Evergreen Investments has decided to merge the Evergreen High Grade Municipal Bond Fund
into the Evergreen Municipal Bond Fund
and the Evergreen Limited Duration Fund
into the Evergreen Ultra Short Opportunities Fund
, Both proposals are subject to shareholder approval.
Evergreen Investments announced today
that the Board of Trustees of the Evergreen Funds approved the following
-- Merger of Evergreen High Grade Municipal Bond Fund (EHGAX)1,2,3 into
Evergreen Municipal Bond Fund (EKEAX)(1),(2),(3)
-- Merger of Evergreen Limited Duration Fund (ESDAX)(1),(4),(5) into
Evergreen Ultra Short Opportunities Fund (EUBAX)(1),(4),(5)
-- Strategy, investment objective and name change of Evergreen Diversified
Bond Fund (EKDLX)(1),(2),(4),(5) to Evergreen Core Plus Bond Fund
-- Strategy and name change of Evergreen High Yield Bond Fund
(EKHAX)(1),(2),(4) to Evergreen High Income Fund
The two merger proposals are subject to shareholder votes at
shareholder meetings scheduled for September 28, 2007, at Evergreen
Investments' offices, 200 Berkeley St., Boston, MA 02116. If approved, the
mergers of both funds are expected effective October 15, 2007.
Evergreen will notify shareholders of Evergreen Diversified Bond Fund
at least 30 days in advance of the effective date of the strategy,
investment objective and name changes to the fund, expected to be effective
on or about August 1, 2007. Evergreen will notify shareholders of Evergreen
High Yield Bond Fund at least 60 days in advance of the effective date of
the strategy and name changes to the fund, expected to be effective on or
about September 1, 2007.
Evergreen recommended and the Board approved the merger of Evergreen
High Grade Municipal Bond Fund into Evergreen Municipal Bond Fund. The
funds invest in high-grade municipal securities with similar maturities.
Both funds are managed by Mathew Kiselak, portfolio manager and member of
Evergreen's Tax-Exempt Fixed Income Team. The combined fund will continue
to be managed by Kiselak.
Also approved is a recommendation to merge Evergreen Limited Duration
Fund into Evergreen Ultra Short Opportunities Fund. Both funds invest in
high- quality fixed income securities with similar maturities. Both funds
are managed by Evergreen affiliate Tattersall Advisory Group's Structured
Products Team, led by portfolio manager Lisa Brown-Premo. She, along with
portfolio manager Bob Rowe of Tattersall, will continue to manage the
Existing shareholders in the merging funds will be moved to the
corresponding share class of the surviving funds for both Evergreen
Municipal Bond Fund and Evergreen Ultra Short Opportunities Fund (Classes
A, B, C and I), with the exception of shareholders of Evergreen Limited
Duration Fund Class IS, which will be moved to A shares of Evergreen Ultra
Short Opportunities Fund.
Evergreen has received approval from the Board to change the name,
investment objective and strategy of Evergreen Diversified Bond Fund. The
Fund will become Evergreen Core Plus Bond Fund, more closely aligning its
investment objective and investment strategy with Tattersall's existing
Core Plus approach. Bob Calhoun will continue as lead manager, supported by
the Core Bond team of six additional portfolio managers, in addition to
Andrew Cestone, head of Evergreen's Global High Yield Team.
Evergreen also has received approval from the Board to rename Evergreen
High Yield Bond Fund to Evergreen High Income Fund. With the name change,
there will be a strategy and objective change to reduce the fund's minimum
allocation to below-investment grade bonds to 65 percent. This change is
consistent with similarly managed funds and may provide increased ability
to achieve the fund's investment objective of high income. The modification
may also provide portfolio manager Andrew Cestone with greater investment
flexibility to position the portfolio, based on market opportunities.
A preliminary prospectus/proxy statement relating to the mergers is
expected to be filed with the SEC on or about June 22, 2007, and, once
filed, will be available free from the SEC's web site at
http://www.sec.gov. Definitive materials are expected to be mailed to
shareholders on or about August 6, 2007. Shareholders are urged to read the
prospectus/proxy statement carefully. This document does not constitute an
offer of any securities for sale.
Mutual Funds: NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE
(1) Derivatives involve additional risks including interest rate risk,
credit risk, the risk of improper valuation and the risk of non-correlation
to the relevant instruments they are designed to hedge or to closely track.
The return of principal is not guaranteed due to fluctuation in the fund's
NAV caused by changes in the price of individual bonds held by the fund and
the buying and selling of bonds by the fund. Bond funds have the same
inflation, interest rate and credit risks as individual bonds. Generally,
the value of bond funds rises when prevailing interest rates fall, and
falls when interest rates rise. (2) High yield, lower-rated bonds may
contain more risk due to the increased possibility of default. (3) The
fund's yield will fluctuate and there can be no guarantee that the fund
will achieve its objective or any particular tax-exempt yield. Income may
be subject to federal alternative minimum tax as well as local income
taxes. (4) Foreign investments may contain more risk due to the inherent
risks associated with changing political climates, foreign market
instability and foreign currency fluctuations. (5) Asset-backed and
mortgage-backed securities are generally subject to higher prepayment risks
than other types of debt securities, which can limit the potential for gain
in a declining interest rate environment and increase the potential for
loss in a rising interest rate environment. Mortgage-backed securities may
also be structured so that they are particularly sensitive to interest
rates. U.S. government guarantees apply only to certain securities held in
the fund's portfolio and not to the fund's shares.
An investor should consider the fund's investment objectives, risks,
charges and expenses carefully before investing or sending money. This and
other important information about the investment company can be found in
the fund's prospectus. To obtain a prospectus, please contact your
financial advisor, call evergreen's investment services center at
800.343.2898 or visit http://evergreeninvestments.com. Please read the
prospectus carefully before investing.
Evergreen mutual funds are distributed by Evergreen Investment
Services, Inc. 200 Berkeley Street, Boston, MA 02116-5034.
Evergreen Investments(SM) is a service mark of Evergreen Investment
Management Company, LLC. Copyright 2007. Evergreen Investment Management
About Evergreen Investments
Evergreen Investments is the brand name under which Wachovia
Corporation (NYSE: WB) conducts its investment management business.
Wachovia Global Asset Management is the brand name under which Evergreen
Investments conducts sales and distribution business outside of the United
States. Combined, the groups serve more than four million individual and
institutional investors through a broad range of investment products. Led
by 300 investment professionals, Evergreen Investments strives to meet
client investment objectives through disciplined, team-based asset
management. Evergreen Investments manages more than $312 billion in assets
(as of March 31, 2007). Please visit http://EvergreenInvestments.com for
more information about Evergreen Investments.
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