On June 19, Evergreen Investments, a subsidiary of Wachovia Corporation, announced that it was liquidating the Evergreen Ultra Short Opportunities Fund (EUBAX). The Fund has lost 19.6 percent of its value year to date, including total realized losses of more than $200 million in less than three months since March 31, 2008. Bond funds ? traditionally considered safe, conservative investments ? have once again proven that they are not immune to the subprime meltdown and may be among the most exposed investments of all.
The Fund, whose objective was to provide current income with preservation of capital and low principal fluctuation, invested 83.25% of its assets in commercial and residential fixed and variable rate mortgage backed securities, including collateralized mortgage obligations.
The shareholders of record as of June 18 will receive a cash distribution of $7.48 per share based on a net asset value of $403 million. Wachovia, Evergreen’s parent, will reportedly provide financing for the liquidation.
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry’s attorneys are actively involved in pursuing claims arising out of investments in the Evergreen Ultra Short Opportunities Fund. For further information, please contact us.