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UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
Investment Company Act file number 811-21269
Evergreen Income Advantage 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 1 of its series, Evergreen Income Advantage Fund, for the quarter ended January 31, 2005. These 1 series have an April 30 fiscal year end. | ||
Date of reporting period: |
January 31, 2005 |
Item 1 – Schedule of Investments
EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS |
| January 31, 2005 (unaudited) |
| Principal Amount |
Value | |||||||
|---|---|---|---|---|---|---|---|---|
CORPORATE BONDS 131.5% |
||||||||
CONSUMER DISCRETIONARY 45.4% |
||||||||
Auto Components 4.9% |
||||||||
| ArvinMeritor, Inc., 6.80%, 02/15/2009 þ | $ | 7,249,000 | $ | 7,502,715 | ||||
| Collins & Aikman Products Co.: | ||||||||
| 10.75%, 12/31/2011 þ | 3,700,000 | 3,681,500 | ||||||
| 12.875%, 08/24/2012 144A þ | 4,425,000 | 3,683,812 | ||||||
| Dura Operating Corp., Ser. B, 8.625%, 04/15/2012 þ | 8,000,000 | 8,260,000 | ||||||
| RJ Tower Corp., 12.00%, 06/01/2013 þ • | 10,800,000 | 5,913,000 | ||||||
| Tenneco Automotive, Inc., 8.625%, 11/15/2014 144A þ | 13,140,000 | 13,731,300 | ||||||
| TRW Automotive, Inc., 9.375%, 02/15/2013 | 6,584,000 | 7,439,920 | ||||||
| 50,212,247 | ||||||||
| Hotels, Restaurants & Leisure 11.4% | ||||||||
| Ameristar Casinos, Inc., 10.75%, 02/15/2009 | 10,000,000 | 11,250,000 | ||||||
| Equinox Holdings, Inc., 9.00%, 12/15/2009 þ | 10,930,000 | 11,640,450 | ||||||
| Gaylord Entertainment Co., 6.75%, 11/15/2014 144A | 2,500,000 | 2,468,750 | ||||||
| Inn of The Mountain Gods Resort & Casino, 12.00%, 11/15/2010 | 7,000,000 | 8,190,000 | ||||||
| John Q. Hammons Hotels LP, Ser. B, 8.875%, 05/15/2012 þ | 12,995,000 | 14,684,350 | ||||||
| La Quinta Corp., 8.875%, 03/15/2011 | 10,500,000 | 11,641,875 | ||||||
| Mandalay Resort Group, Ser. B, 10.25%, 08/01/2007 þ | 10,000,000 | 11,350,000 | ||||||
| Premier Entertainment Biloxi LLC, 10.75%, 02/01/2012 | 7,000,000 | 7,630,000 | ||||||
| Town Sports International, Inc., 9.625%, 04/15/2011 þ | 6,325,000 | 6,688,688 | ||||||
| Venetian Casino Resort LLC, 11.00%, 06/15/2010 | 19,000,000 | 21,565,000 | ||||||
| Wynn Resorts, Ltd., 6.625%, 12/01/2014 144A | 11,280,000 | 11,139,000 | ||||||
| 118,248,113 | ||||||||
| Household Durables 1.9% | ||||||||
| K. Hovnanian Enterprises Inc., 7.75%, 05/15/2013 þ | 5,000,000 | 5,437,500 | ||||||
| Meritage Corp., 9.75%, 06/01/2011 | 1,500,000 | 1,665,000 | ||||||
| Technical Olympic USA, Inc.: | ||||||||
| 7.50%, 03/15/2011 | 1,500,000 | 1,507,500 | ||||||
| 10.375%, 07/01/2012 | 1,800,000 | 2,016,000 | ||||||
| WCI Communities, Inc., 9.125%, 05/01/2012 þ | 8,000,000 | 8,940,000 | ||||||
| 19,566,000 | ||||||||
| Leisure Equipment & Products 1.2% | ||||||||
| Affinity Group, Inc., 9.00%, 02/15/2012 | 5,475,000 | 5,885,625 | ||||||
| Riddell Bell Holdings, Inc., 8.375%, 10/01/2012 144A | 6,105,000 | 6,318,675 | ||||||
| 12,204,300 | ||||||||
| Media 18.8% | ||||||||
| AMC Entertainment, Inc., 8.625%, 08/15/2012 144A | 11,430,000 | 12,458,700 | ||||||
| Cablevision Systems Corp., 8.00%, 04/15/2012 144A þ | 15,635,000 | 16,963,975 | ||||||
| CCO Holdings LLC, 8.75%, 11/15/2013 þ | 7,500,000 | 7,650,000 | ||||||
| Charter Communications Holdings LLC, 8.625%, 04/01/2009 þ | 19,000,000 | 15,295,000 | ||||||
| Cinemark USA, Inc.: | ||||||||
| 9.00%, 02/01/2013 | 12,000,000 | 13,500,000 | ||||||
| Sr. Disc. Note, Step Bond, 0.00%, 03/15/2014 † | 7,225,000 | 5,491,000 | ||||||
| Dex Media East LLC, 9.875%, 11/15/2009 þ | 13,500,000 | 15,187,500 | ||||||
| Emmis Communications Corp., 6.875%, 05/15/2012 | 7,350,000 | 7,570,500 | ||||||
| Houghton Mifflin Co., 9.875%, 02/01/2013 þ | 15,000,000 | 15,712,500 | ||||||
| Jostens IH Corp., 7.625%, 10/01/2012 144A | 7,465,000 | 7,632,962 | ||||||
| Loews Cineplex Entertainment Corp., 9.00%, 08/01/2014 144A | 2,030,000 | 2,136,575 | ||||||
| Marquee Holdings, Inc., Sr. Disc. Note, Step Bond, 0.00% 08/15/2014 144A † | 12,850,000 | 8,802,250 | ||||||
| Mediacom LLC, 9.50%, 01/15/2013 þ | 15,250,000 | 15,288,125 | ||||||
| PRIMEDIA, Inc., 8.875%, 05/15/2011 þ | 5,030,000 | 5,331,800 | ||||||
| RCN Corp., 12.50%, 06/30/2008 + | 17,561,412 | 18,000,448 | ||||||
| Sinclair Broadcast Group, Inc., 8.00%, 03/15/2012 | 17,500,000 | 18,287,500 | ||||||
| WMG Holdings Corp., 6.91%, 12/15/2011 144A | 9,000,000 | 9,135,000 | ||||||
| 194,443,835 | ||||||||
[1] |
| EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS continued |
| January 31, 2005 (unaudited) |
| Principal Amount |
Value | |||||||
|---|---|---|---|---|---|---|---|---|
CORPORATE BONDS continued |
||||||||
CONSUMER DISCRETIONARY continued |
||||||||
Specialty Retail 6.0% |
||||||||
| Aearo Co., 8.25%, 04/15/2012 | $ | 1,755,000 | $ | 1,816,425 | ||||
| American Achievement Corp., 8.25%, 04/01/2012 | 6,155,000 | 6,431,975 | ||||||
| Central Garden & Pet Co., 9.125%, 02/01/2013 | 7,000,000 | 7,717,500 | ||||||
| Da-Lite Screen Co., Inc., 9.50%, 05/15/2011 | 8,850,000 | 9,823,500 | ||||||
| FTD, Inc., 7.75%, 02/15/2014 | 7,570,000 | 7,891,725 | ||||||
| Group 1 Automotive, Inc., 8.25%, 08/15/2013 | 3,000,000 | 3,165,000 | ||||||
| PETCO Animal Supplies, Inc., 10.75%, 11/01/2011 | 10,000,000 | 11,700,000 | ||||||
| Tempur-Pedic, Inc., 10.25%, 08/15/2010 | 1,300,000 | 1,482,000 | ||||||
| United Auto Group, Inc., 9.625%, 03/15/2012 | 8,000,000 | 8,760,000 | ||||||
| Warnaco Group, Inc., 8.875%, 06/15/2013 | 3,200,000 | 3,536,000 | ||||||
| 62,324,125 | ||||||||
| Textiles, Apparel & Luxury Goods 1.2% | ||||||||
| Oxford Industries, Inc., 8.875%, 06/01/2011 | 12,000,000 | 12,840,000 | ||||||
CONSUMER STAPLES 7.0% |
||||||||
Food & Staples Retailing 1.6% |
||||||||
| Ingles Markets, Inc., 8.875%, 12/01/2011 | 7,000,000 | 7,315,000 | ||||||
| Roundy's, Inc., Ser. B, 8.875%, 06/15/2012 þ | 8,175,000 | 8,869,875 | ||||||
| 16,184,875 | ||||||||
| Food Products 3.3% | ||||||||
| B&G Foods Holdings Corp., 8.00%, 10/01/2011 þ | 585,000 | 625,219 | ||||||
| Chiquita Brands International, Inc., 7.50%, 11/01/2014 144A | 2,460,000 | 2,509,200 | ||||||
| Del Monte Corp.: | ||||||||
| 6.75%, 02/15/2015 144A | 1,600,000 | 1,624,000 | ||||||
| 8.625%, 12/15/2012 | 9,217,000 | 10,288,476 | ||||||
| Michael Foods, Inc., 8.00%, 11/15/2013 | 3,400,000 | 3,595,500 | ||||||
| Seminis Vegetable Seeds, Inc., 10.25%, 10/01/2013 | 12,890,000 | 15,468,000 | ||||||
| 34,110,395 | ||||||||
| Personal Products 1.0% | ||||||||
| Playtex Products, Inc., 8.00%, 03/01/2011 þ | 9,000,000 | 9,855,000 | ||||||
| Tobacco 1.1% | ||||||||
| Commonwealth Brands, Inc., 10.625%, 09/01/2008 144A | 7,000,000 | 7,315,000 | ||||||
| North Atlantic Trading, Inc., 9.25%, 03/01/2012 þ | 5,630,000 | 4,447,700 | ||||||
| 11,762,700 | ||||||||
ENERGY 11.4% |
||||||||
Energy Equipment & Services 2.9% |
||||||||
| Grant Prideco, Inc., 9.00%, 12/15/2009 | 6,000,000 | 6,675,000 | ||||||
| Gulfmark Offshore, Inc., 7.75%, 07/15/2014 144A | 4,100,000 | 4,325,500 | ||||||
| Hornbeck Offshore Services, Inc., 6.125%, 12/01/2014 144A | 2,100,000 | 2,105,250 | ||||||
| Parker Drilling Co., Ser. B, 10.125%, 11/15/2009 þ | 14,000,000 | 14,738,500 | ||||||
| SESI LLC, 8.875%, 05/15/2011 | 2,000,000 | 2,185,000 | ||||||
| 30,029,250 | ||||||||
| Oil & Gas 8.5% | ||||||||
| Chesapeake Energy Corp.: | ||||||||
| 6.375%, 06/15/2015 144A | 5,375,000 | 5,509,375 | ||||||
| 6.875%, 01/15/2016 | 3,360,000 | 3,511,200 | ||||||
| 7.50%, 09/15/2013 | 7,000,000 | 7,665,000 | ||||||
| El Paso Production Holding Co., 7.75%, 06/01/2013 | 16,000,000 | 16,720,000 | ||||||
| Evergreen Resources, Inc., 5.875%, 03/15/2012 þ | 1,410,000 | 1,462,178 | ||||||
| Exco Resources, Inc., 7.25%, 01/15/2011 | 2,245,000 | 2,379,700 | ||||||
| General Maritime Corp., 10.00%, 03/15/2013 þ | 4,920,000 | 5,645,700 | ||||||
| Overseas Shipholding Group, Inc., 8.25%, 03/15/2013 | 12,050,000 | 13,315,250 | ||||||
| Plains Exploration & Production Co., 8.75%, 07/01/2012 | 2,500,000 | 2,781,250 | ||||||
[2] |
| EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS continued |
| January 31, 2005 (unaudited) |
| Principal Amount |
Value | |||||||
|---|---|---|---|---|---|---|---|---|
CORPORATE BONDS continued |
||||||||
ENERGY continued |
||||||||
Oil & Gas continued |
||||||||
| Premcor Refining Group, Inc.: | ||||||||
| 6.75%, 05/01/2014 | $ | 9,500,000 | $ | 9,998,750 | ||||
| 9.50%, 02/01/2013 | 6,500,000 | 7,507,500 | ||||||
| Tesoro Petroleum Corp.: | ||||||||
| 8.00%, 04/15/2008 | 3,225,000 | 3,483,000 | ||||||
| 9.625%, 04/01/2012 þ | 6,925,000 | 7,911,813 | ||||||
| 87,890,716 | ||||||||
FINANCIALS 6.9% |
||||||||
Diversified Financial Services 2.3% |
||||||||
| Borden US Finance Corp., 9.00%, 07/15/2014 144A | 2,200,000 | 2,431,000 | ||||||
| Metris Companies, Inc., 10.125%, 07/15/2006 | 12,500,000 | 12,859,375 | ||||||
| Qwest Capital Funding, Inc., 7.00%, 08/03/2009 þ | 8,500,000 | 8,223,750 | ||||||
| 23,514,125 | ||||||||
| Insurance 0.7% | ||||||||
| Crum & Forster Holdings Corp., 10.375%, 06/15/2013 | 6,750,000 | 7,576,875 | ||||||
| Real Estate 3.9% | ||||||||
| Crescent Real Estate Equities, REIT, 9.25%, 04/15/2009 | 7,425,000 | 8,093,250 | ||||||
| HMH Properties, Inc., Ser. B, REIT, 7.875%, 08/01/2008 | 3,814,000 | 3,933,187 | ||||||
| Host Marriott LP, Ser. J, REIT, 7.125%, 11/01/2013 þ | 10,000,000 | 10,575,000 | ||||||
| Omega Healthcare Investors, Inc., REIT: | ||||||||
| 6.95%, 08/01/2007 | 8,255,000 | 8,605,838 | ||||||
| 7.00%, 04/01/2014 | 1,400,000 | 1,421,000 | ||||||
| Thornburg Mortgage, Inc., REIT, 8.00%, 05/15/2013 | 7,825,000 | 8,333,625 | ||||||
| 40,961,900 | ||||||||
HEALTH CARE 10.5% |
||||||||
Health Care Equipment & Supplies 2.0% |
||||||||
| Norcross Safety Products LLC, Ser. B, 9.875%, 08/15/2011 | 2,750,000 | 3,066,250 | ||||||
| NSP Holdings LLC, 11.75%, 01/01/2012 144A | 1,915,000 | 2,001,175 | ||||||
| Universal Hospital Services, Inc., 10.125%, 11/01/2011 | 14,715,000 | 15,303,600 | ||||||
| 20,371,025 | ||||||||
| Health Care Providers & Services 8.3% | ||||||||
| Carriage Services, Inc., 7.875%, 01/15/2015 144A | 1,610,000 | 1,668,363 | ||||||
| Coventry Health Care, Inc., 6.125%, 01/15/2015 144A | 2,000,000 | 2,040,000 | ||||||
| Extendicare Health Services, Inc., 9.50%, 07/01/2010 | 13,000,000 | 14,495,000 | ||||||
| HCA, Inc., 6.375%, 01/15/2015 þ | 3,050,000 | 3,083,181 | ||||||
| IASIS Healthcare Corp., 8.75%, 06/15/2014 | 5,100,000 | 5,520,750 | ||||||
| Select Medical Corp., 9.50%, 06/15/2009 | 9,499,000 | 10,152,056 | ||||||
| Service Corporation International, 6.75%, 04/01/2016 þ | 7,475,000 | 7,512,375 | ||||||
| Stewart Enterprises, Inc., 10.75%, 07/01/2008 | 6,000,000 | 6,510,000 | ||||||
| Team Health, Inc., 9.00%, 04/01/2012 þ | 8,675,000 | 8,588,250 | ||||||
| Tenet Healthcare Corp., 9.875%, 07/01/2014 144A | 14,230,000 | 14,834,775 | ||||||
| Triad Hospital, Inc., 7.00%, 05/15/2012 | 11,000,000 | 11,563,750 | ||||||
| 85,968,500 | ||||||||
| Pharmaceuticals 0.2% | ||||||||
| Alpharma, Inc., 8.625%, 05/01/2011 144A | 2,425,000 | 2,528,062 | ||||||
INDUSTRIALS 11.4% |
||||||||
Aerospace & Defense 0.6% |
||||||||
| Argo Tech Corp., 9.25%, 06/01/2011 | 1,640,000 | 1,804,000 | ||||||
| Moog, Inc., 6.25%, 01/15/2015 | 4,614,000 | 4,694,745 | ||||||
| 6,498,745 | ||||||||
[3] |
| EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS continued |
| January 31, 2005 (unaudited) |
| Principal Amount |
Value | |||||||
|---|---|---|---|---|---|---|---|---|
CORPORATE BONDS continued |
||||||||
INDUSTRIALS continued |
||||||||
Commercial Services & Supplies 7.4% |
||||||||
| American Color Graphics, Inc., 10.00%, 06/15/2010 | $ | 7,250,000 | $ | 6,216,875 | ||||
| Cenveo Corp., 7.875%, 12/01/2013 þ | 8,075,000 | 7,106,000 | ||||||
| Clean Harbors, Inc., 11.25%, 07/15/2012 144A | 7,950,000 | 9,023,250 | ||||||
| Crown Cork & Seal, Inc., 8.00%, 04/15/2023 | 17,000,000 | 16,702,500 | ||||||
| Geo Group, Inc., 8.25%, 07/15/2013 | 4,875,000 | 5,210,156 | ||||||
| Hines Nurseries, Inc., 10.25%, 10/01/2011 | 2,618,000 | 2,873,255 | ||||||
| JohnsonDiversey Holdings, Inc., Sr. Disc. Note, Step Bond, 0.00% 05/15/2013 † þ | 3,000,000 | 2,617,500 | ||||||
| TriMas Corp., 9.875%, 06/15/2012 | 11,025,000 | 11,521,125 | ||||||
| United Rentals North America, Inc., 7.75%, 11/15/2013 þ | 15,000,000 | 14,662,500 | ||||||
| 75,933,161 | ||||||||
| Machinery 3.4% | ||||||||
| Case New Holland, Inc., 9.25%, 08/01/2011 144A | 13,000,000 | 14,267,499 | ||||||
| Douglas Dynamics LLC, 7.75%, 01/15/2012 144A | 5,385,000 | 5,452,313 | ||||||
| Dresser Rand Group, Inc., 7.375%, 11/01/2014 144A | 6,375,000 | 6,550,313 | ||||||
| Terex Corp., 7.375%, 01/15/2014 | 8,750,000 | 9,231,250 | ||||||
| 35,501,375 | ||||||||
INFORMATION TECHNOLOGY 3.6% |
||||||||
Communications Equipment 1.5% |
||||||||
| Lucent Technologies, Inc., 6.45%, 03/15/2029 þ | 16,750,000 | 15,033,125 | ||||||
| Internet Software & Services 1.5% | ||||||||
| UGS Corp., 10.00%, 06/01/2012 144A þ | 14,060,000 | 15,747,200 | ||||||
| IT Services 0.6% | ||||||||
| Stratus Technologies, Inc., 10.375%, 12/01/2008 | 5,000,000 | 4,775,000 | ||||||
| Unisys Corp., 6.875%, 03/15/2010 þ | 1,500,000 | 1,552,500 | ||||||
| 6,327,500 | ||||||||
MATERIALS 25.3% |
||||||||
Chemicals 10.0% |
||||||||
| Arco Chemical Co., 9.80%, 02/01/2020 þ | 4,050,000 | 4,596,750 | ||||||
| Equistar Chemicals LP, 10.625%, 05/01/2011 | 14,000,000 | 16,170,000 | ||||||
| Ethyl Corp., 8.875%, 05/01/2010 | 12,000,000 | 13,260,000 | ||||||
| Huntsman Advanced Materials LLC, 11.00%, 07/15/2010 144A | 6,500,000 | 7,670,000 | ||||||
| Huntsman International LLC: | ||||||||
| 9.875%, 03/01/2009 | 7,000,000 | 7,665,000 | ||||||
| 11.50%, 07/15/2012 144A | 12,250,000 | 14,577,500 | ||||||
| Lyondell Chemical Co.: | ||||||||
| 9.50%, 12/15/2008 | 7,500,000 | 8,137,500 | ||||||
| 10.50%, 06/01/2013 þ | 6,500,000 | 7,702,500 | ||||||
| Millenium America, Inc.: | ||||||||
| 7.625%, 11/15/2026 þ | 5,000,000 | 4,937,500 | ||||||
| 9.25%, 06/15/2008 þ | 4,000,000 | 4,460,000 | ||||||
| OM Group, Inc., 9.25%, 12/15/2011 | 3,500,000 | 3,745,000 | ||||||
| Terra Capital, Inc., 11.50%, 06/01/2010 | 4,550,000 | 5,164,250 | ||||||
| United Industries Corp., 9.875%, 04/01/2009 | 5,000,000 | 5,256,250 | ||||||
| 103,342,250 | ||||||||
| Containers & Packaging 6.6% | ||||||||
| Graham Packaging Co., 9.875%, 10/15/2014 144A | 3,715,000 | 3,910,037 | ||||||
| Graphic Packaging International, Inc., 9.50%, 08/15/2013 þ | 15,000,000 | 16,800,000 | ||||||
| Jefferson Smurfit Corp., 7.50%, 06/01/2013 þ | 15,000,000 | 15,562,500 | ||||||
| Owens-Brockway Glass Containers, Inc.: | ||||||||
| 8.25%, 05/15/2013 | 10,525,000 | 11,498,563 | ||||||
| 8.75%, 11/15/2012 | 12,150,000 | 13,577,625 | ||||||
| Stone Container Corp., 9.75%, 02/01/2011 þ | 6,500,000 | 7,133,750 | ||||||
| 68,482,475 | ||||||||
[4] |
| EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS continued |
| January 31, 2005 (unaudited) |
| Principal Amount |
Value | |||||||
|---|---|---|---|---|---|---|---|---|
CORPORATE BONDS continued |
||||||||
MATERIALS continued |
||||||||
Metals & Mining 6.0% |
||||||||
| Alaska Steel Corp., 7.75%, 06/15/2012 þ | $ | 7,400,000 | $ | 7,640,500 | ||||
| Foundation Pennsylvania Coal Co., 7.25%, 08/01/2014 144A | 8,800,000 | 9,262,000 | ||||||
| Freeport-McMoRan Copper & Gold, Inc.: | ||||||||
| 6.875%, 02/01/2014 | 4,750,000 | 4,773,750 | ||||||
| 10.125%, 02/01/2010 þ | 6,450,000 | 7,320,750 | ||||||
| Oregon Steel Mills, Inc., 10.00%, 07/15/2009 þ | 10,500,000 | 11,707,500 | ||||||
| Peabody Energy Corp.: | ||||||||
| 5.875%, 04/15/2016 þ | 5,175,000 | 5,175,000 | ||||||
| 6.875%, 03/15/2013 þ | 2,720,000 | 2,924,000 | ||||||
| U.S. Steel LLC, 10.75%, 08/01/2008 | 10,827,000 | 12,857,063 | ||||||
| 61,660,563 | ||||||||
| Paper & Forest Products 2.7% | ||||||||
| Amscan Holdings, Inc., 8.75%, 05/01/2014 | 7,450,000 | 7,450,000 | ||||||
| Boise Cascade LLC, 7.125%, 10/15/2014 144A | 1,800,000 | 1,894,500 | ||||||
| Georgia Pacific Corp.: | ||||||||
| 8.00%, 01/15/2024 þ | 4,170,000 | 4,910,175 | ||||||
| 8.125%, 05/15/2011 | 12,000,000 | 13,860,000 | ||||||
| 28,114,675 | ||||||||
TELECOMMUNICATION SERVICES 7.5% |
||||||||
Diversified Telecommunication Services 4.6% |
||||||||
| Consolidated Communications, Inc., 9.75%, 04/01/2012 144A | 12,000,000 | 13,020,000 | ||||||
| FairPoint Communications, Inc.: | ||||||||
| 11.875%, 03/01/2010 | 3,000,000 | 3,525,000 | ||||||
| 12.50%, 05/01/2010 þ | 11,000,000 | 11,935,000 | ||||||
| Insight Midwest LP, 9.75%, 10/01/2009 | 8,000,000 | 8,440,000 | ||||||
| Level 3 Communications, Inc., 9.125%, 05/01/2008 þ | 3,640,000 | 2,912,000 | ||||||
| Qwest Corp., 7.875%, 09/01/2011 144A | 7,300,000 | 7,847,500 | ||||||
| 47,679,500 | ||||||||
| Wireless Telecommunication Services 2.9% | ||||||||
| Centennial Communications Corp., 10.125%, 06/15/2013 | 10,000,000 | 11,375,000 | ||||||
| Nextel Communications, Inc., 7.375%, 08/01/2015 þ | 15,000,000 | 16,612,500 | ||||||
| Rural Cellular Co., 8.25%, 03/15/2012 | 1,420,000 | 1,526,500 | ||||||
| 29,514,000 | ||||||||
UTILITIES 2.5% |
||||||||
Multi-Utilities & Unregulated Power 2.5% |
||||||||
| AES Corp., 9.50%, 06/01/2009 | 6,840,000 | 7,695,000 | ||||||
| NRG Energy, Inc., 8.00%, 12/15/2013 144A | 5,000,000 | 5,412,500 | ||||||
| Reliant Resources, Inc.: | ||||||||
| 6.75%, 12/15/2014 | 8,150,000 | 7,987,000 | ||||||
| 9.25%, 07/15/2010 þ | 4,000,000 | 4,470,000 | ||||||
| 25,564,500 | ||||||||
| Total Corporate Bonds (cost $1,305,367,031) | 1,359,991,112 | |||||||
YANKEE OBLIGATIONS-CORPORATE 9.1% |
||||||||
CONSUMER DISCRETIONARY 1.1% |
||||||||
Media 1.1% |
||||||||
| IMAX Corp., 9.625%, 12/01/2010 þ | 9,950,000 | 10,820,625 | ||||||
FINANCIALS 1.7% |
||||||||
Diversified Financial Services 1.7% |
||||||||
| Northern Telecom Capital Corp., 7.875%, 06/15/2026 | 9,000,000 | 8,932,500 | ||||||
| Ship Finance International, Ltd., 8.50%, 12/15/2013 | 8,640,000 | 8,856,000 | ||||||
| 17,788,500 | ||||||||
[5] |
| EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS continued |
| January 31, 2005 (unaudited) |
| Principal Amount |
Value | |||||||
|---|---|---|---|---|---|---|---|---|
YANKEE OBLIGATIONS-CORPORATE continued |
||||||||
HEALTH CARE 1.8% |
||||||||
Pharmaceuticals 1.8% |
||||||||
| Elan Corp. plc, 7.75%, 11/15/2011 144A | $ | 3,525,000 | $ | 3,701,250 | ||||
| Jean Coutu Group, Inc., 8.50%, 08/01/2014 144A þ | 14,750,000 | 14,786,875 | ||||||
| 18,488,125 | ||||||||
INDUSTRIALS 0.7% |
||||||||
Marine 0.3% |
||||||||
| CP Ships, Ltd., 10.375%, 07/15/2012 | 2,400,000 | 2,796,000 | ||||||
| Transportation Infrastructure 0.4% | ||||||||
| Sea Containers, Ltd., 10.50%, 05/15/2012 | 3,715,000 | 3,910,037 | ||||||
INFORMATION TECHNOLOGY 1.1% |
||||||||
Electronic Equipment & Instruments 0.8% |
||||||||
| Celestica, Inc., 7.875%, 07/01/2011 þ | 7,805,000 | 8,175,737 | ||||||
| Semiconductors & Semiconductor Equipment 0.3% | ||||||||
| Magnachip Semiconductor SA: | ||||||||
| 5.78%, 12/15/2011 144A | 1,750,000 | 1,813,438 | ||||||
| 6.875%, 12/15/2011 144A | 1,750,000 | 1,811,250 | ||||||
| 3,624,688 | ||||||||
MATERIALS 1.9% |
||||||||
Containers & Packaging 0.1% |
||||||||
| Stone Container Finance Co., 7.375%, 07/15/2014 | 1,625,000 | 1,681,875 | ||||||
| Metals & Mining 1.6% | ||||||||
| Gerdau Ameristeel Corp., 10.375%, 07/15/2011 | 1,231,000 | 1,427,960 | ||||||
| Novelis, Inc., 7.25%, 02/15/2015 144A | 14,750,000 | 15,192,500 | ||||||
| 16,620,460 | ||||||||
| Paper & Forest Products 0.2% | ||||||||
| Millar Western Forest Products, Ltd., 7.75%, 11/15/2013 | 1,645,000 | 1,727,250 | ||||||
TELECOMMUNICATION SERVICES 0.8% |
||||||||
Wireless Telecommunication Services 0.8% |
||||||||
| Rogers Wireless, Inc.: | ||||||||
| 6.375%, 03/01/2014 þ | 3,485,000 | 3,528,563 | ||||||
| 7.50%, 03/15/2015 144A | 4,350,000 | 4,687,125 | ||||||
| 8,215,688 | ||||||||
| Total Yankee Obligations-Corporate (cost $89,557,525) | 93,848,985 | |||||||
| Shares | Value | |||||||
|---|---|---|---|---|---|---|---|---|
WARRANTS 0.4% |
||||||||
CONSUMER DISCRETIONARY 0.0% |
||||||||
Media 0.0% |
||||||||
| RCN Corp., Expiring 06/30/2013 * + | 2,110,000 | $ | 0 | |||||
TELECOMMUNICATION SERVICES 0.4% |
||||||||
Wireless Telecommunication Services 0.4% |
||||||||
| American Tower Escrow Corp., Expiring 08/01/2008 * | 17,500 | 4,033,750 | ||||||
| Total Warrants (cost $1,421,436) | 4,033,750 | |||||||
SHORT-TERM INVESTMENTS 25.8% |
||||||||
MUTUAL FUND SHARES 25.8% |
||||||||
| Evergreen Institutional Money Market Fund ø | 13,833,082 | 13,833,082 | ||||||
| Navigator Prime Portfolio þþ | 252,237,828 | 252,237,828 | ||||||
| Total Short-Term Investments (cost $266,070,910) | 266,070,910 | |||||||
| Total Investments (cost $1,662,416,902) 166.8% | 1,723,944,757 | |||||||
| Other Assets and Liabilities and Preferred Shares (66.8%) | (690,437,273 | ) | ||||||
| Net Assets Applicable to Common Shareholders 100.0% | $ | 1,033,507,484 | ||||||
[6] |
| EVERGREEN INCOME ADVANTAGE FUND SCHEDULE OF INVESTMENTS continued |
| January 31, 2005 (unaudited) |
þ |
All or a portion of these securities are on loan. |
| 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. |
| • | Security which has defaulted on payment of interest and/or principal. The Fund has stopped accruing interest on this security. |
| | Security is valued at fair value as determined in good faith under procedures established by the Board of Trustees. |
| † | Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. An effective interest rate is applied to recognize interest income daily for the bond. This rate is based on total expected interest to be earned over the life of the bond which consists of the aggregate coupon-interest payments and discount at acquisition. The rate shown is the stated rate at the current period end. |
| + | Security is deemed illiquid and is valued using market quotations when readily available. |
| * | Non-income producing security |
| ø | Evergreen Investment Management Company, LLC is the investment advisor to both the Fund and the money market fund. |
| þþ | Represents investment of cash collateral received from securities on loan. |
Summary of Abbreviations |
|
|---|---|
REIT |
Real Estate Investment Trust |
On January 31, 2005, the aggregate cost of securities for federal income tax purposes was $1,662,497,265. The gross unrealized appreciation and depreciation on securities based on tax cost was $133,623,166 and $72,175,674, respectively, with a net unrealized appreciation of $61,447,492.
At January 31, 2005, the Fund had the following open interest rate swap agreements:
| Expiration | Notional Amount |
Counterparty | Cash Flow Paid by the Fund |
Cash Flows Received by the fund |
Unrealized Gain |
||||||||||||
| 7/02/2006 | $150,000,000 | Merrill Lynch & Co., Inc. | Fixed-1.95% | Floating-2.39% | $2,978,011 | ||||||||||||
| 11/27/2006 | 105,000,000 | Merrill Lynch & Co., Inc. | Fixed-2.79% | Floating-2.54% | 1,352,392 | ||||||||||||
| 7/02/2008 | 100,000,000 | JPMorgan Chase & Co. | Fixed-2.737% | Floating-2.39% | 3,523,340 | ||||||||||||
| 11/26/2008 | 65,000,000 | Merrill Lynch & Co., Inc. | Fixed-3.585% | Floating-2.54% | 543,698 |
[7] |
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-39(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-3(d) under the Investment Company Act of 1940, are attached as EX-99.CERT. |
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 Income Advantage Fund
|
By: /s/ Dennis H. Ferro —————————————— Dennis H. Ferro, Principal Executive Officer Date: March 28, 2005 |
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/ Dennis H. Ferro —————————————— Dennis H. Ferro, Principal Executive Officer Date: March 28, 2005 |
|
By: /s/ Carol A. Kosel —————————————— Carol A. Kosel, Principal Financial Officer Date: March 28, 2005 |