N-Q 1 e155320ev_h.htm INTERNATIONAL BALANCED INCOME FUND

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT

INVESTMENT COMPANY

Investment Company Act file number 811-21799

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:

Registrant is making a quarterly filing for one of its series, Evergreen International Balanced Income Fund, for the quarter ended July 31, 2009. This series has October 31 fiscal year end.

Date of reporting period: July 31, 2009

 

Item 1 - Schedule of Investments

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS

July 31, 2009 (unaudited)

 

 

Principal
Amount

 

Value

 

CORPORATE BONDS    1.0%

 

 

 

 

 

 

 

FINANCIALS    0.8%

 

 

 

 

 

 

 

Capital Markets    0.8%

 

 

 

 

 

 

 

BP Capital Markets plc, 5.25%, 11/07/2013

 

$

1,200,000

 

$

1,316,108

 

INDUSTRIALS     0.2%

 

 

 

 

 

 

 

Commercial Services & Supplies    0.2%

 

 

 

 

 

 

 

ARAMARK Corp., 8.50%, 02/01/2015

 

 

350,000

 

 

354,375

 

Total Corporate Bonds    (cost $1,591,639)

 

 

 

 

 

1,670,483

 

FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED)    15.4%

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    0.6%

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure    0.1%

 

 

 

 

 

 

 

Royal Caribbean Cruises, Ltd., 5.625%, 01/27/2014 EUR

 

 

255,000

 

 

290,761

 

Media    0.5%

 

 

 

 

 

 

 

Central European Media Enterprises, Ltd., Class A, FRN, 3.10%, 05/15/2014 EUR

 

 

500,000

 

 

530,924

 

UPC Holding BV, 8.00%, 11/01/2016 EUR

 

 

250,000

 

 

320,693

 

 

 

 

 

 

 

851,617

 

CONSUMER STAPLES    1.8%

 

 

 

 

 

 

 

Beverages    0.5%

 

 

 

 

 

 

 

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

 

 

300,000

 

 

511,158

 

Central European Distribution Corp., 8.00%, 07/25/2012 EUR

 

 

200,000

 

 

272,232

 

 

 

 

 

 

 

783,390

 

Food & Staples Retailing    0.4%

 

 

 

 

 

 

 

Casino Guichard-Perrachon SA, 6.375%, 04/04/2013 EUR

 

 

500,000

 

 

763,903

 

Food Products    0.0%

 

 

 

 

 

 

 

Nestle SA, 5.50%, 11/18/2009 AUD

 

 

70,000

 

 

58,781

 

Tobacco    0.9%

 

 

 

 

 

 

 

Imperial Tobacco Group plc, 8.375%, 02/17/2016 EUR

 

 

900,000

 

 

1,508,568

 

ENERGY    0.4%

 

 

 

 

 

 

 

Energy Equipment & Services    0.4%

 

 

 

 

 

 

 

Tesco plc, 4.75%, 04/13/2010 EUR

 

 

500,000

 

 

726,058

 

FINANCIALS     9.4%

 

 

 

 

 

 

 

Capital Markets    3.1%

 

 

 

 

 

 

 

Ahold Finance USA, Inc., 6.50%, 03/14/2017 GBP

 

 

200,000

 

 

335,760

 

Ambev International Finance Co., Ltd., 9.50%, 07/24/2017 BRL

 

 

5,000,000

 

 

2,559,293

 

Goldman Sachs Group, Inc., 4.50%, 01/30/2017 EUR

 

 

550,000

 

 

769,432

 

Merrill Lynch & Co., Inc., 10.71%, 03/08/2017 BRL

 

 

2,000,000

 

 

999,598

 

Morgan Stanley, 10.09%, 05/03/2017 BRL

 

 

2,000,000

 

 

876,323

 

 

 

 

 

 

 

5,540,406

 

Commercial Banks    4.5%

 

 

 

 

 

 

 

KfW Bankengruppe:

 

 

 

 

 

 

 

4.875%, 01/15/2013 GBP

 

 

235,000

 

 

415,344

 

15.50%, 01/25/2010 TRY

 

 

2,450,000

 

 

1,719,455

 

Kommunalbanken AS, 6.00%, 02/25/2011 AUD

 

 

5,900,000

 

 

5,023,827

 

Landwirtschaftliche Rentenbank, 5.75%, 01/21/2015 AUD

 

 

850,000

 

 

687,419

 

 

 

 

 

 

 

7,846,045

 

Consumer Finance    0.5%

 

 

 

 

 

 

 

SLM Corp., 5.375%, 12/15/2010 GBP

 

 

185,000

 

 

282,923

 

Virgin Media Finance plc, 9.75%, 04/15/2014 GBP

 

 

160,000

 

 

269,945

 

Wind Acquisition Finance SpA, 9.75%, 12/01/2015 EUR

 

 

250,000

 

 

359,888

 

 

 

 

 

 

 

912,756

 

 

 

 

1

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

 

 

Principal
Amount

 

Value

 

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

 

 

 

 

 

 

 

FINANCIALS    continued

 

 

 

 

 

 

 

Diversified Financial Services    1.3%

 

 

 

 

 

 

 

ABB International Finance, Ltd., 4.625%, 06/06/2013 EUR

 

 

1,000,000

 

$

1,505,864

 

Dubai Holding Commercial Operations Group, LLC:

 

 

 

 

 

 

 

4.75%, 01/30/2014 EUR

 

 

450,000

 

 

468,211

 

6.00%, 02/01/2017 GBP

 

 

250,000

 

 

254,263

 

 

 

 

 

 

 

2,228,338

 

INDUSTRIALS    1.0%

 

 

 

 

 

 

 

Aerospace & Defense    0.4%

 

 

 

 

 

 

 

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

 

 

500,000

 

 

648,511

 

Commercial Services & Supplies    0.3%

 

 

 

 

 

 

 

Iron Mountain, Inc., 6.75%, 10/15/2018 EUR

 

 

450,000

 

 

599,695

 

Machinery    0.3%

 

 

 

 

 

 

 

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

 

 

400,000

 

 

453,245

 

MATERIALS    0.8%

 

 

 

 

 

 

 

Chemicals    0.4%

 

 

 

 

 

 

 

Rockwood Specialties Group, Inc., 7.625%, 11/15/2014 EUR

 

 

450,000

 

 

631,764

 

Containers & Packaging    0.3%

 

 

 

 

 

 

 

Owens-Illinois European Group BV, 6.875%, 03/31/2017 EUR

 

 

390,000

 

 

516,956

 

Metals & Mining    0.1%

 

 

 

 

 

 

 

New World Resources NV, 7.375%, 05/15/2015 EUR

 

 

200,000

 

 

214,508

 

TELECOMMUNICATION SERVICES    1.0%

 

 

 

 

 

 

 

Diversified Telecommunication Services    1.0%

 

 

 

 

 

 

 

Nordic Telephone Co., 8.25%, 05/01/2016 EUR

 

 

450,000

 

 

660,626

 

Telecom Italia SpA, 7.25%, 04/24/2012 EUR

 

 

700,000

 

 

1,098,683

 

 

 

 

 

 

 

1,759,309

 

UTILITIES    0.4%

 

 

 

 

 

 

 

Multi-Utilities    0.4%

 

 

 

 

 

 

 

Veolia Environnement SA, 4.375%, 01/16/2017 EUR

 

 

530,000

 

 

744,016

 

Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated)     (cost $25,659,972)

 

27,078,627

 

FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED)    14.0%

 

 

 

 

 

 

 

Brazil, 10.25%, 01/10/2028 BRL

 

 

2,200,000

 

 

1,187,994

 

Canada, 6.25%, 06/15/2015 NZD

 

 

5,600,000

 

 

3,612,965

 

Korea:

 

 

 

 

 

 

 

5.25%, 09/10/2015 KRW

 

 

4,700,000,000

 

 

3,899,113

 

5.25%, 03/10/2027 KRW

 

 

1,903,000,000

 

 

1,507,758

 

Malaysia, 4.24%, 02/07/2018 MYR

 

 

11,450,000

 

 

3,271,934

 

Mexico, 10.00%, 12/05/2024 MXN

 

 

70,230,000

 

 

6,065,439

 

Morocco, 5.375%, 06/27/2017 EUR

 

 

450,000

 

 

630,531

 

Norway, 4.25%, 05/19/2017 NOK

 

 

23,000,000

 

 

3,884,726

 

Peru, 7.50%, 10/14/2014 EUR

 

 

250,000

 

 

383,406

 

Ukraine, 4.95%, 10/13/2015 EUR

 

 

250,000

 

 

231,611

 

Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated)    (cost $28,300,990)

 

24,675,477

 

YANKEE OBLIGATIONS – CORPORATE    1.8%

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    0.3%

 

 

 

 

 

 

 

Multiline Retail    0.3%

 

 

 

 

 

 

 

Marks & Spencer Group plc, 6.25%, 12/01/2017

 

$

500,000

 

 

463,477

 

CONSUMER STAPLES    0.3%

 

 

 

 

 

 

 

Food & Staples Retailing    0.3%

 

 

 

 

 

 

 

Tesco plc, 5.50%, 11/15/2017

 

 

500,000

 

 

514,607

 

 

 

2

 

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

 

 

Principal
Amount

 

Value

 

YANKEE OBLIGATIONS – CORPORATE    continued

 

 

 

 

 

 

 

FINANCIALS    0.2%

 

 

 

 

 

 

 

Consumer Finance    0.2%

 

 

 

 

 

 

 

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

 

$

330,000

 

$

334,950

 

UTILITIES    1.0%

 

 

 

 

 

 

 

Electric Utilities    0.7%

 

 

 

 

 

 

 

E.ON AG, 5.80%, 04/30/2018

 

 

1,200,000

 

 

1,297,836

 

Multi-Utilities    0.3%

 

 

 

 

 

 

 

National Power Corp., FRN, 4.91%, 08/23/2011

 

 

500,000

 

 

500,470

 

Total Yankee Obligations – Corporate    (cost $2,909,884)

 

 

 

 

 

3,111,340

 

YANKEE OBLIGATIONS – GOVERNMENT    0.7%

 

 

 

 

 

 

 

Colombia, 7.375%, 03/18/2019

 

 

600,000

 

 

654,000

 

Georgia, 7.50%, 04/15/2013

 

 

250,000

 

 

218,050

 

Philippines, 8.00%, 01/15/2016

 

 

350,000

 

 

392,875

 

Total Yankee Obligations – Government    (cost $1,226,236)

 

 

 

 

 

1,264,925

 

 

 

 


Country

 


Shares

 

 


Value

 

COMMON STOCKS    60.6%

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    4.8%

 

 

 

 

 

 

 

 

Auto Components    1.2%

 

 

 

 

 

 

 

 

Compagnie Generale des Etablissements Michelin, Class B

 

France

 

22,530

 

 

1,626,794

 

Nokian Renkaat Oyj

 

Finland

 

22,527

 

 

475,836

 

 

 

 

 

 

 

 

2,102,630

 

Automobiles    0.2%

 

 

 

 

 

 

 

 

Daimler AG

 

Germany

 

6,042

 

 

279,620

 

Hotels, Restaurants & Leisure    0.7%

 

 

 

 

 

 

 

 

OPAP SA

 

Greece

 

54,200

 

 

1,301,683

 

Media    0.9%

 

 

 

 

 

 

 

 

Arnoldo Mondadori Editore SpA

 

Italy

 

74,944

 

 

316,981

 

Pearson plc

 

United Kingdom

 

69,673

 

 

807,132

 

Wolters Kluwer NV

 

Netherlands

 

21,170

 

 

416,396

 

 

 

 

 

 

 

 

1,540,509

 

Multiline Retail    0.4%

 

 

 

 

 

 

 

 

PPR SA

 

France

 

6,766

 

 

754,031

 

Specialty Retail    0.4%

 

 

 

 

 

 

 

 

Inditex SA

 

Spain

 

11,849

 

 

637,367

 

Textiles, Apparel & Luxury Goods    1.0%

 

 

 

 

 

 

 

 

adidas AG

 

Germany

 

41,117

 

 

1,737,610

 

CONSUMER STAPLES    5.3%

 

 

 

 

 

 

 

 

Beverages    1.2%

 

 

 

 

 

 

 

 

Carlsberg AS, Class B

 

Denmark

 

3,800

 

 

263,652

 

Diageo plc

 

United Kingdom

 

83,695

 

 

1,311,402

 

Foster’s Group, Ltd.

 

Australia

 

130,081

 

 

586,395

 

 

 

 

 

 

 

 

2,161,449

 

Food & Staples Retailing    1.6%

 

 

 

 

 

 

 

 

Carrefour SA

 

France

 

60,930

 

 

2,860,190

 

Food Products    1.9%

 

 

 

 

 

 

 

 

Nestle SA

 

Switzerland

 

13,901

 

 

572,092

 

Unilever NV

 

Netherlands

 

100,198

 

 

2,737,709

 

 

 

 

 

 

 

 

3,309,801

 

Tobacco    0.6%

 

 

 

 

 

 

 

 

Imperial Tobacco Group plc

 

United Kingdom

 

20,171

 

 

576,516

 

Swedish Match AB

 

Sweden

 

24,500

 

 

467,693

 

 

 

 

 

 

 

 

1,044,209

 

 

 

 

3

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

 

 


Country

 


Shares

 

 


Value

 

COMMON STOCKS    continued

 

 

 

 

 

 

 

 

ENERGY    5.6%

 

 

 

 

 

 

 

 

Energy Equipment & Services    0.3%

 

 

 

 

 

 

 

 

Technip SA

 

France

 

9,371

 

$

566,582

 

Oil, Gas & Consumable Fuels    5.3%

 

 

 

 

 

 

 

 

BP plc

 

United Kingdom

 

278,386

 

 

2,312,129

 

ENI SpA

 

Italy

 

69,490

 

 

1,617,389

 

Royal Dutch Shell plc, Class B

 

United Kingdom

 

120,010

 

 

3,115,315

 

Total SA

 

France

 

39,544

 

 

2,193,047

 

 

 

 

 

 

 

 

9,237,880

 

FINANCIALS    10.8%

 

 

 

 

 

 

 

 

Capital Markets    1.2%

 

 

 

 

 

 

 

 

ICAP plc

 

United Kingdom

 

152,573

 

 

1,157,090

 

Man Group plc

 

United Kingdom

 

207,000

 

 

956,955

 

 

 

 

 

 

 

 

2,114,045

 

Commercial Banks    2.9%

 

 

 

 

 

 

 

 

Banco Santander SA

 

Spain

 

36,977

 

 

535,466

 

Bank Leumi Le-Israel BM

 

Israel

 

212,958

 

 

717,189

 

Danske Bank AS

 

Denmark

 

12,200

 

 

253,938

 

HSBC Holdings plc-London Exchange

 

United Kingdom

 

91,470

 

 

925,562

 

Nordea Bank AB

 

Sweden

 

82,925

 

 

804,428

 

Sparebanken Nord-Norge

 

Norway

 

51,900

 

 

635,049

 

Standard Chartered plc

 

United Kingdom

 

39,977

 

 

948,938

 

Svenska Handelsbanken, Ser. A

 

Sweden

 

13,418

 

 

328,198

 

 

 

 

 

 

 

 

5,148,768

 

Diversified Financial Services    3.0%

 

 

 

 

 

 

 

 

Criteria Caixa Corp. SA

 

Spain

 

251,671

 

 

1,210,635

 

Deutsche Boerse AG

 

Germany

 

11,780

 

 

933,525

 

Guoco Group, Ltd.

 

Bermuda

 

76,000

 

 

715,866

 

Hellenic Exchanges Holding SA

 

Greece

 

147,161

 

 

1,908,711

 

ING Groep NV

 

Netherlands

 

37,951

 

 

486,716

 

 

 

 

 

 

 

 

5,255,453

 

Insurance    3.5%

 

 

 

 

 

 

 

 

Allianz SE

 

Germany

 

8,302

 

 

818,832

 

AXA SA

 

France

 

22,309

 

 

471,550

 

Legal & General Group plc

 

United Kingdom

 

613,447

 

 

660,440

 

Muenchener Rueckversicherungs-Gesellschaft AG

 

Germany

 

16,455

 

 

2,488,161

 

Sampo Oyj, Class A

 

Finland

 

26,368

 

 

550,581

 

T&D Holdings, Inc.

 

Japan

 

13,450

 

 

395,149

 

TrygVesta AS

 

Denmark

 

10,810

 

 

728,294

 

 

 

 

 

 

 

 

6,113,007

 

Real Estate Investment Trusts (REITs)    0.2%

 

 

 

 

 

 

 

 

Parkway Life

 

Singapore

 

7,577

 

 

5,370

 

Westfield Group Australia

 

Australia

 

32,290

 

 

305,975

 

 

 

 

 

 

 

 

311,345

 

HEALTH CARE    1.7%

 

 

 

 

 

 

 

 

Health Care Providers & Services    0.2%

 

 

 

 

 

 

 

 

Parkway Holdings, Ltd.

 

Singapore

 

222,273

 

 

322,795

 

Pharmaceuticals    1.5%

 

 

 

 

 

 

 

 

Bayer AG

 

Germany

 

7,437

 

 

456,434

 

GlaxoSmithKline plc

 

United Kingdom

 

27,464

 

 

527,129

 

Novartis AG

 

Switzerland

 

10,731

 

 

491,438

 

Roche Holding AG

 

Switzerland

 

7,271

 

 

1,146,459

 

 

 

 

 

 

 

 

2,621,460

 

 

 

4

 

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

 

 


Country

 


Shares

 

 


Value

 

COMMON STOCKS    continued

 

 

 

 

 

 

 

 

INDUSTRIALS    5.0%

 

 

 

 

 

 

 

 

Aerospace & Defense    0.8%

 

 

 

 

 

 

 

 

BAE Systems plc

 

United Kingdom

 

284,202

 

$

1,457,468

 

Air Freight & Logistics    1.0%

 

 

 

 

 

 

 

 

Oesterreichische Post AG

 

Austria

 

56,450

 

 

1,732,264

 

Building Products    0.5%

 

 

 

 

 

 

 

 

Assa Abloy AB, Class B

 

Sweden

 

48,400

 

 

798,171

 

Commercial Services & Supplies    0.3%

 

 

 

 

 

 

 

 

De La Rue plc

 

United Kingdom

 

36,889

 

 

512,997

 

Construction & Engineering    0.3%

 

 

 

 

 

 

 

 

Skanska AB, B Shares

 

Sweden

 

42,200

 

 

592,122

 

Machinery    0.4%

 

 

 

 

 

 

 

 

Sandvik AB

 

Sweden

 

68,000

 

 

647,866

 

Professional Services    0.6%

 

 

 

 

 

 

 

 

Hays plc

 

United Kingdom

 

697,994

 

 

1,110,581

 

Road & Rail    0.1%

 

 

 

 

 

 

 

 

National Express Group plc

 

United Kingdom

 

37,168

 

 

209,700

 

Trading Companies & Distributors    0.3%

 

 

 

 

 

 

 

 

Ashtead Group plc

 

United Kingdom

 

542,726

 

 

564,356

 

Transportation Infrastructure    0.7%

 

 

 

 

 

 

 

 

Brisa-Autoestradas de Portugal SA

 

Portugal

 

45,063

 

 

373,166

 

Macquarie Airports

 

Australia

 

393,249

 

 

818,945

 

 

 

 

 

 

 

 

1,192,111

 

INFORMATION TECHNOLOGY    2.1%

 

 

 

 

 

 

 

 

Office Electronics    0.6%

 

 

 

 

 

 

 

 

Neopost

 

France

 

12,529

 

 

1,066,990

 

Semiconductors & Semiconductor Equipment    0.5%

 

 

 

 

 

 

 

 

Taiwan Semiconductor Manufacturing Co., Ltd.

 

Taiwan

 

165,440

 

 

297,013

 

Taiwan Semiconductor Manufacturing Co., Ltd., ADR

 

Taiwan

 

54,343

 

 

568,975

 

United Microelectronics Corp.

 

Taiwan

 

2

 

 

1

 

 

 

 

 

 

 

 

865,989

 

Software    1.0%

 

 

 

 

 

 

 

 

Nintendo Co., Ltd.

 

Japan

 

6,600

 

 

1,784,877

 

MATERIALS    2.9%

 

 

 

 

 

 

 

 

Chemicals    0.9%

 

 

 

 

 

 

 

 

Akzo Nobel NV

 

Netherlands

 

29,920

 

 

1,641,618

 

Containers & Packaging    0.5%

 

 

 

 

 

 

 

 

Rexam plc

 

United Kingdom

 

213,789

 

 

842,812

 

Metals & Mining    1.4%

 

 

 

 

 

 

 

 

Barrick Gold Corp.

 

Canada

 

18,000

 

 

628,601

 

BHP Billiton, Ltd.

 

Australia

 

26,135

 

 

827,325

 

voestalpine AG

 

Austria

 

35,021

 

 

971,853

 

 

 

 

 

 

 

 

2,427,779

 

Paper & Forest Products    0.1%

 

 

 

 

 

 

 

 

Stora Enso Oyj, Class R

 

Finland

 

20,800

 

 

132,222

 

TELECOMMUNICATION SERVICES    13.0%

 

 

 

 

 

 

 

 

Diversified Telecommunication Services    11.3%

 

 

 

 

 

 

 

 

Belgacom SA

 

Belgium

 

20,337

 

 

728,571

 

BT Group plc

 

United Kingdom

 

285,090

 

 

603,144

 

Deutsche Telekom AG

 

Germany

 

328,345

 

 

4,207,229

 

France Telecom

 

France

 

176,953

 

 

4,416,215

 

Hellenic Telecommunications Organization SA

 

Greece

 

119,957

 

 

1,880,721

 

 

 

 

5

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

 

 


Country

 


Shares

 

 


Value

 

COMMON STOCKS    continued

 

 

 

 

 

 

 

 

TELECOMMUNICATION SERVICES    continued

 

 

 

 

 

 

 

 

Diversified Telecommunication Services    continued

 

 

 

 

 

 

 

 

Hrvatske Telekom SP, GDR 144A

 

Croatia

 

10,000

 

$

422,000

 

KT Corp.

 

South Korea

 

18,570

 

 

600,252

 

KT Corp., ADR

 

South Korea

 

39,540

 

 

635,012

 

Maroc Telecom

 

Morocco

 

37,276

 

 

689,089

 

Telecom Corp. of New Zealand, Ltd.

 

New Zealand

 

559,556

 

 

1,030,018

 

Telefonica SA

 

Spain

 

107,851

 

 

2,683,182

 

TeliaSonera AB

 

Sweden

 

129,500

 

 

830,910

 

Telstra Corp., Ltd.

 

Australia

 

369,838

 

 

1,091,878

 

 

 

 

 

 

 

 

19,818,221

 

Wireless Telecommunication Services    1.7%

 

 

 

 

 

 

 

 

Mobistar SA

 

Belgium

 

11,797

 

 

751,849

 

StarHub, Ltd.

 

Singapore

 

651,500

 

 

1,014,043

 

Vodafone Group plc

 

United Kingdom

 

650,664

 

 

1,333,629

 

 

 

 

 

 

 

 

3,099,521

 

UTILITIES    9.4%

 

 

 

 

 

 

 

 

Electric Utilities    4.1%

 

 

 

 

 

 

 

 

E.ON AG

 

Germany

 

9,636

 

 

364,780

 

Electricite de France SA

 

France

 

8,217

 

 

407,274

 

Endesa SA

 

Spain

 

47,754

 

 

1,268,708

 

Fortum Oyj

 

Finland

 

28,037

 

 

649,368

 

Scottish & Southern Energy plc

 

United Kingdom

 

91,955

 

 

1,700,421

 

Sechilienne-Sidec

 

France

 

29,111

 

 

1,121,526

 

Spark Infrastructure Group

 

Australia

 

1,428,865

 

 

1,278,683

 

TERNA SpA

 

Italy

 

138,348

 

 

487,546

 

 

 

 

 

 

 

 

7,278,306

 

Gas Utilities    0.7%

 

 

 

 

 

 

 

 

Snam Rete Gas SpA

 

Italy

 

272,123

 

 

1,191,690

 

Independent Power Producers & Energy Traders    0.2%

 

 

 

 

 

 

 

 

Iberdrola Renovables SA

 

Spain

 

59,062

 

 

272,746

 

Multi-Utilities    3.8%

 

 

 

 

 

 

 

 

GDF Suez SA

 

France

 

48,560

 

 

1,855,242

 

National Grid plc

 

United Kingdom

 

202,195

 

 

1,886,371

 

RWE AG

 

Germany

 

16,575

 

 

1,399,742

 

Suez Environnement SA *

 

France

 

23,756

 

 

452,700

 

United Utilities Group plc

 

United Kingdom

 

151,262

 

 

1,138,936

 

 

 

 

 

 

 

 

6,732,991

 

Water Utilities    0.6%

 

 

 

 

 

 

 

 

Pennon Group plc

 

United Kingdom

 

82,674

 

 

630,439

 

Severn Trent plc

 

United Kingdom

 

25,895

 

 

418,938

 

 

 

 

 

 

 

 

1,049,377

 

Total Common Stocks    (cost $135,591,045)

 

 

 

 

 

 

106,443,209

 

PREFERRED STOCKS    1.3%

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY    0.3%

 

 

 

 

 

 

 

 

Textiles, Apparel & Luxury Goods    0.3%

 

 

 

 

 

 

 

 

Hugo Boss AG, Var. Rate Pfd.

 

Germany

 

16,739

 

 

458,791

 

FINANCIALS    0.7%

 

 

 

 

 

 

 

 

Capital Markets    0.6%

 

 

 

 

 

 

 

 

Credit Suisse Group AG, Var. Rate Pfd.

 

United Kingdom

 

45,000

 

 

1,117,462

 

Insurance    0.1%

 

 

 

 

 

 

 

 

Allianz SE, Var. Rate Pfd.

 

Germany

 

9,000

 

 

217,440

 

 

 

6

 

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

 

 


Country

 


Shares

 

 


Value

 

PREFERRED STOCKS    continued

 

 

 

 

 

 

 

 

HEALTH CARE    0.3%

 

 

 

 

 

 

 

 

Health Care Equipment & Supplies    0.3%

 

 

 

 

 

 

 

 

Fresenius AG, Var. Rate Pfd.

 

Germany

 

8,734

 

$

495,204

 

Total Preferred Stocks    (cost $2,388,464)

 

 

 

 

 

 

2,288,897

 

RIGHTS    0.1%

 

 

 

 

 

 

 

 

FINANCIALS    0.0%

 

 

 

 

 

 

 

 

Diversified Financial Services    0.0%

 

 

 

 

 

 

 

 

Fortis NV *

 

Belgium

 

8,064

 

 

11

 

MATERIALS    0.1%

 

 

 

 

 

 

 

 

Containers & Packaging    0.1%

 

 

 

 

 

 

 

 

Rexam plc *

 

United Kingdom

 

77,741

 

 

111,682

 

Total Rights    (cost $0)

 

 

 

 

 

 

111,693

 

OTHER    1.3%

 

 

 

 

 

 

 

 

Bell Aliant Regional Communications Income Fund

 

Canada

 

88,152

 

 

2,173,421

 

Bell Aliant Regional Communications Income Fund 144A

 

Canada

 

5,263

 

 

129,761

 

Total Other    (cost $2,328,044)

 

 

 

 

 

 

2,303,182

 

SHORT-TERM INVESTMENTS    2.5%

 

 

 

 

 

 

 

 

MUTUAL FUND SHARES    2.5%

 

 

 

 

 

 

 

 

Evergreen Institutional U.S. Government Money Market Fund, Class I, 0.11% q ø
    (cost $4,476,101)

 

United States

 

4,476,101

 

 

4,476,101

 

Total Investments    (cost $204,472,375)    98.7%

 

 

 

 

 

 

173,423,934

 

Other Assets and Liabilities    1.3%

 

 

 

 

 

 

2,287,581

 

Net Assets    100.0%

 

 

 

 

 

$

175,711,515

 

 

144A

Security that may be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees, unless otherwise noted.

*

Non-income producing security

q

Rate shown is the 7-day annualized yield at period end.

ø

Evergreen Investment Management Company, LLC is the investment advisor to both the Fund and the money market fund.

Summary of Abbreviations

ADR

American Depository Receipt

AUD

Australian Dollar

BRL

Brazil Real

EUR

Euro

FRN

Floating Rate Note

GBP

Great British Pound

GDR

Global Depository Receipt

KRW

Republic of Korea Won

MXN

Mexican Peso

MYR

Malaysian Ringgit

NOK

Norwegian Krone

NZD

New Zealand Dollar

TRY

Turkish Lira

 

 

 

7

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

The following table shows the percent of total long-term investments by geographic location as of July 31, 2009:

 

United Kingdom

 

18.5

%

France

 

11.5

%

Germany

 

10.0

%

Norway

 

5.7

%

Netherlands

 

5.2

%

Canada

 

4.3

%

South Korea

 

3.9

%

Spain

 

3.9

%

United States

 

3.9

%

Mexico

 

3.6

%

Greece

 

3.0

%

Australia

 

2.9

%

Sweden

 

2.6

%

Brazil

 

2.2

%

Italy

 

2.1

%

Malaysia

 

1.9

%

Austria

 

1.6

%

Switzerland

 

1.3

%

Japan

 

1.3

%

Denmark

 

1.1

%

Finland

 

1.1

%

Luxembourg

 

1.1

%

Belgium

 

0.9

%

Singapore

 

0.8

%

Morocco

 

0.8

%

Bermuda

 

0.7

%

New Zealand

 

0.6

%

Philippines

 

0.5

%

Taiwan

 

0.5

%

Cayman Islands

 

0.4

%

Israel

 

0.4

%

Colombia

 

0.4

%

South Africa

 

0.3

%

Croatia

 

0.2

%

Peru

 

0.2

%

Portugal

 

0.2

%

Liberia

 

0.2

%

Ukraine

 

0.1

%

Georgia

 

0.1

%

 

 

100.0

%

At July 31, 2009, the Fund had forward foreign currency exchange contracts outstanding as follows:

Forward Foreign Currency Exchange Contracts to Buy:

 

Exchange Date

 

Contracts to Receive

 

U.S. Value at
July 31, 2009

 

In Exchange
for U.S. $

 

Unrealized
Gain (Loss)

 

 

 

 

 

08/07/2009

 

380,000

 TRY

 

$

257,011

 

$

243,902

 

$

13,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange Date

 

Contracts to Receive

 

U.S. Value at
July 31, 2009

 

 

In Exchange
for

 

U.S. Value at
July 31, 2009

 

 

Unrealized
Gain (Loss)

 

08/03/2009

 

132,381

 EUR

 

$

188,682

 

 

132,381 GBP

 

$

188,761

 

 

 

$(79)

 

Forward Foreign Currency Exchange Contracts to Sell:

 

Exchange Date

 

Contracts to Deliver

 

U.S. Value at
July 31, 2009

 

In Exchange
for U.S. $

 

Unrealized
Gain (Loss)

 

 

 

 

 

08/03/2009

 

20,737

 GBP

 

$

34,641

 

$

34,555

 

$

(86)

 

 

 

 

 

08/27/2009

 

3,050,000

 TRY

 

 

2,062,850

 

 

1,916,070

 

 

(146,780)

 

 

 

 

 

Open call options written at July 31, 2009 were as follows:

 

Expiration
Date

 

Index

 

Number of
Contracts

 

Strike
Price

 

Market
Value

 

Premiums
Received

08/21/2009

 

CAC 40 Index

 

154

 

3,381 EUR

 

$

(223,002)

 o

 

$

68,537

 

08/21/2009

 

DAX Index

 

100

 

5,237 EUR

 

 

(687,123)

 o

 

 

39,033

 

08/21/2009

 

DJ Euro Stoxx 50 Index

 

100

 

2,591 EUR

 

 

(125,986)

 o

 

 

37,933

 

08/21/2009

 

FTSE 100 Index

 

98

 

4,606 GBP

 

 

(132,420)

 o

 

 

41,448

 

08/21/2009

 

NASDAQ 100 Index

 

46

 

1,691 USD

 

 

(33,350)

 

 

 

33,350

 

08/21/2009

 

RTV Index

 

133

 

587 USD

 

 

(56,525)

 

 

 

56,525

 

08/21/2009

 

S&P 400 MidCap Index

 

118

 

661 USD

 

 

(43,837)

 

 

 

43,837

 

08/21/2009

 

SPY Equity Index

 

743

 

98 USD

 

 

(187,006)

 o

 

 

58,526

 

o

Valued at fair value as determined by the investment advisor using third party modeling tools, according to procedures approved by the Board of Trustees.

On July 31, 2009, the aggregate cost of securities for federal income tax purposes was $204,487,237. The gross unrealized appreciation and depreciation on securities based on tax cost was $5,089,738 and $36,153,041, respectively, with a net unrealized depreciation of $31,063,303.

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 equity 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 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.

 

 

8

 

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

Portfolio debt securities acquired with more than 60 days to maturity are fair valued using matrix pricing methods determined by an independent pricing service which takes into consideration such factors as similar security prices, yields, maturities, liquidity and ratings. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of fair market value obtained from yield data relating to investments or securities with similar characteristics.

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 Trust to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

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.

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 contracts or if the value of the foreign currency changes unfavorably. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

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 between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Valuation hierarchy

On November 1, 2008, the Fund implemented Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). FAS 157 establishes a single authoritative definition of fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 establishes a fair value hierarchy based upon the various inputs used in determining the value of the Fund’s investments. These 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.

 

 

 

9

 

EVERGREEN INTERNATIONAL BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

As of July 31, 2009, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

 

Investments in Securities

 

Quoted Prices
(Level 1)

 

Significant
Other Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

Equities

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

106,021,209

 

$

422,000

 

$0

 

$

106,443,209

Preferred Stocks

 

 

1,171,435

 

 

1,117,462

 

  0

 

 

2,288,897

Rights

 

 

111,693

 

 

0

 

  0

 

 

111,693

Corporate debt securities

 

 

0

 

 

31,860,450

 

  0

 

 

31,860,450

Debt securities issued by foreign governments

 

 

0

 

 

25,940,402

 

  0

 

 

25,940,402

Other

 

 

2,303,182

 

 

0

 

  0

 

 

2,303,182

Short-term investments

 

 

4,476,101

 

 

0

 

  0

 

 

4,476,101

 

 

$

114,083,620

 

$

59,340,314

 

$0

 

$

173,423,934

As of July 31, 2009, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

 

 

 

Quoted Prices
(Level 1)

 

Significant
Other Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

Other financial instruments*

 

 

$0

 

 

$(1,623,085)

 

$0

 

 

$(1,623,085)

*

Other financial instruments include forwards and options.

 

 

10

 

 

Item 2 - Controls and Procedures

(a)

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely.

(b)

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

Item 3 - Exhibits

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

(a)

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

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Evergreen International Balanced Income Fund

 

 

 

 

 


By: 

/s/ W. Douglas Munn

 

 

 

 

W. Douglas Munn

 

 

 

 

Principal Executive Officer

 

 

 

Date: September 28, 2009

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: 

/s/ W. Douglas Munn

 

 

 

 

W. Douglas Munn

 

 

 

 

Principal Executive Officer

 

 

 

Date: September 28, 2009

 


By: 

/s/ Jeremy DePalma

 

 

 

 

Jeremy DePalma

 

 

 

 

Principal Financial Officer

 

 

 

Date: September 28, 2009