,300,000 12,300,000 12,300,000 12,300,000
DISTRICT COLUMBIA 4.5% 12/01/01* 5,120,000 5,120,000 5,120,000 5,120,000
DISTRICT COLUMBIA 4.7% 6/1/03* 22,400,000 22,400,000 22,400,000 22,400,000
DISTRICT COLUMBIA 6.25% 9/30/95 20,000,000 20,066,169 1,000,000 1,003,247 21,000,000 21,069,416
TOTAL DISTRICT OF COLUMBIA 60,020,000 64,686,169 1,000,000 1,003,247 65,620,000 65,689,416
FLORIDA 3.0%
DADE CNTY FL INDV DEV AUTH REV 4.2% 1/1/16* 2,300,000 2,300,000 2,300,000 2,300,000
DADE CO FL SPL OBLIG SER 87A 10/1/99* 1,800,000 1,800,000 1,800,000 1,800,000
DADE CO FL SPL OBLIG SER A 10/1/99* 350,000 350,000 350,000 350,000
FLORIDA HSG FIN AGY 4.25% 12/15/95 2,735,000 2,735,000 2,735,000 2,735,000
FLORIDA HSG FIN AGY 5% 12/1/95 4,500,000 4,494,500 4,500,000 4,494,500
HILLSBOROUGH CNTY FL 8.3% 2/1/96 1,000,000 1,045,522 1,000,000 1,045,522
JACKSONVILLE CNTY FL BAPTIST CTR 6/1/08* 2,300,000 2,300,000 2,300,000 2,300,000
JACKSONVILLE FL ELEC AUTH REV 8.875% 10/1/95 1,995,000 2,056,289 1,995,000 2,056,289
JACKSONVILLE FL ELEC AUTH REV 9.375% 10/1/95 1,750,000 1,805,899 1,750,000 1,805,899
JACKSONVILLE FL HLTH FACS AUTH REV 2/1/18* 1,800,000 1,800,000 1,800,000 1,800,000
MANATEE CNTY FL POLL CTL REC 9/1/24* 2,200,000 2,200,000 2,200,000 2,200,000
MARION CNTY FL HGS FIN AUTH 4.65% 12/1/07* 500,000 500,000 500,000 500,000
MARTIN CITY FLORIDA POLL CTL 9/1/24* 1,000,000 1,000,000 1,000,000 1,000,000
MONROE CNTY FL SCH 4% 6/5/96 500,000 500,000 500,000 500,000
ORLANDO FL UTILS WTR 8.5% 10/1/95 1,000,000 1,031,541 1,000,000 1,031,541
PALM BEACH CNTY FL INDL DEV 4.48% 5/5/10* 1,070,000 1,070,000 1,070,000 1,070,000
PUTMAN CNTY FL DEV 3.4% 12/15/95 1,000,000 1,000,000 1,000,000 1,000,000
PUTNAM CNTY FL PCR PUT 4.3% 9/15/95 1,000,000 1,000,000 1,000,000 1,000,000
UNIV ATHLETIC ASSN INC FLA CAP 2/1/20* 3,000,000 3,000,000 3,000,000 3,000,000
TOTAL FLORIDA 14,850,000 14,961,688 16,950,000 17,027,063 31,800,000 31,988,751
GEORGIA 1.8%
ALBANY DOUGHERTY CNTY GA HOSP 4.5% 10/1/26* 1,000,000 1,000,000 1,000,000 1,000,000
ATHENS CLARKE CNTY GA INDL DEV 4.5% 5/1/08* 2,000,000 2,000,000 2,000,000 2,000,000
BURKE COUNTY GA DEV 7/1/24* 2,000,000 2,000,000 2,000,000 2,000,000
COLUMBUS GA AUTH INDL REV 4.55% 6/1/98* 435,000 435,000 435,000 435,000
COLUMBUS GA HSG AUTH MLT FAM, 4.35% 2/1/05* 2,200,000 2,200,000 2,200,000 2,200,000
COLUMBUS GA INDL + PORT DEV 4.5% 8/1/95* 2,000,000 2,000,000 2,000,000 2,000,000
FULTON CO GA HSG AUT SER A 8/1/16* 1,950,000 1,950,000 1,950,000 1,950,000
FULTON CNTY GA MLT FAM HSG REV 4.25% 9/1/13* 2,455,000 2,455,000 2,455,000 2,455,000
MACON BIBB CNTY GA URBAN DEV 4.15% 11/1/15* 1,280,000 1,280,000 1,280,000 1,280,000
MARIETTA GA HSG AUTH MUFAM 5.25% 1/15/96 1,000,000 1,000,000 1,000,000 1,000,000
POLK CNTY GA DEV AUTH REV 4.5% 12/1/15* 2,000,000 2,000,000 2,000,000 2,000,000
PRIVATE COLLEGES & UNIV FAC GA 8.15% 10/1/95 1,000,000 1,039,856 1,000,000 1,039,856
TOTAL GEORGIA 14,370,000 14,409,856 4,950,000 4,950,000 19,320,000 19,359,856
IDAHO 0.4%
AVILLA ID ECON DEV REV 4.85% 1/1/14* 700,000 700,000 700,000 700,000
CUSTER CNTY IDAHO PO 4.2% 10/1/95 1,000,000 1,000,000 1,000,000 1,000,000
POWER CO ID POLL CTL 12/1/10* 2,500,000 2,500,000 2,500,000 2,500,000
TOTAL IDAHO 700,000 700,000 3,500,000 3,500,000 4,200,000 4,200,000
ILLINOIS 5.6%
CENTRAL LAKE CNTY IL JT ACTN 4.35% 5/1/20* 15,660,000 15,660,000 15,660,000 15,660,000
CHICAGO ARPT SPL FAC CSX AVIAT 12/15/14* 1,000,000 1,000,000 1,000,000 1,000,000
CHICAGO IL OHARE INTL ARPT REV 4.6% 12/1/17* 1,500,000 1,500,000 1,500,000 1,500,000
CHICAGO IL. OHARE INTL ARPT REV,5%, 7/1/95 2,000,000 2,000,000 2,000,000 2,000,000
CHICAGO ILL, 4.25% 1/1/22* 6,680,000 6,680,000 6,680,000 6,680,000
CHICAGO OHARE INTL APT REV 1/1/18* 1,000,000 1,000,000 1,000,000 1,000,000
ILLINOIS DEV FIN AUTH ECON DEV 4.625 10/1/16* 3,500,000 3,500,000 3,500,000 3,500,000
ILLINOIS DEV FIN AUTH INDL REV 4.25% 10/1/12* 1,495,000 1,495,000 1,495,000 1,495,000
ILLINOIS DEV FIN AUTH INDL REV 4.4% 6/1/12* 3,300,000 3,300,000 3,300,000 3,300,000
ILLINOIS DEV FIN AUTH INDL REV 4.4% 7/1/14* 1,000,000 1,000,000 1,000,000 1,000,000
ILLINOIS DEV FIN AUTH MLT FAM 4.35% 10/1/05* 950,000 950,000 950,000 950,000
ILLINOIS DEV FIN AUTH REV 4.6% 9/1/95 6,800,000 6,800,000 6,800,000 6,800,000
ILLINOIS EDL FACS AUTH REVS 3/1/28* 300,000 300,000 300,000 300,000
ILLINOIS EDL FACS AUTH REVS 3/1/27* 350,000 350,000 350,000 350,000
ILLINOIS HLTH FACS AUTH REV SER D 8/1/15* 400,000 400,000 400,000 400,000
ILLINOIS HLTH FAC 4% 6/6/96 1,000,000 1,000,000 1,000,000 1,000,000
ILLINOIS HLTH FACS AUTH REV 4.3% 1/1/16* 3,400,000 3,400,000 3,400,000 3,400,000
ILLINOIS HSG DEV AUTH ILL CTR APTS 1/1/08* 1,700,000 1,700,000 1,700,000 1,700,000
ILLINOIS ST TOLL HWY AUTH 1/1/10* 1,000,000 1,000,000 1,000,000 1,000,000
JACKSONVILLE ILL INDL PROJ REV 4.4% 2/1/26* 2,640,000 2,640,000 2,640,000 2,640,000
ORLANDO HILLS ILL MULTI FAM MTG 12/1/07* 1,360,000 1,360,000 1,360,000 1,360,000
SKOKIE ILL INDL DEV AUTH 4.5% 12/1/14* 2,000,000 2,000,000 2,000,000 2,000,000
TOTAL ILLINOIS 50,925,000 50,925,000 8,110,000 8,110,000 59,035,000 59,035,000
INDIANA 4.2%
HAMMOND IN ECONOMIC DEV REV 4.45% 7/1/24* 2,750,000 2,750,000 2,750,000 2,750,000
INDIANA BD BK 4.125% 1/10/96 13,500,000 13,500,000 13,500,000 13,500,000
INDIANA BD BK 5.75% 1/10/96 10,000,000 10,035,393 10,000,000 10,035,393
INDIANA ST EMPLOYMNT COMMN REV 4.5% 1/1/14* 200,000 200,000 200,000 200,000
INDIANAPOLIS IN ECON DEV REV 4.5% 4/1/05* 2,600,000 2,600,000 2,600,000 2,600,000
MISHAWAKA IN ECONOMIC DEV REV 4.35% 10/1/03* 3,500,000 3,500,000 3,500,000 3,500,000
ROCKPORT IN POLLUTION CTL REV 4.25% 6/1/25* 10,000,000 10,000,000 10,000,000 10,000,000
SOUTH BEND IND 4.4% 10/1/09* 2,000,000 2,000,000 2,000,000 2,000,000
TOTAL INDIANA 44,550,000 44,585,393 44,550,000 44,585,393
IOWA 0.5%
BURLINGTON CO IA IDR JOYCE INC PJ 7/1/95 1,000,000 1,000,000 1,000,000 1,000,000
DES MOINES IA METHODIST SYS 4.5% 8/01/15* 4,595,000 4,595,000 4,595,000 4,595,000
TOTAL IOWA 4,595,000 4,595,000 1,000,000 1,000,000 5,595,000 5,595,000
KANSAS 2.6%
KANSAS CITY MD MLT FAM HSG REV 4.65% 10/01/95 9,890,000 9,890,000 9,890,000 9,890,000
LEHEXA KS MULTI FAMILY HSG REV 4.65% 10/01/95 8,500,000 8,500,000 8,500,000 8,500,000
OSAGE KS INDL REV BD 4.58% 12/1/99* 4,800,000 4,800,000 4,800,000 4,800,000
PRAIRE VILL KS MLT FAM REV 12/1/15* 1,800,000 1,800,000 1,800,000 1,800,000
SALINA KANS 4.375% 12/1/14* 2,305,000 2,305,000 2,305,000 2,305,000
TOTAL KANSAS 25,495,000 25,495,000 1,800,000 1,800,000 27,295,000 27,295,000
KENTUCKY 1.2%
JEFFERSON CNTY KY HOSP 12/1/14* 952,000 952,000 952,000 952,000
OHIO CNTY KY POLLUTN CTL REV 4.35% 10/1/15* 10,300,000 10,300,000 10,300,000 10,300,000
PENDELTON CNTY KY REV 4% 7/1/96 1,000,000 1,000,000 1,000,000 1,000,000
TOTAL OHIO 10,300,000 10,300,000 1,952,000 1,952,000 12,252,000 12,252,000
LOUISIANA 0.7%
NEW ORLEANS LA REFUND 8%, 9/1/95 1,460,000 1,468,686 1,460,000 1,468,686
LOUISIANA OFFSHORE AUTH 9/1/08* 3,100,000 3,100,000 3,100,000 3,100,000
LOUISIANA PUB FACS 12/1/15* 500,000 500,000 500,000 500,000
LOUISIANA PUB FACS AUTH CP 4.4% 7/21/95 1,700,000 1,700,000 1,700,000 1,700,000
LOUISIANA PUB FACS AUTH HOSP 9/1/23* 500,000 500,000 500,000 500,000
LOUISIANA ST REC DIS 7/01/97* 500,000 500,000 500,000 500,000
TOTAL LOUISIANA 7,760,000 7,768,686 7,760,000 7,768,686
MARYLAND 1.4%
BALTIMORE CNTY MD BAN CP 4.15% 9/8/95 1,000,000 1,000,000 1,000,000 1,000,000
BALTIMORE MD ECONOMIC DEV REV, 4.25% 12/1/99* 1,300,000 1,300,000 1,300,000 1,300,000
HOWARD CNTY MD MULTI HOUSE 4.25% 6/1/96 1,000,000 1,000,000 1,000,000 1,000,000
MARYLAND ST CMNTY DEV DEPT HSG 4.35% 10/01/95 6,490,000 6,490,000 6,490,000 6,490,000
NORTHEAST MD WASTE DISP RES 4.7% 7/1/95 4,800,000 4,800,000 4,800,000 4,800,000
TOTAL MARYLAND 12,590,000 12,590,000 2,000,000 2,000,000 14,590,000 14,590,000
MASSACHUSETTS 1.8%
LOWELL MA, 4.48% 4/4/01 460,000 460,000 460,000 460,000
MASS ST INDL FIN AGN PCR CP 4.15% 8/11/95 2,000,000 2,000,000 2,000,000 2,000,000
MASSACHUSETTES ST INDL FIN AGY, 4.48% 10/6/99* 1,000,000 1,000,000 1,000,000 1,000,000
MASSACHUSETTS BAY TRANSN AUTH 5.5% 3/1/96 15,000,000 15,086,200 15,000,000 15,086,200
MASSACHUSETTS ST INDL FIN AGY 4.48% 10/1/14* 700,000 700,000 700,000 700,000
TOTAL MASSACHUSETTS 17,160,000 17,246,200 2,000,000 2,000,000 19,160,000 19,246,200
MICHIGAN 1.4%
BATTLE CREEK MI ECON DEV CORP, 4.25% 12/1/99* 2,909,000 2,909,000 2,909,000 2,909,000
DELTA CNTY MI ECONIC DEV CORP 2/1/23* 3,000,000 3,000,000 3,000,000 3,000,000
MERIDIAN MI ECONOMIC DEV 3.6% 11/15/14* 800,000 800,000 800,000 800,000
MICHI ST STRATEGIC FD OBLIG REV 2/1/09* 3,000,000 3,000,000 3,000,000 3,000,000
MIDLAND COUNTY MICH ECONOM DEV 12/1/15* 1,200,000 1,200,000 1,200,000 1,200,000
MONROE CNTY MICH ECO DEV CORP 10/1/24* 1,000,000 1,000,000 1,000,000 1,000,000
VAN BUREN TWP MICH ECONOMIC 4.5% 3/1/97* 2,000,000 2,000,000 2,000,000 2,000,000
WESTERN SCH DIST MIC 3.7% 5/1/96 500,000 500,000 500,000 500,000
TOTAL MICHIGAN 5,709,000 5,709,000 8,700,000 8,700,000 14,409,000 14,409,000
MISSISSIPPI 0.2%
CLAIRBORNE CO MISS PL CTL CP 3.15% 8/4/95 2,000,000 2,000,000 2,000,000 2,000,000
TOTAL MISSISSIPPI 2,000,000 2,000,000 2,000,000 2,000,000
MISSOURI 0.7%
MISSOURI ENV IMP ENE 4% 6/1/96 500,000 500,000 500,000 500,000
MISSOURI ST DEV FIN BRD INDL 4.35% 11/1/24* 4,500,000 4,500,000 4,500,000 4,500,000
ST LOUIS CNTY MO INDL DEV AUTH 4.5% 12/1/15* 2,000,000 2,000,000 2,000,000 2,000,000
TOTAL MISSOURI 6,500,000 6,500,000 500,000 500,000 7,000,000 7,000,000
MONTANA 0.3%
MONTANA ST BRD INVT RES RCVRY 4.2% 12/30/15* 3,300,000 3,300,000 3,300,000 3,300,000
TOTAL MONTANA 3,300,000 3,300,000 3,300,000 3,300,000
NEW HAMPSHIRE 0.5%
NEW HAMPSHIRE HFA OXFORD 7/1/06* 1,500,000 1,500,000 1,500,000 1,500,000
NEW HAMPSHIRE HIGH EDL + HLTH 4.35% 6/1/23* 3,645,000 3,645,000 3,645,000 3,645,000
TOTAL NEW HAMPSHIRE 3,645,000 3,645,000 1,500,000 1,500,000 5,145,000 5,145,000
NEW MEXICO 1.6%
ALBURQUERQUE NM HOSP REV 9.25% 8/1/95 1,000,000 1,006,041 1,000,000 1,006,041
FARMINGTON NM POLLUTN CTL REV 4.9% 7/1/14* 2,600,000 2,600,000 2,600,000 2,600,000
FARMINGTON NM POLLUTN CTL REV 4.9% 1/1/13* 10,000,000 10,000,000 10,000,000 10,000,000
NEW MEXICO MTG. FIN AUTH 4.7% 7/1/95 3,755,000 3,755,000 3,755,000 3,755,000
TOTAL NEW MEXICO 17,355,000 17,361,041 17,355,000 17,361,041
NEW JERSEY 1.4%
MORRIS CNTY NJ BANS 4.7% 12/1/15/95 1,000,000 1,000,676 1,000,000 1,000,676
NEW JERSEY STATE 6.25% 9/15/95 1,190,000 1,193,805 1,190,000 1,193,805
NEW JERSEY ST HSG GEN RESOLUTION 4.15% 8/1/95 6,000,000 6,000,000 6,000,000 6,000,000
NEW JERSEY ST 4.65%, 8/15/95 5,400,000 5,400,000 5,400,000 5,400,000
NEW JERSEY STREET 5.25% 3/1/96 1,000,000 1,003,176 1,000,000 1,003,176
TOTAL NEW JERSEY 12,400,000 12,403,176 2,190,000 2,194,481 14,590,000 14,597,657
NEW YORK 0.7%
ERIE COUNTY NEW YORK 4.75% 8/15/95 1,000,000 1,000,876 1,000,000 1,000,876
NEW YORK NEW YORK GO SERIES A-7 8/1/20* 500,000 500,000 500,000 500,000
NEW YORK NEW YORK GO SERIES A-8 8/1/18* 600,000 600,000 600,000 600,000
NEW YORK STATE ENERGY POL CTL 4.7% 3/1/96 1,000,000 1,000,000 1,000,000 1,000,000
NEW YORK ST ENERGY RES POLLUTN 4.2% 2/1/29* 3,000,000 3,000,000 3,000,000 3,000,000
NY STATE DORM AUTH REV 7/1/23* 800,000 800,000 800,000 800,000
TOTAL NEW YORK 3,000,000 3,000,000 3,900,000 3,900,876 6,900,000 6,900,876
NORTH CAROLINA 1.6%
COLUMBUS CNTY NC INDL FACS 4.2% 11/1/06* 7,700,000 7,700,000 7,700,000 7,700,000
GREENBORO NC PUBLIC IMPROVEMENT 4/1/11* 1,750,000 1,750,000 1,750,000 1,750,000
NCMB POOLED TAX EXEMPT TRUST 4.5% 11/15/20* 6,200,000 6,200,000 6,200,000 6,200,000
NCMB POOLED TAX EXEMPT TRUST 4.5% 12/15/08* 1,180,000 1,180,000 1,180,000 1,180,000
TOTAL NORTH CAROLINA 15,080,000 15,080,000 1,750,000 1,750,000 16,830,000 16,830,000
OHIO 0.1%
COLUMBUS OHIO SER 1 6/1/19* 1,000,000 1,000,000 1,000,000 1,000,000
TOTAL OHIO 1,000,000 1,000,000 1,000,000 1,000,000
OKLAHOMA 1.6%
BARTLESVILLE OK DEV AUTH REV 4.75% 1/1/09* 2,800,000 2,800,000 2,800,000 2,800,000
GARFIELD CNTY OK INDL AUTH POL 4.05% 1/1/25* 10,000,000 10,000,000 10,000,000 10,000,000
TULSA INDL AUTH REV 12/1/08* 1,305,000 1,305,000 1,305,000 1,305,000
TULSA OK HLTH CARE MED SUP SVCS 9/1/16* 3,000,000 3,000,000 3,000,000 3,000,000
TOTAL OKLAHOMA 12,800,000 12,800,000 4,305,000 4,305,000 17,105,000 17,105,000
OREGAN 0.6%
OREGON ST HEALTH HSG EDL + CUL 4.15% 3/1/20* 5,050,000 5,050,000 5,050,000 5,050,000
METROPOLITAN SVC DIST OR 5% 7/1/11* 1,000,000 1,000,000 1,000,000 1,000,000
TOTAL OREGAN 6,050,000 6,050,000 6,050,000 6,050,000
PENNSYLVANIA 1.0%
ALLEGHENY CO. PA CP USST 7/21/95 2,500,000 2,500,000 2,500,000 2,500,000
CHESTER CNTY PA INDL DEV AUTH 12/1/08* 1,500,000 1,500,000 1,500,000 1,500,000
LAWRENCE CNTY PA INDL DEV AUTH, 4.5% 10/1/05* 650,000 650,000 650,000 650,000
RINGGOLD PA SCH DIST, 9.75%, 8/1/95 790,000 809,053 790,000 809,053
WEST CORNWALL TWP PA MUN AUTH 4.625% 3/1/25* 2,050,000 2,050,000 2,050,000 2,050,000
WESTMORELAND CNTY PA INDL DEV 4.62% 12/1/95 2,995,000 2,995,000 2,995,000 2,995,000
TOTAL PENNSYLVANIA 6,485,000 6,504,053 4,000,000 4,000,000 10,485,000 10,504,053
RHODE ISLAND 0.1%
RI STATE HEALTH / EDL 4.5% 10/1/95 600,000 600,000 600,000 600,000
TOTAL RHODE ISLAND 600,000 600,000 600,000 600,000
SOUTH CAROLINA 2.4%
CHESTER CNTY SC SCH DIST 3.9% 2/1/96 1,270,000 1,288,799 1,270,000 1,288,799
FLORENCE CO SC STONE CONT CORP 12/15/14* 200,000 200,000 200,000 200,000
SOUTH CAROLINA JOBS ECON DEV 4.6% 9/1/17* 2,700,000 2,700,000 2,700,000 2,700,000
SOUTH CAROLINA JOBS ECON DEV 5% 1/1/04* 150,000 150,000 150,000 150,000
SOUTH CAROLINA JOBS ECON DEV 5% 12/01/08* 700,000 700,000 700,000 700,000
SOUTH CAROLINA JOBS ECON DEV 5% 4/1/10* 800,000 800,000 800,000 800,000
SOUTH CAROLINA JOBS ECON DEV 5% 4/7/99* 250,000 250,000 250,000 250,000
SOUTH CAROLINA JOBS ECON DEV 5% 5/7/01* 1,150,000 1,150,000 1,150,000 1,150,000
SOUTH CAROLINA JOBS ECON DEV 5% 6/1/03* 800,000 800,000 800,000 800,000
SOUTH CAROLINA ST 4.3% 2/1/04* 5,049,000 5,049,000 5,049,000 5,049,000
SOUTH CAROLINA ST PUB SVC AUTH 4.35% 7/1/21* 8,355,000 8,355,000 8,355,000 8,355,000
SUMTER CNTY S C INDL REV 4.375% 12/1/02* 2,400,000 2,400,000 2,400,000 2,400,000
YORK CNTY SC POLL CTL 4.55% 8/15/95 1,000,000 1,000,000 1,000,000 1,000,000
TOTAL SOUTH CAROLINA 23,624,000 23,642,799 1,200,000 1,200,000 24,824,000 24,842,799
TENNESSEE 3.2%
BLOUNT CNTY TENN INDL DEV BRD 4.6% 8/1/08* 1,000,000 1,000,000 1,000,000 1,000,000
CHATTANDOGA TENN INDL DEV BRD, 4.5% 3/1/4* 3,200,000 3,200,000 3,200,000 3,200,000
METRO GOV'T NASHVILLE TN IHDL 4.25% 9/01/95 2,850,000 2,850,000 2,850,000 2,850,000
METRO GOVT NASHVILLE TN INDL 4.5% 4/1/08* 3,610,000 3,610,000 3,610,000 3,610,000
METRO GOVT NSHVILLE TN INDL 4.25% 6/1/15* 3,300,000 3,300,000 3,300,000 3,300,000
MORRISTOWN TENN 4.375% 6/01/98* 2,500,000 2,500,000 2,500,000 2,500,000
RUTHERFORD CNTY TN INDL DEV 4.4% 10/1/07* 3,700,000 3,700,000 3,700,000 3,700,000
TENNESSEE HSG DEV AGY 4.85% 7/1/95 10,205,000 10,205,000 10,205,000 10,205,000
TENNESSEE ST BAN SER B VAR 5/1/96 3,600,000 3,600,000 3,600,000 3,600,000
TOTAL TENNESSEE 30,365,000 30,365,000 3,600,000 3,600,000 33,965,000 33,965,000
TEXAS 13.0%
BEXAR CO TX HFC MTGI REV CRE MILL 8/1/06* 1,000,000 1,000,000 1,000,000 1,000,000
BEXAR CO TX HFC SER 1984 A 11/1/06* 1,000,000 1,000,000 1,000,000 1,000,000
DALLAS TX INDL DEV CORP REV 4.368% 5/1/10* 3,550,000 3,550,000 3,550,000 3,550,000
EAGLE TAX EXEMPT 4.3% 7/1/14* 3,200,000 3,200,000 3,200,000 3,200,000
EAGLE TAX EXEMPT TX 4.3% 10/1/08* 6,000,000 6,000,000 6,000,000 6,000,000
EAGLE TAX EXEMPT TX 4.3% 6/5/12* 8,000,000 8,000,000 8,000,000 8,000,000
EAGLE TAX EXEMPT TX 4.3% 7/1/29* 9,500,000 9,500,000 9,500,000 9,500,000
EAGLE TAX EXEMPT TX 4.45% 5/1/25* 10,000,000 10,000,000 10,000,000 10,000,000
EL PASO TEXAS PUB 4.25% 8/15/95 1,000,000 1,000,113 1,000,000 1,000,113
EL PASO TX 5.875% 8/15/95 500,000 504,265 500,000 504,265
GALVESTON CNTY TEX HSG FIN COR 4.5% 10/1/27* 6,425,000 6,425,000 6,425,000 6,425,000
HARRIS CNTY TEXAS 4.2% 10/1/95 1,000,000 1,000,000 1,000,000 1,000,000
HARRIS CNTY TX 4.3% 8/15/20* 5,000,000 5,000,000 5,000,000 5,000,000
HOCKLEY CNTY TEX IND 4.15% 11/1/95 1,000,000 1,000,000 1,000,000 1,000,000
MORRISTOWN TX INDL DEV DRD, 4.375% 6/1/98* 2,500,000 2,500,000 2,500,000 2,500,000
SAN ANTONIO TX ARPT SYS REV 4.35% 10/1/95 1,420,000 1,420,000 1,420,000 1,420,000
TARRANT CNTY TX HLTH FACS DEV 4.7% 1/1/21* 1,600,000 1,600,000 1,600,000 1,600,000
TARRANT CNTY TX HSG FIN CORP 5% 12/1/95* 4,380,000 4,380,000 4,380,000 4,380,000
TEXAS STREET 5% 8/31/95 68,000,000 68,095,951 1,000,000 1,000,000 69,000,000 69,095,951
TYLER TX HLTH FACS CP 4.35% 7/19/95 1,000,000 1,000,000 1,000,000 1,000,000
TOTAL TEXAS 130,075,000 130,175,216 7,000,000 7,000,113 137,075,000 137,175,329
UTAH 1.4%
INTRMOUNTAIN PWR AGY UT PWR 4.375 7/1/18* 6,783,000 6,783,000 6,783,000 6,783,000
INTRMOUNTAIN PWR AGY UT PWR 9% 7/1/95 1,000,000 1,015,000 1,000,000 1,015,000
INTRMOUNTAIN PWR AGY UT PWR 9.375% 7/1/95 1,000,000 1,020,000 1,000,000 1,020,000
INTRMOUNTAIN PWR AGY UT PWR 10.375% 7/1/95 3,065,000 3,141,625 3,065,000 3,141,625
SUMMIT CNTY UTAH 4.75% 7/1/08 3,000,000 3,000,000 3,000,000 3,000,000
TOTAL UTAH 14,848,000 14,959,625 14,848,000 14,959,625
VIRGINIA 3.3%
ALEXANDRIA VA REDEV + HSG AUTH 4.4% 12/15/18* 8,500,000 8,500,000 8,500,000 8,500,000
AMELIA CNT VA INDL DEV AUTH 4.4% 7/1/07* 6,200,000 6,200,000 6,200,000 6,200,000
CHESTERFIELD CO VA CP 4.2% 7/1/95 3,000,000 3,000,000 3,000,000 3,000,000
HARRISONBURG VA REDE 5.1% 2/1/96 1,000,000 1,000,000 1,000,000 1,000,000
HENRICO CO VA INDUST DEV AUTH REV 5/1/24* 2,700,000 2,700,000 2,700,000 2,700,000
LOUDON CNTY VA IDA RES CARE FAC 11/1/24* 1,000,000 1,000,000 1,000,000 1,000,000
LOUISA VA INDL DEV AUTH PCTL CP 4% 8/7/95 1,790,000 1,790,000 1,790,000 1,790,000
MARSHALL CNTY W VA POL CTL REV 3/1/26* 1,000,000 1,000,000 1,000,000 1,000,000
ROCKINGHAM CNTY VA INDL DEV 4.25% 10/1/22* 1,000,000 1,000,000 1,000,000 1,000,000
VIRGINIA COLL BLGD 5.2% 10/1/95 1,000,000 1,000,810 1,000,000 1,000,810
VIRGINIA ST HSG DEV AUTH, 4.25%, 7/12/95 5,000,000 5,000,000 5,000,000 5,000,000
VIRGINIA ST HSG DEV AUTH 4.4% 7/12/95 3,000,000 3,000,000 3,000,000 3,000,000
TOTAL VIRGINIA 23,700,000 23,700,000 11,490,000 11,490,810 35,190,000 35,190,810
WASHINGTON 3.0%
PILCHUCK DEV PUB CORP WA REV 4.38% 8/1/10* 747,000 747,000 747,000 747,000
SEATTLE WA INDL DEV CORP REV 4.5% 12/1/95* 1,000,000 1,000,000 1,000,000 1,000,000
WASHINGTON ST 4.3% 9/1/15* 11,020,000 11,020,000 11,020,000 11,020,000
WASHINGTON ST PUB PWR SUPPLY 4.3% 7/1/00*** 6,410,000 6,410,000 6,410,000 6,410,000
WASHINGTON ST PUD PWR SUPPLY 4.4% 7/1/15*** 8,240,000 8,240,000 8,240,000 8,240,000
WASHINGTON STREET 4.3% 9/1/15* 4,000,000 4,000,000 4,000,000 4,000,000
TOTAL WASHINGTON 31,417,000 31,417,000 31,417,000 31,417,000
MISCELLANEOUS 2.9%
BAKBROOK TER MLT FAM REV, 4.75% 4/1/96 15,000,000 15,000,000 15,000,000 15,000,000
IRVING TAX INDPT SCH DIST 4.75% 8/31/95 10,000,000 10,000,912 10,000,000 10,000,912
LASALLE NATL BK 1993 SER A TAX 4.4% 1/1/97* 4,748,634 4,748,633 4,748,634 4,748,633
STEVENSON INDL DEV BRD 2.55% 11/1/16* 400,000 400,000 400,000 400,000
TOTAL MISCELLANEOUS 29,748,634 29,749,545 400,000 400,000 30,148,634 30,149,545
SHORT TERM INVESTMENTS 0.9%
FIDELITY TAX EXEMPT MONEY MARKET FUND 9,766,000 9,766,000 195,571 195,571 9,961,571 9,961,571
US TREASURY BILLS 5/30/96 45,000 42,750 45,000 42,750
TOTAL SHORT TERM INVESTMENTS 9,766,000 9,766,000 240,571 238,321 10,006,571 10,004,321
TOTAL INVESTMENTS
(COST $1,084,731,904)** 102.9% 959,997,634 960,927,359 123,697,571 123,804,545 1,083,695,205 1,084,731,904
OTHER ASSETS & LIABILITIES -2.9% (28,342,339) (2,222,077) (30,564,416)
TOTAL NET ASSETS 100.0% 932,585,020 121,582,468 1,054,167,488
</TABLE>
(See Notes which are an integral part of the Pro Forma Financial Statements)
* This security is payable on demand on no more than seven calander days notice
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 on the terms of the security.
** Also represents cost for federal tax purposes.
+ This security is backed by a put option issued by First Union Corporation
(an affiliate) whereby First Union Corporation will stand by to purchase
the security at par value from the Fund. At June 30, 1995, this security
had a value of $14,004,980 which includes the market value of the put
option of $2,800,000.
++ This security is backed by a put option issued by First Union Corporation
(an affiliate) whereby First Union Corporation will stand by to purchase
the security at par value from the Fund. At June 30, 1995, this security
had a value of $10,000,000 which includes the market value of the put
option of $1,700,000.
THE FOLLOWING ABBREVIATIONS ARE USED IN THIS PORTFOLIO:
CP - Commercial Paper
GO - General Obligation
PCR - Pollution Control Revenue
<PAGE>
<TABLE>
<CAPTION>
Evergreen
Tax Exempt FFB Tax-Free
Money Market Money Market Pro Forma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(Cost $1,084,731,904) $960,927,359 $123,804,545 $1,084,731,904
Cash 249,555 59,998 43,140 (1) 352,693
Interest receivable 11,864,265 884,656 12,748,921
Receivable for investment
securities sold 5,141,078 0 5,141,078
Other assets 0 14,411 14,411
Prepaid expenses 29,705 46,792 (43,140)(1) 33,357
TOTAL ASSETS 978,211,962 124,810,402 0 1,103,022,364
LIABILITIES:
Payable for investment securities
purchased 40,153,400 2,814,650 42,968,050
Due to custodian bank 2,463,726 2,463,726
Payable for fund shares repurchased (82) 0 (82)
Dividends payable 2,688,364 308,056 2,996,420
Accrued advisory fee 0 32,249 32,249
Accrued expenses 321,534 72,979 394,513
TOTAL LIABILITIES 45,626,942 3,227,934 0 48,854,876
NET ASSETS 932,585,020 121,582,468 0 1,054,167,488
NET ASSETS CONSIST OF:
Paid in capital 932,821,889 121,556,175 1,054,339,420
Unrealized apprec/(deprec) on investments 0 0
Accumulated net realized gain/(loss) (236,869) 26,293 (210,576)
NET ASSETS 932,585,020 121,582,468 0 1,054,167,488
Net asset value and offering price per share:
Class A $1.00 $1.00 $1.00
Class Y $1.00 - $1.00
Net Assets:
Class A 859,452,695 121,582,468 981,035,163
Class Y 73,132,325 - 73,132,325
Shares outstanding:
Class A 859,623,180 121,556,475 194,716,538
Class Y 73,160,063 - 859,623,180
</TABLE>
(See Notes which are an integral part of the Pro Forma Financial Statements)
(1)To eliminate prepaid expenses not allocable to the combined Fund.
<PAGE>
<TABLE>
<CAPTION>
Evergreen FFB Tax Free
Money Market Tax Exempt Money Money Market Pro Forma
Market Fund Adjustments Combined
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income $35,320,680 $3,495,750 $38,816,430
EXPENSES:
Investment advisory fee 4,575,572 333,310 137,655 (1) 5,046,537
Administrative personnel and
service fees 0 137,449 (137,449)(1)
Custodian and portfolio
accounting fees 206,983 42,910 (24,493)(3) 225,400
Shareholder servicing fees 0 27,519 (27,519)(5) 0
Transfer and dividend disbursing
agent fees 266,471 5,964 (3,415)(2) 269,020
Distribution services fees-Class(A)1,420,565 12,038 273,946 (4) 1,706,549
Fund share registration costs 57,074 12,160 69,234
Professional fees 75,981 21,010 16,981 (8) 113,972
Printing and postage 32,364 21,649 (21,504)(6) 32,509
Trustees fees and expenses 22,566 6,340 (6,340)(6) 22,566
Insurance premiums 13,222 3,252 (252)(6) 16,222
Miscellaneous 19,673 12,025 (2,188)(6) 29,510
TOTAL EXPENSES 6,690,471 635,626 205,422 7,531,519
Less fee waiver and expense
reimbursements (1,143,892) (7,503) 441,128 (7) (710,267)
NET EXPENSES 5,546,579 628,123 646,550 6,821,252
NET INVESTMENT INCOME 29,774,101 2,867,627 (646,550) 31,995,178
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investments (7,261) (3,246) 0 (10,507)
Net gain (loss) on investments (7,261) (3,246) 0 (10,507)
Net increase in net assets
resulting from operations 29,766,840 2,864,381 (646,550) 31,984,671
</TABLE>
(See Notes which are an integral part of the Pro Forma Financial Statements)
(1)Reflects an increase in investment advisory fee and a decrease in
administrative personnel and service fees based on the surviving Fund's
fee schedule.
(2)Reflects elimination of duplicate service fees.
(3)Based on surviving Fund's contract in effect for custodian and portfolio
accounting services.
(4)Reflects an increase in distribution service fees for Class A shares based
on the surviving Fund's fee schedule and combined Class A net assets.
(5)Reflects the elimination of a shareholder service fee that is not
applicable under the surviving Fund's fee structure.
(6)Adjustment reflects the expected cost savings when the funds combine.
(7)Reflects an increase in waiver of investment advisory fee based on the
surviving Fund's voluntary advisory fee waiver in effect for the year
ended June 30, 1995.
(8)Reflects anticipated expenses of the combined funds.
Evergreen Tax Exempt Money Market Fund
Notes to Pro Forma Combining Financial Statements (Unaudited)
June 30, 1995
1. Basis of Combination - The Pro forma Statement of Assets and
Liabilities, including the Pro Forma Portfolio of Investments,
and the related Pro forma Statement of Operations ("Pro forma
Statements")reflect the accounts of Evergreen Tax Exempt Money Market
Fund("Evergreen") and FFB Tax Free Money Market Fund ("FFB") at June 30,
1995 and for the year then ended.
The Pro forma Statements give effect to the proposed transfer of
all assets and liabilities of FFB in exchange for shares of
Evergreen. The Pro forma Statements do not reflect the expense of
either Fund in carrying out its obligations under the Agreement and
Plan of Reorganization. The actual fiscal year end of the
combined Fund will be August 31, the fiscal year end of Evergreen.
The Evergreen Fund's accounts at June 30, 1995 and for the year then
ended includes the accounts of First Union Tax Exempt Money Market
Portfolio which transferred its assets and liabilities to
Evergreen on July 7, 1995.
The Reorganization will be accomplished through the acquisition of
substantially all of the assets of FFB by Evergreen, and the
assumption by Evergreen of certain identified liabilities of FFB.
Thereafter there will be a distribution of such shares of Evergreen
to shareholders of FFB in liquidation of and subsequent termination
of FFB. The information contained herein is based on the experience
of each fund for the year ended June 30, 1995 and is designed to
permit shareholders of FFB to evaluate the financial effect of the
proposed Reorganization. The expenses of Evergreen and FFB in connection
with the Reorganization (including the cost of any proxy soliciting
agents), will be borne by First Union National Bank of North Carolina.
<PAGE>
The Pro forma Statements should be read in conjunction with the
historical financial statements of each Fund incorporated by reference
in the Statement of Additional Information.
2. Shares of Beneficial Interest - The pro forma net asset value per
share assumes the issuance of additional shares of Evergreen Class A
shares which would have been issued at June 30, 1995 in connection
with the proposed reorganization. The amount of additional shares
assumed to be issued was calculated based on the June 30, 1995 net
assets of FFB totaling $ 121,582,468 and the net asset value per
share of Evergreen of $1.
The pro forma shares outstanding of 1,054,339,718 consist of
121,556,475 additional shares to be issued in proposed
reorganization, as calculated above, plus 932,783,243 shares of
Evergreen outstanding as of June 30, 1995.
3. Pro Forma Operations - The Pro Forma Statement of Operations
assumes similar rates of gross investment income for the investments
of each Fund. Accordingly, the combined gross investment income is
equal to the sum of each Fund's gross investment income. Pro forma
operating expenses include the actual expenses of the Funds and the
combined Fund, with certain expenses adjusted to reflect the
expected expenses of the combined entity. The investment advisory
fee, administrative personnel and service fees, and distribution
service fees have been charged to the combined Fund based on the fee
schedule in effect for Evergreen at the combined level of average
net assets for the year ended June 30, 1995. In accordance with the
fee schedule in effect for Evergreen, the Adviser will reimburse the
combined Fund to the extent that the Fund's aggregate annual
operating expenses (including the advisory fee but excluding
interest, taxes, brokerage commissions, Rule
<PAGE>
12b-1 distribution fees and shareholder service fees, and
extraordinary expenses) exceed 1.00% of the average net assets for
any fiscal year. Additionally, the Adviser may, at its
discretion, waive its fee or reimburse the Fund for certain of its
expenses in order to reduce the Fund's expense ratio. An adjustment
has been made to the combined Fund expenses to increase the waiver
of investment advisory fee based on the voluntary advisory fee
waiver in effect for Evergreen for the year ended June 30, 1995.
The Adviser may, at its discretion, revise or cease this voluntary
fee waiver at any time.
<PAGE>
<PAGE>
