<PAGE>
Annual Report
as of October 31, 1999
and September 30, 1999
Evergreen
Perpetual Global Fund
[LOGO OF EVERGREEN FUNDS]
<PAGE>
Table of Contents
Letter to Shareholders .................................... 1
Evergreen Perpetual Global Fund
(formerly Mentor Perpetual Global Portfolio)
Fund at a Glance ........................................ 2
Portfolio Manager Interview ............................. 3
Financial Highlights ...................................... 6
Schedule of Investments
October 31, 1999 ........................................ 8
September 30, 1999 ...................................... 14
Statements of Assets and Liabilities ...................... 20
Statements of Operations .................................. 21
Statements of Changes in Net Assets ....................... 22
Notes to Financial Statements ............................. 23
Independent Auditors' Report .............................. 29
Additional Information (unaudited) ........................ 30
Evergreen Funds
Evergreen Funds is one of the nation's fastest growing investment companies with
over $70 billion in assets under management.
With over 80 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broad range of quality investment products and
services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This annual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees, charges and other ongoing expenses, and should be
read carefully before investing or sending money.
---------------------------------------------------------------
Mutual Funds: NOT FDIC INSURED May lose value . Not bank guaranteed
---------------------------------------------------------------
Evergreen Distributor,Inc.
Evergreen(SM) is a Service Mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
----------------------
December 1999
[PHOTO]
William M. Ennis
President and CEO
Dear Evergreen Shareholders,
We are pleased to provide the Evergreen Perpetual Global Fund annual report,
which covers the one-month period ended October 31, 1999 and the twelve-month
period ended September 30, 1999.
Uncertainty over Interest Rates Influences the Markets
Although the U.S. economy is in the ninth year of economic expansion, many
believe that valuation levels in some sectors of the stock market are just not
sustainable. The S&P 500 continued to advance in the first half of 1999,
dominated by the performance of a very small group of large-cap stocks. By the
3rd quarter of 1999, rising interest rates dampened performance of stocks across
the board. Investors' inflation fears and continued doubts about the ability of
U.S. companies to sustain significant growth in earnings prompted an October
sell-off.
The Federal Reserve Bank's "tightening bias" leads many to anticipate further
interest rate increases in order to stem even the slightest inflationary
pressure. Additional interest rate hikes would likely have a negative effect on
stock prices, which could restrain consumer spending; however, many investors
are waiting for just such a scenario to take place, so they can take advantage
of lower stock prices as a buying opportunity. Bonds appear relatively
attractive over the long term compared to other asset classes, particularly
because "real" interest rates are high by historical standards.
We believe that the economy is still fundamentally strong, and that inflation
will stay contained, producing only moderate upward pressure on interest rates.
We remain cautiously optimistic about the prospects for continued growth in the
markets.
Internationally, our outlook is dominated by Japan where we expect further
monetary easing to help the still fragile recovery there. As that economy
improves, it should result in greater demand for goods and services produced in
other Asian markets.
Evergreen Funds is Ready for the Year 2000/1/
We have been addressing the Year 2000 challenge since February of 1996 and have
committed the time, resources and people necessary to prepare for any
ramifications from the millennium bug. Today, we are confident that our
preparations will enable us to continue to deliver the high-quality Evergreen
products and services on which our shareholders rely. In addition, Evergreen
portfolio managers have placed great emphasis on monitoring portfolios for Y2K
readiness.
We believe that sound investing is about taking steps to meet your long-term
financial needs and goals. We remind you to take advantage of your financial
advisor's expertise to develop and refine a financial plan that will enable you
to meet your objectives. Evergreen Funds offers a broad mix of stock, bond and
money market funds that should make it simple for you to choose the most
appropriate for your portfolio.
We would like to thank you for your continued investment in Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
President and CEO
Evergreen Investment Company, Inc.
/1/The information above constitutes Year 2000 readiness disclosure.
1
<PAGE>
EVERGREEN
Perpetual Global Fund
(formerly Mentor Perpetual Global Portfolio)
Fund at a Glance as of October 31, 1999
Portfolio
Management Team
------------------------------------------
Ian Brady Kathryn Langridge
Tenure:April 1995 Tenure:April 1995
Scott McGlashan Margaret Rodden
Tenure:April 1995 Tenure:April 1995
Stephen Whittaker
Tenure:April 1995
PERFORMANCE AND RETURNS/2/
Portfolio Inception Date:3/29/1994 Class A Class B Class C Class Y
Class Inception Date 3/29/1994 10/18/1999 3/29/1994 11/19/1997
Average Annual Returns*
1 year with sales charge 19.00% 19.97% 23.10% n/a
1 year w/o sales charge 24.92% 24.97% 24.10% 25.34%
3 years 15.20% 16.37% 16.29% 17.29%
5 years 14.39% 15.29% 14.68% 15.62%
Since Portfolio Inception 13.16% 14.06% 13.28% 14.26%
Maximum Sales Charge 4.75% 5.00% 1.00%
Front End CDSC CDSC n/a
* Adjusted for maximum applicable sales charge unless noted.
LONG TERM GROWTH
[CHART]
MSCI
Month ending date Mentor Pre. Global A Closing value CPI
03/30/94 9,525 10,000 10,000
10/30/94 9,204 10,382 10,156
10/30/95 10,914 11,422 10,442
10/30/96 13,072 13,344 10,754
10/30/97 14,352 15,647 10,978
10/30/98 16,644 18,101 11,141
10/31/99 19,983 22,685 11,461
Comparison of change in value of a $10,000 investment in Evergreen Perpetual
Global Fund Class A shares, versus a similar investment in the Morgan Stanley
Capital International World Index (MSCI World) and The Consumer Price Index
(CPI).
The MSCI World is an unmanaged index which does not include transaction costs
associated with buying and selling securities or any management fees. The CPI is
a commonly used measure of inflation and does not represent an investment
return. It is not possible to invest directly in an index.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations.
CURRENT INVESTMENT STYLE/1/
[GRAPHIC]
Morningstar's Style Box is based on a portfolio date as of 10/31/1999.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 1999 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than original cost. The performance of each class may
vary based on differences in loads, fees and expenses paid by the shareholders
investing in each class.
Historical performance shown for Class B and Class Y prior to their inception is
based on the performance of Class A, one of the original classes offered along
with Class C. These historical returns for Class B and Class Y have not been
adjusted to reflect the effect of each class' 12b-1 fees. These fees for Class A
are 0.25%, for Class B are 1.00% and for Class C are 1.00%. Class Y does not pay
a 12b-1 fee. If these fees had been reflected, returns for Class B would have
been lower while returns for Class Y would have been higher.
2
<PAGE>
EVERGREEN
Perpetual Global Fund
Portfolio Manager Interview
How did the Fund perform?
An asset allocation approach, based on moving assets out of European and U.S.
markets and into Japan and other Asian markets, led to excellent Fund
performance during the twelve months. For the twelve-month period ended
October 31, 1999, the Fund's A shares returned 24.92%, before the deduction of
any applicable sales charges. The Fund's benchmark, the MSCI World Index,
returned 24.91% for the same period.
Portfolio
Characteristics
---------------
(as of 10/31/1999 unless noted)
Total Net Assets $220,465,971
Number of Holdings 386
Beta 0.81*
*as of 9/30/1999
What were the principal strategies that supported the Fund's performance?
Early in the period, we began increasing the Fund's commitment to Asia. As a
result, by the end of the twelve months, assets in Japan accounted for 15% of
the portfolio up from 10% at the beginning of the period. While Japanese
investments did not account for the largest portion of the Fund, they were the
most important contributors to performance. Why? Japan had been in recession for
nine years, and from our perspective in the last quarter of 1998, two conditions
prevailed. First, investor sentiment was so negative that stocks were extremely
cheap; and second, fiscal, monetary and business reforms were being put in place
to address Japan's economic problems. These included changes in banking and
interest rate policy, large public works expenditures, an infusion of capital
investment into the banks, and an unprecedented level of corporate
restructuring. There was also a large amount of merger and acquisition activity.
A recent high profile example of such activity was the merger of Fuji Bank,
DaiChi-Kangyo Bank and Industrial Bank of Japan, which created the largest
banking corporation in the world.
Fund assets in other parts of Asia increased from 4% to 9%. What was attractive
about the region?
For more than a year, Asia has been in turmoil. High levels of corporate and
government debt, weak currencies, high interest rates and political instability
had eroded investor confidence in the region. As a result, Asian stock markets
declined precipitously. In the fourth quarter of 1998, the economic outlook for
Asia began to brighten. Central banks began injecting huge amounts of liquidity
into the economy by systematically lowering interest rates. Lower interest rates
led to business expansion and corporate restructuring. During this time, Asian
stocks were selling at extremely low prices, and we began selectively adding
them to the Fund's portfolio. We concentrated investments in Hong Kong and
Singapore, where we invested primarily in financial stocks. Most recently,
consumer demand for goods and services has picked up in Asia. We believe this
should lead to significant earnings recovery in the months ahead.
Top 5 Industries
----------------
(as a percentage of net assets)
Banking 10.3%
Telecommunications 8.9%
Financial Services 7.0%
Health & Personal Care 7.0%
Electrical & Electronics 6.9%
3
<PAGE>
EVERGREEN
Perpetual Global Fund
Portfolio Manager Interview
What was your strategy in the U.S.?
We reduced exposure to U.S. stocks from 35% to 34% of net assets and deployed
assets in other world markets. While the Fund's allocation to U.S. stocks
continued to be the largest country weighting in the portfolio, it is relatively
small when compared to the 52% weighting of U.S. stocks in the MSCI World index,
the Fund's benchmark. The Fund's relatively small position in U.S. stocks
reflects our perspective that there is better value outside the U.S. In January
1999, we began to emphasize industrial cyclical recovery stocks, such as raw
materials and oils, which performed well. More recently we established a
position in technology stocks, however, the technology stocks in the portfolio
do not include internet stocks, whose value we believe to be excessive. Even
though the U.S. market as a whole seems overvalued to us, we believe that
certain sectors and individual stocks still offer attractive value.
How did the European stocks in the portfolio perform?
Slower economic growth and overstated benefits of the euro, Europe's single
currency, restrained European markets over the past year and, in general, stocks
in this region produced lackluster performance. Several months ago, we began
seeing signs of a cyclical recovery in European economies, and we have
positioned the portfolio to take advantage of this situation. As a result, we
emphasized industrial cyclicals, such as oil, steel, paper and pulp, chemicals
and engineering stocks. While we reduced the Fund's exposure to Europe from 38%
to 30% of net assets, we continue to find opportunities in individual stocks, as
recovery from recession begins. France is the Fund's biggest country weighting
in this region, followed by Germany and Netherlands.
At 10% of net assets, exposure to the United Kingdom (UK) remained constant. In
1998, the Fund suffered from our reluctance to hold on to what, we believed,
were overvalued telecommunications and pharmaceutical stocks. In 1999, however,
there has been a rotation in the UK market away from those mega-cap stocks to
small and mid-cap stocks, like the ones we hold in the portfolio. In the UK, we
favored investments in banks, aerospace, and consumer cyclicals.
Top 10 Holdings*
----------------
(as a percentage of net assets)
Funai Electric Co., Ltd. 1.8%
Sumimoto Trust & Banking Co., Ltd. 1.7%
Total Fina SA Cl. B 1.6%
BankAmerica Corp. 1.4%
Furukawa Electric Co. Ltd. 1.3%
Asahi Glass Co. Ltd. 1.3%
Bank of Tokyo-Mitsubishi Ltd. 1.3%
Kokusai Securities Co. Ltd. 1.3%
Nokia AB Oyj 1.2%
Merck & Co., Inc. 1.2%
*Portfolio composition subject to change
Did you make any changes in the Latin American portion of the portfolio?
Exposure to Latin America remained constant at 1% of net assets, invested in
Mexico and Brazil. While some Latin American markets rose during the period,
they continued to be plagued by currency weakness. We expect currency problems
to persist for some time in this region.
4
<PAGE>
EVERGREEN
Perpetual Global Fund
Portfolio Manager Interview
What is your outlook?
Our outlook is dominated by our perspective on Japan. We expect there will be
further monetary easing in Japan that will be accompanied by weakness in the
yen. We view this as a positive situation, because the stronger yen would
threaten to stifle the still fragile economic recovery. In looking at the big
picture, we believe the single most important influence on the performance of
international markets relative to the U.S. over the next year will be further
recovery in Japan. Japan's economic turnaround should result in greater demand
for goods and services produced in other Asian markets. This will diminish
Asia's reliance on the U.S. as a market for its goods and services.
5
<PAGE>
EVERGREEN
Financial Highlights
Perpetual Global Fund
(formerly Mentor Perpetual Global Portfolio)
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended September 30,
One-Month Period Ended --------------------------------------------
October 31, 1999 (a)(b) 1999 # 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 23.09 $ 18.92 $ 20.94 $ 17.86 $ 15.88 $14.23
------- ------- ------- ------- ------- ------
.........................................................................
Income from investment
operations
.........................................................................
Net investment income
(loss) (0.03) 0.02 (0.03) 0.04 (0.04) 0.05
.........................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.80 5.74 (0.97) 3.67 2.82 1.60
------- ------- ------- ------- ------- ------
Total from investment
operations 0.77 5.76 (1.00) 3.71 2.78 1.65
------- ------- ------- ------- ------- ------
.........................................................................
Distributions to
shareholders from
Net realized gains 0 (1.59) (1.02) (0.63) (0.80) 0
------- ------- ------- ------- ------- ------
Total distributions to
shareholders 0 (1.59) (1.02) (0.63) (0.80) 0
------- ------- ------- ------- ------- ------
.........................................................................
Net asset value, end of
period $ 23.86 $ 23.09 $ 18.92 $ 20.94 $ 17.86 $15.88
------- ------- ------- ------- ------- ------
.........................................................................
Total return* 3.33% 32.49% (4.97%) 21.59% 18.40% 11.60%
.........................................................................
Ratios and supplemental
data
.........................................................................
Net assets, end of
period (thousands) $86,341 $88,743 $59,012 $46,556 $13,098 $6,854
.........................................................................
Ratios to average net
assets
.........................................................................
Expenses** 2.16%+ 1.84% 1.75% 1.89% 1.95% 2.06%
.........................................................................
Net investment income (1.49%)+ 0.11% (0.01%) 0.07% (0.21%) 0.26%
.........................................................................
Portfolio turnover rate 13% 144% 162% 128% 130% 155%
.........................................................................
</TABLE>
<TABLE>
<CAPTION>
Period Ended
October 31, 1999 (c)
<S> <C>
CLASS B SHARES
Net asset value, beginning of period $22.91
------
.........................................................................
Income from investment operations
.........................................................................
Net investment loss 0
.........................................................................
Net realized and unrealized gains or losses on securities
and foreign currency related transactions 0.96
------
.........................................................................
Total from investment operations 0.96
------
.........................................................................
Net asset value, end of period $23.87
------
.........................................................................
Total return* 4.19%
.........................................................................
Ratios and supplemental data
.........................................................................
Net assets, end of period (thousands) $1,048
.........................................................................
Ratios to average net assets
.........................................................................
Expenses** 2.91%+
.........................................................................
Net investment income (2.24%)+
.........................................................................
Portfolio turnover rate 13%
.........................................................................
</TABLE>
(a) For the one month ended October 31, 1999. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per-
petual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
(c) For the period from October 18, 1999 (commencement of class operations) to
October 31, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
fee credits.
+ Annualized.
# Net investment income or loss per share is based on average shares outstand-
ing during the period.
See Notes to Financial Statements.
6
<PAGE>
EVERGREEN
Financial Highlights
Perpetual Global Fund
(formerly Mentor Perpetual Global Portfolio)
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended September 30,
One-Month Period Ended ------------------------------------------------
October 31, 1999 (a)(b) 1999 # 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 21.99 $ 18.21 $ 20.32 $ 17.46 $ 15.67 $ 14.15
-------- -------- ------- ------- ------- -------
.........................................................................
Income from investment
operations
.........................................................................
Net investment loss (0.03) (0.21) (0.12) (0.02) (0.05) (0.05)
.........................................................................
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.75 5.58 (0.97) 3.51 2.64 1.57
-------- -------- ------- ------- ------- -------
.........................................................................
Total from investment
operations 0.72 5.37 (1.09) 3.49 2.59 1.52
-------- -------- ------- ------- ------- -------
.........................................................................
Distributions to
shareholders from
.........................................................................
Net realized gains 0 (1.59) (1.02) (0.63) (0.80) 0
-------- -------- ------- ------- ------- -------
.........................................................................
Total distributions to
shareholders 0 (1.59) (1.02) (0.63) (0.80) 0
-------- -------- ------- ------- ------- -------
.........................................................................
Net asset value, end of
period $ 22.71 $ 21.99 $ 18.21 $ 20.32 $ 17.46 $ 15.67
-------- -------- ------- ------- ------- -------
.........................................................................
Total return* 3.27% 31.54% (5.65%) 20.74% 17.39% 10.74%
.........................................................................
Ratios and supplemental
data
.........................................................................
Net assets, end of
period (thousands) $133,075 $128,192 $99,277 $89,030 $42,131 $12,667
.........................................................................
Ratios to average net
assets
.........................................................................
Expenses** 2.91%+ 2.58% 2.50% 2.64% 2.70% 2.72%
.........................................................................
Net investment income (2.24%)+ (0.67%) (0.77%) (0.68%) (0.91%) (0.40%)
.........................................................................
Portfolio turnover rate 13% 144% 162% 128% 130% 155%
.........................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended
September 30,
One-Month Period Ended ----------------
October 31, 1999 (a)(b) 1999 # 1998 (c)
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $23.21 $18.96 $18.81
------ ------ ------
.........................................................................
Income from investment operations
.........................................................................
Net investment income (0.02) 0.09 0
.........................................................................
Net realized and unrealized gains
or losses on securities and
foreign currency related
transactions 0.80 5.75 0.30
------ ------ ------
.........................................................................
Total from investment operations 0.78 5.84 0.30
------ ------ ------
.........................................................................
Distributions to shareholders from
.........................................................................
Net realized gains 0 (1.59) (0.15)
------ ------ ------
.........................................................................
Total distributions to shareholders 0 (1.59) (0.15)
------ ------ ------
.........................................................................
Net asset value, end of period $23.99 $23.21 $18.96
------ ------ ------
.........................................................................
Total return 3.36% 32.87% 1.60%
.........................................................................
Ratios and supplemental data
.........................................................................
Net assets, end of period
(thousands) $ 1 $ 1 $ 1
.........................................................................
Ratios to average net assets
.........................................................................
Expenses** 1.83%+ 1.52% 1.50%+
.........................................................................
Net investment income (0.87%)+ 0.40% (0.02%)+
.........................................................................
Portfolio turnover rate 13% 144% 162%
.........................................................................
</TABLE>
(a) For the one month ended October 31, 1999. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per-
petual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
(c) For the period from November 19, 1997 (commencement of class operations) to
September 30, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
fee credits.
+ Annualized.
# Net investment income or loss per share is based on average shares outstand-
ing during the period.
See Notes to Financial Statements.
7
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments
October 31, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 99.9%
Argentina - 0.1%
1,600 Inversiones y Representaciones, SA GDR.............. $ 48,300
11,120 Perez Companc SA, Cl. B............................. 66,973
1,600 Telecom Argentina--France Telecom, SA Cl. B, ADR
(b)................................................ 44,000
------------
159,273
------------
Austria - 0.3%
12,560 Bank Austria AG..................................... 625,979
------------
Belgium - 0.3%
20,562 Fortis (B).......................................... 695,913
------------
Brazil - 0.3%
9,000,000 Banco Bradesco SA................................... 44,066
3,400,000 Companhia Brasileira de Distribuicao Grupo Pao de
Acucar............................................. 73,212
3,400 Companhia Energetica de Minas Gerais, ADR........... 48,595
3,500,000 Companhia Siderurgica de Tubarao.................... 29,787
3,650 Companhia Vale do Rio Doce, ADR (b)................. 71,185
1,500,000 Eletropaulo Metropolitana-Electricidade de Sao Paulo
SA................................................. 68,444
2,800 * Embratel Participacoes SA, ADR (b)................ 36,050
2,700,000 Gerdau SA........................................... 48,864
90,800 Industrias Klabin de Papel e Celulose SA............ 47,949
710,000 Petroleo Brasileiro SA.............................. 113,025
4,200 Tele Norte Leste Participacoes SA, ADR (b).......... 70,875
2,600 Telesp Celular Participacoes SA (b)................. 64,025
2,500 Uniao de Bancos Brasileiros SA, GDR................. 57,812
------------
773,889
------------
Canada - 0.8%
30,300 Barrick Gold Corp................................... 554,869
27,500 * Canadian Natural Resources Ltd.................... 605,546
42,700 Placer Dome, Inc.................................... 517,737
------------
1,678,152
------------
Channel Islands - 0.0%
5,300 Telesp Participacpoes SA ADR (b).................... 85,794
------------
Chile - 0.1%
4,300 Banco De A Edward................................... 62,888
2,350 Chilectra SA, ADR................................... 41,789
3,600 Embotelladora Andina SA, Ser. A (b)................. 58,500
4,000 Empresa Nacional de Electric, ADR (b)............... 51,000
------------
214,177
------------
Croatia - 0.1%
24,000 Zagrebacka Banka Ulc Reg S, GDR..................... 213,600
------------
Denmark - 0.5%
8,892 Novo Nordisk AS, Ser. B............................. 1,069,434
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Finland - 3.3%
18,000 Hansabank........................................... $ 90,526
15,332 Huhtamaki Group..................................... 484,959
27,150 Konecranes Finance Oyj.............................. 701,327
28,770 Metra AB Oyj (b).................................... 546,005
23,808 Nokia AB Oyj........................................ 2,731,344
99,362 Stora Enso Oyj...................................... 1,309,529
45,320 UPM-Kymmene Oyj..................................... 1,433,494
------------
7,297,184
------------
France - 6.9%
11,214 Atos SA............................................. 1,440,100
11,819 Carbone Lorraine SA (b)............................. 509,794
7,770 Coflexip SA (b)..................................... 614,422
6,995 Compagnie de Saint Gobain........................... 1,216,904
12,072 Entrelec Groupe SA.................................. 585,493
23,670 Eramet SLN.......................................... 1,207,893
8,010 Imerys SA........................................... 1,148,566
840 Isis................................................ 56,416
18,742 Pechiney SA......................................... 1,051,265
9,566 Schneider SA........................................ 660,627
25,620 Total Fina SA, Cl. B................................ 3,471,098
98,160 Usinor SA........................................... 1,367,168
23,777 Vivendi (b)......................................... 1,806,241
------------
15,135,987
------------
Germany - 7.3%
1,860 * AVA Allg Handels der Verbraucher AG............... 856,996
37,540 BASF AG............................................. 1,692,057
328,000 Deutsche Bank AG.................................... 333,626
27,806 Dresdner Bank AG.................................... 1,433,613
97,250 Elexis AG........................................... 594,706
35,306 ELMOS Semiconductor AG.............................. 893,397
24,500 Epcos AG............................................ 1,006,914
35,760 * Global TeleSystems Group, Inc. (b)................ 856,005
8,729 Henkel KGaA......................................... 593,620
84,950 Lufthansa AG........................................ 1,791,340
7,104 Mannesmann AG....................................... 1,119,770
20,700 SGL Carbon AG....................................... 1,328,054
19,142 Siemens AG.......................................... 1,722,565
33,490 Veba AG............................................. 1,814,943
------------
16,037,606
------------
Greece - 0.1%
2,380 Chipita International Plc........................... 79,017
6,231 Hellenic Telecommunications Organization SA (OTE),
GDR................................................ 132,341
80 Intralot SA......................................... 2,044
5,200 Hellas Telecommunications SA........................ 111,800
------------
325,202
------------
Hong Kong - 3.3%
608,000 Aeon Credit Service Co. Ltd......................... 250,431
360,000 Amoy Properties Ltd. (b)............................ 310,465
</TABLE>
8
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
October 31, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Hong Kong - continued
320,000 Axa China Region Ltd................................. $ 275,969
110,000 Brilliance China Automotive Holdings Ltd. ........... 391,875
169,420 Cable & Wireless Hong Kong Ltd....................... 387,077
749,000 Cafe De Coral Holdings............................... 315,739
40,000 Cheung Kong Holdings Ltd............................. 364,268
331,000 China Telecom (Hong Kong) Ltd. (b)................... 1,131,169
70,553 Dah Sing Financial Group............................. 283,338
175,000 First Pacific Company Ltd. .......................... 101,364
640,000 HKR International Ltd................................ 486,034
105,000 Hutchison Whampoa Ltd................................ 1,054,190
50,000 Jardine Strategic Holdings Ltd....................... 110,500
80,000 Johnson Electric Holdings Ltd........................ 432,488
1,550,000 Oriental Press Group................................. 207,491
420,000 Pacific Century...................................... 318,960
200,000 Shui On Construction & Materials Ltd................. 278,028
25,000 Sun Hung Kai Properties Ltd.......................... 202,729
70,000 Wing Hang Bank Ltd. ................................. 228,408
680,000 Yanzhou Coal Mining Co. Ltd.......................... 225,383
------------
7,355,906
------------
Hungary - 0.1%
4,390 EGIS Gyogyszergyar RT................................ 130,875
8,890 Pannonplast RT....................................... 144,395
------------
275,270
------------
India - 0.5%
8,000 BSES Ltd............................................. 94,000
5,000 Hindalco Industries Ltd., GDR, 144A ................. 103,750
7,500 Larsen & Toubro Ltd., GDR............................ 159,750
7,500 Larsen & Toubro Ltd., GDS............................ 159,750
17,000 Mahanagar Telep Ni, GDR.............................. 136,000
40,000 Mahindra & Mahindra Ltd.............................. 304,000
1,500 Tata Electric Companies, GDR......................... 247,500
------------
1,204,750
------------
Indonesia - 0.9%
4,800,000 Dankos Labs.......................................... 596,491
1,015,000 PT Astra International Tbk........................... 500,822
1,436,000 PT Bank Nisp Tbk..................................... 251,930
36,000 PT Bat Indonesia Tbk................................. 115,790
150,000 PT HM Sampoerna...................................... 348,684
234,000 PT Indofood Sukses Makmur Tbk........................ 277,105
------------
2,090,822
------------
Ireland - 0.3%
67,060 Irish Life & Permanent Plc........................... 677,975
------------
Israel - 0.1%
11,503 Elbit Systems Ltd.................................... 163,965
------------
Italy - 0.6%
55,840 Grupo Editoriale L'Espresso.......................... 1,215,766
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Japan - 15.0%
70,000 Aoyama Trading Co.................................... $ 2,237,581
360,000 Asahi Glass Co. Ltd.................................. 2,864,795
170,000 Bank Of Tokyo-Mitsubishi Ltd......................... 2,819,870
200,000 Chugai Pharmaceutical Co. Ltd. (b)................... 2,380,609
9,000 Funai Electric Co. Ltd............................... 4,077,754
400,000 Furukawa Electric Co. Ltd............................ 2,918,166
160,000 Kokusai Securities Co. Ltd. (b)...................... 2,763,043
320,000 Nippon Express Co. Ltd............................... 2,266,955
300,000 Oji Paper Co. Ltd.................................... 2,116,631
140,000 Ricoh Co. Ltd. (b)................................... 2,285,961
59,000 Shin Etsu Chemical Co. Ltd........................... 2,435,325
375,000 Sumitomo Trust & Banking Co. Ltd..................... 3,837,293
------------
33,003,983
------------
Korea - 0.5%
2 Citc Seoul Access Trust.............................. 14,750
5,000 Korea Telecom Corp................................... 176,250
17,000 Pohang Iron & Steel Ltd. ADR (b)..................... 567,375
1,154 Samsung Electronics Ltd., GDR, 144A.................. 97,513
3,575 * Samsung Electronics Ltd., GDS, 144A................ 209,137
------------
1,065,025
------------
Malaysia - 0.5%
84,000 Boustead Holdings Berhad............................. 66,316
60,000 Nanyang Press Holdings............................... 74,526
80,000 Resorts World Berhad................................. 229,474
50,000 Tanjong Plc.......................................... 105,263
100,000 Telekom Malaysia Berhad.............................. 307,895
54,000 UMW Holdings Berhad.................................. 95,921
100,000 * United Engineers Ltd. Berhad....................... 169,737
------------
1,049,132
------------
Mexico - 0.5%
30,300 ALFA SA de CV, Ser. A................................ 116,042
10,500 Carso Global Telecom................................. 69,746
3,360 Cemex SA de CV....................................... 75,600
54,500 Cifra SA de CV, Ser. V............................... 85,526
7,400 Grupo Carso SA de CV, ADR (b)........................ 61,765
32,900 Grupo Financiero Banamex AC, Ser. O.................. 82,122
32,600 Grupo Modelo SA de CV, Ser. C........................ 79,512
2,060 * Grupo Televisa SA, ADR............................. 87,550
3,590 Telefonos de Mexico SA, ADR (b)...................... 306,945
4,600 Tubos de Acero de Mexico SA.......................... 49,414
------------
1,014,222
------------
Netherlands - 3.2%
33,060 Akzo Nobel NV (b).................................... 1,427,037
21,363 DSM NV............................................... 810,867
22,390 IHC Caland NV........................................ 973,784
37,420 Indigo NV (b)........................................ 102,905
16,956 Philips Electronics NV............................... 1,743,061
</TABLE>
9
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
October 31, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Netherlands - continued
15,325 Vendex International NV.............................. $ 448,382
47,790 VNU NV............................................... 1,619,954
------------
7,125,990
------------
Norway - 0.3%
50,020 Petroleum Geo-Services............................... 747,263
------------
Philippines - 0.1%
108,000 ABS-CBN Broadcasting Corp............................ 118,504
27,200 Benpres Holdings Corp................................ 85,000
1,500,000 Filinvest Development Corp........................... 93,516
------------
297,020
------------
Portugal - 0.6%
203,385 BPI-Society Gestora, Restigered Shares............... 814,868
17,585 Jeronimo Martins SGPS SA............................. 492,071
------------
1,306,939
------------
Singapore - 0.9%
250,000 Hong Leong Finance................................... 460,427
1 Overseas Chinese Bank................................ 7
62,809 Overseas Union Bank Ltd.............................. 272,179
39,000 Sembcorp Industries Ltd.............................. 49,293
29,000 * Singapore Press Holdings Ltd....................... 497,442
47,000 Singapore Telecom (b)................................ 89,389
80,000 United Overseas Bank................................. 606,681
------------
1,975,418
------------
Spain - 2.1%
11,167 Acciona SA........................................... 539,246
20,716 * Baron de Ley SA.................................... 556,969
36,700 Empresa Nacional de Celulosas SA (b)................. 688,764
95,195 Prosegur, CIA de Seguridad SA........................ 782,877
46,520 Tabacalera, Ser. A (b)............................... 767,606
61,104 Telefonica SA........................................ 1,007,607
29,960 Viscofan Envolturas Celuosicas SA.................... 246,073
------------
4,589,142
------------
Sweden - 2.0%
51,760 Celsius AB, Ser. B................................... 814,293
58,415 Ericsson LM Telephone, Ser B......................... 2,436,392
71,877 Sparbanken Sverige AB, Ser. A........................ 1,148,307
------------
4,398,992
------------
Switzerland - 1.6%
3,404 Geberit International AG............................. 1,004,466
911 Nestle SA............................................ 1,760,213
3,670 Novartis AG.......................................... 362,876
503 Sulzer AG............................................ 353,713
------------
3,481,268
------------
Taiwan - 0.5%
5,000 Formosa Growth Fund Ltd. ............................ 105,000
5,800 Hon Hai Precision Industry Co., Ltd.................. 95,004
8,600 Synnex Technology International Corp................. 169,678
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Taiwan - continued
2,000 Taipei Fund.......................................... $ 179,000
30,000 Taiwan Opportunities Fund LT......................... 325,500
7,257 Taiwan Semiconductor Manufacturing Co. Ltd. (b)...... 251,274
------------
1,125,456
------------
Thailand - 0.4%
50,000 BEC World Public Co. Ltd............................. 310,840
40,000 Electricity Generating Public Co..................... 52,843
200,000 Siam Commercial Bank................................. 226,655
64,900 Siam Pulp & Paper.................................... 136,171
41,300 Thai Airways International Plc....................... 49,479
------------
775,988
------------
Turkey - 0.3%
17,200,000 Akbank Turk Anonim Sirket............................ 268,320
42,000 Haci Omer Sabanci Holdings SA........................ 302,400
------------
570,720
------------
United Kingdom - 11.3%
30,650 Abbey National Bank Plc.............................. 598,580
30,000 Allied Domecq........................................ 168,171
44,700 Arcadia Group Plc.................................... 112,428
35,000 Arriva Plc........................................... 184,117
27,999 Associated British Ports Holdings Plc................ 139,003
13,000 Bank Of Scotland..................................... 162,631
16,720 Barclays Bank Plc.................................... 513,163
27,585 Bass Plc............................................. 302,464
22,397 BBA Group Plc........................................ 156,478
42,000 BG Plc............................................... 233,368
46,333 Blue Circle Industries Plc........................... 215,171
50,000 Body Shop International Plc.......................... 95,757
19,000 Britannic Assurance Plc.............................. 339,827
58,000 British Aerospace Plc................................ 343,246
49,000 British Airways Plc.................................. 250,514
59,500 British America Tobacco Industries Plc............... 395,160
225,000 British Biotech...................................... 107,264
45,000 British-Borneo Oil & Gas Plc......................... 119,100
80,000 Burford Holdings Plc................................. 132,827
15,833 Burmah Castrol Plc................................... 273,032
40,000 Carillion Plc........................................ 83,221
20,000 Celltech Plc......................................... 149,595
17,000 Chelsfield Plc....................................... 90,825
90,000 Coats Viyella Plc.................................... 69,167
39,000 Cookson Group Plc.................................... 119,813
32,400 D.F.S. Furniture Co. Plc............................. 148,069
44,000 Debenhams Retail Plc................................. 186,615
37,000 Diageo Plc........................................... 376,502
15,500 Dixons Group Plc..................................... 274,679
51,700 * Elan Corp. Plc, ADR (b)............................ 1,331,275
27,800 EMAP Plc............................................. 361,033
37,000 Enterprise Oil Plc................................... 263,369
89,300 Fairview Holdings Plc................................ 201,116
64,000 First Choice Holidays Plc............................ 122,043
</TABLE>
10
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
October 31, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United Kingdom - continued
18,000 Frogmore Estates Plc.................................. $ 137,594
40,000 Gallaher Group Plc.................................... 240,996
14,800 Garban Plc............................................ 48,903
24,500 Granada Group Plc..................................... 194,531
22,000 Great University Stores Plc........................... 166,724
35,000 Greenalls Group Plc................................... 178,363
40,000 Halma Plc............................................. 71,016
66,412 Hilton Group Plc...................................... 203,065
10,000 Housing & Commercial Bank............................. 265,000
40,312 HSBC Holdings Plc (Hong Kong exchange) (b)............ 485,155
36,750 Iceland Group Plc..................................... 174,896
36,000 III Group Plc......................................... 449,771
34,000 Imperial Chemical Industries Plc...................... 338,429
15,000 Inchcape Plc.......................................... 74,715
11,000 Indian Opportunities Fund............................. 150,700
49,930 Invesco English and International Trust Plc........... 143,640
28,000 Land Securities Plc................................... 348,901
40,000 Legal & General Group Plc............................. 111,128
66,000 Lloyds TSB Group Plc.................................. 913,547
80,000 Medeva Plc............................................ 203,843
78,666 Meggitt Plc........................................... 196,565
5,267 N Brown Group Plc..................................... 32,642
59,500 National Power Plc.................................... 403,963
28,250 National Westminster Bank Plc......................... 638,088
49,326 Next Plc.............................................. 532,336
93,400 Northern Foods Plc.................................... 145,863
35,500 Nycomed Amersham Plc.................................. 218,260
17,000 P & O Finance BV...................................... 244,530
144,000 Pilkington Plc........................................ 216,008
24,959 PowderJect Pharmaceuticals Plc........................ 327,010
26,000 Powergen Plc.......................................... 229,521
19,750 Prudential Corp. Plc.................................. 309,735
14,600 Railtrack Group Plc................................... 299,052
44,750 Rank Group............................................ 139,405
19,100 Reckitt & Colman Plc.................................. 231,721
22,550 Rio Tinto Plc......................................... 385,156
131,000 Rolls-Royce Plc....................................... 465,158
47,000 Sainsbury (J.) Plc.................................... 282,397
14,200 Scot & Newcastle...................................... 132,357
32,000 Scot & Southern Energy Plc............................ 304,056
65,000 Scotia Holdings Plc................................... 160,280
24,500 Scottish Power Plc.................................... 226,751
28,550 Securicor Plc......................................... 279,253
100,000 Shell Transportation & Trading Co. Plc................ 766,057
428,500 Signet Group Plc...................................... 369,816
32,750 Smith (H.W.) Group Plc................................ 239,309
17,193 Smiths Industries Plc................................. 233,457
21,000 Spirax-Sarco Engineering Plc.......................... 160,872
40,000 Stagecoach Holdings................................... 113,758
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United Kingdom - continued
38,075 Standard Chartered Bank.............................. $ 533,279
39,330 Sun Life & Provincial Holdings Plc................... 293,693
25,187 Tate & Lyle Plc...................................... 164,998
104,400 Tesco Plc............................................ 310,209
57,428 The Throgmorton Trust Plc............................ 73,873
39,500 TI Group Plc......................................... 266,229
30,000 Tomkins Plc.......................................... 101,563
22,500 Trinity Plc.......................................... 208,981
41,000 Unilever Plc......................................... 380,809
43,000 United Assurance Group CNV........................... 275,682
20,947 United Utilities Plc................................. 207,642
30,622 Wolseley Plc......................................... 208,657
------------
24,829,531
------------
United States - 34.2%
9,500 Adelphia Communications Corp......................... 518,938
4,200 Alcoa, Inc........................................... 255,150
5,000 Allied Riser Communications Corp..................... 90,313
4,300 Allied Signal, Inc................................... 244,831
8,300 * AMFM, Inc. (b)..................................... 581,000
31,300 Associates First Capital Corp., Cl. A................ 1,142,450
50,267 AT&T Corp............................................ 2,349,982
20,000 Atlantic Korean Smaller Cy Fund...................... 275,000
23,800 Baker Hughes, Inc.................................... 664,913
48,400 BankAmerica Corp..................................... 3,115,750
10,600 Bell Atlantic Corp................................... 688,337
11,900 Bristol-Myers Squibb Co.............................. 914,069
8,700 Cardinal Health, Inc................................. 375,188
12,000 * CBS Corp. ......................................... 585,750
2,700 Chase Manhattan Corp. ............................... 235,913
17,400 * Ciena Corp. ....................................... 613,350
22,200 * Cisco Systems, Inc................................. 1,642,800
35,600 Citigroup, Inc. ..................................... 1,926,850
15,000 Coastal Corp......................................... 631,875
11,500 Coca Cola Co......................................... 678,500
22,500 Coca Cola Enterprises, Inc........................... 575,156
29,100 Columbia / HCA Healthcare Corp....................... 702,037
19,000 Comcast Corp., Cl. A................................. 800,375
14,400 Concord EFS, Inc..................................... 389,700
24,000 Conoco, Inc., Cl. A (b).............................. 658,500
24,000 * Cox Communications, Inc. Cl. A (b)................. 1,090,500
9,000 Dayton Hudson Corp. ................................. 581,625
21,250 * Dell Computer Corp. ............................... 852,656
14,700 Donaldson Lufkin & Jenrette, Inc..................... 760,725
11,000 Dow Chemical Co...................................... 1,300,750
7,064 Eesti Telekom........................................ 111,964
13,000 El Paso Energy Corp.................................. 533,000
15,000 * EMC Corp........................................... 1,095,000
10,000 Emerson Electric Co.................................. 600,625
16,800 Enron Corp........................................... 670,950
13,500 EOG Resources, Inc. (b).............................. 280,969
</TABLE>
11
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
October 31, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United States - continued
12,000 Federal Home Loan Mortgage Corp....................... $ 648,750
10,300 Federal National Mortgage Assoc....................... 728,725
19,000 * Federated Department Stores, Inc. (b)............... 811,062
21,319 Fleet Boston Corp..................................... 930,041
15,800 Fluor Corp............................................ 630,025
18,500 Ford Motor Co......................................... 1,015,187
7,000 Fundtech Ltd. ........................................ 93,625
4,000 Gedeon Richter Rt. ................................... 182,517
18,100 General Electric Co................................... 2,453,681
13,000 GTE Corp. ............................................ 975,000
110,400 * HEALTHSOUTH Corp. .................................. 634,800
9,200 Home Depot, Inc....................................... 694,600
14,500 Intel Corp. .......................................... 1,122,844
4,000 International Business Machines Corp.................. 393,500
38,400 International Paper Co. .............................. 2,020,800
14,400 Johnson & Johnson..................................... 1,508,400
30,000 Kinder Morgan, Inc.................................... 603,750
32,400 * Kroger Co........................................... 674,325
6,400 LG Electronics........................................ 65,920
6,000 Lilly (Eli) & Co...................................... 413,250
41,700 Lucent Technologies, Inc.............................. 2,679,225
45,000 MBNA Corp............................................. 1,243,125
18,000 McDonald's Corp. ..................................... 742,500
13,400 * MCI WorldCom, Inc. ................................. 1,149,887
13,800 Mead Corp............................................. 496,800
34,200 Merck & Co., Inc...................................... 2,721,037
4,000 * Micron Technology, Inc.............................. 285,250
29,200 * Microsoft Corp...................................... 2,702,825
29,800 Molex, Inc............................................ 983,400
3,900 Motorola, Inc. ....................................... 380,006
7,200 Noble Affiliates, Inc................................. 182,250
7,200 * Oracle Systems Corp................................. 342,450
17,000 Pepsico, Inc. ........................................ 589,688
33,000 Pfizer, Inc. ......................................... 1,303,500
15,000 Pharmacia & Upjohn, Inc............................... 809,062
9,600 Phelps Dodge Corp..................................... 541,200
31,000 Philip Morris Companies, Inc.......................... 780,812
54,000 * Republic Services, Inc.............................. 661,500
10,300 Ritek Corp............................................ 137,505
6,200 SBC Communications, Inc............................... 315,813
18,900 * Smurfit Container Corp. ............................ 408,713
25,200 * Staples, Inc........................................ 559,125
37,000 Stewart Enterprises, Inc., Cl. A...................... 175,750
9,500 * Sybron International Corp. ......................... 226,219
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United States - continued
5,000 Synnex Technology International Corp................ $ 97,500
19,000 Texaco, Inc......................................... 1,166,125
22,900 The Williams Companies, Inc......................... 858,750
12,800 Tosco Corp.......................................... 324,000
9,000 Travelers Property Casualty Corp., Cl. A............ 324,000
5,000 Triton PCS Holdings, Inc. .......................... 176,250
17,000 Tyco International Ltd.............................. 678,938
59,200 * United States Foodservice......................... 1,135,900
11,400 Unocal Corp......................................... 393,300
8,600 * Vitesse Semiconductor Corp. ...................... 394,525
11,400 Wal-Mart Stores, Inc................................ 646,238
13,200 Warner-Lambert Co. ................................. 1,053,525
16,900 Waste Management, Inc............................... 310,538
16,600 * Weatherford International, Inc. (b)............... 562,325
11,800 Wells Fargo Co. .................................... 564,925
3,600 Yahoo!, Inc. (b).................................... 644,625
26,000 York International Corp............................. 612,625
------------
75,498,024
------------
Total Common Stocks (cost $201,315,399)............. 220,150,757
------------
PREFERRED STOCKS - 0.6%
Germany - 0.6%
475 Porsche AG.......................................... 1,297,114
------------
Total Preferred Stock
(cost $916,058).................................... 1,297,114
------------
WARRANTS - 0.1%
Malaysia - 0.0%
20,000 * United Engineers Ltd. Berhad, expire 11/22/2002... 0
------------
Singapore - 0.1%
300,000 Deutsche Bank AG, expire 3/28/2002.................. 230,214
------------
Total Warrants
(cost $154,576).................................... 230,214
------------
RIGHTS - 0.0%
Brazil - 0.0%
8 * Companhia Brasileira de Distribuicao Grupo Pao de
Acucar............................................. 0
------------
United Kingdom - 0.0%
80,000 * Burford Holdings Plc.............................. 0
------------
Total Rights
(cost $0).......................................... 0
------------
</TABLE>
12
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
October 31, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS - 0.4%
Malaysia - 0.0%
$ 70,000 Telekom Malaysia Berhad
4.00%, 10/3/2004.................................... $ 58,100
------------
United Kingdom - 0.0%
30,392 Burmah Castrol Plc
1.00%, 12/31/2009................................... 49,961
19,000 Scotia Holdings
8.50%, 3/26/2002.................................... 25,768
------------
75,729
------------
United States - 0.4%
835,000 Williams Communications
Group, Inc. 10.875%, 10/1/2009...................... 860,050
------------
Total Corporate Bonds
(cost $979,585)..................................... 993,879
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 9.6%
$20,253,588 Navigator Prime Portfolio - 9.2% (cost $20,253,588)
(c)............................................... $ 20,253,588
------------
939,244 Repurchase Agreement - 0.4% State Street Bank &
Trust Co., purchased 10/29/1999,
5.16%, maturing 11/1/1999,
maturity value $939,648
(cost $939,244) (a)............................... 939,244
------------
Total Short-Term Investments
(cost $21,192,832)................................ 21,192,832
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $224,558,450)......................... 110.6% 243,864,796
Other Assets and
Liabilities - net........................... (10.6) (23,398,825)
----- ------------
Net Assets - ................................ 100.0% $220,465,971
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by the U.S. government
and/or agency obligations based on market prices plus accrued interest at
October 31, 1999.
(b) All or a portion of this security is on loan (See Note 6).
(c) Represents investment in cash collateral received for securities on loan.
* Non-income producing security.
144A Security that may be resold to "qualified institutional buyers" under Rule
144A of the Securities Act of 1933. This security has been determined to
be liquid under guidelines established by the Board of Trustees.
Summary of Abbreviations
ADR American Depository Receipt
GDR Global Depository Receipt
GDS Global Depository Shares
At October 31, 1999, the Fund held securities in the following indus-
tries:
<TABLE>
<CAPTION>
Percent of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking........................................... $ 22,605,035 9.3%
Mutual Fund Shares................................ 20,253,588 8.3%
Telecommunications................................ 19,679,369 8.1%
Financial Services................................ 15,513,979 6.4%
Health & Personal Care............................ 15,418,489 6.3%
Electrical & Electronics.......................... 15,253,437 6.3%
Food & Household Products......................... 13,423,068 5.5%
Chemicals......................................... 12,774,138 5.2%
Energy Sources.................................... 11,384,572 4.7%
Technology........................................ 10,385,596 4.3%
Forest Products & Paper........................... 8,658,850 3.5%
Multi-Industry.................................... 7,030,730 2.9%
Broadcasting & Publishing......................... 6,773,420 2.8%
Transportation.................................... 6,068,000 2.5%
Utilities-Electric, Gas & Water................... 5,480,647 2.2%
Beverages & Tobacco............................... 4,796,367 2.0%
Merchandising..................................... 4,736,610 1.9%
Wholesale & International Trade................... 4,679,858 1.9%
Business & Public Services........................ 4,143,780 1.7%
Automobiles....................................... 3,974,156 1.6%
Other............................................. 30,831,107 12.6%
------------ ------
$243,864,796 100.0%
============ ======
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments
September 30, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 97.3%
Argentina - 0.1%
1,600 Inversiones y Representaciones SA, GDR.............. $ 45,000
11,120 Perez Companc SA, Cl. B............................. 67,286
1,600 Telecom Argentina - France Telecom SA, Cl. B, ADR
(b)................................................ 42,700
------------
154,986
------------
Austria - 0.3%
12,560 Bank Austria AG..................................... 625,552
------------
Belgium - 0.3%
20,562 Fortis (B).......................................... 670,315
------------
Brazil - 0.3%
3,400,000 Companhia Brasileira de Distribuicao Grupo Pao de
Acucar............................................. 68,638
3,400 Companhia Energetica de Minas Gerais, ADR........... 51,373
3,500,000 Companhia Siderurgica de Tubarao.................... 29,395
3,650 Companhia Vale do Rio Doce, ADR (b)................. 76,993
1,500,000 Eletropaulo Metropolitana-Electricidade de Sao Paulo
SA................................................. 71,205
2,800 * Embratel Participacoes SA, ADR (b)................ 32,025
2,700,000 Gerdau SA........................................... 42,254
90,800 Industrias Klabin de Papel e
Celulose SA........................................ 48,313
710,000 Petroleo Brasileiro SA.............................. 106,296
4,200 Tele Norte Leste Participacoes SA, ADR (b).......... 65,100
2,600 Telesp Celular Participacoes SA (b)................. 67,925
2,500 Uniao de Bancos Brasileiros SA,
GDR (b)............................................ 44,219
------------
703,736
------------
Canada - 0.9%
30,300 Barrick Gold Corp................................... 659,025
27,500 * Canadian Natural Resources Ltd.................... 643,888
42,700 Placer Dome, Inc.................................... 635,162
------------
1,938,075
------------
Chile - 0.1%
2,400 Banco De A Edward................................... 38,400
2,350 Chilectra SA, ADR................................... 44,548
3,600 Embotelladora Andina SA, Ser. A (b)................. 62,325
4,000 Empresa Nacional de Electric, ADR................... 52,000
------------
197,273
------------
Croatia - 0.1%
27,000 Zagrebacka Banka Ulc Reg S, GDR..................... 211,950
------------
Czech Republic - 0.0%
9,924 Komercni Banka AS................................... 84,354
------------
Denmark - 0.3%
6,155 Novo Nordisk AS, Ser. B............................. 733,422
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Finland - 3.0%
18,000 Hansabank........................................... $ 90,129
15,332 Huhtamaki Group..................................... 485,118
10,860 Konecranes Finance Oyj.............................. 295,027
28,770 Metra AB Oyj........................................ 551,702
23,808 Nokia AB Oyj........................................ 2,133,099
99,362 Stora Enso Oyj...................................... 1,317,898
45,320 UPM-Kymmene Oyj..................................... 1,545,013
------------
6,417,986
------------
France - 8.5%
11,214 Atos SA............................................. 1,438,398
20,503 * Banque Nationale de Paris......................... 1,637,123
24,345 Carbone Lorraine SA (b)............................. 1,296,797
7,770 Coflexip SA (b)..................................... 726,788
6,995 Compagnie de Saint Gobain........................... 1,304,121
12,072 Entrelec Groupe SA.................................. 560,735
23,670 Eramet SLN.......................................... 1,313,797
8,010 Imerys SA........................................... 1,214,310
840 Isis................................................ 61,032
18,742 Pechiney SA......................................... 1,038,273
19,116 Schneider SA........................................ 1,399,091
9,370 Societe Nationale Elf Aquitaine SA.................. 1,637,101
15,050 Total Fina SA, Cl. B (b)............................ 1,891,954
98,160 Usinor SA........................................... 1,385,615
21,713 Vivendi (b)......................................... 1,525,551
------------
18,430,686
------------
Germany - 4.6%
1,860 * AVA Allg Handels der Verbraucher AG............... 752,989
37,540 BASF AG............................................. 1,599,729
328,000 Deutsche Bank AG.................................... 314,679
14,890 Dresdner Bank AG.................................... 701,147
97,250 Elexis AG........................................... 500,413
35,760 * Global TeleSystems Group, Inc. (b)................ 705,143
8,729 Henkel KGaA......................................... 548,667
67,250 Lufthansa AG........................................ 1,230,857
9,448 Mannesmann AG....................................... 1,509,813
10,916 Siemens AG.......................................... 901,857
23,920 Veba AG............................................. 1,311,109
------------
10,076,403
------------
Greece - 0.3%
6,480 Chipita International Plc........................... 203,701
6,231 Hellenic Telecommunications Organization SA (OTE),
GDR................................................ 145,391
5,200 Hellas Telecommunications SA (b).................... 98,150
8,840 Minoan Lines........................................ 222,024
------------
669,266
------------
Hong Kong - 3.0%
608,000 Aeon Credit Service Co. Ltd......................... 270,038
360,000 Amoy Properties Ltd................................. 324,416
320,000 Axa China Region Ltd................................ 210,098
</TABLE>
14
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
September 30, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Hong Kong - continued
22,000 Brilliance China Automotive Holdings Ltd. ........... $ 578,875
169,420 Cable & Wireless Hong Kong Ltd. ..................... 369,689
749,000 Cafe De Coral Holdings............................... 332,662
40,000 Cheung Kong Holdings Ltd............................. 333,428
281,000 China Telecom (Hong Kong) Ltd. (b)................... 864,582
47,553 Dah Sing Financial Group............................. 190,388
220,000 Henderson Investment Ltd. (b)........................ 141,610
640,000 HKR International Ltd................................ 494,348
91,000 Hutchison Whampoa Ltd................................ 843,482
50,000 Jardine Strategic Holdings Ltd. ..................... 102,000
80,000 Johnson Electric Holdings Ltd. ...................... 386,210
125,293 New World Development Co. Ltd. (b)................... 274,207
1,550,000 Oriental Press Group................................. 209,519
90,000 Pacific Century...................................... 75,890
200,000 Shui On Construction & Materials Ltd. ............... 292,232
800,000 Yanzhou Coal Mining Co. Ltd.......................... 308,968
------------
6,602,642
------------
Hungary - 0.1%
2,390 EGIS Gyogyszergyar RT................................ 70,233
8,890 Pannonplast RT....................................... 145,237
------------
215,470
------------
India - 0.5%
8,000 BSES Ltd............................................. 96,000
5,000 Hindalco Industries Ltd., GDR, 144A.................. 136,250
7,500 Larsen & Toubro Ltd., GDR............................ 163,125
7,500 Larsen & Toubro Ltd., GDS............................ 163,125
17,000 Mahanagar Telep Ni, GDR.............................. 165,750
24,000 Mahindra & Mahindra Ltd.............................. 216,000
1,500 Tata Electric Companies, GDR......................... 247,500
------------
1,187,750
------------
Indonesia - 0.7%
4,800,000 Dankos Labs.......................................... 331,134
1,015,000 PT Astra International Tbk........................... 301,395
1,436,000 PT Bank Nisp Tbk..................................... 202,435
36,000 PT Bat Indonesia Tbk................................. 90,702
200,000 PT HM Sampoerna...................................... 354,529
234,000 PT Indofood Sukses Makmur Tbk........................ 222,489
------------
1,502,684
------------
Ireland - 0.8%
66,480 CRH Plc, London Exchange............................. 1,266,341
36,580 Irish Life & Permanent Plc........................... 409,102
------------
1,675,443
------------
Israel - 0.1%
11,503 Elbit Systems Ltd. .................................. 158,256
------------
Italy - 1.0%
75,550 Grupo Editoriale L'Espresso.......................... 1,408,525
214,183 Istituto Nationale delle Assicurazioni SpA (b)....... 698,230
------------
2,106,755
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Japan - 13.9%
70,000 Aoyama Trading Co.................................... $ 2,366,975
360,000 Asahi Glass Co. Ltd. ................................ 2,492,087
170,000 Bank Of Tokyo-Mitsubishi Ltd. ....................... 2,610,717
200,000 Chugai Pharmaceutical Co. Ltd. (b)................... 2,413,939
9,000 Funai Electric Co. Ltd............................... 3,339,126
400,000 Furukawa Electric Co. Ltd............................ 2,385,761
160,000 Kokusai Securities Co. Ltd. (b)...................... 2,344,433
320,000 Nippon Express Co. Ltd............................... 2,146,057
300,000 Oji Paper Co. Ltd.................................... 2,107,735
140,000 Ricoh Co. Ltd. (b)................................... 2,432,724
59,000 Shin Etsu Chemical Co. Ltd. ......................... 2,460,527
375,000 Sumitomo Trust & Banking Co. Ltd..................... 2,969,286
------------
30,069,367
------------
Korea - 0.5%
2 Citc Seoul Access Trust.............................. 16,250
5,000 Korea Telecom Corp................................... 185,000
17,000 Pohang Iron & Steel Ltd., ADR (b).................... 532,312
542 Samsung Electronics Ltd.,
GDR, 144A........................................... 43,035
4,187 Samsung Electronics Ltd.,
GDS, 144A........................................... 260,641
------------
1,037,238
------------
Malaysia - 0.4%
84,000 Boustead Holdings Berhad............................. 63,221
60,000 Nanyang Press Holdings............................... 61,263
80,000 Resorts World Berhad................................. 183,158
50,000 Tanjong Plc.......................................... 105,263
100,000 Telekom Malaysia Berhad.............................. 259,211
54,000 UMW Holdings Berhad.................................. 85,974
100,000 * United Engineers Ltd. Berhad....................... 148,684
------------
906,774
------------
Mexico - 0.4%
30,300 ALFA SA de CV, Ser. A................................ 128,044
10,500 Carso Global Telecom................................. 58,115
3,360 Cemex SA de CV....................................... 81,060
54,500 Cifra SA de CV, Ser. V............................... 85,719
7,400 Grupo Carso SA de CV, ADR (b)........................ 61,441
32,900 Grupo Financiero Banamex AC,
Ser. O.............................................. 59,128
32,600 Grupo Modelo SA de CV, Ser. C........................ 82,554
2,060 * Grupo Televisa SA, ADR............................. 82,271
3,590 Telefonos de Mexico SA, ADR (b)...................... 255,787
4,600 Tubos de Acero de Mexico SA.......................... 57,015
------------
951,134
------------
Netherlands - 3.4%
33,060 Akzo Nobel NV........................................ 1,401,774
21,363 DSM NV............................................... 847,775
</TABLE>
15
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
September 30, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Netherlands - continued
15,390 IHC Caland NV........................................ $ 764,041
37,420 Indigo NV (b)........................................ 113,429
16,956 Philips Electronics NV............................... 1,707,055
30,325 Vendex International NV.............................. 872,282
47,790 VNU NV............................................... 1,659,766
------------
7,366,122
------------
Norway - 0.4%
50,020 Petroleum Geo-Services............................... 944,735
------------
Philippines - 0.1%
27,200 Benpres Holdings Corp. .............................. 85,000
1,500,000 Filinvest Development Corp. ......................... 110,024
------------
195,024
------------
Portugal - 0.6%
40,677 BPI Society Gestora, Registered Shares............... 831,170
17,585 Jeronimo Martins SGPS SA............................. 498,329
------------
1,329,499
------------
Singapore - 1.0%
250,000 Hong Leong Finance................................... 419,364
1 Overseas Chinese Bank................................ 8
62,810 Overseas Union Bank Ltd.............................. 279,114
29,000 * Singapore Press Holdings Ltd......................... 457,446
47,000 Singapore Telecom.................................... 85,756
132,000 United Overseas Bank................................. 1,002,237
------------
2,243,925
------------
Spain - 2.6%
11,167 Acciona SA........................................... 514,059
20,716 * Baron de Ley SA....--................................ 702,923
36,700 Empresa Nacional de Celulosas SA (b)................. 748,733
95,195 Prosegur, CIA de Seguridad SA........................ 836,682
65,280 Tabacalera, Ser. A................................... 1,236,528
81,474 Telefonica SA........................................ 1,304,578
29,960 Viscofan Envolturas Celuosicas SA.................... 271,940
------------
5,615,443
------------
Sweden - 1.8%
51,760 Celsius AB, Ser. B................................... 805,134
58,415 Ericsson LM Telephone, Ser B......................... 1,817,308
2,952 Kinnevik Investments, Ser. B......................... 52,608
71,877 Sparbanken Sverige AB, Ser. A........................ 1,170,879
------------
3,845,929
------------
Switzerland - 1.3%
3,404 Geberit International AG............................. 952,866
911 Nestle SA............................................ 1,712,224
307 Sulzer AG............................................ 193,972
------------
2,859,062
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Taiwan - 0.4%
5,000 Formosa Growth Fund Ltd.............................. $ 107,500
3,600 Synnex Technology International Corp................. 66,780
2,000 Taipei Fund.......................................... 175,000
30,000 Taiwan Opportunities Fund LT......................... 336,000
7,257 Taiwan Semiconductor Manufacturing Co. Ltd. (b)...... 214,082
------------
899,362
------------
Thailand - 0.4%
370,000 Bank Of Ayudhya Public Co. Ltd....................... 108,518
50,000 BEC World Public Co. Ltd............................. 276,182
40,000 Electricity Generating Public Co..................... 54,748
200,000 Siam Commercial Bank................................. 179,641
64,900 Siam Pulp & Paper.................................... 123,725
41,300 Thai Airways International Plc....................... 55,517
------------
798,331
------------
Turkey - 0.3%
17,200,000 Akbank Turk Anonim Sirket............................ 257,279
42,000 Haci Omer Sabanci Holdings SA........................ 273,000
4,000,000 Yapi ve Kredi Bankasi AS............................. 54,629
------------
584,908
------------
United Kingdom - 11.8%
30,650 Abbey National Bank Plc.............................. 541,360
30,000 Allied Domecq........................................ 170,865
44,700 Arcadia Group Plc.................................... 124,903
35,000 Arriva Plc........................................... 204,528
27,999 Associated British Ports Holdings Plc................ 137,806
12,750 BAA Plc.............................................. 128,130
16,720 Barclays Bank Plc.................................... 489,905
25,571 Bass Plc............................................. 307,485
22,397 BBA Group Plc........................................ 159,637
42,000 BG Plc............................................... 241,285
46,333 Blue Circle Industries Plc........................... 278,381
50,000 Body Shop International Plc.......................... 96,297
19,000 Britannic Assurance Plc.............................. 325,895
58,000 British Aerospace Plc................................ 381,895
49,000 British Airways Plc.................................. 274,845
59,500 British America Tobacco Industries Plc............... 510,282
225,000 British Biotech...................................... 118,519
45,000 British-Borneo Oil & Gas Plc......................... 125,927
80,000 Burford Holdings Plc................................. 151,441
15,833 Burmah Castrol Plc................................... 297,115
40,000 Carillion Plc........................................ 82,186
20,000 Celltech Plc......................................... 150,453
34,000 Chelsfield Plc....................................... 203,161
90,000 Coats Viyella Plc.................................... 81,734
39,000 Cookson Group Plc.................................... 131,606
32,400 D.F.S. Furniture Co. Plc............................. 154,134
44,000 Debenhams Retail Plc................................. 231,771
31,000 Diageo Plc........................................... 316,380
</TABLE>
16
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
September 30, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United Kingdom - continued
15,500 Dixons Group Plc...................................... $ 277,853
34,564 * Elan Corp. Plc, ADR (b)............................. 1,160,054
27,800 EMAP Plc.............................................. 384,397
37,000 Enterprise Oil Plc.................................... 252,149
89,300 Fairview Holdings Plc................................. 207,265
64,000 First Choice Holidays Plc............................. 148,544
18,000 Frogmore Estates Plc.................................. 140,741
40,000 Gallaher Group Plc.................................... 276,545
14,800 Garban Plc............................................ 50,186
24,500 Granada Group Plc..................................... 210,923
22,000 Great University Stores Plc........................... 166,766
35,000 Greenalls Group Plc................................... 181,770
40,000 Halma Plc............................................. 75,721
66,412 Hilton Group Plc...................................... 231,487
10,000 Housing & Commercial Bank............................. 191,250
55,701 HSBC Holdings Plc (Hong Kong exchange) (b)............ 636,405
36,750 Iceland Group Plc..................................... 176,945
36,000 III Group Plc......................................... 450,965
34,000 Imperial Chemical Industries Plc...................... 374,142
15,000 Inchcape Plc.......................................... 81,729
11,000 Indian Opportunities Fund............................. 154,000
49,930 Invesco English and International Trust Plc........... 137,257
28,000 Land Securities Plc................................... 380,710
40,000 Legal & General Group Plc............................. 113,252
66,000 Lloyds TSB Group Plc.................................. 807,214
80,000 Medeva Plc............................................ 179,096
78,666 Meggitt Plc........................................... 234,380
59,500 National Power Plc.................................... 463,270
28,250 National Westminster Bank Plc......................... 658,007
49,326 Next Plc.............................................. 496,104
93,400 Northern Foods Plc.................................... 162,970
35,500 Nycomed Amersham Plc.................................. 220,306
17,000 P & O Finance BV...................................... 256,890
144,000 Pilkington Plc........................................ 241,779
24,959 PowderJect Pharmaceuticals Plc........................ 304,029
26,000 Powergen Plc.......................................... 265,351
19,750 Prudential Corp. Plc.................................. 303,973
30,000 Punch Taverns Finance Plc............................. 119,855
14,600 Railtrack Group Plc................................... 308,104
44,750 Rank Group............................................ 158,375
19,100 Reckitt & Colman Plc.................................. 237,061
22,550 Rio Tinto Plc......................................... 391,611
106,000 Rolls-Royce Plc....................................... 366,858
47,000 Sainsbury (J.) Plc.................................... 293,220
14,200 Scot & Newcastle...................................... 140,481
32,000 Scot & Southern Energy Plc............................ 300,775
65,000 Scotia Holdings Plc................................... 175,474
24,500 Scottish Power Plc.................................... 222,215
28,550 Securicor Plc......................................... 280,567
100,000 Shell Transportation & Trading Co. Plc................ 744,037
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United Kingdom - continued
428,500 Signet Group Plc..................................... $ 350,913
32,750 Smith (H.W.) Group Plc............................... 277,635
17,193 Smiths Industries Plc................................ 242,826
21,000 Spirax-Sarco Engineering Plc......................... 181,482
38,075 Standard Chartered Bank.............................. 548,408
39,330 Sun Life & Provincial Holdings Plc................... 307,520
25,187 Tate & Lyle Plc...................................... 154,958
48,500 Telewest Communications Plc.......................... 176,437
104,400 Tesco Plc............................................ 326,520
57,428 The Throgmorton Trust Plc............................ 77,989
39,500 TI Group Plc......................................... 289,343
30,000 Tomkins Plc.......................................... 125,433
22,500 Trinity Plc.......................................... 206,297
31,000 Unilever Plc......................................... 291,376
43,000 United Assurance Group CNV........................... 277,466
20,947 United Utilities Plc................................. 228,608
30,622 Wolseley Plc......................................... 212,213
------------
25,486,408
------------
United States - 33.0%
9,500 Adelphia Communications Corp. (b) . 558,719
4,200 Alcoa, Inc........................................... 260,663
4,300 Allied Signal, Inc................................... 257,731
13,300 * AMFM, Inc. (b)..................................... 809,638
10,100 Associates First Capital Corp., Cl. A................ 363,600
25,967 AT&T Corp............................................ 1,129,564
20,000 Atlantic Korean Smaller Cy Fund...................... 275,000
14,500 Avon Products, Inc. ................................. 359,781
23,800 Baker Hughes, Inc.................................... 690,200
26,400 BankAmerica Corp..................................... 1,470,150
18,000 BankBoston Corp...................................... 780,750
42,200 Bell Atlantic Corp................................... 2,840,587
11,900 Bristol-Myers Squibb Co.............................. 803,250
8,700 Cardinal Health, Inc................................. 474,150
12,000 * CBS Corp........................................... 555,000
2,700 Chase Manhattan Corp................................. 203,513
17,400 * Ciena Corp. ....................................... 635,100
22,200 * Cisco Systems, Inc................................. 1,522,087
35,600 Citigroup, Inc....................................... 1,566,400
25,000 Coastal Corp......................................... 1,023,437
22,500 Coca Cola Enterprises, Inc. (b)...................... 507,656
29,100 Columbia / HCA Healthcare Corp....................... 616,556
19,000 Comcast Corp., Cl. A................................. 757,625
14,400 Concord EFS, Inc..................................... 297,000
24,000 Conoco, Inc., Cl. A (b).............................. 666,000
24,000 * Cox Communications, Inc., Cl. A.................... 1,002,000
15,000 Dayton Hudson Corp. ................................. 900,938
62,500 * Dell Computer Corp. ............................... 2,613,281
7,064 Eesti Telekom........................................ 118,322
20,000 El Paso Energy Corp. ................................ 796,250
15,000 * EMC Corp........................................... 1,071,562
10,000 Emerson Electric Co.................................. 631,875
</TABLE>
17
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
September 30, 1999
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United States - continued
16,800 Enron Corp............................................ $ 693,000
13,500 EOG Resources, Inc. (b)............................... 286,875
10,300 Federal National Mortgage Assoc. ..................... 645,681
19,000 * Federated Department Stores,
Inc. (b)............................................. 830,063
15,800 Fluor Corp............................................ 635,950
23,000 Ford Motor Co......................................... 1,154,312
6,900 * Gateway, Inc. ...................................... 306,619
2,000 Gedeon Richter Rt..................................... 82,500
24,100 General Electric Co................................... 2,857,356
13,000 GTE Corp.............................................. 999,375
110,400 * HEALTHSOUTH Corp.................................... 669,300
5,900 Hewlett-Packard Co. .................................. 542,800
14,800 Home Depot, Inc....................................... 1,015,650
14,500 Intel Corp............................................ 1,077,531
4,000 International Business Machines Corp.................. 485,500
58,400 International Paper Co. .............................. 2,806,850
7,200 Johnson & Johnson..................................... 661,500
30,000 KN Energy, Inc........................................ 673,125
32,400 * Kroger Co........................................... 714,825
6,400 LG Electronics........................................ 66,560
6,000 Lilly (Eli) & Co...................................... 384,000
37,700 Lucent Technologies, Inc.............................. 2,445,787
22,600 * Magnetek, Inc. ..................................... 201,988
18,000 McDonald's Corp. ..................................... 774,000
13,400 * MCI WorldCom, Inc. ................................. 963,125
8,000 McKesson HBOC, Inc.................................... 232,000
17,800 Mead Corp............................................. 611,875
34,200 Merck & Co., Inc...................................... 2,216,587
4,000 * Micron Technology, Inc.............................. 266,250
29,200 * Microsoft Corp...................................... 2,644,425
29,800 Molex, Inc............................................ 964,775
3,900 Motorola, Inc. ....................................... 343,200
7,200 Noble Affiliates, Inc................................. 208,800
7,200 * Oracle Systems Corp................................. 327,600
34,000 Pepsico, Inc. ........................................ 1,028,500
15,000 Pharmacia & Upjohn, Inc............................... 744,375
9,600 Phelps Dodge Corp. (b)................................ 528,600
48,000 Philip Morris Companies, Inc.......................... 1,641,000
2,000 RADWARE Ltd........................................... 55,000
34,000 * Republic Services, Inc.............................. 369,750
6,200 SBC Communications, Inc............................... 316,588
18,900 * Smurfit Container Corp.............................. 408,713
25,200 * Staples, Inc........................................ 549,675
37,000 Stewart Enterprises, Inc., Cl. A...................... 224,313
15,000 * Sybron International Corp........................... 403,125
3,700 Symantec Corp. ....................................... 133,084
5,000 Synnex Technology International Corp.................. 92,500
19,000 Texaco, Inc........................................... 1,199,375
12,800 Tosco Corp. (b)....................................... 323,200
9,000 Travelers Property Casualty Corp., Cl. A.............. 265,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
United States - continued
18,000 * Tricon Global Restaurants, Inc. .................. $ 736,875
10,000 Tyco International Ltd.............................. 1,032,500
12,000 * Unisys Corp. ..................................... 541,500
59,200 * United States Foodservice......................... 1,065,600
11,400 Unocal Corp......................................... 422,513
11,400 Wal-Mart Stores, Inc................................ 542,213
6,600 Warner-Lambert Co................................... 438,075
16,900 Waste Management, Inc............................... 325,325
16,600 * Weatherford International, Inc. .................. 531,200
11,800 Wells Fargo Co. .................................... 467,575
26,000 York International Corp............................. 934,375
------------
71,669,218
------------
Total Common Stocks
(cost $197,517,724)................................ 211,165,483
------------
PREFERRED STOCKS - 0.7%
Brazil - 0.0%
9,000,000 Banco Bradesco SA................................... 42,817
------------
Channel Islands - 0.1%
5,300 Telesp Participacpoes SA, ADR (b)................... 83,475
------------
Germany - 0.6%
475 Porsche AG.......................................... 1,295,465
------------
Total Preferred Stocks
(cost $1,065,936).................................. 1,421,757
------------
WARRANTS - 0.1%
France - 0.0%
5,713 * Banque Nationale de Paris, expire 7/15/2002....... 47,473
------------
Singapore - 0.1%
300,000 * Deutsche Bank AG, expire 3/28/2002................ 215,421
------------
Total Warrants
(cost $154,575).................................... 262,894
------------
RIGHTS - 0.0%
Brazil - 0.0%
575,568 * Companhia Brasileira de Distribuicao Grupo Pao de
Acucar (cost $0)................................... 0
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS - 0.1%
Malaysia - 0.0%
$ 70,000 Telekom Malaysia Berhad
4.00%, 10/3/2004................................... 58,100
------------
United Kingdom - 0.1%
30,392 Burmah Castrol Plc
1.00%, 12/31/2009.................................. 50,028
19,000 Scotia Holdings
8.50%, 3/26/2002................................... 25,177
------------
75,205
------------
Total Corporate Bonds
(cost $150,865).................................... 133,305
------------
</TABLE>
18
<PAGE>
EVERGREEN
Perpetual Global Fund
Schedule of Investments (continued)
September 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 9.4%
$17,425,612 Navigator Prime Portfolio - 8.0%
(cost $17,425,612)(c)............................. $ 17,425,612
Repurchase Agreement - 1.4%
3,006,232 State Street Bank & Trust Co., purchased 9/30/1999,
5.28%, maturing 10/1/1999, maturity value
$3,006,673 (cost $3,006,232)(a)................... 3,006,232
------------
Total Short-Term Investments
(cost $20,431,844)................................ 20,431,844
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $219,320,944)......................... 107.6% 233,415,283
Other Assets and
Liabilities - net........................... (7.6) (16,478,171)
----- ------------
Net Assets................................... 100.0% $216,937,112
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by the U.S. government
and/or agency obligations based on market prices plus accrued interest at
September 30, 1999.
(b) All or a portion of this security is on loan (See Note 6).
(c) Represents investment in cash collateral received for securities on loan.
* Non-income producing security.
144A Security that may be resold to "qualified institutional buyers" under Rule
144A of the Securities Act of 1933. This security has been determined to
be liquid under guidelines established by the Board of Trustees.
Summary of Abbreviations
ADR American Depository Receipt
GDR Global Depository Receipt
At September 30, 1999, the Fund held securities in the following industries:
<TABLE>
<CAPTION>
Percent of
Market Value Portfolio Assets
- --------------------------------------------------------------------------------
<S> <C> <C>
Banking........................................... $ 20,572,840 8.8%
Telecommunications................................ 20,502,576 8.8%
Mutual Fund Shares................................ 17,425,612 7.5%
Electrical & Electronics.......................... 15,995,129 6.9%
Food & Household Products......................... 15,299,564 6.6%
Energy Sources.................................... 12,897,762 5.5%
Health & Personal Care............................ 11,470,298 4.9%
Financial Services................................ 10,922,575 4.7%
Chemicals......................................... 10,138,933 4.3%
Technology........................................ 9,958,183 4.3%
Forest Products & Paper........................... 9,718,854 4.2%
Broadcasting & Publishing......................... 6,644,561 2.8%
Multi-Industry.................................... 6,009,785 2.6%
Merchandising..................................... 5,508,204 2.4%
Transportation.................................... 5,471,911 2.3%
Wholesale & International Trade................... 5,003,219 2.1%
Beverages & Tobacco............................... 4,879,110 2.1%
Utilities-Electric, Gas & Water................... 4,535,257 1.9%
Building Materials & Components................... 4,145,312 1.8%
Business & Public Services........................ 4,077,911 1.7%
Automobiles....................................... 3,912,905 1.7%
Machinery & Engineering........................... 3,889,165 1.7%
Other............................................. 24,435,617 10.4%
------------ ------
$233,415,283 100.0%
============ ======
</TABLE>
19
<PAGE>
EVERGREEN
Perpetual Global Fund
(formerly Mentor Perpetual Global Portfolio)
Statements of Assets and Liabilities
<TABLE>
<CAPTION>
October 31, September 30,
1999 1999
- --------------------------------------------------------------------------------
<S> <C> <C>
Assets
Identified cost of securities...................... $224,558,450 $219,320,944
Net unrealized gains or losses on securities....... 19,306,346 14,094,339
- --------------------------------------------------------------------------------
Market value of securities......................... 243,864,796 233,415,283
Cash............................................... 0 3,315
Foreign currency, at value (cost $123,971 and
$2,314,634, respectively)......................... 123,963 2,260,874
Receivable for securities sold..................... 4,747,173 2,211,094
Receivable for Fund shares sold.................... 387,169 497,711
Dividends and interest receivable.................. 390,336 523,299
Prepaid expenses and other assets.................. 65,251 11,975
- --------------------------------------------------------------------------------
Total assets....................................... 249,578,688 238,923,551
- --------------------------------------------------------------------------------
Liabilities
Payable for securities purchased................... 3,787,722 3,892,602
Payable for Fund shares redeemed................... 4,502,392 511,645
Payable for securities on loan..................... 20,253,588 17,425,612
Advisory fee payable............................... 191,109 0
Distribution Plan expenses payable................. 127,124 0
Accrued expenses and other liabilities............. 250,782 156,580
- --------------------------------------------------------------------------------
Total liabilities.................................. 29,112,717 21,986,439
- --------------------------------------------------------------------------------
Net assets.......................................... $220,465,971 $216,937,112
- --------------------------------------------------------------------------------
Net assets represented by
Paid-in capital.................................... $170,619,983 $174,285,894
Undistributed net investment income................ 0 0
Accumulated net realized gains or losses on
securities and foreign currency related
transactions...................................... 30,529,013 28,560,938
Net unrealized gains or losses on securities and
foreign currency related transactions............. 19,316,975 14,090,280
- --------------------------------------------------------------------------------
Total net assets.................................... $220,465,971 $216,937,112
- --------------------------------------------------------------------------------
Net assets consists of
Class A............................................ $ 86,341,098 $ 88,743,323
Class B............................................ 1,048,363 --
Class C............................................ 133,075,119 128,192,443
Class Y............................................ 1,391 1,346
- --------------------------------------------------------------------------------
Total net assets.................................... $220,465,971 $216,937,112
- --------------------------------------------------------------------------------
Shares outstanding
Class A............................................ 3,618,136 3,842,761
Class B............................................ 43,920 --
Class C............................................ 5,860,895 5,830,495
Class Y............................................ 58 58
- --------------------------------------------------------------------------------
Net asset value per share
Class A............................................ $ 23.86 $ 23.09
- --------------------------------------------------------------------------------
Class A--Offering price (based on sales charge of
4.75% and 5.75%, respectively).................... $ 25.05 $ 24.50
- --------------------------------------------------------------------------------
Class B............................................ $ 23.87 --
- --------------------------------------------------------------------------------
Class C............................................ $ 22.71 $ 21.99
- --------------------------------------------------------------------------------
Class Y............................................ $ 23.99 $ 23.21
- --------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
EVERGREEN
Perpetual Global Fund
Statements of Operations
<TABLE>
<CAPTION>
One-Month
Period Ended Year Ended
October 31, 1999 (a) September 30, 1999
- --------------------------------------------------------------------------------
<S> <C> <C>
Investment income
Dividends (net of foreign withholding
taxes of $15,483 and $365,642,
respectively)........................ $ 108,804 $ 3,490,181
Interest.............................. 14,583 369,186
- --------------------------------------------------------------------------------
Total investment income................ 123,387 3,859,367
- --------------------------------------------------------------------------------
Expenses
Advisory fee.......................... 191,652 2,082,585
Distribution Plan expenses............ 128,720 1,396,415
Administrative services fees.......... 27,795 255,756
Transfer agent fee.................... 33,704 315,561
Trustees' fees and expenses........... 345 3,791
Custodian fee......................... 24,579 264,914
Organization expenses................. 0 5,424
Other................................. 76,270 246,627
- --------------------------------------------------------------------------------
Total expenses........................ 483,065 4,571,073
Less: Fee credits..................... (552) 0
- --------------------------------------------------------------------------------
Net expenses.......................... 482,513 4,571,073
- --------------------------------------------------------------------------------
Net investment loss................... (359,126) (711,706)
- --------------------------------------------------------------------------------
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions
Net realized gains or losses on:
Securities............................ 2,421,010 30,856,088
Foreign currency related
transactions......................... (93,809) (829,048)
- --------------------------------------------------------------------------------
Net realized gains on securities and
foreign currency related
transactions......................... 2,327,201 30,027,040
- --------------------------------------------------------------------------------
Net change in unrealized gains on
securities and foreign currency
related transactions................. 5,226,695 22,354,768
- --------------------------------------------------------------------------------
Net realized and unrealized gains on
securities and foreign currency
related transactions................. 7,553,896 52,381,808
- --------------------------------------------------------------------------------
Net increase in net assets resulting
from operations...................... $7,194,770 $51,670,102
- --------------------------------------------------------------------------------
</TABLE>
(a) The Fund changed its fiscal year end from September 30 to October 31, ef-
fective October 31, 1999.
See Notes to Financial Statements.
21
<PAGE>
EVERGREEN
Perpetual Global Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
One-Month Year Ended September 30,
Period Ended ---------------------------
October 31, 1999 (a) 1999 1998
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment loss......... $ (359,126) $ (711,706) $ (757,843)
Net realized gains on
securities and foreign
currency related
transactions............... 2,327,201 30,027,040 14,799,387
Net change in unrealized
gains or losses on
securities and foreign
currency related
transactions............... 5,226,695 22,354,768 (25,459,714)
- --------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations................. 7,194,770 51,670,102 (11,418,170)
- --------------------------------------------------------------------------------
Distributions to shareholders
from
Net realized gains
Class A..................... 0 (4,794,385) (2,382,830)
Class C (b)................. 0 (8,456,186) (4,553,653)
Class Y..................... 0 (85) (8)
- --------------------------------------------------------------------------------
Total distributions to
shareholders............... 0 (13,250,656) (6,936,491)
- --------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold... 13,477,514 122,357,893 78,893,773
Payment for shares
redeemed................... (17,143,425) (114,784,615) (44,567,723)
Net asset value of shares
issued in reinvestment of
distributions.............. 0 12,654,681 6,732,722
- --------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
capital share
transactions............... (3,665,911) 20,227,959 41,058,772
- --------------------------------------------------------------------------------
Total increase in net
assets.................... 3,528,859 58,647,405 22,704,111
Net assets
Beginning of period......... 216,937,112 158,289,707 135,585,596
- --------------------------------------------------------------------------------
End of period............... $220,465,971 $ 216,937,112 $158,289,707
- --------------------------------------------------------------------------------
Undistributed net investment
income...................... $ 0 $ 0 $ 3,616
- --------------------------------------------------------------------------------
</TABLE>
(a) The Fund changed its fiscal year end from September 30 to October 31, ef-
fective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per-
petual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
See Notes to Financial Statements.
22
<PAGE>
EVERGREEN
Perpetual Global Fund
(formerly Mentor Perpetual Global Portfolio)
Notes to Financial Statements
1. ORGANIZATION
The Evergreen Perpetual Global Fund (the "Fund") (formerly Mentor Perpetual
Global Portfolio), is a diversified series of Evergreen International Trust
(the "Trust"), a Delaware business trust organized on September 18, 1997. The
Trust is an open-end management investment company registered under the Invest-
ment Company Act of 1940, as amended (the "1940 Act"). Prior to October 18,
1999, the Fund was a diversified series of Mentor Funds, a Massachusetts busi-
ness trust, organized on January 20, 1992 as an open-end management investment
company and registered under the 1940 Act.
Effective October 18, 1999, the Fund began offering 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 a higher ongoing distribution fee than Class A. Class B shares
are sold subject to a contingent deferred sales charge that is payable upon re-
demption and decreases depending on how long the shares have been held. 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
follow the conversion rights at the time the shares were purchased. 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 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 investment advisory clients
of First Union Corporation ("First Union") and its affiliates, certain institu-
tional investors or Class Y shareholders of record of certain other funds man-
aged by First Union and its affiliates as of December 30, 1994.
As a result of the conversion of Mentor Perpetual Global Portfolio on October
18, 1999 into the Trust, the shareholders of Class A, Class B and Class Y of
the Mentor Perpetual Global Portfolio became owners of that number of full and
fractional shares of Class A, Class C and Class Y shares, respectively, of the
Fund. Holders of Class C shares received in the conversion are subject to the
schedule of contingent deferred sales charges applicable to Class B shares of
Mentor Perpetual Global Portfolio. In addition, effective October 18, 1999, the
Fund added a new class of shares designated as Class B.
Prior to October 18, 1999, Class A shares were sold with a maximum front-end
sales charge of 5.75% payable at the time of purchase.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently fol-
lowed 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 here-
in. Actual results could differ from these estimates.
A. Valuation of Securities
Securities traded on an established exchange or included on the Nasdaq National
Market System ("NMS") are valued on the basis of the last sales price on the
exchange where the security is primarily traded. Securities traded in the over-
the-counter market are valued on the basis of the last sales price. Securities
traded on an exchange or NMS and other securities traded in the over-the-
counter market for which there has been no sale are valued at the mean between
the last reported bid and asked price. Securities for which market quotations
are not readily 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. Mutual
fund shares are valued at the net asset value of each mutual fund.
B. Repurchase Agreements
The Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held in a segregated account by the custodian on
the Fund's behalf. Collateral for certain tri-party repurchase agreements is
held at the counterparty's custodian in a segregated account for the benefit of
the Fund and the counterparty. The Fund monitors the adequacy of the collateral
daily and will require the seller to provide
23
<PAGE>
Notes to Financial Statements (continued)
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.
C. Foreign Currency
The books and records of the Fund are maintained in United States (U.S.) dol-
lars. Foreign currency amounts are translated into U.S. dollars as follows:
market value of investment securities, other assets and liabilities at the
daily rate of exchange; purchases and sales of investment securities and income
and expenses at the rate of exchange prevailing on the respective dates of such
transactions. Net unrealized foreign exchange gains or losses resulting from
changes in foreign currency exchange rates are a component of net unrealized
gains or losses on securities and foreign currency related transactions. Net
realized foreign currency gains or losses on foreign currency related transac-
tions include: foreign currency gains or losses between trade date and settle-
ment date on investment securities transactions, foreign currency related
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Fund and the amount actually received. The portion
of foreign currency gains or losses related to fluctuations in exchange rates
between the initial purchase trade date and subsequent sale trade date is in-
cluded in realized gains or losses on securities.
D. 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 liabili-
ties. Forward contracts are recorded at the forward rate and marked-to-market
daily. Realized gains or losses arising from such transactions are included in
net realized gains or losses on foreign currency related 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 con-
tracts involve elements of market risk in excess of the amount reflected in the
Statements of Assets and Liabilities.
E. Securities Lending
In order to generate income and to offset expenses, the Fund may lend portfolio
securities to brokers, dealers and other financial organizations. The Fund's
investment advisor will monitor the creditworthiness of such borrowers. Loans
of securities may not exceed 33 1/3% of a Fund's total assets and will be col-
lateralized by cash, letters of credit or U.S. Government securities that are
maintained at all times in an amount equal to at least 100% of the current mar-
ket value of the loaned securities, including accrued interest. The Fund moni-
tors the adequacy of the collateral daily and will require the borrower to pro-
vide additional collateral in the event the value of the collateral falls below
100% of the market value of the securities on loan. While such securities are
on loan, the borrower will pay the Fund any income accruing thereon, and the
Fund may invest any cash collateral received in portfolio securities, thereby
increasing its return. The Fund will have the right to call any such loan and
obtain the securities loaned at any time on five days' notice. Any gain or loss
in the market price of the loaned securities, which occurs during the term of
the loan, would affect the Fund and its investors. The Fund may pay fees in
connection with such loans.
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 there-
after when the Fund is made aware of the dividend. Foreign income and capital
gains realized on some foreign securities may be subject to foreign taxes,
which are accrued as applicable.
G. Federal Taxes
The Fund has qualified and intends to continue to qualify as a regulated in-
vestment company under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Fund will not incur any federal income tax
24
<PAGE>
Notes to Financial Statements (continued)
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 distribu-
tions 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.
H. Distributions
Distributions from net investment income and/or net realized capital gains for
the Fund, if any, are declared and paid at least once during each 12-month pe-
riod. 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 accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles. The significant differences between financial statement
amounts available for distribution and distributions made in accordance with
income tax regulations are primarily due to differing treatment for net operat-
ing losses, certain realized losses on securities re-purchased, net realized
foreign currency gains or losses and unrealized depreciation on passive foreign
investment companies.
I. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.
J. 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 re-
deemed by any holder during the five-year amortization period, redemption pro-
ceeds will be reduced by any unamortized organization expenses in the same pro-
portion as the number of initial shares being redeemed bears to the number of
initial shares outstanding at the time of the redemption. As of October 31,
1999, all organization costs have been fully amortized.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
Mentor Perpetual Advisors, LLC ("Mentor Perpetual") serves as the investment
advisor to the Fund. Mentor Perpetual, a wholly owned, indirect subsidiary of
First Union, is owned equally by Mentor Investment Advisors, LLC and Perpetual
PLC, a diversified financial services holding company. Mentor Perpetual is paid
a fee that is computed daily and paid monthly at an annual rate of 1.10% on the
first $75 million of the Fund's average daily net assets and 1.00% of its aver-
age daily net assets in excess of $75 million.
The investment advisor may from time to time voluntarily waive some or its en-
tire investment advisory fee and may terminate any such voluntary waiver at any
time at its sole discretion.
Evergreen Investment Services, Inc. ("EIS"), a subsidiary of First Union,
serves as the administrator to the Fund. As administrator, EIS provides the
Fund with facilities, equipment and personnel. EIS is entitled to a fee of
0.15% based on the average daily net assets of the Fund. Prior to June 14,
1999, Mentor Investment Group LLC ("Mentor") provided administrative personnel
and services to the Fund at the same rate indicated above. Prior to April 1,
1999, the fees paid to Mentor for administrative services for the Fund was
0.10% of the Fund's average daily net assets.
For the one-month period ended October 31, 1999 and the year ended September
30, 1999, respectively, the Fund paid or accrued to EIS and Mentor, the follow-
ing amounts for administrative services:
<TABLE>
<CAPTION>
EIS Mentor
-----------------
<S> <C> <C>
October 31, 1999...................... $27,795 $ 0
September 30, 1999.................... 93,826 161,930
</TABLE>
Evergreen Service Company ("ESC"), an indirect, wholly owned subsidiary of
First Union, serves as the transfer and dividend disbursing agent for the Fund.
Prior to September 13, 1999, Boston Financial Data Services,
25
<PAGE>
Notes to Financial Statements (continued)
Inc. ("BFDS") served as the Fund's transfer and disbursing agent. For the one-
month period ended October 31, 1999, the Fund paid or accrued $33,704 to ESC.
For the year ended September 30, 1999, the Fund paid or accrued $33,831 to ESC
and $281,730 to BFDS, respectively.
4. DISTRIBUTION AGREEMENT
Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of The BISYS
Group, Inc., serves as principal underwriter to the Fund. The Fund has adopted
Distribution Plans, as allowed by Rule 12b-1 of the 1940 Act, for each class of
shares, except Class Y. Distribution plans permit a Fund to compensate its
principal underwriter for costs related to selling shares of the Fund and for
various other services. These costs, which consist primarily of commissions and
service fees to broker-dealers who sell shares of the Fund, are paid by the
Fund through "Distribution Plan expenses". Under the Distribution Plans, Class
A shares incur distribution fees equal to 0.25% of the average daily net assets
of the class, all of which is used to pay for shareholder service fees. Class B
shares and Class C shares incur distribution fees equal to 1.00% of the average
daily net assets of each class. Of this amount, 0.25% of the distribution fees
incurred is used to pay for shareholder service fees and 0.75% is used to pay
for distribution-related costs. Distribution Plan expenses are calculated daily
and paid at least quarterly.
The Distribution Plan and Service Plan 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.
During the one month period ended October 31, 1999, amounts paid or accrued to
EDI pursuant to the Fund's Class A, Class B and Class C Distribution Plans were
$1,434, $11 and $8,425, respectively.
Prior to October 18, 1999, Mentor Distributors, LLC ("Mentor Distributors")
served as principal underwriter to the Mentor Perpetual Global Portfolio. Men-
tor Distributors is a wholly owned subsidiary of BISYS Fund Services, Inc. The
Fund had adopted a Distribution Plan under Rule 12b-1 of the 1940 Act for its
Class B shares. To compensate Mentor Distributors for the services it provided
and for the expenses it incurred, Class B shares of the Mentor Perpetual Global
Portfolio paid a distribution fee of 0.75%, which was accrued daily and paid
monthly.
Prior to October 18, 1999, the Mentor Perpetual Global Portfolio had also
adopted a Shareholder Servicing Plan (the "Service Plan") with Mentor Distribu-
tors with respect to its Class A and Class B shares. Under the Service Plan,
financial institutions entered into shareholder service agreements with the
Mentor Perpetual Global Portfolio to provide administrative support services to
their customers who from time to time might have been owners of record or bene-
ficial owners of Class A or Class B shares of one or more Funds. In return for
providing these support services, a financial institution might have received
payments from one or more Funds at an annual rate of 0.25% of the average daily
net assets of the Class A or Class B shares of the Mentor Perpetual Global
Portfolio beneficially owned by the financial institution's customers for whom
it was a holder of record or with whom it had a servicing relationship.
During the one-month period ended October 31, 1999 and the year ended September
30, 1999, amounts paid or accrued to Mentor Distributors pursuant to the Fund's
Class A and Class C (former Class B) Distribution and Service Plans were as
follows:
<TABLE>
<CAPTION>
Class A Class C
-------------------
<S> <C> <C>
October 31, 1999.................... $ 17,425 $ 101,425
September 30, 1999.................. 203,547 $1,192,868
</TABLE>
26
<PAGE>
Notes to Financial Statements (continued)
5. CAPITAL SHARE TRANSACTIONS
The Fund has an authorized unlimited number of shares of beneficial interest
with $0.001 par value authorized. Shares of beneficial interest of the Fund are
currently divided into Class A, Class B, Class C and Class Y. Transactions in
shares of the Fund were as follows:
<TABLE>
<CAPTION>
Year Ended September 30,
One Month Ended --------------------------------------------------
October 31, 1999 (a) (b) 1999 1998
-------------------------- ------------------------ ------------------------
Shares Amount Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold............. 314,307 $ 10,270,258 4,607,081 $ 98,857,851 2,057,945 $ 42,154,809
Shares redeemed......... (538,932) (15,634,634) (4,131,024) (89,908,934) (1,275,534) (25,637,616)
Shares issued in
reinvestment of
distributions.......... 0 0 247,789 4,601,451 113,726 2,255,270
- --------------------------------------------------------------------------------------------------------
Net increase............ (224,625) (5,364,376) 723,846 13,550,368 896,137 18,772,463
- --------------------------------------------------------------------------------------------------------
Class B (c)
Shares sold............. 43,920 1,030,263 0 0 0 0
- --------------------------------------------------------------------------------------------------------
Net increase............ 43,920 1,030,263 0 0 0 0
- --------------------------------------------------------------------------------------------------------
Class C
Shares sold............. 98,302 2,176,993 1,142,468 23,500,042 1,821,588 36,737,964
Shares redeemed......... (67,902) (1,508,791) (1,216,923) (24,875,681) (983,971) (18,930,107)
Shares issued in
reinvestment of
distributions.......... 0 0 452,424 8,053,145 232,932 4,477,444
- --------------------------------------------------------------------------------------------------------
Net increase............ 30,400 668,202 377,969 6,677,506 1,070,549 22,285,301
- --------------------------------------------------------------------------------------------------------
Class Y (d)
Shares sold............. 0 0 0 0 53 1,000
Shares issued in
reinvestment of
distributions.......... 0 0 5 85 8
- --------------------------------------------------------------------------------------------------------
Net increase............ 0 0 5 85 53 1,008
- --------------------------------------------------------------------------------------------------------
Net increase............ $ (3,665,911) $ 20,227,959 $ 41,058,772
- --------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the one month ended October 31, 1999. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1999.
(b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo-
lio Class A, Class B and Class Y shares became owners of that number of
full and fractional shares of Class A, Class C and Class Y shares, respec-
tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per-
petual Global Portfolio were redesignated as Class C shares of Evergreen
Perpetual Global Fund.
(c) For the period from October 18, 1999 (commencement of class operations) to
October 31, 1999.
(d) For the period from November 19, 1997 (commencement of class operations) to
September 30, 1998.
6. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the one-month period ended October
31, 1999 and the year ended September 30, 1999:
<TABLE>
<CAPTION>
Cost of Proceeds from
Purchases Sales
--------------------------
<S> <C> <C>
October 31, 1999............. $ 31,158,203 $ 29,102,686
September 30, 1999........... 303,116,535 282,210,933
</TABLE>
On October 31, 1999 and September 30, 1999, the composition of unrealized ap-
preciation and depreciation on securities based on the aggregate cost of secu-
rities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
-----------------------------------------------------
<S> <C> <C> <C> <C>
October 31, 1999.... $225,748,240 $32,682,675 $14,566,119 $18,116,556
September 30, 1999.. 220,093,369 28,725,878 15,403,964 13,321,914
</TABLE>
The Fund loaned securities during the one-month period ended October 31, 1999
and the year ended September 30, 1999, to certain brokers who paid the Fund a
negotiated lender's fee. These fees are included in interest income. At October
31, 1999 and September 30, 1999, the value of securities on loan and the value
of collateral amounted to as follows:
<TABLE>
<CAPTION>
Value of Value of
securities on loan collateral
------------------------------
<S> <C> <C>
October 31, 1999......... $19,431,123 $20,253,588
September 30, 1999....... 16,664,793 17,425,612
</TABLE>
27
<PAGE>
Notes to Financial Statements (continued)
7. EXPENSE OFFSET ARRANGEMENTS
The Fund has entered into expense offset arrangements with its custodian on
June 14, 1999 and with ESC on September 13, 1999 whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of the Fund's
related expenses. The assets deposited with ESC and the custodian under these
expense-offset arrangements could have been invested in income-producing as-
sets. The amount of fee credits received by the Fund and the impact on the
Fund's expense ratios represented as a percentage of its average net assets
were as follows:
<TABLE>
<CAPTION>
Total
Fee Credits % of Average
Received Net Assets
-----------------------
<S> <C> <C>
October 31, 1999............... $552 0.00%
September 30, 1999............. 0 0.00%
</TABLE>
8. FINANCING AGREEMENT
On August 6, 1999, the Fund became party to a credit agreement between Ever-
green Funds and a group of banks (the "Lenders"). Under this agreement, effec-
tive for all other Evergreen Funds on July 27, 1999, the Lenders provide an
unsecured revolving credit commitment in the aggregate amount of $1.050 bil-
lion. The credit facility is allocated, under the terms of the financing agree-
ment, among the Lenders. The credit facility is accessed by the Funds for tem-
porary or emergency purposes to fund the redemption of their shares or as gen-
eral working capital as permitted by the Fund's borrowing restrictions.
Borrowings under this facility are assessed interest at 0.75% per annum above
the Federal Funds rate (1.50% per annum above the Federal Funds rate during the
period from and including December 1, 1999 through and including January 31,
2000). A commitment fee of 0.10% per annum is incurred on the average daily un-
used portion of the revolving credit commitment. The commitment fee is allo-
cated to all Funds. For its assistance in arranging this financing agreement,
First Union Capital Markets Corp. was paid a one-time arrangement fee of
$250,000. State Street Bank and Trust Company ("State Street") serves as paying
agent for the Funds, and as paying agent is entitled to a fee of $20,000 per
annum which is allocated to all of the Funds.
28
<PAGE>
Independent Auditors' Report
The Board of Trustees and Shareholders
Evergreen International Trust
We have audited the accompanying statements of assets and liabilities of Ever-
green Perpetual Global Fund ("formerly Mentor Perpetual Global Portfolio"), a
portfolio of the Evergreen International Trust, including the schedules of in-
vestments, as of October 31, 1999 and September 30, 1999 and the related state-
ments of operations for the one-month period ended October 31, 1999 and the
year ended September 30, 1999, the statements of changes in net assets for the
one-month period ended October 31, 1999 and each of the years in the two-year
period ended September 30, 1999 and the financial highlights for the one-month
period ended October 31, 1999 and each of the years in the five-year period
ended September 30, 1999. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to ex-
press an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of Oc-
tober 31, 1999 and September 30, 1999 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall fi-
nancial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Ever-
green Perpetual Global Fund as of October 31, 1999 and September 30, 1999, the
results of its operations for the periods then ended, the changes in its net
assets for each of the periods then ended and for the year ended September 30,
1998 and the financial highlights for each of the years or periods described
above in conformity with generally accepted accounting principles.
/s/ KPMG LLP
Boston, Massachusetts
November 19, 1999
29
<PAGE>
Additional Information (Unaudited)
ACQUISITION OF EVEREN BY FIRST UNION
On March 25, 1999, First Union and EVEREN Capital Corporation ("EVEREN") an-
nounced an agreement to form an asset management joint venture that would com-
bine the Evergreen mutual fund complex with the Mentor Investment Group.
Under the agreement, First Union would contribute its ownership interest in Ev-
ergreen and Mentor and receive 95 percent ownership interest in the new ven-
ture.
On April 26, 1999, First Union announced an agreement to acquire EVEREN. As
part of this acquisition, Mentor would be combined with the Evergreen mutual
funds complex and Mentor Funds would convert from a series of Massachusetts
business trust to a Delaware business trust. On October 1, 1999, the acquisi-
tion of EVEREN by First Union was completed.
SPECIAL MEETING OF SHAREHOLDERS
A special shareholders meeting of the Mentor Funds shareholders was held on Oc-
tober 15, 1999 for the Mentor Perpetual Global Portfolio to approve its conver-
sion into a series of an Evergreen Delaware business trust and other related
matters. Shareholders of record on August 17, 1999 were entitled to notice and
to vote at the meeting and any adjournments thereof. The record date share po-
sitions and the number of shares voted was as follows:
<TABLE>
<CAPTION>
Total Shares voted as
record date percentage of total
share position Shares voted record date shares
-----------------------------------------------
<S> <C> <C>
8,841,467 5,103,415 57.72%
</TABLE>
During the special meeting, the shareholders of the Mentor Perpetual Global
Portfolio voted the following:
1. To approve an Agreement and Plan of Conversion and Termination providing for
the conversion of the Mentor Perpetual Global Portfolio into a corresponding
series of Evergreen International Trust, a Delaware business trust;
2. To approve the proposed changes of the Fund's investment objectives from
fundamental to non-fundamental;
3. To approve the proposed changes to the Fund's investment restrictions:
3A.Diversification
3B.Concentration
3C.Senior securities
3D.Borrowing
3E.Underwriting
3F.Real Estate
3G.Commodities
3H.Lending
3I. To reclassify as non-fundamental certain fundamental restrictions that
are no longer required to be fundamental:
3I(i).Short sales
3I(ii).Margin purchases
3I(iii).Pledging
3I(iv).Restricted securities
3I(v).Unseasoned issuers
3I(vi).Illiquid securities
3I(vii).Officers' and directors' ownership of securities
3I(viii).Control of management
3I(ix).Joint trading
3I(x).Other investment companies
3I(xi).Oil, gas and minerals
3I(xii).Foreign securities
3I(xiii).Warrants
30
<PAGE>
Additional Information (Unaudited) (continued)
4. To transact any other business that may properly come before the meeting or
any adjournment thereof.
The results were as follows:
<TABLE>
<CAPTION>
Vote 1. Vote 2.
-----------------------------------
Shares % of Shares % of
Voted Voted Voted Voted
------------------------------------------------------
<S> <C> <C> <C> <C>
FOR............... 4,685,011 91.80% 4,666,688 91.44%
AGAINST........... 142,460 2.79% 150,499 2.95%
ABSTAIN........... 275,944 5.41% 286,228 5.61%
TOTAL............. 5,103,415 100.00% 5,103,415 100.00%
</TABLE>
<TABLE>
<CAPTION>
Shares Shares
Shares % of Voted % of Voted % of
Vote 3. Voted FOR Voted AGAINST Voted ABSTAIN Voted
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
3A............................ 4,655,765 91.23% 140,193 2.75% 307,457 6.02%
3B............................ 4,654,674 91.21% 141,284 2.77% 307,457 6.02%
3C............................ 4,655,076 91.22% 140,882 2.76% 307,457 6.02%
3D............................ 4,652,598 91.17% 143,360 2.81% 307,457 6.02%
3E............................ 4,654,601 91.21% 141,357 2.77% 307,457 6.02%
3F............................ 4,652,307 91.17% 143,651 2.81% 307,457 6.02%
3G............................ 4,649,967 91.12% 145,991 2.86% 307,457 6.02%
3H............................ 4,651,972 91.16% 143,986 2.82% 307,457 6.02%
3I(i)......................... 4,650,074 91.12% 145,884 2.86% 307,457 6.02%
3I(ii)........................ 4,650,074 91.12% 145,884 2.86% 307,457 6.02%
3I(iii)....................... 4,650,074 91.12% 145,884 2.86% 307,457 6.02%
3I(iv)........................ 4,649,864 91.12% 146,094 2.86% 307,457 6.02%
3I(v)......................... 4,651,940 91.16% 144,018 2.82% 307,457 6.02%
3I(vi)........................ 4,651,234 91.14% 144,724 2.84% 307,457 6.02%
3I(vii)....................... 4,650,911 91.14% 145,047 2.84% 307,457 6.02%
3I(viii)...................... 4,651,234 91.14% 144,724 2.84% 307,457 6.02%
3I(ix)........................ 4,651,940 91.16% 144,018 2.82% 307,457 6.02%
3I(x)......................... 4,651,940 91.16% 144,018 2.82% 307,457 6.02%
3I(xi)........................ 4,651,940 91.16% 144,018 2.82% 307,457 6.02%
3I(xii)....................... 4,651,940 91.16% 144,018 2.82% 307,457 6.02%
3I(xiii)...................... 4,655,059 91.22% 140,899 2.76% 307,457 6.02%
</TABLE>
<TABLE>
<CAPTION>
Vote 4. Shares Voted % of Voted
--------------------------------------------------------
<S> <C> <C>
FOR............................. 4,669,129 91.49%
AGAINST......................... 141,597 2.77%
ABSTAIN......................... 292,689 5.74%
TOTAL........................... 5,103,415 100.00%
</TABLE>
YEAR 2000
Like other investment companies, the Fund could be adversely affected if the
computer systems used by its investment advisor and the Fund's other service
providers are not able to perform their intended functions effectively after
1999 because of the inability of computer software to distinguish the year 2000
from the year 1900. The Fund's investment advisor is taking steps to address
this potential year 2000 problem with respect to the computer systems that they
use and to obtain satisfactory assurances that comparable steps are being taken
by the Fund's other major service providers. At this time, however, there can
be no assurance that these steps will be sufficient to avoid any adverse impact
on the Fund from this problem.
31
<PAGE>
Additional Information (Unaudited)(continued)
FEDERAL TAX STATUS OF DISTRIBUTIONS
Pursuant to section 852 of the Internal Revenue Code, the Fund has
designated aggregate and per share long-term capital gain distribu-
tions of $10,430,275 and $1.605, respectively, for the fiscal year
ended September 30, 1999.
For corporate shareholders, 12.28% of ordinary income dividends paid
during the fiscal year ended September 30, 1999 qualified for the
dividends received deduction.
32
<PAGE>
Evergreen Funds
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Express Line
800.346.3858
Investor Services
800.343.2898
www.evergreen-funds.com
38951 551384 11/99
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