EVERGREEN VARIABLE TRUST /OH, N-30D, 1997-09-02

EVERGREEN VARIABLE TRUST /OH
N-30D, 1997-09-02

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<PAGE>
EVERGREEN
VARIABLE TRUST

SEMIANNUAL REPORT
JUNE 30, 1997

(Evergreen Keystone Funds Logo (SM) appears here)

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FUND (Pine cone logo)

A REPORT FROM YOUR
PORTFOLIO MANAGER

STEPHEN A. LIEBER

The Evergreen VA Fund provided a total return of 17.8% for the six months
through June 30, 1997. Its performance over the 12 months ended June 30, was
27.8%, and its cumulative return since inception on March 1, 1996, was 35.3%,
which is equivalent to an average annual total return of 25.4% for that time.

Since inception, the Fund's holdings have been concentrated in smaller companies
with growth potential. The Fund is diversified across industry lines, aiming to
take advantage of undervalued growth opportunities throughout industry. The
largest concentration of holdings is in the financial industry, with particular
emphasis on regional banks, intended to benefit by the expanding consolidation
in the industry. Second in holdings is in technology companies, with emphasis on
the judiciously-timed purchases of companies with exceptional growth prospects.

During the first half of 1997, a number of issues were purchased during the
sharp market fall of March and April. For example, shares of Arterial Vascular
Engineering Corp. were purchased in March and rose 134.9% by June 30. Shares of
Medic Computer Systems, also purchased in March, rose 97.4%. April's purchases
included shares of Hadco Corp., +84.6%; DuPont Photomasks, Inc., +51.3%;
SunAmerica, Inc., +51%; Tellabs, Inc., +47.2%; and BankBoston Corp., +31.6%.
Only four holdings purchased in the first six months of this year suffered
declines by the end of the June, and the largest of those declines was 9.1%.

Merger and acquisition opportunities in companies which we find to be
undervalued are often a positive factor in the appreciation of the Evergreen
Funds. During the first half year, six such transactions were initiated or
completed among companies in Evergreen VA Fund's portfolio. The largest single
such gain recorded among completed acquisitions was in the shares of VeriFone,
Inc., which were purchased in December 1996, at $29.57 and were acquired by
Hewlett Packard at $54, for a gain of 82.6%. Some of these transactions took
place in a remarkably short period of time from the date of our initial
purchase: American Medical Response, in just two months for a 41% gain, Kaysor
Industrial Corp., in fewer than six months for 40.3% gain, and Renaissance Hotel
Group, in fewer than two months for a 21.9% gain. Focus on undervalued growth,
we believe, will very likely continue to generate similar opportunities.

A limited number of issues from the Fund's portfolio were sold during the half
year. The largest single gain recorded was in the shares of Jones Apparel,
Corp., which in 14 months provided a 104.7% gain. This was followed by Eli Lilly
& Co., with an 83.7% gain; Leggett & Platt, Inc., 67.3%; Baldor Electric, 51.7%.
There were no losses realized in the portfolio's holdings during this time.

We have endeavored to create a diversified selection of growth opportunities. A
small minority of the holdings are larger companies where we felt their strong
entrepreneurial potentials or their research and development capabilities would
enhance the portfolio over the longer-term while providing it with increased
liquidity. These larger holdings, small in number, are the Federal National
Mortgage Association (Fannie Mae), Merrill Lynch & Co., Inc., Merck & Co., Inc.,
and Intel Corp.

A modest cash position was held at the end of the six-month period, intended to
be used for the purchase of undervalued issues, especially during periods of
weakness in what remains a highly volatile market. The portfolio is, we believe,
well-positioned for substantial long-term capital appreciation. We thank you for
your support of Evergreen VA Fund, and look forward to providing you with
further updates on the Fund's progress.

August 1997

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FOUNDATION FUND
(Pine cone logo)
A REPORT FROM YOUR
PORTFOLIO MANAGER

STEPHEN A. LIEBER

The Evergreen VA Foundation Fund provided a total return of 13.3% for the six
months ended June 30, 1997 and a total return of 29.7% in the 12 months ended
June 30. Since inception on March 1, 1996, the fund has provided a total return
of 30.6%, for an average annual total return of 22.1%.

The aim of this Fund is to provide a balanced portfolio of opportunities, with
effective use of asset allocation, employing both common stocks and the highest
grade bonds. The bond portfolio is entirely obligations of the U.S. Government
or its agencies. During the first half, the common stock portion of the Fund
accounted for approximately two-thirds of the portfolio on average, while the
balance was split in varying ratios between long-term U.S. Treasury obligations
and short-term and intermediate-term notes. The equity portfolio provided the
bulk of the capital appreciation for the Fund, with numbers of substantial
increases. The largest single increase in the Fund was in the shares of Intel
Corp., purchased at the inception of the Fund at $41.70, and closing at $71.90
on June 30, 1997. Intel is also the largest equity position in the Fund.

During the first half of the fiscal year, a number of positions were added to
the Fund, generally of larger companies which we believe to be undervalued.
There were exceptional opportunities for the purchase of high quality companies
on a comparatively reasonable basis during the market weakness which occurred in
March and April. Many of the purchases made at these times provided substantial
gains by the end of the first half. For example, the shares of General Electric
Co., purchased in early April appreciated 31.9% by June 30, shares of Bankers
Trust, 31.6%; and BankBoston, 31.5%. All but three of the 27 equity purchases
for the Fund during the first half showed appreciation. Of those three, only one
was down significantly, the shares of Harmon International Industries, which had
a 20.8% fall, largely reflecting a decline in earnings anticipated from the
strike of one of their major customers in the automobile industries. The largest
single gain achieved by any purchase during the first half of the year, was in
the shares of Timken Company, which appreciated 39.4% from the purchase on
January 30.

A number of issues were sold with gains during the first half of the year. These
were led by shares of Eli Lilly & Co., which provided an 83.5% gain from the
purchase in March 1996, to their sale in June 1997. Other major gainers were
shares in Leggett & Platt, Inc., 60.%; Proctor & Gamble, 58%; Walgreen Company,
45%. In addition, the Fund benefited from the acquisition or merger of several
companies whose shares are held in the portfolio. The most dramatic was that of
PHH Corp. whose shares we bought in April 1996, at $27.90 and received a buyout
offer from HFS Corporation at $47.50. Other substantial merger or acquisition
gains were realized in Conrail Corporation, 33.8%; Standard Federal
Bancorporation, 33.7%; and of HFS Corporation**, currently pending, which could
provide a gain of 24.6%. Other currently pending transactions** are those for
Living Centers of America, which, if completed, could provide a 26% gain, and
Pacific Graystone Corp., at 55%. The corporate acquisition pattern in the Fund's
holdings is representative of those encountered widely among the Evergreen
Funds. They reflect the recognition of the undervaluation of businesses, which
we have selected as exceptional growth values through our diligent research
effort.

<PAGE>

EVERGREEN VARIABLE TRUST
EVERGREEN VA FOUNDATION FUND (Pine cone logo)

The Fund's bond portfolio is intended to provide a secure yield and capital
appreciation. The capital appreciation has been generated by the judicious
timing of bond purchases, reflecting our analysis of opportunities in interest
rate trends. The principal long-term holdings, U.S. Treasury 7 1/8% bonds, due
February 15, 2023, and U.S. Treasury 6 1/4% bonds, due August 15, 2023, were
both purchased during periods of weakness in the bond market brought about by
apprehensions of resurgent inflation. In both cases the inflation did not appear
and the bonds have provided capital appreciation. We anticipate further
opportunities to effectively position the Fund's fixed income holdings for both
income and appreciation.

The overall pattern which this Fund is following is based on that of the
Evergreen Foundation Fund, which has now developed a several-years history of
asset allocation and strong focus on growth opportunities in large, or high
quality equities. We look forward to providing similar results for the
shareholders of Evergreen VA Foundation Fund.

August 1997

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo) EVERGREEN VA GROWTH AND INCOME FUND

A REPORT FROM YOUR
PORTFOLIO MANAGER

EDMUND H. NICKLIN, JR.

First half 1997 was a successful period for the Evergreen VA Growth and Income
Fund, with the Fund achieving a total return for the six-months ended June 30 of
16.7%*. Equity market returns during this period were strongly influenced by
market capitalization, which created a stratification inconsistent with the
widely held perception that return and risk should decrease as equity market
capitalization increases. Investors began to favor larger capitalization
companies, as reflected in stock market performance, during second half 1996.
This preference continued and the outperformance of large capitalization issues
widened through first half 1997 with the S&P 500 Index** (reinvested) providing
a total return of 20.6% in contrast to 13% for the S&P MidCap 400 Index**
(reinvested). The performance of small capitalization companies during this
period, as measured by the Russell 2000 Index***, was even more disappointing,
trailing the S&P 500 by approximately 10%. In comparing performance, it is
important to remember that the Evergreen VA Growth and Income Fund is primarily
invested in small and mid-capitalization companies. The stratification of
returns by market capitalization became less pronounced as the first half
progressed which may indicate a return to a more normal relationship.

PORTFOLIO HIGHLIGHTS

Economic growth statistics exhibited significant quarter-to-quarter variability
in 1997, consistent with the pattern established in 1996. First quarter 1997
growth, as measured by the increase in Gross Domestic Product, approximated 5%
following a strong 3.8% increase in fourth quarter 1996. With this strong
economic performance, the Federal Reserve took out an "insurance policy" against
a return of inflation in the form of a 25-basis-point increase in the Federal
Funds rate at the March Federal Open Market Committee meeting. This action led
to a significant correction in the equity markets during March and into April.
Near the end of April, evidence of economic slowing allowed the bond market to
rally, with the interest rate on the 30-year Treasury bond retreating from 7%,
facilitating a recovery for the stock market.

This period of market weakness allowed the initiation of portfolio positions in
companies such as Reynolds & Reynolds, an information systems provider to auto
dealers, and the addition to existing portfolio positions at attractive prices.
A number of industries and companies performed well in first half 1997 during
the recovery from the market correction. In Evergreen VA Growth and Income Fund,
radio broadcasting was the best performing group during first half 1997,
appreciating more than 40%, led by American Radio Systems and Jacor
Communications. These two companies have been active consolidators of stations
and evidence is accumulating that owning and operating a group of stations in a
city and the surrounding region allow the operator to target demographics more
effectively, deliver a broader cross section of the population to potential
advertisers and gain advertising marketshare from television stations and
newspapers. Market share additions would expand revenue growth for radio
broadcasters.

The thrift holdings in the portfolio also performed well, as they benefited from
the continued consolidation in banking, and the reduction in interest rates from
the early April peak. Domestic oil and gas producers were disappointing during
the first half, as hydrocarbon prices came under pressure, reacting to mild
winter weather in the U.S. and Europe, and the expectation of additional
supplies from non-OPEC sources and Iraq. Some individual companies provided
standout performance. Compuware Corporation continued its resurgence with a 92%
return in the first half, propelled by increased demand for its utility and
testing software. Unitrode Corp., a supplier of mixed signal integrated circuits
and analog components, produced a significant earnings increase that translated
into price appreciation of nearly 80% in the first half. Living Centers of

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GROWTH AND INCOME FUND
(Pine cone logo)
America appreciated 42% on the strength of a de facto purchase by a merchant
banking group. Deltic Timber, a recent spin-off from Murphy Oil, increased more
than 35% during this period. TNP Enterprises, Inc., saw a significant price
decline as concern mounted that electric utility deregulation would arrive in
Texas earlier than previously anticipated and with greater economic
consequences.

ECONOMIC OUTLOOK

Late in 1996, Federal Reserve Chairman Greenspan uttered his now famous
"irrational exuberance" comment with respect to stock market valuation. Reacting
to strong economic growth in fourth quarter 1996 and even stronger growth in
first quarter 1997, the Federal Reserve raised the Federal Funds rate in March
1997. Earnings for domestic corporations in first quarter 1997 were generally
stronger than anticipated, not surprising given the strength in the domestic
economy. As information accumulated that second quarter 1997 would see slower
economic growth more consistent with the economy's long-run potential, long-term
interest rates declined and a significant rally began in the equity markets. Fed
Chairman Greenspan indicated in testimony to Congress in early July that high
equity market valuations could be sustained in a low inflation environment if
companies could maintain profit margins at current historically high levels. In
essence, his testimony indicated that very favorable current conditions are
unique, marked by an absence of imbalances, and likely to occur only once or
twice in a century. The tight labor market is the economic resource that seems
to be of greatest concern. However, the current low unemployment has not led to
wage increases that are inconsistent with low inflation. With productivity
gains, the existing favorable environment can be maintained for a period of
time.

In general, the early indicators of inflation are quiescent. Certain industrial
commodities have exhibited substantial price increases such as zinc, but prices
generally are well behaved. The price of gold, the classic inflation barometer,
has actually declined during 1997, impacted by the liquidation of reserves at
Central Banks. The news on the federal budget deficit has also been
substantially better than expected-- a reflection of increased tax revenues from
the robust economy not the recent bipartisan Federal balanced budget agreement.

The stock market, especially the large capitalization segment, has produced
excellent first half 1997 returns, but is expensive relative to fixed income
securities. Continued appreciation by the market is dependent upon the existing
extremely favorable economic conditions being maintained and corporate earnings
growth continuing at recent rates. In this environment, portfolio selection for
the Fund will continue to focus on valuation and the identification of a
catalyst to close the undervaluation gap as the driver for portfolio gains. This
represents a significant challenge given the high valuations for many large
capitalization issues, but interesting candidates exist among small and
mid-capitalization companies that constitute the preponderance of portfolio
holdings.

Effective July 31, 1997, the portfolio management of Evergreen VA Growth and
Income Fund changed. The Fund is now team managed, led by Stephen A. Lieber,
Chairman and Founder of Evergreen Asset Management Corp., and assisted by Gary
Buesser, a veteran investment manager. Mr. Buesser joined Evergreen Asset
Management in 1996 following a successful career as an institutional investment
manager. While the management of the Fund has changed, its investment objective
has not. Evergreen VA Growth and Income Fund seeks to achieve a return composed
of capital appreciation in the value of its shares and current income.

FIGURES REPRESENT PAST PERFORMANCE WHICH IS NO GUARANTEE OF FUTURE RESULTS.
* Performance figures include reinvestment of income dividend and capital gain
distributions. Investment return and principal value will fluctuate.
Investors' shares, when redeemed, may be worth more or less than their
original cost.
During the period under review, the Adviser waived a portion of its advisory
fee. Had the fee not been waived, performance would have been lower. Fee
waiver may be revised at any time. For additional information on fee waiver,
please see the prospectus.
** The S&P 500 Index is an unmanaged index of common stocks in industry,
transportation, finance, and public utilities, denoting general market
performance as monitored by Standard & Poor's Corp. The S&P MidCap 400 Index
is an unmanaged reinvested index of selected securities.
*** The Russell 2000 is an unmanaged reinvested index of selected securities. An
investment can not be made in an index.

August 1997

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GLOBAL LEADERS FUND
(Pine cone logo)
A REPORT FROM YOUR
PORTFOLIO MANAGERS

STEPHEN A. LIEBER
EDWIN D. MISKA

We are pleased to present you with the first Semiannual Report for Evergreen VA
Global Leaders Fund. Evergreen VA Global Leaders Fund commenced operations on
March 7, 1997, at a net asset value of $10.00 per share. For the period since
inception through June 30, 1997, investment results were broadly in line with
the market averages despite increased start-up and trading costs associated with
the Fund's launch. The Fund returned 10.2%*. The MSCI World Index returned
+11.4%** and the MSCI EAFE Index** returned +12.9%. This has been a period of
not only building for the Fund, but also has been a time for implementing a very
carefully formulated and disciplined plan to construct a portfolio which we
believe is comprised of the "100 best companies in the world," based on the
Advisor's proprietary investment process. Within the major industrialized
nations of the world, we seek out companies that are among the most highly
profitable, have the highest returns on shareholders equity, are most consistent
in earnings, and have a past record of both earnings growth and future outlook
that indicates continuous uninterrupted success. We actively compare financial
performance among companies in our selected universe and omit those which fail
to consistently meet our criteria, while bringing in others that do. We combine
this investment discipline with a broad macro-financial, political and social
review of the world's economies in an effort to optimize country and currency
exposures and provide a balanced structured approach toward global investing.
Our aim is to provide consistent long-term maximized shareholder returns.

The period under review was characterized by an environment with a near perfect
fundamental backdrop for equity investing. The world's stock markets staged
their strongest sustained rally since 1991, led by the strength of the U.S.
economy, where inflation remained nearly non-existent, quelling fears of higher
interest rates. Amid a favorable macroeconomic environment highlighted by an end
to the U.S. Federal budget impasse, coupled with the lowest unemployment rates
in 24 years and buoyant corporate earnings expectations, equity market inflows
topped the $100 billion level for the period. The leadership of the U.S.
market's momentum encouraged strong investment participation around the world.
Dramatic events such as the changing of governments in Great Britain and France,
and the enthusiasm and support for the Chinese takeover of Hong Kong, helped
fuel sustained rallies. Twenty of the 22 developed nations' markets in the MSCI
World Index rose for the period. Led by gains of 24.5% in Japan , 23.5% in
Spain, 22.6% in Switzerland and 10.0% in the U.S., the MSCI World Index rose
significantly***. Only Malaysia showed a significant decline, -16.1%.

Strong performance from the Fund's U.S. holdings, +15.4% for the since-inception
period, led the way, as U.S. market leadership remained firmly on larger
capitalization issues. Twenty-one of the Fund's U.S. holdings were up in excess
of 20% for the period, including 11 which returned in excess of 30%. Top
performers included familiar names from a diverse group of industries:
Children's toy manufacturer, Mattel, Inc., +43.0%; global general merchandise
retailer, Wal-Mart Stores, +39.4%; Software developer, Oracle Corp., +36.7%; Oil
services provider, Dresser Industries +34.5%; and heavy machinery maker Deere &
Co. +33.0%. Sup-par performance was registered from technology-related issues
Compaq Computer, -5.3%; Intel Corp., -10.9%; and Parametric Technology, -20.0%,
on earnings outlook concerns, and from biotechnology firm Amgen, Inc., -20.0%,
on new product issues.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
International investing involves increased risk and volatility.
* Performance figures include reinvestment of income dividend and capital gain
distributions. Investment return and principal value will fluctuate.
Investors' shares, when redeemed, may be worth more or less than their
original cost.
During the period under review, the Adviser waived a portion of its advisory
fee and absorbed a portion of the Fund's other expenses. Had the fee not
been waived or expenses absorbed, performance would have been lower. Fee
waiver and expense absorption may be revised at any time. For additional
information on fee waiver and expense absorption, please see the prospectus.
** MSCI EAFE Index is a standard unmanaged foreign securities index
representing 1,112 securities from 20 developed countries in Europe,
Australia, and the Far East as monitored by Morgan Stanley Capital
International.
*** All country returns including that of the U.S., differ from index returns
because they represent total stock market returns as calculated by Morgan
Stanley Capital International.
MSCI World Index is an unmanaged index of selected securities. An investment
can not be made in an index.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GLOBAL LEADERS FUND
(Pine cone logo)
Disappointing results were yielded from the Fund's foreign holdings which
returned less than the international benchmarks, despite some outstanding
results from several individual companies. The Fund's international holdings as
a group returned 7.5% for the period under review. Currency returns played a
significant role in reducing investment performance, as the U.S. dollar
continued a strong appreciation trend against many of the world's major
currencies. During the period under review, the European currencies continued to
slide against the dollar, with declines ranging from 3% to 5%. Only the Japanese
Yen managed a short-lived rally, appreciating some 6.5%. This currency
volatility has had the effect of negating some of the Fund's local gains. While
the Fund's assets are still too small to effectively enact an active currency
management strategy, growth in asset size will allow for a more proactive
approach in the future.

Positives for the quarter included the Fund's two largest foreign commitments:
Germany and Japan, where slowly improving economic conditions, driven mainly by
export demand, helped boost equity prices. The Fund's Japanese holdings as a
group, rose 28.5% since the Fund's inception, from a combination of strong stock
performance and favorable exchange rates. Shares of the Fund's largest holding,
convenience store retailer Seven Eleven-Japan appreciated 35.0% and was the
Fund's best overall contributor to return. Other Japanese issues, warehouse and
port management company, Mitsui-Soko rose 20.1% and electronic game maker
Nintendo rose 19.2%. From Germany, overall shares rose 15.3%, led by software
giant SAP Ag, +42.8%; and drug and specialty chemical firm Altana Ag, +40.8%,
both on new product introductions and strong earnings outlooks. Despite overall
uninspiring returns from the Fund's foreign holdings, several firms registered
outstanding gains. From Italy, shares of apparel firm Benetton Spa rose 62.2%;
from Spain, electric utility Endesa was up 58.0%, and from Belgium, specialty
instrument manufacturer Barco NV rose 41.0%.

Sub-par results occurred from the United Kingdom, where threats from a strong
currency, re-emergent inflation and potentially higher interest rates hung over
the British markets despite an initial positive reaction to the new government.
Declines occurred in export-oriented industrial manufacturing and engineering
companies due to the strength of the British pound vis-a vis other world
currencies. Shares of Rentokil Group, -17.1%; TI Group Plc, -11.0%; and Wolseley
Plc, -5.5% were representative of this trend. Returns from Canada, Netherlands
and Malaysia were also weak.

The unwavering of the U.S. economic juggernaut and the continued improvement in
the world's other major economies should, we believe, make for a fertile global
investment climate for at least the immediate future. A global focus on
companies' efforts to enhance competitiveness and profitability through new
product innovations, restructurings, mergers and aggressive marketing of new and
existing products should help sustain strong growth going forward. Our approach,
which utilizes careful stock selection through a strong fundamental and
valuation review coupled with an active discipline to sell issues which no
longer meet the investment criteria, seeks to capitalize on these macro trends.
Overall quality will remain a major emphasis, as the portfolio objective will be
on "leaders" rather than followers. The paramount focus is to position the Fund
so that it may seek to outperform in any economic environment, through
investment in companies which have consistently proven the ability to do the
same. We will remain ever vigilant with respect to macro-economic, political and
social changes.

We appreciate your support during the start-up of Evergreen VA Global Leaders
Fund, and look forward to providing you with continued updates of the Fund's
progress.

August 1997

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA AGGRESSIVE GROWTH FUND
(Pine cone logo)
A REPORT FROM YOUR
PORTFOLIO MANAGER

HAROLD R. IRELAND, JR.

We are pleased to report to you on the investment philosophy and strategies of
the recently introduced Evergreen VA Aggressive Growth Fund. This portfolio
offers investors an opportunity to participate in some fast-growing sectors of
the U.S. equity markets.

The Fund seeks growth of capital by investing predominantly in small company
stocks as well as stocks of mid-cap companies. The Fund's management looks for
financially strong companies whose five-year record of sales and earnings growth
exceeds 20% per year. To qualify, the companies must have low debt and strong
insider ownership. The selected companies must demonstrate, through their
products and services, leadership in their respective industries.

The decisions on industry weightings are driven by current market and profit
trends. We try to overweight those sectors that we think can offer the highest
potential for growth going forward. The Fund has significant positions in
computer, technology, and information services sectors. Other industries
included are specialty retail and financial stocks. The management believes in a
disciplined strategy of holding long-term onto quality, aggressive growth
companies, resulting in a comparatively low portfolio turnover. This strategy
can reward investors under the new tax law.

OUTLOOK

Over the past twelve months, the bull market has benefited mainly a narrow band
of large, established, blue-chip companies, leaving the smaller and mid-sized
companies in disfavor. However, we see several reasons to believe that small-and
mid-cap stocks are well positioned for a strong come-back.

First, stocks of smaller companies have higher expected earnings growth than the
stock market in general, as represented by the large-company S&P 500 Stock
Index. Even though the price performance of the small- and mid-cap stocks lagged
the broad S&P 500 Stock Index during the past twelve months, the revenue growth
of the average company in the Fund's portfolio has not deteriorated at all.

Second, there has been less issuance of new stock during the past year,
decreasing the potential supply. Finally, at present prices, aggressive growth
stocks appear to have reached bargain levels seen only three other times in the
past eighteen years. In the past, valuations this low have been followed by
outperfromance and it has paid handsomely to own smaller, aggressive growth
stocks rebounding from depressed levels.

We believe, Evergreen VA Aggressive Growth Fund represents a timely and
well-designed investment in today's market environment.

August 1997

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA STRATEGIC INCOME FUND
(Pine cone logo)
A REPORT FROM YOUR
PORTFOLIO MANAGER

PRESCOTT CROCKER

We are pleased to introduce a new investment option in the Evergreen variable
annuity. Evergreen VA Strategic Income Fund offers you broad access to
fixed-income markets both in the United States and abroad.

The Fund seeks generous income by investing in three distinct asset classes:
U.S. high-yield corporate bonds, U.S. government and agency securities, and
foreign fixed-income securities. The three asset classes combined offer the
benefits of strategic diversification because they tend to react differently to
market conditions. Although each of the three asset classes tends to reflect the
market forces of its own class, together they can produce attractive total
return with higher price stability than would likely be achieved by investing in
any one asset class.

The asset allocation decisions are driven by current market forces. We try to
overweight those asset classes that we think can offer the best risk-adjusted
returns going forward. However, the Fund is never less than 20% represented in
any of the three asset categories. This is to help ensure that the Fund can get
the benefits of diversification if any one of these very distinct markets
underperforms.

In selecting securities for the portfolio, we focus on three key elements. The
first is the quality of the management. We believe the most reliable indication
of the management's commitment to the business is a high equity stake in the
company. The degree of the management's experience and understanding of the
business are also important factors.

The second important element in our analysis is the value of assets. We closely
follow stock valuations, so that when we analyze the quality and the future
potential of the issuers under consideration, we can derive our own assessment
of the level of risk in that debt. This process is similar to that of a bank
evaluating the value of a house in order to determine the extent of the loan. If
the loan is perceived to be risky, the amount of the loan will be lower than it
would be for a higher-quality loan.

The third element is cashflow. We try to be forward looking, to have an
understanding of how profit margins might change and how cashflows might
develop. Consequently, we generally invest in companies that have tangible
assets and real cashflows rather than in start-up companies.

The level of experience of the portfolio manager has a direct impact on the
performance. The manager at the helm of Evergreen VA Strategic Income Fund is
one of the founders of the strategic fund concept, with more than 25 years'
experience and an impressive track record managing high yield and strategic
portfolios.

August 1977

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FUND
(Pine cone logo)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
SIX MONTHS
ENDED TEN MONTHS
JUNE 30, 1997 ENDED
(UNAUDITED) DECEMBER 31, 1996*
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................................. $ 11.41 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income................................................................. 0.03 0.05
Net realized and unrealized gain on investments....................................... 2.00 1.44
Total from investment operations...................................................... 2.03 1.49
LESS DISTRIBUTIONS FROM:
Net investment income................................................................. 0 (0.05)
Net realized gain on investments...................................................... 0 (0.03)
Total distributions................................................................... 0 (0.08)
NET ASSET VALUE, END OF PERIOD........................................................ $ 13.44 $ 11.41
Total return.......................................................................... 17.79% 14.90%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses...................................................................... 1.02%+ 1.00%+
Total expenses, excluding indirectly paid expenses.................................. 1.00%+ 1.00%+
Total expenses, excluding fee waiver and expense reimbursement...................... 1.51%+ 2.38%+
Net investment income............................................................... 0.59%+ 0.87%+
Portfolio turnover rate............................................................... 21% 6%
Average commission rate per share..................................................... $0.0619 $ 0.0661
NET ASSETS, END OF PERIOD (THOUSANDS)................................................. $15,480 $ 10,862
</TABLE>

+ Annualized.
* For the period from March 1, 1996 (commencement of operations) to December 31,
1996.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FOUNDATION FUND
(Pine cone logo)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
SIX MONTHS
ENDED TEN MONTHS
JUNE 30, 1997 ENDED
(UNAUDITED)** DECEMBER 31, 1996*
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..................................................... $ 11.31 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income.................................................................... 0.13 0.16
Net realized and unrealized gain on investments.......................................... 1.37 1.37
Total from investment operations......................................................... 1.50 1.53
LESS DISTRIBUTIONS FROM:
Net investment income.................................................................... 0 (0.16)
Net realized gain on investments......................................................... 0 (0.06)
Total distributions...................................................................... 0 (0.22)
NET ASSET VALUE, END OF PERIOD........................................................... $ 12.81 $ 11.31
Total return............................................................................. 13.26% 15.30%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses......................................................................... 1.02%+ 1.00%+
Total expenses, excluding indirectly paid expenses..................................... 1.00%+ 1.00%+
Total expenses, excluding fee waiver and expense reimbursement......................... 1.26%+ 1.72%+
Net investment income.................................................................. 2.22%+ 2.70%+
Portfolio turnover rate.................................................................. 19% 12%
Average commission rate per share........................................................ $0.0676 $ 0.0675
NET ASSETS, END OF PERIOD (THOUSANDS).................................................... $21,683 $ 15,812
</TABLE>

+ Annualized.
* For the period from March 1, 1996 (commencement of operations) to December
31, 1996.
** Calculated based on average shares outstanding

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GROWTH AND INCOME FUND
(Pine cone logo)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
SIX MONTHS
ENDED TEN MONTHS
JUNE 30, 1997 ENDED
(UNAUDITED) DECEMBER 31, 1996*
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..................................................... $ 11.83 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income.................................................................... 0.03 0.06
Net realized and unrealized gain on investments.......................................... 1.94 1.84
Total from investment operations......................................................... 1.97 1.90
LESS DISTRIBUTIONS FROM:
Net investment income.................................................................... 0 (0.06)
Net realized gain on investments......................................................... 0 (0.01)
Total distributions...................................................................... 0 (0.07)
NET ASSET VALUE, END OF PERIOD........................................................... $ 13.80 $ 11.83
Total return............................................................................. 16.65% 19.00%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses......................................................................... 1.02%+ 1.00%+
Total expenses, excluding indirectly paid expenses..................................... 1.00%+ 1.00%+
Total expenses, excluding fee waiver and expense reimbursement......................... 1.40%+ 2.05%+
Net investment income.................................................................. 0.56%+ 1.00%+
Portfolio turnover rate.................................................................. 6% 2%
Average commission rate per share........................................................ $0.0576 $ 0.0579
NET ASSETS, END OF PERIOD (THOUSANDS).................................................... $21,418 $ 14,484
</TABLE>

+ Annualized.
* For the period from March 1, 1996 (commencement of operations) to December 31,
1996.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GLOBAL LEADERS FUND
(Pine cone logo)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1997*
(UNAUDITED)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......................................................................... $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................................................................................... 0.07
Net realized and unrealized gain on investments and foreign currency related transactions..................... 0.96
Total from investment operations.............................................................................. 1.03
LESS DISTRIBUTIONS FROM:
Net investment income......................................................................................... 0
Net realized gain on investments and foreign currency related transactions.................................... 0
Total distributions........................................................................................... 0
NET ASSET VALUE, END OF PERIOD................................................................................ $ 11.03
Total return.................................................................................................. 10.30%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses.............................................................................................. 1.01%+
Total expenses, excluding indirectly paid expenses.......................................................... 1.00%+
Total expenses, excluding fee waiver and expense reimbursement.............................................. 5.44%+
Net investment income....................................................................................... 2.41%+
Portfolio turnover rate....................................................................................... 6%
Average commission rate per share............................................................................. $ 0.0474
NET ASSETS, END OF PERIOD (THOUSANDS)......................................................................... $ 1,322
</TABLE>

+ Annualized.
* For the period from March 6, 1997 (commencement of operations) to June 30,
1997.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA AGGRESSIVE GROWTH FUND
(Pine cone logo)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1997*
(UNAUDITED)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......................................................................... $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss........................................................................................... (0.02)
Net realized and unrealized gain on investments............................................................... 0.29
Total from investment operations.............................................................................. 0.27
LESS DISTRIBUTIONS FROM:
Net investment income......................................................................................... 0
Net realized gain on investments.............................................................................. 0
Total distributions........................................................................................... 0
NET ASSET VALUE, END OF PERIOD................................................................................ $ 10.27
Total return.................................................................................................. 2.70%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses.............................................................................................. 1.01%+
Total expenses, excluding indirectly paid expenses.......................................................... 1.00%+
Total expenses, excluding fee waiver and expense reimbursement.............................................. 3.86%+
Net investment income....................................................................................... (0.51%)+
Portfolio turnover rate....................................................................................... 8%
Average commission rate per share............................................................................. $ 0.0519
NET ASSETS, END OF PERIOD (THOUSANDS)......................................................................... $ 1,132
</TABLE>

+ Annualized.
* For the period from March 11, 1997, (commencement of operations) to June 30,
1997.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA STRATEGIC INCOME FUND
(Pine cone logo)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1997*
(UNAUDITED)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......................................................................... $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................................................................................... 0.12
Net realized and unrealized gain on investments............................................................... 0
Total from investment operations.............................................................................. 0.12
LESS DISTRIBUTIONS FROM:
Net investment income......................................................................................... 0
Net realized gains on investments............................................................................. 0
Total distributions........................................................................................... 0
NET ASSET VALUE, END OF PERIOD................................................................................ $ 10.12
Total return.................................................................................................. 1.20%
RATIOS/SUPPLEMENTAL DATA
RATIOS TO AVERAGE NET ASSETS:
Total expenses.............................................................................................. 1.00%+
Total expenses, excluding indirectly paid expenses.......................................................... 1.00%+
Total expenses, excluding fee waiver and expense reimbursement.............................................. 6.10%+
Net investment income....................................................................................... 3.76%+
Portfolio turnover rate....................................................................................... 0%
NET ASSETS, END OF PERIOD (THOUSANDS)......................................................................... $ 1,129
</TABLE>

+ Annualized.
* For the period from March 11, 1997 (commencement of operations) to June 30,
1997.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
<S> <C>
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCKS-- 90.7%
<C> <C> <S> <C>
BANKS-- 6.1%
4,000 Comerica, Inc......................... $ 272,000
4,000 F&M National Corp..................... 104,000
3,000 First of America Bank Corp............ 137,250
6,000 First Palm Beach Bancorp, Inc......... 204,000
4,000 Hibernia Corp. Cl. A.................. 55,750
6,000 Seacoast Banking Corp. of Florida Cl.
A................................... 178,500
951,500
BUILDING, CONSTRUCTION & FURNISHINGS-- 8.0%
16,250 Cavalier Homes, Inc................... 162,500
12,500 Clayton Homes, Inc.................... 178,125
2,000 Kaufman & Broad Home Corp............. 35,125
10,000 Knoll, Inc............................ 237,500
5,000 La-Z-Boy Chair Co..................... 180,000
3,000 * M/I Schottenstein Homes, Inc.......... 33,750
10,000 * Morgan Products, Ltd.................. 75,000
12,000 * Toll Brothers, Inc.................... 220,500
4,500 US Home Corp.......................... 119,531
1,242,031
BUSINESS EQUIPMENT & SERVICES-- 4.6%
6,000 * Input/Output, Inc..................... 108,750
10,000 * Medic Computer Systems, Inc........... 222,500
3,000 * Metromail Corp........................ 74,250
4,000 * Parametric Technology Corp............ 170,250
5,000 * Zebra Technologies Corp............... 139,375
715,125
CHEMICAL & AGRICULTURAL PRODUCTS-- 1.1%
1,000 Schulman (A.), Inc.................... 24,625
4,000 Sigma-Aldrich Corp.................... 140,250
164,875
COMMUNICATION SYSTEMS & SERVICES-- 5.1%
4,625 * Andrew Corp........................... 130,078
1,000 * Aspect Telecommunications Corp........ 22,250
1,000 * Cisco Systems, Inc.................... 67,125
5,000 * Coherent, Inc......................... 222,500
3,000 * Inter-Tel, Inc........................ 63,750
5,000 * InterCel, Inc......................... 69,375
4,000 Sprint Corp........................... 210,500
785,578

SHARES VALUE

COMMON STOCKS-- CONTINUED
CONSUMER PRODUCTS & SERVICES-- 4.7%
2,000 * American Business Information, Inc.... $ 43,500
500 * Broderbund Software, Inc.............. 12,344
2,700 CUC International, Inc................ 69,694
5,000 Harman International Industries,
Inc................................. 210,625
5,000 K2, Inc............................... 158,437
2,000 Nike, Inc............................. 116,750
3,000 Toro Co. (The)........................ 113,625
724,975
ELECTRICAL EQUIPMENT & ELECTRONICS-- 6.8%
2,000 AMP, Inc.............................. 83,500
6,000 * Atmel Corp............................ 168,000
3,000 * Dupont Photomasks, Inc................ 162,000
5,000 Fair Issac & Co., Inc................. 222,812
5,000 * Hadco Corp............................ 327,500
4,625 * Paxar Corp............................ 87,297
1,051,109
FINANCE & INSURANCE-- 8.6%
1,500 AMBAC, Inc............................ 114,563
4,000 Countrywide Credit Industries, Inc.... 124,750
5,000 Edwards (A.G.), Inc................... 213,750
5,000 Enhance Financial Services Group,
Inc................................. 219,375
1,000 Federal National Mortgage
Association......................... 43,625
4,000 * Leasing Solutions, Inc................ 61,000
5,200 Merrill Lynch & Co., Inc.............. 310,050
5,000 SunAmerica, Inc....................... 243,750
1,330,863
HEALTHCARE PRODUCTS & SERVICES-- 10.7%
3,000 Arrow International, Inc.............. 87,750
5,000 * Arterial Vascular Engineering, Inc.... 160,937
8,000 Beckman Instruments, Inc.............. 386,000
2,850 Columbia/HCA Healthcare Corp.......... 112,041
10,000 * Idexx Laboratories, Inc............... 124,375
2,000 Johnson & Johnson..................... 128,750
2,000 * Living Centers of America, Inc........ 79,000
1,000 McKesson Corp......................... 77,500
2,000 Merck & Co., Inc...................... 207,000
2,000 St. Jude Medical, Inc................. 78,000
6,000 Stryker Corp.......................... 209,250
1,650,603
INDUSTRIAL SPECIALTY PRODUCTS & SERVICES-- 11.4%
1,500 * ADFlex Solutions, Inc................. 22,500
2,000 AptarGroup, Inc....................... 90,500
4,000 Dover Corp............................ 246,000
</TABLE>

(CONTINUED)

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- CONTINUED
INDUSTRIAL SPECIALTY PRODUCTS &
SERVICES-- CONTINUED
6,000 Fisher Scientific International,
Inc................................. $ 285,000
5,000 Furon Co.............................. 156,875
1,000 * Gaylord Container Corp. Cl. A......... 7,688
1,200 Kaydon Corp........................... 59,550
5,000 Park Electrochemical Corp............. 131,562
4,000 Robbins & Myers, Inc.................. 130,000
4,250 Snap-on, Inc.......................... 167,344
6,000 Spartech Corp......................... 78,000
8,000 Teleflex, Inc......................... 250,000
2,900 * UCAR International, Inc............... 132,675
1,757,694
INFORMATION SERVICES & TECHNOLOGY-- 8.6%
6,750 * Analytical Surveys, Inc............... 92,812
8,000 * Gateway 2000, Inc..................... 259,500
6,000 Hewlett-Packard Co.................... 336,000
1,500 Intel Corp............................ 212,719
1,000 Intel Corp. $41.75 warrants-expiring
3/14/98............................. 101,500
1,200 * Microsoft Corp........................ 151,650
4,000 * Sun Microsystems, Inc................. 148,875
2,000 * Trimble Navigation, Ltd............... 35,500
1,338,556
METAL PRODUCTS & SERVICES-- 1.3%
10,000 Commonwealth Industries, Inc.......... 203,750
PUBLISHING, BROADCASTING & ENTERTAINMENT-- 1.8%
5,200 Belo (A.H.) Corp...................... 216,450
1,500 * Evergreen Media Corp. Cl. A........... 66,938
283,388
REAL ESTATE-- 5.5%
1,500 * Alexander's, Inc...................... 105,563
14,000 Continental Homes Holding Corp........ 246,750
7,000 Evans Withycombe Residential, Inc..... 145,250
4,000 * HFS, Inc.............................. 232,000
3,000 Starwood Lodging Trust................ 128,062
857,625

SHARES VALUE

COMMON STOCKS-- CONTINUED
RETAILING & WHOLESALE-- 3.3%
3,000 Avnet, Inc............................ $ 172,500
6,000 * Cole National Corp.................... 264,000
2,000 Lowe's Companies., Inc................ 74,250
510,750
THRIFT INSTITUTIONS-- 1.1%
8,800 York Financial Corp................... 174,900
TRANSPORTATION-- 2.0%
3,000 * Heartland Express, Inc................ 70,500
9,000 Southwest Airlines Co................. 232,875
303,375
TOTAL COMMON STOCKS
(COST $11,452,078).................. 14,046,697
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<C> <C> <S> <C>
SHORT-TERM INVESTMENTS-- 10.0%
GOVERNMENT AGENCY NOTES & BONDS-- 10.0%
Federal Home Loan Bank
$ 100,000 5.43%, 7/2/97........................ 99,985
500,000 5.41%, 7/11/97....................... 499,249
150,000 5.40%, 7/18/97....................... 149,617
Federal Home Loan Mortgage
50,000 5.41%, 7/3/97........................ 49,985
150,000 5.42%, 7/14/97....................... 149,706
100,000 5.43%, 7/22/97....................... 99,683
200,000 5.41%, 7/24/97....................... 199,309
Federal National Mortgage Assn.
200,000 5.41%, 7/15/97....................... 199,579
100,000 5.40%, 7/18/97....................... 99,745
TOTAL SHORT-TERM INVESTMENTS
(COST $1,546,858).................. 1,546,858
</TABLE>

<TABLE>
<C> <C> <S> <C> <C>
TOTAL INVESTMENTS--
(COST $12,998,936)........... 100.7% 15,593,555
OTHER ASSETS AND
LIABILITIES-- NET............ (0.7) (113,116)
NET ASSETS..................... 100.0% $15,480,439
</TABLE>

* Non-income producing securities.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FOUNDATION FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1997

<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- 65.0%

AEROSPACE & DEFENSE-- 2.0%
8,000 Boeing Co. (The)..................... $ 424,500

BANKS-- 5.4%
3,000 BankBoston Corp...................... 216,187
3,000 Bankers Trust Corp................... 261,000
3,000 Comerica, Inc........................ 204,000
2,000 F&M National Corp.................... 52,000
4,500 First of America Bank Corp........... 205,875
8,000 Seacoast Banking Corp. of Florida Cl.
A.................................. 238,000
1,177,062
BUILDING, CONSTRUCTION & FURNISHINGS-- 3.2%
3,000 Armstrong World Industries, Inc...... 220,125
11,000 Continental Homes Holding Corp....... 193,875
16,700 * Pacific Greystone Corp............... 268,244
682,244
BUSINESS EQUIPMENT & SERVICES-- 1.3%
1,200 * Crescent Operating, Inc.............. 15,600
3,000 International Business Machines
Corp............................... 270,563
286,163
CHEMICAL & AGRICULTURAL PRODUCTS-- 2.7%
6,000 Du Pont (E. I.) De Nemours & Co...... 377,250
8,500 Schulman (A.), Inc................... 209,313
586,563
COMMUNICATION SYSTEMS & SERVICES-- 2.2%
9,000 Sprint Corp.......................... 473,625

CONSUMER PRODUCTS & SERVICES-- 2.1%
2,300 Goodyear Tire & Rubber Co. (The)..... 145,619
4,000 International Flavours & Fragrances,
Inc................................ 202,000
2,000 Nike, Inc. Cl. B..................... 116,750
464,369
DIVERSIFIED COMPANIES-- 3.7%
6,400 General Electric Co.................. 418,400
7,000 Morton International, Inc............ 211,312
3,000 PPG Industries, Inc.................. 174,375
804,087
ELECTRICAL EQUIPMENT & ELECTRONICS-- 1.8%
4,000 AMP, Inc............................. 167,000
5,300 Harman International Industries,
Inc................................ 223,263
390,263
SHARES VALUE
COMMON STOCKS-- CONTINUED
ENERGY-- 0.6%
600 Consolidated Natural Gas Co.......... $ 32,288
1,600 Exxon Corp........................... 98,400
130,688
FINANCE & INSURANCE-- 10.1%
2,800 Allstate Corp. (The)................. 204,400
2,000 American International Group, Inc.... 298,750
3,000 Beneficial Corp...................... 213,187
4,000 Countrywide Credit Industries, Inc... 124,750
7,200 Federal National Mortgage
Association........................ 314,100
2,400 Legg Mason, Inc...................... 129,150
3,000 Merrill Lynch & Co., Inc............. 178,875
5,000 NAC RE Corp.......................... 241,875
7,500 Raymond James Financial, Inc......... 205,313
4,000 Torchmark Corp....................... 285,000
2,195,400
HEALTHCARE PRODUCTS & SERVICES-- 5.2%
2,000 Abbott Laboratories.................. 133,500
2,000 American Home Products Corp.......... 153,000
4,050 Columbia/HCA Healthcare Corp......... 159,216
750 * Covance, Inc......................... 14,484
2,400 Johnson & Johnson.................... 154,500
3,000 * Living Centers of America, Inc....... 118,500
2,000 Medtronic, Inc....................... 162,000
2,100 Merck & Co., Inc..................... 217,350
375 * Quest Diagnostics, Inc............... 7,711
1,120,261
INDUSTRIAL SPECIALTY PRODUCTS & SERVICES-- 6.3%
3,000 Applied Power, Inc................... 154,875
4,387 * Autoliv, Inc......................... 171,641
3,000 Corning, Inc......................... 166,875
3,000 Deere & Co........................... 164,625
5,000 Snap-on, Inc......................... 196,875
8,000 Timken Co. (The)..................... 284,500
3,000 * Western Atlas, Inc................... 219,750
1,359,141
INFORMATION SERVICES & TECHNOLOGY-- 6.2%
2,000 * Cisco Systems, Inc................... 134,250
7,000 Hewlett-Packard Co................... 392,000
3,000 Intel Corp........................... 425,437
2,000 * Microsoft Corp....................... 252,750
4,000 * Sun Microsystems, Inc................ 148,875
1,353,312
</TABLE>

(CONTINUED)

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA FOUNDATION FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 1997

[CAPTION]
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- CONTINUED
PUBLISHING, BROADCASTING & ENTERTAINMENT-- 0.2%
300 Disney Walt Co. (The)................ $ 24,075
400 Time Warner, Inc..................... 19,300
43,375
REAL ESTATE-- 7.8%
7,000 Apartment Investment & Management Co.
Cl. A REIT......................... 197,750
7,000 Capstead Mortgage Corp. REIT......... 172,812
5,000 CarrAmerica Realty Corp. REIT........ 143,750
2,000 Columbus Realty Trust REIT........... 45,500
12,000 Crescent Real Estate Equities, Inc.
REIT............................... 381,000
12,000 Crown American Realty Trust REIT..... 111,000
2,000 Evans Withycombe Residential, Inc.
REIT............................... 41,500
5,000 FAC Realty, Inc. REIT................ 30,894
2,475 * HFS, Inc............................. 143,550
4,000 Horizon Group, Inc. REIT............. 53,750
5,000 Kranzco Realty Trust REIT............ 85,340
3,000 Marriott International, Inc.......... 184,125
1,900 Oasis Residential, Inc. REIT......... 44,650
2,000 Santa Anita Realty Enterprises, Inc.
REIT............................... 62,125
1,697,746
RETAILING & WHOLESALE-- 2.9%
4,000 Avnet, Inc........................... 230,000
4,000 Lowe's Companies., Inc............... 148,500
4,000 Mercantile Stores Co., Inc........... 251,750
630,250
THRIFT INSTITUTIONS-- 1.3%
4,000 Golden West Financial Corp........... 280,000
TOTAL COMMON STOCKS
(COST $11,116,816)................. 14,099,049

SHARES VALUE

U.S. GOVERNMENT OBLIGATIONS-- 15.6%
TREASURY NOTES & BONDS-- 15.6%
U.S. Treasury Bonds
1,000,000 7.125%, 2/15/23...................... $ 1,029,687
2,000,000 6.25%, 8/15/23....................... 1,851,250
500,000 U.S. Treasury Notes
6.50%, 8/15/05..................... 498,906
TOTAL U.S. GOVERNMENT OBLIGATIONS
(COST $3,339,328).................. 3,379,843

</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<C> <C> <S> <C>
SHORT-TERM INVESTMENTS-- 19.8%
GOVERNMENT AGENCY NOTES & BONDS-- 19.8%
$ 200,000 Federal Farm Credit Bank
5.40%, 7/31/97................... 199,100
Federal Home Loan Mortgage Corp.
900,000 5.41%, 7/11/97..................... 898,647
200,000 5.40%, 7/18/97..................... 199,490
100,000 5.41%, 7/3/97...................... 99,970
450,000 5.43%, 7/3/97...................... 449,864
1,300,000 5.42%, 7/14/97..................... 1,297,456
450,000 5.41%, 7/24/97..................... 448,445
Federal National Mortgage
Association
100,000 5.44%, 7/11/97..................... 99,849
200,000 5.41%, 7/15/97..................... 199,579
400,000 5.43%, 7/30/97..................... 398,250
4,290,650
TOTAL SHORT-TERM INVESTMENTS
(COST $4,290,650)................ 4,290,650
</TABLE>

<TABLE>
<C> <C> <S> <C> <C>
TOTAL INVESTMENTS--
(COST $18,746,794)......... 100.4% 21,769,542
OTHER ASSETS AND
LIABILITIES-- NET.......... (0.4) (86,741)
NET ASSETS................... 100.0% $21,682,801
</TABLE>

* Non-income producing securities.
REIT-- Real Estate Investment Trust.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GROWTH AND INCOME FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1997

[CAPTION]
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

</TABLE>

<TABLE>
<CAPTION>
COMMON STOCKS-- 86.9%
<C> <C> <S> <C>
BANKS-- 4.5%
8,225 Banc One Corp........................ $ 398,398
10,000 Maryland Federal Bancorp, Inc........ 435,000
3,100 Susquehanna Bancshares, Inc.......... 121,675
955,073
BUILDING, CONSTRUCTION & FURNISHINGS-- 1.9%
14,000 * Furniture Brands International,
Inc................................ 271,250
3,000 Lone Star Industries, Inc............ 135,938
407,188
BUSINESS EQUIPMENT & SERVICES-- 17.0%
11,000 Air Express International Corp....... 437,250
15,000 Circle International Group, Inc...... 395,625
7,250 Computer Associates International,
Inc................................ 403,734
5,000 * Compuware Corp....................... 238,750
16,500 * Metromail Corp....................... 408,375
15,000 Pittston Brink's Group............... 450,000
14,000 Pittston Burlington Group............ 393,750
25,000 * Platinum Technology.................. 331,250
6,000 * Policy Management Systems Corp....... 282,000
10,000 Reynolds & Reynolds Co. (The), Cl.
A.................................. 157,500
7,000 Wackenhut Corp. (The) Cl. B.......... 139,563
3,637,797
CHEMICAL & AGRICULTURAL PRODUCTS-- 3.4%
1,300 Air Products & Chemicals, Inc........ 105,625
10,000 Engelhard Corp....................... 209,375
6,000 Grace (W.R.) & Co.................... 330,750
1,000 Pioneer Hi-Bred International,
Inc................................ 80,000
725,750
COMMUNICATION SYSTEMS & SERVICES-- 0.5%
4,000 * AirTouch Communications.............. 109,500
CONSUMER PRODUCTS & SERVICES-- 1.4%
1,000 CPC International, Inc............... 92,313
4,500 Philip Morris Companies, Inc......... 199,687
292,000
DIVERSIFIED COMPANIES-- 1.2%
4,000 ITT Industries, Inc.................. 103,000
5,500 Morton International, Inc............ 166,031
269,031
SHARES VALUE

COMMON STOCKS-- CONTINUED
ELECTRICAL EQUIPMENT & SERVICES-- 4.3%
10,000 AVX Corp............................. $ 270,000
11,000 Sensormatic Electronics Corp......... 141,625
10,000 * Unitrode Corp........................ 503,750
915,375
ENERGY-- 11.8%
5,500 * Atwood Oceanics, Inc................. 368,500
15,000 Berry Petroleum Co. Cl. A............ 285,000
1,722 Halliburton Co....................... 136,468
17,500 * Houston Exploration, Co. (The)....... 272,344
500 Kerr-McGee Corp...................... 31,688
10,000 * Oryx Energy Co....................... 211,250
17,000 Petroleum Helicopters, Inc........... 291,125
12,000 * Reading & Bates Corp................. 321,000
15,500 * Santa Fe Energy Resources, Inc....... 227,656
20,000 Southwestern Energy Co............... 260,000
3,000 Williams Companies, Inc. (The)....... 131,250
2,536,281
FINANCE & INSURANCE-- 1.2%
6,000 Federal Home Loan Mortgage Corp...... 206,250
1,000 Federal National Mortgage
Association........................ 43,625
249,875
FOREST PRODUCTS-- 1.4%
10,000 Deltic Timber Corp................... 293,125
HEALTHCARE PRODUCTS & SERVICES-- 10.9%
1,000 Abbott Laboratories.................. 66,750
500 * Amgen, Inc........................... 29,063
10,000 * Foundation Health Systems, Inc....... 303,125
8,500 * Lincare Holdings, Inc................ 365,500
7,500 * Living Centers of America, Inc....... 296,250
5,000 Manor Care, Inc...................... 163,125
5,000 McKesson Corp........................ 387,500
1,000 Schering-Plough Corp................. 47,875
5,000 * Vencor, Inc.......................... 211,250
800 Warner-Lambert Co.................... 99,400
12,500 West Co., Inc. (The)................. 357,812
2,327,650
</TABLE>

(CONTINUED)

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GROWTH AND INCOME FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 1997

[CAPTION]
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- CONTINUED
INDUSTRIAL SPECIALTY PRODUCTS & SERVICES-- 6.7%
1,875 * Autoliv, Inc......................... $ 73,359
6,500 Borg-Warner Automotive, Inc.......... 351,406
1,000 Carpenter Technology Corp............ 45,750
4,500 Ingersoll-Rand Co.................... 277,875
14,000 * Strattec Security Corp............... 288,750
7,000 Sundstrand Corp...................... 390,688
1,427,828
LEISURE & TOURISM-- 2.0%
5,000 * Choice Hotels International, Inc..... 84,688
15,000 Gaylord Entertainment Co. Cl. A...... 345,937
430,625
PUBLISHING, BROADCASTING & ENTERTAINMENT-- 7.1%
7,650 * American Radio Systems Corp. Cl. A... 305,044
11,500 * Jacor Communications, Inc............ 439,875
5,000 * Katz Media Group, Inc................ 32,813
7,000 * Lin Television Corp.................. 308,875
4,500 TCA Cable TV, Inc.................... 169,312
5,500 Time Warner, Inc..................... 265,375
1,521,294
RETAILING & WHOLESALE-- 0.3%
2,000 * Carson Pirie Scott & Co.............. 63,500
THRIFT INSTITUTIONS-- 2.4%
1,000 Washington Mutual, Inc............... 59,750
10,000 Webster Financial Corp............... 455,000
514,750
TRANSPORTATION-- 7.0%
12,000 Atlas Air, Inc....................... 414,000
5,000 Burlington Northern Santa Fe......... 449,375
4,500 Kansas City Southern Industries,
Inc................................ 290,250
5,000 Union Pacific Corp................... 352,500
1,506,125
UTILITIES-- 1.9%
18,000 TNP Enterprises, Inc................. 417,375
TOTAL COMMON STOCKS
(COST $14,789,503)................. 18,600,142

SHARES VALUE

PREFERRED STOCKS-- 0.0% (A)
HEALTHCARE PRODUCTS & SERVICES-- 0.0$%
3,500 * Fresenius National Med Care, Inc.
Series D......................... 201
TOTAL PREFERRED STOCKS
(COST $736)...................... 201

PRINCIPAL
AMOUNT

SHORT-TERM INVESTMENTS-- 12.8%
GOVERNMENT AGENCY NOTES & BONDS-- 12.8%
Federal Home Loan Mortgage Corp.
$ 150,000 5.43%, 7/2/97...................... 149,977
200,000 5.41%, 7/3/97...................... 199,940
750,000 5.42%, 7/14/97..................... 748,532
250,000 5.43%, 7/14/97..................... 249,510
Federal National Mortgage
Association
100,000 5.44%, 7/11/97..................... 99,849
100,000 5.41%, 7/15/97..................... 99,790
150,000 5.40%, 7/18/97..................... 149,617
1,050,000 5.43%, 7/30/97..................... 1,045,407
TOTAL SHORT-TERM INVESTMENTS
(COST $2,742,622)................ 2,742,622
</TABLE>

<TABLE>
<C> <C> <S> <C> <C>
TOTAL INVESTMENTS--
(COST $17,532,861)......... 99.7% 21,342,965
OTHER ASSETS AND
LIABILITIES-- NET.......... 0.3 74,777
NET ASSETS................... 100.0% $21,417,742
</TABLE>

* Non-income producing securities.
(a) Less than one tenth of one percent.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GLOBAL LEADERS FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1997

[CAPTION]
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- 94.3%
<C> <C> <S> <C>
AUSTRALIA-- 0.9%
2,500 Incitec, Ltd............................. $ 12,149

BELGIUM-- 2.9%
50 * Barco NV................................. 10,131
25 Colruyt SA............................... 12,194
5 UCB SA................................... 15,842
38,167
CANADA-- 5.9%
1,300 Bombardier, Inc.......................... 29,465
1,100 * Canadian Natural Resources, Ltd.......... 28,556
900 DuPont Canada, Inc....................... 19,552
77,573
FRANCE-- 6.1%
25 Carrefour SA............................. 18,156
50 Castorama Dubois Investisse.............. 7,036
150 Hermes Internatonal...................... 14,039
125 LAPEYRE SA............................... 8,296
50 SEB SA................................... 8,763
100 Societe Technip.......................... 11,605
100 Synthelabo............................... 13,018
80,913
GERMANY-- 7.2%
15 ALTANA AG................................ 15,997
10 Hugo Boss AG............................. 11,811
800 RWE AG................................... 34,402
100 SAP AG................................... 20,068
25 Suedzucker AG............................ 13,072
95,350
HONG KONG-- 5.4%
1,000 Cheung Kong Holdings, Ltd................ 9,874
14,000 First Pacific Ltd........................ 17,890
2,000 Giordano International, Ltd.............. 1,368
1,000 Henderson Land Development Co., Ltd...... 8,874
500 Hong Kong Telecommunications, Ltd. ADS... 11,688
16,000 National Mutual Asia Ltd................. 17,761
600 Wing Lung Bank........................... 3,826
71,281

SHARES VALUE
COMMON STOCKS-- CONTINUED
ITALY-- 4.4%
624 Benetton Group SpA ADS................... $ 20,202
700 Industrie Natuzzi SpA ADS................ 17,937
300 Luxottica Group SpA ADS.................. 20,344
58,483
JAPAN-- 8.7%
1,000 Mitsui Soko Co........................... 6,971
300 Nintendo Co., Ltd........................ 25,126
1,000 Nippon Chemical.......................... 7,198
1,000 Seven-Eleven Japan Co., Ltd.............. 75,554
114,849
MALAYSIA-- 1.6%
400 AMMB Holdings Berhad..................... 2,488
400 Malayan Banking Berhad................... 4,200
1,000 Perusahaan Otomobil Nasional Berhad...... 4,675
1,000 * RHB Capital Berhad....................... 3,169
1,000 United Engineers Ltd. Berhad............. 7,211
21,743
NETHERLANDS-- 4.0%
400 Elsevier NV ADS.......................... 13,525
300 Getronics NV............................. 9,690
75 Nutricia Verenigde Bedrijven NV.......... 11,844
400 VNU...................................... 8,844
75 Wolters Kluwer NV........................ 9,132
53,035
NORWAY-- 0.6%
100 Orkla ASA................................ 7,382

SPAIN-- 4.4%
400 Centros Comerciales Pryca, SA............ 8,660
500 Empresa Nacional de Electricdad ADS...... 42,531
600 Prosegur, CIA de Seguridad SA............ 7,329
58,520
SWEDEN-- 2.2%
1,066 Astra AB ADS............................. 20,254
250 Hennes & Mauritz AB Cl. B................ 8,791
29,045
</TABLE>

(CONTINUED)

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GLOBAL LEADERS FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 1997

[CAPTION]
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- CONTINUED
UNITED KINGDOM-- 7.5%
500 Argos Plc................................ $ 4,538
300 Burmah Castrol Plc....................... 5,076
200 Carlton Communications Plc ADS........... 8,600
200 Granada Group Plc........................ 2,631
300 Legal & General Group Plc................ 2,033
1,000 Lloyds TSB Group Plc..................... 10,275
1,000 Morgan Crucible Company Plc.............. 7,427
500 Next Plc................................. 5,645
500 Reckitt & Colman Plc..................... 7,469
1,200 Rentokil Initial......................... 4,209
100 Reuters Holdings Plc ADS................. 6,300
100 SmithKline Beecham Plc ADS............... 9,163
200 Smiths Industries Plc.................... 2,558
600 TI Group Plc............................. 5,231
100 United News & Media Plc ADS.............. 1,160
300 Vodafone Group Plc ADS................... 14,531
266 Williams Holdings Plc.................... 1,440
200 Wolseley Plc............................. 1,560
99,846
UNITED STATES-- 32.5%
200 AlliedSignal Inc......................... 16,800
100 * Amgen, Inc............................... 5,813
300 AT & T Corp.............................. 10,519
100 Avon Products, Inc....................... 7,056
200 Callaway Golf Co......................... 7,100
200 Carnival, Corp. Cl. A.................... 8,250
100 * Cisco Systems, Inc....................... 6,713
200 Coca Cola Co. (The)...................... 13,500
100 * Compaq Computer Corp..................... 9,925
200 Computer Associates International,
Inc.................................... 11,138
300 * CUC International, Inc................... 7,744
100 Deere & Co............................... 5,488
200 Disney Walt Co. (The).................... 16,050

SHARES VALUE

COMMON STOCKS-- CONTINUED
UNITED STATES-- CONTINUED
100 Dover Corp............................... $ 6,150
200 Dresser Inds Inc......................... 7,450
300 Federal National Mortgage Association.... 13,087
100 Gannett Inc.............................. 9,875
100 Gap, Inc................................. 3,888
400 General Electric Co...................... 26,150
100 Goodyear Tire & Rubber Co. (The)......... 6,331
200 Home Depot, Inc. (The)................... 13,787
100 Intel Corp............................... 14,181
100 Marriott International, Inc.............. 6,138
200 Marsh & McLennan Co., Inc................ 14,275
200 Mattel, Inc.............................. 6,775
200 MBNA Corp................................ 7,325
200 Merck & Co., Inc......................... 20,700
200 Merrill Lynch & Co., Inc................. 11,925
100 * Microsoft Corp........................... 12,637
100 Norwest Corp............................. 5,625
300 * Oracle Systems Corp...................... 15,112
400 * Parametric Technology Corp............... 17,025
100 Procter & Gamble Co. (The)............... 14,125
200 Schering-Plough Corp..................... 9,575
100 Schwab (Charles) & Co., Inc.............. 4,069
100 Student Loan Marketing Association....... 12,700
200 SunAmerica, Inc.......................... 9,750
200 Torchmark Corp........................... 14,250
600 Wal-Mart Stores, Inc..................... 20,287
429,288
TOTAL INVESTMENTS--
(COST $1,138,704).............. 94.3% 1,247,624
OTHER ASSETS AND
LIABILITIES-- NET.............. 5.7 74,797
NET ASSETS....................... 100.0% $1,322,421

* Non-income producing securities

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA GLOBAL LEADERS FUND
(Pine cone logo)
INDUSTRY DIVERSIFICATION
June 30, 1997

</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
NET ASSETS
<S> <C>
Automotive Equipment & Manufacturing......... 0.3%
Banks........................................ 2.0
Building, Construction & Furnishings......... 2.7
Chemical & Agricultural Products............. 3.3
Consumer Products & Services................. 8.2
Diversified Companies........................ 5.5
Energy....................................... 5.3
Finance & Insurance.......................... 8.3
Food & Beverage Products..................... 3.5
Healthcare Products & Services............... 9.9
Industrial Specialty Products & Services..... 5.1

<CAPTION>
PERCENTAGE OF
NET ASSETS
<S> <C>
Information Systems & Technology............. 8.8%
Leisure & Tourism............................ 1.1
Publishing, Broadcasting & Entertainment..... 5.8
Real Estate.................................. 1.4
Retailing & Wholesale........................ 13.6
Telecommunication Equipment & Services....... 2.0
Textile & Apparel............................ 3.5
Utilities.................................... 4.0
TOTAL LONG-TERM INVESTMENTS................ 94.3
OTHER ASSETS AND LIABILITIES-- NET......... 5.7
NET ASSETS................................. 100.0%
</TABLE>

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA AGGRESSIVE GROWTH FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1997

[CAPTION]
<TABLE>
<CAPTION>
SHARES VALUE
<C> <C> <S> <C>

COMMON STOCKS-- 98.2%
<C> <C> <S> <C>
BUSINESS SERVICES-- 24.8%
3,000 * APAC TeleServices, Inc................... $ 58,313
1,000 Danka Business Systems, ADR.............. 40,875
1,100 First Data Corp.......................... 48,331
200 * Fiserv, Inc.............................. 8,925
700 * Medic Computer Systems, Inc.............. 15,575
900 Paychex, Inc............................. 34,200
2,000 * Sitel Corp............................... 41,250
1,000 * Sterling Commerce, Inc................... 32,875
280,344
COMPUTERS-- 16.0%
1,100 * Adaptec, Inc............................. 38,225
1,600 * American Power Conversion Corp........... 30,400
1,000 * Cisco Systems, Inc....................... 67,125
1,400 * Gateway 2000, Inc........................ 45,412
181,162
CONSUMER/DIVERSIFIED-- 4.8%
2,200 * Republic Industries, Inc................. 54,725

FINANCIAL SERVICES-- 4.1%
1,300 Green Tree Financial Corp................ 46,312

HEALTHCARE-- 10.5%
200 HBO & Co................................. 13,775
700 * Health Management Associates, Inc........ 19,950
800 * HEALTHSOUTH Corp......................... 19,950
700 Medtronic, Inc........................... 56,700
600 Mylan Laboratories, Inc.................. 8,850
119,225

SHARES VALUE
COMMON STOCKS-- CONTINUED
INFORMATION SERVICES & TECHNOLOGY-- 13.3%
700 * BMC Software, Inc........................ $ 38,763
500 * Microsoft Corp........................... 63,187
700 * Network General Corp..................... 10,413
900 * Parametric Technology Corp............... 38,306
150,669
OIL/GAS-- 12.1%
1,000 * EVI, Inc................................. 42,000
900 * Petroleum Geo Services ADR............... 43,988
700 Transocean Offshore, Inc................. 50,837
136,825
RETAILING (SPECIALTY)-- 12.6%
500 * Bed Bath & Beyond, Inc................... 15,188
500 Fastenal Co.............................. 24,500
300 Home Depot, Inc. (The)................... 20,681
1,500 * Staples, Inc............................. 34,875
2,500 * Viking Office Products, Inc.............. 47,500
142,744
</TABLE>

<TABLE>
<C> <C> <S> <C> <C>
TOTAL INVESTMENTS--
(COST $1,053,968).............. 98.2% 1,112,006
OTHER ASSETS AND
LIABILITIES-- NET.............. 1.8 19,969
NET ASSETS....................... 100.0% $1,131,975
</TABLE>

* Non-income producing securities.
ADR-- American Depository Receipt

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
EVERGREEN VA STRATEGIC INCOME FUND
(Pine cone logo)
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
UNITED STATES TREASURY BILLS-- 97.3%
$1,100,000 4.65%, 7/17/97....................... $1,097,727
</TABLE>

<TABLE>
<C> <C> <S> <C> <C>
TOTAL INVESTMENTS--
(COST $1,097,727).......... 97.3% 1,097,727
OTHER ASSETS AND
LIABILITIES-- NET.......... 2.7 30,775
NET ASSETS................... 100.0% $1,128,502
</TABLE>

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
June 30, 1997
<TABLE>
<CAPTION>
GROWTH GLOBAL AGGRESSIVE
EVERGREEN FOUNDATION & INCOME LEADERS GROWTH
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(identified cost, $12,998,936;
18,746,794; $17,532,861; $1,138,704,
$1,053,968, and $1,097,727,
respectively).......................... $15,593,555 $21,769,542 $21,342,965 $1,247,624 $1,112,006
Foreign currency, at value (identified
cost, $14,050)......................... 0 0 0 13,967 0
Cash..................................... 3,273 9,207 42,956 48,715 33,826
Receivable for investments sold.......... 0 0 0 14,622 18,155
Receivable for Fund shares sold.......... 19,016 14,831 43,805 0 0
Dividends and interest receivable........ 10,005 100,453 9,668 2,326 156
Unamortized organization expense......... 15,887 15,887 15,887 15,608 15,608
Total assets......................... 15,641,736 21,909,920 21,455,281 1,342,862 1,179,751
LIABILITIES
Payable for investments purchased........ 131,374 186,725 0 0 24,312
Advisory & administrative service fees
payable................................ 17,781 29,064 27,125 0 2,001
Due to related parties................... 0 0 0 3,486 6,382
Accrued organizational expenses.......... 0 0 0 6,710 6,710
Accrued expenses and other liabilities... 12,142 11,330 10,414 10,245 8,371
Total liabilities.................... 161,297 227,119 37,539 20,441 47,776
NET ASSETS................................. $15,480,439 $21,682,801 $21,417,742 $1,322,421 $1,131,975
NET ASSETS REPRESENTED BY
Paid-in capital.......................... $12,276,500 $17,611,521 $17,108,692 $1,206,647 $1,097,814
Undistributed net investment income
(loss)................................. 37,540 201,195 46,319 8,554 (1,655)
Accumulated net realized gain (loss) on
investments and foreign currency
related transactions................... 571,780 847,337 452,627 (1,628) (22,222)
Net unrealized appreciation on
investments and foreign currency
related transactions................... 2,594,619 3,022,748 3,810,104 108,848 58,038
Total net assets..................... $15,480,439 $21,682,801 $21,417,742 $1,322,421 $1,131,975
SHARES OUTSTANDING......................... 1,151,768 1,692,627 1,551,631 119,947 110,249
NET ASSET VALUE PER SHARE.................. $ 13.44 $ 12.81 $ 13.80 $ 11.03 $ 10.27

<CAPTION>
STRATEGIC
INCOME
FUND
<S> <C>
ASSETS
Investments, at value
(identified cost, $12,998,936;
18,746,794; $17,532,861; $1,138,704,
$1,053,968, and $1,097,727,
respectively).......................... $1,097,727
Foreign currency, at value (identified
cost, $14,050)......................... 0
Cash..................................... 40,388
Receivable for investments sold.......... 0
Receivable for Fund shares sold.......... 0
Dividends and interest receivable........ 0
Unamortized organization expense......... 15,608
Total assets......................... 1,153,723
LIABILITIES
Payable for investments purchased........ 0
Advisory & administrative service fees
payable................................ 0
Due to related parties................... 10,278
Accrued organizational expenses.......... 6,710
Accrued expenses and other liabilities... 8,233
Total liabilities.................... 25,221
NET ASSETS................................. $1,128,502
NET ASSETS REPRESENTED BY
Paid-in capital.......................... $1,115,542
Undistributed net investment income
(loss)................................. 12,960
Accumulated net realized gain (loss) on
investments and foreign currency
related transactions................... 0
Net unrealized appreciation on
investments and foreign currency
related transactions................... 0
Total net assets..................... $1,128,502
SHARES OUTSTANDING......................... 111,510
NET ASSET VALUE PER SHARE.................. $ 10.12
</TABLE>

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

STATEMENTS OF OPERATIONS (UNAUDITED)
Six months ended June 30, 1997
<TABLE>
<CAPTION>
GROWTH GLOBAL AGGRESSIVE
EVERGREEN FOUNDATION & INCOME LEADERS GROWTH
FUND FUND FUND FUND* FUND**
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest.................................... $ 48,007 $ 177,514 $ 56,568 $ 1,347 $ 1,037
Dividends................................... 56,994 118,534 78,260 10,768 588
TOTAL INCOME.................................. 105,001 296,048 134,828 12,115 1,625
EXPENSES
Management fee.............................. 62,447 75,833 82,038 3,385 1,968
Administrative services fees................ 2,470 3,438 3,227 125 118
Transfer agent fees......................... 3,639 3,834 3,789 19 19
Custodian fees.............................. 14,220 14,776 14,453 5,965 1,121
Professional fees........................... 8,547 8,435 8,559 6,828 6,827
Trustees fees............................... 2,724 2,587 2,387 150 150
Insurance expenses.......................... 2,000 2,874 3,121 700 329
Printing.................................... 881 968 993 500 500
Amortization of organization expenses....... 2,148 2,148 2,148 1,059 1,059
Miscellaneous............................... 441 653 330 580 580
Total expenses............................ 99,517 115,546 121,045 19,311 12,671
Less: Indirectly paid expenses.............. (1,610) (1,200) (1,310) (28) (21)
Fee waivers and/or expense
reimbursements from Investment
Adviser............................... (31,818) (22,413) (33,380) (15,722) (9,370)
Net expenses.............................. 66,089 91,933 86,355 3,561 3,280
NET INVESTMENT INCOME....................... 38,912 204,115 48,473 8,554 (1,655)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY RELATED
TRANSACTIONS
Net realized gain (loss) on investments..... 555,449 621,167 452,658 (708) (22,222)
Net realized gain (loss) on foreign currency
related transactions...................... 0 0 0 (920) 0
Net realized gain (loss) on investments and
foreign currency related transactions..... 555,449 621,167 452,658 (1,628) (22,222)
Net change in unrealized appreciation on
investments and foreign currency related
transactions.............................. 1,678,523 1,579,937 2,386,594 108,848 58,038
Net realized and unrealized gain on
investments and foreign currency related
transactions.............................. 2,233,972 2,201,104 2,839,252 107,220 35,816
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................ $2,272,884 $2,405,219 $2,887,725 $115,774 $ 34,161

<CAPTION>
STRATEGIC
INCOME
FUND**
<S> <C>
INVESTMENT INCOME
Interest.................................... $ 16,407
Dividends................................... 0
TOTAL INCOME.................................. 16,407
EXPENSES
Management fee.............................. 1,877
Administrative services fees................ 121
Transfer agent fees......................... 19
Custodian fees.............................. 761
Professional fees........................... 6,800
Trustees fees............................... 0
Insurance expenses.......................... 0
Printing.................................... 500
Amortization of organization expenses....... 1,059
Miscellaneous............................... 1,100
Total expenses............................ 12,237
Less: Indirectly paid expenses.............. 0
Fee waivers and/or expense
reimbursements from Investment
Adviser............................... (8,790)
Net expenses.............................. 3,447
NET INVESTMENT INCOME....................... 12,960
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY RELATED
TRANSACTIONS
Net realized gain (loss) on investments..... 0
Net realized gain (loss) on foreign currency
related transactions...................... 0
Net realized gain (loss) on investments and
foreign currency related transactions..... 0
Net change in unrealized appreciation on
investments and foreign currency related
transactions.............................. 0
Net realized and unrealized gain on
investments and foreign currency related
transactions.............................. 0
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................ $ 12,960
</TABLE>

* For the period from March 6, 1997 (commencement of operations) to June 30,
1997.
** For the period from March 11, 1997 (commencement of operations) to June 30,
1997.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
Six months ended June 30, 1997
<TABLE>
<CAPTION>
GROWTH GLOBAL AGGRESSIVE
EVERGREEN FOUNDATION & INCOME LEADERS GROWTH
FUND FUND FUND FUND* FUND**
<S> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income................. $ 38,912 $ 204,115 $ 48,473 $ 8,554 $ (1,655)
Net realized gain (loss) on
investments and foreign currency
related transactions................ 555,449 621,167 452,658 (1,628) (22,222)
Net change in unrealized appreciation
on investments and and foreign
currency related transactions....... 1,678,523 1,579,937 2,386,594 108,848 58,038
Net increase in net assets resulting
from operations................... 2,272,884 2,405,219 2,887,725 115,774 34,161
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold............. 2,996,654 3,698,645 4,241,550 1,207,106 1,130,408
Net asset value of shares issued in in
reinvestment of distributions....... 0 0 0 0 0
Payment for shares redeemed........... (651,565) (233,347) (195,380) (469) (32,604)
Net increase in net assets resulting
from capital share transactions... 2,345,089 3,465,298 4,046,170 1,206,637 1,097,804
Total increase in net assets...... 4,617,973 5,870,517 6,933,895 1,322,411 1,131,965
NET ASSETS
Beginning of period................... 10,862,466 15,812,284 14,483,847 10 10
END OF PERIOD......................... $15,480,439 $21,682,801 $21,417,742 $1,322,421 $1,131,975
Undistributed net investment income
(loss)................................ $ 37,540 $ 201,195 $ 46,319 $ 8,554 $ (1,655)

<CAPTION>
STRATEGIC
INCOME
FUND**
<S> <C>
OPERATIONS
Net investment income................. $ 12,960
Net realized gain (loss) on
investments and foreign currency
related transactions................ 0
Net change in unrealized appreciation
on investments and and foreign
currency related transactions....... 0
Net increase in net assets resulting
from operations................... 12,960
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold............. 1,115,764
Net asset value of shares issued in in
reinvestment of distributions....... 0
Payment for shares redeemed........... (232)
Net increase in net assets resulting
from capital share transactions... 1,115,532
Total increase in net assets...... 1,128,492
NET ASSETS
Beginning of period................... 10
END OF PERIOD......................... $1,128,502
Undistributed net investment income
(loss)................................ $ 12,960
</TABLE>

* For the period from March 6, 1997 (commencement of operations) to June 30,
1997.
** For the period from March 11, 1997 (commencement of operations) to June 30,
1997.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

STATEMENTS OF CHANGES IN NET ASSETS
Ten months ended December 31, 1996*

<TABLE>
<CAPTION>
GROWTH
EVERGREEN FOUNDATION & INCOME
FUND FUND FUND
<S> <C> <C> <C>
OPERATIONS
Net investment income................................................... $ 43,997 $ 220,736 $ 64,862
Net realized gain on investments........................................ 42,797 304,381 16,894
Net change in unrealized appreciation on investments.................... 916,096 1,442,811 1,423,510
Net increase in net assets resulting from operations.................. 1,002,890 1,967,928 1,505,266
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income................................................... (43,997) (220,736) (64,756)
In excess of net investment income...................................... (1,372) (2,920) (2,154)
Net realized gain on investments........................................ (26,466) (78,211) (17,000)
In excess of net realized gain in investment............................ 0 0 (31)
Total distributions to shareholders................................... (71,835) (301,867) (83,941)
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold............................................... 10,637,851 14,456,301 13,455,462
Payment for shares redeemed............................................. (811,608) (645,278) (510,215)
Net asset value of shares issued in reinvestment of distributions....... 71,835 301,867 83,941
Net increase in net assets resulting from capital share
transactions........................................................ 9,898,078 14,112,890 13,029,188
Total increase in net assets........................................ 10,829,133 15,778,951 14,450,513
NET ASSETS
Beginning of period..................................................... 33,333 33,333 33,334
END OF PERIOD........................................................... $10,862,466 $15,812,284 $14,483,847
Distribution in excess of net investment income......................... $ (1,372) $ (2,920) $ (2,154)
</TABLE>

* For the period from March 1, 1996 (commencement of operations) to December 31,
1996.

SEE COMBINED NOTES TO FINANCIAL STATEMENTS.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

COMBINED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND NATURE OF OPERATIONS

Evergreen Variable Trust (the "Trust") is organized as a Massachusetts business
trust with six separate investment series, Evergreen VA Fund ("Evergreen"),
Evergreen VA Foundation Fund ("Foundation"), Evergreen VA Growth and Income
("Growth and Income"), Evergreen VA Global Leaders Fund ("Global Leaders"),
Evergreen VA Aggressive Growth Fund ("Aggressive"), and Evergreen VA Strategic
Income Fund ("Strategic Income"), collectively known as the "Funds". The Funds
are registered under the Investment Company Act of 1940, as amended (the "Act"),
as open-ended, diversified, management investment companies. Shares of each Fund
may only be purchased by insurance companies for the purpose of funding variable
annuity contracts or variable life insurance policies.

The investment adviser to Evergreen, Foundation, Growth and Income and Global
Leaders is Evergreen Asset Management Corp. ("Evergreen Asset"), a wholly-owned
subsidiary of First Union Corporation ("First Union"). Lieber & Co, a wholly
owned subsidiary of First Union, provides certain sub-advisory services to
Evergreen Asset in connection with its duties as investment adviser to
Evergreen, Foundation, Growth and Income and Global Leaders.

Evergreen's investment objective is to seek capital appreciation by investing in
securities of little-known or relatively small companies, or companies
undergoing changes which the Fund's investment adviser believes will have
favorable consequences. Income will not be a factor in the selection of
portfolio investments. Foundation's investment objectives, in order of priority,
are reasonable income, conservation of capital and capital appreciation. The
Fund invests principally in income producing common and preferred stocks,
securities convertible into or exchangeable into common stocks and other fixed
income securities. Growth and Income's investment objective is to achieve a
return composed of capital appreciation and current income by investing in the
securities of companies which are undervalued in the marketplace relative to
those companies' assets, breakup value, earnings and potential earnings growth.
Global Leader's investment objective is to achieve capital appreciation by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
Global Leaders' investment adviser will attempt to screen the largest companies
in the world's major industrialized countries and invest in the 100 best based
on certain qualitative and quantitative criteria.

The Capital Management Group of First Union ("CMG") serves as the investment
advisor to Aggressive. Aggressive's investment objective is to seek long-term
capital appreciation by investing primarily in common stocks of emerging growth
companies and in larger, more established companies, all of which are viewed by
Aggressive's investment adviser as having above average appreciation potential.

Keystone Investment Management Company ("Keystone"), a wholly-owned subsidiary
of First Union, is the investment adviser to Strategic Income. Strategic
Income's investment objective is to seek high income from interest on debt
securities and secondarily, considers potential for growth of capital in
selecting securities.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles, which require
management to make estimates and assumptions that affect amounts reported
herein. Although actual results could differ from these estimates, any such
differences are expected to be immaterial to the net assets of the Funds.

SECURITY VALUATIONS-- Investments in securities traded on a national securities
exchange or included on the NASDAQ National Market System ("NMS") are valued at
the last reported sale price. Securities traded on an exchange or NMS for which
there has been no sale and other securities traded in the over-the-counter
market are valued at the mean between the last reported bid and asked price.
International securities traded on an established exchange are valued on the
basis of the last sales price on the exchange where primarily traded. Unlisted
securities for which market quotations are not readily available are valued at a
price quoted by one or more brokers. U.S. Government obligations held by the
Funds are valued at the mean between the over-the-counter bid and asked prices.
Corporate bonds, other fixed-income securities, mortgage and other asset-backed
securities are valued at prices provided by an independent pricing service. In
determining value for normal institutional-size transactions, the pricing
service uses methods based on market transactions for comparable securities and
various relationships between securities which are generally recognized by
institutional traders. Securities for which market quotations are not available
from independent pricing services are valued at fair value as determined in good
faith according to procedures approved by the Funds' Board of Trustees.
Short-term investments with remaining maturities of 60 days or less are carried
at amortized cost, which approximates market value.

REPURCHASE AGREEMENTS-- Each Fund may invest in repurchase agreements.
Securities pledged as collateral for repurchase agreements are held by the
custodian on the Fund's behalf. Each Fund monitors the adequacy of the
collateral daily and will require the seller to provide additional collateral in
the event the market value of the securities pledged falls below the carrying
value of the repurchase agreement, including accrued interest. Each 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.

FOREIGN CURRENCY-- The books and records of the Funds are maintained in United
States (U.S.) dollars. Foreign currency amounts are translated into United
States dollars as follows: market value of investments, assets and liabilities
at the daily rate of exchange; purchases and sales of investments, income and
expenses at the rate of exchange prevailing on the respective dates of such
transactions. Net unrealized foreign exchange gain (loss) resulting from changes
in foreign currency exchange rates is a component of net unrealized appreciation
(depreciation) on investments and foreign currency related transactions. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)

currency gains and losses between trade date and settlement date on investment
securities transactions and foreign currency related transactions. The foreign
currency gains and losses realized from the difference between the amounts of
interest and dividends recorded on the books of the Fund and the amount actually
received are included in dividend and interest income. The portion of foreign
currency gains and losses related to fluctuations in exchange rates between the
initial purchase trade date and subsequent sale trade date is included in
realized gain (loss) on investments.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS-- The Funds may enter into forward
foreign currency exchange contracts ("forward contracts") to settle portfolio
purchases and sales of securities denominated in a foreign currency and to hedge
certain foreign currency assets or liabilities. Forward contracts are recorded
at the forward rate and marked-to-market daily. Realized gains and losses
arising from such transactions are included in net realized gain (loss) on
foreign currency 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 contracts involve elements of market
risk in excess of the amount reflected in the statement of assets and
liabilities.

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 amortization of discounts and
accretion of premiums. Dividend income is recorded on the ex-dividend date.

DIVIDENDS TO SHAREHOLDERS-- Dividends from net investment income and net
realized capital gains on investments, if any, will be distributed at least
annually. Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles.

INCOME TAXES-- The Funds have qualified and intend to qualify in the future as
regulated investment companies under the Internal Revenue Code of 1986, as
amended (the "Code"). Thus, the Funds are relieved of any federal income tax
liability by distributing all of their net taxable investment income and net
taxable capital gains, if any, to their shareholders. The Funds also intend to
avoid excise tax liability by making the required distributions under the Code.
Accordingly, no provision for federal income taxes is required. To the extent
that realized capital gains can be offset by capital loss carryforwards, it is
each Fund's policy not to distribute such gains.

Additionally, the Funds intend to meet the diversification standards on the
underlying assets of a variable insurance contract under the Code. Failure to
meet these standards would cause the disqualification of the variable insurance
contract as an annuity contract or life insurance contract and would result in
the immediate imposition of federal income tax on contract owners with respect
to earnings allocable to the contract.

UNAMORTIZED ORGANIZATION EXPENSES-- Costs related to each Fund's organization
have been deferred and are being amortized over a period of benefit not to
exceed 60 months from the date each Fund commenced operations.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. SHARES OF BENEFICIAL INTEREST

The Funds have an unlimited number shares of beneficial interest authorized.
Transactions in shares of beneficial interest for the period were as follows:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997** DECEMBER 31, 1996*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
EVERGREEN
Shares sold.......................................................... 249,821 $2,996,654 1,018,981 $10,637,851
Shares issued on reinvestment of distributions....................... -- -- 6,296 71,835
Shares redeemed...................................................... (50,260) (651,565) (76,404) (811,608)
Net increase......................................................... 199,561 $2,345,089 948,873 $ 9,898,078
FOUNDATION
Shares sold.......................................................... 313,645 $3,698,645 1,429,795 $14,456,301
Shares issued on reinvestment of distributions....................... -- -- 26,433 301,867
Shares redeemed...................................................... (19,366) (233,347) (61,213) (645,278)
Net increase......................................................... 294,279 $3,465,298 1,395,015 $14,112,890
GROWTH AND INCOME
Shares sold.......................................................... 342,994 $4,241,550 1,260,584 $13,455,462
Shares issued on reinvestment of distributions....................... -- -- 7,071 83,941
Shares redeemed...................................................... (15,796) (195,380) (46,555) (510,215)
Net increase......................................................... 327,198 $4,046,170 1,221,100 $13,029,188
GLOBAL LEADERS
Shares sold.......................................................... 119,992 $1,207,106
Shares issued on reinvestment of distributions....................... -- --
Shares redeemed...................................................... (46) (469)
Net increase......................................................... 119,946 1,206,637
AGGRESSIVE
Shares sold.......................................................... 113,513 $1,130,409
Shares issued on reinvestment of distributions....................... -- --
Shares redeemed...................................................... (3,265) (32,605)
Net increase......................................................... 110,248 $1,097,804
STRATEGIC INCOME
Shares sold.......................................................... 111,532 $1,115,764
Shares issued on reinvestment of distributions....................... -- --
Shares redeemed...................................................... (23) (232)
Net increase......................................................... 111,509 1,115,532
</TABLE>

* For the period from March 1, 1996 (commencement of operations) to December
31, 1996.

** For Global Leaders, Aggressive and Strategic Income the above share activity
is for the period from their commencement of operations on March 6, 1997,
March 11, 1997, and March 11, 1997, respectively, to June 30, 1997.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)

4. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS

Evergreen, Foundation, Growth and Income and Global Leaders have entered into
investment advisory agreements with Evergreen Asset, pursuant to which Evergreen
Asset will manage each Fund's investments, provide various administrative
services and supervise each Fund's daily business affairs. In consideration for
Evergreen Asset performing its obligations, Evergreen, Growth and Income and
Global Leaders will pay to Evergreen Asset an investment advisory fee accrued
daily and payable monthly, at an annual rate of .95 of 1% of their average daily
net assets. Foundation will pay an investment advisory fee at an annual rate of
.825 of 1% of its average daily net assets. Evergreen Asset has voluntarily
agreed to reimburse the Funds to the extent that each Fund's annual operating
expenses (including the investment advisory fee and amortization of
organizational expenses but excluding interest, taxes, brokerage commissions and
extraordinary expenses) exceed 1.00% of its average daily net assets. Evergreen
Asset waived advisory fees of $31,818, $22,413, $33,380 and $3,385 for the
period ended June 30, 1997, and reimbursed other expenses of $12,337 pursuant to
this agreement for Global Leaders.

Lieber & Company, an affiliate of First Union, is the investment sub-adviser to
Evergreen, Foundation, Growth and Income and Global Leaders, and also provides
brokerage services with respect to substantially all security transactions
executed on the New York or American Stock Exchanges. For transactions executed
during the period ended June 30, 1997, Evergreen, Foundation, Growth and Income
and Global Leaders incurred brokerage commissions of $2,312, $7,126, $6,861 and
$823, respectively, with Lieber & Company. Lieber & Company is reimbursed by
Evergreen Asset, at no additional expense to the Funds, for its costs of
providing sub-advisory services.

Aggressive has entered into an investment advisory agreement with CMG, pursuant
to which CMG will manage the Fund's investments and supervise each Fund's daily
business affairs. Aggressive will pay an investment advisory fee at an annual
rate of .60 of 1% of its average daily net assets. CMG has voluntarily agreed to
reimburse Aggressive to the extent that Aggressive's annual operating expenses
(including the investment advisory fee and amortization of organizational
expenses but excluding interest, taxes, brokerage commissions and extraordinary
expenses) exceed 1.00% of its average daily net assets. CMG waived advisory fees
of $2,086 and reimbursed other expenses of $7,284 for the period ended June 30,
1997 pursuant to this agreement.

Strategic Income has entered into an investment advisory agreement with
Keystone, pursuant to which Keystone will manage Strategic Income's investments
and supervise the Fund's daily business affairs. For providing such services,
Keystone is paid a management fee, computed daily and paid monthly calculated at
a rate of 2.0% of Strategic Income's gross dividend and interest income plus an
amount which is determined by applying percentage rates starting at .45% and
declining as net assets increase to .20% per annum, to the average daily net
asset value of the Fund. Keystone has voluntarily agreed to reimburse the Fund
to the extent that the Fund's annual operating expenses (including the
investment advisory fee and amortization of organizational expenses but
excluding interest, taxes, brokerage commissions and extraordinary expenses)
exceed 1.00% of its average daily net assets. Keystone waived advisory fees of
$1,877 and reimbursed other expenses of $6,913 for the period ended June 30,
1997 pursuant to this agreement.

Each Fund has entered into an administrative services agreement with Evergreen
Keystone Investment Services, Inc. (EKIS), a subsidiary of First Union, to
provide administrative services and to supervise each Fund's daily business
affairs. EKIS's fees are based on the average daily net assets of all of the
funds administered by EKIS for which either First Union, or its investment
advisory subsidiaries, is also the investment adviser. These fees are calculated
at the following annual rates: .050% on the first $7 billion, .035% on the next
$3 billion, .030% on the next $5 billion, .020% on the next $10 billion, .015%
on the next $5 billion and .010% on assets in excess of $30 billion. At June 30,
1997 net assets for which EKIS was the administrator for which either First
Union, or its investment advisory subsidiaries, was the investment adviser
totaled approximately $30 billion.

Effective January 1, 1997, BISYS Fund Services ("BISYS"), an affiliate of
Evergreen Keystone Distributors, Inc. ("EKD"), the distributor for the Evergreen
Keystone group of mutual funds, became sub-administrator of the Funds. As
sub-administrator BISYS provides the officers of the Funds. Each Fund paid BISYS
a fee based on the average daily net assets of all the Funds administered by
EKIS for which either First Union, or its investment advisory subsidiaries, is
also the investment advisor. The fee is calculated daily and payable monthly at
the following annual rates: .010% on the first $7 billion, .0075% on the next $3
billion, .005% on the next $15 billion and .004% on assets in excess of $25
billion. The sub-administration fee for Strategic Income is paid by Keystone.
Prior to January 1, 1997, Furman Selz LLC served as sub-administrator of the
Funds.

<PAGE>
EVERGREEN VARIABLE TRUST
(Pine cone logo)

COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. INVESTMENT TRANSACTIONS

The cost of purchases and proceeds from sales of investments, excluding
short-term securities, for the six months ended June 30, 1997 were as follows:

<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
Evergreen........................................... 4,367,483 2,418,843
Foundation.......................................... 3,305,991 3,013,882
Growth and Income................................... 4,417,235 887,811
Global Leaders*..................................... 1,205,390 65,995
Aggressive*......................................... 1,156,922 80,733
Strategic Income*................................... 0 0
</TABLE>

* For Global Leaders, Aggressive and Strategic Income the above investment
activity is for the period from their commencement of operations, March 6,
1997, March 11, 1997, and March 11, 1997, respectively, to June 30, 1997.

6. FINANCING AGREEMENT

Effective October 31, 1996, a financing agreement was put in place between all
of the Evergreen Funds and State Street, Societe Generale and ABN AMRO Bank N.V.
(collectively the "Banks"). Under this agreement, the Banks provide an unsecured
credit facility in the aggregate amount of $225 million ($112.5 million
committed and $112.5 million uncommitted) allocated evenly between the Banks.
Borrowings under these facilities bear interest at .75% per annum above the
Federal Funds rate. A commitment fee of .10% per annum will be incurred on the
unused portion of the committed facility which would be allocated to all
participating funds. State Street acts as agent for the Banks, and as agent is
entitled to a fee of $15,000 which is allocated to all of the Evergreen Funds.
The Funds had no borrowings under the financing agreements during the period
ended June 30, 1997.

7. DEFERRED TRUSTEES' FEES

Each Trustee may defer any or all compensation related to performance of duties
as a Trustee of the Funds. Each Trustee's deferred balances are allocated to
deferral accounts which are included in the accrued expenses for each Fund. The
investment performance of the deferral accounts are based on the investment
performance of certain Evergreen Funds. Any gains earned or losses incurred in
the deferral accounts are reported in each Fund's Trustees' fees and expenses.
Trustees will be paid either in one lump sum or in quarterly installments for up
to ten years at their election, not earlier than either the year in which the
Trustee ceases to be a member of the Board of Trustees or January 1, 2000. As of
June 30, 1997, the value of the Trustees deferral accounts was $3,839, $4,982,
$4,345, $227, $228 and $229 for Evergreen, Foundation, Growth and Income,
Aggressive, Global Leaders, and Strategic Income, respectively.

8. EXPENSE OFFSET ARRANGEMENT

The Funds have entered into an expense offset arrangement with their custodian.
The assets deposited with the custodian under this expense offset arrangement
could have been invested in income-producing assets.

9. DISTRIBUTIONS TO SHAREHOLDERS

On August 22, 1997, Evergreen and Foundation declared distributions to
shareholders aggregating, $0.015 and $0.125 per share, respectively. These
distributions were paid entirely from short-term capital gains earned during the
fiscal year ended December 31, 1996. These distributions were payable on August
26, 1997 to shareholders of record on August 22, 1997. These distributions are
not reflected in these financial statements.

<PAGE>
This report must be preceded or accompanied by a prospectus of an Evergreen fund
contained herein. The prospectus contains more complete information, including
fees and expenses, and should be read carefully before investing or sending
money.

<TABLE>
<C> <S>
NOT MAY LOSE VALUE
FDIC NO BANK GUARANTEE
INSURED
</TABLE>

EVERGREEN KEYSTONE DISTRIBUTOR, INC.