Evergreen plans to liquidate a line of funds-of-funds that it launched barely two years ago. The company said that the Evergreen Envision Funds have not reached a critical mass of assets and were therefore causing cost inefficiencies for shareholders. (see MFWire March 6, 2006) The three funds had combined assets of $89 million as of August 31, 2008.
Evergreen also plans two grand re-openings for its fund lineup. The Evergreen Special
Values Fund and Evergreen VA Special Values Fund will re-open effective October 1, 2008. Both funds have been closed since April 8, 2005.
Company Press Release
BOSTON, Sept. 4 /PRNewswire/ -- The Board of Trustees of the Evergreen
Funds today approved Evergreen's proposal to reopen Evergreen Special
Values Fund and Evergreen VA Special Values Fund to new accounts, effective
October 1, 2008. Since April 8, 2005, the sale of shares to new accounts in
the Funds has been restricted. The Evergreen Funds Board of Trustees also
approved a proposal to liquidate the Evergreen Envision Funds (Evergreen
Envision Growth Fund, Evergreen Envision Growth and Income Fund, and
Evergreen Envision Income Fund).
Evergreen Special Values Fund and Evergreen VA Special Values Fund,
managed by lead portfolio manager Jim Tringas, seek to provide growth of
capital by investing primarily in common stocks of small capitalization
U.S. companies that are, in the opinion of the Funds' manager, undervalued
according to various financial measurements.
The portfolio management team has determined that the decline in the
Funds' Russell 2000 Value benchmark -- due to the widespread credit crisis,
rising oil and commodity prices, and a global economic slowdown -- has
resulted in what they consider to be attractive long-term valuations in
high-quality small cap equities. By reopening the Funds, Evergreen seeks to
meet investor demand for small cap value investment solutions. The Funds'
management team is comfortable with current asset levels and their capacity
to accept new investments without impacting the investment strategy. As of
August 31, 2008, Evergreen Special Values Fund had $1.5 billion in assets
and Evergreen VA Special Values Fund had $98 million in assets.
Mutual Funds: NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE
Evergreen also has received approval from the Board to liquidate and
close Evergreen Envision Growth Fund, Evergreen Envision Growth and Income
Fund, and Evergreen Envision Income Fund. The Funds, which have not reached
a critical mass of assets that would result in cost efficiencies for
shareholders, have approximately $89 million in combined assets under
management as of August 31, 2008. Evergreen will notify shareholders of the
Envision Funds at least 90 days in advance of the effective date of the
liquidation, expected to be effective on or about December 18, 2008.
Effective immediately, shares of the Funds will no longer be available for
purchase by new shareholders. Existing shareholders will have an
opportunity to redeem their shares or exchange them to any other Evergreen
Evergreen Envision Growth and Income Fund and Evergreen Envision Growth
Fund 1, 2, 3, 4, 5, 6, 7
Evergreen Envision Income Fund 1, 2, 5, 7
Evergreen VA Special Values Fund and Evergreen Special Values Fund 1, 4, 6
1 The fund's investment objective may be changed without a vote of the
fund's shareholders. Foreign investments may contain more risk due to the
inherent risks associated with changing political climates, foreign market
instability and foreign currency fluctuations.
2 Risks of international investing are magnified in emerging or
3 Mid cap securities may be subject to special risks associated with
narrower product lines and limited financial resources compared to their
large cap counterparts, and, as a result, mid cap securities may decline
significantly in market downturns.
4 The stocks of smaller companies may be more volatile than those of
larger companies due to the higher risk of failure.
5 The return of principal is not guaranteed due to fluctuation in the
fund's NAV caused by changes in the price of individual bonds held by the
underlying funds and the buying and selling of bonds by the underlying
funds. Bond funds have the same inflation, interest rate and credit risks
as the individual bonds held by the underlying funds. Generally, the value
of bond funds rises when prevailing interest rates fall, and falls when
interest rates rise.
6 Value-based investments are subject to the risk that the broad market
may not recognize their intrinsic value.
7 Asset-backed and mortgage-backed securities are generally subject to
higher prepayment risks than other types of debt securities, which can
limit the potential for gain in a declining interest rate environment and
increase the potential for loss in a rising interest rate environment.
Mortgage-backed securities may also be structured so that they are
particularly sensitive to interest rates. High yield, lower-rated bonds may
contain more risk due to the increased possibility of default. U.S.
government guarantees apply only to certain securities held in the fund's
portfolio and not to the fund's shares. Leverage may disproportionately
increase a fund's portfolio losses and reduce opportunities for gain when
interest rates, stock prices, or currency rates are changing. Because the
fund invests primarily in other mutual funds, the fund will incur fees and
expenses indirectly as a shareholder of the underlying funds. For more
information regarding the expenses of the underlying funds, see the fund's
About Evergreen Investments
Evergreen Investments is the brand name under which Wachovia
Corporation (NYSE: WB) conducts its investment management business.
Wachovia Global Asset Management is the brand name under which Evergreen
Investments conducts sales and distribution business outside of the United
States. Combined, the groups serve more than four million individual and
institutional investors through a broad range of investment products. Led
by 300 investment professionals, Evergreen Investments strives to meet
client investment objectives through disciplined, team-based asset
management. Evergreen Investments manages approximately $245 billion in
assets (as of June 30, 2008). Please visit http://www.EvergreenInvestments.com for
more information about Evergreen Investments.
AN INVESTOR SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS,
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING OR SENDING MONEY. THIS AND
OTHER IMPORTANT INFORMATION ABOUT THE INVESTMENT COMPANY CAN BE FOUND IN
THE FUND'S PROSPECTUS. TO OBTAIN A PROSPECTUS, PLEASE CONTACT YOUR
FINANCIAL ADVISOR, CALL EVERGREEN'S INVESTMENT SERVICES CENTER AT
800.343.2898 OR VISIT EVERGREENINVESTMENTS.COM. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE INVESTING.
Evergreen mutual funds are distributed by Evergreen Investment
Services, Inc. 200 Berkeley Street, Boston, MA 02116-5034.
Evergreen Investments(SM) is a service mark of Evergreen Investment
Management Company, LLC.