EVERGREEN EQUITY TRUST
Supplement dated December 19, 1997
to the Prospectus dated November 26, 1996 as supplemented
for the Evergreen U.S. Real Estate Equity Fund
and to the Prospectus dated March 3, 1997 as supplemented
for the Evergreen Global Real Estate Equity Fund
New Investment Advisory and Administrative Relationships Proposed
On December 17, 1997 Evergreen Asset Management Corp.
("Evergreen") entered into a definitive agreement (the "Agreement") with Samuel
A. Lieber and Alpine Management & Research, LLC ("Alpine") pursuant to which
Alpine, which is controlled by Mr. Lieber, will acquire from Evergreen the
portion of its business as investment adviser and administrator relating to the
Evergreen U.S. Real Estate Equity Fund and the Evergreen Global Real Estate
Equity Fund (the "Funds"), both of which are series of the Evergreen Equity
Trust (the "Trust"). Mr. Lieber has been the portfolio manager for the Funds
since each Fund's inception and will continue in that capacity following
completion of the proposed transactions.
The Agreement contemplates that, subject to receipt of Board
and shareholder approvals and the satisfaction of certain other conditions, on
January 12, 1998 or as soon thereafter as practical (the "Closing Date"), (i)
each Fund will enter into a new advisory contract with Alpine on the same terms
as its current advisory contract with Evergreen, (ii) the Trust and the Funds
will be renamed the Alpine Investment Trust, the Alpine U.S. Real Estate Equity
Fund and the Alpine Global Real Estate Equity Fund, respectively, and (iii) a
new board of Trustees will be elected by shareholders of the Funds. The
Agreement also contemplates that on or before March 20, 1998, Alpine will assume
responsibility for providing, or causing third parties to provide, to the Funds
the administrative services that are currently provided by Evergreen and its
affiliates.
The Board of Trustees of the Trust has approved the proposed
transactions subject to receipt of necessary shareholder approvals. The Board
has called a special meeting of shareholders of the Funds for January 12, 1998
to vote to approve or disapprove the appointment of Alpine as the investment
adviser, to elect the new Trustees, and to approve such other matters as may be
necessary or appropriate to effect the transactions contemplated by the
Agreement. Proxy materials relating to these proposals will be sent to
shareholders of record as of December 17, 1997.
