Evergreen
VA F U N D A M E N TA L L A R G E C A P F U N D
Semiannual Report
as of June 30, 2007
table of contents
1
LETTER TO SHAREHOLDERS
4
F U N D AT A G L A N C E
6
ABOUT YOUR FUND’S EXPENSES
7
FINANCIAL HIGHLIGHTS
9
SCHEDULE OF INVESTMENTS
14
S TAT E M E N T O F A S S E T S A N D L I A B I L I T I E S
15
S TAT E M E N T O F O P E R AT I O N S
16
S TAT E M E N T S O F C H A N G E S I N N E T A S S E T S
17
N O T E S T O F I N A N C I A L S TAT E M E N T S
24
TRUSTEES AND OFFICERS
This semiannual report must be preceded or accompanied by a prospectus
of the Evergreen fund contained herein. The prospectus contains more
complete information, including fees and expenses, and should be read
carefully before investing or sending money.
The fund will file its complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q
will be available on the SEC’s Web site at http://www.sec.gov. In addition, the fund’s
Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room
may be obtained by calling 800.SEC.0330.
A description of the fund’s proxy voting policies and procedures, as well as information
regarding how the fund voted proxies relating to portfolio securities during the most
recent 12-month period ended June 30, is available by visiting our Web site at
EvergreenInvestments.com or by visiting the SEC’s Web site at http://www.sec.gov.
The fund’s proxy voting policies and procedures are also available without charge,
upon request, by calling 800.343.2898.
Mutual Funds:
NOT FDIC INSURED
MAY LOSE VALUE
NOT BANK GUARANTEED
Evergreen InvestmentsSM is a service mark of Evergreen Investment Management Company, LLC.
Copyright 2007, Evergreen Investment Management Company, LLC.
Evergreen Investment Management Company, LLC is a subsidiary of Wachovia Corporation
and is an affiliate of Wachovia Corporation’s other Broker Dealer subsidiaries.
LETTER TO SHAREHOLDERS
July 2007
Dear Shareholder:
We are pleased to provide the
semiannual report for Evergreen
VA Fundmental Large Cap Fund
covering the six-month period
ended June 30, 2007.
The domestic equity market
delivered solid performance during
the first half of 2007, while fixedincome securities produced modest
results as rising interest rates caused
some erosion in values of longermaturity bonds. In the equity
market, stock values were propelled
by the combination of better-thanexpected corporate profits, strong
global growth and a flurry of private
equity deals. Mid-cap stocks tended
to outperform both large company
and small company stocks, while the
growth style of investing outpaced
value. In the international markets,
emerging markets extended their
Dennis H. Ferro
President and Chief
Executive Officer
performance advantage over
developed markets during the
six-month period. In contrast, the
domestic fixed-income market
increasingly struggled throughout
the period. Although the U.S.
Federal Reserve Board (the “Fed”)
kept the influential fed funds rate
unchanged at 5.25% during the first
half of the calendar year, investors’
expectations about future Fed policy
changed as the period progressed. As
the economy appeared to accelerate
in the second quarter of the calendar
year, concerns grew about potentially
1
LETTER TO SHAREHOLDERS continued
rising inflationary pressures and the
impact of difficulties in the subprime mortgage industry. Interest
rates of longer-maturity bonds began
rising as prices declined, while the
spreads, or yield advantages, of
lower-quality corporate bonds began
to widen. As a result, both highgrade and lower-rated bonds
delivered modest returns, with highyielding, lower-rated corporate
bonds still outperforming higherquality securities.
While the pace of economic growth
appeared to slow during the first
quarter of 2007, the economic
expansion showed clear signs of
accelerating during the second
quarter. U.S. Gross Domestic
Product increased at an annual rate
of merely 0.7% in the first three
months of the year, but evidence of
renewed economic strength became
2
apparent in the second quarter.
Resisting the effects of weakness in
the housing market and rising
energy prices, the economy
produced solid gains in employment
and personal income. Except in
those population groups most
vulnerable to higher energy prices,
overall consumer spending remained
strong, while continued business
investments added further support
to the economy’s acceleration. In this
environment, Fed officials have
made it very clear that they intend to
remain vigilant against the potential
for increasing inflationary pressures.
During this period, the managers of
Evergreen’s variable annuity funds
implemented strategies consistent
with the asset classes and investment
objectives of each fund. Equityoriented portfolios tended to focus
more on achieving capital growth,
LETTER TO SHAREHOLDERS continued
while fixed-income portfolios were
managed for both total return and
income.
continued support of Evergreen
Investments.
Sincerely,
Please visit us at
EvergreenInvestments.com for more
information about our funds and
other investment products available
to you. Thank you for your
Dennis H. Ferro
President and Chief Executive Officer
Evergreen Investment Company, Inc.
Special Notice to Shareholders:
Please visit our Web site at EvergreenInvestments.com for statements from
President and Chief Executive Officer, Dennis Ferro, addressing NASD
actions involving Evergreen Investment Services, Inc. (EIS), Evergreen’s
mutual fund distributor or statements from Dennis Ferro and Chairman of
the Board of the Evergreen funds, Michael S. Scofield, addressing SEC
actions involving the Evergreen funds.
3
FUND AT A GLANCE
as of June 30, 2007
MANAGEMENT
TEAM
PERFORMANCE AND RETURNS
Investment Advisor:
• Evergreen
Investment
Management
Company, LLC
Class inception date
Class 1
3/1/1996
Class 2
7/31/2002
6-month return
7.81%
7.68%
19.45%
11.04%
7.17%
19.14%
10.78%
7.05%
Portfolio Managers1:
• Walter T.
McCormick, CFA
• Emory Sanders, Jr.,
CFA
4
Portfolio inception date: 3/1/1996
Average annual return
1-year
5-year
10-year
Past performance is no guarantee of future results. The performance quoted represents past
performance and current performance may be lower or higher. The investment return and
principal value of an investment will fluctuate so that investors’ shares, when redeemed,
may be worth more or less than their original cost. To obtain performance information
current to the most recent month-end, please call 1.800.321.9332. The performance of each
class may vary based on differences in fees and expenses paid by the shareholders investing in each class.
Performance includes the reinvestment of income dividends and capital gain distributions, but does not
reflect contract, policy, or separate account charges assessed by participating insurance companies.
Historical performance shown for Class 2 prior to its inception is based on the performance of Class 1, the
original class offered. The historical returns for Class 2 have not been adjusted to reflect the effect of the
class’ 12b-1 fee. The fund incurs a 12b-1 fee of 0.25% for Class 2. Class 1 does not pay a 12b-1 fee. If the
fee had been reflected, returns for Class 2 would have been lower.
Returns reflect expense limits previously in effect, without which returns would have been lower.
1
Effective July 2, 2007, Emory Sanders, Jr. became a portfolio manager of the fund.
FUND AT A GLANCE continued
LONG-TERM GROWTH
$25,000
$20,000
$15,000
$19,992
$19,907
$12,998
Class 1
$10,000
CPI
S&P 500
$5,000
6/30/97 6/30/98 6/30/99 6/30/00 6/30/01 6/30/02 6/30/03 6/30/04 6/30/05 6/30/06 6/30/07
Comparison of a $10,000 investment in the Evergreen VA Fundamental Large Cap Fund Class 1
shares versus a similar investment in the S&P 500 Index (S&P 500) and the Consumer Price Index
(CPI).
The S&P 500 is an unmanaged market index and does not include transaction costs associated with
buying and selling securities, any mutual fund fees or expenses or any taxes. The CPI is a commonly
used measure of inflation and does not represent an investment return. It is not possible to invest
directly in an index.
The fund’s investment objective may be changed without a vote of the fund’s shareholders.
Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability
and foreign currency fluctuations.
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
High yield, lower-rated bonds may contain more risk due to the increased possibility of default.
All data is as of June 30, 2007, and subject to change.
5
ABOUT YOUR FUND’S EXPENSES
The Example below is intended to describe the fees and expenses borne by shareholders and the impact
of those costs on your investment.
Example
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, including sales charges
(loads), redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other fund expenses. This Example is intended to help you understand your
ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs
of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire period from January 1, 2007 to June 30, 2007.
The example illustrates your fund’s costs in two ways:
• Actual expenses
The section in the table under the heading “Actual” provides information about actual account values
and actual expenses. You may use the information in these columns, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide your account value
by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result
by the number in the appropriate column for your share class, in the column entitled “Expenses Paid
During Period” to estimate the expenses you paid on your account during this period.
• Hypothetical example for comparison purposes
The section in the table under the heading “Hypothetical (5% return before expenses)” provides
information about hypothetical account values and hypothetical expenses based on the fund’s actual
expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s
actual return. The hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this information to
compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of
the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and
do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees or
separate account charges assessed by participating insurance companies. Therefore, the section in the
table under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been higher.
Beginning
Account
Value
1/1/2007
Ending
Account
Value
6/30/2007
Expenses
Paid During
Period*
$ 1,000.00
$ 1,000.00
$ 1,078.06
$ 1,076.80
$ 3.86
$ 5.15
$ 1,000.00
$ 1,000.00
$ 1,021.08
$ 1,019.84
$ 3.76
$ 5.01
Actual
Class 1
Class 2
Hypothetical
(5% return
before expenses)
Class 1
Class 2
* For each class of the Fund, expenses are equal to the annualized expense ratio of each class
(0.75% for Class 1 and 1.00% for Class 2), multiplied by the average account value over the
period, multiplied by 181 / 365 days.
6
7
Amount represents less than $0.005 per share.
Total return does not reflect charges attributable to your insurance company’s separate account.
Annualized
3
4
See Notes to Financial Statements
Effective at the close of business on July 24, 2002, existing shares of the Fund were renamed Class 1 shares.
0.74%
1.19%
21%
0.75%4
1.22%4
6%
2
0.74%
$112,413
$105,060
0.75%4
(0.24)
(0.32)
(0.56)
$ 19.60
12.67%
0.25
2.02
2.27
0.14
1.39
1.53
0
0
0
$ 21.13
7.81%
$ 17.89
2006
$ 19.60
Six Months Ended
June 30, 2007
(unaudited)
1
Net asset value, beginning of period
Income from investment operations
Net investment income (loss)
Net realized and unrealized gains or losses on investments
Total from investment operations
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return3
Ratios and supplemental data
Net assets, end of period (thousands)
Ratios to average net assets
Expenses including waivers/reimbursements but excluding expense
reductions
Expenses excluding waivers/reimbursements and expense
reductions
Net investment income (loss)
Portfolio turnover rate
CLASS 11
(For a share outstanding throughout each period)
F I N AN C I AL H I GH L I GH T S
0.79%
0.99%
29%
0.79%
$127,059
(0.17)
0
(0.17)
$ 17.89
9.01%
0.16
1.34
1.50
$ 16.56
2005
0.91%
1.23%
80%
0.91%
$94,461
(0.19)
0
(0.19)
$ 16.56
9.21%
0.20
1.21
1.41
$ 15.34
2004
Year Ended December 31,
2003
0.99%
1.18%
30%
0.99%
$94,239
(0.09)
0
(0.09)
$ 15.34
30.14%
0.10
3.47
3.57
$ 11.86
2002
0.93%
1.10%
76%
0.93%
$48,262
(0.14)
02
(0.14)
$ 11.86
(15.41%)
0.14
(2.33)
(2.19)
$ 14.19
8
Net investment income (loss) per share is based on average shares outstanding during the period.
Total return does not reflect charges attributable to your insurance company’s separate account.
Annualized
3
4
See Notes to Financial Statements
For the period from July 31, 2002 (commencement of class operations), to December 31, 2002.
2
0.99%
0.94%
21%
$65,913
$69,273
1.00%4
0.96%4
6%
(0.19)
(0.32)
(0.51)
$ 19.53
12.39%
0
0
0
$ 21.03
7.68%
0.99%
0.18
2.03
2.21
0.10
1.40
1.50
1.00%4
$ 17.83
2006
$ 19.53
Six Months Ended
June 30, 2007
(unaudited)
1
Net asset value, beginning of period
Income from investment operations
Net investment income (loss)
Net realized and unrealized gains or losses on investments
Total from investment operations
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return3
Ratios and supplemental data
Net assets, end of period (thousands)
Ratios to average net assets
Expenses including waivers/reimbursements but excluding expense
reductions
Expenses excluding waivers/reimbursements and expense
reductions
Net investment income (loss)
Portfolio turnover rate
CLASS 2
(For a share outstanding throughout each period)
F I N AN C I AL H I GH L I GH T S
1.04%
0.74%
29%
1.04%
$57,360
(0.13)
0
(0.13)
$ 17.83
8.75%
0.13
1.32
1.45
$ 16.51
2005
1.16%
1.02%
80%
1.16%
$37,721
(0.16)
0
(0.16)
$ 16.51
8.93%
0.17
1.20
1.37
$ 15.30
2004
Year Ended December 31,
2003
1.24%
1.12%
30%
1.24%
$24,131
(0.09)
0
(0.09)
$ 15.30
29.77%
0.11
3.42
3.53
$ 11.86
20021
$
1.21%4
1.65%4
76%
1.21%4
67
(0.14)
0
(0.14)
$11.86
(2.39%)
0.082
(0.37)
(0.29)
$12.29
SCHEDULE OF INVESTMENTS
June 30, 2007 (unaudited)
Shares
COMMON STOCKS
Value
99.9%
CONSUMER DISCRETIONARY 9.0%
Diversified Consumer Services 3.2%
Apollo Group, Inc., Class A * .................................................................................
94,430
Internet & Catalog Retail 2.5%
Amazon.com, Inc. * ␳............................................................................................
65,000
4,446,650
Media 2.3%
News Corp., Class A ..............................................................................................
Omnicom Group, Inc. ............................................................................................
61,789
49,882
1,310,545
2,639,755
3,950,300
Specialty Retail 1.0%
Best Buy Co., Inc. .................................................................................................
39,001
1,820,177
CONSUMER STAPLES 10.9%
Beverages 2.2%
Diageo plc.............................................................................................................
Diageo plc, ADR ....................................................................................................
PepsiCo, Inc. .........................................................................................................
88,455
6,271
21,339
1,840,380
522,437
1,383,834
3,746,651
Food & Staples Retailing 4.5%
CVS Caremark Corp. .............................................................................................
Wal-Mart Stores, Inc. ............................................................................................
Whole Foods Market, Inc. ␳ ..................................................................................
75,058
71,142
44,692
2,735,864
3,422,642
1,711,704
7,870,210
Household Products 2.6%
Procter & Gamble Co. ...........................................................................................
74,233
4,542,317
Tobacco 1.6%
Altria Group, Inc. ..................................................................................................
39,901
2,798,656
ENERGY 9.2%
Energy Equipment & Services 1.7%
Schlumberger, Ltd. ................................................................................................
35,309
2,999,147
Oil, Gas & Consumable Fuels 7.5%
Apache Corp. .......................................................................................................
BP plc, ADR...........................................................................................................
ConocoPhillips ......................................................................................................
Exxon Mobil Corp. ................................................................................................
23,715
28,349
25,447
84,499
1,934,907
2,045,097
1,997,589
7,087,776
13,065,369
$
5,517,545
See Notes to Financial Statements
9
SCHEDULE OF INVESTMENTS continued
June 30, 2007 (unaudited)
Shares
COMMON STOCKS
Value
continued
FINANCIALS 21.4%
Capital Markets 6.2%
Blackstone Group, LP ............................................................................................
Goldman Sachs Group, Inc. ...................................................................................
Legg Mason, Inc. ..................................................................................................
Merrill Lynch & Co., Inc. ........................................................................................
Morgan Stanley.....................................................................................................
State Street Corp. .................................................................................................
T. Rowe Price Group, Inc. ......................................................................................
26,000
8,976
29,527
15,484
17,426
19,211
19,777
Commercial Banks 2.3%
U.S. Bancorp .........................................................................................................
Wells Fargo & Co. .................................................................................................
38,691
78,581
1,274,868
2,763,694
4,038,562
Consumer Finance 1.6%
American Express Co. ...........................................................................................
Capital One Financial Corp. ..................................................................................
30,452
12,440
1,863,053
975,794
2,838,847
Diversified Financial Services 8.1%
Bank of America Corp. ..........................................................................................
Citigroup, Inc. .......................................................................................................
JPMorgan Chase & Co. .........................................................................................
94,526
125,545
64,479
4,621,376
6,439,203
3,124,008
14,184,587
Insurance 3.2%
American International Group, Inc. ........................................................................
Hartford Financial Services Group, Inc. ..................................................................
Prudential Financial, Inc. .......................................................................................
31,376
17,241
17,458
2,197,261
1,698,411
1,697,441
5,593,113
HEALTH CARE 15.5%
Biotechnology 2.4%
Amgen, Inc. *........................................................................................................
Biogen Idec, Inc. *.................................................................................................
30,316
48,686
1,676,171
2,604,701
4,280,872
Health Care Equipment & Supplies 3.9%
Baxter International, Inc. ......................................................................................
Medtronic, Inc. .....................................................................................................
St. Jude Medical, Inc. *..........................................................................................
Zimmer Holdings, Inc. * .........................................................................................
43,574
33,596
29,984
15,211
2,454,959
1,742,289
1,244,036
1,291,262
6,732,546
Health Care Providers & Services 1.0%
WellPoint, Inc. * ....................................................................................................
21,118
1,685,850
See Notes to Financial Statements
10
$
761,020
1,945,548
2,904,866
1,294,153
1,461,693
1,314,032
1,026,229
10,707,541
SCHEDULE OF INVESTMENTS continued
June 30, 2007 (unaudited)
Shares
COMMON STOCKS
Value
continued
HEALTH CARE continued
Pharmaceuticals 8.2%
Abbott Laboratories ..............................................................................................
Bristol-Myers Squibb Co. .......................................................................................
Johnson & Johnson ...............................................................................................
Novartis AG, ADR ..................................................................................................
Pfizer, Inc. ............................................................................................................
Wyeth...................................................................................................................
35,774
106,009
34,978
18,252
137,928
39,918
INDUSTRIALS 7.1%
Aerospace & Defense 1.7%
Lockheed Martin Corp. .........................................................................................
United Technologies Corp. ....................................................................................
20,595
14,461
1,938,607
1,025,719
2,964,326
Air Freight & Logistics 1.4%
Expeditors International of Washington, Inc. ..........................................................
United Parcel Service, Inc., Class B .........................................................................
20,608
21,707
851,110
1,584,611
2,435,721
Industrial Conglomerates 3.0%
General Electric Co. ..............................................................................................
137,495
5,263,309
Machinery 1.0%
Pall Corp. .............................................................................................................
37,744
1,735,847
INFORMATION TECHNOLOGY 21.3%
Communications Equipment 5.9%
Cisco Systems, Inc. *..............................................................................................
QUALCOMM, Inc. .................................................................................................
155,961
136,075
4,343,514
5,904,294
10,247,808
Computers & Peripherals 2.2%
Dell, Inc. *.............................................................................................................
134,240
3,832,552
Internet Software & Services 3.1%
eBay, Inc. * ...........................................................................................................
Google, Inc., Class A *...........................................................................................
55,641
6,824
1,790,527
3,571,545
5,362,072
IT Services 2.1%
Accenture, Ltd., Class A .........................................................................................
Automatic Data Processing, Inc. ............................................................................
47,082
35,128
2,019,347
1,702,654
3,722,001
Semiconductors & Semiconductor Equipment 4.0%
Altera Corp. *........................................................................................................
Intel Corp. ............................................................................................................
Texas Instruments, Inc. ..........................................................................................
93,571
115,263
55,004
2,070,726
2,738,649
2,069,801
6,879,176
$
1,915,698
3,345,644
2,155,344
1,023,390
3,526,819
2,288,898
14,255,793
See Notes to Financial Statements
11
SCHEDULE OF INVESTMENTS continued
June 30, 2007 (unaudited)
Shares
COMMON STOCKS
Value
continued
INFORMATION TECHNOLOGY
continued
Software 4.0%
Microsoft Corp. ....................................................................................................
Oracle Corp. * .......................................................................................................
99,683
205,377
MATERIALS 1.6%
Chemicals 1.1%
Air Products & Chemicals, Inc. ..............................................................................
23,261
1,869,486
Paper & Forest Products 0.5%
Weyerhaeuser Co. ................................................................................................
11,446
903,433
TELECOMMUNICATION SERVICES 2.6%
Diversified Telecommunication Services 1.6%
AT&T, Inc. .............................................................................................................
Verizon Communications, Inc. ...............................................................................
40,754
29,047
1,691,291
1,195,865
2,887,156
Wireless Telecommunication Services 1.0%
Sprint Nextel Corp. ...............................................................................................
81,347
1,684,696
UTILITIES 1.3%
Electric Utilities 1.3%
DPL, Inc. ␳ ...........................................................................................................
Exelon Corp. .........................................................................................................
35,353
17,462
1,001,904
1,267,741
2,269,645
174,117,600
Total Common Stocks (cost $129,304,908).....................................................................
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED 4.2%
MUTUAL FUND SHARES 0.5%
AIM Short-Term Investments Co. Liquid Assets Portfolio, Class I, 5.26% q..............
REPURCHASE AGREEMENTS ^ 3.7%
Credit Suisse First Boston, LLC, 5.42%, dated 06/29/2007, maturing 07/02/2007,
maturity value $1,000,452..............................................................................
Deutsche Bank Securities, Inc., 5.43%, dated 06/29/2007, maturing 07/02/2007,
maturity value $1,000,452..............................................................................
Dresdner Kleinwort Wasserstein Securities, Inc., 5.42%, dated 06/29/2007,
maturing 07/02/2007, maturity value $4,001,807 ...........................................
Lehman Brothers Holdings, Inc., 5.42% dated 06/29/2007, maturing 07/02/2007,
maturity value $500,226.................................................................................
12
2,937,658
4,047,981
6,985,639
839,889
839,889
1,000,000
1,000,000
1,000,000
1,000,000
4,000,000
4,000,000
500,000
500,000
6,500,000
Total Investments of Cash Collateral from Securities Loaned
(cost $7,339,889).........................................................................................................
See Notes to Financial Statements
$
7,339,889
SCHEDULE OF INVESTMENTS continued
June 30, 2007 (unaudited)
Shares
SHORT-TERM INVESTMENTS
0.2%
MUTUAL FUND SHARES 0.2%
Evergreen Institutional U.S. Government Money Market Fund, Class I, 5.01% q ø
(cost $290,416) ..............................................................................................
290,416
Total Investments (cost $136,935,213) 104.3%................................................................
Other Assets and Liabilities (4.3%) ....................................................................................
Net Assets 100.0%................................................................................................................
*
␳
q
^
ø
Value
$
290,416
$
181,747,905
(7,415,189)
174,332,716
Non-income producing security
All or a portion of this security is on loan.
Rate shown is the 7-day annualized yield at period end.
Collateral is pooled with the collateral of other Evergreen funds and allocated on a pro-rata basis into 44 issues of
high grade short-term securities such that sufficient collateral is applied to the respective repurchase agreement.
Evergreen Investment Management Company, LLC is the investment advisor to both the Fund and the money market
fund.
Summary of Abbreviations
ADR
American Depository Receipt
The following table shows the percent of total long-term investments by sector as of June 30, 2007:
Financials
Information Technology
Health Care
Consumer Staples
Energy
Consumer Discretionary
Industrials
Telecommunication Services
Materials
Utilities
21.5%
21.3%
15.5%
10.9%
9.2%
9.0%
7.1%
2.6%
1.6%
1.3%
100.0%
See Notes to Financial Statements
13
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2007 (unaudited)
Assets
Investments in securities, at value (cost $136,644,797) including $7,055,340 of
securities loaned
Investments in affiliated money market fund, at value (cost $290,416)
Total investments
Receivable for Fund shares sold
Dividends receivable
Receivable for securities lending income
Total assets
Liabilities
Payable for Fund shares redeemed
Payable for securities on loan
Advisory fee payable
Distribution Plan expenses payable
Due to other related parties
Accrued expenses and other liabilities
Total liabilities
Net assets
Net assets represented by
Paid-in capital
Undistributed net investment income
Accumulated net realized losses on investments
Net unrealized gains on investments
Total net assets
Net assets consists of
Class 1
Class 2
Total net assets
Shares outstanding (unlimited number of shares authorized)
Class 1
Class 2
Net asset value per share
Class 1
Class 2
See Notes to Financial Statements
14
$
181,457,489
290,416
181,747,905
12,099
150,401
739
181,911,144
$
$
$
$
$
202,320
7,339,889
8,342
1,423
1,921
24,533
7,578,428
174,332,716
132,549,632
960,995
(3,990,603)
44,812,692
174,332,716
105,059,856
69,272,860
174,332,716
4,971,788
3,294,035
$
$
21.13
21.03
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2007 (unaudited)
Investment income
Dividends (net of foreign withholding taxes of $3,002)
Income from affiliate
Securities lending
Total investment income
Expenses
Advisory fee
Distribution Plan expenses
Administrative services fee
Transfer agent fees
Trustees’ fees and expenses
Printing and postage expenses
Custodian and accounting fees
Professional fees
Other
Total expenses
Less: Expense reductions
Net expenses
Net investment income
Net realized and unrealized gains or losses on investments
Net realized gains on:
Securities
Foreign currency related transactions
Net realized gains on investments
Net change in unrealized gains or losses on investments
Net realized and unrealized gains or losses on investments
Net increase in net assets resulting from operations
$
1,678,065
25,673
3,290
1,707,028
504,726
83,597
86,329
203
2,547
18,881
23,910
12,577
3,796
736,566
(1,797)
734,769
972,259
$
6,827,478
1,691
6,829,169
5,331,389
12,160,558
13,132,817
See Notes to Financial Statements
15
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 2007
(unaudited)
Operations
Net investment income
Net realized gains on investments
Net change in unrealized gains or
losses on investments
Net increase in net assets resulting
from operations
Distributions to shareholders from
Net investment income
Class 1
Class 2
Net realized gains
Class 1
Class 2
Total distributions to shareholders
$
Year Ended
December 31, 2006
972,259
6,829,169
Net asset value of shares issued in
reinvestment of distributions
Class 1
Class 2
Payment for shares redeemed
Class 1
Class 2
Net decrease in net assets resulting from
capital share transactions
Total decrease in net assets
Net assets
Beginning of period
End of period
Undistributed (overdistributed) net
investment income
See Notes to Financial Statements
16
1,985,400
11,888,132
5,331,389
7,163,682
13,132,817
21,037,214
0
0
(1,361,515)
(632,977)
0
0
0
(1,804,545)
(1,042,293)
(4,841,330)
Shares
Capital share transactions
Proceeds from shares sold
Class 1
Class 2
$
Shares
46,658
116,729
933,793
2,339,042
3,272,835
127,735
492,145
2,406,156
9,264,028
11,670,184
0
0
0
0
0
160,442
85,281
3,166,060
1,675,270
4,841,330
(810,577)
(197,863)
(16,392,478)
(4,006,789)
(20,399,267)
(1,654,133)
(418,961)
(30,962,342)
(7,837,550)
(38,799,892)
(17,126,432)
(3,993,615)
(22,288,378)
(6,092,494)
178,326,331
$ 174,332,716
184,418,825
$ 178,326,331
$
$
960,995
(11,264)
NOTES TO FINANCIAL STATEMENTS (unaudited)
1 . O R G A N I Z AT I O N
Evergreen VA Fundamental Large Cap Fund (the “Fund”) is a diversified series of Evergreen
Variable Annuity Trust (the “Trust”), a Delaware statutory trust organized on December 23,
1997. The Trust is an open-end management investment company registered under the
Investment Company Act of 1940, as amended (the “1940 Act”). Shares of the Fund may only
be purchased by insurance companies for the purpose of funding variable annuity contracts or
variable life insurance policies.
The Fund offers Class 1 and Class 2 shares at net asset value without a front-end sales charge or
contingent deferred sales charge; however, Class 2 shares pay an ongoing distribution fee.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements. The policies are in conformity with generally
accepted accounting principles in the United States of America, which require management to
make estimates and assumptions that affect amounts reported herein. Actual results could differ
from these estimates.
a. Valuation of investments
Listed equity securities are usually valued at the last sales price or official closing price on the
national securities exchange where the securities are principally traded.
Foreign securities traded on an established exchange are valued at the last sales price on the
exchange where the security is primarily traded. If there has been no sale, the securities are valued
at the mean between bid and asked prices. Foreign securities may be valued at fair value according
to procedures approved by the Board of Trustees if the closing price is not reflective of current
market values due to trading or events occurring in the foreign markets between the close of the
established exchange and the valuation time of the Fund. In addition, substantial changes in
values in the U.S. markets subsequent to the close of a foreign market may also affect the values
of securities traded in the foreign market. The value of foreign securities may be adjusted if such
movements in the U.S. market exceed a specified threshold.
Investments of cash collateral in short-term securities are valued at amortized cost, which approximates market value.
Investments in other mutual funds are valued at net asset value. Securities for which market
quotations are not readily available or not reflective of current market value are valued at fair value
as determined by the investment advisor in good faith, according to procedures approved by the
Board of Trustees.
b. Repurchase agreements
Securities pledged as collateral for repurchase agreements are held by the custodian bank or in a
segregated account in the Fund’s name until the agreements mature. Collateral for certain triparty repurchase agreements is held at the counterparty’s custodian in a segregated account for the
benefit of the Fund and the counterparty. Each agreement requires that the market value of the
17
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
collateral be sufficient to cover payments of interest and principal. However, in the event of
default or bankruptcy by the other party to the agreement, retention of the collateral may be
subject to legal proceedings. The Fund will 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. In certain instances, the Fund’s securities lending agent may provide collateral in the form of repurchase agreements.
c. Foreign currency translation
All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts
at the date of valuation. Purchases and sales of portfolio securities and income items denominated
in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the fluctuations arising from
changes in market prices of securities held. Such fluctuations are included with the net realized
and unrealized gains or losses on investments.
d. Securities lending
The Fund may lend its securities to certain qualified brokers in order to earn additional income.
The Fund receives compensation in the form of fees or interest earned on the investment of any
cash collateral received. The Fund also continues to receive interest and dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a market value at
least equal to the market value of the securities on loan. In the event of default or bankruptcy by
the borrower, the Fund could experience delays and costs in recovering the loaned securities or in
gaining access to the collateral. The Fund has the right under the lending agreement to recover
the securities from the borrower on demand.
e. Security transactions and investment income
Security transactions are recorded on trade date. Realized gains and losses are computed using the
specific cost of the security sold. Dividend income is recorded on the ex-dividend date or in the
case of some foreign securities, on the date when the Fund is made aware of the dividend. Foreign
income and capital gains realized on some securities may be subject to foreign taxes, which are
accrued as applicable.
f. Federal taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of
its taxable income, including any net capital gains (which have already been offset by available
capital loss carryovers). Accordingly, no provision for federal taxes is required.
g. Distributions
Distributions to shareholders from net investment income and net realized gains, if any, are
recorded on the ex-dividend date. Such distributions are determined in conformity with income
tax regulations, which may differ from generally accepted accounting principles.
18
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
h. Class allocations
Income, common expenses and realized and unrealized gains and losses are allocated to the classes
based on the relative net assets of each class. Distribution fees, if any, are calculated daily at the
class level based on the appropriate net assets of each class and the specific expense rates applicable
to each class.
3 . A D V I S O RY F E E A N D O T H E R T R A N S A C T I O N S W I T H A F F I L I AT E S
Evergreen Investment Management Company, LLC (“EIMC”), an indirect, wholly-owned subsidiary of Wachovia Corporation (“Wachovia”), is the investment advisor to the Fund and is paid
an annual fee starting at 0.70% and declining to 0.50% as the aggregate average daily net assets
of the Fund and its retail counterpart, Evergreen Fundamental Large Cap Fund, increase.
The Fund may invest in Evergreen-managed money market funds, which are also advised by
EIMC. Income earned on these investments is included in income from affiliate on the Statement
of Operations.
Evergreen Investment Services, Inc. (“EIS”), an indirect, wholly-owned subsidiary of Wachovia,
is the administrator to the Fund. As administrator, EIS provides the Fund with facilities, equipment and personnel and is paid an annual rate determined by applying percentage rates to the
aggregate average daily net assets of the Evergreen funds (excluding money market funds and
Evergreen Institutional Enhanced Income Fund), starting at 0.10% and declining to 0.05% as
the aggregate average daily net assets of the Evergreen funds (excluding money market funds and
Evergreen Institutional Enhanced Income Fund) increase.
Evergreen Service Company, LLC (“ESC”), an indirect, wholly-owned subsidiary of Wachovia,
is the transfer and dividend disbursing agent for the Fund. ESC receives account fees that vary
based on the type of account held by the shareholders in the Fund.
Wachovia Bank NA, through its securities lending division of Wachovia Global Securities Lending, acts as the securities lending agent for the Fund.
The Fund has placed a portion of its portfolio transactions with brokerage firms that are affiliates
of Wachovia. During the six months ended June 30, 2007, the Fund paid brokerage commissions
of $12,446 to Wachovia Securities, LLC.
4. DISTRIBUTION PLAN
EIS also serves as distributor of the Fund’s shares. The Fund has adopted a Distribution Plan, as
allowed by Rule 12b-1 of the 1940 Act, for Class 2 shares. Under the Distribution Plan, distribution fees are paid at an annual rate of 0.25% of the average daily net assets for Class 2 shares.
5. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were $10,540,782 and $25,083,258, respectively, for the six months ended June 30, 2007.
19
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
During the six months ended June 30, 2007, the Fund loaned securities to certain brokers. At
June 30, 2007, the value of securities on loan and the total value of collateral received for securities loaned amounted to $7,055,340 and $7,339,889, respectively.
On June 30, 2007, the aggregate cost of securities for federal income tax purposes was
$137,509,660. The gross unrealized appreciation and depreciation on securities based on tax
cost was $46,181,423 and $1,943,178, respectively, with a net unrealized appreciation of
$44,238,245.
As of December 31, 2006, the Fund had $10,132,876 in capital loss carryovers for federal income
tax purposes with $6,950,505 expiring in 2009 and $3,182,371 expiring in 2010.
Certain portions of the capital loss carryovers of the Fund were assumed as a result of acquisitions.
Utilization of these capital loss carryovers was limited during the year ended December 31, 2006.
6. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the SEC, the Fund may participate in an interfund
lending program with certain funds in the Evergreen fund family. This program allows the
Fund to borrow from other participating funds. During the six months ended June 30, 2007, the
Fund did not participate in the interfund lending program.
7. EXPENSE REDUCTIONS
Through expense offset arrangements with ESC and the Fund’s custodian, a portion of fund
expenses has been reduced.
8. DEFERRED TRUSTEES’ FEES
Each Trustee of the Fund may defer any or all compensation related to performance of their duties
as Trustees. The Trustees’ deferred balances are allocated to deferral accounts, which are included
in the accrued expenses for the Fund. The investment performance of the deferral accounts is
based on the investment performance of certain Evergreen funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Fund’s Trustees’ fees and expenses. At the
election of the Trustees, the deferral account will be paid either in one lump sum or in quarterly
installments for up to ten years.
9. FINANCING AGREEMENT
The Fund and certain other Evergreen funds share in an unsecured revolving credit commitment
for temporary and emergency purposes, including the funding of redemptions, as permitted by
each participating fund’s borrowing restrictions. Borrowings under this facility bear interest at
0.50% per annum above the Federal Funds rate. All of the participating funds are charged an
annual commitment fee on the unused balance, which is allocated pro rata. The credit facility is
for $100 million with an annual commitment fee of 0.08%. During the six months ended June
30, 2007, the Fund had no borrowings.
20
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
1 0 . R E G U L AT O RY M AT T E R S A N D L E G A L P R O C E E D I N G S
Since September 2003, governmental and self-regulatory authorities have instituted numerous
ongoing investigations of various practices in the mutual fund industry, including investigations
relating to revenue sharing, market-timing, late trading and record retention, among other things.
The investigations cover investment advisors, distributors and transfer agents to mutual funds, as
well as other firms. EIMC, EIS and ESC (collectively, “Evergreen”) have received subpoenas and
other requests for documents and testimony relating to these investigations, are endeavoring to
comply with those requests, and are cooperating with the investigations. Evergreen is continuing
its own internal review of policies, practices, procedures and personnel, and is taking remedial
action where appropriate.
In connection with one of these investigations, on July 28, 2004, the staff of the Securities and
Exchange Commission (“SEC”) informed Evergreen that the staff intends to recommend to the
SEC that it institute an enforcement action against Evergreen. The SEC staff ’s proposed allegations
relate to (i) an arrangement pursuant to which a broker at one of EIMC’s affiliated broker-dealers
had been authorized, apparently by an EIMC officer (who is no longer with EIMC), to engage in
short-term trading, on behalf of a client, in Evergreen Mid Cap Growth Fund (formerly Evergreen
Emerging Growth Fund and prior to that, known as Evergreen Small Company Growth Fund)
during the period from December 2000 through April 2003, in excess of the limitations set forth
in the fund’s prospectus, (ii) short-term trading from September 2001 through January 2003, by
a former Evergreen portfolio manager of Evergreen Precious Metals Fund, a fund he managed at
the time, (iii) the sufficiency of systems for monitoring exchanges and enforcing exchange limitations as stated in the funds’ prospectuses, and (iv) the adequacy of e-mail retention practices. In
connection with the activity in Evergreen Mid Cap Growth Fund, EIMC reimbursed the fund
$378,905, plus an additional $25,242, representing what EIMC calculated at that time to be the
client’s net gain and the fees earned by EIMC and the expenses incurred by this fund on the client’s
account. In connection with the activity in Evergreen Precious Metals Fund, EIMC reimbursed
the fund $70,878, plus an additional $3,075, representing what EIMC calculated at that time to
be the portfolio manager’s net gain and the fees earned by EIMC and expenses incurred by the fund
on the portfolio manager’s account. Evergreen is currently engaged in discussions with the staff of
the SEC concerning its recommendation.
Any resolution of these matters with regulatory authorities may include, but not be limited to,
sanctions, penalties or injunctions regarding Evergreen, restitution to mutual fund shareholders
and/or other financial penalties and structural changes in the governance or management of
Evergreen’s mutual fund business. Any penalties or restitution will be paid by Evergreen and not
by the Evergreen funds.
EIS has entered into an agreement with the NASD settling allegations that EIS (i) arranged for
Evergreen fund portfolio trades to be directed to Wachovia Securities, LLC, an affiliate of EIS that
sold Evergreen fund shares, during the period of January 2001 to December 2003 and (ii)
provided non-cash compensation by sponsoring offsite meetings attended by Wachovia
Securities, LLC brokers during that period, where the eligibility of a broker to attend the meet-
21
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
ings depended upon the broker meeting certain sales targets of Evergreen fund shares. Pursuant
to the settlement agreement, EIS has agreed to a censure and a fine of $4,200,000. EIS neither
admitted nor denied the allegations and findings set forth in its agreement with the NASD.
In addition, the Evergreen funds and EIMC and certain of its affiliates are involved in various
legal actions, including private litigation and class action lawsuits. EIMC does not expect that any
of such legal actions currently pending or threatened will have a material adverse impact on the
financial position or operations of any of the Evergreen funds or on EIMC’s ability to provide
services to the Evergreen funds.
Although Evergreen believes that neither the foregoing investigations described above nor any
pending or threatened legal actions will have a material adverse impact on the Evergreen funds,
there can be no assurance that these matters and any publicity surrounding or resulting from
them will not result in reduced sales or increased redemptions of Evergreen fund shares, which
could increase Evergreen fund transaction costs or operating expenses, or that they will not have
other adverse consequences on the Evergreen funds.
11. NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation
No. 48, Accounting for Uncertainty in Income Taxes — an interpretation of FASB statement 109
(“FIN 48”). FIN 48 supplements FASB 109 by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. The Fund’s financial statements have not been impacted
by the adoption of FIN 48. However, the conclusions regarding FIN 48 may be subject to review
and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from FASB, and on-going analysis of tax laws, regulations, and
interpretations thereof.
In September 2006, FASB issued Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (“FAS 157”). FAS 157 establishes a single authoritative definition of fair
value, establishes a framework for measuring fair value and expands disclosures about fair value
measurements. FAS 157 applies to fair value measurements already required or permitted by
existing standards. The change to current generally accepted accounting principles from the
application of FAS 157 relates to the definition of fair value, the methods used to measure fair
value, and the expanded disclosures about fair value measurements. Management of the Fund
does not believe the adoption of FAS 157 will materially impact the financial statement amounts,
however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. FAS
157 is effective for financial statements issued for fiscal years beginning after November 15, 2007
and interim periods within those fiscal years.
22
This page left intentionally blank
23
TRUSTEES AND OFFICERS
TRUSTEES1
Charles A. Austin III
Trustee
DOB: 10/23/1934
Term of office since: 1991
Other directorships: None
Investment Counselor, Anchor Capital Advisors, LLC. (investment advice); Director, The Andover
Companies (insurance); Trustee, Arthritis Foundation of New England; Former Director, The
Francis Ouimet Society (scholarship program); Former Director, Executive Vice President and
Treasurer, State Street Research & Management Company (investment advice)
K. Dun Gifford
Trustee
DOB: 10/23/1938
Term of office since: 1974
Other directorships: None
Chairman and President, Oldways Preservation and Exchange Trust (education); Trustee,
Treasurer and Chairman of the Finance Committee, Cambridge College
Dr. Leroy Keith, Jr.
Trustee
DOB: 2/14/1939
Term of office since: 1983
Other directorships: Trustee,
Phoenix Fund Complex (consisting
of 60 portfolios)
Partner, Stonington Partners, Inc. (private equity fund); Trustee, Phoenix Fund Complex; Director,
Diversapack Co. (packaging company); Director, Obagi Medical Products Co.; Former Director,
Lincoln Educational Services
Gerald M. McDonnell
Trustee
DOB: 7/14/1939
Term of office since: 1988
Other directorships: None
Manager of Commercial Operations, CMC Steel (steel producer)
Patricia B. Norris
Trustee
DOB: 4/9/1948
Term of office since: 2006
Other directorships: None
President and Director of Buckleys of Kezar Lake, Inc., (real estate company); Former President
and Director of Phillips Pond Homes Association (home community); Former Partner,
PricewaterhouseCoopers, LLP (independent registered public accounting firm)
William Walt Pettit
Trustee
DOB: 8/26/1955
Term of office since: 1984
Other directorships: None
Partner and Vice President, Kellam & Pettit, P.A. (law firm); Director, Superior Packaging Corp.
(packaging company); Member, Superior Land, LLC (real estate holding company), Member,
K&P Development, LLC (real estate development); Former Director, National Kidney Foundation
of North Carolina, Inc. (non-profit organization)
David M. Richardson
Trustee
DOB: 9/19/1941
Term of office since: 1982
Other directorships: None
President, Richardson, Runden LLC (executive recruitment business development/consulting
company); Consultant, Kennedy Information, Inc. (executive recruitment information and
research company); Consultant, AESC (The Association of Executive Search Consultants);
Director, J&M Cumming Paper Co. (paper merchandising); Former Trustee, NDI Technologies, LLP
(communications)
Dr. Russell A. Salton III
Trustee
DOB: 6/2/1947
Term of office since: 1984
Other directorships: None
President/CEO, AccessOne MedCard, Inc.; Former Medical Director, Healthcare Resource
Associates, Inc.
Michael S. Scofield
Trustee
DOB: 2/20/1943
Term of office since: 1984
Other directorships: None
Retired Attorney, Law Offices of Michael S. Scofield; Former Director and Chairman, Branded
Media Corporation (multi-media branding company)
24
TRUSTEES AND OFFICERS continued
Richard J. Shima
Trustee
DOB: 8/11/1939
Term of office since: 1993
Other directorships: None
Independent Consultant; Director, Hartford Hospital; Trustee, Greater Hartford YMCA; Former
Director, Trust Company of CT; Former Director, Old State House Association; Former Trustee,
Saint Joseph College (CT)
Richard K. Wagoner, CFA2
Trustee
DOB: 12/12/1937
Term of office since: 1999
Other directorships: None
Member and Former President, North Carolina Securities Traders Association; Member, Financial
Analysts Society
OFFICERS
Dennis H. Ferro3
President
DOB: 6/20/1945
Term of office since: 2003
Principal occupations: President and Chief Executive Officer, Evergreen Investment Company,
Inc. and Executive Vice President, Wachovia Bank, N.A.; former Chief Investment Officer,
Evergreen Investment Company, Inc.
Jeremy DePalma4
Treasurer
DOB: 2/5/1974
Term of office since: 2005
Principal occupations: Vice President, Evergreen Investment Services, Inc.; Former Assistant Vice
President, Evergreen Investment Services, Inc.
Michael H. Koonce4
Secretary
DOB: 4/20/1960
Term of office since: 2000
Principal occupations: Senior Vice President and General Counsel, Evergreen Investment
Services, Inc.; Secretary, Senior Vice President and General Counsel, Evergreen Investment
Management Company, LLC and Evergreen Service Company, LLC; Senior Vice President and
Assistant General Counsel, Wachovia Corporation
Robert Guerin4, 5
Chief Compliance Officer
DOB: 9/20/1965
Term of office since: 2007
Principal occupations: Chief Compliance Officer, Evergreen Funds and Senior Vice President of
Evergreen Investments Co, Inc; Former Managing Director and Senior Compliance Officer,
Babson Capital Management LLC; Former Principal and Director, Compliance and Risk
Management, State Street Global Advisors; Former Vice President and Manager, Sales Practice
Compliance, Deutsche Asset Management.
1
2
3
4
5
Each Trustee, except Ms. Norris, serves until a successor is duly elected or qualified or until his death, resignation, retirement or
removal from office. As a new Trustee, Ms. Norris’ initial term ends June 30, 2009, at which time she may be re-elected by Trustees
to serve until a successor is duly elected or qualified or until her death, resignation, retirement or removal from office by the Trustees.
Each Trustee oversees 92 Evergreen funds. Correspondence for each Trustee may be sent to Evergreen Board of Trustees,
P.O. Box 20083, Charlotte, NC 28202.
Mr. Wagoner is an “interested person” of the Fund because of his ownership of shares in Wachovia Corporation, the parent to the
Fund’s investment advisor.
The address of the Officer is 401 S. Tryon Street, 20th Floor, Charlotte, NC 28288.
The address of the Officer is 200 Berkeley Street, Boston, MA 02116.
Mr. Guerin’s information is as of June 14, 2007, the effective date of his approval by the Board of Trustees as Chief Compliance Officer
of the Evergreen funds.
Additional information about the Fund’s Board of Trustees and Officers can be found in the Statement of Additional Information (SAI) and
is available upon request without charge by calling 800.343.2898.
25
566887 rv4 8/2007
For the eighth consecutive year, Evergreen Investments has earned the
Dalbar Mutual Fund Service Award, which recognizes those firms that
exceed industry norms in key service areas. For 2006, Evergreen was
ranked fifth overall out of 37 participating companies.
Evergreen Express Line 800.346.3858
Evergreen Investor Services 800.343.2898
F O R M O R E I N F O R M AT I O N
Visit us online at EvergreenInvestments.com
Commitment — We are dedicated to working with financial
professionals, crafting innovative solutions that meet your needs
and translate into successful investor-advisor partnerships.
Experience — Our investment teams operate independently,
performing their own original research, across a full range of
investment disciplines.
Excellence — Our investments are built for long-term performance,
through strategies designed in an effort to outperform their
benchmarks and peers over a full market cycle.
Leadership — With more than $281 billion in assets as of
June 30, 2007, Evergreen Investments has the scale and
resources to help investors and financial professionals succeed.
At Evergreen Investments, we remain steadfastly dedicated to
four core principles that lead to success in today’s financial world.
I N V E S T M E N T S T H AT S TA N D T H E T E S T O F T I M E
Evergreen Investments
200 Berkeley Street
Boston, MA 02116-5034