Published: May 13, 2010
Evergreen Investments Announces Changes to Closed-End Funds
BOSTON - (BUSINESS WIRE) - As part of the integration of the Evergreen Funds into the Wells Fargo
Advantage mutual fund family, Evergreen Investments announced today that
the Board of Trustees of the Evergreen Funds has approved proposals for
name changes, new advisory and subadvisory arrangements, and the
nomination of Trustees for each of the five Evergreen closed-end funds:
Evergreen Income Advantage Fund (NYSE Amex: EAD), Evergreen Multi-Sector
Income Fund (NYSE Amex: ERC), Evergreen Utilities and High Income Fund
(NYSE Amex: ERH), Evergreen International Balanced Income Fund (NYSE:
EBI) and Evergreen Global Dividend Opportunity Fund (NYSE: EOD).
The proposed new advisory and subadvisory arrangements and the election
of trustees for each fund are subject to approval by the Funds'
shareholders. Shareholders of the Funds on the record date will receive
a proxy statement relating to the proposals. Shareholder meetings are
expected to be held on July 9, 2010. The name changes would be effective
upon shareholder approval of the new advisory and subadvisory
arrangements. None of the Funds' investment objectives or investment
strategies will change as a result of these proposals.
A more comprehensive overview of the announced proposals follows. For
more information about the Funds, please visit EvergreenInvestments.com.
Evergreen Income Advantage Fund
Shareholders will be asked to approve a new advisory contract with Wells
Fargo Funds Management, LLC, and a new subadvisory contract with Wells
Capital Management, Inc., an institutional asset management firm within
Wells Fargo's Asset Management Group, to be effective July 9, 2010.
Following approval of the new contracts, Phil Susser and Niklas
Nordenfelt of Wells Capital Management are expected to assume portfolio
management responsibilities for the Fund, and the Fund will be renamed
the Wells Fargo Advantage Income Opportunities Fund.
The Fund's primary investment objective is to seek a high level of
current income, with a secondary objective of capital appreciation. The
Fund invests primarily in below-investment-grade (high-yield) debt
securities, loans and preferred stock. As of March 31, 2010, the Fund
had net assets of $662.5 million.
Evergreen Multi-Sector Income Fund
Shareholders will be asked to approve a new advisory contract with Wells
Fargo Funds Management, a new subadvisory contract with Wells Capital
Management, and a new subadvisory contract with the Fund's current
subadvisor, First International Advisors, LLC, to be effective July 9,
2010. Following approval of the new contracts, Susser and Nordenfelt of
Wells Capital Management are expected to assume portfolio management
responsibilities for the high-yield portion of the Fund. Tony Norris and
Peter Wilson of First International Advisors are expected to continue to
manage the foreign debt securities portion of the Fund. Norris is
expected to continue providing the asset allocation services to the
Fund. Richard Applebach and Christopher Kauffman of Wells Capital
Management will continue to manage the adjustable rate mortgage portion
of the Fund. Applebach and Kauffman currently provide the same services
to the Fund as portfolio managers at Tattersall Advisory Group, a
current subadvisor to the Fund. In addition, the Fund will be renamed
the Wells Fargo Advantage Multi-Sector Income Fund.
The Fund's primary investment objective is to seek a high level of
current income consistent with limiting its overall exposure to domestic
interest-rate risk. The Fund's assets are allocated among securities
consisting of below-investment-grade (high-yield) U.S. debt securities,
loans and preferred stocks; investment-grade foreign debt securities;
and adjustable rate mortgage-backed securities issued by the U.S.
government, its agencies and instrumentalities. As of March 31, 2010,
the Fund had net assets of $668.5 million.
Evergreen Utilities and High Income Fund
Shareholders will be asked to approve a new advisory contract with Wells
Fargo Funds Management, a new subadvisory contract with Wells Capital
Management, and a new subadvisory contract with the Fund's current
subadvisor, Crow Point Partners, LLC, to be effective July 9, 2010.
Following approval of the new contracts, Susser and Nordenfelt of Wells
Capital Management are expected to assume portfolio management
responsibilities for the high-yield portion of the Fund, and Tim O'Brien
of Crow Point Partners is expected to continue to manage the utilities
portion of the Fund. In addition, the Fund will be renamed the Wells
Fargo Advantage Utilities and High Income Fund.
The Fund's primary investment objective is to seek a high level
of current income and moderate capital growth, with an emphasis on
providing tax-advantaged dividend income. The Fund allocates its assets
among common, preferred and convertible securities of utilities
companies, as well as U.S.-dollar-denominated non-investment-grade
securities. As of March 31, 2010, the Fund had net assets of $106.1
million.
Evergreen International Balanced Income Fund
Shareholders will be asked to approve a new advisory contract with Wells
Fargo Funds Management, a new subadvisory contract with Wells Capital
Management, and a new subadvisory contract with the Fund's current
subadvisor, First International Advisors, to be effective July 9, 2010.
Following approval of the new contracts, Tim Stevenson, CFA, of Wells
Capital Management is expected to continue to manage the options overlay
strategy for the Fund. Stevenson currently provides the same services to
the Fund as a portfolio manager at Evergreen Investment Management
Company, LLC, current advisor to the Fund. Francis Claró, CFA, of Wells
Capital Management is expected to continue to manage the international
equities portion of the Fund. Claro currently provides the same services
to the Fund as a portfolio manager at Evergreen Investment Management
Company, LLC, current advisor to the Fund. Norris and Wilson of First
International Advisors are expected to continue to manage the
international bond portion of the Fund. Norris will also continue to
manage the asset allocation responsibilities of the Fund. In addition,
the Fund will be renamed the Wells Fargo Advantage International
Balanced Income Fund.
Evergreen International Balanced Income Fund's primary investment
objective is to provide a high level of income. The Fund invests
primarily in dividend-paying international stocks and other equity
securities and international debt securities. In addition, the Fund will
write call options on international indices. As of March 31, 2010, the
Fund had net assets of $189.3 million.
Evergreen Global Dividend Opportunity Fund
Shareholders will be asked to approve a new advisory contract with Wells
Fargo Funds Management, a new subadvisory contract with Wells Capital
Management, and a new subadvisory contract with the Fund's current
subadvisor, Crow Point Partners, to be effective July 9, 2010. Following
approval of the new contracts, Stevenson of Wells Capital Management is
expected to continue to manage the options overlay strategy for the
Fund. Stevenson currently provides the same services to the Fund as a
portfolio manager at Evergreen Investment Management Company, LLC,
current advisor to the Fund. O'Brien of Crow Point Partners is expected
to continue to manage the Fund's equity securities. In addition, the
Fund will be renamed the Wells Fargo Advantage Global Dividend
Opportunity Fund.
The Fund's primary objective is to seek a high level of current income.
The Fund's secondary objective is long-term growth of capital. The Fund
primarily invests in U.S. and non-U.S. equities believed to offer
above-average potential for current and/or future dividends. The Fund
actively employs a dividend capture strategy and also writes call
options on a variety of U.S.-and non-U.S.-based securities indices to
generate additional distributable income. As of March 31, 2010, the Fund
had net assets of $517.1 million.
All Funds
Shareholders will also be asked to vote on a proposal to elect seven new
Trustees and to re-elect two existing Trustees to the Board of Trustees
for each of the closed-end funds, to be effective July 9, 2010. Each of
the proposed seven new Trustees is a member of the current Wells
Fargo Advantage Funds Board of Trustees. The two existing Trustees
nominated for re-election are Mr. Michael S. Scofield and Dr. Leroy
Keith, Jr., each of whom is a current member of the Evergreen Funds
Board of Trustees. Scofield and Keith are also expected to join the Wells
Fargo Advantage Funds Board of Trustees in early July 2010.
For more information about Evergreen's closed-end funds, contact your
financial advisor, visit EvergreenInvestments.com, or call 800.343.2898.
The foregoing is not a solicitation of any proxy. Once a definitive
proxy statement relating to the proposals for each Fund has been filed
with the Securities and Exchange Commission (the "SEC" ), more
information regarding the proposals will be available. Once available, a
free copy of each Fund's proxy statement may be obtained by calling
1-800-343-2898 or by visiting www.EvergreenInvestments.com.
Each proxy statement will also be available for free on the SEC's web
site www.sec.gov.
You should read the proxy statement carefully because it contains
important information.
These closed-end funds are no longer offered as an initial public
offering and are only offered through broker/dealers on the secondary
market. Unlike an open-end mutual fund, a closed-end fund offers a
fixed number of shares for sale. After the initial public offering,
shares are bought and sold in the secondary marketplace and the market
price of the shares is determined by supply and demand, not by net asset
value, often at a lower price than the NAV. A closed-end fund is not
required to buy its shares back from investors upon request.
Various statements contained in this press release are "forward
looking statements." All forward-looking statements involve risks and
uncertainties. In particular, any statement contained in this press
release regarding expectations or assumptions are subject to risks,
uncertainties and contingencies, including market risks, which are
beyond our control, and which may cause actual results or achievements
to differ materially and perhaps substantially from anticipated results
or achievements. Evergreen Investments and the Evergreen Funds do not
make any representations or warranties (express or implied) about the
accuracy of such forward looking statements.
About Evergreen Investments
Evergreen Investments is one of the brand names under which Wells Fargo
& Company (NYSE:WFC) conducts its investment management business and is
part of the Wells Fargo Asset Management Group. Wells Fargo & Company is
a diversified financial services company with $1.2 trillion in assets as
of March 31, 2010, providing banking, insurance, investments, mortgage
and consumer finance through almost 11,000 stores and the internet
(WellsFargo.com) across North America and internationally. The Wells
Fargo Asset Management Group serves individual and institutional
investors through a broad range of investment products; strives to meet
client investment objectives through disciplined, team-based asset
management; and manages more than $465 billion in assets as of March 31,
2010. Evergreen InvestmentsSM is a service mark of Evergreen
Investment Management Company, LLC. Copyright 2010. Evergreen Investment
Management Company, LLC. For more information on Evergreen, please visit
EvergreenInvestments.com.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells
Fargo & Company, provides investment advisory and administrative
services for Wells Fargo Advantage Funds. Other affiliates of
Wells Fargo & Company provide subadvisory and other services for the
Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC,
Member FINRA/SIPC, an affiliate of Wells Fargo & Company.
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 mutual funds are distributed by Wells
Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of
Wells Fargo & Company. Evergreen Investments(SM) is a service mark of
Evergreen Investment Management Company, LLC. Copyright 2010. Evergreen
Investment Management Company, LLC. 123041 05-10
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Evergreen Investments
Shareholder Inquiries:
800.730.6001
Financial
Advisor Inquiries:
800.343.2898
Media Inquiries:
Laura
Fay, 617.210.3867
lfay@EvergreenInvestments.com
Lauren
Sawyers, 704.715.4561
lsawyers@EvergreenInvestments.com
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