EVERGREEN VARIABLE ANNUITY TRUST
Evergreen VA Blue Chip Fund
Evergreen VA Omega Fund
Prospectus, May 1, 2000
[LOGO OF EVERGREEN FUNDS]
The Securities and Exchange Commission has not determined that the
information in this prospectus is accurate or complete, nor has it
approved or disapproved these securities. Anyone who tells you otherwise
is committing a crime.
<PAGE>
TABLE OF CONTENTS
FUND RISK/RETURN SUMMARIES:
<TABLE>
<S> <C>
Overview of Fund Risks..................................................... 2
Evergreen VA Blue Chip Fund................................................ 4
Evergreen VA Omega Fund (formerly Evergreen VA Aggressive Growth Fund)..... 6
GENERAL INFORMATION:
The Funds' Investment Advisors............................................. 6
The Funds' Portfolio Managers.............................................. 6
Calculating the Share Price................................................ 6
Participating Insurance Companies.......................................... 6
How to Buy and Redeem Shares............................................... 7
Other Services............................................................. 7
The Tax Consequences of Investing in the Funds............................. 7
Fees and Expenses of the Funds............................................. 7
Financial Highlights....................................................... 9
Other Fund Practices....................................................... 10
</TABLE>
In general, Funds included in this prospectus provide investors with a
selection of investment alternatives which seek to provide capital growth,
income and diversification. Shares of the Funds are sold only to separate
accounts funding variable annuity contracts and variable life insurance
policies issued by life insurance companies. For further information about
these contracts and policies, please see the separate prospectuses issued by
the participating life insurance companies.
Fund Summaries Key
Each Fund's summary is organized around the following basic topics and
questions:
INVESTMENT GOAL
What is the Fund's financial objective? You can find clarification on how
the Fund seeks to achieve its objective by looking at the Fund's strategy and
investment policies. The Fund's Board of Trustees can change the investment
objective without a shareholder vote.
INVESTMENT STRATEGY
How does the Fund go about trying to meet its goals? What types of
investments does it contain? What style of investing and investment philosophy
does it follow? Does it have limits on the amount invested in any particular
type of security?
RISK FACTORS
What are the specific risks for an investor in the Fund?
PERFORMANCE
How well has the Fund performed in the past year? The past five years? The
past ten years?
<PAGE>
OVERVIEW OF FUND RISKS
Variable Annuity Funds
Shares of the Funds are sold only to separate accounts funding variable annuity
contracts and variable life insurance policies issued by life insurance
companies. For more information about these Funds and the other variable
annuity funds offered by Evergreen, please call 1-800-847-5397.
Following this overview, you will find information on each Variable Annuity
Fund's specific investment strategies and risks.
................................................................................
Risk Factors For All Mutual Funds
Please remember that mutual fund shares are:
. not guaranteed to achieve their
investment goal
. not a deposit with a bank
. not insured, endorsed or guaranteed
by the FDIC or any government agency
. subject to investment risks,
including possible loss of your
original investment.
Like most investments, your investment
in a Fund could fluctuate
significantly in value over time and
could result in a loss of money.
Following are some of the most important factors that may affect the value of
your investment. Other factors may be described in the discussion following
this overview:
Stock Market Risk
Your investment in a Fund that invests in stocks will be affected by general
economic conditions such as prevailing economic growth, inflation and interest
rates. When economic growth slows, or interest or inflation rates increase,
securities tend to decline in value. Such events also could cause companies to
decrease the dividends they pay. If these events were to occur, the value of
and dividend yield and total return earned on your investment would likely
decline. Even if general economic conditions do not change, your investment may
decline in value if particular industries, issuers or sectors your Fund invests
in do not perform well.
Market Capitalization Risk
Stocks fall into three broad market capitalization categories--large, medium
and small. Investing primarily in one category carries the risk that due to
current market conditions that category may be out of favor with investors. If
valuations of large capitalization companies appear to be greatly out of
proportion to the valuations of small or medium capitalization companies,
investors may migrate to the stocks of small and mid-sized companies causing a
Fund that invests in these companies to increase in value more rapidly than a
Fund that invests in larger, fully-valued companies. Investing in medium and
small capitalization companies may be subject to special risks associated with
narrower product lines, more limited financial resources, smaller management
groups, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of small and medium capitalization
companies may decline significantly in market downturns.
Investment Style Risk
Stocks with different characteristics tend to shift in and out of favor
depending upon market and economic conditions as well as investor sentiment. A
Fund may outperform or underperform other funds that employ a different style.
A Fund may also employ a combination of styles that impact its risk
characteristics. Examples of different styles include growth and value
investing. Growth stocks may be more volatile than other stocks because they
are more sensitive to investor perceptions of the issuing company's growth of
earnings potential. Growth oriented funds will typically underperform when
value investing is in favor. Value stocks are those that are undervalued in
comparison to their peers due to adverse business developments or other
factors. Value oriented funds will typically underperform when growth investing
is in favor.
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
VA Blue Chip Fund
FUND FACTS:
Goal:
. Capital Growth
Principal Investment:
. Large-Cap U.S. Common Stocks
Investment Advisor:
. Evergreen Investment Management Company
Portfolio Manager:
. Judith A. Warners
NASDAQ Symbol:
. None
Dividend Payment Schedule:
. Annually
................................................................................
INVESTMENT GOAL
The Fund seeks capital growth with the potential for income.
INVESTMENT STRATEGY
The Fund invests primarily in common stocks of well-established, large U.S.
companies with a long history of performance, typically recognizable names
representing a broad range of industries. To provide balance, the Fund also
invests in quality medium-sized companies. The Fund's stock selection is based
on a diversified style of equity management that allows it to invest in both
value and growth-oriented equity securities. "Value" securities are securities
that the Fund's portfolio manager believes are undervalued. The portfolio
manager looks for factors that could trigger a rise in price such as new
products or markets or positive changes in corporate structure or market
perception. "Growth" securities are securities of companies that the Fund's
portfolio manager believes have anticipated earnings ranging from steady to
accelerated growth. Buy and sell decisions are based primarily on fundamental
analysis to identify companies with leading positions within their industry,
solid management groups and strategies, and a trend of stable or accelerating
profits.
The Fund intends to sell a portfolio investment when the value of the
investment reaches or exceeds its estimated fair value, when the issuer's
investment fundamentals begin to deteriorate, when the investment no longer
appears to meet the Fund's investment objective, when the Fund must meet
redemptions, or for other investment reasons which the investment advisor deems
necessary.
The Fund may temporarily invest up to 100% of its assets in high quality money
market instruments in response to adverse economic, political or market
conditions. This strategy is inconsistent with the Fund's principal investment
strategy and investment goal, and if employed could result in a lower return
and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview
of Fund Risks" on page 2 under the headings:
. Stock Market Risk
. Market Capitalization Risk
. Investment Style Risk
For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices."
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
PERFORMANCE
Since the Fund did not commence operations until April 28, 2000, total return
information is not yet available.
EXPENSES
This section describes the estimated fees and expenses you would pay if you
bought and held shares of the Fund. The Fund does not assess any fees upon
purchase or redemption. However, surrender charges, mortality and expense risk
fees and other charges may be assessed by the participating insurance companies
under the variable annuity contracts or variable life insurance policies. Such
fees are described in the prospectus of such contracts or policies.
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)+
<TABLE>
<CAPTION>
Total Fund
Management 12b-1 Other Operating
Fee Fees Expenses Expenses++
<S> <C> <C> <C> <C>
0.61% 0.00% 0.65% 1.26%
</TABLE>
+Estimated for the fiscal year ending 12/31/2000.
++From time to time, the Fund's investment advisor may, at its discretion,
reduce or waive its fees or reimburse the Fund for certain of its expenses in
order to reduce expense ratios. The Fund's investment advisor may cease these
waivers or reimbursements at any time. The Annual Fund Operating Expenses do
not reflect fee waivers and expense reimbursements. Including fee waivers and
expense reimbursements, Total Fund Operating Expenses are estimated to be
1.00%.
The table below shows the total expenses you would pay on a $10,000 investment
over one- and three-year periods. The example is intended to help you compare
the cost of investing in this Fund versus other mutual funds and is for
illustration purposes only. The example assumes a 5% average annual return and
that you reinvest all of your dividends and distributions. Your actual costs
may be higher or lower.
Example of Fund Expenses
<TABLE>
<CAPTION>
After:
<S> <C>
1 year $128
3 years $400
</TABLE>
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
VA Omega Fund
FUND FACTS:
Goal:
. Long-Term Capital Growth
Principal Investments:
. U.S. Common Stocks of All Market Caps
Investment Advisor:
. Evergreen Investment Management Company
Portfolio Manager:
. Maureen E. Cullinane, CFA
NASDAQ Symbol:
. None
Dividend Payment Schedule:
. Annually
................................................................................
INVESTMENT GOAL
The Fund seeks long-term capital growth.
INVESTMENT STRATEGY
The Fund invests primarily in common stocks of U.S. companies across all market
capitalizations. The Fund's portfolio manager employs a growth style of equity
management. "Growth" stocks are stocks of companies that the Fund's portfolio
manager believes have anticipated earnings ranging from steady to accelerated
growth. The portfolio manager's active style of portfolio management may lead
to high portfolio turnover, but that will not limit the portfolio manager's
investment decisions.
The Fund intends to sell a portfolio investment when the value of the
investment reaches or exceeds its estimated fair value, when the issuer's
investment fundamentals begin to deteriorate, when the investment no longer
appears to meet the Fund's investment objective, when the Fund must meet
redemptions, or for other investment reasons which the investment advisor deems
necessary.
The Fund may temporarily invest up to 100% of its assets in high quality money
market instruments in response to adverse economic, political or market
conditions. This strategy is inconsistent with the Fund's principal investment
strategy and investment goal, and if employed could result in a lower return
and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview
of Fund Risks" on page 2 under the headings:
.Stock Market Risk
.Market Capitalization Risk
.Investment Style Risk
For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices."
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
PERFORMANCE
The following charts show how the Fund has performed in the past. Returns
reflect reinvestment of all dividends and distributions and fees, but do not
reflect contract or policy charges assessed by participating insurance
companies. Past performance is not an indication of future results.
The chart below shows the percentage gain or loss for the Fund in each calendar
year since its inception on 3/6/1997. It should give you a general idea of the
risks of investing in the Fund by showing how the Fund's return has varied from
year-to-year. Separate account fees charged by participating insurance
companies are not reflected in this chart. If these fees were reflected,
returns would be less than those shown.
Year-by-Year Total Return (%)
[GRAPH]
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
22.25 47.24
Best Quarter: 4th Quarter 1999 +29.99%
Worst Quarter: 3rd Quarter 1998 -10.67%
The next table lists the Fund's average annual total return over the past year
and since inception (through 12/31/1999). This table is intended to provide you
with some indication of the risks of investing in the Fund by comparing its
performance with the Russell 1000 Growth Index, which is an unmanaged, market
capitalization-weighted index measuring the performance of those Russell 1000
companies with higher price-to-book ratios and forecasted growth values. An
index does not include transaction costs associated with buying and selling
securities or any mutual fund expenses. It is not possible to invest directly
in an index.
Average Annual Total Return
(for the period ended 12/31/1999)
<TABLE>
<CAPTION>
Performance
Inception Since
Date 1 year 5 year 10 year 3/6/1997
<S> <C> <C> <C> <C> <C>
Fund 3/6/1997 47.24% N/A N/A 27.80%
Russell 1000 Growth 33.16% N/A N/A 33.39%
</TABLE>
EXPENSES
This section describes the estimated fees and expenses you would pay if you
bought and held shares of the Fund. The Fund does not assess any fees upon
purchase or redemption. However, surrender charges, mortality and expense risk
fees and other charges may be assessed by the participating insurance companies
under the variable annuity contracts or variable life insurance policies. Such
fees are described in the prospectus of such contracts or policies.
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)+
<TABLE>
<CAPTION>
Total Fund
Management 12b-1 Other Operating
Fee Fees Expenses Expenses
<S> <C> <C> <C>
0.52% 0.00% 0.44% 0.96%
</TABLE>
+Restated for the fiscal year ended 12/31/1999 to reflect current fees.
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration purposes only. The example assumes a 5% average annual return
and that you reinvest all of your dividends and distributions. Your actual
costs may be higher or lower.
Example of Fund Expenses
<TABLE>
<CAPTION>
After:
<S> <C>
1 year $98
3 years $306
5 years $531
10 years $1,178
</TABLE>
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
THE FUNDS' INVESTMENT ADVISORS
The investment advisor manages a Fund's investments and supervises its daily
business affairs. There is one investment advisors for the Evergreen
Variable Annuity Funds in this prospectus. All investment advisors for
the Evergreen Funds are subsidiaries of First Union Corporation, the sixth
largest bank holding company in the United States, with over $253 billion in
consolidated assets as of 3/31/2000. First Union Corporation is located at 301
South College Street, Charlotte, North Carolina 28288-0013.
Evergreen Investment Management Company (EIMC)
is the investment advisor to:
.VA Blue Chip Fund
.VA Omega Fund
EIMC has been managing mutual funds and private accounts since 1932 and
currently manages over $12.7 billion in investment assets for 31 of the
Evergreen Funds. EIMC is located at 200 Berkeley Street, Boston, Massachusetts
02116-5034.
Under the terms of the investment advisory agreement, each Fund's
investment advisor is entitled to receive a fee as a percentage of the Fund's
average daily net assets. Each Fund's effective advisory fee rates for the
fiscal year ended December 31, 1999 is set forth below.
<PAGE>
EVERGREEN
<TABLE>
<CAPTION>
Effective Rate for
Advisory Services
For the Year
Ended 12/31/1999
<S> <C>
VA Blue Chip Fund* N/A
VA Omega Fund+ 0.60%
</TABLE>
*The Fund commenced operations on April 28, 2000.
+The investment advisor changed on April 1, 1999 from EIM to EIMC; however, the
contractual advisory fee rate did not change.
THE FUNDS' PORTFOLIO MANAGERS
VA Blue Chip Fund
Judith A. Warners has managed the Fund since April 2000. Ms. Warners, a Vice
President and portfolio manager since January 1995, joined EIMC as an analyst
in 1981.
VA Omega Fund
Maureen E. Cullinane, CFA, has managed the Fund since April 1999. Ms. Cullinane
has been a Vice President and portfolio manager at EIMC since September 1987
and became a Senior Vice President and Senior Portfolio Manager in March 1997.
She has been employed by EIMC and its predecessor since 1974. Ms. Cullinane has
been the portfolio manager of the Evergreen Omega Fund since April 1989.
CALCULATING THE SHARE PRICE
The value of one share of a Fund, also known as the net asset value, or NAV, is
calculated on each day the New York Stock Exchange is open, at 4 p.m. Eastern
time or as of the time the Exchange closes, if earlier. The Fund calculates its
share price for each share by adding up its total assets, subtracting all
liabilities, then dividing the result by the total number of shares
outstanding. Each security held by a Fund is valued using the most recent
market data for that security. If no market data is available for a given
security, the Fund will price that security at fair value according to policies
established by the Fund's Board of Trustees. Short-term securities with
maturities of 60 days or less will be valued on the basis of amortized cost.
The price per share for a Fund purchase or the amount received for a Fund
redemption is based on the next price calculated after the order is received
and all required information is provided.
Certain Funds may invest in foreign securities that are primarily listed on
foreign exchanges that trade on weekends or other days when the Fund does not
price its shares. As a result, the NAV of the Fund may change on days when
investors will not be able to purchase or redeem the Fund's shares.
PARTICIPATING INSURANCE COMPANIES
The Funds were organized to serve as investment vehicles for separate accounts
funding variable annuity contracts and variable life insurance policies issued
by certain life insurance companies. The Funds do not currently foresee any
disadvantages to the holders of the contracts or policies arising from the fact
that the interests of holders of those contracts or policies may differ due to
the difference of tax treatment and other considerations. Nevertheless, the
Board of Trustees has established procedures for the purpose of identifying any
irreconcilable material conflicts that may arise and to determine what action,
if any, would be taken in response thereto. The variable annuity contracts and
variable life insurance policies are described in the separate prospectuses
issued by the participating insurance companies. The Evergreen Variable Annuity
Trust assumes no responsibility for such prospectuses.
HOW TO BUY AND REDEEM SHARES
Investors may not purchase or redeem shares of the Funds directly, but only
through variable annuity contracts or variable life insurance policies offered
through separate accounts of participating insurance companies. Investors
should refer to the prospectus of the variable annuity contracts or variable
life insurance policies for information on how to purchase such contracts or
policies, how to select specific Evergreen Variable Annuity Funds as investment
options for the contracts or policies and how to redeem funds or change
investment options.
The separate accounts of the participating insurance companies place orders to
purchase and redeem shares of the Funds based on, among other things, the
amount
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
of premium payments to be invested and the amount of surrender and transfer
requests (as defined in the prospectus describing the variable annuity
contracts or variable life insurance policies issued by the participating
insurance companies) to be effected on that day pursuant to the contracts or
policies.
Timing of Proceeds
Normally, we will send redemption proceeds on the next business day after we
receive a request; however, we reserve the right to wait up to seven business
days to redeem any investments.
OTHER SERVICES
Automatic Reinvestment of Dividends
For the convenience of investors, all dividends and capital gains are
distributed to the separate accounts of participating insurance companies and
are automatically reinvested, unless requested otherwise.
THE TAX CONSEQUENCES OF INVESTING IN THE FUNDS
Fund Distributions
Each Fund passes along the net income or profits it receives from its
investments. The Evergreen Variable Annuity Funds expect that any distributions
to separate accounts will be exempt from current federal income taxation to the
extent that such distributions accumulate in a variable annuity contract or
variable life insurance policy.
. Dividends. The Fund pays a yearly dividend from the dividends, interest and
other income on the securities in which it invests.
. Capital Gains. When a mutual fund sells a security it owns for a profit, the
result is a capital gain. Evergreen Variable Annuity Funds generally
distribute capital gains, if any, at least once a year.
For a discussion of the tax consequences of variable annuity contracts or
variable life insurance policies, refer to the prospectus of the variable
annuity contract or variable life insurance policies offered by the
participating insurance company. Variable annuity contracts or variable life
insurance policies purchased through insurance company separate accounts
provide for the accumulation of all earnings from interest, dividends and
capital appreciation without current federal income tax liability to the owner.
Depending on the variable annuity contract or variable life insurance policies,
distributions from the contract or policy may be subject to ordinary income tax
and, in addition, a 10% penalty tax on distributions before age 59 1/2. Only
the portion of a distribution attributable to income on the investment in the
contract is subject to federal income tax. Investors should consult with
competent tax advisors for a more complete discussion of possible tax
consequences in a particular situation.
FEES AND EXPENSES OF THE FUNDS
Every mutual fund has fees and expenses that are assessed either directly or
indirectly. This section describes each of those fees.
Management Fee
The management fee pays for the normal expenses of managing the Fund, including
portfolio manager salaries, research costs, corporate overhead expenses and
related expenses and, in certain instances, sub-advisory fees.
Other Expenses
Other expenses include miscellaneous fees from affiliated and outside service
providers. These may include legal, audit, custodial and safekeeping fees, the
printing and mailing of reports and statements, automatic reinvestment of
distributions and other conveniences for which the shareholder pays no
transaction fees.
Total Fund Operating Expenses
The total cost of running a Fund is called the expense ratio. As a shareholder,
you are not charged these fees directly; instead they are taken out before the
Fund's net asset value is calculated, and are expressed as a percentage of the
Fund's average daily net assets. The effect of these fees is reflected in the
performance results. Because these fees are "invisible," investors should
examine them closely, especially when comparing one fund with another fund in
the same investment category. There are three things to remember about expense
ratios: 1) your total return in the Fund is reduced in direct proportion to the
fees; 2) expense ratios can vary greatly between funds and fund families, from
under 0.25% to over 3.0%; and 3) a Fund's investment advisor may waive a
portion of the Fund's expenses for a period of time, reducing its expense
ratio.
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
Variable Annuity Trust
FINANCIAL HIGHLIGHTS
This section looks in detail at the results for one share in the Fund --
how much income it earned, how much of this income was passed along as a
distribution and how much the return was reduced by expenses. The table for
the Fund has been derived from financial information audited by KPMG LLP, the
Fund's independent auditors. For a more complete picture of the Fund's financial
statements, please see the Fund's Annual Report as well as the Statement of
Additional Information.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------
1999 # 1998 # 1997 (a) #
<S> <C> <C> <C>
VA OMEGA FUND
Net asset value, beginning of period $ 13.57 $11.10 $10.00
------- ------ ------
Income from investment operations
Net investment loss (0.06) (0.04) (0.06)
Net realized and unrealized gains on securities 6.47 2.51 1.16
------- ------ ------
Total from investment operations 6.41 2.47 1.10
------- ------ ------
Net asset value, end of period $ 19.98 $13.57 $11.10
------- ------ ------
Total return* 47.24% 22.25% 11.00%
Ratios and supplemental data
Net assets, end of period (thousands) $24,176 $4,039 $1,868
Ratios to average net assets
Expenses** 0.96% 1.02% 1.06%+
Net investment loss (0.35%) (0.33%) (0.74%)+
Portfolio turnover rate 120% 49% 39%
</TABLE>
(a) For the period from March 6, 1997 (commencement of operations) to December
31, 1997.
* Total return does not reflect charges attributable to your insurance
company's separate account.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
VARIABLE ANNUITY FUNDS
EVERGREEN
OTHER FUND PRACTICES
The Funds may invest in futures and options which are forms of derivatives.
Such practices are used to hedge a Fund's portfolio, to protect against changes
in interest rates, to adjust a portfolio's duration, to maintain a Fund's
exposure to its market, to manage cash or to attempt to increase income.
Although this is intended to increase returns, these practices may actually
reduce returns or increase volatility. The VA Equity Index Fund may also use
options and futures as a substitute for the sale or purchase of securities in
the S&P 500 Index.
The Funds may borrow money, an investment practice typically used only for
temporary or emergency purposes, such as meeting redemptions. Borrowing is a
form of leverage, that may magnify a Fund's gain or loss. When a Fund has
borrowed money for leverage and its investments increase or decrease in value,
its net asset value will normally increase or decrease more than if it had not
borrowed money for this purpose. The interest that the Fund must pay on borrowed
money will reduce its net investment income and may also either offset any
potential capital gains or increase losses.
The Funds may lend their securities. Lending securities may cause the Fund to
lose the opportunity to sell these securities at the most desirable price and,
therefore, lose money.
While not principal investment strategy, the VA Blue Chip Fund and VA Omega Fund
may each invest up to 25% (however each Fund's current intention is to invest no
more than 10% and 15%, respectively) of its assets, respectively, in foreign
securities.
If a Fund invests in foreign securities, which may include foreign currency
transactions, the value of the Fund's shares will be affected by changes in
exchange rates. To manage this risk, the Fund may enter into currency futures
contracts and forward currency exchange contracts. Although the Fund uses these
contracts to hedge the U.S. dollar value of a security it already owns, the
Fund could lose money if it fails to predict accurately the future exchange
rates. The Fund may engage in hedging and cross hedging with respect to foreign
currencies to protect itself against a possible decline in the value of another
foreign currency in which certain of the Fund's investments are denominated. A
cross hedge cannot protect against exchange rate risks perfectly, and if a Fund
is incorrect in its judgement of future exchange rate relationships, the Fund
could be in a less advantageous position than if such a hedge had not been
established.
Generally, the portfolio manager of VA Omega Fund does not take portfolio
turnover into account in making investment decisions. This means a Fund could
experience a high rate of portfolio turnover (100% or more) in any given fiscal
year, resulting in greater brokerage and other transaction costs which are borne
by the Fund and its shareholders. It may also result in the Fund realizing
greater net short-term capital gains, distributions from which are taxable to
shareholders as ordinary income.
Please consult the Statement of Additional Information for more
information regarding these and other investment practices used
by the Funds, including risks.
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
Notes
VARIABLE ANNUITY FUNDS
<PAGE>
EVERGREEN
Evergreen Funds
Money Market
Florida Municipal Money Market Fund
Money Market Fund
Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Treasury Money Market Fund
U.S. Government Money Market Fund
Tax Advantaged
Connecticut Municipal Bond Fund
Florida High Income Municipal Bond Fund
Florida Municipal Bond Fund
Georgia Municipal Bond Fund
High Grade Municipal Bond Fund
Maryland Municipal Bond Fund
Municipal Bond Fund
New Jersey Municipal Bond Fund
North Carolina Municipal Bond Fund
Pennsylvania Municipal Bond Fund
Short-Intermediate Municipal Fund
South Carolina Municipal Bond Fund
Tax-Free High Income Fund
Virginia Municipal Bond Fund
Income
Capital Preservation and Income Fund
Diversified Bond Fund
High Income Fund
High Yield Bond Fund
Intermediate Term Bond Fund
Short Duration Income Fund
Strategic Income Fund
U.S. Government Fund
Balanced
Balanced Fund
Capital Balanced Fund
Foundation Fund
Tax Strategic Foundation Fund
Growth & Income
Blue Chip Fund
Equity Income Fund
Growth and Income Fund
Income and Growth Fund
Select Equity Index Fund
Small Cap Value Fund
Utility Fund
Value Fund
Domestic Growth
Aggressive Growth Fund
Capital Growth Fund
Evergreen Fund
Growth Fund
Masters Fund
Omega Fund
Select Special Equity Fund
Small Company Growth Fund
Stock Selector Fund
Strategic Growth Fund
Tax Strategic Equity Fund
Global International
Emerging Markets Growth Fund
Global Leaders Fund
Global Opportunities Fund
International Growth Fund
Latin America Fund
Perpetual Global Fund
Perpetual International Fund
Precious Metals Fund
Variable Annuity
VA Blue Chip Fund
VA Capital Growth Fund
VA Equity Index Fund
VA Fund
VA Foundation Fund
VA Global Leaders Fund
VA Growth and Income Fund
VA Growth Fund
VA High Income Fund
VA International Growth Fund
VA Masters Fund
VA Omega Fund
VA Perpetual International Fund
VA Small Cap Value Fund
VA Special Equity Fund
VA Strategic Income Fund
www.evergreen-funds.com
VARIABLE ANNUITY FUNDS
<PAGE>
QUICK REFERENCE GUIDE
1 Information Line for Hearing and Speech Impaired (TTY/TDD)
Call 1-800-343-2888
Each business day, 8 a.m. to 6 p.m. Eastern time
2 Write us a letter
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-9970
. for general correspondence
3 For express, registered or certified mail:
Evergreen Service Company
200 Berkeley Street
Boston, MA 02116-5034
4 Visit us on-line:
www.evergreen-funds.com
<PAGE>
For More Information About the Evergreen Variable Annuity Funds, Ask for:
The Funds' most recent Annual or Semi-annual Report, which contains a
complete financial accounting for each Fund and a complete list of the
Fund's holdings as of a specific date, as well as commentary from the Fund's
portfolio manager. This Report discusses the market conditions and
investment strategies that significantly affected the Fund's performance
during the most recent fiscal year or period.
The Statement of Additional Information (SAI), which contains more detailed
information about the policies and procedures of the Funds. The SAI has been
filed with the Securities and Exchange Commission (SEC) and its contents are
legally considered to be part of this prospectus.
For questions, other information, or to request a copy, without charge, of
any of the documents, call 1-800-847-5397 or ask your investment
representative. We will mail material within three business days.
Information about these Funds (including the SAI) is also available on the
SEC's Internet web site at http://www.sec.gov. Copies of this material may
be obtained, for a duplication fee, by writing the SEC Public Reference
Section, Washington DC 20549-6009, or by electronic request at the following
e-mail address: [email protected]. This material can also be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. For information
about the operation of the Public Reference Room, call the SEC at 1-202-942-
8090.
90609 Sec File No.: 811-8716
537769 RV6
[LOGO OF EVERGREEN FUNDS]
401 South Tryon Street --------------
Charlotte, NC 28288 PRSRT STD
U.S. POSTAGE
PAID
HUDSON, MA
PERMIT NO 19
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