<PAGE> 1
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Schedules of Portfolio Investments
PAGE 8
Statements of Assets and Liabilities
PAGE 10
Statements of Operations
PAGE 11
Statements of Changes in Net Assets
PAGE 12
Notes to Financial Statements
PAGE 13
Financial Highlights
PAGE 21
- --------------------------------------------------------------------------------
-1-
<PAGE> 2
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) MSCI GPR Y
<S> <C> <C> <C>
2/1/89 10000 10000 10000
9457.16 9901.26 10010
10/31/89 9303.55 10302.10 9800.00
6966.55 8512.84 9579.66
10/31/90 6774.81 8268.63 8633.90
7626.28 8708.65 9874.57
10/31/91 7657.26 8735.16 9111.86
6788.26 7958.99 8827.12
10/31/92 6606.37 8129.01 9315.26
8130.81 9763.09 12030.16
10/31/93 10141.84 11314.70 14600.51
10262.96 11988.71 14683.99
10/31/94 10686.50 12252.38 14209.97
9656.00 11714.10 12058.69
10/31/95 10426.06 11963.90 12833.82
12566.05 13390.49 14528.01
10/31/96 13359.66 14248.16 13631.08
13542.84 14141.61 12622.38
10/31/97 11566.42 13351.82 14385.96
4/30/98 10884.41 12754.67 16914.87
</TABLE>
Value of a $10,000 Investment
Past performance is not predictive of future results. Investment return and
principal value of the Alpine International Real Estate Fund will fluctuate, so
that the shares, when redeemed, may be worth more or less than their original
cost. The returns set forth reflect the waiver of certain advisory or
administrative fees. Without the waiver of fees, total return would have been
lower.
Performance of Investor A, B and C shares for the period prior to their
inceptions on 2/10/95, 2/8/95 and 2/9/95, respectively, represents performance
for Y shares. A, B and C shares are subject to distribution and service fees,
which had they been included in the prior period, performance would have been
lower.
The GPR-Global Real Estate Securities Index and the MSCI Global Real Estate
Index are global market capitalization weighted performance indexes of listed
property and real estate securities.
* Prior to 4/30/94, the performance numbers do not reflect dividends.
International investing involves increased risk and volatility.
<TABLE>
<CAPTION>
COMPARATIVE TOTAL RETURNS AS OF 4/30/98
- ------------------------------------------------------------------------------------
SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GPR Global Real Estate Securities Index (9.81)% 2.89% 5.49% 2.67%
MSCI Global Real Estate Index (19.63)% 4.07% 6.01% 0.92%
- ------------------------------------------------------------------------------------
Alpine Class A (4.75%)* 27.33% 9.94% 5.89% 5.23%
Alpine Class B (5.00%)* 27.71% 10.14% 6.14% 5.53%
Alpine Class C (1.00%)* 31.80% 10.98% 6.46% 5.54%
Alpine Class Y 34.01% 11.94% 7.05% 5.85%
</TABLE>
* Represents maximum sales load.
- --------------------------------------------------------------------------------
-2-
<PAGE> 3
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the Alpine International Real Estate Equity Fund's
first report to shareholders as part of the Alpine family of real estate funds.
This semi-annual report will continue the Q&A report format, which we used at
Evergreen, to discuss not only the Fund's performance but also the issues and
trends that are current and germane to both real estate securities and
international investing.
Q. HOW DID THE ALPINE INTERNATIONAL REAL ESTATE FUND PERFORM DURING THE SIX
MONTHS ENDING APRIL 30, 1998?
A. We are pleased to report to shareholders that your Fund's out-performance of
it's benchmark indices last year, has continued during the first six months
of the Fund's fiscal year. The Alpine International Real Estate Equity Fund's
17.58% (Class Y) total return out-performed both the Morgan Stanley Capital
International (MSCI) Global Real Estate Index which declined by -5.90% and
the Global Property Research (GPR) Global Real Estate Securities Index which
declined by -4.47% for the six month period ending April 30, 1998. Over the
past 12 months, your Fund has gained 34.01% (Class Y) in comparison with
-19.63% and -9.81% for the MSCI and GPR indices, respectively.
With this report, we are replacing the MSCI Index with the GPR Index as
our new benchmark because of its more comprehensive and accurate reflection
of the world's property securities markets. While the GPR Index does not
fully reflect the investable universe of your Fund, it does provide a more
meaningful benchmark for comparative purposes.
Q. WHAT ENABLED THE FUND TO OUT-PERFORM THE BENCHMARK INDICES DURING THIS
PERIOD?
A. The simple answer is that we under-weighted the Fund's exposure to Asia while
over-weighting our European exposure, following a pattern that we established
over 18 months ago. Another important boost was the out-performance of a
number of the Fund's largest investments; most notably, Continental Homes (8%
of the Fund at the end of October) which was acquired by D.R. Horton (5% of
the Fund at the end of April) for shares and also the Fund's holding in
Societe de Louvre (7.3% of the Fund at the end of April) which recently has
been fighting a hostile takeover bid for the company. The Fund also benefited
during this period from takeover bids for other holdings, including La Quinta
Inns in the U.S. and Accor AsiaPacific in Australia. Recently,
Bernheim-Comofi, a long-term holding of the Fund, out-performed the Belgian
property sector in 1998, leading up to an agreed takeover by Security Capital
Group of the U.S.
Q. HOW HAVE INDIVIDUAL REAL ESTATE SECURITIES MARKETS AROUND THE WORLD PERFORMED
DURING THE SIX MONTHS ENDED APRIL 30, 1998?
A. In general, international securities markets were polarized with strong
equity performances in Europe and horrendous equity depreciation throughout
Asia. Real estate securities have performed more or less in line with their
respective stock markets with several important exceptions. During the six
months under review, the strongest markets for real estate securities (in
their local currencies) have been Italy and Spain followed by France and
Sweden; all of which produced strong double-digit returns. Property shares in
Great Britain added about 10% while Dutch, Belgian and German shares showed
modest positive returns. In contrast, most Asian property shares indices
suffered tremendous erosion of value, most prominently in Indonesia (-54%),
Thailand (-40%), Malaysia (-39%) and Hong Kong (-33%). Japanese real estate
stocks fell by -17% while Singapore
- --------------------------------------------------------------------------------
-3-
<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
NORTH & SOUTH AMERICA 34.30%
ASIA 14.90%
EUROPE 41.80%
OTHER 9.00%
</TABLE>
SECTOR DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
OFFICE-INDUSTRIAL 28.00%
HOTEL 24.30%
SHOPPING CENTERS 17.00%
OTHER 2.70%
RESIDENTIAL 28.00%
</TABLE>
TOP 10 HOLDINGS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1. Societe du Louvre (France) 7.30% 6. Societe de Immeubles de France (France) 3.90%
2. D.R. Horton, Inc. (U.S.) 5.00% 7. Thorkild Kristensen A/S (Denmark) 3.80%
3. Grupo Posadas SA, Class A & L (Mexico) 5.00% 8. Vallehermoso SA (Spain) 3.70%
4. Alexander's Inc. (U.S.) 4.90% 9. Starwood Lodging Trust (U.S.) 3.60%
IRSA Inversiones Y Representaciones SA
5. (Argentina) 3.90% 10. U.S. Home Corp., warrents "A" (U.S.) 3.40%
</TABLE>
fell only by single digits. By contrast, the Philippines and Australia were both
positive with returns of 19% and 13% during this period, while certain
sub-sectors did well, such as the Thai Hotel sector which gained an impressive
44%.
Unlike the rest of the world's markets, the six-month performance of U.S.
property stocks did not reflect the general trend of the broad S&P 500 index.
REITs were slightly negative, down 0.6%, while the S&P Home Building Index rose
by 27%, beating the S&P 500 during this period.
Foreign investment returns were further impacted by our robust currency.
The U.S. dollar typically rose by 3-4% against European currencies, by more than
9% against the Japanese Yen, and by over 27% and 55%, respectively, against
South Korean and Indonesian currencies.
Q. WHAT CREATED SUCH DRAMATIC REGIONAL
VARIATIONS IN PERFORMANCE?
A. In our previous report to shareholders last fall, we commented that the
collapse of Asian currencies was such a shock to the economic order that the
ensuing rapid destabilization effectively wiped out financial liquidity in
local banking systems and capital markets, which in turn led to a huge
erosion in the value of both hard and financial assets. While real estate is
typically regarded as a hard asset, it is inherently linked to other
financial assets through the
- --------------------------------------------------------------------------------
-4-
<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
capital markets. The continuing contraction of these economies may keep
liquidity constrained for real estate and will have a pronounced impact on
these shares in Asia. By contrast, Europe has benefited tremendously from
economic expansion and also from a surge in liquidity generated by
historically low interest rates and strong demand from investors around the
world. Some of this liquidity is being directed into real estate and is also
fostering M&A activity as well as supporting share prices. Prominent U.S.
investors, such as Sam Zell's Equity Group and Bill Sanders' Security Capital
Group, have followed hard on the heels of traditionally aggressive "vulture"
investors searching for opportunities in European real estate.
The strong U.S. economy, which has featured historically high employment
levels and the lowest interest rates for three decades, has produced a six
year long recapitalization of its real estate market. The securitization of
both debt and equity investments in real estate has been a major factor in
this recapitalization. While our expanding economy has produced rising rents
and higher prices, the onset of new construction has stirred fears in many
investors' memories of over-building during the 1980's which set the stage
for the Gulf War induced real estate and economic bust in 1990. REIT shares
have significantly under-performed the overall stock market so far in 1998,
as investors appear to have concluded that the real estate recovery is over
and a decline is around the corner. At the same time the home building sector
has enjoyed record levels of demand as well as the onset of higher prices,
which can lead to expanding profit margins, but share prices suggest this too
is a top. At the time of this writing the overall mood of the stock market
appears to be incorporating the possibility of a significant economic
slowdown and accordingly real estate share prices no longer reflect either
significant premiums to underlying asset value or the anticipation of future
growth.
Q. LOOKING AHEAD FOR THE NEXT TWELVE MONTHS OR SO, WHAT DO YOU BELIEVE ARE THE
PROSPECTS FOR REAL ESTATE SECURITIES AROUND THE WORLD?
A. Since real estate often follows economic fundamentals, let me first comment
on how Alpine see's current developments in the world's regional economies.
Clearly, Asian economies are under considerable pressure and we expect to see
a range of impact in different countries, varying from stagnation to
recession and even to full-blown economic collapse in Indonesia. The pace of
regional recovery depends on several factors; most notably Japan's ability to
pull its economy out of recession. Assuming Japan does so, we believe it can
be an engine of economic demand and a provider of liquidity for the region;
which in turn will affect the pace with which the smaller Asian economies can
recover. Europe's march towards monetary union is fundamentally positive and
we believe will continue to attract significant capital to the Continent. One
result will be enhanced competition which should bring about many of the
corporate productivity enhancements that helped to elevate the U.S. economy
over the past five years. The United States should be able to retain its
"Safe Haven" status and economic predominance. Concerns regarding Asian trade
will continue to influence America's ability to retain significant liquidity
and to maintain the benefits of a full employment economy with low inflation
over the near to medium term.
With regard to the prospects for real estate markets around the world,
the greatest uncertainty surrounds the ability of Asian property markets to
recapitalize and reconstitute themselves. Clearly there will probably be
numerous bankruptcies and many of the hundreds of companies which we track in
these markets may not exist in a few years. However, those companies which
survive the current contraction
- --------------------------------------------------------------------------------
-5-
<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
may well emerge as dominant players in the future because their ability to
tap capital markets will provide a competitive advantage.
While European real estate markets remain in a recovery phase, the
impact of securitization will vary from country to country. Scandinavian
countries have been actively securitizing real estate and creating large
quoted companies. We expect other countries will follow. Great Britain
historically has had a large quoted property sector that has recently raised
a significant amount of capital for new construction activity. Only when rent
and occupancies return to levels that support new construction will there be
similar activity in Continental Europe. Consequently many investors are
encouraged that oversupply does not appear to be a risk to recovery. While
supply is stable, the pace of growth in demand for space is not as certain.
We believe demand will vary greatly from country to country over the next few
years.
The real estate recovery in the U.S. is all but complete in most regions
and in all sectors of the real estate market. The prospects for income growth
and appreciation now depend on both the pace of new construction and the
level of local demand. Certain markets may under-perform over the next few
years; however, the general tenor of the economy and the supply/demand
balance in most real estate markets warrant restrained optimism over the
prospects to make money in our markets.
With estimates that only 8%* of the commercial real estate market has
been securitized and only 15%* of the residential building sector is publicly
owned, the scope for continued growth in real estate securities is
substantial. The recent pattern of the major securitization of real estate in
the U.S. will likely play out throughout Asia, Europe and Latin America over
the next three to five years.
Q. COULD ASIAN WOES SPREAD TO THE U.S. AND EUROPE?
A. The most important issue facing the world is whether Japan will emerge from
recession within the next year. If Japan is unsuccessful in responding to its
economic crisis, there is a growing risk that their banks will aggressively
recall loans to other Asian economies and that Japanese businesses will shut
down foreign plants to repatriate capital. We believe these consequences,
coupled with increased pressure on the Yen, would further erode the
competitiveness of not only the smaller Asian countries but, more
importantly, of China. If China responds by significantly devaluing its
currency, the Renminbi, which in turn would dislodge Hong Kong's Dollar peg,
we might see a deflationary spiral that could spread to the rest of the
world. However, we do not believe such a dismal scenario will occur. First,
the political will in Japan to take severe measures to restructure its
economy is growing as is international pressure. Second, in our view the
likelihood of a meltdown is remote because the implications of such a
hypothetical situation would prompt the G-Seven countries to coordinate
significant efforts in order to prevent this from happening. Therefore, while
a global collapse is not unthinkable and we are vigilant in watching for
signs of danger, we believe the possibility of it happening is remote.
Q. GIVEN RECENT MARKET ACTIVITY AND THE POTENTIAL FOR CONTINUED VOLATILITY IN
REAL ESTATE SECURITIES, HOW WILL THE FUND BE POSITIONED TO BENEFIT FROM
FUTURE OPPORTUNITIES AND TO REDUCE RISKS?
A. Alpine's fundamental approach to investing in real estate stocks emphasizes
buying real estate assets through the stock market at a discount to their
intrinsic underlying value. We believe our
- ---------------
*Sources: Merrill Lynch and Smith Barney.
- --------------------------------------------------------------------------------
-6-
<PAGE> 7
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
approach reduces downside risk and improves the potential for significant
rewards as values grow. By focusing on economic fundamentals, we believe that
we can target countries where real estate values will grow and avoid those
where values may decline. The picture we have tried to paint in this report
is that, in our view, real estate markets in North America will remain solid
but not spectacular in terms of their appreciation potential, while Europe
will continue to be a region of growth as both its economies and its real
estate markets continue to recover from recessionary levels. Over a longer
term, Asia may well provide tremendous opportunities for patient investors
who can avoid the minefields that have not yet exploded.
We believe that an overriding theme across all three major regions of
the world will be the expansion of merger and acquisition activities. In
Asia, the need to recapitalize companies will, in part, lead to both friendly
and hostile transactions. We believe the Fund has the potential to make money
both by owning the surviving entities that will dominate their respective
real estate industries and by selectively owning companies that might be
taken over at significant premiums to their trading prices. In Europe, we
believe M&A activities will proliferate as borders recede in the new Monetary
Union leading investors to seek growth opportunities in new markets. We
foresee the Fund benefiting not only from owning the targets of such M&A
activity but also from owning the companies which will emerge as pan-European
entities. Finally in the U.S., we see an appeal to consolidate the industry
leading to a continuation of M&A activity. Recently, the acquirer's shares
have typically under-performed those of the company that is bought, largely
because the acquirer's future upside potential is now less likely to come
from the benefits of rising rents and values and more likely to be derived
from operating synergies and the benefits of scale. Thus our focus will
continue to be on potential take-over targets.
The current investment environment for global real estate equities
provides opportunities for both growth and value investing. By balancing
medium-term growth opportunities that are available in Europe and the long
term values that can be acquired in Asia with the current stable returns
achievable in the U.S. the Fund will seek to reduce volatility over time.
In closing, I would like to thank longtime investors for their support
and interest during this Fund's Evergreen days and I wish to welcome new
investors to the Alpine family of funds. Having managed this Fund for over
nine years, I believe that we have finally entered an era in which the role
of real estate securities in an international context will be increasingly
prominent not only for investors, but also for strengthening local real
estate markets and economies around the world. Both the growing
entrepreneurial interest in foreign real estate markets and the potential for
cyclical opportunities, in light of potential risks, makes this an exciting
time to be an investor in real estate securities around the world.
Sincerely,
/s/ Samuel A. Lieber
Samuel A. Lieber
Alpine Management and Research, LLC
- ---------
* For more information about the Alpine International Real Estate Fund, include
charges & expenses, request a prospectus by calling (888) 785-5578. Please
read the prospectus carefully before investing or sending money.
- --------------------------------------------------------------------------------
-7-
<PAGE> 8
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS -- 98.3%
Argentina -- (3.9%)
281,313 IRSA Inversiones y
Representaciones SA......... $ 1,088,812
14,668 IRSA Inversiones y
Representaciones SA, GDR.... 570,219
-----------
1,659,031
-----------
Australia -- (0.9%)
744,457 Walker Corporation Ltd........ 364,028
-----------
Belgium -- (1.2%)
7,342 Bernheim-Comofi N.V........... 485,726
-----------
Canada -- (5.6%)
45,000 Bentall Corp.................. 582,012
30,000 Burcon Properties Ltd. (b).... 304,115
135,000 Canadian Hotel Income
Properties.................. 830,547
100,000 Gentra, Inc. (b).............. 290,831
100,000 Legacy Hotels................. 349,557
-----------
2,357,062
-----------
Denmark -- (3.8%)
17,656 Thorkild Kristensen A/S....... 1,586,753
-----------
France -- (13.7%)
20,000 Societe de Immeubles de
France...................... 1,655,100
41,078 Societe du Louvre............. 3,071,756
7,250 Unibail....................... 1,036,099
-----------
5,762,955
-----------
Germany -- (2.0%)
29,871 Kampa-Haus AG................. 833,959
-----------
Hong Kong -- (1.8%)
210,000 China Resources Beijing
Land........................ 111,153
290,400 HKR International Ltd......... 174,329
320,000 Hongkong Land Holdings,
Ltd......................... 451,200
-----------
736,682
-----------
Japan -- (6.8%)
242 Chubu Sekiwa Real Estate,
Ltd......................... 1,154
52,000 Daibiru Corp.................. 349,867
190,000 Diamond City Co., Ltd......... 898,736
146,410 Kansai Sekiwa Real Estate Co.,
Ltd......................... 509,715
47,000 Tachihi Enterprise Co.,
Ltd......................... 1,113,373
-----------
2,872,845
-----------
Mexico -- (5.0%)
930,000 Grupo Posadas SA, Class A
(b)......................... 714,244
1,930,000 Grupo Posadas SA, Class L
(b)......................... 1,395,860
-----------
2,110,104
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Netherlands -- (2.8%)
90,500 European City Estates N.V..... $ 1,173,513
-----------
New Zealand -- (1.4%)
2,010,245 Kiwi Development Trust........ 580,834
-----------
Norway -- (2.6%)
133,000 Choice Hotels Scandinavia ASA
(b)......................... 427,993
39,200 Steen & Strom Invest ASA...... 657,006
-----------
1,084,999
-----------
Philippines -- (0.8%)
13,625,000 SM Development Corp........... 332,565
-----------
Singapore -- (3.4%)
500,000 Marco Polo Developments,
Ltd......................... 634,673
300,000 Singapore Land, Ltd........... 776,764
-----------
1,411,437
-----------
Spain -- (7.1%)
34,355 Inmobilaria Ubris SA.......... 495,889
239,993 Sotogrande SA................. 944,761
40,000 Vallehermoso SA............... 1,548,404
-----------
2,989,054
-----------
Sweden -- (4.4%)
100,000 Castellum AB.................. 1,188,813
40,000 Fastighets AB Nackebro........ 659,016
-----------
1,847,829
-----------
Thailand -- (2.1%)
105,000 Central Pattana Public Co.
Ltd. (b).................... 27,149
178,600 Dusit Thani Public Co., Ltd.
(b)......................... 249,370
203,500 Hemaraj Land & Development
Public Co., Ltd............. 92,081
500,000 Land And House Public Co.,
Ltd. (b).................... 223,012
400,000 Saha Pathana Inter-Holding
Public Co., Ltd. (b)........ 255,979
195,000 Sammakorn Public Co., Ltd.
(b)......................... 50,420
-----------
898,011
-----------
United Kingdom -- (4.2%)
275,000 Greycoat PLC.................. 995,467
1,000,000 Hemingway Properties PLC...... 769,120
-----------
1,764,587
-----------
</TABLE>
Continued
-8-
<PAGE> 9
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
United States -- (24.8%)
22,900 Alexander's, Inc.............. $ 2,072,450
10,000 Crescent Real Estate Equities,
Inc......................... 341,250
25,000 Crossmann Communities,
Inc. (b).................... 681,250
112,725 D.R. Horton Inc............... 2,092,458
2,300 Forest City Enterprises,
Inc......................... 132,825
15,000 Host Marriott Corp. (b)....... 291,563
15,000 Lennar Corp................... 411,563
5,000 Meditrust Companies........... 150,313
258,100 Presley Companies (The)....... 274,232
15,000 Servico, Inc. (b)............. 292,500
30,000 Starwood Lodging Trust........ 1,505,625
49,100 Sunstone Hotel Investors,
Inc......................... 761,050
67,000 U.S. Home Corp., warrants Cl.
B $20-expiring 6/22/98...... 1,423,750
-----------
10,430,829
-----------
Total Common Stocks
(Cost $37,038,679).......... 41,282,803
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SHORT TERM INVESTMENTS -- (0.9%)
185,000 FHLMC, 6.08%, 5/18/98......... $ 184,667
203,159 SSGA U.S. Government Money
Market Fund................. 203,159
-----------
Total Short Term Investments
(Cost $387,826)............. 387,826
-----------
164,100 Miscellaneous Securities (Cost
$21,717).................... 24,619
-----------
Total Investments
(Cost $37,448,222)
(a)................... 99.3% 41,695,248
Other assets in excess of
liabilities........... 0.7% 313,735
------ -----------
TOTAL NET ASSETS........100.0% $42,008,983
====== ===========
</TABLE>
- ---------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................... 11,550,459
Unrealized depreciation................... (7,303,433)
----------
Net unrealized appreciation............... 4,247,026
</TABLE>
(b) Non-income producing securities.
GDR -- Global Depository Receipts
See notes to financial statements.
-9-
<PAGE> 10
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value (identified cost, $37,448,222)....... $41,695,248
Foreign currency, at value (cost $104,605)................ 105,971
Receivable for investments sold........................... 325,894
Interest and dividends receivable......................... 87,327
Prepaid expenses and other assets......................... 44,564
Reclaim receivable........................................ 35,566
-----------
Total assets........................................... 42,294,570
-----------
LIABILITIES:
Payable for investments purchased......................... 136,550
Payable for Fund shares redeemed.......................... 37,177
Advisory fees payable..................................... 35,325
Distribution fees payable................................. 468
Accrued expenses and other liabilities.................... 76,067
-----------
Total liabilities...................................... 285,587
-----------
NET ASSETS.................................................. $42,008,983
===========
NET ASSETS REPRESENTED BY
Paid-in capital........................................... $40,704,656
Accumulated distributions in excess of net investment
income................................................. (32,730)
Accumulated net realized loss on investments and foreign
currency transactions.................................. (2,911,335)
Net unrealized appreciation on investments and foreign
currency transactions.................................. 4,248,392
-----------
TOTAL NET ASSETS....................................... $42,008,983
===========
NET ASSETS VALUE
Class A shares
Net assets of $478,635 / 31,504 shares outstanding..... $ 15.19
Offering price (based on sales charge of 4.75%)........ $ 15.95
Class B shares
Net assets of $242,039 / 16,295 shares outstanding..... $ 14.85
Class C shares
Net assets of $230,379 / 15,504 shares outstanding..... $ 14.86
Class Y shares
Net assets of $41,057,930 / 2,692,197 shares
outstanding........................................... $ 15.25
===========
</TABLE>
See notes to financial statements.
-10-
<PAGE> 11
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $19,868)............. $ 296,433
----------
Total income..................................................... 296,433
----------
EXPENSES:
Advisory fees............................................. $194,173
Administration fees....................................... 1,060
Distribution fees......................................... 2,362
Transfer agent fees....................................... 41,308
Audit fees................................................ 13,431
Custodian fees............................................ 13,130
Legal fees................................................ 4,913
Registration and filing fees.............................. 28,816
Printing fees............................................. 7,392
Other..................................................... 3,997
--------
Net expenses.......................................................... 310,582
----------
Net investment loss................................................... (14,149)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from investments.................................. 2,224,632
Net realized loss from foreign currency transactions................ (18,409)
Net change in unrealized gain (loss) from investments............... 4,191,530
Net change in unrealized gain (loss) from foreign currency
transactions..................................................... 20,660
----------
Net realized and unrealized gain on investments....................... 6,418,413
----------
Net increase in net assets resulting from operations.................. $6,404,264
==========
</TABLE>
See notes to financial statements.
-11-
<PAGE> 12
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, 1997
---------------- ------------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment loss....................................... $ (14,149) $ (90,765)
Net realized gain on investments and foreign currency
transactions........................................... 2,206,223 1,941,129
Net change in unrealized appreciation of investments and
foreign currency transactions.......................... 4,212,190 302,113
----------- ------------
Net increase in net assets resulting from operations... 6,404,264 2,152,477
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................ -- --
Class B................................................ -- --
Class C................................................ -- --
Class Y................................................ -- (76,344)
----------- ------------
Total distributions to shareholders.................... -- (76,344)
----------- ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds for shares sold.................................. 4,303,936 1,779,852
Payments for shares redeemed.............................. (4,589,817) (16,374,343)
Net asset value of shares issued in reinvestment of
distributions.......................................... -- 43,582
----------- ------------
Net decrease in net assets resulting from shares of
beneficial interest transactions..................... (285,881) (14,550,909)
----------- ------------
Total increase/decrease in net assets.................. 6,118,383 (12,474,776)
----------- ------------
NET ASSETS:
Beginning of period....................................... 35,890,600 48,365,376
----------- ------------
End of period............................................. $42,008,983 $ 35,890,600
=========== ============
Undistributed (accumulated distributions in excess of) net
investment income......................................... $ (32,730) $ (18,581)
=========== ============
</TABLE>
See notes to financial statements.
-12-
<PAGE> 13
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION:
Alpine International Real Estate Equity Fund, formerly Evergreen Global
Real Estate Equity Fund, the ("Fund"), is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company. The Fund is a separate series of
the Alpine Equity Trust, formerly the Evergreen Equity Trust, a
Massachusetts business trust organized in 1988.
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold with a maximum front-end sales charge of 4.75%. Class B and
Class C shares are sold without a front-end sales charge, but pay higher
ongoing distribution fees than Class A. Class B shares are sold subject to
a contingent deferred sales charge that is payable upon redemption and
decreases depending on how long the shares have been held. Class C shares
are sold subject to a contingent deferred sales charge payable on shares
redeemed within one year after the month of purchase. Class B shares
purchased after January 1, 1997 will automatically convert to Class A
shares after seven years. Class B shares purchased prior to January 1, 1997
retain their existing conversion rights. Class Y shares are sold at net
asset value and are not subject to contingent deferred sales charges or
distribution fees. Class Y shares are sold only to certain institutional or
individual investors who do not receive services of financial
intermediaries that offer shares of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles,
which require management to make estimates and assumptions that affect
amounts reported herein. Actual results could differ from these estimates.
A. VALUATION OF SECURITIES:
The Fund values securities traded on a national securities exchange or
included on the NASDAQ National Market System ("NASDAQ") at the last
reported sales price on the exchange where primarily traded. The Fund
values securities traded on an exchange or NASDAQ for which there has been
no sale and other securities traded in the over-the-counter market at the
mean between the last reported bid and asked price. Securities for which
market quotations are not available, including restricted securities, are
valued at fair value as determined in good faith according to procedures
approved by the Board of Trustees. Short-term investments with remaining
maturities of 60 days or less are carried at amortized cost, which
approximates market value.
B. REPURCHASE AGREEMENTS:
The Fund may invest in repurchase agreements. Securities pledged as
collateral for repurchase agreements are held by the custodian on the
Fund's behalf. The Fund monitors the adequacy of the collateral daily and
will require the seller to provide additional collateral in the event the
market value of the securities pledged falls below the carrying value of
the repurchase agreement, including accrued interest. The Fund will only
enter into repurchase agreements with banks and other financial
institutions which are deemed by the investment advisor to be creditworthy
pursuant to guidelines established by the Board of Trustees.
Continued
-13-
<PAGE> 14
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
C. FOREIGN CURRENCY:
The books and records of the Funds are maintained in United States (U.S.)
dollars. Foreign currency amounts are translated into United States dollars
as follows: market value of investments, other assets and liabilities at
the daily rate of exchange; purchases and sales of investments, income and
expenses at the rate of exchange prevailing on the respective dates of such
transactions. Net unrealized foreign exchange gain (loss) resulting from
changes in foreign currency exchange rates is a component of net unrealized
appreciation (depreciation) on investments and foreign currency
transactions. Net realized foreign currency gains and losses resulting from
changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions,
foreign currency related transactions and the difference between the
amounts of interest and dividends recorded on the books on the Fund and the
amounts that are actually received and are included in realized gain (loss)
on foreign currency related transactions. The portion of foreign currency
gains and losses related to fluctuations in exchange rates between the
initial purchase trade date and subsequent sale trade date is included in
realized gain (loss) on foreign currency transactions.
D. FUTURES CONTRACTS:
In order to gain exposure to or protect against changes in security values,
the Fund may buy and sell futures contracts.
The initial margin deposited with a broker when entering into a futures
transaction is subsequently adjusted by daily payments or receipts as the
value of the contract changes. Such changes are recorded as unrealized
gains or losses. Realized gains or losses are recognized on closing the
contract.
Risks of entering into futures contracts include (i.) the possibility of an
illiquid market for the contract, (ii.) the possibility that a change in
the value of the contract may not correlate with the changes in the value
of the underlying instrument or index, and (iii.) the credit risk that the
other party will not fulfill their obligations under the contract. Futures
contracts also involve elements of market risk in excess of the amount
reflected in the statements of assets and liabilities.
E. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS:
The Fund may enter into forward foreign currency exchange contracts
("forward contracts") to settle portfolio purchases and sales of securities
denominated in a foreign currency and to hedge certain foreign currency
assets or liabilities. Forward contracts are recorded at the forward rate
and marked-to-market daily. Realized gains and losses arising from such
transactions are included in net realized gain (loss) on foreign currency
transactions. The Fund bears the risk of an unfavorable change in the
foreign currency exchange rate underlying the forward contract and is
subject to the credit risk that the other party will not fulfill their
obligations under the contract. Forward contracts involve elements of
market risk in excess of the amount reflected in the statement of assets
and liabilities.
Continued
-14-
<PAGE> 15
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
F. SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are accounted for no later than one business day
after the trade date. Realized gains and losses are computed on the
identified cost basis. Interest income is recorded on the accrual basis and
includes accretion of discounts and amortization of premiums. Dividend
income is recorded on the ex-dividend date or in the case of some foreign
securities, on the date thereafter when the Fund is made aware of the
dividend. Foreign income may be subject to foreign withholding taxes, which
are accrued as applicable. Capital gains realized on some foreign
securities are subject to foreign taxes and are accrued as applicable.
F. FEDERAL TAXES:
The Fund has qualified and intends to continue to qualify as a regulated
investment company under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Fund will not incur any federal income tax liability
since it is expected to distribute all of its net investment company
taxable income and net capital gains, if any, to its shareholders. The Fund
also intends to avoid any excise tax liability by making the required
distributions under the Code. Accordingly, no provision for federal taxes
is required. To the extent that realized capital gains can be offset by
capital loss carryforwards, it is the Fund's policy not to distribute such
gains.
G. DISTRIBUTIONS:
Distributions from net investment income and net realized capital gains for
the Fund are declared and paid at least annually. Distributions to
shareholders are recorded at the close of business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. The significant differences between
financial statement amounts available for distributions and distributions
made in accordance with income tax regulations are primarily due to
differing treatment for certain distributions received from real estate
investment trusts and certain distributions received from passive foreign
investment companies.
As of October 31, 1997, the Fund had a capital loss carryover for federal
income tax purposes of $4,970,238 that expires October 31, 2003.
H. CLASS ALLOCATIONS:
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the
relative net assets of each class. Currently, class specific expenses are
limited to expenses incurred under the Distribution Plans for each class.
I. ORGANIZATION EXPENSES:
Organization expenses are amortized to operations over a five-year period
on a straight-line basis. In the event any of the initial shares of the
Fund are redeemed during the five-year amortization period, redemption
proceeds will be reduced by any unamortized organization expenses in the
same proportion as the number of initial shares being redeemed bears to the
number of initial shares outstanding at the time of the redemption.
Continued
-15-
<PAGE> 16
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
3. SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
The Fund has an unlimited number of shares of beneficial interest, with
$0.0001 par value, authorized. Transactions in shares and dollars of the
Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 (UNAUDITED) OCTOBER 31, 1997
--------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold....................... 22,458 $ 299,100 40,811 $ 505,405
Shares redeemed................... (16,955) (223,217) (73,533) (893,699)
-------- ----------- ---------- ------------
Net increase/decrease............. 5,503 75,883 (32,722) (388,294)
-------- ----------- ---------- ------------
CLASS B
Shares sold....................... 4,707 64,697 14,681 182,292
Shares redeemed................... (5,222) (74,011) (8,946) (109,808)
-------- ----------- ---------- ------------
Net increase/decrease............. (515) (9,314) 5,735 72,484
-------- ----------- ---------- ------------
CLASS C
Shares sold....................... 8,642 124,865 8,782 109,223
Shares redeemed................... (1,516) (21,675) (1,080) (13,742)
-------- ----------- ---------- ------------
Net increase...................... 7,126 103,190 7,702 95,481
-------- ----------- ---------- ------------
CLASS Y
Shares sold....................... 283,363 3,815,274 79,254 982,932
Shares redeemed................... (307,013) (4,270,914) (1,226,663) (15,357,094)
Shares issued on reinvestment of
distributions................... -- -- 3,475 43,582
-------- ----------- ---------- ------------
Net decrease...................... (23,650) (455,640) (1,143,934) (14,330,580)
-------- ----------- ---------- ------------
Net decrease...................... (11,536) $ (285,881) (1,163,219) $(14,550,909)
-------- ----------- ---------- ------------
</TABLE>
4. SECURITIES TRANSACTIONS:
Cost of purchases and proceeds from sales of investment securities,
excluding short-term investments, were $17,042,921 and $17,667,552,
respectively, for the six months ended April 30, 1998.
5. DISTRIBUTION PLANS:
Evergreen Distributors, Inc. ("EDI"), formerly Evergreen Keystone
Distributors, Inc., a wholly-owned subsidiary of The BISYS Group Inc.
("BISYS") serves as principal underwriter to the Fund.
The Fund has adopted Distribution Plans for each class of shares, except
Class Y Shares, as allowed by Rule 12b-1 of the 1940 Act. Distribution
plans permit the Fund to reimburse its principal underwriter for costs
related to selling shares of the Fund and for various other services. These
costs, which consist
Continued
-16-
<PAGE> 17
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
primarily of commissions and service fees to broker-dealers who sell shares
of the Fund, are paid by the Fund. Pursuant to the Distribution plans, each
class, except Class Y, currently pays a service fee equal to 0.25% of the
average daily net asset of the class. Class B and Class C also presently
pay distribution fees equal to 0.75% of the average daily net assets of the
class. Distribution fees are calculated daily and paid monthly.
During the six months ended April 30, 1998, amounts paid to EDI and/or its
predecessor pursuant to the Fund's Class A, Class B and Class C
Distribution Plans were $517, $1,172 and $673, respectively.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting
shares of the respective class.
6. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS:
Effective February 23, 1998, the Fund entered into an investment advisory
agreement with Alpine Management & Research LLC ("Alpine"). Alpine is a
newly formed Delaware limited liability company organized for the purpose
of providing investment advisory and management services to investment
companies and other advisory clients. Prior to February 23, 1998, Evergreen
Asset Management Corp. ("Evergreen Asset"), a wholly owned subsidiary of
First Union National Bank ("First Union"), served as investment advisor to
the Fund. Pursuant to each investment advisor's agreement with the Fund,
Alpine and Evergreen Asset were entitled to an annual fee of 1.00% of the
Fund's average daily net assets.
For the period from February 23, 1998 through April 30, 1998, Alpine was
paid $74,835 for its services. For the period November 1, 1997 through
February 22, 1998, Evergreen Asset earned fees of $119,338 for its
services.
Evergreen Investment Services, Inc. ("EIS"), formerly Evergreen Keystone
Investment Services, Inc., a subsidiary of First Union, serves as
administrator for the Fund. BISYS Fund Services serves as the Fund's
sub-administrator. The administrator and sub-administrator for the Fund are
each entitled to an annual fee.
Evergreen Service Company ("ESC"), formerly Evergreen Keystone Service
Company, an affiliate of First Union, serves as the transfer and dividend
disbursing agent for the Fund.
Prior to February 23, 1998, Lieber & Company, an affiliate of First Union,
was the investment sub-adviser to the Fund and also provided brokerage
services with respect to substantially all security transactions of the
Fund effected on the New York or American Stock Exchanges. For the period
November 1, 1997 through February 22, 1998, the Fund incurred $30,035 in
brokerage commissions with Lieber & Company. Lieber & Company was
reimbursed by Evergreen Asset, at no additional expense to the Fund, for
its cost of providing investment advisory services.
Officers of the Fund and affiliated trustees receive no compensation
directly from the Fund.
7. EXPENSE OFFSET ARRANGEMENT:
The Fund has entered into an expense offset arrangement with its custodian.
The assets deposited with the custodian under this expense offset
arrangement could have been invested in income-producing assets.
Continued
-17-
<PAGE> 18
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
8. FINANCING AGREEMENT:
On October 31, 1997, a temporary financing agreement between the
participating Funds and First Union became effective. Under this agreement,
First Union provided a fully committed unsecured credit facility in the
aggregate amount of $300 million. Borrowings under this facility bore
interest at 1.00% per annum above the Federal Funds rate. State Street
served as administrative agent under this agreement, but received no
compensation for its services. This agreement was terminated on December
22, 1997.
On December 22, 1997, a financing agreement among all of the Evergreen
Funds, State Street and a group of Banks ("the Banks") became effective.
Under this agreement, the Banks provided an unsecured credit facility in
the aggregate amount of $400 million ($275 million committed and $125
million uncommitted). The credit facility is allocated, under the terms of
the financing agreement, among the Banks. The credit facility is to be
accessed by the funds for temporary or emergency purposes only and is
subject to each Fund's borrowing restrictions. Borrowings under this
facility bear interest at 0.50% per annum above the Federal Funds rate. A
commitment fee of 0.065% per annum will be incurred on the unused portion
of the committed facility, which will be allocated to all funds. For its
assistance in arranging this financing agreement, the Capital Market Group
of First Union was paid a one time arrangement fee of $27,500. State Street
serves as administrative agent for the Banks, and as administrative agent
is entitled to, but did not receive, a fee of $20,000 per annum which is
allocated to all of the funds.
Effective February 22, 1998, the Fund discontinued its participation in
this financing agreement. During the period from November 1, 1997 to
February 22,1998, the Fund had no borrowings under these agreements.
9. CONCENTRATION OF CREDIT RISK:
The Fund invests a substantial portion of its assets in real estate
investment trusts (REIT's) and therefore it may be more affected by
economic developments in the real estate industry than would a general
equity fund.
10. SUBSEQUENT EVENTS:
Effective April 27, 1998, BISYS Fund Services L.P. ("BISYS L.P.") became
the Fund's Principal Underwriter, Distributor and Administrator and BISYS
Fund Services, Inc. ("BISYS") became the Fund's Accountant, Transfer Agent
and Dividend Disbursing Agent. In addition, effective April 27, 1998,
Investors Fiduciary Trust Company ("IFTC") became the Fund's Custodian. In
return for these services, BISYS L.P. and BISYS will earn an annual fee
amounting to 0.23% of the Fund's average daily net assets and IFTC will
earn an annual fee amounting to 0.095% of the Fund's average daily net
assets. The Distribution fees incurred by the Fund under its Distribution
Plans will not be affected by the change in the service provider.
11. SPECIAL MEETING OF SHAREHOLDERS:
A special meeting of shareholders of the Fund was held on February 23, 1998
to consider a number of proposals. On January 12, 1998, the record date for
the meeting, the Fund had 2,808,677 shares outstanding, of which 1,863,557
were represented at the meeting. The votes recorded at the meeting, by
proposal, were as follows:
Continued
-18-
<PAGE> 19
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
PROPOSAL 1 -- APPROVAL OF A NEW INVESTMENT ADVISORY AGREEMENT BETWEEN THE FUND
AND ALPINE MANAGEMENT & RESEARCH LLC:
<TABLE>
<S> <C>
Voted "For"................................................. 1,818,898
Voted "Against"............................................. 32,475
Voted "Abstain"............................................. 12,183
</TABLE>
PROPOSAL 2 -- ELECTION OF TRUSTEES:
<TABLE>
<CAPTION>
VOTED VOTED VOTED
"FOR" "AGAINST" "ABSTAINED"
--------- ----------- -------------
<S> <C> <C> <C>
Laurence B. Ashkin........................... 1,838,919 18,403 6,235
Foster Bam................................... 1,837,927 19,395 6,235
Samuel A Lieber.............................. 1,840,137 17,185 6,235
H. Guy Leibler............................... 1,838,969 18,353 6,235
</TABLE>
PROPOSAL 3 -- CHANGES IN INVESTMENT POLICIES AND RESTRICTIONS:
Proposal 3.B.(1) -- Concentration of investments
<TABLE>
<S> <C>
Voted "For"............................................ 1,804,475
Voted "Against"........................................ 44,951
Voted "Abstain"........................................ 14,131
Proposal 3.B.(2) -- Borrowings
Voted "For"............................................ 1,804,526
Voted "Against"........................................ 44,900
Voted "Abstain"........................................ 14,131
Proposal 3.B.(3) -- Pledging Assets
Voted "For"............................................ 1,804,059
Voted "Against"........................................ 45,367
Voted "Abstain"........................................ 14,131
Proposal 3.B.(4) -- Short Sales
Voted "For"............................................ 1,804,747
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
Proposal 3.B.(5) -- Loans
Voted "For"............................................ 1,804,475
Voted "Against"........................................ 44,951
Voted "Abstain"........................................ 14,131
Proposal 3.B.(6) -- Investment in securities of Non-U.S.
issuers
Voted "For"............................................ 1,804,737
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
</TABLE>
Continued
-19-
<PAGE> 20
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
(FORMERLY EVERGREEN GLOBAL REAL ESTATE EQUITY FUND)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<S> <C>
Proposal 3.B.(7) -- Options
Voted "For"............................................ 1,804,737
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
Proposal 3.B.(8) -- Restriction on diversification of
investments
Voted "For"............................................ 1,804,737
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
Proposal 3.B.(9) -- Investments in securities of unseasoned
issuers
Voted "For"............................................ 1,804,737
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
Proposal 3.B.(10) -- Restriction limiting the purchase of
warrants
Voted "For"............................................ 1,804,737
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
Proposal 3.B.(11) -- Restriction on purchase of securities
of related parties entities
Voted "For"............................................ 1,804,737
Voted "Against"........................................ 44,679
Voted "Abstain"........................................ 14,131
Proposal 3.B.(12) -- Commodities
Voted "For"............................................ 1,804,398
Voted "Against"........................................ 45,028
Voted "Abstain"........................................ 14,131
</TABLE>
Continued
-20-
<PAGE> 21
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED OCTOBER 31, SEPTEMBER 30,
SIX MONTHS ENDED --------------------------- --------------
APRIL 30, 1998 1997 1996 1995(B) 1995(A)
---------------- ------ ------ ------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF
PERIOD............................. $ 12.94 $12.28 $11.58 $12.12 $11.46
------- ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (loss)....... (0.05) (0.06)* 0.06* (0.01)* 0.07*
Net realized and unrealized gain
(loss) on investments........... 2.30 0.72 0.64 (0.53) 0.59
------- ------ ------ ------ ------
Total from investment operations... 2.25 0.66 0.70 (0.54) 0.66
------- ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD........ $ 15.19 $12.94 $12.28 $11.58 $12.12
------- ------ ------ ------ ------
TOTAL RETURN (C)..................... 17.39%(e) 5.40% 6.00% (4.50)% 5.80%(e)
RATIOS / SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS
Net expenses....................... 1.84%(d) 2.10% 1.79% 1.73%(d) 1.61%(d)
Interest expense................... N/A 0.03% 0.03% 0.03%(d) 0.01%(d)
Total expenses, excluding fee
waivers & expense
reimbursements.................. N/A 2.19% 2.97% 46.90%(d) 21.59%(d)
Net investment income (loss)....... (0.32)%(d) (0.47)% 0.40% (1.26)%(d) 0.98%(d)
PORTFOLIO TURNOVER RATE.............. 44% 44% 25% 1% 28%
NET ASSETS END OF PERIOD
(THOUSANDS)........................ $ 479 $ 336 $ 721 $ 74 $ 66
</TABLE>
- ---------
<TABLE>
<S> <C>
* Net investment income is based on average monthly shares outstanding.
(a) For the period from February 10, 1995 (commencement of class operations) to September 30, 1995.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) Initial sales charge or contingent deferred sales charge is not reflected.
(d) Annualized.
(e) Not annualized.
</TABLE>
See notes to financial statements.
-21-
<PAGE> 22
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED OCTOBER 31, SEPTEMBER 30,
SIX MONTHS ENDED --------------------------- -------------
APRIL 30, 1998 1997 1996 1995(B) 1995(A)
---------------- ------ ------ ------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF
PERIOD............................. $ 12.69 $12.14 $11.53 $12.08 $11.44
------- ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (loss)....... (0.08) (0.15)* (0.13)* (0.02)* 0.08*
Net realized and unrealized gain
(loss) on investments........... 2.24 0.70 0.74 (0.53) 0.56
------- ------ ------ ------ ------
Total from investment operations... 2.16 0.55 0.61 (0.55) 0.64
------- ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD........ $ 14.85 $12.69 $12.14 $11.53 $12.08
------- ------ ------ ------ ------
TOTAL RETURN (C)..................... 17.02%(e) 4.50% 5.30% (4.60)% 5.60%(e)
RATIOS / SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS
Net expenses....................... 2.59%(d) 2.82% 2.56% 2.44%(d) 2.42%(d)
Interest expense................... N/A 0.03% 0.03% 0.03%(d) 0.03%(d)
Total expenses, excluding
indirectly paid expenses........ N/A 2.81% N/A N/A N/A
Total expenses, excluding fee
waivers & expense
reimbursements.................. N/A 2.90% 14.45% 31.39%(d) 82.74%(d)
Net investment (loss).............. (1.06)%(d) (1.23)% (1.03)% (1.98)%(d) (1.38)%(d)
PORTFOLIO TURNOVER RATE.............. 44% 44% 25% 1% 28%
NET ASSETS END OF PERIOD
(THOUSANDS)........................ $ 242 $ 213 $ 134 $ 100 $ 128
</TABLE>
- ---------
<TABLE>
<S> <C>
* Net investment income is based on average monthly shares outstanding.
(a) For the period from February 8, 1995 (commencement of class operations) to September 30, 1995.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) Initial sales charge or contingent deferred sales charge is not reflected.
(d) Annualized.
(e) Not annualized.
</TABLE>
See notes to financial statements.
-22-
<PAGE> 23
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED OCTOBER 31, SEPTEMBER 30,
SIX MONTHS ENDED --------------------------- -------------
APRIL 30, 1998 1997 1996 1995(B) 1995(A)
---------------- ------ ------ ------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF
PERIOD............................. $ 12.70 $12.14 $11.53 $12.08 $11.43
------- ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (loss)....... -- (0.14)* (0.13)* (0.02)* 0.06*
Net realized and unrealized gain on
investments..................... 2.16 0.70 0.74 (0.53) 0.59
------- ------ ------ ------ ------
Total from investment operations... 2.16 0.56 0.61 (0.55) 0.65
------- ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD........ $ 14.86 12.70 12.14 11.53 12.08
------- ------ ------ ------ ------
TOTAL RETURN (C)..................... 17.01%(e) 4.60% 5.30% (4.60)% 5.70%(e)
RATIOS / SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS
Net expenses....................... 2.59%(d) 2.83% 2.54% 2.37%(d) 1.54%(d)
Interest expense................... N/A 0.03% 0.03% 0.02%(d) 0.01%(d)
Total expenses, excluding fee
waivers & expense
reimbursements.................. N/A 2.91% 118.64% 570.26%(d) 269.60%(d)
Net investment income (loss)....... (1.04)%(d) (1.15)% (1.06)% (1.94)%(d) 0.86%(d)
PORTFOLIO TURNOVER RATE.............. 44% 44% 25% 1% 28%
NET ASSETS END OF PERIOD
(THOUSANDS)........................ $ 230 $ 106 $ 8 $ 4 $ 7
</TABLE>
- ---------
<TABLE>
<S> <C>
* Net investment income is based on average monthly shares outstanding.
(a) For the period from February 9, 1995 (commencement of class operations) to September 30, 1995.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) Initial sales charge or contingent deferred sales charge is not reflected.
(d) Annualized.
(e) Not annualized.
</TABLE>
See notes to financial statements.
-23-
<PAGE> 24
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
YEAR ENDED OCTOBER 31, SEPTEMBER 30, SEPTEMBER 30,
SIX MONTHS ENDED --------------------------- ------------- -------------
APRIL 30, 1998 1997 1996 1995(B) 1995 1994(A)
---------------- ------- ------- ------- ------------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE
BEGINNING OF PERIOD............ $ 12.97 $ 12.31 $ 11.59 $ 12.13 $ 13.81 $ 14.75
------- ------- ------- ------- ------- --------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (loss)... -- (0.03)* 0.01* (0.01)* 0.11* 0.07*
Net realized and unrealized
gain on investments.......... 2.28 0.71 0.71 (0.53) (1.17) (1.01)
------- ------- ------- ------- ------- --------
Total from investment
operations................... 2.28 0.68 0.72 (0.54) (1.06) (0.94)
------- ------- ------- ------- ------- --------
LESS DISTRIBUTIONS
From net investment income..... -- (0.02) -- -- (0.10) --
Net realized gain on
investments.................. -- -- -- -- (0.52) --
------- ------- ------- ------- ------- --------
Total distributions............ -- (0.02) -- -- (0.62) --
------- ------- ------- ------- ------- --------
NET ASSET VALUE END OF PERIOD.... $ 15.25 $ 12.97 $ 12.31 $ 11.59 $ 12.13 $ 13.81
------- ------- ------- ------- ------- --------
TOTAL RETURN (C)................. 17.58%(e) 5.50% 6.20% (4.50)% (7.70)% (6.40)%(e)
RATIOS / SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS
Net expenses................... 1.59%(d) 1.82% 1.62% 1.62%(d) 1.54% 1.46%(d)
Interest expense............... N/A 0.03% 0.03% 0.03%(d) 0.05% 0.08%
Total expenses, excluding fee
waivers & expense
reimbursements............... N/A 1.90% 1.67% N/A N/A N/A
Net investment income (loss)... (0.06)%(d) (0.21)% 0.11% (1.14)%(d) 0.92% 0.56%(d)
PORTFOLIO TURNOVER RATE.......... 44% 44% 25% 1% 28% 63%
NET ASSETS END OF PERIOD
(THOUSANDS).................... $41,058 $35,234 $47,502 $61,418 $67,645 $132,294
</TABLE>
- ---------
<TABLE>
<S> <C>
* Net investment income is based on average monthly shares outstanding.
(a) The Fund changed its year end from December 31 to September 30, effective September 30, 1994.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) Initial sales charge or contingent deferred sales charge is not reflected.
(d) Annualized.
(e) Not annualized.
</TABLE>
See notes to financial statements.
-24-
<PAGE> 25
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<PAGE> 26
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<PAGE> 27
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
Foster Bam
H. Guy Leibler
INVESTMENT ADVISER
Alpine Management and Research, LLC
122 East 42nd Street, 37th floor
New York, NY 10168
CUSTODIAN
IFTC
801 Pennsylvania
Kansas City, MO 64105
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americans
New York, NY 10036
LEGAL COUNSEL
Schulte Roth & Zabel LLP
900 Third Avenue
New York, NY 10022
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services L.P.
3435 Stelzer Road
Columbus, OH 43219
[ALPINE LOGO]
INTERNATIONAL
REAL ESTATE
EQUITY
FUND
---------------------
SEMI-ANNUAL REPORT
APRIL 30, 1998
Alpine International Real Estate Equity Fund
122 East 42nd Street, 37th floor
New York, NY 10168
(212) 687-5588
(6/98)
