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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21331

Evergreen Multi-Sector 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:

Registrant is making a quarterly filing for one of its series, Evergreen Multi-Sector Income Fund, for the quarter ended July 31, 2007. This one series has an October 31 fiscal year end.

Date of reporting period: July 31, 2007

 

 

 

Item 1 – Schedule of Investments

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS

July 31, 2007 (unaudited)

 

 

Principal
Amount

 

Value

 

AGENCY MORTGAGE-BACKED COLLATERALIZED MORTGAGE OBLIGATIONS    10.4%

 

 

 

 

FIXED-RATE    0.4%

 

 

 

 

 

 

 

FNMA:

 

 

 

 

 

 

 

Ser. 2001-25, Class Z, 6.00%, 06/25/2031

 

$

1,640,276

 

$

1,654,497

 

Ser. 2001-51, Class P, 6.00%, 08/25/2030

 

 

1,078,861

 

 

1,080,871

 

 

 

 

 

 

 

2,735,368

 

FLOATING-RATE    10.0%

 

 

 

 

 

 

 

FHLMC:

 

 

 

 

 

 

 

Ser. 0196, Class A, 6.18%, 12/15/2021

 

 

199,481

 

 

200,223

 

Ser. 1500, Class FD, 4.88%, 05/15/2023

 

 

5,376,018

 

 

5,204,846

 

Ser. 2182, Class FE, 5.87%, 05/15/2028

 

 

833,542

 

 

842,173

 

Ser. 2247, Class FC, 5.92%, 08/15/2030

 

 

953,292

 

 

962,710

 

Ser. 2390, Class FD, 5.77%, 12/15/2031

 

 

188,717

 

 

190,545

 

Ser. 2411, Class F, 5.87%, 02/15/2032

 

 

226,958

 

 

229,233

 

Ser. 2567, Class FH, 5.72%, 02/15/2033

 

 

452,531

 

 

453,624

 

Ser. T-66, Class 2A1, 7.85%, 01/25/2036

 

 

9,035,027

 

 

9,444,310

 

Ser. T-67, Class 1A1C, 7.97%, 03/25/2036

 

 

26,858,197

 

 

28,600,034

 

Ser. T-67, Class 2A1C, 7.90%, 03/25/2036

 

 

1,847,572

 

 

1,956,651

 

FNMA:

 

 

 

 

 

 

 

Ser. 1996-46, Class FA, 5.84%, 08/25/2021

 

 

118,928

 

 

120,750

 

Ser. 2000-45, Class F, 5.77%, 12/25/2030

 

 

946,686

 

 

951,798

 

Ser. 2001-24, Class FC, 5.92%, 04/25/2031

 

 

350,216

 

 

352,202

 

Ser. 2001-35, Class F, 5.92%, 07/25/2031

 

 

78,394

 

 

79,838

 

Ser. 2001-37, Class F, 5.82%, 08/25/2031

 

 

338,354

 

 

339,867

 

Ser. 2001-57, Class F, 5.82%, 06/25/2031

 

 

78,925

 

 

80,129

 

Ser. 2001-62, Class FC, 5.97%, 11/25/2031

 

 

1,037,462

 

 

1,057,675

 

Ser. 2002-77, Class F, 5.92%, 12/25/2032

 

 

5,500,226

 

 

5,620,406

 

Ser. 2002-77, Class FH, 5.72%, 12/18/2032

 

 

444,296

 

 

448,404

 

Ser. 2002-77, Class FV, 5.82%, 12/18/2032

 

 

1,480,969

 

 

1,501,675

 

Ser. 2002-95, Class FK, 5.82%, 01/25/2033

 

 

4,770,023

 

 

4,792,776

 

Ser. 2002-97, Class FR, 5.87%, 01/25/2033

 

 

170,927

 

 

173,986

 

Ser. 2003-W8, Class 3F2, 5.67%, 05/25/2042

 

 

799,078

 

 

802,753

 

Ser. 2005-W4, Class 3A, 6.26%, 06/25/2035

 

 

7,217,914

 

 

7,358,880

 

Ser. G91-16, Class F, 5.79%, 06/25/2021

 

 

135,846

 

 

137,696

 

Ser. G92-17, Class F, 6.39%, 03/25/2022

 

 

216,914

 

 

222,704

 

Ser. G92-53, Class FA, 6.09%, 09/25/2022

 

 

2,102,713

 

 

2,138,403

 

Ser. G93-11, Class FB, 6.19%, 12/25/2008

 

 

59,811

 

 

59,890

 

GNMA:

 

 

 

 

 

 

 

Ser. 1997-13, Class F, 5.875%, 09/16/2027

 

 

1,981,385

 

 

1,994,357

 

Ser. 2001-61, Class FA, 5.82%, 09/20/2030

 

 

175,893

 

 

177,131

 

 

 

 

 

 

 

76,495,669

 

Total Agency Mortgage-Backed Collateralized Mortgage Obligations    (cost $78,738,472)

 

 

79,231,037

 

AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES    27.9%

 

 

 

 

 

 

 

FIXED-RATE    3.4%

 

 

 

 

 

 

 

FHLMC:

 

 

 

 

 

 

 

6.50%, 06/01/2017

 

 

3,463,532

 

 

3,545,860

 

8.50%, 04/01/2015 - 07/01/2028

 

 

648,469

 

 

681,480

 

FHLMC 30 year, 6.50%, TBA #

 

 

2,230,000

 

 

2,250,906

 

FNMA:

 

 

 

 

 

 

 

6.00%, 04/01/2033

 

 

652,033

 

 

657,543

 

6.50%, 11/01/2032

 

 

265,911

 

 

271,756

 

7.00%, 09/01/2031 - 08/01/2032

 

 

2,080,857

 

 

2,162,241

 

7.50%, 07/01/2017 - 07/01/2032

 

 

1,351,250

 

 

1,404,908

 

8.00%, 12/01/2024 - 06/01/2030

 

 

320,798

 

 

337,995

 

12.00%, 01/01/2016

 

 

64,833

 

 

72,003

 

FNMA 30 year, 6.50%, TBA #

 

 

10,305,000

 

 

10,403,217

 

 

 

 

1

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

Principal
Amount

Value

 

AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES     continued

 

 

 

 

 

 

FIXED-RATE     continued

 

 

 

 

 

 

GNMA:

 

 

 

 

 

 

6.50%, 06/15/2028

 

$

136,865

  

$

139,867

 

7.25%, 07/15/2017 - 05/15/2018

 

 

1,095,674

  

 

1,135,275

 

9.50%, 12/15/2009 - 04/15/2011

 

 

2,541,772

 

2,807,789

 

 

 

 

 

 

25,870,840

 

FLOATING-RATE    24.5%

 

 

 

 

 

 

FHLB:

 

 

 

 

 

 

5.89%, 02/01/2037 - 05/01/2037

 

 

19,644,957

 

19,521,917

 

6.16%, 07/01/2033

 

 

1,088,454

 

1,102,703

 

7.01%, 07/01/2034

 

 

877,821

 

888,350

 

7.42%, 11/01/2030

 

 

953,841

 

976,483

 

FHLMC:

 

 

 

 

 

 

5.01%, 12/01/2026

 

 

153,531

 

156,896

 

5.06%, 07/01/2035 - 10/01/2035 ##

 

 

5,777,128

 

5,760,318

 

5.30%, 12/01/2033 ##

 

 

7,453,485

 

7,698,779

 

5.48%, 06/01/2030

 

 

461,686

 

459,031

 

5.54%, 10/01/2017

 

 

7,123

 

7,294

 

5.68%, 10/01/2030

 

 

31,275

 

31,361

 

5.74%, 06/01/2028

 

 

159,035

 

159,892

 

5.87%, 12/01/2036

 

 

5,811,500

 

5,806,560

 

6.14%, 06/01/2031

 

 

710,157

 

732,129

 

6.16%, 06/01/2018

 

 

82,786

 

84,668

 

6.20%, 03/01/2018 - 07/01/2019

 

 

302,166

 

309,955

 

6.22%, 10/01/2033

 

 

174,077

 

179,926

 

6.27%, 08/01/2017

 

 

31,547

 

32,369

 

6.30%, 05/01/2025

 

 

89,930

 

92,670

 

6.32%, 05/01/2019

 

 

7,866

 

8,154

 

6.34%, 10/01/2022

 

 

159,685

 

163,693

 

6.50%, 02/01/2016

 

 

50,814

 

51,175

 

6.57%, 01/01/2030

 

 

283,609

 

293,740

 

6.59%, 07/01/2030

 

 

170,008

 

176,252

 

6.62%, 06/01/2035

 

 

189,931

 

196,349

 

6.625%, 02/01/2016

 

 

35,726

 

35,559

 

6.69%, 09/01/2032

 

 

6,047,117

 

6,202,649

 

6.85%, 06/01/2031

 

 

869,710

 

891,610

 

6.875%, 01/01/2027

 

 

300,927

 

312,615

 

6.94%, 06/01/2023

 

 

363,894

 

373,847

 

7.06%, 07/01/2032

 

 

1,380,501

 

1,393,223

 

7.07%, 01/01/2018

 

 

114,422

 

115,316

 

7.12%, 11/01/2023

 

 

246,111

 

249,327

 

7.15%, 12/01/2022

 

 

71,647

 

72,682

 

7.20%, 10/01/2024

 

 

438,715

 

442,260

 

7.23%, 08/01/2032

 

 

1,699,897

 

1,714,992

 

7.28%, 03/01/2032

 

 

3,097,382

 

3,117,605

 

7.29%, 03/01/2024

 

 

342,866

 

354,733

 

7.30%, 06/01/2033

 

 

979,712

 

989,078

 

7.32%, 09/01/2032

 

 

1,045,348

 

1,085,573

 

7.35%, 10/01/2033

 

 

398,973

 

414,521

 

7.375%, 10/01/2024

 

 

52,726

 

54,745

 

7.40%, 10/01/2030

 

 

694,986

 

722,041

 

7.42%, 03/01/2031

 

 

73,194

 

76,248

 

7.54%, 08/01/2030

 

 

759,666

 

790,957

 

8.50%, 03/01/2030

 

 

149,542

 

159,976

 

 

 

2

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

Principal
Amount

 

Value

 

AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES    continued

 

 

 

 

 

 

FLOATING-RATE    continued

 

 

 

 

 

 

FNMA:

 

 

 

 

 

 

4.51%, 06/01/2033

 

$

1,420,414

  

$

1,427,502

 

4.53%, 08/01/2020

 

 

1,844,232

 

1,817,602

 

4.89%, 10/01/2029

 

 

178,427

 

181,138

 

4.98%, 03/01/2033

 

 

171,800

 

170,571

 

4.99%, 12/01/2031

 

 

366,956

 

381,535

 

5.07%, 02/01/2037

 

 

937,353

 

941,197

 

5.12%, 03/01/2034

 

 

1,517,505

 

1,570,936

 

5.47%, 03/01/2018

 

 

813,209

 

817,893

 

5.52%, 01/01/2038

 

 

6,958,136

 

7,024,896

 

5.54%, 04/01/2017 - 03/01/2034

 

 

9,126,141

 

9,193,059

 

5.56%, 02/01/2035

 

 

2,045,179

 

2,074,179

 

5.60%, 03/01/2035

 

 

6,043,782

 

6,123,137

 

5.62%, 04/01/2034

 

 

1,572,026

 

1,592,085

 

5.63%, 02/01/2035

 

 

1,619,288

 

1,637,991

 

5.75%, 12/01/2016 - 08/01/2027

 

 

472,626

 

482,131

 

5.87%, 01/01/2037

 

 

11,920,909

 

11,951,188

 

5.99%, 12/01/2009

 

 

3,976,293

 

4,006,592

 

6.00%, 01/01/2017

 

 

101,817

 

103,227

 

6.04%, 04/01/2031

 

 

1,045,879

 

1,072,768

 

6.07%, 01/01/2034

 

 

1,116,790

 

1,159,239

 

6.11%, 12/01/2013

 

 

641,384

 

644,124

 

6.19%, 06/01/2031

 

 

291,081

 

300,355

 

6.23%, 12/01/2034

 

 

2,160,807

 

2,218,306

 

6.27%, 12/01/2036 - 09/01/2041

 

 

1,592,644

 

1,608,954

 

6.31%, 04/01/2025

 

 

320,347

 

329,509

 

6.35%, 01/01/2033

 

 

1,540,020

 

1,557,669

 

6.37%, 08/01/2028

 

 

84,365

 

86,737

 

6.42%, 06/01/2040 - 12/01/2040

 

 

4,682,573

 

4,806,490

 

6.54%, 04/01/2034

 

 

3,296,053

 

3,403,669

 

6.57%, 04/01/2028

 

 

431,672

 

435,445

 

6.58%, 02/01/2035

 

 

2,425,244

 

2,473,748

 

6.66%, 01/01/2030

 

 

87,172

 

89,188

 

6.73%, 11/01/2035

 

 

1,947,746

 

2,020,747

 

6.75%, 05/01/2021 - 11/01/2024

 

 

673,059

 

696,247

 

6.78%, 12/01/2022

 

 

24,891

 

25,580

 

6.82%, 01/01/2015 - 10/01/2034

 

 

493,003

 

507,269

 

6.83%, 12/01/2020

 

 

165,021

 

169,366

 

6.875%, 04/01/2019

 

 

81,357

 

82,967

 

6.94%, 09/01/2024 - 10/01/2032

 

 

586,386

 

606,154

 

7.03%, 10/01/2035 - 12/01/2035

 

 

11,590,676

 

12,016,263

 

7.05%, 12/01/2031

 

 

202,492

 

204,385

 

7.09%, 06/01/2024

 

 

316,717

 

327,520

 

7.125%, 12/01/2026

 

 

164,701

 

170,676

 

7.15%, 07/01/2032

 

 

1,138,884

 

1,186,136

 

7.18%, 09/01/2024 - 05/01/2034

 

 

1,861,910

 

1,911,858

 

7.20%, 06/01/2029 - 04/01/2034

 

 

2,154,598

 

2,238,629

 

7.21%, 02/01/2035

 

 

706,483

 

731,542

 

7.23%, 03/01/2032

 

 

450,047

 

468,426

 

7.24%, 06/01/2037

 

 

527,229

 

534,178

 

7.25%, 12/01/2023

 

 

81,228

 

84,343

 

7.27%, 04/01/2024 - 12/01/2029

 

 

336,276

 

349,149

 

7.32%, 01/01/2026 - 07/01/2026

 

 

568,138

 

588,430

 

7.33%, 01/01/2028 - 02/01/2038

 

 

1,630,202

 

1,698,553

 

7.35%, 05/01/2030

 

 

265,818

 

277,249

 

7.37%, 08/01/2036

8,354,789

8,655,144

 

 

 

3

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

 

Principal
Amount

 

 

Value

 

AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES    continued

 

 

 

 

 

 

 

FLOATING-RATE    continued

 

 

 

 

 

 

 

FNMA:

 

 

 

 

 

 

 

7.44%, 10/01/2032

 

$

3,349,086

 

$

3,485,796

 

7.47%, 08/01/2030

 

 

455,850

 

 

475,465

 

7.50%, 09/01/2027

 

 

360,983

 

 

377,119

 

7.54%, 01/01/2028

 

 

1,058,904

 

 

1,106,534

 

7.66%, 12/01/2032

 

 

1,749,193

 

 

1,778,106

 

7.70%, 09/01/2032

 

 

218,960

 

 

230,179

 

7.76%, 07/01/2033

 

 

324,260

 

 

343,719

 

7.89%, 07/01/2030

 

 

359,660

 

 

366,216

 

7.90%, 04/01/2033

 

 

337,764

 

 

345,050

 

GNMA:

 

 

 

 

 

 

 

5.50%, 09/20/2030

 

 

428,155

 

 

435,156

 

6.00%, 11/20/2030 - 10/20/2031

 

 

1,518,720

 

 

1,555,068

 

6.125%, 10/20/2029 - 11/20/2030

 

 

2,641,817

 

 

2,694,846

 

6.25%, 02/20/2029

 

 

839,987

 

 

853,570

 

6.375%, 01/20/2027 - 03/20/2028

 

 

480,597

 

 

493,923

 

6.50%, 02/20/2031

 

 

591,642

 

 

602,274

 

 

 

 

 

 

 

186,837,113

 

Total Agency Mortgage-Backed Pass Through Securities    (cost $212,935,072)

 

 

 

 

 

212,707,953

 

AGENCY REPERFORMING MORTGAGE-BACKED PASS THROUGH SECURITIES    0.6%

 

 

 

 

 

 

 

FNMA:

 

 

 

 

 

 

 

Ser. 2001-T10, Class A2, 7.50%, 12/25/2041

 

 

435,435

 

 

457,556

 

Ser. 2002-T6, Class A4, FRN, 6.21%, 03/25/2041

 

 

1,633,069

 

 

1,653,613

 

Ser. 2003-W02, Class 2A8, 5.67%, 07/25/2042

 

 

521,113

 

 

524,453

 

Ser. 2004-T03, Class 2A, 6.11%, 08/25/2043

 

 

1,670,713

 

 

1,734,150

 

Total Agency Reperforming Mortgage-Backed Pass Through Securities    (cost $4,386,282)

 

 

 

 

 

4,369,772

 

CORPORATE BONDS    66.7%

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    16.6%

 

 

 

 

 

 

 

Auto Components    1.2%

 

 

 

 

 

 

 

ArvinMeritor, Inc., 6.80%, 02/15/2009

 

 

236,000

 

 

229,510

 

Goodyear Tire & Rubber Co.:

 

 

 

 

 

 

 

9.00%, 07/01/2015

 

 

1,880,000

 

 

1,936,400

 

11.25%, 03/01/2011

 

 

875,000

 

 

942,812

 

Metaldyne Corp., 11.00%, 06/15/2012

 

 

3,326,000

 

 

3,118,125

 

Tenneco, Inc.:

 

 

 

 

 

 

 

8.625%, 11/15/2014

 

 

2,045,000

 

 

2,055,225

 

10.25%, 07/15/2013

 

 

550,000

 

 

588,500

 

 

 

 

 

 

 

8,870,572

 

Automobiles    0.7%

 

 

 

 

 

 

 

DaimlerChrylser North America Holding Corp., 4.875%, 06/15/2010

 

 

1,500,000

 

 

1,470,399

 

Ford Motor Co., 7.45%, 07/16/2031

 

 

2,390,000

 

 

1,852,250

 

General Motors Corp., 8.375%, 07/15/2033

 

 

2,200,000

 

 

1,820,500

 

 

 

 

 

 

 

5,143,149

 

Diversified Consumer Services    0.6%

 

 

 

 

 

 

 

Carriage Services, Inc., 7.875%, 01/15/2015

 

 

850,000

 

 

837,250

 

Education Management, LLC:

 

 

 

 

 

 

 

8.75%, 06/01/2014

 

 

1,660,000

 

 

1,660,000

 

10.25%, 06/01/2016

 

 

1,775,000

 

 

1,775,000

 

Service Corporation International, 6.75%, 04/01/2015 144A

 

 

695,000

 

 

642,875

 

 

 

 

 

 

 

4,915,125

 

Hotels, Restaurants & Leisure    4.2%

 

 

 

 

 

 

 

Fontainebleau Las Vegas Holdings, LLC, 10.25%, 06/15/2015 144A

 

 

2,311,000

 

 

2,004,793

 

Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/2010

 

 

4,190,000

 

 

4,462,350

 

Isle of Capri Casinos, Inc., 7.00%, 03/01/2014

 

 

5,380,000

 

 

4,875,625

 

Mandalay Resort Group, Ser. B, 10.25%, 08/01/2007

 

 

1,310,000

 

 

1,310,000

 

 

4

 

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

 

Principal Amount

 

 

Value

 

CORPORATE BONDS    continued

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    continued

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure    continued

 

 

 

 

 

 

 

MGM MIRAGE:

 

 

 

 

 

 

 

5.875%, 02/27/2014

 

$

990,000

 

$

871,200

 

7.50%, 06/01/2016

 

 

1,560,000

 

 

1,458,600

 

Outback Steakhouse, Inc., 10.00%, 06/15/2015 144A

 

 

540,000

 

 

472,500

 

Pokagon Gaming Authority, 10.375%, 06/15/2014 144A

 

 

1,710,000

 

 

1,838,250

 

Seneca Gaming Corp., 7.25%, 05/01/2012

 

 

855,000

 

 

846,450

 

Shingle Springs Tribal Gaming Authority, 9.375%, 06/15/2015 144A

 

 

2,200,000

 

 

2,068,000

 

Six Flags, Inc.:

 

 

 

 

 

 

 

8.875%, 02/01/2010

 

 

410,000

 

 

363,875

 

9.625%, 06/01/2014

 

 

3,135,000

 

 

2,547,187

 

Trump Entertainment Resorts, Inc., 8.50%, 06/01/2015

 

 

3,801,000

 

 

3,221,347

 

Universal City Development Partners, Ltd., 11.75%, 04/01/2010

 

 

5,250,000

 

 

5,525,625

 

 

 

 

 

 

 

31,865,802

 

Household Durables    0.9%

 

 

 

 

 

 

 

Hovnanian Enterprises, Inc.:

 

 

 

 

 

 

 

6.00%, 01/15/2010

 

 

435,000

 

 

387,150

 

6.50%, 01/15/2014

 

 

1,613,000

 

 

1,266,205

 

Libbey, Inc., FRN, 12.38%, 06/01/2011

 

 

2,620,000

 

 

2,842,700

 

Standard Pacific Corp., 9.25%, 04/15/2012

 

 

2,450,000

 

 

2,070,250

 

 

 

 

 

 

 

6,566,305

 

Media    6.5%

 

 

 

 

 

 

 

AMC Entertainment, Inc., Ser. B, 8.625%, 08/15/2012

 

 

2,040,000

 

 

2,096,100

 

Cablevision Systems Corp., Ser. B, 8.00%, 04/15/2012

 

 

2,425,000

 

 

2,273,438

 

CCH I, LLC, 11.00%, 10/01/2015, 11.00%, 10/01/2015

 

 

1,100,000

 

 

1,102,750

 

CSC Holdings, Inc., 7.625%, 04/01/2011

 

 

30,000

 

 

28,875

 

Dex Media East, LLC:

 

 

 

 

 

 

 

9.875%, 11/15/2009

 

 

5,500,000

 

 

5,616,875

 

12.125%, 11/15/2012

 

 

3,000,000

 

 

3,206,250

 

Lamar Media Corp.:

 

 

 

 

 

 

 

6.625%, 08/15/2015

 

 

1,480,000

 

 

1,354,200

 

Ser. B, 6.625%, 08/15/2015

 

 

2,770,000

 

 

2,534,550

 

Mediacom Broadband, LLC, 8.50%, 10/15/2015 144A

 

 

340,000

 

 

326,400

 

Mediacom Communications Corp., 9.50%, 01/15/2013

 

 

8,280,000

 

 

8,217,900

 

Paxson Communications Corp., FRN, 11.61%, 01/15/2013 144A

 

 

4,245,000

 

 

4,298,062

 

PRIMEDIA, Inc., 8.875%, 05/15/2011

 

 

2,360,000

 

 

2,433,750

 

R.H. Donnelley Corp., 10.875%, 12/15/2012

 

 

5,000,000

 

 

5,287,500

 

Sinclair Broadcast Group, Inc., 8.00%, 03/15/2012

 

 

1,327,000

 

 

1,333,635

 

Sirius Satellite Radio, Inc., 9.625%, 08/01/2013

 

 

2,725,000

 

 

2,616,000

 

Visant Corp., 7.625%, 10/01/2012

 

 

3,035,000

 

 

2,989,475

 

XM Satellite Radio Holdings, Inc., 9.75%, 05/01/2014

 

 

1,300,000

 

 

1,267,500

 

Young Broadcasting, Inc., 8.75%, 01/15/2014

 

 

2,891,000

 

 

2,457,350

 

 

 

 

 

 

 

49,440,610

 

Multi-line Retail    0.4%

 

 

 

 

 

 

 

Neiman Marcus Group, Inc., 9.00%, 10/15/2015

 

 

2,765,000

 

 

2,896,338

 

Specialty Retail    0.7%

 

 

 

 

 

 

 

American Achievement Corp., 8.25%, 04/01/2012

 

 

1,845,000

 

 

1,780,425

 

Baker & Taylor, Inc., 11.50%, 07/01/2013 144A

 

 

730,000

 

 

740,950

 

Michaels Stores, Inc.:

 

 

 

 

 

 

 

10.00%, 11/01/2014 144A

 

 

2,200,000

 

 

2,145,000

 

11.375%, 11/01/2016 144A

 

 

815,000

 

 

790,550

 

Payless ShoeSource, Inc., 8.25%, 08/01/2013

 

 

315,000

 

 

307,125

 

 

 

 

 

 

 

5,764,050

 

 

 

5

 

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

 

Principal
Amount

 

 

Value

 

CORPORATE BONDS     continued

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY     continued

 

 

 

 

 

 

 

Textiles, Apparel & Luxury Goods     1.4%

 

 

 

 

 

 

 

Levi Strauss & Co., 12.25%, 12/15/2012

 

$

50,000

 

$

53,500

 

Norcross Safety Products, LLC, Ser. B, 9.875%, 08/15/2011

 

 

6,000,000

 

 

6,285,000

 

Oxford Industries, Inc., 8.875%, 06/01/2011

 

 

400,000

 

 

402,000

 

Unifi, Inc., 11.50%, 05/15/2014

 

 

823,000

 

 

794,195

 

Warnaco Group, Inc., 8.875%, 06/15/2013

 

 

3,010,000

 

 

3,175,550

 

 

 

 

 

 

 

10,710,245

 

CONSUMER STAPLES     2.6%

 

 

 

 

 

 

 

Food & Staples Retailing     0.7%

 

 

 

 

 

 

 

SUPERVALU, Inc., 7.50%, 11/15/2014

 

 

180,000

 

 

172,800

 

Wal Mart Stores, Inc., 4.55%, 05/01/2013

 

 

5,300,000

 

 

5,072,487

 

 

 

 

 

 

 

5,245,287

 

Food Products     1.0%

 

 

 

 

 

 

 

Del Monte Foods Co.:

 

 

 

 

 

 

 

6.75%, 02/15/2015

 

 

45,000

 

 

40,950

 

8.625%, 12/15/2012

 

 

5,608,000

 

 

5,664,080

 

Pilgrims Pride Corp., 8.375%, 05/01/2017

 

 

1,500,000

 

 

1,432,500

 

Smithfield Foods, Inc., 7.75%, 07/01/2017

 

 

545,000

 

 

528,650

 

 

 

 

 

 

 

7,666,180

 

Household Products     0.1%

 

 

 

 

 

 

 

Church & Dwight Co., 6.00%, 12/15/2012

 

 

640,000

 

 

598,400

 

Personal Products     0.8%

 

 

 

 

 

 

 

Central Garden & Pet Co., 9.125%, 02/01/2013

 

 

1,490,000

 

 

1,456,475

 

Playtex Products, Inc.:

 

 

 

 

 

 

 

8.00%, 03/01/2011

 

 

4,475,000

 

 

4,642,812

 

9.375%, 06/01/2011

 

 

40,000

 

 

41,100

 

 

 

 

 

 

 

6,140,387

 

ENERGY     6.5%

 

 

 

 

 

 

 

Energy Equipment & Services     1.5%

 

 

 

 

 

 

 

Bristow Group, Inc.:

 

 

 

 

 

 

 

6.125%, 06/15/2013

 

 

160,000

 

 

151,200

 

7.50%, 09/15/2017 144A

 

 

1,030,000

 

 

1,024,850

 

GulfMark Offshore, Inc., 7.75%, 07/15/2014

 

 

1,675,000

 

 

1,649,875

 

Hanover Compressor Co., 8.75%, 09/01/2011

 

 

3,000,000

 

 

3,105,000

 

Parker Drilling Co., 9.625%, 10/01/2013

 

 

5,141,000

 

 

5,494,444

 

 

 

 

 

 

 

11,425,369

 

Oil, Gas & Consumable Fuels     5.0%

 

 

 

 

 

 

 

Chesapeake Energy Corp., 7.75%, 01/15/2015

 

 

3,425,000

 

 

3,476,375

 

Cimarex Energy Co., 7.125%, 05/01/2017

 

 

530,000

 

 

503,500

 

Clayton Williams Energy, Inc., 7.75%, 08/01/2013

 

 

390,000

 

 

351,000

 

Delta Petroleum Corp., 7.00%, 04/01/2015

 

 

1,740,000

 

 

1,496,400

 

El Paso Corp., 7.00%, 06/15/2017

 

 

915,000

 

 

883,416

 

Encore Acquisition Co.:

 

 

 

 

 

 

 

6.00%, 07/15/2015

 

 

760,000

 

 

657,400

 

6.25%, 04/15/2014

 

 

660,000

 

 

577,500

 

Energy Partners, Ltd.:

 

 

 

 

 

 

 

9.75%, 04/15/2014 144A

 

 

653,000

 

 

623,615

 

FRN, 10.49%, 04/15/2013 144A

 

 

220,000

 

 

217,800

 

Exco Resources, Inc., 7.25%, 01/15/2011

 

 

1,380,000

 

 

1,376,550

 

Forest Oil Corp.:

 

 

 

 

 

 

 

7.25%, 06/15/2019 144A

 

 

1,145,000

 

 

1,073,438

 

7.75%, 05/01/2014

 

 

80,000

 

 

79,400

 

Frontier Oil Corp., 6.625%, 10/01/2011

 

 

500,000

 

 

487,500

 

 

 

6

 

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

 

Principal
Amount

 

 

Value

 

CORPORATE BONDS     continued

 

 

 

 

 

 

 

ENERGY     continued

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels     continued

 

 

 

 

 

 

 

Griffin Coal Mining Co., Ltd., 9.50%, 12/01/2016 144A

 

$

3,620,000

 

$

3,583,800

 

Mariner Energy, Inc., 8.00%, 05/15/2017

 

 

552,000

 

 

521,640

 

Overseas Shipholding Group, Inc., 8.25%, 03/15/2013

 

 

6,000,000

 

 

6,165,000

 

Plains Exploration & Production Co., 7.75%, 06/15/2015

 

 

880,000

 

 

827,200

 

Regency Energy Partners, LP, 8.375%, 12/15/2013 144A

 

 

1,300,000

 

 

1,345,500

 

Targa Resources, Inc., 8.50%, 11/01/2013 144A

 

 

3,140,000

 

 

3,496,911

 

Tesoro Corp., Ser. B:

 

 

 

 

 

 

 

6.50%, 06/01/2017 144A

 

 

2,150,000

 

 

2,042,500

 

6.625%, 11/01/2015

 

 

765,000

 

 

738,225

 

W&T Offshore, Inc., 8.25%, 06/15/2014 144A

 

 

530,000

 

 

500,850

 

Williams Cos.:

 

 

 

 

 

 

 

7.50%, 01/15/2031

 

 

2,850,000

 

 

2,821,500

 

8.125%, 03/15/2012

 

 

4,150,000

 

 

4,316,000

 

 

 

 

 

 

 

38,163,020

 

FINANCIALS     7.2%

 

 

 

 

 

 

 

Capital Markets     0.7%

 

 

 

 

 

 

 

Goldman Sachs Group, Inc., 6.875%, 01/15/2011

 

 

4,830,000

 

 

5,023,036

 

Consumer Finance     4.3%

 

 

 

 

 

 

 

AmeriCredit Corp., 8.50%, 07/01/2015 144A

 

 

740,000

 

 

714,100

 

Ashtead Capital, Inc., 9.00%, 08/15/2016 144A

 

 

543,000

 

 

548,430

 

CCH II Capital Corp., 10.25%, 09/15/2010

 

 

4,600,000

 

 

4,703,500

 

Ford Motor Credit Co., LLC:

 

 

 

 

 

 

 

7.375%, 10/28/2009

 

 

2,050,000

 

 

1,980,097

 

9.75%, 09/15/2010

 

 

9,183,000

 

 

9,279,679

 

General Electric Capital Corp., 6.125%, 02/22/2011

 

 

1,000,000

 

 

1,026,777

 

General Motors Acceptance Corp., LLC, 6.875%, 09/15/2011

 

 

7,855,000

 

 

7,310,719

 

HSBC Finance Corp., 5.00%, 06/30/2015

 

 

4,000,000

 

 

3,715,420

 

Northern Telecom Capital Corp., 7.875%, 06/15/2026

 

 

3,000,000

 

 

2,535,000

 

Qwest Capital Funding, Inc., 6.50%, 11/15/2018

 

 

1,665,000

 

 

1,361,137

 

 

 

 

 

 

 

33,174,859

 

Insurance     0.2%

 

 

 

 

 

 

 

Crum & Forster Holdings Corp., 7.75%, 05/01/2017 144A

 

 

1,830,000

 

 

1,765,950

 

Real Estate Investment Trusts     2.0%

 

 

 

 

 

 

 

Crescent Real Estate Equities Co., 9.25%, 04/15/2009

 

 

7,500,000

 

 

7,682,850

 

Host Marriott Corp.:

 

 

 

 

 

 

 

Ser. J, 7.125%, 11/01/2013

 

 

2,310,000

 

 

2,258,025

 

Ser. O, 6.375%, 03/15/2015

 

 

735,000

 

 

690,900

 

Ser. Q, 6.75%, 06/01/2016

 

 

1,750,000

 

 

1,680,000

 

Omega Healthcare Investors, Inc., 7.00%, 04/01/2014

 

 

85,000

 

 

81,600

 

Thornburg Mortgage, Inc., 8.00%, 05/15/2013

 

 

2,784,000

 

 

2,707,440

 

 

 

 

 

 

 

15,100,815

 

HEALTH CARE     3.3%

 

 

 

 

 

 

 

Health Care Equipment & Services     0.2%

 

 

 

 

 

 

 

Universal Hospital Services, Inc.:

 

 

 

 

 

 

 

8.50%, 06/01/2015 144A

 

 

645,000

 

 

585,338

 

FRN, 8.76%, 06/01/2015 144A

 

 

460,000

 

 

431,250

 

 

 

 

 

 

 

1,016,588

 

Health Care Providers & Services     3.1%

 

 

 

 

 

 

 

Community Health Systems, Inc., 8.875%, 07/15/2015 144A

 

 

2,200,000

 

 

2,147,750

 

HCA, Inc.:

 

 

 

 

 

 

 

8.75%, 09/01/2010

 

 

8,250,000

 

 

8,043,750

 

9.25%, 11/15/2016 144A

 

 

7,715,000

 

 

7,676,425

 

HealthSouth Corp., 10.75%, 06/15/2016

 

 

1,230,000

 

 

1,248,450

 

IASIS Healthcare Corp., 8.75%, 06/15/2014

 

 

4,575,000

 

 

4,414,875

 

Omnicare, Inc., 6.125%, 06/01/2013

 

 

160,000

 

 

144,400

 

 

 

 

 

 

 

23,675,650

 

 

 

 

7

 

EVERGREEN MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS continued

 

July 31, 2007 (unaudited)

 

 

 

 

 

 

 

 

 

 

Principal

 

 

 

 

 

 

 

Amount

 

 

Value

 

CORPORATE BONDS     continued

 

 

 

 

 

 

 

INDUSTRIALS     6.7%

 

 

 

 

 

 

 

Aerospace & Defense     2.3%

 

 

 

 

 

 

 

Dae Aviation Holdings, 11.25%, 08/01/2015 144A

 

$

620,000

 

$

604,500

 

DRS Technologies, Inc.:

 

 

 

 

 

 

 

6.625%, 02/01/2016

 

 

1,550,000

 

 

1,480,250

 

7.625%, 02/01/2018

 

 

880,000

 

 

849,200

 

Hawker Beechcraft Acquisition Corp.:

 

 

 

 

 

 

 

8.50%, 04/01/2015 144A

 

 

570,000

 

 

571,425

 

9.75%, 04/01/2017 144A

 

 

430,000

 

 

426,775

 

L-3 Communications Holdings, Inc.:

 

 

 

 

 

 

 

5.875%, 01/15/2015

 

 

7,470,000

 

 

6,835,050

 

6.125%, 01/15/2014

 

 

1,450,000

 

 

1,352,125

 

6.375%, 10/15/2015

 

 

5,689,000

 

 

5,262,325

 

 

 

 

 

 

 

17,381,650

 

Commercial Services & Supplies     1.5%

 

 

 

 

 

 

 

Allied Waste North America, Inc., 9.25%, 09/01/2012

 

 

7,000,000

 

 

7,288,750

 

Browning-Ferris Industries, Inc.:

 

 

 

 

 

 

 

7.40%, 09/15/2035

 

 

870,000

 

 

804,750

 

9.25%, 05/01/2021

 

 

1,530,000

 

 

1,652,400

 

Corrections Corporation of America, 6.25%, 03/15/2013

 

 

195,000

 

 

184,763

 

Geo Group, Inc., 8.25%, 07/15/2013

 

 

90,000

 

 

89,100

 

Harland Clarke Holdings Corp., 9.50%, 05/15/2015 144A

 

 

864,000

 

 

792,720

 

Mobile Mini, Inc., 6.875%, 05/01/2015 144A

 

 

885,000

 

 

845,175

 

 

 

 

 

 

 

11,657,658

 

Machinery     2.0%

 

 

 

 

 

 

 

Case New Holland, Inc., 9.25%, 08/01/2011

 

 

8,750,000

 

 

9,196,250

 

Commercial Vehicle Group, Inc., 8.00%, 07/01/2013

 

 

2,920,000

 

 

2,701,000

 

RBS Global, Inc., 9.50%, 08/01/2014

 

 

3,750,000

 

 

3,637,500

 

 

 

 

 

 

 

15,534,750

 

Road & Rail     0.7%

 

 

 

 

 

 

 

Avis Budget Car Rental, LLC:

 

 

 

 

 

 

 

7.625%, 05/15/2014

 

 

210,000

 

 

202,650

 

7.75%, 05/15/2016

 

 

1,410,000

 

 

1,353,600

 

Hertz Corp.:

 

 

 

 

 

 

 

8.875%, 01/01/2014

 

 

440,000

 

 

438,900

 

10.50%, 01/01/2016

 

 

3,000,000

 

 

3,120,000

 

 

 

 

 

 

 

5,115,150

 

Trading Companies & Distributors     0.2%

 

 

 

 

 

 

 

Neff Corp., 10.00%, 06/01/2015 144A

 

 

220,000

 

 

203,500

 

United Rentals, Inc., 6.50%, 02/15/2012

 

 

1,165,000

 

 

1,170,825

 

 

 

 

 

 

 

1,374,325

 

INFORMATION TECHNOLOGY     2.3%

 

 

 

 

 

 

 

Electronic Equipment & Instruments     0.7%

 

 

 

 

 

 

 

Da-Lite Screen Co., Inc., 9.50%, 05/15/2011

 

 

3,650,000

 

 

3,786,875

 

Sanmina-SCI Corp., FRN:

 

 

 

 

 

 

 

8.11%, 06/15/2010 144A

 

 

950,000

 

 

940,500

 

8.11%, 06/15/2014 144A

 

 

950,000

 

 

940,500

 

 

 

 

 

 

 

5,667,875

 

IT Services     1.4%

 

 

 

 

 

 

 

ipayment, Inc., 9.75%, 05/15/2014

 

 

1,950,000

 

 

1,872,000

 

Iron Mountain, Inc., 7.75%, 01/15/2015

 

 

520,000

 

 

484,900

 

SunGard Data Systems, Inc., 9.125%, 08/15/2013

 

 

7,405,000

 

 

7,479,050

 

Unisys Corp., 7.875%, 04/01/2008

 

 

610,000

 

 

604,663

 

 

 

 

 

 

 

10,440,613

 

 

 

8

 

 

 

EVERGREEN MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS continued

 

July 31, 2007 (unaudited)

 

 

 

 

 

 

 

 

 

 

Principal

 

 

 

 

 

 

 

Amount

 

 

Value

 

CORPORATE BONDS     continued

 

 

 

 

 

 

 

INFORMATION TECHNOLOGY     continued

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment     0.0%

 

 

 

 

 

 

 

Freescale Semiconductor, Inc., 8.875%, 12/15/2014 144A

 

$

80,000

 

$

73,400

 

Software     0.2%

 

 

 

 

 

 

 

Activant Solutions, Inc., 9.50%, 05/01/2016

 

 

1,430,000

 

 

1,290,575

 

MATERIALS     10.5%

 

 

 

 

 

 

 

Chemicals     4.4%

 

 

 

 

 

 

 

ARCO Chemical Co.:

 

 

 

 

 

 

 

9.80%, 02/01/2020

 

 

1,050,000

 

 

1,086,750

 

10.25%, 11/01/2010

 

 

180,000

 

 

194,850

 

Equistar Chemicals LP, 10.625%, 05/01/2011

 

 

3,257,000

 

 

3,419,850

 

Huntsman Advanced Materials, LLC, 11.625%, 10/15/2010

 

 

3,000,000

 

 

3,195,000

 

Huntsman International, LLC, 11.50%, 07/15/2012

 

 

6,300,000

 

 

6,961,500

 

Koppers Industrials, Inc.:

 

 

 

 

 

 

 

9.875%, 10/15/2013

 

 

150,000

 

 

159,750

 

9.875%, 11/15/2014

 

 

870,000

 

 

737,325

 

Lyondell Chemical Co.:

 

 

 

 

 

 

 

6.875%, 06/15/2017

 

 

2,805,000

 

 

2,959,275

 

10.50%, 06/01/2013

 

 

1,960,000

 

 

2,126,600

 

MacDermid, Inc., 9.50%, 04/15/2017 144A

 

 

1,783,000

 

 

1,631,445

 

Millenium America, Inc., 7.625%, 11/15/2026

 

 

875,000

 

 

800,625

 

Momentive Performance, Inc., 9.75%, 12/01/2014 144A

 

 

2,375,000

 

 

2,291,875

 

Mosaic Co.:

 

 

 

 

 

 

 

7.30%, 01/15/2028

 

 

750,000

 

 

708,750

 

7.625%, 12/01/2016 144A

 

 

1,800,000

 

 

1,818,000

 

Tronox Worldwide, LLC, 9.50%, 12/01/2012

 

 

5,535,000

 

 

5,507,325

 

 

 

 

 

 

 

33,598,920

 

Construction Materials     0.5%

 

 

 

 

 

 

 

CPG International, Inc., 10.50%, 07/01/2013

 

 

2,380,000

 

 

2,320,500

 

Dayton Superior Corp., 13.00%, 06/15/2009

 

 

1,620,000

 

 

1,624,050

 

 

 

 

 

 

 

3,944,550

 

Containers & Packaging     2.4%

 

 

 

 

 

 

 

Berry Plastics Holding Corp., 8.875%, 09/15/2014

 

 

2,581,000

 

 

2,490,665

 

Exopack Holding Corp., 11.25%, 02/01/2014

 

 

1,610,000

 

 

1,650,250

 

Graham Packaging Co., 9.875%, 10/15/2014

 

 

2,300,000

 

 

2,173,500

 

Graphic Packaging International, Inc.:

 

 

 

 

 

 

 

8.50%, 08/15/2011

 

 

1,680,000

 

 

1,675,800

 

9.50%, 08/15/2013

 

 

4,000,000

 

 

4,020,000

 

Owens-Brockway Glass Containers, Inc., 8.75%, 11/15/2012

 

 

4,310,000

 

 

4,493,175

 

Smurfit-Stone Container Corp., 8.375%, 07/01/2012

 

 

2,255,000

 

 

2,114,062

 

 

 

 

 

 

 

18,617,452

 

Metals & Mining     0.8%

 

 

 

 

 

 

 

Freeport-McMoRan Copper & Gold, Inc.:

 

 

 

 

 

 

 

8.25%, 04/01/2015

 

 

2,885,000

 

 

3,029,250

 

8.375%, 04/01/2017

 

 

890,000

 

 

936,725

 

Indalex Holdings Corp., 11.50%, 02/01/2014

 

 

1,915,000

 

 

1,905,425

 

 

 

 

 

 

 

5,871,400

 

Paper & Forest Products     2.4%

 

 

 

 

 

 

 

Bowater, Inc., 9.375%, 12/15/2021

 

 

2,575,000

 

 

2,278,875

 

Buckeye Technologies, Inc., 8.50%, 10/01/2013

 

 

3,120,000

 

 

3,151,200

 

Georgia Pacific Corp.:

 

 

 

 

 

 

 

8.00%, 01/15/2024

 

 

1,670,000

 

 

1,532,225

 

8.125%, 05/15/2011

 

 

5,400,000

 

 

5,467,500

 

Glatfelter, 7.125%, 05/01/2016

 

 

2,640,000

 

 

2,613,600

 

Verso Paper Holdings, LLC, 11.375%, 08/01/2016 144A

 

 

2,918,000

 

 

2,990,950

 

 

 

 

 

 

 

18,034,350

 

 

 

 

9

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

 

 

Principal Amount

 

 

Value

 

CORPORATE BONDS    continued

 

 

 

 

 

 

 

TELECOMMUNICATION SERVICES    5.4%

 

 

 

 

 

 

 

Diversified Telecommunication Services    2.5%

 

 

 

 

 

 

 

Citizens Communications Co., 9.25%, 05/15/2011

 

$

2,570,000

 

$

2,692,075

 

Consolidated Communications, Inc., 9.75%, 04/01/2012

 

 

3,500,000

 

 

3,482,500

 

Insight Midwest, LP, 9.75%, 10/01/2009

 

 

1,948,000

 

 

1,948,000

 

Qwest Communications International, Inc.:

 

 

 

 

 

 

 

7.875%, 09/01/2011

 

 

3,000,000

 

 

3,060,000

 

8.875%, 03/15/2012

 

 

5,250,000

 

 

5,545,313

 

FRN, 7.27%, 02/15/2009

 

 

600,000

 

 

604,500

 

West Corp.:

 

 

 

 

 

 

 

9.50%, 10/15/2014 144A

 

 

420,000

 

 

411,600

 

11.00%, 10/15/2016

 

 

1,050,000

 

 

1,050,000

 

 

 

 

 

 

 

18,793,988

 

Wireless Telecommunication Services    2.9%

 

 

 

 

 

 

 

American Cellular Corp., 10.00%, 08/01/2011

 

 

412,000

 

 

431,055

 

Centennial Communications Corp.:

 

 

 

 

 

 

 

10.00%, 01/01/2013

 

 

1,220,000

 

 

1,281,000

 

10.125%, 06/15/2013

 

 

4,000,000

 

 

4,215,000

 

Cricket Communications, Inc.:

 

 

 

 

 

 

 

9.375%, 11/01/2014

 

 

1,300,000

 

 

1,288,625

 

9.375%, 11/01/2014 144A

 

 

1,420,000

 

 

1,407,575

 

Dobson Cellular Systems, Inc.:

 

 

 

 

 

 

 

8.375%, 11/01/2011

 

 

1,840,000

 

 

1,961,900

 

9.875%, 11/01/2012

 

 

1,700,000

 

 

1,825,375

 

MetroPCS Wireless, Inc., 9.25%, 11/01/2014 144A

 

 

2,195,000

 

 

2,162,075

 

Rural Cellular Corp., 8.25%, 03/15/2012

 

 

5,750,000

 

 

5,922,500

 

US Unwired, Inc., Ser. B, 10.00%, 06/15/2012

 

 

1,500,000

 

 

1,622,881

 

 

 

 

 

 

 

22,117,986

 

UTILITIES    5.6%

 

 

 

 

 

 

 

Electric Utilities    3.5%

 

 

 

 

 

 

 

Allegheny Energy Supply Co., 8.25%, 04/15/2012 144A

 

 

3,970,000

 

 

4,178,425

 

Aquila, Inc., 11.875%, 07/01/2012

 

 

4,749,000

 

 

5,936,250

 

CMS Energy Corp.:

 

 

 

 

 

 

 

6.55%, 07/17/2017

 

 

270,000

 

 

261,348

 

8.50%, 04/15/2011

 

 

625,000

 

 

661,558

 

Edison Mission Energy:

 

 

 

 

 

 

 

7.00%, 05/15/2017 144A

 

 

1,095,000

 

 

993,713

 

7.20%, 05/15/2019 144A

 

 

1,295,000

 

 

1,162,262

 

Mirant Americas Generation, LLC, 8.50%, 10/01/2021

 

 

3,000,000

 

 

2,872,500

 

Mirant North America, LLC, 7.375%, 12/31/2013

 

 

2,575,000

 

 

2,575,000

 

NRG Energy, Inc., 7.375%, 02/01/2016

 

 

2,720,000

 

 

2,631,600

 

Orion Power Holdings, Inc., 12.00%, 05/01/2010

 

 

1,855,000

 

 

2,021,950

 

Reliant Energy, Inc.:

 

 

 

 

 

 

 

6.75%, 12/15/2014

 

 

2,330,000

 

 

2,306,700

 

7.875%, 06/15/2017

 

 

930,000

 

 

888,150

 

 

 

 

 

 

 

26,489,456

 

Gas Utilities    0.5%

 

 

 

 

 

 

 

SEMCO Energy, Inc., 7.75%, 05/15/2013

 

 

4,000,000

 

 

3,984,556

 

Independent Power Producers & Energy Traders    1.6%

 

 

 

 

 

 

 

AES Corp., 9.00%, 05/15/2015 144A

 

 

6,800,000

 

 

7,191,000

 

Dynegy, Inc., 8.375%, 05/01/2016

 

 

5,490,000

 

 

5,133,150

 

 

 

 

 

 

 

12,324,150

 

Total Corporate Bonds     (cost $527,288,890)

 

 

 

 

 

507,480,541

 

 

10

 

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

 

 

Principal Amount

 

 

Value

 

FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED)    15.3%

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    0.4%

 

 

 

 

 

 

 

Media    0.1%

 

 

 

 

 

 

 

Central European Media Enterprise, Ltd., 8.25%, 05/15/2012 EUR

 

 

500,000

 

$

717,398

 

Multi-line Retail    0.3%

 

 

 

 

 

 

 

Marks & Spencer Group plc, 6.375%, 11/07/2011 GBP

 

 

1,000,000

 

 

2,026,712

 

CONSUMER STAPLES    1.3%

 

 

 

 

 

 

 

Beverages    0.2%

 

 

 

 

 

 

 

Canandaigua Brands, Inc., 8.50%, 11/15/2009 GBP

 

 

750,000

 

 

1,579,474

 

Food & Staples Retailing    0.3%

 

 

 

 

 

 

 

Koninklijke Ahold NV, 5.875%, 03/14/2012 EUR

 

 

1,000,000

 

 

1,388,663

 

Tesco plc, 3.875%, 03/24/2011 EUR

 

 

620,000

 

 

826,130

 

 

 

 

 

 

 

2,214,793

 

Tobacco    0.8%

 

 

 

 

 

 

 

British American Tobacco plc, 5.75%, 12/09/2013 GBP

 

 

3,140,000

 

 

6,152,569

 

ENERGY    0.1%

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels    0.1%

 

 

 

 

 

 

 

Transco plc, 7.00%, 12/15/2008 AUD

 

 

1,000,000

 

 

856,763

 

FINANCIALS    11.8%

 

 

 

 

 

 

 

Capital Markets    0.4%

 

 

 

 

 

 

 

Morgan Stanley, 5.375%, 11/14/2013 GBP

 

 

1,510,000

 

 

2,860,625

 

Commercial Banks    6.1%

 

 

 

 

 

 

 

Bank Nederlandse Gemeenten NV, 4.875%, 04/21/2010 GBP

 

 

7,595,000

 

 

15,000,350

 

Eurofima:

 

 

 

 

 

 

 

5.50%, 09/15/2009 AUD

 

 

2,400,000

 

 

2,007,230

 

6.50%, 08/22/2011 AUD

 

 

5,000,000

 

 

4,240,328

 

European Investment Bank, 5.75%, 09/15/2009 AUD

 

 

5,470,000

 

 

4,605,493

 

Kommunalbanken AS, 4.125%, 06/03/2013 CAD

 

 

1,980,000

 

 

1,775,814

 

Kreditanstalt für Wiederaufbau, 4.95%, 10/14/2014 CAD

 

 

7,810,000

 

 

7,321,447

 

Landwirtschaftliche Rentenbank:

 

 

 

 

 

 

 

4.25%, 11/16/2012 CAD

 

 

7,110,000

 

 

6,454,049

 

6.00%, 09/15/2009 AUD

 

 

5,100,000

 

 

4,302,718

 

Rabobank Australia, Ltd., 6.25%, 11/22/2011 NZD

 

 

725,000

 

 

519,600

 

 

 

 

 

 

 

46,227,029

 

Consumer Finance    1.9%

 

 

 

 

 

 

 

ABB International Finance, Ltd., 6.50%, 11/30/2011 EUR

 

 

2,360,000

 

 

3,432,803

 

General Electric Capital Corp., 5.25%, 12/10/2013 GBP

 

 

780,000

 

 

1,508,622

 

HSBC Finance Corp., 7.00%, 03/27/2012 GBP

 

 

370,000

 

 

767,764

 

KfW International Finance, Inc., 6.25%, 12/17/2007 NZD

 

 

9,160,000

 

 

6,976,928

 

Total Capital, 5.50%, 01/29/2013 GBP

 

 

1,000,000

 

 

1,975,253

 

 

 

 

 

 

 

14,661,370

 

Diversified Financial Services    1.0%

 

 

 

 

 

 

 

GE Capital Corp., 4.125%, 10/27/2016 EUR

 

 

4,750,000

 

 

6,117,237

 

Lighthouse Group plc, 8.00%, 04/30/2014 EUR

 

 

1,000,000

 

 

1,396,808

 

 

 

 

 

 

 

7,514,045

 

Insurance    0.6%

 

 

 

 

 

 

 

AIG SunAmerica, Inc., 5.625%, 02/01/2012 GBP

 

 

2,000,000

 

 

3,971,627

 

Travelers Insurance Co., 6.00%, 04/07/2009 AUD

 

 

1,000,000

 

 

843,721

 

 

 

 

 

 

 

4,815,348

 

Thrifts & Mortgage Finance    1.8%

 

 

 

 

 

 

 

Nykredit, 5.00%, 10/01/2035 DKK

 

 

25,747,886

 

 

4,555,922

 

Realkredit Danmark, 4.00%, 10/01/2035 DKK

 

 

18,002,095

 

 

2,943,575

 

Totalkredit, FRN, 4.90%, 01/01/2015 DKK

 

 

34,238,831

 

 

6,359,131

 

 

 

 

 

 

 

13,858,628

 

 

 

11

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

Principal
Amount

 

Value

 

FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED)    continued

 

 

 

 

 

 

 

INDUSTRIALS    0.5%

 

 

 

 

 

 

 

Aerospace & Defense    0.2%

 

 

 

 

 

 

 

Bombardier, Inc., 7.25%, 11/15/2016 EUR

 

 

930,000

 

$

1,290,310

 

Machinery    0.3%

 

 

 

 

 

 

 

Harsco Corp., 7.25%, 10/27/2010 GBP

 

 

1,000,000

 

 

2,088,772

 

Savcio Holdings, Ltd., 8.00%, 02/15/2013 EUR

 

 

250,000

 

 

345,232

 

 

 

 

 

 

 

2,434,004

 

INFORMATION TECHNOLOGY    0.3%

 

 

 

 

 

 

 

Office Electronics    0.3%

 

 

 

 

 

 

 

Xerox Corp., 9.75%, 01/15/2009 EUR

 

 

1,800,000

 

 

2,673,559

 

TELECOMMUNICATION SERVICES    0.9%

 

 

 

 

 

 

 

Diversified Telecommunication Services    0.9%

 

 

 

 

 

 

 

Deutsche Telekom AG, 6.25%, 12/09/2010 GBP

 

 

2,700,000

 

 

5,477,617

 

Virgin Media, 8.75%, 04/15/2014 EUR

 

 

940,000

 

 

1,346,328

 

 

 

 

 

 

 

6,823,945

 

Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated)     (cost $111,244,953)

 

 

116,706,572

 

FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED)    19.9%

 

 

 

 

 

 

 

Australia, 7.00%, 12/01/2010 AUD

 

 

15,300,000

 

 

13,241,138

 

Caisse d’Amortissement de la Dette Sociale, 4.125%, 04/25/2017 EUR

 

 

8,200,000

 

 

10,835,867

 

Canada:

 

 

 

 

 

 

 

4.40%, 03/08/2016 CAD

 

 

5,290,000

 

 

4,807,351

 

4.60%, 09/15/2011 CAD

 

 

7,995,000

 

 

7,477,475

 

5.00%, 06/01/2014 CAD

 

 

2,900,000

 

 

2,795,063

 

5.75%, 03/03/2008 CAD

 

 

5,000,000

 

 

3,786,241

 

Denmark, 4.00%, 11/15/2017 DKK

 

 

83,795,000

 

 

14,890,962

 

France, 4.25%, 04/25/2019 EUR

 

 

7,700,000

 

 

10,342,744

 

Germany:

 

 

 

 

 

 

 

3.50%, 10/14/2011 EUR

 

 

9,350,000

 

 

12,403,530

 

3.75%, 01/04/2017 EUR

 

 

2,000,000

 

 

2,616,337

 

Hong Kong, 4.23%, 03/21/2011 HKD

 

 

72,250,000

 

 

9,232,795

 

Korea:

 

 

 

 

 

 

 

4.75%, 06/10/2009 KRW

 

 

5,570,000,000

 

 

6,003,034

 

5.25%, 09/10/2015 KRW

 

 

2,850,000,000

 

 

3,078,592

 

Mexico, 10.00%, 12/05/2024 MXN

 

 

77,300,000

 

 

8,634,149

 

Netherlands, 4.00%, 07/15/2016 EUR

 

 

9,895,000

 

 

13,140,740

 

New Zealand, 6.00%, 07/15/2008 NZD

 

 

5,130,000

 

 

3,875,283

 

Norway, 4.25%, 05/19/2017 NOK

 

 

93,700,000

 

 

15,145,353

 

Poland, 4.75%, 04/25/2012 PLN

 

 

25,320,000

 

 

8,858,653

 

Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated)    (cost $147,746,122)

 

 

151,165,307

 

YANKEE OBLIGATIONS – CORPORATE    6.7%

 

 

 

 

 

 

 

ENERGY    0.6%

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels    0.6%

 

 

 

 

 

 

 

OPTI Canada, Inc.:

 

 

 

 

 

 

 

7.875%, 12/15/2014 144A

 

$

3,460,000

 

 

3,408,100

 

8.25%, 12/15/2014 144A

 

 

1,500,000

 

 

1,507,500

 

 

 

 

 

 

 

4,915,600

 

FINANCIALS    1.6%

 

 

 

 

 

 

 

Commercial Banks    0.2%

 

 

 

 

 

 

 

Bank of Moscow, 7.34%, 05/13/2013

 

 

1,500,000

 

 

1,537,950

 

 

 

12

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

Principal
Amount

 

Value

 

YANKEE OBLIGATIONS – CORPORATE    continued

 

 

 

 

 

 

 

FINANCIALS    continued

 

 

 

 

 

 

 

Consumer Finance    0.8%

 

 

 

 

 

 

 

NXP Funding, LLC:

 

 

 

 

 

 

 

7.875%, 10/15/2014

 

$

1,250,000

 

$

1,160,938

 

9.50%, 10/15/2015

 

 

1,250,000

 

 

1,087,500

 

Petroplus Financial, Ltd.:

 

 

 

 

 

 

 

6.75%, 05/01/2014 144A

 

 

1,050,000

 

 

963,375

 

7.00%, 05/01/2017 144A

 

 

690,000

 

 

633,075

 

Virgin Media Finance plc, 9.125%, 08/15/2016

 

 

2,490,000

 

 

2,527,350

 

 

 

 

 

 

 

6,372,238

 

Diversified Financial Services    0.6%

 

 

 

 

 

 

 

Preferred Term Securities XII, Ltd., FRN, 10.00%, 12/24/2033

 

 

635,000

 

 

499,123

 

Ship Finance International, Ltd., 8.50%, 12/15/2013

 

 

3,625,000

 

 

3,706,562

 

 

 

 

 

 

 

4,205,685

 

INDUSTRIALS    0.3%

 

 

 

 

 

 

 

Road & Rail    0.3%

 

 

 

 

 

 

 

Kansas City Southern de Mexico:

 

 

 

 

 

 

 

7.375%, 06/01/2014 144A

 

 

880,000

 

 

855,800

 

9.375%, 05/01/2012

 

 

1,410,000

 

 

1,494,600

 

 

 

 

 

 

 

2,350,400

 

INFORMATION TECHNOLOGY    0.3%

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment    0.3%

 

 

 

 

 

 

 

Avago Technologies Finance, Ltd., 10.125%, 12/01/2013

 

 

1,875,000

 

 

1,950,000

 

MATERIALS    1.8%

 

 

 

 

 

 

 

Chemicals    0.1%

 

 

 

 

 

 

 

NOVA Chemicals Corp., 6.50%, 01/15/2012

 

 

580,000

 

 

527,800

 

Metals & Mining    1.5%

 

 

 

 

 

 

 

Novelis, Inc., 7.25%, 02/15/2015

 

 

11,545,000

 

 

11,631,587

 

Paper & Forest Products    0.2%

 

 

 

 

 

 

 

Abitibi-Consolidated, Inc., 8.375%, 04/01/2015

 

 

1,455,000

 

 

1,193,100

 

TELECOMMUNICATION SERVICES    2.0%

 

 

 

 

 

 

 

Diversified Telecommunication Services    0.3%

 

 

 

 

 

 

 

Northern Telecom, Ltd., 6.875%, 09/01/2023

 

 

3,000,000

 

 

2,415,000

 

Wireless Telecommunication Services    1.7%

 

 

 

 

 

 

 

Inmarsat plc, 10.375%, 11/15/2012

 

 

1,120,000

 

 

1,047,200

 

Intelsat, Ltd.:

 

 

 

 

 

 

 

9.25%, 06/15/2016

 

 

5,350,000

 

 

5,483,750

 

11.25%, 06/15/2016

 

 

2,220,000

 

 

2,331,000

 

Rogers Wireless, Inc., 9.625%, 05/01/2011

 

 

2,470,000

 

 

2,767,909

 

Vimpel Communications, 8.25%, 05/23/2016

 

 

1,400,000

 

 

1,435,840

 

 

 

 

 

 

 

13,065,699

 

UTILITIES    0.1%

 

 

 

 

 

 

 

Electric Utilities    0.1%

 

 

 

 

 

 

 

Intergen NV, 9.00%, 06/30/2017 144A

 

 

890,000

 

 

881,100

 

Total Yankee Obligations – Corporate    (cost $ 52,868,226)

 

 

 

 

 

51,046,159

 

 

 

 

13

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

 

 

Shares

 

Value

 

COMMON STOCKS     0.1%

 

 

31,194

 

$

555,877

 

INDUSTRIALS     0.1%

 

 

 

 

 

 

 

Delta Air Lines, Inc.*

 

 

 

 

 

 

 

MATERIALS     0.0%

 

 

 

 

 

 

 

Paper & Forest Products     0.0%

 

 

 

 

 

 

 

Glatfelter *

 

 

21,250

 

 

285,387

 

Total Common Stocks (cost $1,109,543)

 

 

 

 

 

841,264

 

 

 

 

Principal
Amount

 

Value

 

DEBT OBLIGATIONS     0.8%

 

 

 

 

 

 

 

ENERGY     0.8%

 

 

 

 

 

 

 

Blue Grass Energy Corp. Loan, FRN, 10.32%, 12/30/2013

 

$

5,350,000

 

 

5,361,396

 

Saint Acquisition Corp. Loan, FRN, 8.61%, 06/05/2014

 

 

675,000

 

 

607,466

 

Total Debt Obligations     (cost $5,953,603)

 

 

 

 

 

5,968,862

 

 

 

 

Shares

 

Value

 

SHORT-TERM INVESTMENTS     2.8%

 

 

 

 

 

 

 

MUTUAL FUND SHARES     2.8%

 

 

 

 

 

 

 

Evergreen Institutional Money Market Fund, Class I, 5.22% q ø (cost $21,342,616)

 

 

21,342,616

 

 

21,342,616

 

Total Investments    (cost $1,163,613,779)    151.2%

 

 

 

 

 

1,150,860,083

 

Other Assets and Liabilities and Preferred Shares    (51.2%)

 

 

 

 

 

(389,470,431

)

Net Assets Applicable to Common Shareholders    100.0%

 

 

 

 

$

761,389,652

 

#

When-issued or delayed delivery security

##

All or a portion of this security has been segregated for when-issued or delayed delivery securities.

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.

*

Non-income producing security

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.

Summary of Abbreviations

AUD

Australian Dollar

CAD

Canadian Dollar

DKK

Danish Krone

EUR

Euro

FHLB

Federal Home Loan Bank

FHLMC

Federal Home Loan Mortgage Corp.

FNMA

Federal National Mortgage Association

FRN

Floating Rate Note

GBP

Great British Pound

GNMA

Government National Mortgage Association

HKD

Hong Kong Dollar

KRW

Republic of Korea Won

MXN

Mexican Peso

NOK

Norwegian Krone

NZD

New Zealand Dollar

PLN

Polish Zloty

TBA

To Be Announced

 

 

14

 

 

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2007 (unaudited)

At July 31, 2007, the Fund had the following open interest rate swap agreements:

Expiration

 

Notional
Amount

 

Counterparty

 

Cash Flows Paid
by the Fund

 

Cash Flows Received
by the Fund

 

Unrealized
Gain

 

11/26/2008

 

$112,000,000

 

JPMorgan Chase & Co.

 

Fixed-3.582%

 

Floating-5.32%1

 

$2,733,084

 

1

This rate represents the 1 month USD London InterBank Offered Rate (LIBOR) effective for the period from July 26, 2007 through August 26, 2007.

At July 31, 2007, the Fund had forward foreign currency exchange contracts outstanding as follows:

Forward Foreign Currency Exchange Contracts to Buy:

Exchange
Date

 

Contracts to Receive

 

U.S. Value at
July 31, 2007

 

In Exchange
for U.S. $

 

Unrealized
Gain (Loss)

 

8/7/2007

 

6,043,469 EUR

 

$ 8,275,296

 

$ 8,250,000

 

$ 25,296

 

8/7/2007

 

23,965,000 EUR

 

32,815,169

 

32,440,941

 

374,228

 

8/7/2007

 

13,616,000 EUR

 

18,644,329

 

18,315,018

 

329,311

 

8/30/2007

 

13,092,433 EUR

 

17,942,305

 

18,000,000

 

(57,695

)

9/5/2007

 

337,200,000 JPY

 

2,847,211

 

2,775,080

 

72,131

 

Forward Foreign Currency Exchange Contracts to Buy:

Exchange
Date

 

Contracts to Receive

 

U.S. Value at
July 31, 2007

 

In Exchange
for

 

U.S. Value at
July 31, 2007

 

Unrealized
Gain (Loss)

9/12/2007

 

3,583,958,000 JPY

 

$30,286,455

 

22,259,434 EUR

 

$30,516,137

 

$(229,682

)

9/14/2007

 

1,741,897,200 JPY

 

14,723,433

 

17,112,618 AUD

 

14,655,744

 

67,689

 

9/14/2007

 

7,375,000 GBP

 

14,996,436

 

10,925,117 EUR

 

14,978,392

 

18,044

 

9/14/2007

 

21,797,145 EUR

 

29,883,999

 

14,751,000 GBP

 

29,994,905

 

(110,906

)

10/22/2007

 

1,804,063,755 JPY

 

15,318,702

 

15,562,000 CAD

 

14,645,179

 

673,523

 

Forward Foreign Currency Exchange Contracts to Sell:

 

Exchange

 

Contracts to

 

U.S. Value at

 

In Exchange

 

Unrealized

 

Date

 

Deliver

 

July 31, 2007

 

for U.S. $

 

Gain (Loss)

 

8/7/2007

 

11,035,298 EUR

 

$15,110,585

 

$14,750,000

 

$(360,585

)

8/7/2007

 

8,320,671 EUR

 

11,393,459

 

11,500,000

 

106,541

 

8/7/2007

 

975,000 EUR

 

1,335,063

 

1,349,010

 

13,947

 

8/7/2007

 

23,296,500 EUR

 

31,895,687

 

31,978,947

 

83,260

 

On July 31, 2007, the aggregate cost of securities for federal income tax purposes was $1,163,687,481. The gross unrealized appreciation and depreciation on securities based on tax cost was $14,052,926 and $26,880,324, respectively, with a net unrealized depreciation of $12,827,398.

 

 

 

15

 

Item 2 - 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-Q was recorded, processed, summarized, and reported timely.
 

(b)

There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 - Exhibits

File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

 

(a)

Separate certifications for the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached as EX-99.CERT.

 

 

SIGNATURES

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 Multi-Sector Income Fund

 

 

 

 

 

 

 

 

By:

 

 

 
 

Dennis H. Ferro,
Principal Executive Officer

 

 

 

 

 

 

 

 

Date:

September 28, 2007

 

 

 

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.

 

By:

 

 

 
 

Dennis H. Ferro,
Principal Executive Officer

 

 

 

 

 

 

 

 

Date:

September 28, 2007

 

 

 

 

By:

 

 

 
 

Kasey Phillips
Principal Financial Officer

 

 

 

 

 

 

 

 

Date:

September 28, 2007

 

 

 

 

 

 

 

200 Berkeley Street

 

Boston, MA 02116-5034

 

CERTIFICATIONS

I, Kasey Phillips, certify that:

1.

I have reviewed this report on Form N-Q of Evergreen Multi-Sector Income Fund;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the schedule(s) of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which this report is filed;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: September 28, 2007

 

 

 

 

 

 

 

Kasey Phillips
Principal Financial Officer
Evergreen Multi-Sector Income Fund

 

 

 

200 Berkeley Street

 

Boston, MA 02116-5034

 

CERTIFICATIONS

I, Dennis H. Ferro, certify that:

1.

I have reviewed this report on Form N-Q of Evergreen Multi-Sector Income Fund;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which this report is filed;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: September 28, 2007

 

 

 

 

 

 

 

Dennis H. Ferro
Principal Executive Officer
Evergreen Multi-Sector Income Fund