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OMB APPROVAL |
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| OMB Number: 3235-0570 Expires: September 30, 2007 Estimated average burden hours per response: 19.4 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-21799
Evergreen International Balanced Income Fund
______________________________________________________
(Exact name of registrant as specified in charter)
200 Berkeley Street
Boston, Massachusetts 02116
______________________________________________________
(Address of principal executive offices) (Zip code)
Michael H. Koonce, Esq.
200 Berkeley Street
Boston, Massachusetts 02116
______________________________________________________
(Name and address of agent for service)
Registrant’s telephone number, including area code: (617) 210-3200
Date of fiscal year end: October 31
Date of reporting period: April 30, 2008
Item 1 - Reports to Stockholders.
Evergreen International Balanced Income Fund
|
| table of contents |
1 |
| LETTER TO SHAREHOLDERS |
4 |
| FINANCIAL HIGHLIGHTS |
5 |
| SCHEDULE OF INVESTMENTS |
15 |
| STATEMENT OF ASSETS AND LIABILITIES |
16 |
| STATEMENT OF OPERATIONS |
17 |
| STATEMENTS OF CHANGES IN NET ASSETS |
18 |
| NOTES TO FINANCIAL STATEMENTS |
25 |
| AUTOMATIC DIVIDEND REINVESTMENT PLAN |
28 |
| TRUSTEES AND OFFICERS |
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 2008, 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
June 2008
Dennis H. Ferro
President and Chief Executive Officer
Dear Shareholder:
We are pleased to provide the semiannual report for Evergreen International Balanced Income Fund for the six-month period ended April 30, 2008 (the “six-month period”).
Foreign equity and fixed income markets were roiled by many of the forces that affected domestic markets during the six-month period, as investors worried about the potential contagious effects of weakness in the U.S. economy. Concerns that started over problems with subprime mortgages in the United States created volatility in markets around the globe. Most major foreign equity benchmarks suffered steep declines over the first five months of the six-month period before rallying sharply in the final month. In fixed income markets, a credit crunch and liquidity crisis dominated markets, causing a general flight to quality over the first five months of the six-month period. Foreign sovereign debt and other high-quality securities tended to perform well, while credit-sensitive sectors tended to fall. As in the United States, this pattern reversed itself in April 2008, as foreign corporate bonds and emerging market debt rallied following a series of actions by the U.S. Federal Reserve Board (the “Fed”) to stabilize the markets. Over the six-month period, prices of gold, oil and other commodities surged while the U.S. dollar weakened further.
Although the U.S. economy slowed significantly in late 2007 and early 2008, foreign economies generally maintained their healthy growth trajectories, driven by the dynamic expansion of the emerging markets. The pace of growth, however,
1
LETTER TO SHAREHOLDERS continued
diverged among different regions and countries. Economies such as China, India and Brazil continued to grow explosively, helping drive growth in commodity-rich emerging markets. At the same time, problems in the American economy appeared to contribute to slowing growth in Europe, Japan and some other developed economies. Within the United States, Gross Domestic Product growth decelerated to a rate of 0.6% during the final quarter of 2007 and the first quarter of 2008. A buildup in inventories and export gains kept the economy from contracting during the first three months of 2008. To reinvigorate the economy and stimulate lending activity, the Fed became increasingly aggressive, taking a series of steps to pour liquidity into the financial system. Major foreign central banks also provided additional liquidity to the financial markets, but moved less aggressively than the Fed. Rising prices for oil, metals and agricultural commodities prompted monetary authorities to watch inflationary trends carefully.
During the six-month period, managers of Evergreen International Balanced Income Fund sought a high level of income, primarily through investments in the stocks of stable, high-dividend foreign corporations, with a healthy allocation to foreign debt securities as well. To add to potential income, this closed-end fund also wrote call options on international indexes.
We believe the experiences over the six-month period have underscored the value of a well-diversified, long-term investment strategy to help soften the effects of volatility in any one market or asset class. As always, we encourage investors to maintain diversified investment portfolios in pursuit of their long-term investment goals.
2
LETTER TO SHAREHOLDERS continued
Please visit us at EvergreenInvestments.com for more information about our funds and other investment products available to you. From the Web site, you may also access details about daily fund prices, yields, dividend rates and fund facts about Evergreen closed-end funds. Thank you for your continued support of Evergreen Investments.
Sincerely,
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, regarding the firm’s recent settlement with the Securities and Exchange Commission (SEC) and prior settlement with the Financial Industry Regulatory Authority (FINRA).
3
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
| Six Months Ended |
| Year Ended |
| Year Ended April 30, | ||||||
2007 |
| 20062 | ||||||||||
Net asset value, beginning of period |
| $ | 22.65 |
| $ | 21.61 |
| $ | 20.59 |
| $ | 19.103 |
Income from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| 0.57 |
|
| 0.50 |
|
| 0.84 |
|
| 0.39 |
Net realized and unrealized gains or losses on investments |
|
| (1.83) |
|
| 1.41 |
|
| 1.93 |
|
| 1.83 |
|
| |||||||||||
Total from investment operations |
|
| (1.26) |
|
| 1.91 |
|
| 2.77 |
|
| 2.22 |
Distributions to shareholders from |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (0.87) |
|
| (0.47) |
|
| (1.09) |
|
| (0.69) |
Net realized gains |
|
| 0 |
|
| (0.40) |
|
| (0.66) |
|
| 0 |
|
| |||||||||||
Total distributions to shareholders |
|
| (0.87) |
|
| (0.87) |
|
| (1.75) |
|
| (0.69) |
Offering costs charged to capital |
|
| 0 |
|
| 0 |
|
| 0 |
|
| (0.04) |
Net asset value, end of period |
| $ | 20.52 |
| $ | 22.65 |
| $ | 21.61 |
| $ | 20.59 |
Market value, end of period |
| $ | 20.00 |
| $ | 22.15 |
| $ | 22.06 |
| $ | 19.07 |
Total return based on market value4 |
|
| (5.67)% |
|
| 4.62% |
|
| 26.00% |
|
| (1.16)% |
Ratios and supplemental data |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (thousands) |
| $ | 237,491 |
| $ | 262,092 |
| $ | 249,600 |
| $ | 235,819 |
Ratios to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses including waivers/reimbursements but excluding expense reductions |
|
| 1.20%5 |
|
| 1.14%5 |
|
| 1.20% |
|
| 1.20%5 |
Expenses excluding waivers/reimbursements and expense reductions |
|
| 1.20%5 |
|
| 1.14%5 |
|
| 1.29% |
|
| 1.27%5 |
Net investment income (loss) |
|
| 5.41%5 |
|
| 4.61%5 |
|
| 4.12% |
|
| 3.96%5 |
Portfolio turnover rate |
|
| 42% |
|
| 39% |
|
| 90% |
|
| 42% |
1 | For the six months ended October 31, 2007. The Fund changed its fiscal year end from April 30 to October 31, effective October 31, 2007. |
2 | For the period from October 31, 2005 (commencement of operations), to April 30, 2006. |
3 | Initial public offering price of $20.00 per share less underwriting discount of $0.90 per share. |
4 | Total return is calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Dividends and distributions, if any, are assumed for the purposes of these calculations to be reinvested at prices obtained under the Fund’s Automatic Dividend Reinvestment Plan. Total return does not reflect brokerage commissions or sales charges. |
5 | Annualized |
4
SCHEDULE OF INVESTMENTS
April 30, 2008 (unaudited)
|
|
| Principal |
|
| Value |
CORPORATE BONDS 0.1% |
|
|
|
|
|
|
INDUSTRIALS 0.1% |
|
|
|
|
|
|
Commercial Services & Supplies 0.1% |
|
|
|
|
|
|
ARAMARK Corp., 8.50%, 02/01/2015 (cost $367,555) |
| $ | 350,000 |
| $ | 366,625 |
|
|
|
|
| ||
FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT |
|
|
|
|
|
|
DENOMINATED IN CURRENCY INDICATED) 12.9% |
|
|
|
|
|
|
CONSUMER DISCRETIONARY 0.6% |
|
|
|
|
|
|
Automobiles 0.5% |
|
|
|
|
|
|
Daimler AG, 5.125%, 11/10/2008 GBP |
|
| 550,000 |
|
| 1,082,693 |
|
|
|
|
| ||
Hotels, Restaurants & Leisure 0.1% |
|
|
|
|
|
|
Royal Caribbean Cruises, Ltd., 5.625%, 01/27/2014 EUR |
|
| 255,000 |
|
| 334,186 |
|
|
|
|
| ||
CONSUMER STAPLES 1.6% |
|
|
|
|
|
|
Beverages 0.4% |
|
|
|
|
|
|
Canandaigua Brands, Inc., 8.50%, 11/15/2009 GBP |
|
| 300,000 |
|
| 593,518 |
Central European Distribution Corp., 8.00%, 07/25/2012 EUR |
|
| 200,000 |
|
| 311,320 |
|
|
|
|
| ||
|
|
|
|
|
| 904,838 |
|
|
|
|
| ||
Food Products 0.8% |
|
|
|
|
|
|
Nestle SA, 5.50%, 11/18/2009 AUD |
|
| 2,070,000 |
|
| 1,891,660 |
|
|
|
|
| ||
Tobacco 0.4% |
|
|
|
|
|
|
British American Tobacco plc, 5.125%, 07/09/2013 EUR |
|
| 700,000 |
|
| 1,079,486 |
|
|
|
|
| ||
ENERGY 1.0% |
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 1.0% |
|
|
|
|
|
|
GAZPROM OAO, 6.58%, 10/31/2013 GBP |
|
| 500,000 |
|
| 907,800 |
Total SA, 4.125%, 01/25/2012 CAD |
|
| 1,600,000 |
|
| 1,615,118 |
|
|
|
|
| ||
|
|
|
|
|
| 2,522,918 |
|
|
|
|
| ||
FINANCIALS 8.1% |
|
|
|
|
|
|
Capital Markets 1.6% |
|
|
|
|
|
|
Ahold Finance USA, Inc., 6.50%, 03/14/2017 GBP |
|
| 200,000 |
|
| 377,829 |
Goldman Sachs Group, Inc., 4.50%, 01/30/2017 EUR |
|
| 1,000,000 |
|
| 1,385,993 |
Merrill Lynch & Co., Inc., 10.71%, 03/08/2017 BRL |
|
| 2,000,000 |
|
| 1,030,331 |
Morgan Stanley, 10.09%, 05/03/2017 BRL |
|
| 2,000,000 |
|
| 972,912 |
|
|
|
|
| ||
|
|
|
|
|
| 3,767,065 |
|
|
|
|
| ||
Commercial Banks 2.6% |
|
|
|
|
|
|
Kommunalbanken AS, 6.00%, 02/25/2011 AUD |
|
| 5,900,000 |
|
| 5,330,112 |
Landwirtschaftliche Rentenbank, 5.75%, 01/21/2015 AUD |
|
| 850,000 |
|
| 736,719 |
|
|
|
|
| ||
|
|
|
|
|
| 6,066,831 |
|
|
|
|
| ||
Consumer Finance 2.3% |
|
|
|
|
|
|
Dali Capital plc, 7.25%, 11/25/2009 RUB |
|
| 35,000,000 |
|
| 1,464,941 |
SLM Corp., 5.375%, 12/15/2010 GBP |
|
| 185,000 |
|
| 330,760 |
Smurfit Kappa Funding, 7.75%, 04/01/2015 EUR |
|
| 250,000 |
|
| 381,367 |
Toyota Credit Canada, 4.60%, 06/01/2012 CAD |
|
| 1,600,000 |
|
| 1,632,089 |
Virgin Media Finance plc, 9.75%, 04/15/2014 GBP |
|
| 160,000 |
|
| 299,089 |
See Notes to Financial Statements
5
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
|
| Principal |
|
| Value |
FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT |
|
|
|
|
|
|
DENOMINATED IN CURRENCY INDICATED) continued |
|
|
|
|
|
|
FINANCIALS continued |
|
|
|
|
|
|
Consumer Finance continued |
|
|
|
|
|
|
VTB Capital SA, 6.33%, 03/15/2010 GBP |
|
| 450,000 |
| $ | 861,670 |
Wind Acquisition Finance SpA, 9.75%, 12/01/2015 EUR |
|
| 250,000 |
|
| 407,148 |
|
|
|
|
| ||
|
|
|
|
|
| 5,377,064 |
|
|
|
|
| ||
Diversified Financial Services 1.0% |
|
|
|
|
|
|
ABB International Finance, Ltd., 4.625%, 06/06/2013 EUR |
|
| 700,000 |
|
| 1,059,609 |
Dubai Holding Commercial Operations Group, LLC: |
|
|
|
|
|
|
4.75%, 01/30/2014 EUR |
|
| 450,000 |
|
| 645,100 |
6.00%, 02/01/2017 GBP |
|
| 250,000 |
|
| 451,054 |
Lighthouse Group plc, 8.00%, 04/30/2014 EUR |
|
| 235,000 |
|
| 310,931 |
|
|
|
|
| ||
|
|
|
|
|
| 2,466,694 |
|
|
|
|
| ||
Insurance 0.6% |
|
|
|
|
|
|
ASIF III Jersey, Ltd., 4.375%, 12/30/2008 GBP |
|
| 790,000 |
|
| 1,541,943 |
|
|
|
|
| ||
INDUSTRIALS 0.2% |
|
|
|
|
|
|
Aerospace & Defense 0.2% |
|
|
|
|
|
|
Bombardier, Inc., 7.25%, 11/15/2016 EUR |
|
| 250,000 |
|
| 393,041 |
|
|
|
|
| ||
INFORMATION TECHNOLOGY 0.1% |
|
|
|
|
|
|
IT Services 0.1% |
|
|
|
|
|
|
Iron Mountain, Inc., 6.75%, 10/15/2018 EUR |
|
| 250,000 |
|
| 346,343 |
|
|
|
|
| ||
MATERIALS 0.2% |
|
|
|
|
|
|
Containers & Packaging 0.2% |
|
|
|
|
|
|
Owens-Illinois European Group BV, 6.875%, 03/31/2017 EUR |
|
| 260,000 |
|
| 398,645 |
|
|
|
|
| ||
TELECOMMUNICATION SERVICES 0.5% |
|
|
|
|
|
|
Diversified Telecommunication Services 0.5% |
|
|
|
|
|
|
Telecom Italia SpA, 7.25%, 04/24/2012 EUR |
|
| 700,000 |
|
| 1,126,485 |
|
|
|
|
| ||
UTILITIES 0.6% |
|
|
|
|
|
|
Multi-Utilities 0.6% |
|
|
|
|
|
|
Veolia Environnement SA, 4.875%, 05/28/2013 EUR |
|
| 900,000 |
|
| 1,375,434 |
|
|
|
|
| ||
Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated) |
|
|
|
|
| 30,675,326 |
|
|
|
|
| ||
FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT |
|
|
|
|
|
|
DENOMINATED IN CURRENCY INDICATED) 15.8% |
|
|
|
|
|
|
Brazil, 10.25%, 01/10/2028 BRL ρ |
|
| 2,200,000 |
|
| 1,158,032 |
Canada, 6.25%, 06/15/2015 NZD |
|
| 5,600,000 |
|
| 4,053,356 |
International Bank for Reconstruction and Development, 5.75%, |
|
|
|
|
|
|
06/25/2010 RUB |
|
| 50,000,000 |
|
| 2,090,133 |
Korea: |
|
|
|
|
|
|
5.25%, 09/10/2015 KRW |
|
| 4,700,000,000 |
|
| 4,733,871 |
5.25%, 03/10/2027 KRW |
|
| 1,903,000,000 |
|
| 1,917,706 |
Malaysia, 4.24%, 02/07/2018 MYR |
|
| 6,800,000 |
|
| 2,210,237 |
Mexico, 10.00%, 12/05/2024 MXN |
|
| 67,130,000 |
|
| 7,580,058 |
|
|
|
|
|
|
|
See Notes to Financial Statements
6
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
|
| Principal |
|
| Value |
FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT |
|
|
|
|
|
|
DENOMINATED IN CURRENCY INDICATED) continued |
|
|
|
|
|
|
Morocco, 5.375%, 06/27/2017 EUR |
|
| 450,000 |
| $ | 662,084 |
Norway, 4.25%, 05/19/2017 NOK |
|
| 41,000,000 |
|
| 7,877,424 |
Peru, 7.50%, 10/14/2014 EUR |
|
| 250,000 |
|
| 421,644 |
Poland, 5.00%, 10/24/2013 PLN |
|
| 8,500,000 |
|
| 3,646,318 |
South Africa, 5.25%, 05/16/2013 EUR |
|
| 500,000 |
|
| 758,842 |
Ukraine, 4.95%, 10/13/2015 EUR |
|
| 250,000 |
|
| 342,607 |
|
|
|
|
| ||
Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated) |
|
| 37,452,312 | |||
|
|
|
|
| ||
YANKEE OBLIGATIONS – CORPORATE 0.5% |
|
|
|
|
|
|
FINANCIALS 0.1% |
|
|
|
|
|
|
Consumer Finance 0.1% |
|
|
|
|
|
|
Virgin Media Finance plc, 9.125%, 08/15/2016 |
| $ | 330,000 |
|
| 320,100 |
|
|
|
|
| ||
TELECOMMUNICATION SERVICES 0.2% |
|
|
|
|
|
|
Wireless Telecommunication Services 0.2% |
|
|
|
|
|
|
Vimpel Communications, 8.25%, 05/23/2016 |
|
| 330,000 |
|
| 324,209 |
|
|
|
|
| ||
UTILITIES 0.2% |
|
|
|
|
|
|
Multi-Utilities 0.2% |
|
|
|
|
|
|
National Power Corp., FRN, 7.34%, 08/23/2011 |
|
| 500,000 |
|
| 529,300 |
|
|
|
|
| ||
Total Yankee Obligations – Corporate (cost $1,228,894) |
|
|
|
|
| 1,173,609 |
|
|
|
|
| ||
YANKEE OBLIGATIONS – GOVERNMENT 0.7% |
|
|
|
|
|
|
Colombia, 8.25%, 12/22/2014 |
|
| 500,000 |
|
| 582,750 |
Philippines, 8.00%, 01/15/2016 ρ |
|
| 350,000 |
|
| 402,500 |
Turkey, 9.00%, 06/30/2011 |
|
| 500,000 |
|
| 557,500 |
|
|
|
|
| ||
Total Yankee Obligations – Government (cost $1,482,201) |
|
|
|
|
| 1,542,750 |
|
|
|
|
|
|
| Country |
| Shares |
|
| Value |
COMMON STOCKS 63.7% |
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 6.1% |
|
|
|
|
|
|
|
Auto Components 1.3% |
|
|
|
|
|
|
|
Compagnie Generale des Etablissements Michelin, Class B µ |
| France |
| 22,530 |
|
| 2,061,075 |
Nokian Renkaat Oyj ρ |
| Finland |
| 22,527 |
|
| 958,341 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,019,416 |
|
|
|
|
|
| ||
Automobiles 0.2% |
|
|
|
|
|
|
|
Daimler AG |
| Germany |
| 6,042 |
|
| 469,590 |
|
|
|
|
|
| ||
Hotels, Restaurants & Leisure 0.9% |
|
|
|
|
|
|
|
OPAP SA |
| Greece |
| 54,200 |
|
| 2,109,192 |
|
|
|
|
|
|
See Notes to Financial Statements
7
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
| Country |
| Shares |
|
| Value |
COMMON STOCKS continued |
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY continued |
|
|
|
|
|
|
|
Media 1.6% |
|
|
|
|
|
|
|
Arnoldo Mondadori Editore SpA ρ |
| Italy |
| 74,944 |
| $ | 653,284 |
Macquarie Communications Infrastructure Group �� |
| Australia |
| 425,609 |
|
| 1,800,434 |
Pearson plc |
| United Kingdom |
| 69,673 |
|
| 907,883 |
Wolters Kluwer NV |
| Netherlands |
| 21,170 |
|
| 568,772 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,930,373 |
|
|
|
|
|
| ||
Multi-line Retail 0.4% |
|
|
|
|
|
|
|
PPR SA ρ |
| France |
| 6,766 |
|
| 885,316 |
|
|
|
|
|
| ||
Specialty Retail 0.6% |
|
|
|
|
|
|
|
H&M Hennes & Mauritz AB, Class B ρ |
| Sweden |
| 14,300 |
|
| 847,986 |
Inditex SA ρ |
| Spain |
| 11,849 |
|
| 645,176 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 1,493,162 |
|
|
|
|
|
| ||
Textiles, Apparel & Luxury Goods 1.1% |
|
|
|
|
|
|
|
adidas AG µ |
| Germany |
| 41,117 |
|
| 2,623,471 |
|
|
|
|
|
| ||
CONSUMER STAPLES 7.6% |
|
|
|
|
|
|
|
Beverages 1.6% |
|
|
|
|
|
|
|
Coca-Cola Amatil, Ltd. |
| Australia |
| 109,492 |
|
| 867,558 |
Diageo plc |
| United Kingdom |
| 83,695 |
|
| 1,714,745 |
Foster’s Group, Ltd. ρ |
| Australia |
| 130,081 |
|
| 621,358 |
Grupo Modelo SA de CV, Ser. C |
| Mexico |
| 131,700 |
|
| 579,278 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,782,939 |
|
|
|
|
|
| ||
Food & Staples Retailing 2.3% |
|
|
|
|
|
|
|
Carrefour SA µ |
| France |
| 60,930 |
|
| 4,289,776 |
Woolworths, Ltd. |
| Australia |
| 39,610 |
|
| 1,071,043 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 5,360,819 |
|
|
|
|
|
| ||
Food Products 2.1% |
|
|
|
|
|
|
|
Unilever NV |
| Netherlands |
| 150,198 |
|
| 5,050,040 |
|
|
|
|
|
| ||
Tobacco 1.6% |
|
|
|
|
|
|
|
British American Tobacco Malaysia Berhad |
| Malaysia |
| 53,100 |
|
| 718,589 |
British American Tobacco plc µ |
| United Kingdom |
| 82,961 |
|
| 3,121,340 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,839,929 |
|
|
|
|
|
| ||
ENERGY 6.0% |
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 6.0% |
|
|
|
|
|
|
|
BP plc µ |
| United Kingdom |
| 278,386 |
|
| 3,373,559 |
ENI SpA µ |
| Italy |
| 69,490 |
|
| 2,676,079 |
Royal Dutch Shell plc, Class B |
| United Kingdom |
| 120,010 |
|
| 4,796,144 |
Total SA µ |
| France |
| 39,544 |
|
| 3,320,232 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 14,166,014 |
|
|
|
|
|
|
See Notes to Financial Statements
8
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
| Country |
| Shares |
|
| Value |
COMMON STOCKS continued |
|
|
|
|
|
|
|
FINANCIALS 10.0% |
|
|
|
|
|
|
|
Capital Markets 0.7% |
|
|
|
|
|
|
|
UBS AG ρ |
| Switzerland |
| 24,895 |
| $ | 837,168 |
Vontobel Holding AG ρ |
| Switzerland |
| 22,804 |
|
| 865,448 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 1,702,616 |
|
|
|
|
|
| ||
Commercial Banks 4.1% |
|
|
|
|
|
|
|
Banco Santander Central Hispano SA ρ |
| Spain |
| 36,977 |
|
| 797,184 |
Bank Leumi Le-Israel BM |
| Israel |
| 212,958 |
|
| 1,056,406 |
Danske Bank AS |
| Denmark |
| 12,200 |
|
| 421,795 |
Hang Seng Bank, Ltd. |
| Hong Kong |
| 50,500 |
|
| 1,011,419 |
HSBC Holdings plc – London Exchange |
| United Kingdom |
| 20,343 |
|
| 354,855 |
Lloyds TSB Group plc µ |
| United Kingdom |
| 301,169 |
|
| 2,583,427 |
Nordea Bank AB ρ |
| Sweden |
| 53,500 |
|
| 884,032 |
Royal Bank of Canada |
| Canada |
| 25,500 |
|
| 1,215,756 |
Sparebanken Nord-Norge |
| Norway |
| 78,800 |
|
| 1,449,692 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 9,774,566 |
|
|
|
|
|
| ||
Diversified Financial Services 2.2% |
|
|
|
|
|
|
|
ABG Sundal Collier ASA ρ |
| Norway |
| 372,200 |
|
| 589,314 |
Criteria Caixa Corp. SA ρ |
| Spain |
| 251,671 |
|
| 1,704,117 |
Fortis NV – Amsterdam Exchange |
| Belgium |
| 20,161 |
|
| 549,509 |
Guoco Group, Ltd. |
| Bermuda |
| 76,000 |
|
| 814,698 |
Hellenic Exchanges SA |
| Greece |
| 41,616 |
|
| 906,912 |
ING Groep NV |
| Netherlands |
| 17,051 |
|
| 650,534 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 5,215,084 |
|
|
|
|
|
| ||
Insurance 2.7% |
|
|
|
|
|
|
|
Lancashire Holdings plc |
| Bermuda |
| 134,628 |
|
| 814,395 |
Legal & General Group plc |
| United Kingdom |
| 613,447 |
|
| 1,543,968 |
Muenchener Rueckversicherungs-Gesellschaft AG µ |
| Germany |
| 16,455 |
|
| 3,182,776 |
TrygVesta AS ρ |
| Denmark |
| 10,810 |
|
| 926,736 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 6,467,875 |
|
|
|
|
|
| ||
Real Estate Investment Trusts 0.3% |
|
|
|
|
|
|
|
Parkway Life ρ |
| Singapore |
| 7,577 |
|
| 6,919 |
Westfield Group Australia ρ |
| Australia |
| 32,290 |
|
| 554,898 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 561,817 |
|
|
|
|
|
| ||
HEALTH CARE 0.2% |
|
|
|
|
|
|
|
Health Care Providers & Services 0.2% |
|
|
|
|
|
|
|
Parkway Holdings, Ltd. |
| Singapore |
| 151,550 |
|
| 390,622 |
|
|
|
|
|
| ||
INDUSTRIALS 6.6% |
|
|
|
|
|
|
|
Aerospace & Defense 1.1% |
|
|
|
|
|
|
|
BAE Systems plc µ |
| United Kingdom |
| 284,202 |
|
| 2,630,942 |
|
|
|
|
|
|
See Notes to Financial Statements
9
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
| Country |
| Shares |
|
| Value |
COMMON STOCKS continued |
|
|
|
|
|
|
|
INDUSTRIALS continued |
|
|
|
|
|
|
|
Building Products 0.3% |
|
|
|
|
|
|
|
Assa Abloy AB, Class B ρ |
| Sweden |
| 48,400 |
| $ | 753,806 |
|
|
|
|
|
| ||
Commercial Services & Supplies 1.4% |
|
|
|
|
|
|
|
De La Rue plc µ |
| United Kingdom |
| 191,052 |
|
| 3,245,478 |
|
|
|
|
|
| ||
Construction & Engineering 0.3% |
|
|
|
|
|
|
|
Skanska AB, Class B |
| Sweden |
| 42,200 |
|
| 697,663 |
|
|
|
|
|
| ||
Electrical Equipment 0.1% |
|
|
|
|
|
|
|
Schneider Electric SA ρ |
| France |
| 999 |
|
| 122,242 |
|
|
|
|
|
| ||
Industrial Conglomerates 0.3% |
|
|
|
|
|
|
|
Barloworld, Ltd. |
| South Africa |
| 19,228 |
|
| 280,488 |
Fraser & Neave, Ltd. |
| Singapore |
| 165,000 |
|
| 580,823 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 861,311 |
|
|
|
|
|
| ||
Machinery 1.6% |
|
|
|
|
|
|
|
Aker Yards ASA * ρ |
| Norway |
| 71,780 |
|
| 945,453 |
SKF AB, Class B ρ |
| Sweden |
| 164,000 |
|
| 3,004,964 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,950,417 |
|
|
|
|
|
| ||
Transportation Infrastructure 1.5% |
|
|
|
|
|
|
|
Brisa-Autoestradas de Portugal SA ρ |
| Portugal |
| 45,063 |
|
| 640,424 |
Macquarie Airports ρ |
| Australia |
| 393,249 |
|
| 1,163,369 |
Macquarie Infrastructure Group ρ |
| Australia |
| 644,942 |
|
| 1,719,599 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,523,392 |
|
|
|
|
|
| ||
INFORMATION TECHNOLOGY 4.0% |
|
|
|
|
|
|
|
Internet Software & Services 0.5% |
|
|
|
|
|
|
|
Baidu.com, Inc., ADR * |
| Cayman Islands |
| 3,436 |
|
| 1,256,201 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Semiconductors & Semiconductor Equipment 0.4% |
|
|
|
|
|
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
| Taiwan |
| 163,793 |
|
| 358,814 |
Taiwan Semiconductor Manufacturing Co., Ltd., ADR |
| Taiwan |
| 53,802 |
|
| 604,735 |
United Microelectronics Corp. |
| Taiwan |
| 2 |
|
| 1 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 963,550 |
|
|
|
|
|
| ||
Software 3.1% |
|
|
|
|
|
|
|
Nintendo Co., Ltd. |
| Japan |
| 6,600 |
|
| 3,610,462 |
SAP AG ρ |
| Germany |
| 16,852 |
|
| 849,648 |
Square Enix Co., Ltd. ρ |
| Japan |
| 84,400 |
|
| 2,741,100 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 7,201,210 |
|
|
|
|
|
| ||
MATERIALS 3.0% |
|
|
|
|
|
|
|
Chemicals 1.3% |
|
|
|
|
|
|
|
Akzo Nobel NV ρ |
| Netherlands |
| 29,920 |
|
| 2,537,788 |
BASF AG ρ |
| Germany |
| 4,234 |
|
| 604,032 |
Freeworld Coatings, Ltd.* |
| South Africa |
| 19,228 |
|
| 23,607 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,165,427 |
|
|
|
|
|
|
See Notes to Financial Statements
10
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
| Country |
| Shares |
|
| Value |
COMMON STOCKS continued |
|
|
|
|
|
|
|
MATERIALS continued |
|
|
|
|
|
|
|
Construction Materials 0.6% |
|
|
|
|
|
|
|
Lafarge SA ρ |
| France |
| 5,246 |
| $ | 946,349 |
Pretoria Portland Cement Co., Ltd. |
| South Africa |
| 35,677 |
|
| 188,393 |
Siam Cement |
| Thailand |
| 26,000 |
|
| 177,105 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 1,311,847 |
|
|
|
|
|
| ||
Containers & Packaging 0.8% |
|
|
|
|
|
|
|
Rexam plc |
| United Kingdom |
| 213,789 |
|
| 1,898,544 |
|
|
|
|
|
| ||
Metals & Mining 0.2% |
|
|
|
|
|
|
|
Teck Cominco, Ltd. |
| Canada |
| 10,800 |
|
| 469,873 |
|
|
|
|
|
| ||
Paper & Forest Products 0.1% |
|
|
|
|
|
|
|
Stora Enso Oyj, Class R |
| Finland |
| 20,800 |
|
| 257,723 |
|
|
|
|
|
| ||
TELECOMMUNICATION SERVICES 10.4% |
|
|
|
|
|
|
|
Diversified Telecommunication Services 8.4% |
|
|
|
|
|
|
|
BCE, Inc |
| Canada |
| 10,800 |
|
| 394,599 |
Belgacom SA ρ |
| Belgium |
| 9,693 |
|
| 447,438 |
BT Group plc |
| United Kingdom |
| 285,090 |
|
| 1,259,504 |
Chunghwa Telecom Co., Ltd. |
| United States |
| 41,342 |
|
| 1,054,634 |
Deutsche Telekom AG |
| Germany |
| 33,550 |
|
| 602,664 |
France Telecom µ |
| France |
| 176,953 |
|
| 5,552,970 |
Hrvatske Telekom SP GDR 144A |
| Croatia |
| 10,000 |
|
| 615,000 |
KT Corp. |
| South Korea |
| 18,570 |
|
| 854,876 |
KT Corp., ADR * |
| South Korea |
| 39,540 |
|
| 914,165 |
Qwest Communications International, Inc. |
| Sweden |
| 68,000 |
|
| 1,044,908 |
Telecom Italia SPA |
| Italy |
| 1,186,233 |
|
| 1,944,354 |
Telefonica SA |
| Spain |
| 146,499 |
|
| 4,234,708 |
TeliaSonera AB ρ |
| Sweden |
| 129,500 |
|
| 1,154,054 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 20,073,874 |
|
|
|
|
|
| ||
Wireless Telecommunication Services 2.0% |
|
|
|
|
|
|
|
China Unicom, Ltd. ρ |
| Hong Kong |
| 516,000 |
|
| 1,117,529 |
StarHub, Ltd. |
| Singapore |
| 651,500 |
|
| 1,458,546 |
Vodafone Group plc |
| United Kingdom |
| 650,664 |
|
| 2,068,665 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 4,644,740 |
|
|
|
|
|
| ||
UTILITIES 9.8% |
|
|
|
|
|
|
|
Electric Utilities 4.8% |
|
|
|
|
|
|
|
E.ON AG ρ |
| Germany |
| 3,212 |
|
| 653,524 |
Enel SpA µ |
| Italy |
| 368,246 |
|
| 4,006,749 |
Fortum Oyj |
| Finland |
| 45,600 |
|
| 1,935,650 |
Scottish & Southern Energy plc µ |
| United Kingdom |
| 91,955 |
|
| 2,538,717 |
Spark Infrastructure Group |
| Australia |
| 1,428,865 |
|
| 2,396,245 |
|
|
|
|
|
| ||
11,530,885 | |||||||
|
|
|
|
|
|
See Notes to Financial Statements
11
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
| Country |
| Shares |
|
| Value |
COMMON STOCKS continued |
|
|
|
|
|
|
|
UTILITIES continued |
|
|
|
|
|
|
|
Gas Utilities 1.0% |
|
|
|
|
|
|
|
Gaz de France |
| France |
| 22,562 |
| $ | 1,486,981 |
Snam Rete Gas SpA |
| Italy |
| 141,982 |
|
| 900,060 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 2,387,041 |
|
|
|
|
|
| ||
Multi-Utilities 4.0% |
|
|
|
|
|
|
|
National Grid plc µ |
| United Kingdom |
| 202,195 |
|
| 2,809,172 |
RWE AG ρ |
| Germany |
| 16,575 |
|
| 1,907,699 |
SUEZ ρ |
| France |
| 27,249 |
|
| 1,929,918 |
|
|
|
|
|
| ||
United Utilities plc µ |
| United Kingdom |
| 195,752 |
|
| 2,785,658 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 9,432,447 |
|
|
|
|
|
| ||
Total Common Stocks (cost $136,003,493) |
|
|
|
|
|
| 151,221,454 |
|
|
|
|
|
| ||
PREFERRED STOCKS 0.5% |
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 0.4% |
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods 0.4% |
|
|
|
|
|
|
|
Hugo Boss AG, Var. Rate Pfd. |
| Germany |
| 16,739 |
|
| 869,486 |
|
|
|
|
|
| ||
UTILITIES 0.1% |
|
|
|
|
|
|
|
Electric Utilities 0.1% |
|
|
|
|
|
|
|
Eletrobras SA, Class B, Var. Rate Pfd. |
| Brazil |
| 23,800 |
|
| 363,165 |
|
|
|
|
|
| ||
Total Preferred Stocks (cost $853,851) |
|
|
|
|
|
| 1,232,651 |
|
|
|
|
|
| ||
RIGHTS 0.0% |
|
|
|
|
|
|
|
FINANCIALS 0.0% |
|
|
|
|
|
|
|
Capital Markets 0.0% |
|
|
|
|
|
|
|
UBS AG * |
| Switzerland |
| 24,895 |
|
| 41,858 |
|
|
|
|
|
| ||
Diversified Financial Services 0.0% |
|
|
|
|
|
|
|
Fortis NV * ρ |
| Belgium |
| 8,064 |
|
| 126 |
|
|
|
|
|
| ||
Total Rights (Cost $40,545) |
|
|
|
|
|
| 41,984 |
|
|
|
|
|
| ||
EXCHANGE TRADED FUND 0.3% |
|
|
|
|
|
|
|
iShares MSCI EAFE Index ρ (cost $558,260) |
| United States |
| 8,005 |
|
| 606,859 |
|
|
|
|
|
| ||
OTHER 1.3% |
|
|
|
|
|
|
|
Bell Aliant Regional Communications Income Fund |
| Canada |
| 25,648 |
|
| 766,486 |
Bell Aliant Regional Communications Income |
| Canada |
| 5,263 |
|
| 157,300 |
Yellow Pages Income Fund |
| Canada |
| 203,734 |
|
| 2,218,985 |
|
|
|
|
|
| ||
Total Other (cost $3,255,732) |
|
|
|
|
|
| 3,142,771 |
|
|
|
|
|
|
See Notes to Financial Statements
12
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
|
| Country |
| Shares |
|
| Value |
SHORT-TERM INVESTMENTS 16.6% |
|
|
|
|
|
|
|
MUTUAL FUND SHARES 16.6% |
|
|
|
|
|
|
|
Evergreen Institutional U.S. Government Money |
| United States |
| 5,607,923 |
| $ | 5,607,923 |
Navigator Prime Portfolio, 2.79% § ρρ |
| United States |
| 33,817,079 |
|
| 33,817,079 |
|
|
|
|
|
| ||
Total Short-Term Investments (cost $39,425,002) |
|
|
|
|
|
| 39,425,002 |
|
|
|
|
|
| ||
Total Investments (cost $248,893,505) 112.4% |
|
|
|
|
|
| 266,881,343 |
Other Assets and Liabilities (12.4%) |
|
|
|
|
|
| (29,390,099) |
|
|
|
|
|
| ||
Net Assets 100.0% |
|
|
|
|
| $ | 237,491,244 |
|
|
|
|
|
|
ρ | All or a portion of this security is on loan. |
µ | All or a portion of this security is pledged as collateral for written call options. |
* | Non-income producing security |
144A | Security that may be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended. |
| This security has been determined to be liquid under guidelines established by the Board of Trustees, unless otherwise noted. |
q | Rate shown is the 7-day annualized yield at period end. |
ø | Evergreen Investment Management Company, LLC is the investment advisor to both the Fund and the money market fund. |
§ | Rate shown is the 1-day annualized yield at period end. |
ρρ | All or a portion of this security represents investment of cash collateral received from securities on loan. |
Summary of Abbreviations
ADR | American Depository Receipt |
AUD | Australian Dollar |
BRL | Brazil Real |
CAD | Canadian Dollar |
EUR | Euro |
FRN | Floating Rate Note |
GBP | Great British Pound |
GDR | Global Depository Receipt |
KRW | Republic of Korea Won |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
PLN | Polish Zloty |
RUB | Russian Ruble |
See Notes to Financial Statements
13
SCHEDULE OF INVESTMENTS continued
April 30, 2008 (unaudited)
The following table shows the percent of total long-term investments by geographic location as of April 30, 2008:
United Kingdom |
| 18.1% |
France |
| 10.4% |
Norway |
| 7.1% |
Germany |
| 5.5% |
United States |
| 5.2% |
Canada |
| 5.0% |
Australia |
| 4.5% |
Italy |
| 4.5% |
Netherlands |
| 4.5% |
South Korea |
| 3.7% |
Sweden |
| 3.7% |
Mexico |
| 3.6% |
Spain |
| 3.2% |
Japan |
| 2.8% |
Luxembourg |
| 1.7% |
Poland |
| 1.6% |
Finland |
| 1.4% |
Greece |
| 1.3% |
Malaysia |
| 1.3% |
Singapore |
| 1.1% |
Cayman Islands |
| 1.0% |
Hong Kong |
| 0.9% |
Ireland |
| 0.8% |
Switzerland |
| 0.8% |
Bermuda |
| 0.7% |
Brazil |
| 0.7% |
Denmark |
| 0.6% |
South Africa |
| 0.6% |
Israel |
| 0.5% |
Belgium |
| 0.4% |
Philippines |
| 0.4% |
Taiwan |
| 0.4% |
Morocco |
| 0.3% |
Portugal |
| 0.3% |
Croatia |
| 0.3% |
Colombia |
| 0.3% |
Peru |
| 0.2% |
Turkey |
| 0.2% |
Ukraine |
| 0.2% |
Liberia |
| 0.1% |
Thailand |
| 0.1% |
| ||
|
| 100.0% |
|
The following table shows portfolio composition as a percent of total long-term investments as of April 30, 2008:
Financials |
| 18.0% |
Foreign Bond-Government |
| 16.5% |
Telecommunication Services |
| 11.7% |
Utilities |
| 11.3% |
Consumer Staples |
| 9.6% |
Consumer Discretionary |
| 8.1% |
Energy |
| 7.3% |
Industrials |
| 7.3% |
Information Technology |
| 4.3% |
Materials |
| 3.3% |
Yankee Obligations – Government |
| 0.7% |
Exchange Traded Fund |
| 0.3% |
Health Care |
| 0.2% |
Other |
| 1.4% |
| ||
|
| 100.0% |
|
The following table shows the percent of total bonds by credit quality based on Moody's and Standard & Poor's ratings as of April 30, 2008:
AAA |
| 27.5% |
AA |
| 15.5% |
A |
| 34.9% |
BBB |
| 10.5% |
BB |
| 8.4% |
B |
| 3.2% |
| ||
|
| 100.0% |
|
The following table shows the percent of total bonds based on effective maturity as of April 30, 2008:
Less than 1 year |
| 6.8% |
1 to 3 year(s) |
| 17.1% |
3 to 5 years |
| 7.8% |
5 to 10 years |
| 53.4% |
10 to 20 years |
| 14.9% |
| ||
|
| 100.0% |
|
See Notes to Financial Statements
14
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2008 (unaudited)
Assets |
|
| |
Investments in securities, at value (cost $243,285,582) including $32,873,403 of securities loaned |
| $ | 261,273,420 |
Investments in affiliated money market fund, at value (cost $5,607,923) |
|
| 5,607,923 |
Total investments |
|
| 266,881,343 |
Foreign currency, at value (cost $2,344,013) |
|
| 2,341,479 |
Receivable for securities sold |
|
| 6,654,472 |
Dividends and interest receivable |
|
| 2,931,889 |
Receivable for closed forward currency exchange contracts |
|
| 264,494 |
Receivable for securities lending income |
|
| 52,307 |
Total assets |
|
| 279,125,984 |
Liabilities |
|
|
|
Dividends payable |
|
| 1,687,254 |
Payable for securities purchased |
|
| 3,751,455 |
Payable for securities on loan |
|
| 33,817,079 |
Written options, at value (premiums received $1,603,895) |
|
| 1,349,569 |
Due to custodian bank |
|
| 925,148 |
Advisory fee payable |
|
| 6,131 |
Due to other related parties |
|
| 323 |
Accrued expenses and other liabilities |
|
| 97,781 |
Total liabilities |
|
| 41,634,740 |
Net assets |
| $ | 237,491,244 |
Net assets represented by |
|
|
|
Paid-in capital |
| $ | 220,761,723 |
Overdistributed net investment income |
|
| (6,423,611) |
Accumulated net realized gains on investments |
|
| 4,637,989 |
Net unrealized gains on investments |
|
| 18,515,143 |
Total net assets |
| $ | 237,491,244 |
Net asset value per share |
|
|
|
Based on $237,491,244 divided by 11,572,378 common shares issued and outstanding (unlimited number of common shares authorized) |
| $ | 20.52 |
See Notes to Financial Statements
15
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2008 (unaudited)
Investment income |
|
| |
Dividends (net of foreign withholding taxes of $460,764) |
| $ | 5,489,441 |
Interest (net of foreign withholding taxes of $20,108) |
|
| 2,296,232 |
Securities lending |
|
| 114,158 |
Income from affiliate |
|
| 84,682 |
Total investment income |
|
| 7,984,513 |
Expenses |
|
|
|
Advisory fee |
|
| 1,148,623 |
Administrative services fee |
|
| 60,454 |
Transfer agent fees |
|
| 17,499 |
Trustees' fees and expenses |
|
| 2,651 |
Printing and postage expenses |
|
| 38,458 |
Custodian and accounting fees |
|
| 112,825 |
Professional fees |
|
| 41,632 |
Other |
|
| 27,021 |
Total expenses |
|
| 1,449,163 |
Less: Expense reductions |
|
| (3,336) |
Net expenses |
|
| 1,445,827 |
Net investment income |
|
| 6,538,686 |
Net realized and unrealized gains or losses on investments |
|
|
|
Net realized gains on: |
|
|
|
Securities |
|
| 1,092,248 |
Foreign currency related transactions |
|
| 296,048 |
Written options |
|
| 1,864,032 |
Net realized gains on investments |
|
| 3,252,328 |
Net change in unrealized gains or losses on investments |
|
| (24,268,006) |
Net realized and unrealized gains or losses on investments |
|
| (21,015,678) |
Net decrease in net assets resulting from operations |
| $ | (14,476,992) |
See Notes to Financial Statements
16
STATEMENTS OF CHANGES IN NET ASSETS
|
|
| Six Months Ended |
|
| Year Ended |
|
| Year Ended |
Operations |
|
|
|
|
|
|
|
|
|
Net investment income |
| $ | 6,538,686 |
| $ | 5,748,086 |
| $ | 9,640,958 |
Net realized gains on investments |
|
| 3,252,328 |
|
| 3,190,155 |
|
| 10,326,792 |
Net change in unrealized gains or losses on investments |
|
| (24,268,006) |
|
| 13,165,671 |
|
| 11,995,192 |
Net increase (decrease) in net assets resulting from operations |
|
| (14,476,992) |
|
| 22,103,912 |
|
| 31,962,942 |
Distributions to shareholders from |
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (10,123,516) |
|
| (5,442,345) |
|
| (12,522,220) |
Net realized gains |
|
| 0 |
|
| (4,674,302) |
|
| (7,586,232) |
Total distributions to shareholders |
|
| (10,123,516) |
|
| (10,116,647) |
|
| (20,108,452) |
Capital share transactions |
|
|
|
|
|
|
|
|
|
Net asset value of common shares issued under the Automatic Dividend Reinvestment Plan |
|
| 0 |
|
| 504,271 |
|
| 1,926,784 |
Total increase (decrease) in net assets |
|
| (24,600,508) |
|
| 12,491,536 |
|
| 13,781,274 |
Net assets |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 262,091,752 |
|
| 249,600,216 |
|
| 235,818,942 |
End of period |
| $ | 237,491,244 |
| $ | 262,091,752 |
| $ | 249,600,216 |
Overdistributed net investment income |
| $ | (6,423,611) |
| $ | (2,838,781) |
| $ | (3,613,243) |
(a) | For the six months ended October 31, 2007. The Fund changed its fiscal year end from April 30 to October 31, effective October 31, 2007. |
See Notes to Financial Statements
17
NOTES TO FINANCIAL STATEMENTS (unaudited)
1. ORGANIZATION
Evergreen International Balanced Income Fund (the “Fund”) was organized as a statutory trust under the laws of the state of Delaware on August 16, 2005 and is registered as a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. The primary investment objective of the Fund is to provide a high level of income.
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.
Portfolio debt securities acquired with more than 60 days to maturity are fair valued using matrix pricing methods determined by an independent pricing service which takes into consideration such factors as similar security prices, yields, maturities, liquidity and ratings. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of market value obtained from yield data relating to investments or securities with similar characteristics.
Short-term securities with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.
Investments in open-end 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.
18
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
b. 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.
c. Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on foreign currency related transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably.
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, including accrued interest. 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. Options
The Fund may write covered put or call options. When a Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options, which expire unexercised, are recognized as realized gains from investments on the expiration date. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.
19
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment which is subsequently adjusted to the current market value of the option. Premiums paid for purchased options which expire are recognized as realized losses from investments on the expiration date. Premiums paid for purchased options which are exercised or closed are added to the amount paid or offset against the proceeds on the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.
f. 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. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date or in the case of some foreign securities, on the date 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.
g. Federal and other 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.
The Fund has adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”) which prescribes a minimum threshold for financial statement recognition of the benefit 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.
h. 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.
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
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 of 0.95% of the Fund’s average daily total assets. Total assets consist of the net assets of the Fund plus borrowings, reverse repurchase agreements, dollar rolls or the issuance of debt securities.
First International Advisors, Inc. d/b/a Evergreen International Advisors, an indirect, wholly-owned subsidiary of Wachovia, is an investment sub-advisor to the Fund and is paid by EIMC for its services to the Fund.
20
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Analytic Investors, Inc. is the investment sub-advisor managing the Fund’s option strategy and is paid by EIMC for its services to the Fund.
The Fund may invest in money market funds which are advised by EIMC. Income earned on these investments is included in income from affiliate on the Statement of Operations.
Effective January 1, 2008, EIMC replaced Evergreen Investment Services, Inc. (“EIS”), an indirect, wholly-owned subsidiary of Wachovia, as the administrator to the Fund upon the assignment of the Fund’s Administrative Services Agreement from EIS to EIMC. There were no changes to the services being provided or fees being paid by the Fund. The administrator provides the Fund with facilities, equipment and personnel and is paid an annual administrative fee of 0.05% of the Fund’s average daily total assets.
4. CAPITAL SHARE TRANSACTIONS
The Fund has authorized an unlimited number of common shares with no par value. For the six months ended April 30, 2008, the Fund issued no new shares. For the six month period ended October 31, 2007 and the year ended April 30, 2007, the Fund issued 23,792 and 93,346 common shares, respectively.
5. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were $102,637,862 and $99,652,904, respectively, for the six months ended April 30, 2008.
During the six months ended April 30, 2008, the Fund loaned securities to certain brokers. At April 30, 2008, the value of securities on loan and the total value of collateral received for securities loaned amounted to $32,873,403 and $34,433,464, respectively. Of the total value of the collateral received for securities on loan, $616,385 represents the market value of U.S. government agency obligations received as non-cash collateral.
During the six months ended April 30, 2008, the Fund had written option activities as follows:
|
| Number of |
| Premiums | ||
Options outstanding at October 31, 2007 |
| 1,324 |
|
| $ | 1,077,080 |
Options written |
| 8,937 |
|
|
| 7,483,724 |
Options expired |
| (7,377) |
|
|
| (4,942,256) |
Options closed |
| (1,737) |
|
|
| (2,014,653) |
Options outstanding at April 30, 2008 |
| 1,147 |
|
| $ | 1,603,895 |
21
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Open call options written at April 30, 2008 were as follows:
Expiration |
| Index |
| Number of |
| Strike |
|
| Market |
|
| Premiums | |||
05/15/2008 |
| S&P/TSX 60 Index |
| 202 |
| 840 | USD |
| $ | 133,370 |
| $ | 281,673 | ||
05/16/2008 |
| AMEX Natural Gas Index |
| 50 |
| 680 | USD |
|
| 41,500 |
|
| 91,794 | ||
05/16/2008 |
| CAC 40 Index |
| 173 |
| 4,900 | EUR |
|
| 320,457 |
|
| 295,192 | ||
05/16/2008 |
| S&P 400 MidCap Index |
| 40 |
| 820 | USD |
|
| 108,200 |
|
| 104,760 | ||
05/16/2008 |
| S&P 500 Index |
| 127 |
| 33,500 | USD |
|
| 391,917 |
|
| 411,857 | ||
05/17/2008 |
| Morgan Stanley Commodity Index |
| 35 |
| 950 | EUR |
|
| 39,900 |
|
| 100,361 | ||
05/17/2008 |
| Morgan Stanley Cyclical Index |
| 35 |
| 980 | EUR |
|
| 47,600 |
|
| 96,215 | ||
05/17/2008 |
| PHLX Utility Sector Index |
| 60 |
| 545 | USD |
|
| 18,000 |
|
| 32,820 | ||
05/17/2008 |
| PHLX/KBW Bank Index |
| 425 |
| 78 | USD |
|
| 248,625 |
|
| 189,223 | ||
On April 30, 2008, the aggregate cost of securities for federal income tax purposes was $249,014,476. The gross unrealized appreciation and depreciation on securities based on tax cost was $23,800,717 and $5,933,850, respectively, with a net unrealized appreciation of $17,866,867.
6. EXPENSE REDUCTIONS
Through expense offset arrangements with the Fund’s custodian, a portion of fund expenses has been reduced.
7. DEFERRED TRUSTEES’ FEES
Each Trustee of the Fund may defer any or all compensation related to performance of his or her duties as a Trustee. 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.
8. REGULATORY MATTERS AND LEGAL PROCEEDINGS
Pursuant to an administrative order issued by the SEC on September 19, 2007, EIMC, EIS, Evergreen Service Company, LLC (collectively, the “Evergreen Entities”), Wachovia Securities, LLC and the SEC have entered into an agreement settling allegations of (i) improper short-term trading arrangements in effect prior to May 2003 involving former officers and employees of EIMC and certain broker-dealers, (ii) insufficient systems for monitoring exchanges and enforcing exchange limitations as stated in certain funds’ prospectuses, and (iii) inadequate e-mail retention practices. Under the settlement, the Evergreen Entities were censured and have paid approximately $32 million in disgorgement and penalties. This amount, along with a fine assessed by the SEC against
22
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Wachovia Securities, LLC will be distributed pursuant to a plan to be developed by an independent distribution consultant and approved by the SEC. The Evergreen Entities neither admitted nor denied the allegations and findings set forth in its settlement with the SEC.
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 EIMC believes that none of the matters discussed above 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.
9. NEW ACCOUNTING PRONOUNCEMENTS
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.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”), an amendment of FASB Statement No. 133. FAS 161 requires enhanced disclosures about (a) how and why a fund uses derivative instruments, (b) how derivative instruments and hedging activities are accounted for, and (c) how derivative instruments and related hedging activities affect a fund’s financial position, financial performance, and cash flows. Management of the Fund does not believe the adoption of FAS 161 will materially impact the financial statement amounts, but will require additional disclosures. This will include qualitative and quantitative disclosures on derivative positions existing at period end and the effect of using
23
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
derivatives during the reporting period. FAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.
10. SUBSEQUENT DISTRIBUTIONS
The Fund declared the following distributions to common shareholders:
Declaration |
| Record |
| Payable |
| Investment |
April 18, 2008 |
| May 14, 2008 |
| June 2, 2008 |
| $0.1458 |
May 16, 2008 |
| June 16, 2008 |
| July 1, 2008 |
| $0.1458 |
June 12, 2008 |
| July 15, 2008 |
| August 1, 2008 |
| $0.1458 |
These distributions are not reflected in the accompanying financial statements.
24
AUTOMATIC DIVIDEND REINVESTMENT PLAN (unaudited)
All common shareholders are eligible to participate in the Automatic Dividend Reinvestment Plan (“the Plan”). Pursuant to the Plan, unless a common shareholder is ineligible or elects otherwise, all cash dividends and capital gains distributions are automatically reinvested by Computershare Trust Company, N.A., as agent for shareholders in administering the Plan (“Plan Agent”), in additional common shares of the Fund. Whenever the Fund declares an ordinary income dividend or a capital gain dividend (collectively referred to as “dividends”) payable either in shares or in cash, nonparticipants in the Plan will receive cash, and participants in the Plan will receive the equivalent in shares of common shares. The shares are acquired by the Plan Agent for the participant’s account, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“newly issued common shares”) or (ii) by purchase of outstanding common shares on the open market (open market purchases) on the New York Stock Exchange or elsewhere. If, on the payment date for any dividend or distribution, the net asset value per share of the common shares is equal to or less than the market price per common share plus estimated brokerage commissions (“market premium”), the Plan Agent will invest the amount of such dividend or distribution in newly issued shares on behalf of the participant. The number of newly issued common shares to be credited to the participant’s account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price per share on the date of issuance may not exceed 5%. If on the dividend payment date the net asset value per share is greater than the market value or market premium (“market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participant in open-market purchases. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43010, Providence, Rhode Island 02940-3010 or by calling 1-800-730-6001.
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TRUSTEES AND OFFICERS
TRUSTEES1 |
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Charles A. Austin III |
| 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 |
| Chairman and President, Oldways Preservation and Exchange Trust (education); Trustee, Chairman of the Finance Committee, Member of the Executive Committee, and Former Treasurer, Cambridge College |
Dr. Leroy Keith, Jr. |
| Managing Director, Almanac Capital Management (commodities firm); Trustee, Phoenix Fund Complex; Director, Diverspack Co. (packaging company); Former Partner, Stonington Partners, Inc. (private equity fund); Former Director, Obagi Medical Products Co.; Former Director, Lincoln Educational Services |
Carol A. Kosel1 |
| Former Consultant to the Evergreen Boards of Trustees; Former Vice President and Senior Vice President, Evergreen Investments, Inc.; Former Treasurer, Evergreen Funds; Former Treasurer, Vestaur Securities Fund |
Gerald M. McDonnell |
| Former Manager of Commercial Operations, CMC Steel (steel producer) |
Patricia B. Norris |
| 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 |
| 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 |
| President, Richardson, Runden LLC (executive recruitment advisory services); Director, J&M Cumming Paper Co. (paper merchandising); Trustee, NDI Technologies, LLP (communications); Former Consultant, AESC (The Association of Executive Search Consultants) |
Dr. Russell A. Salton III |
| President/CEO, AccessOne MedCard, Inc. |
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TRUSTEES AND OFFICERS continued
Michael S. Scofield |
| Retired Attorney, Law Offices of Michael S. Scofield; Former Director and Chairman, Branded Media Corporation (multi-media branding company) |
Richard J. Shima |
| 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 |
| Member and Former President, North Carolina Securities Traders Association; Member, Financial Analysts Society |
OFFICERS |
| 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. |
Kasey Phillips4 |
| Principal occupations: Senior Vice President, Evergreen Investment Management Company, LLC; Former Vice President, Evergreen Investment Services, Inc.; Former Assistant Vice President, Evergreen Investment Services, Inc. |
Michael H. Koonce4 |
| 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 |
| 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 | The Board of Trustees is classified into three classes of which one class is elected annually. Each Trustee, except Mses. Kosel and Norris, serves a three-year term concurrent with the class from which the Trustee is elected. Each Trustee, except Ms. Kosel, oversaw 94 Evergreen funds as of December 31, 2007. Ms Kosel became a Trustee on January 1, 2008. Correspondence for each Trustee may be sent to Evergreen Board of Trustees, P.O. Box 20083, Charlotte, NC 28202. |
2 | 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. |
3 | The address of the Officer is 401 S. Tryon Street, 20th Floor, Charlotte, NC 28288. |
4 | The address of the Officer is 200 Berkeley Street, Boston, MA 02116. |
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575077rv2 06/2008
Item 2 - Code of Ethics
Not required for this filing.
Item 3 - Audit Committee Financial Expert
Not applicable at this time.
Items 4 – Principal Accountant Fees and Services
Not required for this filing.
Items 5 – Audit Committee of Listed Registrants
Not required for this filing.
Item 6 – Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not required for this filing.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies.
Not required for this filing.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
If applicable/not applicable at this time.
Item 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees that have been implemented since the Registrant last provided disclosure in response to the requirements of this Item.
Item 11 - Controls and Procedures
(a) | The Registrant’s principal executive officer and principal financial officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported timely. |
(b) | There has been no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonable likely to affect, the Registrant’s internal control over financial reporting. |
Item 12 - Exhibits
File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(a) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. |
(b)(1) | Separate certifications for the Registrant’s principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as EX99.CERT. |
(b)(2) | Separate certifications for the Registrant’s principal executive officer and principal financial officer, as required by Section 1350 of Title 18 of United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached as EX99.906CERT. The certifications furnished pursuant to this paragraph are not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject |
to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Evergreen International Balanced Income Fund
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| Dennis H. Ferro |
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Date: June 30, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
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| Dennis H. Ferro |
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Date: June 30, 2008
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| Kasey Phillips |
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Date: June 30, 2008