1933 Act File No. 33-23180
1940 Act File No. 811-05579
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 25 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 26 [X]
EVERGREEN MUNICIPAL TRUST
(Exact Name of Registrant as Specified in Charter)
200 Berkeley Street, Boston, Massachusetts 02116-5034
(Address of Principal Executive Offices)
617-210-3200
(Registrant's Telephone Number)
Dorothy E. Bourassa, Esq.
First Union Corporation
200 Berkeley Street
Boston, Massachusetts 02116
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
[X] immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
<PAGE>
EVERGREEN MUNICIPAL TRUST
CONTENTS OF
POST-EFFECTIVE AMENDMENT NO. 25
to
REGISTRATION STATEMENT
This Post-Effective Amendment No. 25 to Registration Statement No.
33-23180/811-05579 consists of the following pages, items of information, and
documents:
The Facing Sheet
The Contents Page
The Cross-Reference Sheet
PART A
------
Prospectus for Evergreen Tax Exempt Money Market Fund contained in
Post-Effective Amendment No. 22 to Registration Statement No. 33-23180/811-05579
filed on October 30, 1996 is incorporated by reference herein.
PART B
------
Statement of Additional Information for Evergreen Tax Exempt Money Market Fund
contained in Post-Effective Amendment No. 22 to Registration Statement
No. 33-23180/811-05579 filed on October 30, 1996 is incorporated by reference
herein.
PART C
------
Financial Statements
Exhibits
Number of Holders of Securities
Indemnification
Business and Other Connections of Investment Adviser
Principal Underwriter
Location of Accounts and Records
Undertakings
Signatures
<PAGE>
EVERGREEN MUNICPAL TRUST
Cross-Reference Sheet pursuant to Rules 404 and 495 under the Securities
Act of 1933.
N-1A Item No. Location in Prospectus(es)
Part A
Item 1. Cover Page Cover Page
Item 2. Synopsis and Fee Table Overview of the Fund(s);
Expense Information
Item 3. Condensed Financial Information Financial Highlights
Item 4. General Description of Registrant Cover Page; Description of
the Funds; General
Information
Item 5. Management of the Fund Management of the Fund(s);
General Information
Item 6. Capital Stock and Other Securities General Information
Item 7. Purchase of Securities Being Offered Purchase and Redemption of
Shares
Item 8. Redemption or Repurchase Purchase and Redemption of
Shares
Item 9. Pending Legal Proceedings Not Applicable
Location in Statement of
Part B Additional Information
Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and History Not Applicable
Item 13. Investment Objectives and Policies Investment Objectives and
Policies;Investment
Restrictions; Non-
Fundamental Operating
Policies
Item 14. Management of the Fund Management
Item 15. Control Persons and Principal Management
Holders of Securities
Item 16. Investment Advisory and Other Services Investment Adviser;
Purchase of Shares
Item 17. Brokerage Allocation Allocation of Brokerage
Item 18. Capital Stock and Other Securities Purchase of Shares
Item 19. Purchase, Redemption and Pricing of Distribution Plans; Purchase
Securities Being Offered of Shares; Net Asset Value
Item 20. Tax Status Additional Tax Information
Item 21. Underwriters Distribution Plans; Purchase
of Shares
Item 22. Calculation of Performance Data Performance Information
Item 23. Financial Statements Financial Statements
Part C
Information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C to this Registration Statement.
<PAGE>
SUPPLEMENT TO THE PROSPECTUS FOR THE FOLLOWING:
CLASS A,B AND C SHARES OF MONEY MARKET FUND AND CLASS A PROSPECTUS OF
EVERGREEN TAX EXEMPT MONEY MARKET FUND, EVERGREEN PENNSYLVANIA
TAX FREE MONEY MARKET FUND, AND EVERGREEN TREASURY MONEY MARKET
THE PROSPECTUS OF THE FUNDS IS HEREBY SUPPLEMENTED AS FOLLOWS:
At a joint special meeting of shareholders held on December 15, 1997, the
shareholders approved EVERGREEN MONEY MARKET FUND'S reorganization as a separate
series of the Evergreen Money Market Trust, which was organized on September 17,
1997. In connection with the reorganization, the investment objective(s) of
EVERGREEN MONEY MARKET FUND is now "nonfundamental" (i.e., changeable by vote of
the Board of Trustees without a shareholder vote). In addition, EVERGREEN MONEY
MARKET FUND is now subject to certain standardized investment restrictions as
set forth in the Fund's Statement of Additional Information.
EXPENSE INFORMATION
The "Expense Information" section is replaced entirely by the following:
The tables below summarize the shareholder transaction costs, which are
fees paid directly from your account when you buy or sell shares of a Fund,
associated with an investment in Class A shares of each Fund, and in the case of
EVERGREEN MONEY MARKET FUND, Class B and Class C Shares. For further information
see "Purchase and Redemption of Shares" and "General Information -- Other
Classes of Shares".
<TABLE>
<CAPTION>
(Evergreen Money Market Fund
only)
SHAREHOLDER TRANSACTION EXPENSES Class A Shares Class B Shares Class C Shares
<S> <C> <C> <C>
Contingent Deferred Sales Charge (as None 5.00%(1) 1.00%
a % of original purchase price or
redemption proceeds, whichever is
lower)
</TABLE>
(1) The deferred sales charge on Class B shares declines from 5.00% to
1.00% of amounts redeemed within six years after the month of
purchase. The Funds do not charge a contingent deferred sales charge
on redemptions made after that. See "Purchase and Redemption of
Shares" for more information.
Annual operating expenses reflect the normal operating expenses of a Fund,
and include costs such as management, distribution and other fees. The tables
below show, for each class of each Fund other than Class C shares of Evergreen
Money Market Fund, actual annual operating expenses for the fiscal period ended
August 31, 1997. The tables below show for Class C shares of Evergreen Money
Market Fund estimated annual operating expenses for the fiscal year ended
January 31, 1998. The example shows what you would pay if you invested $1,000
over periods indicated. The example assumes that you reinvest all of your
dividends and that the Fund's average annual return will be 5%. THE EXAMPLES ARE
FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE FUND'S ACTUAL EXPENSES AND RETURNS
WILL VARY. For a more complete description of the various costs and expenses
borne by the Fund see "Purchase and Redemption of Shares" and "General
Information -- Other Classes of Shares." 1
EVERGREEN MONEY MARKET FUND
<TABLE>
<CAPTION>
EXAMPLES
ANNUAL OPERATING
EXPENSES Assuming Redemption Assuming no
(AFTER REIMBURSEMENTS)(2) at End of Period Redemption
Class A Class B Class C Class A Class B Class C Class B Class C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees 0.41% 0.41% 0.41%
(after Reimbursement) After 1 Year $ 8 $ 65 $ 25 $ 15 $ 15
12b-1 Fees(1) 0.30% 1.00% 1.00%
After 3 Years $ 25 $ 77 $ 47 $ 47 $ 47
Other Expenses 0.08% 0.08% 0.08%
After 5 Years $ 44 $ 101 $ 81 $ 81 $ 81
After 10 Years $ 98 $ 150 $ 178 $150 $ 178
Total 0.79% 1.49% 1.49%
</TABLE>
EVERGREEN TAX EXEMPT MONEY MARKET FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES
(AFTER Assuming Redemption
REIMBURSEMENTS)(2) at End of Period
Class A Class A
<S> <C> <C> <C>
Management Fees 0.47%
(after Reimbursement)
After 1 Year $ 8
12b-1 Fees(1) 0.30%
After 3 Years $ 26
Other Expenses 0.06%
After 5 Years $ 46
After 10 Years $103
Total 0.83%
</TABLE>
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES
(AFTER Assuming Redemption
REIMBURSEMENTS)(2) at End of Period
Class A Class A
<S> <C> <C> <C>
Management Fees 0.40%
(after Reimbursement) After 1 Year $ 8
12b-1 Fees(1) 0.21%
After 3 Years $ 26
Other Expenses 0.19%
After 5 Years $ 44
After 10 Years $ 99
Total 0.80%
</TABLE>
EVERGREEN TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
ANNUAL OPERATING EXAMPLE
EXPENSES
(AFTER Assuming Redemption
REIMBURSEMENTS)(2) at End of Period
Class A Class A
<S> <C> <C> <C>
Management Fees 0.35%
(after Reimbursement) After 1 Year $ 7
12b-1 Fees(1) 0.30%
After 3 Years $ 23
Other Expenses 0.07%
After 5 Years $ 40
After 10 Years $ 89
Total 0.72%
</TABLE>
(1) Although Class A shares can pay up to 0.75% of average net assets as a
12b-1 fee, for the foreseeable future such fees have been limited to 0.30%
of average net assets. In addition, a portion of PENNSYLVANIA TAX FREE
MONEY MARKET FUND'S 12b-1 fee is being waived. Absent such waiver,
PENNSYLVANIA TAX FREE MONEY MARKET FUND'S would have been 0.30%.
(2) First Union National Bank ("FUNB") has agreed to reimburse each Fund to the
extent that a Fund's aggregate annual operating expenses exceed 1.00%
of average net assets for any fiscal year. FUNB currently expects to
continue such expense limitations through January 31, 1998, but may,
however, cease these voluntary expenses reimbursements at any time. For
the fiscal year ended August 31, 1997, FUNB reimbursed management fees of
certain of the Funds. Absent such reimbursements, each Fund would have
paid expenses equal to the following percentages of net assets:
<TABLE>
<CAPTION>
TOTAL FUND OPERATING
EXPENSES (WITHOUT
MANAGEMENT FEES WAIVERS AND/OR
FUND (WITHOUT WAIVER) REIMBURSEMENT)
<S> <C> <C>
Evergreen Money Market Fund
Class A........................................................................ 0.46% 0.88%
Class B........................................................................ 0.46% 1.55%
Class C........................................................................ 0.46% 1.55%
Evergreen Tax Exempt Money Market Fund
Class A........................................................................ 0.50% 0.86%
Evergreen Pennsylvania Tax Free Money Market Fund
Class A........................................................................ 0.40% 0.89%
</TABLE>
FINANCIAL HIGHLIGHTS
The "Financial Highlights" section is replaced entirely by the following:
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the ten most recent fiscal years ended August 31,
1997 or the life of the fund if shorter for EVERGREEN MONEY MARKET FUND and
EVERGREEN TAX EXEMPT MONEY MARKET FUND has been audited by Price Waterhouse LLP,
each Fund's independent accountants, and for EVERGREEN TREASURY MONEY MARKET
FUND and EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND has been audited by
KPMG Peat Marwick LLP, each Fund's independent auditors. A report of Price
Waterhouse LLP or KPMG Peat Marwick LLP, as the case may be, on the audited
information with respect to each Fund is incorporated by reference in the Fund's
SAI. The following information for each Fund should be read in conjunction with
the financial statements and related notes which are incorporated by reference
in the Fund's SAI.
Further information about each Fund's performance is contained in the
Funds' Annual Report to shareholders, which may be obtained without charge.
EVERGREEN MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 4, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................................. $ 1.00 $ 1.00 $ 1.00
Net investment income............................................................ 0.05 0.05 0.03
Less distributions to shareholders from net investment income.................... (0.05) (0.05) (0.03)
Net asset value end of year........................................................ $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN....................................................................... 4.95% 5.05% 3.53%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses................................................................... 0.79% 0.75% 0.81%(a)
Total expenses excluding indirectly paid expenses................................ 0.79% -- --
Total expenses excluding waivers and/or reimbursements........................... 0.88% 0.89% 1.02%(a)
Net investment income............................................................ 4.87% 4.86% 5.26%(a)
Net assets end of year (millions).................................................. $2,803 $1,755 $ 685
</TABLE>
(a) Annualized.
EVERGREEN MONEY MARKET FUND -- CLASS B SHARES
<TABLE>
<CAPTION>
CLASS B SHARES
JANUARY 26, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.................................................... $ 1.00 $ 1.00 $ 1.00
Net investment income.............................................................. 0.04 0.04 0.03
Less distributions to shareholders from net investment income...................... (0.04) (0.04) (0.03)
Net asset value end of year.......................................................... $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN (a)..................................................................... 4.22% 4.31% 2.78%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses..................................................................... 1.49% 1.45% 1.51%(b)
Total expenses excluding indirectly paid expenses.................................. 1.49% -- --
Total expenses excluding waivers and/or reimbursements............................. 1.55% 1.59% 2.39%(b)
Net investment income.............................................................. 4.16% 4.18% 4.54%(b)
Net assets end of year (millions).................................................... $ 23 $ 10 $ 8
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
EVERGREEN MONEY MARKET FUND -- CLASS C SHARES
<TABLE>
<CAPTION>
CLASS C SHARES
AUGUST 1, 1997
(COMMENCEMENT OF
CLASS OPERATIONS) TO
AUGUST 31, 1997
<S> <C>
PER SHARE DATA:
Net asset value beginning of period..................................................................... $ 1.00
Net investment income................................................................................. 0.00(c)
Less distributions to shareholders from net investment income......................................... (0.00)(c)
Net asset value end of period........................................................................... $ 1.00
TOTAL RETURN (c)........................................................................................ 0.37%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses........................................................................................ 1.67%(b)
Total expenses excluding indirectly paid expenses..................................................... 1.66%(b)
Total expenses excluding waivers and/or reimbursements................................................ 1.69%(b)
Net investment income................................................................................. 4.42%(b)
Net assets end of period (millions)..................................................................... $ 5
</TABLE>
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Represents an amount less than $0.01 per share.
EVERGREEN TAX EXEMPT MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
JANUARY 5, 1995
YEAR ENDED (COMMENCEMENT OF
AUGUST 31, CLASS OPERATIONS) TO
1997 1996 AUGUST 31, 1995
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............................................ $ 1.00 $ 1.00 $ 1.00
Net investment income...................................................... 0.03 0.03 0.02
Less distributions to shareholders from net investment income.............. (0.03) (0.03) (0.02)
Net asset value end of year.................................................. $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN................................................................. 3.13% 3.22% 2.24%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses............................................................. 0.83% 0.79% 0.78%(a)
Total expenses excluding indirectly paid expenses.......................... 0.83% -- --
Total expenses excluding waivers and/or reimbursements..................... 0.86% 0.90% 0.90%(a)
Net investment income...................................................... 3.09% 3.14% 3.28%(a)
Net assets end of year (millions)............................................ $ 667 $ 661 $ 555
</TABLE>
(a) Annualized.
EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
AUGUST 22, 1995
SIX MONTHS (COMMENCEMENT OF
YEAR ENDED ENDED CLASS OPERATIONS) TO
AUGUST 31, 1997 AUGUST 31, 1996 (B) FEBRUARY 29, 1996
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year.............................. $ 1.00 $ 1.00 $ 1.00
Net investment income........................................ 0.03 0.01 0.02
Less distributions to shareholders from net investment
income..................................................... (0.03) (0.01) (0.02)
Net asset value end of year.................................... $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN................................................... 3.05% 1.49% 1.72%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses............................................... 0.60% 0.55%(a) 0.47%(a)
Total expenses excluding indirectly paid expenses............ 0.60% -- --
Total expenses excluding waivers and/or reimbursements....... 0.89% 0.96%(a) 1.08%(a)
Net investment income........................................ 3.01% 2.97%(a) 3.14%(a)
Net assets end of year (millions).............................. $ 36 $ 22 $ 4
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from February 28 to August 31.
EVERGREEN TREASURY MONEY MARKET FUND -- CLASS A SHARES
<TABLE>
<CAPTION>
CLASS A SHARES
EIGHT MONTHS MARCH 6, 1991
YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF
AUGUST 31, AUGUST 31, DECEMBER 31, CLASS OPERATIONS) TO
1997 1996 1995 (B) 1994 1993 1992 DECEMBER 31, 1991
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income...................... 0.05 0.05 0.03 0.04 0.03 0.03 0.04
Less distributions to shareholders from net
investment income........................ (0.05) (0.05) (0.03) (0.04) (0.03) (0.03) (0.04)
Net asset value end of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN................................. 4.82% 4.98% 3.58% 3.75% 2.73% 3.36% 4.46%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses............................. 0.72% 0.69% 0.63%(a) 0.50% 0.48% 0.48% 0.47%(a)
Total expenses excluding indirectly paid
expenses................................. 0.72% -- -- -- -- -- --
Total expenses excluding waivers and/or
reimbursements........................... 0.72% 0.77% 0.79%(a) 0.78% 0.82% 0.82% 1.08%(a)
Net investment income...................... 4.73% 4.76% 5.30%(a) 3.91% 2.70% 3.22% 4.95%(a)
Net assets end of year (millions)............ $2,485 $2,608 $1,178 $ 755 $ 261 $ 209 $ 100
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
NAME CHANGES
Effective January 12, 1998, Evergreen Tax Exempt Money Market Fund will
be known as Evergreen Municipal Money Market Fund and Evergreen Pennsylvania Tax
Free Money Market Fund will be known as Evergreen Pennsylvania Municipal Money
Market Fund.
The name of the distributor of the Funds has been changed to Evergreen
Distributor, Inc.; the name of the administrator for certain of the Funds has
been changed to Evergreen Investment Services, Inc.; and the name of the
transfer agent for the Funds has been changed to Evergreen Service Company.
INVESTMENT OBJECTIVES AND POLICIES
Effective January 9, 1998, EVERGREEN TAX EXEMPT MONEY MARKET FUND and
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND adopted a nonfundamental
policy permitting it, under normal circumstances, to invest its assets so that
at least 80% of its annual interest income is exempt from federal income tax
other than the federal alternative minimum tax ("AMT").
INVESTMENT ADVISERS
Disclosure regarding the Funds' subadministrator is hereby deleted.
EXCHANGE PRIVILEGES
You may exchange shares of a Fund for shares of another Evergreen fund by
calling or writing to Evergreen Service Company or by using the Evergreen
Express Line. If the shares being tendered for exchange are still subject to a
contingent deferred sales charge or are eligible for conversion in a specified
time, such remaining charge or remaining time will carry over to the shares
being acquired in the exchange transaction.
PERFORMANCE INFORMATION
The Funds may quote their "total return" or "yield" for specified periods
in advertisements, reports, or other communications to shareholders. Total
return and yield are computed separately for each Class of shares. Performance
data for one or more classes may be included in any advertisement or sales
literature using performance data of a Fund.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE CLASS Y PROSPECTUS OF
EVERGREEN MONEY MARKET FUND, EVERGREEN TAX EXEMPT MONEY MARKET FUND,
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND, AND EVERGREEN TREASURY MONEY
MARKET EVERGREEN MONEY MARKET FUNDS
THE CLASS Y PROSPECTUS OF THE FUNDS IS HEREBY SUPPLEMENTED AS FOLLOWS:
At a joint special meeting of shareholders held on December 15, 1997, the
shareholders approved EVERGREEN MONEY MARKET FUND'S reorganization as a separate
series of the Evergreen Money Market Trust, which was organized on September 17,
1997. In connection with the reorganization, the investment objective(s) of
EVERGREEN MONEY MARKET FUND is now "nonfundamental" (i.e., changeable by vote of
the Board of Trustees without a shareholder vote). In addition, each EVERGREEN
MONEY MARKET FUND is now subject to certain standardized investment restrictions
as set forth in the Fund's Statement of Additional Information.
EXPENSE INFORMATION
The "Expense Information" section is replaced entirely by the following:
The tables below are designed to help you understand the various expenses
that you will bear, directly or indirectly, when you invest in a Fund.
Shareholder transaction expenses are fees paid directly from your account when
you buy or sell shares. THERE ARE NO SHAREHOLDER TRANSACTION EXPENSES.
Annual operating expenses reflect the normal operating expenses of a
Fund, and include costs such as management, distribution and other fees. The
tables below show each Fund's actual annual operating expenses for the fiscal
period ended August 31, 1997. The example shows what you would pay if you
invested $1,000 over periods indicated. The example assumes that you reinvest
all of your dividends and that the Fund's average annual return will be 5%. THE
EXAMPLES ARE FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE FUND'S ACTUAL
EXPENSES AND RETURNS WILL VARY. For a more complete description of the various
costs and expenses borne by the Fund see "Purchase and Redemption of Shares" and
"General Information -- Other Classes of Shares."
EVERGREEN MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
(AFTER REIMBURSEMENTS)(1)
Management Fees 0.41%
12b-1 Fees --
Other Expenses 0.02%
Total 0.43%
EXAMPLE
Class Y
After 1 Year $4
After 3 Years $14
After 5 Years $24
After 10 Years $54
EVERGREEN TAX EXEMPT MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
(AFTER REIMBURSEMENTS)(1)
Management Fees 0.47%
12b-1 Fees --
Other Expenses 0.06%
Total 0.53%
EXAMPLE
Class Y
After 1 Year $ 5
After 3 Years $17
After 5 Years $30
After 10 Years $66
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
(AFTER REIMBURSEMENTS)(1)
Management Fees 0.31%
12b-1 Fees --
Other Expenses 0.10%
Total 0.41%
EXAMPLE
Class Y
After 1 Year $ 4
After 3 Years $13
After 5 Years $23
After 10 Years $52
EVERGREEN TREASURY MONEY MARKET FUND
ANNUAL OPERATING
EXPENSES
Management Fees 0.35%
12b-1 Fees --
Other Expenses 0.07%
Total 0.42%
EXAMPLE
Class Y
After 1 Year $ 4
After 3 Years $13
After 5 Years $24
After 10 Years $53
(1) First Union National Bank ("FUNB") has agreed to reimburse each Fund to the
extent that each Fund's aggregate annual operating expenses exceed 1.00% of
average net assets for any fiscal year. FUNB currently expects to continue
such expense limitations through January 31, 1998, but may, however, cease
these voluntary expense reimbursements at any time. For the fiscal year
ended August 31, 1997, FUNB reimbursed management fees of the Funds. Absent
such reimbursements, each Fund would have paid the expenses equal to the
following percentages of net assets:
<TABLE>
<CAPTION>
MANAGEMENT TOTAL FUND OPERATING
FEES EXPENSES (WITHOUT
(WITHOUT WAIVERS AND/OR
FUND WAIVER) REIMBURSEMENT)
<S> <C> <C>
Evergreen Money Market Fund
Class Y............................................................................ 0.46% 0.54%
Evergreen Tax Exempt Money Market Fund
Class Y............................................................................ 0.50% 0.56%
Evergreen Pennsylvania Tax Free Money Market Fund
Class Y............................................................................ 0.40% 0.43%
</TABLE>
FINANCIAL HIGHLIGHTS
The "Financial Highlights" section is replaced entirely by the following:
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the ten most recent fiscal years ended August 31,
1997 or the life of the fund if shorter for EVERGREEN MONEY MARKET FUND and
EVERGREEN TAX EXEMPT MONEY MARKET FUND has been audited by Price Waterhouse LLP,
each Fund's independent accountants, and for EVERGREEN TREASURY MONEY MARKET
FUND and EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND has been audited by
KPMG Peat Marwick LLP, each Fund's independent auditors. A report of Price
Waterhouse LLP or KPMG Peat Marwick LLP, as the case may be, on the audited
information with respect to each Fund is incorporated by reference in the Fund's
SAI. The following information for each Fund should be read in conjunction with
the financial statements and related notes which are incorporated by reference
in the Fund's SAI.
Further information about each Fund's performance is contained in the
Funds' Annual Report to shareholders, which may be obtained without charge.
EVERGREEN MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
NOVEMBER 2, 1987
TEN MONTHS (COMMENCEMENT OF
ENDED CLASS
YEAR ENDED AUGUST 31, AUGUST 31, 1994 YEAR ENDED OCTOBER 31, OPERATIONS) TO
1997 1996 1995 (B) 1993 1992 1991 1990 1989 OCTOBER 31, 1988
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of
year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income............ 0.05 0.05 0.05 0.03 0.03 0.04 0.07 0.08 0.09 0.07
Less distributions to
shareholders from net
investment income.............. (0.05) (0.05) (0.05) (0.03) (0.03) (0.04) (0.07) (0.08) (0.09) (0.07)
Net asset value end of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN....................... 5.27% 5.36% 5.38% 2.92% 3.23% 4.23% 6.73% 8.40% 9.39% 7.37%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses................... 0.48% 0.45% 0.53% 0.32%(a) 0.39% 0.36% 0.30% 0.35% 0.38% 0.43%(a)
Total expenses excluding
indirectly paid expenses....... 0.48% -- -- -- -- -- -- -- -- --
Total expenses excluding waivers
and/or reimbursements.......... 0.54% 0.59% 0.73% 0.71%(a) 0.71% 0.72% 0.70% 0.69% 0.75% 0.93%(a)
Net investment income............ 5.13% 5.16% 5.26% 3.46%(a) 3.19% 4.18% 6.53% 8.08% 9.42% 7.26%(a)
Net assets end of year
(millions)....................... $ 635 $ 671 $ 283 $ 273 $ 299 $ 358 $ 438 $ 458 $ 408 $ 161
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from October 31 to August 31.
EVERGREEN TAX EXEMPT MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
NOVEMBER 2, 1988
(COMMENCEMENT OF
YEAR ENDED AUGUST 31, CLASS OPERATIONS) TO
1997 1996 1995 1994 1993 1992 1991 1990 AUGUST 31, 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning
of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment
income................. 0.03 0.03 0.04 0.02 0.03 0.04 0.05 0.06 0.05
Less distributions to
shareholders from net
investment income.... (0.03) (0.03) (0.04) (0.02) (0.03) (0.04) (0.05) (0.06) (0.05)
Net asset value end of
year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN............. 3.44% 3.53% 3.59% 2.50% 2.61% 3.73% 5.46% 6.15% 5.51%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net
assets:
Total expenses......... 0.53% 0.49% 0.50% 0.34% 0.34% 0.32% 0.28% 0.31% 0.24%(a)
Total expenses
excluding indirectly
paid expenses........ 0.53% -- -- -- -- -- -- -- --
Total expenses
excluding waivers
and/or
reimbursements....... 0.55% 0.60% 0.63% 0.64% 0.63% 0.63% 0.66% 0.71% 0.79%(a)
Net investment
income............... 3.37% 3.44% 3.53% 2.47% 2.58% 3.72% 5.23% 5.94% 6.77%(a)
Net assets end of year
(millions)............. $ 378 $ 617 $ 421 $ 402 $ 401 $ 417 $ 510 $ 311 $ 109
</TABLE>
(a) Annualized.
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31, FEBRUARY 29, FEBRUARY 28,
1997 1996 (B) 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of
year........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income.......... 0.03 0.01 0.03 0.03 0.02 0.03
Less distributions to
shareholders from net
investment income............ (0.03) (0.01) (0.03) (0.03) (0.02) (0.03)
Net asset value end of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN..................... 3.15% 1.51% 3.55% 2.81% 2.10% 2.68%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses................. 0.50% 0.50%(a) 0.37% 0.33% 0.47% 0.35%
Total expenses excluding
indirectly paid expenses..... 0.50% -- -- -- -- --
Total expenses excluding
waivers and/or
reimbursements............... 0.60% 0.66%(a) 0.73% 1.05% 1.26% 1.07%
Net investment income.......... 3.10% 2.92%(a) 3.42% 3.09% 2.10% 2.62%
Net assets end of year
(millions)..................... $ 32 $ 48 $ 83 $ 44 $ 14 $ 16
<CAPTION>
AUGUST 15, 1991
(COMMENCEMENT OF
CLASS OPERATIONS) TO
FEBRUARY 29, 1992
<S> <C>
PER SHARE DATA:
Net asset value beginning of
year........................... $ 1.00
Net investment income.......... 0.02
Less distributions to
shareholders from net
investment income............ (0.02)
Net asset value end of year...... $ 1.00
TOTAL RETURN..................... 2.20%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses................. 0.19%(a)
Total expenses excluding
indirectly paid expenses..... --
Total expenses excluding
waivers and/or
reimbursements............... 0.77%(a)
Net investment income.......... 3.90%(a)
Net assets end of year
(millions)..................... $ 21
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from February 28 to August 31.
EVERGREEN TREASURY MONEY MARKET FUND -- CLASS Y SHARES
<TABLE>
<CAPTION>
CLASS Y SHARES
EIGHT MONTHS MARCH 6, 1991
YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF
AUGUST 31, AUGUST 31, DECEMBER 31, CLASS OPERATIONS) TO
1997 1996 1995 (B) 1994 1993 1992 DECEMBER 31, 1991
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value beginning of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income................ 0.05 0.05 0.04 0.04 0.03 0.04 0.05
Less distributions to shareholders
from net investment income......... (0.05) (0.05) (0.04) (0.04) (0.03) (0.04) (0.05)
Net asset value end of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN........................... 5.14% 5.29% 3.78% 4.06% 3.04% 3.67% 4.66%
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Total expenses....................... 0.42% 0.39% 0.33%(a) 0.20% 0.18% 0.17% 0.20%(a)
Total expenses excluding indirectly
paid expenses...................... 0.42% -- -- -- -- -- --
Total expenses excluding waivers
and/or reimbursements.............. 0.43% 0.47% 0.49%(a) 0.48% 0.52% 0.52% 0.52%(a)
Net investment income................ 5.02% 5.12% 5.60%(a) 3.78% 3.00% 3.61% 5.53%(a)
Net assets end of year (millions)...... $ 547 $ 760 $ 277 $ 163 $ 366 $ 286 $ 265
</TABLE>
(a) Annualized.
(b) The Fund changed its fiscal year end from December 31 to August 31.
NAME CHANGES
Effective January 12, 1998, Evergreen Tax Exempt Money Market Fund will be
known as Evergreen Municipal Money Market Fund and Evergreen Pennsylvania Tax
Free Money Market Fund will be known as Evergreen Pennsylvania Municipal Money
Market Fund.
The name of the distributor of the Funds has been changed to Evergreen
Distributor, Inc.; the name of the administrator for certain of the Funds has
been changed to Evergreen Investment Services, Inc.; and the name of the
transfer agent for the Funds has been changed to Evergreen Service Company.
INVESTMENT OBJECTIVES AND POLICIES
Effective January 9, 1998, each of EVERGREEN TAX EXEMPT MONEY MARKET FUND
AND EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND adopted a nonfundamental
policy permitting it, under normal circumstances, to invest its assets so that
at least 80% of its annual interest income is exempt from federal income tax
other than the federal alternative minimum tax ("AMT").
INVESTMENT ADVISERS
Disclosure regarding the Funds' subadministrator is hereby deleted.
EXCHANGE PRIVILEGES
You may exchange shares of a Fund for shares of another Evergreen fund
identified above by calling or writing to Evergreen Service Company or by using
the Evergreen Express Line. If the shares being tendered for exchange are still
subject to a contingent deferred sales charge or are eligible for conversion in
a specified time, such remaining charge or remaining time will carry over to the
shares being acquired in the exchange transaction.
PERFORMANCE INFORMATION
The Funds may quote their "total return" or "yield" for specified periods
in advertisements, reports, or other communications to shareholders. Total
return and yield are computed separately for each Class of shares. Performance
data for one or more classes may be included in any advertisement or sales
literature using performance data of a Fund.
January 1, 1998
<PAGE>
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION OF
EVERGREEN MONEY MARKET FUND, EVERGREEN TAX EXEMPT MONEY MARKET FUND,
EVERGREEN PENNSYLVANIA TAX FREE MONEY MARKET FUND AND EVERGREEN TREASURY MONEY
MARKET FUND
The Statement of Additional Information of each of the Funds is hereby
supplemented as follows:
EXPENSES
The tables below list the total dollar amounts paid by each Fund for
expenses incurred for the periods specified.
<TABLE>
<CAPTION>
Aggregate Dollar
Aggregate Amount of
Dollar Underwriting
Amount of Commissions
Advisory Class A Class B Class C Class K Underwriting Retained by EIS or
Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees Commissions EDI
======================== ======== ========== ========== ========== ========== ============ ==================
<S> <C> <C> <C> <C> <C> <C> <C>
1997 FUND EXPENSES
Money Mkt (1) $13,092,396 $6,232,581 $122,419 $4,266 $136 N/A N/A
Tax Exempt Money Mkt (1) $5,695,367 $1,988,796 N/A N/A N/A N/A N/A
PA Tax Free Money Mkt (1) $275,516 $90,259* N/A N/A N/A N/A N/A
Treasury Money Mkt (1) $10,831,288 $7,263,329 N/A N/A N/A N/A N/A
1996 FUND EXPENSES
Money Mkt (1) $8,346,173 $3,938,802 $68,985 $0 $0 N/A N/A
Tax Exempt Money Mkt (1) $5,540,924 $1,898,665 N/A N/A N/A N/A N/A
PA Tax Free Money Mkt (2) $148,591 $24,476 N/A N/A N/A N/A N/A
Treasury Money Mkt (1) $8,857,503 $6,381,827 N/A N/A N/A N/A N/A
1995 FUND EXPENSES
Money Mkt (4) $1,831,518 $280,287 $9,349 N/A N/A N/A N/A
Tax Exempt Money Mkt (4) $2,329,035 $240,973 N/A N/A N/A N/A N/A
PA Tax Free Money Mkt (3) $85,049 N/A N/A N/A N/A N/A
Treasury Money Mkt (4) $2,814,251 $1,896,720 N/A N/A N/A N/A N/A
========================= ========== ========== ========== ========== ========== ============= ===================
</TABLE>
(1) For fiscal year ended August 31 of each year.
(2) For fiscal period March 1 to August 31, 1996.
(3) For fiscal year ended February 28, 1995.
(4) For fiscal period January 1 to August 31, 1995.
* Of this amount, $61,039 was waived by the Distributor.
In accordance with voluntary expense limitations in effect during the
fiscal year or period ended August 31, 1997, Evergreen Asset or CMG voluntarily
reimbursed or waived advisory fees, as follows:
Money Market $1,482,584
Tax Exempt Money Market 183,559
PA Tax Free Money Market 62,049
Treasury Money Market 132,244
BROKERAGE COMMISSIONS
The Funds paid no brokerage commissions during each fiscal year or period
ended August 31, 1997, 1996 and 1995.
YIELD CALCULATIONS
Each Fund may quote a "Current Yield" or "Effective Yield" from time to
time. The Current Yield is an annualized yield based on the actual total return
for a seven-day period. The Effective Yield is an annualized yield based on a
compounding of the Current Yield. These yields are each computed by first
determining the "Net Change in Account Value" for a hypothetical account having
a share balance of one share at the beginning of a seven-day period ("Beginning
Account Value"), excluding capital changes. The Net Change in Account Value will
generally equal the total dividends declared with respect to the account.
The yields are then computed as follows:
Current Yield = Beginning Account Value x 365/7
Effective Yield = (1 + Total Dividend for 7 days) 365/7-1 Tax Equivalent Yield =
Effective Yield
- ----------------------
1 - Fed Tax rate + [state Tax Rate - (state Tax Rate x Fed Tax Rate]
Yield fluctuations may reflect changes in a Fund's net investment income,
and portfolio changes resulting from net purchases or net redemptions of the
Fund's shares may affect the yield. Accordingly, a Fund's yield may vary from
day to day, and the yield stated for a particular past period is not necessarily
representative of its future yield. Since the Funds use the amortized cost
method of net asset value computation, it does not anticipate any change in
yield resulting from any unrealized gains or losses or unrealized appreciation
or depreciation not reflected in the yield computation, or change in net asset
value during the period used for computing yield. If any of these conditions
should occur, yield quotations would be suspended. A Fund's yield is not
guaranteed, and the principal is not insured.
Yield information is useful in reviewing a Fund's performance, but because
yields fluctuate, such information cannot necessarily be used to compare an
investment in a Fund's shares with bank deposits, savings accounts and similar
investment alternatives which often provide an agreed or guaranteed fixed yield
for a stated period of time. Shareholders should remember that yield is a
function of the kind and quality of the instruments in the Funds' investment
portfolios, portfolio maturity, operating expenses and market conditions.
It should be recognized that in periods of declining interest rates the
yields will tend to be somewhat higher than prevailing market rates, and in
periods of rising interest rates the yields will tend to be somewhat lower.
Also, when interest rates are falling, the inflow of net new money to a Fund
from the continuous sale of its shares will likely be invested in instruments
producing lower yields than the balance of the Fund's investments, thereby
reducing the current yield of the Fund. In periods of rising interest rates, the
opposite can be expected to occur.
The current yield and effective yield of each Fund (and for Evergreen Tax
Exempt Money Market Fund, and Evergreen Pennsylvania Tax Free Money Market Fund,
the tax equivalent yield) for the seven-day period ended August 31, 1997 for
each class of shares offered by the Funds is set forth in the table below. The
table assumes a federal tax rate of 36% for Evergreen Tax Exempt Money Market
Fund, and a combined federal and state tax rate for Evergreen Pennsylvania Tax
Free Money Market Fund of 37.8%.
Current Effective Tax Equivalent
Yield Yield Yield
Money Market
Class A 4.91% 5.03% N/A
Class B 4.20% 4.29% N/A
Class C 4.20% 4.29% N/A
Class K 4.90% 5.02% N/A
Class Y 5.20% 5.34% N/A
Tax Exempt Money Market
Class A 2.89% 2.93% 4.52%
Class Y 3.19% 3.24% 4.98%
Treasury Money Market
Class A 4.87% 4.99% N/A
Class Y 5.18% 5.31% N/A
Pennsylvania Tax Free Money Market
Class A 2.89% 2.93% 4.65%
Class Y 2.99% 3.03% 4.81%
TRUSTEE COMPENSATION
Listed below is the compensation paid to Trustees for the fiscal year ended
August 31, 1997.
Compensation Compensation
From From Registration
Compensation Registrant And Fund Complex
Laurence B. Ashkin $ 5,747.00 $ 56,200.00
Charles A. Austin III* $ 0.00 $ 48,200.00
K. Dun Gifford* $ 0.00 $ 39,600.00
James S. Howell $ 7,368.00 $ 89,229.00
Leroy Keith Jr.* $ 0.00 $ 45,200.00
Gerald M. McDonnell $ 5,831.00 $ 81,001.00
Thomas L. McVerry $ 6,498.00 $ 81,468.00
William Walt Pettit $ 6,002.00 $ 79,009.00
David M. Richardson* $ 0.00 $ 48,200.00
Russell A. Salton III $ 6,072.00 $ 81,601.00
Michael S. Scofield $ 5,572.00 $ 77,501.00
Richard J. Shima $ 4,180.00 $ 58,667.00
* Not a Trustee of the Trust for the relevant fiscal period.
PRINCIPAL HOLDERS OF FUND SHARES
As of the date of this SAI, the officers and Trustees of the Trust owned as
a group less than 1% of the outstanding Class A, Class B, Class C, Class K or
Class Y shares of any Fund as applicable.
Set forth below is information with respect to each person who, to each
Fund's knowledge, owned beneficially or of record more than 5% of a class of a
Fund's outstanding shares as of November 30, 1997.
<TABLE>
<CAPTION>
Money Market
Class A Class B Class C
- ------------ ------- -------
<S> <C> <C> <C> <C>
FUNB 73.61% NONE Michael J. Grimaldi 17.48%
Attn: Cap Finance GL 7 Edgeworth Pl.
230 S. Tryon St. New Brunswick, NJ 08901
Charlotte, NC
First Union Brokerage 10.17% State Street Bank & Trust 9.42%
Services Co. Cust.
Money Mkt Omnibus Acct Rollover IRA FBO
CP12-NC1167 Mark S. Matlock MD
301 S. College St. 2817 McClelland Blvd. #125
Charlotte, NC 28115 Joplin, MO 64804-1630
FUNB 6.33% Robert Samuel Klepper 5.29%
Trust Accounts Susan Leslie Klepper Comm
Attn: Ginney Batten Property
CMG-115102 House Account
401 S. Tryon St., 3rd Floor 424 Keel Lane
Charlotte, MC 282-1911 Redwood Shoes, CA 94065
Money Market
Class K Class Y
- ------------ -------
Prudential Securities FBO 43.59% First Union National Bank 40.86%
Charles R Fuchs & Trust Accounts
Phyllis A. Fuchs Jt Ten Attn: Ginny Batten CMG-1151-2
22 Winding Way 401 S. Tryon St. 3rd Floor
Wayne, NJ 07470-5957 Charlotte, NC 28202-1911
Prudential Securities FBO 38.63% Pitcairn Trust Company 8.23%
Mr. Marlene Silver Ex One Pitcairn Place
Est Elaine B. Ames Jenkintown, PA 19046
6038 Sweetbriar Cv
Memphis, TN 38120-2514
Interstate/Johnson Lane 10.69%
FBO 329-04563-12
Interstate Tower
PO Box 1220
Charlotte, NC 28201-1220
Wexford Clearing Services Corp FBO 7.09%
Marian V. Dingman
9001 Neill Lake Road
Eden Prairie, MN 55347-2046
Tax Exempt Money Market
Class A Class Y
- ----------------------- -------
FUNB 80.61% Evergreen Tax-Exempt Money Market 13.31%
Attn: Cap Finance GL "Y" Share Fund Cash A/C
230 S. Tryon St. C/O FUNB for Customers
Charlotte, NC 28202-3215 One First Union Center
301 South College St.
Charlotte, NC 28288-0601
First Union Brokerage Services 10.71%
Money Market Omnibus Account
CP13-NC1167
301 S. College St.
Charlotte, NC 28115
Treasury Money Market
Class A Class Y
- --------------------- -------
First Union National Bank 20.45% First Union National Bank 85.32%
Trust Accounts Trust Accounts
Attn: Ginny Batten Attn: Ginny Batten CMG-1151
11th Floor CMG-1151 301 S. Tryon St., 3rd Floor
301 S. Tryon St. Charlotte, NC 28288-0002
Charlotte, NC 28202-1910
FUNB 67.59% Evergreen Money Market "Y" Fund 7.36%
Attn: Cap Finance GL Reinvest A/C C/O FUNB for Customers
230 S. Tryon St. One First Union Center
Charlotte, NC 28202-1164 301 South College St.
Charlotte, NC 28288-0601
Pennsylvania Tax Free Money Market
Class A Class Y
- ---------------------------------- -------
FUNB 90.64% First Union National Bank 31.79%
Attn: Cap Finance GL Trust Accounts
230 S. Tryon St. Attn: Ginny Batten CMG-1151-2
Charlotte, NC 28202-3215 401 S. Tryon St., 3rd Floor
Charlotte, NC 28202-1911
First Union Brokerage Services 8.76% Johnathan B. Detwiler 11.90%
Money Market Omnibus Account PO Box 69
CP13-NC1167 Phoenixville, PA 19460-0069
301 S. College St.
Charlotte, NC 28115
Agnes C. Kim 7.47%
760 Conshohocken State Rd.
Gladuyne, PA 19035-1416
Dalck Feith & Rose Feith Jt Ten 6.71%
8134 High School Road
Elkins Park, PA 19027-2453
First Union Brokerage Services 5.54%
Money Market Omnibus Account
CP13-NC1167
301 S. College Street
Charlotte, NC 28115
</TABLE>
FINANCIAL STATEMENTS
The audited financial statements and the reports thereon are hereby
incorporated by reference to each Fund's Annual Report, a copy of which may be
obtained without charge from Evergreen Service Company, Box 2121, Boston,
Massachusetts 02106-2121.
January 1, 1998
<PAGE>
EVERGREEN MUNICIPAL TRUST
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
Item 24(a). Financial Statements
EVERGREEN TAX EXEMPT MONEY MARKET FUND
The following financial statements are incorporated by reference to the
Registrant's Annual Report, as filed with the Securities and Exchange
Commission.
Class A Financial Highlights For each of the years in the
two-year period ended
August 31, 1997 and for the
period from January 5, 1995
(Commencement of Operations)
to August 31, 1995
Class Y Financial Highlights For each of the years in the
eight-year period ended
August 31, 1997 and for the
period from November 2, 1988
(Commencement of Operations)
to August 31, 1989
Schedule of Investments August 31, 1997
Statement of Assets and Liabilities August 31, 1997
Statement of Operations Year ended August 31, 1997
Statement of Changes in Net Assets For each of the years in the
two-year period ended
August 31, 1997
Notes to Financial Statements
Independent Auditors' Report October 14, 1997
Item 24(b). Exhibits
Exhibit
Number Description Location
- ------ ----------- --------
1(A) Amended and Restated Declaration of Trust (2)
1(B) Form of Instrument providing for the Establishment
and Designation of Classes (2)
1(C) Form Amendment to Declaration of Trust and
Certification of Designation (2)
2 By-Laws (2)
3 None
4 Instruments Defining Rights of Shareholders (2)
5(A) Investment Advisory Agreement (2)
5(B) Investment Subadvisory Agreement (2)
6(A) Distribution Agreement between the Registrant
and Evergreen Distributor, Inc. (2)
6(B) Dealer Agreement (2)
7 Form of Deferred Compensation Plan (2)
8 Custodian Agreement (2)
9(A) Form of Administrator Agreement between Registrant
and Evergreen Investment Services, Inc. ("EIS") (2)
9(B) Sub-Administrator Agreement between EIS and BISYS
Fund (2)
10 Opinion and Consent of Counsel (2)
11 Consent of Price Waterhouse LLP (1)
12 Not applicable
13 Not applicable
14 Not applicable
15 Rule 12b-1 Distribution Plans (2)
16 Schedules for computation of performance quotations (1)
17 Financial Data Schedules (1)
18 Not applicable
19 Powers of Attorney (2)
- --------------------------
(1) Filed herewith.
(2) Incorporated by reference to Registrant's previous filings on Form N-1A.
Item 25. Persons Controlled by or Under Common Control with Registrant
Not Applicable
Item 26. Number of Holders of Securities (as of November 30, 1997)
Title of Class Number of Record Holders
-------------- ------------------------
Evergreen Tax Exempt Money
Market Fund
Class A 855
Class Y 6,456
Item 27. Indemnification
Provisions for the indemnification of Registrant's Trustees and
officers are contained in Registrant's Declaration of Trust.
Provisions for the indemnification of the Registrant's Investment Advisers
are contained in their Investment Advisory and Management Agreements.
Provisions for the indemnification of Evergreen Distributor, Inc., the
Registrant's principal underwriter, are contained in Item 4 of the
Distribution Agreement.
Item 28. Business or Other Connections of Investment Adviser
The Directors and principal executive officers of First Union National Bank
are:
Edward E. Crutchfield, Jr. Chairman and Chief Executive Officer,
First Union Corporation; Chief Executive
Officer and Chairman, First Union National
Bank
Anthony P. Terracciano President, First Union Corporation; President
First Union National Bank
John R. Georgius Vice Chairman, First Union Corporation;
Vice Chairman, First Union National Bank
Marion A. Cowell, Jr. Executive Vice President, Secretary &
General Counsel, First Union Corporation;
Secretary and Executive Vice President,
First Union National Bank
Robert T. Atwood Executive Vice President and Chief Financial
Officer, First Union Corporation; Chief
Financial Officer and Executive Vice
President
All of the above persons are located at the following address: First Union
National Bank, One First Union Center, Charlotte, NC 28288.
The information required by this item with respect to Evergreen Asset
Management Corp. is incorporated by reference to the Form ADV (File No.
801-46522) of Evergreen Asset Management Corp.
Item 29. Principal Underwriters
The Directors and principal executive officers of Evergreen Distributor,
Inc. are:
Lynn C. Mangum Director, Chairman and Chief Executive
Officer
Robert J. McMullan Director, Executive Vice President and
Treasurer
J. David Huber President
Kevin J. Dell Vice President, General Counsel and Secretary
All of the above persons are located at the following address: Evergreen
Distributor, Inc., 125 West 55th Street, New York, New York 10019.
Evergreen Distributor, Inc. acts as principal underwriter for each
registered investment company or series thereof that is a part of the Evergreen
Keystone "fund complex" as such term is defined in Item 22(a) of Schedule 14A
under the Securities Exchange Act of 1934.
Item 30. Location of Accounts and Records
All accounts and records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and the Rules 31a-1 through 31a-3 promulgated
thereunder are maintained at one of the following locations:
Evergreen Investment Services, Inc., Evergreen Service Company and Keystone
Investment Management Company, all located at 200 Berkeley Street, Boston,
Massachusetts 02110
First Union National Bank, One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28288
Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase,
New York 10577
Iron Mountain, 3431 Sharp Slot Road, Swansea, Massachusetts 02777
State Street Bank and Trust Company, 2 Heritage Drive, North Quincy,
Massachusetts 02171
Item 31. Management Services
Not Applicable
Item 32. Undertakings.
Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Columbus, and State of Ohio, on the 31st day of
December, 1997.
EVERGREEN MUNICIPAL TRUST
/s/ William J. Tomko
---------------------------
Name: William J. Tomko
Title: President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on the 31st day of December, 1997.
/s/William J. Tomko /s/ Laurence B. Ashkin*
- ------------------------- -----------------------------
William J. Tomko Laurence B. Ashkin
President amd Treasurer (Principal Trustee
Financial and Accounting Officer)
/s/ Russell A. Salton, III MD* /s/ Thomas L. McVerry*
- ------------------------- ------------------------------
Russell A. Salton, III MD Thomas L. McVerry
Trustee Trustee
/s/ William Walt Pettit* /s/ Michael S. Scofield*
- ---------------------------- -------------------------
William Walt Pettit Michael S. Scofield
Trustee Trustee
/s/ James S. Howell* /s/ Gerald M. McDonnell*
- ----------------------------- ------------------------
James S. Howell Gerald M. McDonell
Trustee Trustee
/s/ Foster Bam*
- -------------------------
Foster Bam
Trustee
*By: /s/ Martin J. Wolin
- -------------------------------
Martin J. Wolin
Attorney-in-Fact
*Martin J. Wolin, by signing his name hereto, does hereby sign this
document on behalf of each of the above-named individuals pursuant to powers of
attorney duly executed by such persons.
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Exhibit
- -------------- -------
11 Consent of Price Waterhouse LLP
16 Performance Calculations
17 Financial Data Schedules
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectuses and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 25 to the registration statement on Form N-1A (the "Registration
Statement") of our report dated October 14, 1997, relating to the financial
statements and financial highlights appearing in the August 31, 1997 Annual
Report to Shareholders of Evergreen Tax Exempt Money Market Fund, which is also
incorporated by reference into the Registration Statement. We also consent to
the references to us under the heading "Financial Highlights" in the
Prospectuses and under the heading "Independent Auditors" and "Financial
Statements" in such Statement of Additional Information.
/s/Price Waterhouse LLP
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
December 29, 1997
<TABLE>
<CAPTION>
$952.50
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Aug-97 BLANK 1,418.33 0.00% 952.50 -4.75% -4.75%
31-Jul-97 1 MO 1,414.69 0.26% 0.26% 954.95 -4.50% -4.50%
31-May-97 QTR 1,407.21 0.79% 0.79% 960.03 -4.00% -4.00%
31-Dec-96 YTD 1,389.34 2.09% 2.09% 972.37 -2.76% -2.76%
31-Aug-96 1 1,375.33 3.13% 3.13% 982.28 -1.77% -1.77%
31-Aug-94 3 1,288.58 10.07% 3.25% 1,048.41 4.84% 1.59%
31-Aug-92 5 1,225.25 15.76% 2.97% 1,102.59 10.26% 1.97%
31-Aug-87 10 #N/A #N/A #N/A #N/A #N/A #N/A
02-Nov-87 INCEPT. 1,000.00 41.83% 4.03% 1,350.96 35.10% 3.46%
</TABLE>
INCEPTION FACTOR: 8.8356
<TABLE>
<CAPTION>
Y
TIME ACCOUNT Y AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Aug-97 BLANK 1,429.47 0.00%
31-Jul-97 1 MO 1,425.43 0.28% 0.28%
31-May-97 QTR 1,417.19 0.87% 0.87%
31-Dec-96 YTD 1,397.45 2.29% 2.29%
31-Aug-96 1 1,382.00 3.44% 3.44%
31-Aug-94 3 1,288.58 10.93% 3.52%
31-Aug-92 5 1,225.25 16.67% 3.13%
31-Aug-87 10 #N/A #N/A #N/A
02-Nov-87 INCEPT. 1,000.00 42.95% 4.13%
</TABLE>
INCEPTION FACTOR: 8.8356
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN TAX EXEMPT MONEY MARKET FUND CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> SEP-01-1996
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 1,040,038,783
<INVESTMENTS-AT-VALUE> 1,040,038,783
<RECEIVABLES> 20,063,161
<ASSETS-OTHER> 2,748,045
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,062,849,989
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,423,775
<TOTAL-LIABILITIES> 18,423,775
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 666,899,215
<SHARES-COMMON-STOCK> 666,866,419
<SHARES-COMMON-PRIOR> 660,634,719
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (153,383)
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 666,745,832
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 26,523,576
<OTHER-INCOME> 0
<EXPENSES-NET> (5,623,217)
<NET-INVESTMENT-INCOME> 20,900,359
<REALIZED-GAINS-CURRENT> (1,864)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 20,898,495
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (20,900,359)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,491,746,340
<NUMBER-OF-SHARES-REDEEMED> (1,488,596,189)
<SHARES-REINVESTED> 3,081,549
<NET-CHANGE-IN-ASSETS> 6,229,836
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (134,098)
<GROSS-ADVISORY-FEES> (3,360,267)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (5,731,517)
<AVERAGE-NET-ASSETS> 675,954,663
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.03)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1
<EXPENSE-RATIO> 0.83
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN TAX EXEMPT MONEY MARKET FUND CLASS Y
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] AUG-31-1997
[PERIOD-START] SEP-01-1996
[PERIOD-END] AUG-31-1997
[INVESTMENTS-AT-COST] 1,040,038,783
[INVESTMENTS-AT-VALUE] 1,040,038,783
[RECEIVABLES] 20,063,161
[ASSETS-OTHER] 2,748,045
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,062,849,989
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 18,423,775
[TOTAL-LIABILITIES] 18,423,775
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 377,787,786
[SHARES-COMMON-STOCK] 377,781,716
[SHARES-COMMON-PRIOR] 616,933,587
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (107,404)
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 377,680,382
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 18,638,938
[OTHER-INCOME] 0
[EXPENSES-NET] (2,516,065)
[NET-INVESTMENT-INCOME] 16,122,873
[REALIZED-GAINS-CURRENT] (1,043)
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 16,121,830
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (16,122,873)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,112,629,457
[NUMBER-OF-SHARES-REDEEMED] (1,363,487,668)
[SHARES-REINVESTED] 11,706,340
[NET-CHANGE-IN-ASSETS] (239,152,845)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (123,782)
[GROSS-ADVISORY-FEES] (2,335,100)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (2,591,324)
[AVERAGE-NET-ASSETS] 478,571,345
[PER-SHARE-NAV-BEGIN] 1
[PER-SHARE-NII] 0.03
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] (0.03)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1
[EXPENSE-RATIO] 0.53
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
