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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Evergreen International Balanced Income Fund Evergreen International Balanced Income Fund Common Shares of Beneficial Interest | NYSE:EBI | NYSE | Ordinary Share |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 15.86 | 0.00 | 01:00:00 |
|
OMB APPROVAL |
|
OMB Number: 3235-0570 Expires: September 30, 2007
Estimated average burden
|
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, 2010
Item 1 - Reports to Stockholders.
Evergreen International Balanced Income Fund
|
|
|
table of contents |
|
1 |
|
LETTER TO SHAREHOLDERS |
|
4 |
|
FINANCIAL HIGHLIGHTS |
|
5 |
|
SCHEDULE OF INVESTMENTS |
|
16 |
|
STATEMENT OF ASSETS AND LIABILITIES |
|
17 |
|
STATEMENT OF OPERATIONS |
|
18 |
|
STATEMENTS OF CHANGES IN NET ASSETS |
|
19 |
|
NOTES TO FINANCIAL STATEMENTS |
|
29 |
|
ADDITIONAL INFORMATION |
|
30 |
|
AUTOMATIC DIVIDEND REINVESTMENT PLAN |
|
32 |
|
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.
This closed-end fund is no longer offered as an initial public offering and is only offered through broker/dealers on the secondary market. A closed-end fund is not required to buy its shares back from investors upon request.
Mutual Funds:
| NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED |
Evergreen Investments SM is a service mark of Evergreen Investment Management Company, LLC. Copyright 2010, Evergreen Investment Management Company, LLC.
Evergreen Investment Management Company, LLC, is a subsidiary of Wells Fargo & Company and is an affiliate of Wells Fargo & Company’s broker/dealer subsidiaries. Evergreen open-end mutual funds are distributed by Wells Fargo Funds Distributor, LLC , Member FINRA/SIPC, an affiliate of Wells Fargo & Company.
LETTER TO SHAREHOLDERS
June 2010
W. Douglas Munn
President and Chief Executive Officer
Dear Valued Shareholder:
We are pleased to provide you with this semiannual report for Evergreen International Balanced Income Fund for the six-month period that ended April 30, 2010 (the “period”).
At the beginning of the period, after prolonged uncertainty and falling share prices worldwide, stock markets staged a remarkable rally in 2009 that continued through the end of the year. In January 2010, concerns about the sustainability of the economic recovery led to a partial correction, but the markets quickly rebounded and ended the reporting period approximately where they began in 2010.
Investors were encouraged by continued economic growth in both developed and emerging markets and were placing greater interest in underlying fundamentals, in sharp contrast to their wild pursuit of low-quality stocks just one year ago. However, this sentiment was tempered by concerns over the growing sovereign debt problems in Europe, the impact of Chinese policy tightening, and fears over U.S. bank regulation. A rally in the U.S. dollar and a decline in commodity prices also had an impact.
Investors appeared caught between increasing signs of a cyclical upturn and the fear of lingering systematic risks in the wake of the 2008 crisis, with the resulting market volatility. For instance, as the period drew to a close, investors became increasingly nervous about the European Union’s willingness and ability to bail out Greece, while Fitch Ratings downgraded Portugal’s sovereign debt and Spain moved onto investors’ worry radar. As a result, the euro sold off almost 1.5% in a two-day time period, extending its four-month, 11% drop versus the dollar. During that time, investors largely ignored concurrent data that showed U.S. durable goods orders climbing for three months in a row, and business confidence in Germany reached its highest level since June 2008. It was difficult to shake the feeling that the recovery in the West rested on a weak foundation.
In Asia, the situation was much different. Starting in the second half of 2009, Asia began to show signs of a sustained recovery, well ahead of the rest of the world. Without the structural balance sheet issues faced by Western economies, Asian credit growth picked up far earlier, particularly in China and more recently in India. In sharp contrast to Europe and the United States, where a fear of debt-deflation spiral hung over the market near the end of the period, investors in Asia were increasingly worried about rising inflation. Currently, the major risk we see is that Asian central banks will begin to tighten credit and choke off growth in the region. Notably, in March of 2010, India became the first major emerging market to raise interest rates in response to rapidly increasing inflation.
1
LETTER TO SHAREHOLDERS continued
The tension between macro-economic forces, cyclical factors, and structural imbalances made for an interesting, if challenging, investing environment. Our current view is that we must be wary of the ongoing, largely unaddressed structural imbalances in the West, while cautiously embracing the strong cyclical upturn in Asia. It remains true that the U.S. economy was propped up by government borrowing during most of the period, which merely offset massive deleveraging at the household and corporate level. Renewed weakness in Western and Eastern Europe is a current concern, and negative surprises presently remain possible in the coming months. Sovereign debt crises in Dubai and Greece may not be the only ones investors will contend with in the next few years. Asia, on the other hand, currently looks healthier. With strong balance sheets and growing economies, that area inspires optimism that good investment opportunities may emerge.
During the period, managers of Evergreen International Balanced Income Fund sought a high level of income, primarily through investments in the stocks of what they believe to be stable, high-dividend paying 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 changing conditions in the investment environment over the 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.
Please visit us at EvergreenInvestments.com for more information about our funds and other investment products available to you. Thank you for your continued support of Evergreen Investments.
Sincerely,
W. Douglas Munn
President and Chief Executive Officer
Evergreen Funds
2
LETTER TO SHAREHOLDERS continued
Notice to Shareholders:
At meetings held on May 11 and June 9-10, 2010, the Board of Trustees of Evergreen International Balanced Income Fund (the “Fund”) unanimously approved a new advisory contract with Wells Fargo Funds Management, LLC, a new sub-advisory contract with Wells Capital Management Incorporated and a new sub-advisory contract with the Fund’s current sub-advisor, First International Advisors, LLC (the “Agreements”). Shareholders are being asked to approve the Agreements at a meeting to be held on July 9, 2010. Following approval of the Agreements, Tim Stevenson of Wells Capital Management Incorporated is expected to continue to manage the options overlay strategy for the Fund. Stevenson currently provides such services to the Fund as a portfolio manager of Evergreen Investment Management Company, LLC, the current advisor to the Fund. Francis Claro of Wells Capital Management Incorporated is expected to continue to manage the international equities portion of the Fund. Claro currently provides such services to the Fund as a portfolio manager of Evergreen Investment Management Company, LLC. Tony Norris and Peter Wilson of First International Advisors, LLC are expected to continue to manage the international bond portion of the Fund (with Norris continuing to provide asset allocation services to the Fund). In addition, the Fund will be renamed the Wells Fargo Advantage International Balanced Income Fund.
At the May 11 meeting, the Board also nominated seven persons for election to the Fund’s Board as new Trustees, and nominated two current Trustees for re-election to the Fund’s Board. Shareholders are being asked to elect these nominees at the July 9 meeting.
A Proxy Statement containing additional information about the Agreements and the nominees was provided to shareholders of record as of May 18, 2010.
3
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
|
|
Six Months Ended
|
|
Year Ended October 31, |
|
Year Ended April 30, |
|
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
2009 |
|
2008 |
|
2007 1 |
|
2007 |
|
2006 2 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net asset value, beginning of period |
|
$ |
16.12 |
|
$ |
13.88 |
|
$ |
22.65 |
|
$ |
21.61 |
|
$ |
20.59 |
|
$ |
19.10 |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
0.35 |
|
|
0.76 |
|
|
1.08 |
|
|
0.50 |
|
|
0.84 |
|
|
0.39 |
|
|
Net realized and unrealized gains or losses on investments |
|
|
0.16 |
|
|
2.78 |
|
|
(8.10 |
) |
|
1.41 |
|
|
1.93 |
|
|
1.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations |
|
|
0.51 |
|
|
3.54 |
|
|
(7.02 |
) |
|
1.91 |
|
|
2.77 |
|
|
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to shareholders from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.39 |
) |
|
(0.52 |
) |
|
(1.28 |
) |
|
(0.47 |
) |
|
(1.09 |
) |
|
(0.69 |
) |
|
Net realized gains |
|
|
0 |
|
|
0 |
|
|
(0.43 |
) |
|
(0.40 |
) |
|
(0.66 |
) |
|
0 |
|
|
Tax basis return of capital |
|
|
0 |
|
|
(0.78 |
) |
|
(0.04 |
) |
|
0 |
|
|
0 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to shareholders |
|
|
(0.39 |
) |
|
(1.30 |
) |
|
(1.75 |
) |
|
(0.87 |
) |
|
(1.75 |
) |
|
(0.69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offering costs charged to capital |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
$ |
16.24 |
|
$ |
16.12 |
|
$ |
13.88 |
|
$ |
22.65 |
|
$ |
21.61 |
|
$ |
20.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period |
|
$ |
14.02 |
|
$ |
13.84 |
|
$ |
11.93 |
|
$ |
22.15 |
|
$ |
22.06 |
|
$ |
19.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return based on market value 4 |
|
|
4.13 |
% |
|
29.49 |
% |
|
(40.54 |
)% |
|
4.62 |
% |
|
26.00 |
% |
|
(1.16 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios and supplemental data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (thousands) |
|
$ |
187,986 |
|
$ |
186,593 |
|
$ |
160,610 |
|
$ |
262,092 |
|
$ |
249,600 |
|
$ |
235,819 |
|
|
Ratios to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses including waivers/reimbursements but excluding expense reductions |
|
|
1.19 |
% 5 |
|
1.19 |
% |
|
1.20 |
% |
|
1.14 |
% 5 |
|
1.20 |
% |
|
1.20 |
% 5 |
|
Expenses excluding waivers/reimbursements and expense reductions |
|
|
1.19 |
% 5 |
|
1.19 |
% |
|
1.20 |
% |
|
1.14 |
% 5 |
|
1.29 |
% |
|
1.27 |
% 5 |
|
Net investment income |
|
|
4.27 |
% 5 |
|
5.39 |
% |
|
5.51 |
% |
|
4.61 |
% 5 |
|
4.12 |
% |
|
3.96 |
% 5 |
|
Portfolio turnover rate |
|
|
13 |
% |
|
78 |
% |
|
67 |
% |
|
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 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 |
See Notes to Financial Statements
4
SCHEDULE OF INVESTMENTS
April 30, 2010 (unaudited)
|
|
|
Principal
|
|
Value |
|
||
|
|
|
|
|
|
|
||
|
CORPORATE BONDS 0.2% |
|
|
|
|
|
|
|
|
INDUSTRIALS 0.2% |
|
|
|
|
|
|
|
|
Commercial Services & Supplies 0.2% |
|
|
|
|
|
|
|
|
ARAMARK Corp., 8.50%, 02/01/2015 (cost $363,224) |
|
$ |
350,000 |
|
$ |
359,188 |
|
|
|
|
|
|
|
|
|
|
|
FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 12.4% |
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 1.2% |
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure 0.2% |
|
|
|
|
|
|
|
|
Royal Caribbean Cruises, Ltd., 5.625%, 01/27/2014 EUR |
|
|
255,000 |
|
|
328,485 |
|
|
|
|
|
|
|
|
|
|
|
Media 0.9% |
|
|
|
|
|
|
|
|
Central European Media Enterprises, Ltd., FRN, 2.62%, 05/15/2014 EUR |
|
|
500,000 |
|
|
559,209 |
|
|
UPC Germany GmbH, 9.625%, 12/01/2019 EUR |
|
|
450,000 |
|
|
641,093 |
|
|
UPC Holding BV, 8.00%, 11/01/2016 EUR |
|
|
250,000 |
|
|
335,359 |
|
|
Ziggo Bond Co. BV, 8.00%, 05/15/2018 EUR |
|
|
115,000 |
|
|
152,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,688,459 |
|
|
|
|
|
|
|
|
|
|
|
Multiline Retail 0.1% |
|
|
|
|
|
|
|
|
Marks & Spencer Group plc, 5.625%, 03/24/2014 GBP |
|
|
100,000 |
|
|
160,671 |
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 0.7% |
|
|
|
|
|
|
|
|
Food & Staples Retailing 0.4% |
|
|
|
|
|
|
|
|
Casino Guichard-Perrachon SA, 6.375%, 04/04/2013 EUR |
|
|
500,000 |
|
|
739,601 |
|
|
|
|
|
|
|
|
|
|
|
Tobacco 0.3% |
|
|
|
|
|
|
|
|
Imperial Tobacco Group plc, 8.375%, 02/17/2016 EUR |
|
|
300,000 |
|
|
496,424 |
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 7.5% |
|
|
|
|
|
|
|
|
Capital Markets 2.3% |
|
|
|
|
|
|
|
|
Ahold Finance USA, Inc., 6.50%, 03/14/2017 GBP |
|
|
200,000 |
|
|
335,699 |
|
|
Ambev International Finance Co., Ltd., 9.50%, 07/24/2017 BRL |
|
|
1,850,000 |
|
|
1,056,307 |
|
|
Goldman Sachs Group, Inc., 4.50%, 01/30/2017 EUR |
|
|
550,000 |
|
|
716,343 |
|
|
Merrill Lynch & Co., Inc., 10.71%, 03/08/2017 BRL |
|
|
2,000,000 |
|
|
1,143,104 |
|
|
Morgan Stanley, 10.09%, 05/03/2017 BRL |
|
|
2,000,000 |
|
|
1,110,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,361,765 |
|
|
|
|
|
|
|
|
|
|
|
Commercial Banks 3.5% |
|
|
|
|
|
|
|
|
International Bank for Reconstruction & Development, 5.75%, 02/17/2015 AUD |
|
|
5,950,000 |
|
|
5,453,313 |
|
|
KfW Bankengruppe, 4.875%, 01/15/2013 GBP |
|
|
235,000 |
|
|
387,303 |
|
|
Landwirtschaftliche Rentenbank, 5.75%, 01/21/2015 AUD |
|
|
850,000 |
|
|
770,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,610,878 |
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance 0.4% |
|
|
|
|
|
|
|
|
Cemex Finance, LLC, 9.625%, 12/14/2017 EUR |
|
|
90,000 |
|
|
123,725 |
|
|
SLM Corp., 5.375%, 12/15/2010 GBP |
|
|
185,000 |
|
|
282,352 |
|
|
Wind Acquisition Finance SpA, 9.75%, 12/01/2015 EUR |
|
|
250,000 |
|
|
352,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
758,911 |
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
5
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Principal
|
|
Value |
|
||
|
|
|
|
|
|
|
||
|
FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued |
|
|
|
|
|
|
|
|
FINANCIALS continued |
|
|
|
|
|
|
|
|
Diversified Financial Services 0.9% |
|
|
|
|
|
|
|
|
ABB International Finance, Ltd., 4.625%, 06/06/2013 EUR |
|
|
1,000,000 |
|
$ |
1,427,341 |
|
|
CEDC Financial Corporation International, Inc., 8.875%, 12/01/2016 EUR |
|
|
230,000 |
|
|
327,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,755,011 |
|
|
|
|
|
|
|
|
|
|
|
Thrifts & Mortgage Finance 0.4% |
|
|
|
|
|
|
|
|
Nationwide Building Society, FRN, 3.75%, 01/20/2015 EUR |
|
|
520,000 |
|
|
690,240 |
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIALS 1.2% |
|
|
|
|
|
|
|
|
Aerospace & Defense 0.4% |
|
|
|
|
|
|
|
|
Bombardier, Inc., 7.25%, 11/15/2016 EUR |
|
|
500,000 |
|
|
699,011 |
|
|
|
|
|
|
|
|
|
|
|
Building Products 0.1% |
|
|
|
|
|
|
|
|
HeidelbergCement AG, 8.00%, 01/31/2017 EUR |
|
|
200,000 |
|
|
275,943 |
|
|
|
|
|
|
|
|
|
|
|
Commercial Services & Supplies 0.3% |
|
|
|
|
|
|
|
|
Iron Mountain, Inc., 6.75%, 10/15/2018 EUR |
|
|
450,000 |
|
|
593,161 |
|
|
|
|
|
|
|
|
|
|
|
Machinery 0.3% |
|
|
|
|
|
|
|
|
Savcio Holdings, Ltd., 8.00%, 02/15/2013 EUR |
|
|
400,000 |
|
|
529,917 |
|
|
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors 0.1% |
|
|
|
|
|
|
|
|
Rexel SA, 8.25%, 12/15/2016 EUR |
|
|
100,000 |
|
|
139,802 |
|
|
|
|
|
|
|
|
|
|
|
MATERIALS 0.9% |
|
|
|
|
|
|
|
|
Chemicals 0.5% |
|
|
|
|
|
|
|
|
Kerling plc, 10.625%, 01/28/2017 EUR |
|
|
220,000 |
|
|
311,958 |
|
|
Rockwood Specialties Group, Inc., 7.625%, 11/15/2014 EUR |
|
|
450,000 |
|
|
608,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
920,098 |
|
|
|
|
|
|
|
|
|
|
|
Containers & Packaging 0.3% |
|
|
|
|
|
|
|
|
Owens-Illinois European Group BV, 6.875%, 03/31/2017 EUR |
|
|
390,000 |
|
|
527,055 |
|
|
|
|
|
|
|
|
|
|
|
Metals & Mining 0.1% |
|
|
|
|
|
|
|
|
New World Resources NV, 7.375%, 05/15/2015 EUR |
|
|
200,000 |
|
|
258,301 |
|
|
|
|
|
|
|
|
|
|
|
TELECOMMUNICATION SERVICES 0.5% |
|
|
|
|
|
|
|
|
Diversified Telecommunication Services 0.5% |
|
|
|
|
|
|
|
|
Telecom Italia SpA, 7.25%, 04/24/2012 EUR |
|
|
700,000 |
|
|
1,019,841 |
|
|
|
|
|
|
|
|
|
|
|
UTILITIES 0.4% |
|
|
|
|
|
|
|
|
Independent Power Producers & Energy Traders 0.1% |
|
|
|
|
|
|
|
|
Infinis plc, 9.125%, 12/15/2014 GBP |
|
|
75,000 |
|
|
118,770 |
|
|
|
|
|
|
|
|
|
|
|
Multi-Utilities 0.3% |
|
|
|
|
|
|
|
|
Veolia Environnement SA, 4.375%, 01/16/2017 EUR |
|
|
530,000 |
|
|
739,179 |
|
|
|
|
|
|
|
|
|
|
|
Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated) (cost $22,259,535) |
|
|
|
|
|
23,411,523 |
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
6
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Principal
|
|
Value |
|
||
|
|
|
|
|
|
|
||
|
FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 16.3% |
|
|
|
|
|
|
|
|
Canada, 6.25%, 06/15/2015 NZD |
|
|
4,785,000 |
|
$ |
3,564,975 |
|
|
Hungary, 6.75%, 02/24/2017 HUF |
|
|
614,500,000 |
|
|
3,118,854 |
|
|
Korea: |
|
|
|
|
|
|
|
|
5.25%, 09/10/2015 KRW |
|
|
4,700,000,000 |
|
|
4,418,598 |
|
|
5.25%, 03/10/2027 KRW |
|
|
1,903,000,000 |
|
|
1,758,516 |
|
|
Malaysia, 4.24%, 02/07/2018 MYR |
|
|
11,450,000 |
|
|
3,667,890 |
|
|
Mexico, 10.00%, 12/05/2024 MXN |
|
|
70,230,000 |
|
|
6,896,227 |
|
|
Morocco, 5.375%, 06/27/2017 EUR |
|
|
450,000 |
|
|
627,612 |
|
|
Norway, 4.25%, 05/19/2017 NOK |
|
|
16,500,000 |
|
|
2,960,090 |
|
|
Peru, 7.50%, 10/14/2014 EUR |
|
|
250,000 |
|
|
383,624 |
|
|
Poland, 5.50%, 10/25/2019 PLN |
|
|
8,700,000 |
|
|
2,917,183 |
|
|
Ukraine, 4.95%, 10/13/2015 EUR |
|
|
250,000 |
|
|
297,945 |
|
|
|
|
|
|
|
|
|
|
|
Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated) (cost $31,168,412) |
|
|
|
|
|
30,611,514 |
|
|
|
|
|
|
|
|
|
|
|
YANKEE OBLIGATIONS – CORPORATE 2.1% |
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 0.3% |
|
|
|
|
|
|
|
|
Multiline Retail 0.3% |
|
|
|
|
|
|
|
|
Marks & Spencer Group plc, 6.25%, 12/01/2017 144A |
|
$ |
500,000 |
|
|
519,764 |
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 0.3% |
|
|
|
|
|
|
|
|
Food & Staples Retailing 0.3% |
|
|
|
|
|
|
|
|
Tesco plc, 5.50%, 11/15/2017 144A |
|
|
500,000 |
|
|
530,607 |
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 0.8% |
|
|
|
|
|
|
|
|
Capital Markets 0.2% |
|
|
|
|
|
|
|
|
BP Capital Markets plc, 5.25%, 11/07/2013 |
|
|
400,000 |
|
|
441,605 |
|
|
|
|
|
|
|
|
|
|
|
Commercial Banks 0.3% |
|
|
|
|
|
|
|
|
Eurasian Development Bank, 7.375%, 09/29/2014 144A |
|
|
500,000 |
|
|
537,500 |
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance 0.3% |
|
|
|
|
|
|
|
|
Sable International Finance, Ltd., 7.75%, 02/15/2017 144A |
|
|
200,000 |
|
|
207,500 |
|
|
Virgin Media Finance plc, 9.125%, 08/15/2016 |
|
|
330,000 |
|
|
352,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
559,775 |
|
|
|
|
|
|
|
|
|
|
|
UTILITIES 0.7% |
|
|
|
|
|
|
|
|
Electric Utilities 0.7% |
|
|
|
|
|
|
|
|
E.ON AG, 5.80%, 04/30/2018 |
|
|
1,200,000 |
|
|
1,300,330 |
|
|
|
|
|
|
|
|
|
|
|
Total Yankee Obligations – Corporate (cost $3,517,822) |
|
|
|
|
|
3,889,581 |
|
|
|
|
|
|
|
|
|
|
|
YANKEE OBLIGATIONS – GOVERNMENT 0.9% |
|
|
|
|
|
|
|
|
Colombia, 7.375%, 03/18/2019 |
|
|
600,000 |
|
|
689,400 |
|
|
Georgia, 7.50%, 04/15/2013 |
|
|
250,000 |
|
|
258,625 |
|
|
Philippines, 8.00%, 01/15/2016 |
|
|
350,000 |
|
|
420,420 |
|
|
Vietnam, 6.75%, 01/29/2020 |
|
|
300,000 |
|
|
311,656 |
|
|
|
|
|
|
|
|
|
|
|
Total Yankee Obligations – Government (cost $1,519,662) |
|
|
|
|
|
1,680,101 |
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
7
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Country |
|
Shares |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS 62.6% |
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 5.5% |
|
|
|
|
|
|
|
|
|
Auto Components 0.3% |
|
|
|
|
|
|
|
|
|
Nokian Renkaat Oyj |
|
Finland |
|
22,527 |
|
$ |
529,141 |
|
|
|
|
|
|
|
|
|
|
|
|
Automobiles 1.2% |
|
|
|
|
|
|
|
|
|
Daimler AG |
|
Germany |
|
17,857 |
|
|
921,450 |
|
|
Isuzu Motors, Ltd. * |
|
Japan |
|
277,000 |
|
|
874,407 |
|
|
Toyota Motor Corp. |
|
Japan |
|
12,100 |
|
|
467,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,263,160 |
|
|
|
|
|
|
|
|
|
|
|
|
Distributors 0.3% |
|
|
|
|
|
|
|
|
|
Kloeckner & Co., SE * |
|
Germany |
|
19,253 |
|
|
513,161 |
|
|
|
|
|
|
|
|
|
|
|
|
Household Durables 0.7% |
|
|
|
|
|
|
|
|
|
Bovis Homes Group plc * |
|
United Kingdom |
|
34,270 |
|
|
221,133 |
|
|
Makita Corp. |
|
Japan |
|
38,000 |
|
|
1,178,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,399,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Internet & Catalog Retail 0.7% |
|
|
|
|
|
|
|
|
|
N. Brown Group plc |
|
United Kingdom |
|
315,626 |
|
|
1,317,319 |
|
|
|
|
|
|
|
|
|
|
|
|
Media 1.8% |
|
|
|
|
|
|
|
|
|
Pearson plc |
|
United Kingdom |
|
69,673 |
|
|
1,118,502 |
|
|
Vivendi SA |
|
France |
|
43,833 |
|
|
1,153,668 |
|
|
Wolters Kluwer NV |
|
Netherlands |
|
21,170 |
|
|
434,148 |
|
|
WPP plc |
|
United Kingdom |
|
70,265 |
|
|
747,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,453,354 |
|
|
|
|
|
|
|
|
|
|
|
|
Multiline Retail 0.5% |
|
|
|
|
|
|
|
|
|
PPR SA |
|
France |
|
6,766 |
|
|
905,431 |
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES 8.1% |
|
|
|
|
|
|
|
|
|
Beverages 1.9% |
|
|
|
|
|
|
|
|
|
Anheuser-Busch InBev NV |
|
Belgium |
|
42,369 |
|
|
2,061,560 |
|
|
Carlsberg AS, Class B |
|
Denmark |
|
11,357 |
|
|
924,224 |
|
|
Foster’s Group, Ltd. |
|
Australia |
|
130,081 |
|
|
652,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,638,696 |
|
|
|
|
|
|
|
|
|
|
|
|
Food Products 2.4% |
|
|
|
|
|
|
|
|
|
Nestle SA |
|
Switzerland |
|
28,139 |
|
|
1,373,310 |
|
|
Unilever NV |
|
Netherlands |
|
100,198 |
|
|
3,062,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,435,445 |
|
|
|
|
|
|
|
|
|
|
|
|
Household Products 1.4% |
|
|
|
|
|
|
|
|
|
McBride plc |
|
United Kingdom |
|
210,429 |
|
|
603,113 |
|
|
Reckitt Benckiser Group plc |
|
United Kingdom |
|
38,534 |
|
|
1,999,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,603,023 |
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
8
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Country |
|
Shares |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS continued |
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES continued |
|
|
|
|
|
|
|
|
|
Tobacco 2.4% |
|
|
|
|
|
|
|
|
|
British American Tobacco plc |
|
United Kingdom |
|
80,273 |
|
$ |
2,521,220 |
|
|
Imperial Tobacco Group plc |
|
United Kingdom |
|
42,062 |
|
|
1,200,649 |
|
|
Swedish Match AB |
|
Sweden |
|
39,301 |
|
|
897,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,619,034 |
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY 4.5% |
|
|
|
|
|
|
|
|
|
Energy Equipment & Services 1.0% |
|
|
|
|
|
|
|
|
|
Fred. Olsen Energy ASA |
|
Norway |
|
23,110 |
|
|
846,163 |
|
|
Technip SA |
|
France |
|
13,836 |
|
|
1,105,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,951,853 |
|
|
|
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 3.5% |
|
|
|
|
|
|
|
|
|
BG Group plc |
|
United Kingdom |
|
34,815 |
|
|
584,530 |
|
|
Canadian Natural Resources, Ltd. |
|
Canada |
|
11,557 |
|
|
890,042 |
|
|
Cenovus Energy, Inc. |
|
Canada |
|
25,993 |
|
|
764,334 |
|
|
EnCana Corp. |
|
Canada |
|
25,993 |
|
|
859,780 |
|
|
StatoilHydro ASA |
|
Norway |
|
25,816 |
|
|
623,201 |
|
|
Total SA |
|
France |
|
51,046 |
|
|
2,766,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,487,915 |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 11.5% |
|
|
|
|
|
|
|
|
|
Commercial Banks 4.3% |
|
|
|
|
|
|
|
|
|
Banco Santander SA |
|
Spain |
|
36,977 |
|
|
464,561 |
|
|
Bank Leumi Le-Israel BM * |
|
Israel |
|
212,958 |
|
|
910,067 |
|
|
HSBC Holdings plc – London Exchange |
|
United Kingdom |
|
203,984 |
|
|
2,078,066 |
|
|
Nordea Bank AB |
|
Sweden |
|
84,000 |
|
|
824,424 |
|
|
Sparebanken Nord-Norge |
|
Norway |
|
51,900 |
|
|
987,298 |
|
|
Standard Chartered plc |
|
United Kingdom |
|
39,977 |
|
|
1,065,614 |
|
|
Svenska Handelsbanken, Ser. A |
|
Sweden |
|
30,500 |
|
|
859,861 |
|
|
Westpac Banking Corp. |
|
Australia |
|
37,237 |
|
|
925,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,115,333 |
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial Services 2.0% |
|
|
|
|
|
|
|
|
|
ASX, Ltd. |
|
Australia |
|
42,047 |
|
|
1,272,646 |
|
|
Deutsche Boerse AG |
|
Germany |
|
14,930 |
|
|
1,163,101 |
|
|
Guoco Group, Ltd. |
|
Bermuda |
|
76,000 |
|
|
788,065 |
|
|
Hellenic Exchanges Holding SA |
|
Greece |
|
73,576 |
|
|
605,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,828,892 |
|
|
|
|
|
|
|
|
|
|
|
|
Insurance 4.7% |
|
|
|
|
|
|
|
|
|
AMP, Ltd. |
|
Australia |
|
111,097 |
|
|
638,781 |
|
|
AXA SA |
|
France |
|
22,309 |
|
|
443,435 |
|
|
Lancashire Holdings plc |
|
Bermuda |
|
242,760 |
|
|
1,717,840 |
|
See Notes to Financial Statements
9
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Country |
|
Shares |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS continued |
|
|
|
|
|
|
|
|
|
FINANCIALS continued |
|
|
|
|
|
|
|
|
|
Insurance continued |
|
|
|
|
|
|
|
|
|
Muenchener Rueckversicherungs-Gesellschaft AG |
|
Germany |
|
16,455 |
|
$ |
2,325,478 |
|
|
Sampo Oyj, Class A |
|
Finland |
|
26,368 |
|
|
650,618 |
|
|
Scor SE |
|
France |
|
24,358 |
|
|
573,916 |
|
|
Suncorp-Metway, Ltd. |
|
Australia |
|
78,058 |
|
|
644,644 |
|
|
Zurich Financial Services AG |
|
Switzerland |
|
7,918 |
|
|
1,765,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,760,069 |
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Investment Trusts (REITs) 0.5% |
|
|
|
|
|
|
|
|
|
Nippon Building Fund, Inc. |
|
Japan |
|
64 |
|
|
537,235 |
|
|
Parkway Life |
|
Singapore |
|
577 |
|
|
558 |
|
|
Westfield Group Australia |
|
Australia |
|
32,290 |
|
|
382,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
919,822 |
|
|
|
|
|
|
|
|
|
|
|
|
HEALTH CARE 3.1% |
|
|
|
|
|
|
|
|
|
Health Care Equipment & Supplies 0.3% |
|
|
|
|
|
|
|
|
|
Fresenius SE |
|
Germany |
|
6,329 |
|
|
451,118 |
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals 2.8% |
|
|
|
|
|
|
|
|
|
AstraZeneca plc |
|
United Kingdom |
|
19,730 |
|
|
872,361 |
|
|
Bayer AG |
|
Germany |
|
11,526 |
|
|
737,436 |
|
|
GlaxoSmithKline plc |
|
United Kingdom |
|
92,859 |
|
|
1,719,739 |
|
|
Novartis AG |
|
Switzerland |
|
16,707 |
|
|
852,411 |
|
|
Roche Holding AG |
|
Switzerland |
|
7,271 |
|
|
1,148,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,330,278 |
|
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIALS 7.7% |
|
|
|
|
|
|
|
|
|
Air Freight & Logistics 0.9% |
|
|
|
|
|
|
|
|
|
Oesterreichische Post AG |
|
Austria |
|
56,450 |
|
|
1,621,642 |
|
|
|
|
|
|
|
|
|
|
|
|
Building Products 0.6% |
|
|
|
|
|
|
|
|
|
Assa Abloy AB, Class B |
|
Sweden |
|
49,000 |
|
|
1,139,677 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Services & Supplies 0.8% |
|
|
|
|
|
|
|
|
|
Brunel International NV |
|
Netherlands |
|
18,435 |
|
|
674,160 |
|
|
SThree plc |
|
United Kingdom |
|
151,128 |
|
|
841,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,515,197 |
|
|
|
|
|
|
|
|
|
|
|
|
Construction & Engineering 0.4% |
|
|
|
|
|
|
|
|
|
Skanska AB, B Shares |
|
Sweden |
|
42,200 |
|
|
703,046 |
|
|
|
|
|
|
|
|
|
|
|
|
Machinery 1.5% |
|
|
|
|
|
|
|
|
|
Komatsu, Ltd. |
|
Japan |
|
24,300 |
|
|
490,415 |
|
|
Sandvik AB |
|
Sweden |
|
68,000 |
|
|
984,324 |
|
|
Sumitomo Heavy Industries, Ltd. |
|
Japan |
|
199,000 |
|
|
1,319,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,794,148 |
|
|
|
|
|
|
|
|
|
|
|
|
Marine 0.3% |
|
|
|
|
|
|
|
|
|
Nippon Yusen K. K. |
|
Japan |
|
155,000 |
|
|
636,734 |
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
10
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Country |
|
Shares |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS continued |
|
|
|
|
|
|
|
|
|
INDUSTRIALS continued |
|
|
|
|
|
|
|
|
|
Professional Services 1.7% |
|
|
|
|
|
|
|
|
|
Hays plc |
|
United Kingdom |
|
1,099,776 |
|
$ |
1,879,650 |
|
|
Randstad Holding NV * |
|
Netherlands |
|
15,564 |
|
|
793,438 |
|
|
USG People NV * |
|
Netherlands |
|
32,353 |
|
|
569,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,242,513 |
|
|
|
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors 0.8% |
|
|
|
|
|
|
|
|
|
Ashtead Group plc |
|
United Kingdom |
|
542,726 |
|
|
984,515 |
|
|
Travis Perkins plc * |
|
United Kingdom |
|
42,952 |
|
|
552,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,537,301 |
|
|
|
|
|
|
|
|
|
|
|
|
Transportation Infrastructure 0.7% |
|
|
|
|
|
|
|
|
|
MAP Group |
|
Australia |
|
428,998 |
|
|
1,228,760 |
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION TECHNOLOGY 2.6% |
|
|
|
|
|
|
|
|
|
Internet Software & Services 1.1% |
|
|
|
|
|
|
|
|
|
Monster Worldwide, Inc. * |
|
United States |
|
80,445 |
|
|
1,402,156 |
|
|
Netease.com, Inc. * |
|
Cayman Islands |
|
17,064 |
|
|
595,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,997,178 |
|
|
|
|
|
|
|
|
|
|
|
|
Office Electronics 0.5% |
|
|
|
|
|
|
|
|
|
Neopost |
|
France |
|
12,529 |
|
|
995,968 |
|
|
|
|
|
|
|
|
|
|
|
|
Semiconductors & Semiconductor Equipment 1.0% |
|
|
|
|
|
|
|
|
|
Elpida Memory, Inc. * |
|
Japan |
|
45,300 |
|
|
950,145 |
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
|
Taiwan |
|
165,441 |
|
|
322,688 |
|
|
Taiwan Semiconductor Manufacturing Co., Ltd., ADR |
|
Taiwan |
|
54,343 |
|
|
575,492 |
|
|
United Microelectronics Corp. * |
|
Taiwan |
|
2 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,848,326 |
|
|
|
|
|
|
|
|
|
|
|
|
MATERIALS 3.7% |
|
|
|
|
|
|
|
|
|
Chemicals 0.9% |
|
|
|
|
|
|
|
|
|
Akzo Nobel NV |
|
Netherlands |
|
29,920 |
|
|
1,758,700 |
|
|
|
|
|
|
|
|
|
|
|
|
Containers & Packaging 0.2% |
|
|
|
|
|
|
|
|
|
Rexam plc |
|
United Kingdom |
|
77,741 |
|
|
382,074 |
|
|
|
|
|
|
|
|
|
|
|
|
Metals & Mining 2.6% |
|
|
|
|
|
|
|
|
|
Antofagasta plc |
|
United Kingdom |
|
91,354 |
|
|
1,393,032 |
|
|
Barrick Gold Corp. |
|
Canada |
|
18,000 |
|
|
784,997 |
|
|
BHP Billiton, Ltd. |
|
Australia |
|
34,939 |
|
|
1,276,408 |
|
|
voestalpine AG |
|
Austria |
|
35,021 |
|
|
1,322,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,776,550 |
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
11
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Country |
|
Shares |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS continued |
|
|
|
|
|
|
|
|
|
TELECOMMUNICATION SERVICES 9.4% |
|
|
|
|
|
|
|
|
|
Diversified Telecommunication Services 6.4% |
|
|
|
|
|
|
|
|
|
Belgacom SA |
|
Belgium |
|
20,337 |
|
$ |
713,230 |
|
|
France Telecom |
|
France |
|
56,953 |
|
|
1,248,427 |
|
|
Hellenic Telecommunications Organization SA * |
|
Greece |
|
119,957 |
|
|
1,342,474 |
|
|
Hrvatske Telekom SP, GDR |
|
Croatia |
|
10,000 |
|
|
501,453 |
|
|
KT Corp. |
|
South Korea |
|
18,570 |
|
|
828,744 |
|
|
KT Corp., ADR |
|
South Korea |
|
39,540 |
|
|
893,604 |
|
|
Maroc Telecom |
|
Morocco |
|
47,703 |
|
|
918,240 |
|
|
Tele Norte Leste Participacoes SA, ADR |
|
Brazil |
|
32,858 |
|
|
488,270 |
|
|
Telecom Argentina SA, ADR |
|
Argentina |
|
50,000 |
|
|
977,500 |
|
|
Telecom Corp. of New Zealand, Ltd. |
|
New Zealand |
|
559,556 |
|
|
879,876 |
|
|
Telefonica SA |
|
Spain |
|
107,851 |
|
|
2,421,989 |
|
|
TeliaSonera AB |
|
Sweden |
|
129,500 |
|
|
889,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,103,303 |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Telecommunication Services 3.0% |
|
|
|
|
|
|
|
|
|
China Mobile, Ltd. |
|
Hong Kong |
|
192,500 |
|
|
1,884,789 |
|
|
Mobistar SA |
|
Belgium |
|
11,797 |
|
|
722,089 |
|
|
Partner Communications Co., Ltd. |
|
Israel |
|
92,718 |
|
|
1,820,259 |
|
|
StarHub, Ltd. |
|
Singapore |
|
651,500 |
|
|
1,104,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,531,200 |
|
|
|
|
|
|
|
|
|
|
|
|
UTILITIES 6.5% |
|
|
|
|
|
|
|
|
|
Electric Utilities 2.7% |
|
|
|
|
|
|
|
|
|
E.ON AG |
|
Germany |
|
9,636 |
|
|
355,831 |
|
|
Sechilienne-Sidec |
|
France |
|
29,111 |
|
|
940,925 |
|
|
Spark Infrastructure Group |
|
Australia |
|
1,771,370 |
|
|
1,978,805 |
|
|
TERNA SpA |
|
Italy |
|
468,151 |
|
|
1,898,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,173,780 |
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utilities 1.0% |
|
|
|
|
|
|
|
|
|
Snam Rete Gas SpA |
|
Italy |
|
398,778 |
|
|
1,889,543 |
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Utilities 2.2% |
|
|
|
|
|
|
|
|
|
National Grid plc |
|
United Kingdom |
|
202,195 |
|
|
1,952,366 |
|
|
RWE AG |
|
Germany |
|
16,575 |
|
|
1,356,293 |
|
|
Suez Environnement SA |
|
France |
|
38,355 |
|
|
831,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,140,608 |
|
|
|
|
|
|
|
|
|
|
|
|
Water Utilities 0.6% |
|
|
|
|
|
|
|
|
|
Pennon Group plc |
|
United Kingdom |
|
82,674 |
|
|
657,356 |
|
|
Severn Trent plc |
|
United Kingdom |
|
25,895 |
|
|
458,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,116,253 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks (cost $118,570,256) |
|
|
|
|
|
|
117,654,832 |
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
12
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
|
|
Country |
|
Shares |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED STOCKS 1.4% |
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY 0.4% |
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods 0.4% |
|
|
|
|
|
|
|
|
|
Hugo Boss AG, Var. Rate Pfd. |
|
Germany |
|
16,739 |
|
$ |
724,117 |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIALS 0.7% |
|
|
|
|
|
|
|
|
|
Capital Markets 0.6% |
|
|
|
|
|
|
|
|
|
Credit Suisse Group AG, Var. Rate Pfd. |
|
United Kingdom |
|
45,000 |
|
|
1,160,100 |
|
|
|
|
|
|
|
|
|
|
|
|
Insurance 0.1% |
|
|
|
|
|
|
|
|
|
Allianz SE, Var. Rate Pfd. |
|
Germany |
|
9,000 |
|
|
227,700 |
|
|
|
|
|
|
|
|
|
|
|
|
HEALTH CARE 0.3% |
|
|
|
|
|
|
|
|
|
Health Care Equipment & Supplies 0.3% |
|
|
|
|
|
|
|
|
|
Fresenius AG, Var. Rate Pfd. |
|
Germany |
|
8,734 |
|
|
632,025 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Preferred Stocks (cost $2,388,464) |
|
|
|
|
|
|
2,743,942 |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER 2.0% |
|
|
|
|
|
|
|
|
|
Bell Aliant Regional Communications Income Fund 144A |
|
Canada |
|
5,263 |
|
|
131,393 |
|
|
Bell Aliant Regional Communications Income Fund |
|
Canada |
|
76,652 |
|
|
1,913,659 |
|
|
Yellow Pages Income Fund |
|
Canada |
|
250,727 |
|
|
1,680,893 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Other (cost $3,260,479) |
|
|
|
|
|
|
3,725,945 |
|
|
|
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENTS 0.9% |
|
|
|
|
|
|
|
|
|
MUTUAL FUND SHARES 0.9% |
|
|
|
|
|
|
|
|
|
Evergreen Institutional U.S. Government Money Market Fund, Class I, 0.01% q ø (cost $1,679,348) |
|
United States |
|
1,679,348 |
|
|
1,679,348 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments (cost $184,727,202) 98.8% |
|
|
|
|
|
|
185,755,974 |
|
|
Other Assets and Liabilities 1.2% |
|
|
|
|
|
|
2,230,515 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0% |
|
|
|
|
|
$ |
187,986,489 |
|
|
|
|
|
|
|
|
|
|
|
|
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. |
See Notes to Financial Statements
13
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
|
Summary of Abbreviations |
|
|
ADR |
American Depository Receipt |
|
AUD |
Australian Dollar |
|
BRL |
Brazil Real |
|
EUR |
Euro |
|
FRN |
Floating Rate Note |
|
GBP |
Great British Pound |
|
GDR |
Global Depository Receipt |
|
HUF |
Hungarian Forint |
|
KRW |
Republic of Korea Won |
|
MXN |
Mexican Peso |
|
MYR |
Malaysian Ringgit |
|
NOK |
Norwegian Krone |
|
NZD |
New Zealand Dollar |
|
PLN |
Polish Zloty |
The following table shows the percent of total long-term investments by geographic location as of April 30, 2010:
|
United Kingdom |
|
16.4 |
% |
|
France |
|
6.9 |
% |
|
United States |
|
6.6 |
% |
|
Germany |
|
6.2 |
% |
|
Canada |
|
6.1 |
% |
|
Netherlands |
|
6.0 |
% |
|
Australia |
|
4.9 |
% |
|
South Korea |
|
4.3 |
% |
|
Mexico |
|
3.7 |
% |
|
Japan |
|
3.5 |
% |
|
Sweden |
|
3.4 |
% |
|
Norway |
|
2.9 |
% |
|
Switzerland |
|
2.8 |
% |
|
Italy |
|
2.1 |
% |
|
Malaysia |
|
2.0 |
% |
|
Belgium |
|
1.9 |
% |
|
Hungary |
|
1.7 |
% |
|
Bermuda |
|
1.7 |
% |
|
Austria |
|
1.6 |
% |
|
Poland |
|
1.6 |
% |
|
Spain |
|
1.6 |
% |
|
Israel |
|
1.5 |
% |
|
Greece |
|
1.1 |
% |
|
Hong Kong |
|
1.0 |
% |
|
Luxembourg |
|
0.9 |
% |
|
Morocco |
|
0.8 |
% |
|
Brazil |
|
0.8 |
% |
|
Finland |
|
0.6 |
% |
|
Singapore |
|
0.6 |
% |
|
Argentina |
|
0.5 |
% |
|
Denmark |
|
0.5 |
% |
|
Taiwan |
|
0.5 |
% |
|
New Zealand |
|
0.5 |
% |
|
Cayman Islands |
|
0.4 |
% |
|
Colombia |
|
0.4 |
% |
|
Kazakhstan |
|
0.3 |
% |
|
South Africa |
|
0.3 |
% |
|
Croatia |
|
0.3 |
% |
|
Philippines |
|
0.2 |
% |
|
Peru |
|
0.2 |
% |
|
Liberia |
|
0.2 |
% |
|
Vietnam |
|
0.2 |
% |
|
Ukraine |
|
0.2 |
% |
|
Georgia |
|
0.1 |
% |
|
|
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
The following table shows portfolio composition as a percent of total long-term investments as of April 30, 2010:
|
Financials |
|
21.1 |
% |
|
Foreign Bond – Government |
|
16.6 |
% |
|
Telecommunication Services |
|
10.2 |
% |
|
Consumer Staples |
|
9.3 |
% |
|
Industrials |
|
9.2 |
% |
|
Utilities |
|
7.9 |
% |
|
Consumer Discretionary |
|
7.4 |
% |
|
Materials |
|
4.7 |
% |
|
Energy |
|
4.6 |
% |
|
Health Care |
|
3.5 |
% |
|
Information Technology |
|
2.6 |
% |
|
Yankee Obligations – Government |
|
0.9 |
% |
|
Other |
|
2.0 |
% |
|
|
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
See Notes to Financial Statements
14
SCHEDULE OF INVESTMENTS continued
April 30, 2010 (unaudited)
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, 2010:
|
AAA |
|
15.6 |
% |
|
AA |
|
6.5 |
% |
|
A |
|
43.9 |
% |
|
BBB |
|
16.6 |
% |
|
BB |
|
4.4 |
% |
|
B |
|
10.3 |
% |
|
NR |
|
2.7 |
% |
|
|
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
The following table shows the percent of total bonds based on effective maturity as of April 30, 2010:
|
Less than 1 year |
|
4.3 |
% |
|
1 to 3 year(s) |
|
3.3 |
% |
|
3 to 5 years |
|
19.7 |
% |
|
5 to 10 years |
|
58.8 |
% |
|
10 to 20 years |
|
13.9 |
% |
|
|
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
See Notes to Financial Statements
15
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2010 (unaudited)
|
Assets |
|
|
|
|
|
Investments in unaffiliated issuers, at value (cost $183,047,854) |
|
$ |
184,076,626 |
|
|
Investments in affiliated issuers, at value (cost $1,679,348) |
|
|
1,679,348 |
|
|
|
|
|
|
|
|
Total investments |
|
|
185,755,974 |
|
|
Foreign currency, at value (cost $1,291,405) |
|
|
1,273,199 |
|
|
Receivable for securities sold |
|
|
391,461 |
|
|
Dividends and interest receivable |
|
|
1,935,098 |
|
|
Receivable for securities lending income |
|
|
22,523 |
|
|
|
|
|
|
|
|
Total assets |
|
|
189,378,255 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Dividends payable |
|
|
749,311 |
|
|
Payable for securities purchased |
|
|
419,764 |
|
|
Written options, at value (premiums received $206,428) |
|
|
111,806 |
|
|
Advisory fee payable |
|
|
14,718 |
|
|
Due to other related parties |
|
|
775 |
|
|
Accrued expenses and other liabilities |
|
|
95,392 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,391,766 |
|
|
|
|
|
|
|
|
Net assets |
|
$ |
187,986,489 |
|
|
|
|
|
|
|
|
Net assets represented by |
|
|
|
|
|
Paid-in capital |
|
$ |
211,223,684 |
|
|
Overdistributed net investment income |
|
|
(1,339,825 |
) |
|
Accumulated net realized losses on investments |
|
|
(23,009,866 |
) |
|
Net unrealized gains on investments |
|
|
1,112,496 |
|
|
|
|
|
|
|
|
Net assets |
|
$ |
187,986,489 |
|
|
|
|
|
|
|
|
Net asset value per share |
|
|
|
|
|
Based on $187,986,489 divided by 11,572,378 common shares issued and outstanding (unlimited number of shares authorized) |
|
$ |
16.24 |
|
|
|
|
|
|
|
See Notes to Financial Statements
16
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2010 (unaudited)
|
Investment income |
|
|
|
|
|
Dividends (net of foreign withholding taxes of $271,282) |
|
$ |
3,067,825 |
|
|
Interest |
|
|
2,052,612 |
|
|
Securities lending |
|
|
32,502 |
|
|
|
|
|
|
|
|
Total investment income |
|
|
5,152,939 |
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Advisory fee |
|
|
895,352 |
|
|
Administrative services fee |
|
|
47,124 |
|
|
Transfer agent fees |
|
|
15,200 |
|
|
Trustees’ fees and expenses |
|
|
2,679 |
|
|
Printing and postage expenses |
|
|
35,301 |
|
|
Custodian and accounting fees |
|
|
88,697 |
|
|
Professional fees |
|
|
27,098 |
|
|
Other |
|
|
13,089 |
|
|
|
|
|
|
|
|
Total expenses |
|
|
1,124,540 |
|
|
|
|
|
|
|
|
Net investment income |
|
|
4,028,399 |
|
|
|
|
|
|
|
|
Net realized and unrealized gains or losses on investments |
|
|
|
|
|
Net realized gains or losses on: |
|
|
|
|
|
Securities in unaffiliated issuers |
|
|
(354,194 |
) |
|
Foreign currency related transactions |
|
|
(187,536 |
) |
|
Written options |
|
|
985,070 |
|
|
|
|
|
|
|
|
Net realized gains on investments |
|
|
443,340 |
|
|
|
|
|
|
|
|
Net change in unrealized gains or losses on: |
|
|
|
|
|
Securities in unaffiliated issuers |
|
|
1,990,392 |
|
|
Foreign currency related transactions |
|
|
(72,021 |
) |
|
Written options |
|
|
(500,405 |
) |
|
|
|
|
|
|
|
Net change in unrealized gains or losses on investments |
|
|
1,417,966 |
|
|
|
|
|
|
|
|
Net realized and unrealized gains or losses on investments |
|
|
1,861,306 |
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations |
|
$ |
5,889,705 |
|
|
|
|
|
|
|
See Notes to Financial Statements
17
STATEMENTS OF CHANGES IN NET ASSETS
|
|
|
Six Months Ended
|
|
Year Ended
|
|
||
|
|
|
|
|
|
|
||
|
Operations |
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
4,028,399 |
|
$ |
8,793,843 |
|
|
Net realized gains or losses on investments |
|
|
443,340 |
|
|
(23,347,465 |
) |
|
Net change in unrealized gains or losses on investments |
|
|
1,417,966 |
|
|
55,623,769 |
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations |
|
|
5,889,705 |
|
|
41,070,147 |
|
|
|
|
|
|
|
|
|
|
|
Distributions to shareholders from |
|
|
|
|
|
|
|
|
Net investment income |
|
|
(4,495,869 |
) |
|
(6,003,501 |
) |
|
Tax basis return of capital |
|
|
0 |
|
|
(9,083,986 |
) |
|
|
|
|
|
|
|
|
|
|
Total distributions to shareholders |
|
|
(4,495,869 |
) |
|
(15,087,487 |
) |
|
|
|
|
|
|
|
|
|
|
Total increase in net assets |
|
|
1,393,836 |
|
|
25,982,660 |
|
|
Net assets |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
186,592,653 |
|
|
160,609,993 |
|
|
|
|
|
|
|
|
|
|
|
End of period |
|
$ |
187,986,489 |
|
$ |
186,592,653 |
|
|
|
|
|
|
|
|
|
|
|
Overdistributed net investment income |
|
$ |
(1,339,825 |
) |
$ |
(872,355 |
) |
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements
18
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. Management has considered the circumstances under which the Fund should recognize or make disclosures regarding events or transactions occurring subsequent to the balance sheet date through the date the financial statements are issued. Adjustments or additional disclosures, if any, have been included in these financial statements.
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. If there has been no sale, the securities are valued at the mean between bid and asked prices. Non-listed preferred securities are valued using evaluated prices determined by an independent pricing service which takes into consideration such factors as similar security prices, spreads, liquidity, benchmark quotes and market conditions. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers who use prices provided by market makers or estimates of fair market value obtained from yield data relating to investments or securities with similar characteristics.
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
19
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
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 fair market value obtained from yield data relating to investments or securities with similar characteristics.
In January 2010, the Fund changed its pricing for all evaluated prices for taxable fixed income securities and non-listed preferred stocks from mean to bid prices. The change was the result of the investment advisor’s analysis of which price estimate (mean or bid) provided the better estimate of value. The estimated impact on the Fund’s net asset value (NAV) per share on the day of the change was a decrease of approximately $0.02.
Short-term securities of sufficient credit quality with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates fair 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 fair value are valued at fair value as determined by the investment advisor in good faith, according to procedures approved by the Board of Trustees.
The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.
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
The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. 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
20
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains or losses on the contracts. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty.
d. Securities lending
The Fund may lend its securities to certain qualified brokers in order to earn additional income. The Fund receives compensation in the form of fees or interest earned on the investment of any cash collateral received. The Fund also continues to receive interest and dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a market value at least equal to the market value of the securities on loan. In the event of default or bankruptcy by the borrower, the Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.
e. Options
The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. 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.
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.
Options traded on an exchange are regulated and terms of the options are standardized. Options traded over the counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk is mitigated by having a master netting arrangement
21
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
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. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectibility of interest is reasonably assured, the debt obligation is removed from non-accrual status. 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’s income and excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal, Massachusetts and Delaware revenue authorities.
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”), a subsidiary of Wells Fargo & Company (“Wells Fargo”), 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 Advisers, LLC, an affiliate of EIMC and a majority-owned subsidiary of Wells Fargo, is the investment sub-advisor to the Fund 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 affiliated issuers on the Statement of Operations.
22
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
EIMC also serves as the administrator to the Fund providing the Fund with facilities, equipment and personnel. EIMC 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, 2010 and the year ended October 31, 2009, the Fund did not issue any new shares.
5. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were $28,878,892 and $22,802,989, respectively, for the six months ended April 30, 2010.
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
|
Level 1 – quoted prices in active markets for identical securities Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
23
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
As of April 30, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:
|
Investments in Securities |
|
Quoted Prices
|
|
Significant
|
|
Significant
|
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks |
|
$ |
8,231,197 |
|
|
$ |
109,423,635 |
|
$ |
0 |
|
$ |
117,654,832 |
|
|
Preferred stocks |
|
|
227,700 |
|
|
|
2,516,242 |
|
|
0 |
|
|
2,743,942 |
|
|
Corporate bonds |
|
|
0 |
|
|
|
359,188 |
|
|
0 |
|
|
359,188 |
|
|
Foreign bonds – corporate |
|
|
0 |
|
|
|
23,411,523 |
|
|
0 |
|
|
23,411,523 |
|
|
Foreign bonds – government |
|
|
0 |
|
|
|
30,611,514 |
|
|
0 |
|
|
30,611,514 |
|
|
Yankee obligations – corporate |
|
|
0 |
|
|
|
3,889,581 |
|
|
0 |
|
|
3,889,581 |
|
|
Yankee obligations – government |
|
|
0 |
|
|
|
1,680,101 |
|
|
0 |
|
|
1,680,101 |
|
|
Other |
|
|
3,594,552 |
|
|
|
131,393 |
|
|
0 |
|
|
3,725,945 |
|
|
Short-term investments |
|
|
1,679,348 |
|
|
|
0 |
|
|
0 |
|
|
1,679,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
13,732,797 |
|
|
$ |
172,023,177 |
|
$ |
0 |
|
$ |
185,755,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Further details on the major security types listed above can be found in the Schedule of Investments.
As of April 30, 2010, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:
|
|
|
|
|
Significant |
|
|
|
|
|
|
|
|
|
Other |
|
Significant |
|
|
|
|
|
|
|
Observable |
|
Unobservable |
|
|
|
|
|
Quoted Prices |
|
Inputs |
|
Inputs |
|
|
|
Other financial instruments |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Written options |
|
$0 |
|
$(111,806) |
|
$0 |
|
$(111,806) |
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
|
|
|
Written
|
|
|
|
|
|
|
|
|
|
Balance as of October 31, 2009 |
|
$ |
(17,962 |
) |
|
Realized gains or losses |
|
|
67,333 |
|
|
Change in unrealized gains or losses |
|
|
(49,371 |
) |
|
Net purchases (sales) |
|
|
0 |
|
|
Transfers in and/or out of Level 3 |
|
|
0 |
|
|
|
|
|
|
|
|
Balance as of April 30, 2010 |
|
$ |
0 |
|
|
|
|
|
|
|
|
Change in unrealized gains or losses included in earnings relating to securities still held at April 30, 2010 |
|
$ |
0 |
|
|
|
|
|
|
|
24
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
On April 30, 2010, the aggregate cost of securities for federal income tax purposes was $184,748,650. The gross unrealized appreciation and depreciation on securities based on tax cost was $10,695,741 and $9,688,417, respectively, with a net unrealized appreciation of $1,007,324.
As of October 31, 2009, the Fund had $23,144,190 in capital loss carryovers for federal income tax purposes expiring in 2017.
6. DERIVATIVE TRANSACTIONS
During the six months ended April 30, 2010, the Fund entered into written options for speculative purposes.
During the six months ended April 30, 2010, the Fund had written option activities as follows:
|
|
|
Number of
|
|
Premiums
|
|
||
|
|
|
|
|
|
|
||
|
Options outstanding at October 31, 2009 |
|
2,344 |
|
|
$ |
661,852 |
|
|
Options written |
|
18,711 |
|
|
|
2,177,912 |
|
|
Options expired |
|
(14,265 |
) |
|
|
(2,171,604 |
) |
|
Options closed |
|
(3,976 |
) |
|
|
(461,732 |
) |
|
|
|
|
|
|
|
|
|
|
Options outstanding at April 30, 2010 |
|
2,814 |
|
|
$ |
206,428 |
|
|
|
|
|
|
|
|
|
|
Open call options written at April 30, 2010 were as follows:
|
Expiration |
|
|
|
Number of |
|
Strike |
|
Market |
|
Premiums |
||||
|
Date |
|
Index |
|
Contracts |
|
Price |
|
Value |
|
Received |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
05/21/2010 |
|
AEX Index |
|
176 |
|
|
372 |
EUR |
|
$ 5,858 |
|
|
$15,217 |
|
|
05/21/2010 |
|
CAC 40 Index |
|
154 |
|
|
4,262 |
EUR |
|
3,978 |
|
|
9,299 |
|
|
05/21/2010 |
|
DAX Index |
|
199 |
|
|
6,601 |
EUR |
|
5,630 |
|
|
21,978 |
|
|
05/21/2010 |
|
DJ Euro Stoxx 50 Index |
|
208 |
|
|
3,156 |
EUR |
|
4,459 |
|
|
13,512 |
|
|
05/21/2010 |
|
IBEX 35 Index |
|
545 |
|
|
12,014 |
EUR |
|
5,334 |
|
|
38,750 |
|
|
05/21/2010 |
|
NASDAQ 100 Index |
|
41 |
|
|
2,130 |
USD |
|
5,412 |
|
|
17,466 |
|
|
05/21/2010 |
|
OMX Stockholm 30 Index |
|
572 |
|
|
1,113 |
SEK |
|
31,983 |
|
|
11,007 |
|
|
05/21/2010 |
|
Russell 2000 Index |
|
117 |
|
|
756 |
USD |
|
27,612 |
|
|
40,413 |
|
|
05/21/2010 |
|
S&P 400 MidCap Index |
|
102 |
|
|
867 |
USD |
|
17,340 |
|
|
23,582 |
|
|
05/21/2010 |
|
SPY Equity Index |
|
700 |
|
|
127 |
USD |
|
4,200 |
|
|
15,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Fund had average premiums received on written options in the amount of $382,276 during the six months ended April 30, 2010.
During the six months ended April 30, 2010, the Fund entered into forward foreign currency exchange contracts for hedging purposes.
As of April 30, 2010, the Fund did not have any open forward foreign currency exchange contracts. The Fund only had forward foreign currency exchange contracts to buy during the six months ended April 30, 2010 with an average contract amount of $906,453.
25
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
A summary of derivative instruments by primary risk exposure is outlined in the following tables, unless the only primary risk exposure category is already reflected in the appropriate financial statements.
The effect of derivative instruments on the Statement of Operations for the six months ended April 30, 2010 was as follows:
|
|
|
Amount of Realized Gains or
|
|
|||||||
|
|
|
|
|
|||||||
|
|
|
Forward
|
|
Written
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Equity contracts |
|
$ |
0 |
|
$ |
985,070 |
|
$ |
985,070 |
|
|
Forward foreign currency contracts |
|
|
57,862 |
|
|
0 |
|
|
57,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
57,862 |
|
$ |
985,070 |
|
$ |
1,042,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Unrealized Gains or
|
|
|||||||
|
|
|
|
|
|||||||
|
|
|
Forward
|
|
Written
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Equity contracts |
|
$ |
0 |
|
$ |
(500,405 |
) |
$ |
(500,405 |
) |
|
Forward foreign currency contracts |
|
|
(38,769 |
) |
|
0 |
|
|
(38,769 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(38,769 |
) |
$ |
(500,405 |
) |
$ |
(539,174 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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
The Evergreen funds, EIMC and certain of EIMC’s affiliates are involved in various legal actions, including private litigation and class action lawsuits, and are and may in the future be subject to regulatory inquiries and investigations.
EIMC and Evergreen Investment Services, Inc. (“EIS”) have reached final settlements with the Securities and Exchange Commission (“SEC”) and the Securities Division of the Secretary of the Commonwealth of Massachusetts (“Commonwealth”) primarily relating to the liquidation of Evergreen Ultra Short Opportunities Fund (“Ultra Short Fund”). The claims settled include the following: first, that during the period February 2007 through Ultra Short Fund’s liquidation on June 18, 2008, Ultra Short Fund’s former portfolio management team failed to properly take into account readily available
26
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
information in valuing certain non-agency residential mortgage-backed securities held by the Ultra Short Fund, resulting in the Ultra Short Fund’s net asset value (“NAV”) being overstated during the period; second, that EIMC and EIS acted inappropriately when, in an effort to explain the decline in Ultra Short Fund’s NAV, certain information regarding the decline was communicated to some, but not all, shareholders and financial intermediaries; third, that the Ultra Short Fund portfolio management team did not adhere to regulatory requirements for affiliated cross trades in executing trades with other Evergreen funds; and finally, that from at least September 2007 to August 2008, EIS did not preserve certain text and instant messages transmitted via personal digital assistant devices. In settling these matters, EIMC and EIS have agreed to payments totaling $41,125,000, up to $40,125,000 of which will be distributed to eligible shareholders of Ultra Short Fund pursuant to a methodology and plan approved by the regulators. EIMC and EIS neither admitted nor denied the regulators’ conclusions.
In addition, the U.S. District Court for the District of Massachusetts has consolidated three purported class actions into In re Evergreen Ultra Short Opportunities Fund Securities Litigation . The plaintiffs filed a consolidated amended complaint on April 30, 2009 against various Evergreen entities, including EIMC and EIS, the Evergreen funds’ former distributor, and Evergreen Fixed Income Trust and its Trustees. The complaint generally alleges that investors in Ultra Short Fund suffered losses as a result of (i) misleading statements in Ultra Short Fund’s registration statement and prospectus, (ii) the failure to accurately price securities in Ultra Short Fund at different points in time and (iii) the failure of Ultra Short Fund’s risk disclosures and description of its investment strategy to inform investors adequately of the actual risks of the fund. The complaint seeks damages in an amount to be determined at trial.
EIMC does not expect that any of the legal actions, inquiries or settlement of regulatory matters will have a material adverse impact on the financial position or operations of the Fund to which these financial statements relate. Any publicity surrounding or resulting from any legal actions or regulatory inquiries involving EIMC or its affiliates or any of the Evergreen Funds could result in reduced sales or increased redemptions of Evergreen fund shares, which could increase Evergreen fund transaction costs or operating expenses or have other adverse consequences on the Evergreen funds, including the Fund.
9. SUBSEQUENT DISTRIBUTIONS
The Fund declared the following distributions to common shareholders:
|
Declaration |
Record |
Payable |
Net Investment |
|
Date |
Date |
Date |
Income |
|
|
|
|
|
|
April 16, 2010 |
May 14, 2010 |
June 1, 2010 |
$0.06475 |
|
May 21, 2010 |
June 15, 2010 |
July 1, 2010 |
$0.06475 |
|
June 10, 2010 |
July 15, 2010 |
August 2, 2010 |
$0.06475 |
|
|
|
|
|
These distributions are not reflected in the accompanying financial statements.
27
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
10. SUBSEQUENT EVENTS
In June 2010, a notice of a Special Meeting of Shareholders was mailed to shareholders of record as of May 18, 2010. The Special Meeting of Shareholders is scheduled to be held on July 9, 2010. Among the proposals for consideration is the approval of a new advisory agreement with Wells Fargo Funds Management, LLC (“Funds Managment”) to replace the current advisory agreement with EIMC as well as a new sub-advisory agreement with First International Advisers, LLC and a new sub-advisory agreement with Wells Capital Management Incorporated (“Wells Capital”). If shareholders approve the new advisory agreement, the advisory fee rate paid by the Fund to Funds Management for providing such services will be identical to the advisory fee rate currently paid to EIMC. Since First International Advisers, LLC and Wells Capital will be compensated by Funds Management, and not the Fund itself, the Fund will not incur additional advisory fees. Upon shareholder approval of the new advisory and sub-advisory arrangements, the Fund will also be renamed Wells Fargo Advantage International Balanced Income Fund.
28
ADDITIONAL INFORMATION (unaudited)
ANNUAL MEETING OF SHAREHOLDERS
The Annual Meeting of Shareholders of the Fund was held on February 12, 2010 to consider the following proposal. The results of the proposal are indicated below.
Proposal 1 — Election of Trustees:
|
|
|
Net Assets Voted
|
|
Net Assets Voted
|
||||
|
|
|
|
|
|
||||
|
Carol A. Kosel |
|
$ |
174,001,324 |
|
|
$ |
4,511,278 |
|
|
Gerald M. McDonnell |
|
|
174,289,872 |
|
|
|
4,222,730 |
|
|
Richard J. Shima |
|
|
174,072,468 |
|
|
|
4,440,134 |
|
|
|
|
|
|
|
|
|
|
|
29
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, nonparticipating 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 Amex 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.
30
This page left intentionally blank
31
TRUSTEES AND OFFICERS
|
TRUSTEES 1 |
|
|
Dr.
Leroy Keith, Jr.
|
Chairman, Bloc Global Services (development and construction); Former Managing Director, Almanac Capital Management (commodities firm); Trustee, Phoenix Fund Complex; Director, Diversapack Co. (packaging company); Former Partner, Stonington Partners, Inc. (private equity fund); Former Director, Obagi Medical Products Co. |
|
|
|
|
Carol A. Kosel
|
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
|
Consultant, Rock Hill Metals Consultants LLC (Metals Consultant to steel industry); 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
2
|
Shareholder, Rogers, Townsend & Thomas, PC (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 Vice President, Kellam & Pettit, P.A. (law firm); 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); Former Trustee, NDI Technologies, LLP (communications); Former Consultant, AESC (The Association of Executive Search Consultants) |
|
|
|
|
Russell A. Salton III, MD
|
President/CEO, AccessOne MedCard, Inc. |
|
|
|
|
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 Trustee, Saint Joseph College (CT) |
|
|
|
32
TRUSTEES AND OFFICERS continued
|
Richard K. Wagoner, CFA
3
|
Member and Former President, North Carolina Securities Traders Association; Member, Financial Analysts Society |
|
|
|
|
OFFICERS |
|
|
W. Douglas Munn
4
|
Principal occupations: President and Chief Executive Officer, Evergreen Investment Company, Inc.; Chief Operating Officer, Wells Fargo Funds Management, LLC; Former Chief Operating Officer, Evergreen Investment Company, Inc. |
|
|
|
|
Kasey Phillips
4
|
Principal occupations: Senior Vice President, Evergreen Investment Management Company, LLC; Treasurer, Wells Fargo Advantage Funds; Former Vice President, Evergreen Investment Services, Inc. |
|
|
|
|
Michael H. Koonce
4
|
Principal occupations: Managing Counsel, Wells Fargo & Company; Secretary and Senior Vice President, Alternative Strategies Brokerage Services, Inc.; Evergreen Investment Services, Inc.; Secretary and Senior Vice President, Evergreen Investment Management Company, LLC and Evergreen Service Company, LLC |
|
|
|
|
Robert Guerin
4
|
Principal occupations: Chief Compliance Officer, Evergreen Funds and Senior Vice President of Evergreen Investment Company, Inc.; Compliance Manager, Wells Fargo Funds Management Group; 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 serves a three-year term concurrent with the class from which the Trustee is elected. Each Trustee oversaw 74 Evergreen funds as of December 31, 2009. Correspondence for each Trustee may be sent to Evergreen Board of Trustees, P.O. Box 20083, Charlotte, NC 28202. |
|
2 |
It is possible that Mr. Pettit may be viewed as an “interested person” of the Evergreen funds, as defined in the 1940 Act, because of his law firm’s representation of affiliates of Wells Fargo & Company, the parent to the Evergreen funds’ investment advisor, EIMC. The Trustees are treating Mr. Pettit as an interested trustee for the time being. |
|
3 |
Mr. Wagoner is an “interested person” of the Evergreen funds because of his ownership of shares in Wells Fargo & Company, the parent to the Evergreen funds’ investment advisor. |
|
4 |
The address of the Officer is 200 Berkeley Street, Boston, MA 02116. |
33
123660 575077 rv5 06/2010
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 reasonably 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
|
By: |
|
|
|
|
|
|
W. Douglas Munn |
|
|
Principal Executive Officer |
Date: June 29, 2010
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: |
|
|
|
|
|
|
W. Douglas Munn |
|
|
Principal Executive Officer |
Date: June 29, 2010
|
By: |
|
|
|
|
|
|
Kasey Phillips |
|
|
Principal Financial Officer |
Date: June 29, 2010
1 Year Evergreen Balanced Income Fund Chart |
1 Month Evergreen Balanced Income Fund Chart |
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