Edgar Filing: EVERGREEN MULTI-SECTOR 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 811-21331

Evergreen Multi-Sector 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 Multi-Sector Income Fund, for the quarter ended July 31, 2008. This one series has an October 31 fiscal year end.

Date of reporting period: July 31, 2008

Item 1 – Schedule of Investments

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS



July 31, 2008 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED COLLATERALIZED MORTGAGE OBLIGATIONS 11.7%
FIXED-RATE 0.3%
FNMA:
Ser. 2001-25, Class Z, 6.00%, 06/25/2031	$	1,363,100	$	1,388,862
Ser. 2001-51, Class P, 6.00%, 08/25/2030		694,228		704,028


				2,092,890


FLOATING-RATE 11.4%
FHLMC:
Ser. 0196, Class A, 3.30%, 12/15/2021		178,207		179,272
Ser. 1500, Class FD, 3.67%, 05/15/2023		4,529,664		4,496,416
Ser. 1650, Class J, 6.50%, 06/15/2023		354,915		356,899
Ser. 2182, Class FE, 3.02%, 05/15/2028		676,834		674,481
Ser. 2247, Class FC, 3.06%, 08/15/2030		770,652		767,315
Ser. 2390, Class FD, 2.91%, 12/15/2031		149,075		147,776
Ser. 2411, Class F, 3.01%, 02/15/2032		192,273		190,426
Ser. 2412, Class GF, 3.41%, 02/15/2032		4,505,685		4,568,404
Ser. 2431, Class F, 2.96%, 03/15/2032		7,204,956		7,169,652
Ser. 2567, Class FH, 2.86%, 02/15/2033		367,591		365,208
Ser. T-66, Class 2A1, 6.35%, 01/25/2036		8,211,743		8,420,263
Ser. T-67, Class 1A1C, 6.45%, 03/25/2036		24,657,454		25,481,341
Ser. T-67, Class 2A1C, 6.40%, 03/25/2036		1,692,963		1,759,869
FNMA:
Ser. 1996-46, Class FA, 2.97%, 08/25/2021		104,099		103,445
Ser. 2000-45, Class F, 2.91%, 12/25/2030		789,611		783,637
Ser. 2001-24, Class FC, 3.06%, 04/25/2031		286,313		285,363
Ser. 2001-35, Class F, 3.06%, 07/25/2031		65,852		65,601
Ser. 2001-37, Class F, 2.96%, 08/25/2031		275,025		273,063
Ser. 2001-57, Class F, 2.96%, 06/25/2031		66,298		65,811
Ser. 2001-62, Class FC, 3.11%, 11/25/2031		871,489		872,003
Ser. 2001-69, Class PF, 3.46%, 12/25/2031		2,638,733		2,671,571
Ser. 2002-77, Class FH, 2.86%, 12/18/2032		372,618		369,360
Ser. 2002-77, Class FV, 2.96%, 12/18/2032		1,210,741		1,202,617
Ser. 2002-86, Class UF, 3.46%, 12/25/2032		6,163,761		6,241,129
Ser. 2002-95, Class FK, 2.96%, 01/25/2033		9,848,637		9,780,879
Ser. 2002-97, Class FR, 3.01%, 01/25/2033		151,128		149,372
Ser. 2003-W8, Class 3F2, 2.81%, 05/25/2042		1,837,763		1,827,526
Ser. G91-16, Class F, 2.92%, 06/25/2021		108,477		107,253
Ser. G92-17, Class F, 3.52%, 03/25/2022		189,765		190,470
Ser. G92-53, Class FA, 3.22%, 09/25/2022		1,821,284		1,830,299
Ser. G93-11, Class FB, 3.35%, 12/25/2008		103		103
GNMA:
Ser. 1997-13, Class F, 3.00%, 09/16/2027		1,647,635		1,636,794
Ser. 2001-61, Class FA, 2.96%, 09/20/2030		121,260		120,691


				83,154,309


Total Agency Mortgage-Backed Collateralized Mortgage Obligations (cost $86,119,796)				85,247,199


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES 26.9%
FIXED-RATE 5.6%
FHLMC:
6.50%, 06/01/2017		2,633,715		2,732,127
8.50%, 04/01/2015-07/01/2028		474,392		515,809
FHLMC 30 year:
5.50%, TBA #		10,305,000		10,074,745
6.00%, TBA #		12,000,000		12,028,128
FNMA:
5.80%, 07/01/2048		1,768,269		1,807,779
5.82%, 07/01/2038		4,025,952		4,118,423
5.84%, 02/01/2038		520,516		532,472

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FIXED-RATE continued
FNMA:
5.97%, 07/01/2038	$	3,843,122	$	3,928,989
5.98%, 07/01/2038		290,338		297,451
6.00%, 04/01/2033		640,878		659,457
6.17%, 07/01/2038		391,096		399,835
6.50%, 11/01/2032		261,116		270,913
7.00%, 05/01/2032-08/01/2032		1,005,043		1,063,842
7.50%, 07/01/2017-07/01/2032		939,556		1,000,987
8.00%, 12/01/2024-06/01/2030		296,504		320,838
12.00%, 01/01/2016		50,789		57,167
GNMA:
6.50%, 06/15/2028		108,610		112,452
7.25%, 07/15/2017-05/15/2018		960,311		1,027,962


				40,949,376


FLOATING-RATE 21.3%
FHLB:
5.56%, 07/01/2034		581,824		605,737
5.68%, 07/01/2033		312,019		313,120
5.89%, 05/01/2037		12,746,002		12,865,123
6.55%, 11/01/2030		696,209		723,096
FHLMC:
4.89%, 10/01/2030		25,761		25,946
5.07%, 07/01/2035		642,183		666,990
5.24%, 07/01/2032		849,958		858,585
5.29%, 06/01/2033		394,309		400,330
5.30%, 06/01/2030		400,032		402,415
5.41%, 03/01/2032		1,195,217		1,195,676
5.44%, 10/01/2037		4,652,488		4,830,632
5.48%, 12/01/2026		124,138		124,863
5.62%, 06/01/2023		345,815		347,852
5.68%, 10/01/2033		60,454		61,020
5.75%, 02/01/2016		32,996		33,382
5.77%, 07/01/2019		11,022		11,194
5.88%, 02/01/2037		5,386,332		5,466,238
5.90%, 10/01/2024		385,262		391,562
5.91%, 06/01/2028		150,977		153,886
5.92%, 10/01/2017		6,526		6,567
5.94%, 06/01/2035		2,219,424		2,249,752
5.96%, 06/01/2031		723,906		739,094
5.97%, 03/01/2018		252,794		257,810
6.02%, 05/01/2034		1,076,014		1,086,583
6.07%, 05/01/2019		6,959		7,088
6.12%, 09/01/2032		779,099		806,523
6.18%, 01/01/2018		103,986		106,314
6.19%, 10/01/2030		1,902,194		1,928,314
6.25%, 02/01/2016		27,372		27,738
6.33%, 01/01/2030		274,588		285,966
6.34%, 08/01/2017		29,315		29,983
6.40%, 12/01/2022		69,122		71,251
6.41%, 07/01/2030-10/01/2030		694,004		720,378
6.42%, 11/01/2023		168,114		172,931
6.43%, 10/01/2022		140,508		143,906
6.46%, 10/01/2033		295,737		306,540
6.49%, 06/01/2031		425,204		443,096
6.50%, 10/01/2024		51,085		52,983

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FLOATING-RATE continued
FHLMC:
6.51%, 08/01/2030	$	629,991	$	654,737
6.52%, 06/01/2018		74,495		77,170
6.56%, 06/01/2035		145,004		150,121
6.63%, 12/01/2033		2,963,055		3,066,080
6.65%, 03/01/2024		277,478		286,685
6.68%, 05/01/2025-09/01/2032		5,119,840		5,256,636
6.97%, 01/01/2027		285,810		300,312
7.16%, 08/01/2032		1,145,120		1,160,568
8.50%, 03/01/2030		131,982		144,694
FNMA:
3.60%, 04/01/2028		117,921		114,074
3.94%, 10/01/2034		308,239		316,321
4.17%, 04/01/2017-12/01/2017		4,127,726		4,139,960
4.28%, 01/01/2038		5,743,970		5,741,040
4.40%, 02/01/2017		2,525,608		2,528,779
4.45%, 02/01/2035		1,406,196		1,409,727
4.47%, 08/01/2020		1,487,202		1,490,563
4.51%, 03/01/2034		37,499		37,403
4.52%, 03/01/2035		4,999,878		5,042,527
4.81%, 02/01/2035		8,782,027		8,865,720
4.875%, 04/01/2019		73,198		74,301
4.89%, 01/01/2030		82,523		83,823
4.96%, 01/01/2034		532,464		552,580
4.98%, 03/01/2033		171,800		173,090
5.00%, 04/01/2034		5,007,240		5,009,992
5.02%, 03/01/2034		1,134,692		1,179,811
5.11%, 12/01/2022		15,714		16,405
5.23%, 12/01/2036		68,341		70,009
5.25%, 01/01/2017		93,847		95,307
5.26%, 10/01/2029		151,328		151,798
5.27%, 10/01/2035		4,372,668		4,474,085
5.28%, 12/01/2035		5,664,632		5,798,819
5.37%, 06/01/2024-12/01/2034		2,090,708		2,141,866
5.52%, 12/01/2028		57,072		58,917
5.59%, 08/01/2036		6,889,097		7,128,012
5.62%, 08/01/2028		81,981		84,317
5.65%, 07/01/2038		2,714,735		2,775,391
5.73%, 09/01/2032		215,728		225,442
5.74%, 01/01/2015		54,895		55,501
5.75%, 12/01/2016		12,238		12,480
5.77%, 06/01/2033-04/01/2036		5,865,902		6,144,169
5.79%, 06/01/2031		154,455		160,101
5.81%, 12/01/2009		1,931,272		1,931,272
5.86%, 01/01/2036		4,525,104		4,645,908
5.88%, 01/01/2037		10,759,196		10,910,881
5.92%, 01/01/2033		905,073		925,244
5.93%, 09/01/2024-02/01/2035		583,822		602,041
5.94%, 08/01/2027		345,132		355,276
5.99%, 05/01/2021		8,075		8,316
6.00%, 08/01/2021		11,267		12,003
6.08%, 04/01/2031		779,640		796,208
6.11%, 12/01/2013		541,962		560,497
6.14%, 05/01/2027		1,177,722		1,198,549
6.15%, 12/01/2020-07/01/2033		498,871		518,059
6.20%, 12/01/2032		1,283,867		1,306,837

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FLOATING-RATE continued
FNMA:
6.22%, 07/01/2026	$	57,088	$	59,056
6.43%, 04/01/2025		202,840		208,820
6.45%, 05/01/2030		260,243		270,236
6.48%, 01/01/2028		960,339		994,671
6.50%, 12/01/2031		126,195		128,821
6.51%, 04/01/2033		203,874		210,131
6.54%, 06/01/2029		403,791		417,690
6.58%, 09/01/2037		4,722,370		4,837,394
6.60%, 01/01/2026		450,580		465,184
6.625%, 09/01/2027		342,388		356,357
6.63%, 11/01/2024		478,503		494,227
6.72%, 12/01/2026		134,572		138,728
6.77%, 08/01/2030		361,111		375,404
6.81%, 01/01/2028		825,352		859,422
6.93%, 07/01/2030		173,972		183,184
GNMA:
5.00%, 11/20/2030-10/20/2031		995,584		1,003,419
5.125%, 10/20/2029-11/20/2030		2,005,533		2,026,040
5.25%, 02/20/2029		573,330		576,665
5.375%, 01/20/2027-03/20/2028		377,618		383,932
5.50%, 02/20/2031		440,192		444,320
5.625%, 09/20/2030		363,928		368,309


				154,742,898


Total Agency Mortgage-Backed Pass Through Securities (cost $195,333,996)				195,692,274


AGENCY REPERFORMING MORTGAGE-BACKED PASS THROUGH SECURITIES 1.4%
FIXED-RATE 0.1%
FNMA:
Ser. 2001-T10, Class A2, 7.50%, 12/25/2041		375,180		405,511
Ser. 2003-W02, Class 2A8, 5.67%, 07/25/2042		444,362		454,062


				859,573


FLOATING-RATE 1.3%
FNMA:
Ser. 2002-T6, Class A4, 6.04%, 03/25/2041		2,924,677		2,914,270
Ser. 2004-T03, Class 2A, 6.09%, 08/25/2043		1,356,121		1,372,493
Ser. 2005-W4, Class 3A, 6.11%, 06/25/2035		5,385,844		5,323,638


				9,610,401


Total Agency Reperforming Mortgage-Backed Pass Through Securities (cost $10,687,771)				10,469,974


ASSET-BACKED SECURITIES 0.2%
GSAA Home Equity Trust, Ser. 2007-5, Class 1AV1, FRN, 2.56%, 03/25/2047 (cost $1,381,801)		1,514,302		1,303,647


CORPORATE BONDS 59.5%
CONSUMER DISCRETIONARY 12.7%
Auto Components 0.9%
Cooper Standard Automotive, Inc., 8.375%, 12/15/2014 ρ		670,000		479,050
Cooper Tire & Rubber Co., 7.625%, 03/15/2027		2,630,000		1,998,800
Goodyear Tire & Rubber Co., 9.00%, 07/01/2015 ρ		1,375,000		1,392,187
Metaldyne Corp.:
10.00%, 11/01/2013		5,600,000		2,324,000
11.00%, 06/15/2012		1,506,000		353,910


				6,547,947

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Automobiles 1.0%
Ford Motor Co., 7.70%, 05/15/2097	$	7,045,000	$	3,205,475
General Motors Corp.:
6.75%, 12/01/2014		370,000		212,173
7.20%, 01/15/2011 ρ		4,445,000		2,933,700
8.25%, 07/15/2023 ρ		1,900,000		950,000
8.375%, 07/15/2033 ρ		640,000		318,400


				7,619,748


Diversified Consumer Services 0.3%
Carriage Services, Inc., 7.875%, 01/15/2015		850,000		813,875
Service Corporation International, 6.75%, 04/01/2015		45,000		42,638
Sotheby’s, 7.75%, 06/15/2015 144A		1,000,000		991,450


				1,847,963


Hotels, Restaurants & Leisure 3.6%
Boyd Gaming Corp., 7.75%, 12/15/2012 ρ		1,485,000		1,239,975
Caesars Entertainment, Inc.:
7.875%, 03/15/2010 ρ		1,570,000		1,393,375
8.125%, 05/15/2011 ρ		565,000		426,575
Fontainebleau Las Vegas Holdings, LLC, 10.25%, 06/15/2015 144A		5,156,000		2,758,460
Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/2010		2,075,000		1,525,125
Isle of Capri Casinos, Inc., 7.00%, 03/01/2014		5,600,000		3,920,000
MGM MIRAGE, 8.50%, 09/15/2010		375,000		362,813
Pinnacle Entertainment, Inc., 8.75%, 10/01/2013		195,000		187,200
Pokagon Gaming Authority, 10.375%, 06/15/2014 144A		1,679,000		1,737,765
Seneca Gaming Corp., 7.25%, 05/01/2012 ρ		940,000		862,450
Shingle Springs Tribal Gaming Authority, 9.375%, 06/15/2015 144A		2,835,000		2,310,525
Six Flags, Inc.:
8.875%, 02/01/2010		355,000		282,225
9.625%, 06/01/2014 ρ		791,000		401,432
12.25%, 07/15/2016 144A		204,000		185,130
Trump Entertainment Resorts, Inc., 8.50%, 06/01/2015		7,416,000		3,689,460
Universal City Development Partners, Ltd., 11.75%, 04/01/2010		4,580,000		4,683,050


				25,965,560


Household Durables 2.0%
Centex Corp.:
4.875%, 08/15/2008		1,250,000		1,248,438
5.80%, 09/15/2009 ρ		1,515,000		1,477,125
D.R. Horton, Inc.:
4.875%, 01/15/2010		625,000		578,125
5.00%, 01/15/2009		1,435,000		1,413,475
8.00%, 02/01/2009		875,000		875,000
9.75%, 09/15/2010		1,085,000		1,080,931
Hovnanian Enterprises, Inc.:
6.00%, 01/15/2010 ρ		810,000		708,750
6.50%, 01/15/2014		378,000		240,030
11.50%, 05/01/2013 144A		190,000		193,325
KB Home, 8.625%, 12/15/2008		570,000		574,275
Lennar Corp.:
5.125%, 10/01/2010		2,125,000		1,859,375
7.625%, 03/01/2009		650,000		641,875
Libbey, Inc., FRN, 9.93%, 06/01/2011		2,190,000		2,211,900
Meritage Homes Corp., 7.00%, 05/01/2014		1,205,000		970,025
Pulte Homes, Inc.:
7.875%, 08/01/2011		195,000		189,150
8.125%, 03/01/2011		405,000		398,925


				14,660,724

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Internet & Catalog Retail 0.1%
Ticketmaster, 10.75%, 08/01/2016 144A	$	815,000	$	847,600


Media 3.1%
Cablevision Systems Corp., Ser. B, 8.00%, 04/15/2012		520,000		500,500
Charter Communications, Inc.:
8.00%, 04/30/2012 144A		280,000		268,100
10.875%, 09/15/2014 144A		3,725,000		3,892,625
CSC Holdings, Inc., 7.625%, 04/01/2011		1,715,000		1,704,281
DIRECTV Holdings, LLC, 7.625%, 05/15/2016 144A		45,000		44,888
Idearc, Inc., 8.00%, 11/15/2016		4,825,000		2,219,500
Ion Media Networks, Inc., FRN, 9.04%, 01/15/2013 144A		3,008,916		1,925,706
Lamar Media Corp.:
7.25%, 01/01/2013		180,000		172,800
Ser. B, 6.625%, 08/15/2015		80,000		72,400
Mediacom, LLC, 7.875%, 02/15/2011		470,000		439,450
R.H. Donnelley Corp., 11.75%, 05/15/2015 144A		2,583,000		1,924,335
Sinclair Broadcast Group, Inc., 8.00%, 03/15/2012		1,327,000		1,330,317
Sirius Satellite Radio, Inc., 9.625%, 08/01/2013		2,295,000		1,893,375
Visant Corp., 7.625%, 10/01/2012		3,035,000		2,959,125
XM Satellite Radio Holdings, Inc., 13.00%, 08/01/2013 144A		1,340,000		1,229,450
Young Broadcasting, Inc.:
8.75%, 01/15/2014		2,706,000		1,170,345
10.00%, 03/01/2011		1,280,000		617,600


				22,364,797


Multi-line Retail 0.2%
Macy’s, Inc., 7.875%, 07/15/2015		595,000		592,285
Neiman Marcus Group, Inc., 9.00%, 10/15/2015 ρ		815,000		802,775


				1,395,060


Specialty Retail 0.7%
AutoZone, Inc.:
6.50%, 01/15/2014 #		400,000		403,610
7.125%, 08/01/2018 #		400,000		407,722
Best Buy Co., Inc., 6.75%, 07/15/2013 144A		395,000		401,666
Home Depot, Inc., 5.875%, 12/16/2036		665,000		527,385
Michaels Stores, Inc., 10.00%, 11/01/2014 ρ		560,000		452,200
Payless ShoeSource, Inc., 8.25%, 08/01/2013		3,295,000		2,981,975


				5,174,558


Textiles, Apparel & Luxury Goods 0.8%
AAC Group Holdings Corp., Sr. Disc. Note, Step Bond, 0.00%, 10/01/2012 †		445,000		429,425
Oxford Industries, Inc., 8.875%, 06/01/2011		5,256,000		5,072,040
Unifi, Inc., 11.50%, 05/15/2014		503,000		420,005


				5,921,470


CONSUMER STAPLES 1.8%
Beverages 0.0%
Constellation Brands, Inc., 8.375%, 12/15/2014		45,000		46,238


Food & Staples Retailing 0.2%
Ingles Markets, Inc., 8.875%, 12/01/2011		970,000		986,975
Rite Aid Corp., 10.375%, 07/15/2016 ρ		690,000		643,425


				1,630,400


Food Products 0.8%
Dean Foods Co., 6.625%, 05/15/2009		195,000		195,000
Del Monte Foods Co.:
6.75%, 02/15/2015		855,000		803,700
8.625%, 12/15/2012		2,949,000		3,030,097

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
CONSUMER STAPLES continued
Food Products continued
Pilgrim’s Pride Corp.:
7.625%, 05/01/2015	$	1,430,000	$	1,215,500
8.375%, 05/01/2017 ρ		275,000		211,750
Smithfield Foods, Inc., 7.75%, 07/01/2017 ρ		225,000		193,500


				5,649,547


Household Products 0.4%
American Achievement Corp., 8.25%, 04/01/2012 144A		2,915,000		2,856,700
Church & Dwight Co., 6.00%, 12/15/2012		275,000		268,125


				3,124,825


Personal Products 0.4%
Central Garden & Pet Co., 9.125%, 02/01/2013		3,115,000		2,569,875


ENERGY 7.8%
Energy Equipment & Services 1.6%
Bristow Group, Inc., 7.50%, 09/15/2017 ρ		1,230,000		1,217,700
GulfMark Offshore, Inc., 7.75%, 07/15/2014		1,260,000		1,247,400
Hornbeck Offshore Services, Inc., Ser. B, 6.125%, 12/01/2014		3,220,000		3,099,250
Parker Drilling Co., 9.625%, 10/01/2013		2,131,000		2,237,550
PHI, Inc., 7.125%, 04/15/2013		3,105,000		2,949,750
Stallion Oilfield Services, Ltd., 9.75%, 02/01/2015 144A		695,000		552,525


				11,304,175


Oil, Gas & Consumable Fuels 6.2%
Chesapeake Energy Corp.:
6.875%, 01/15/2016		1,260,000		1,217,475
7.25%, 12/15/2018		3,955,000		3,895,675
Delta Petroleum Corp., 7.00%, 04/01/2015		1,800,000		1,503,000
El Paso Corp.:
7.00%, 06/15/2017		425,000		427,601
7.25%, 06/01/2018		145,000		144,275
7.75%, 01/15/2032		95,000		94,900
Encore Acquisition Co.:
6.00%, 07/15/2015		1,385,000		1,260,350
6.25%, 04/15/2014		615,000		579,638
Energy Partners, Ltd., 9.75%, 04/15/2014 ρ		663,000		613,275
Exco Resources, Inc., 7.25%, 01/15/2011 ρ		2,495,000		2,482,525
Ferrellgas Partners, LP, 6.75%, 05/01/2014		2,100,000		1,785,000
Forbes Energy Services, LLC, 11.00%, 02/15/2015 144A		3,800,000		3,819,000
Forest Oil Corp.:
7.25%, 06/15/2019		515,000		486,675
7.25%, 06/15/2019 144A		1,045,000		987,525
Frontier Oil Corp., 6.625%, 10/01/2011 ρ		760,000		741,000
Newfield Exploration Co.:
6.625%, 04/15/2016 ρ		1,360,000		1,275,000
7.125%, 05/15/2018		660,000		627,000
Peabody Energy Corp.:
5.875%, 04/15/2016		3,940,000		3,772,550
7.875%, 11/01/2026		590,000		592,950
Petrohawk Energy Corp., 7.875%, 06/01/2015 144A		2,990,000		2,907,775
Plains Exploration & Production Co.:
7.625%, 06/01/2018		900,000		877,500
7.75%, 06/15/2015		930,000		918,375
Quicksilver Resources, Inc., 7.75%, 08/01/2015 ρ		905,000		884,637
Sabine Pass LNG, LP:
7.25%, 11/30/2013		845,000		735,150
7.50%, 11/30/2016 ρ		3,865,000		3,343,225

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
ENERGY continued
Oil, Gas & Consumable Fuels continued
SandRidge Energy, Inc., 8.00%, 06/01/2018 144A	$	350,000	$	348,250
Southwestern Energy Co., 7.50%, 02/01/2018 144A		690,000		710,700
Tesoro Corp.:
6.50%, 06/01/2017		2,870,000		2,453,850
6.625%, 11/01/2015		155,000		137,175
Williams Cos.:
7.50%, 01/15/2031		2,080,000		2,126,800
8.125%, 03/15/2012		3,195,000		3,434,625


				45,183,476


FINANCIALS 9.5%
Capital Markets 0.3%
E*TRADE Financial Corp.:
7.375%, 09/15/2013 ρ		45,000		38,250
8.00%, 06/15/2011		45,000		39,825
12.50%, 11/30/2017 144A		1,120,000		1,209,600
12.50%, 11/30/2017		205,000		217,300
Lehman Brothers Holdings, Inc., 6.875%, 05/02/2018		635,000		597,157


				2,102,132


Consumer Finance 5.8%
CCH II Capital Corp., 10.25%, 09/15/2010		5,265,000		5,041,237
Daimler Financial Services AG, 4.875%, 06/15/2010		1,000,000		1,001,941
Ford Motor Credit Co., LLC:
5.70%, 01/15/2010		4,805,000		4,140,814
5.80%, 01/12/2009		1,990,000		1,930,579
7.375%, 10/28/2009		1,605,000		1,462,346
9.75%, 09/15/2010		6,043,000		5,219,762
General Motors Acceptance Corp., LLC:
6.875%, 09/15/2011		5,170,000		3,415,896
6.875%, 08/28/2012		7,030,000		4,415,487
7.75%, 01/19/2010		2,100,000		1,697,029
8.00%, 11/01/2031		4,840,000		2,716,813
FRN, 3.93%, 05/15/2009		4,300,000		3,806,528
HSBC Finance Corp., 5.00%, 06/30/2015		2,400,000		2,281,186
Sprint Capital Corp., 6.875%, 11/15/2028		2,715,000		2,156,856
Toll Corp.:
8.25%, 02/01/2011		2,955,000		2,836,800
8.25%, 12/01/2011		280,000		266,700


				42,389,974


Diversified Financial Services 1.0%
Citigroup, Inc., FRN, 8.40%, 04/29/2049		210,000		180,073
JPMorgan Chase & Co., FRN, 7.90%, 12/31/2049		2,085,000		1,934,329
Leucadia National Corp.:
7.125%, 03/15/2017		555,000		522,394
8.125%, 09/15/2015		4,160,000		4,165,200


				6,801,996


Real Estate Investment Trusts 1.3%
Host Marriott Corp.:
7.125%, 11/01/2013		2,630,000		2,432,750
Ser. O, 6.375%, 03/15/2015		245,000		214,375
Ser. Q, 6.75%, 06/01/2016		2,990,000		2,571,400
Omega Healthcare Investors, Inc.:
7.00%, 04/01/2014		1,255,000		1,207,937
7.00%, 01/15/2016		2,185,000		2,053,900
Ventas, Inc., 7.125%, 06/01/2015		1,010,000		999,900


				9,480,262

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
FINANCIALS continued
Real Estate Management & Development 0.0%
Realogy Corp., 10.50%, 04/15/2014 ρ	$	75,000	$	49,125


Thrifts & Mortgage Finance 1.1%
Residential Capital, LLC:
8.50%, 05/15/2010 144A		3,390,000		2,440,800
9.625%, 05/15/2015 144A		4,797,000		1,894,815
Step Bond:
8.125%, 11/21/2008 ρ ††		2,120,000		1,950,400
8.375%, 06/30/2010 ††		6,155,000		1,938,825


				8,224,840


HEALTH CARE 2.6%
Health Care Equipment & Supplies 0.1%
Biomet, Inc., 11.625%, 10/15/2017 ρ		665,000		705,731


Health Care Providers & Services 2.5%
HCA, Inc.:
8.75%, 09/01/2010		2,780,000		2,821,700
9.25%, 11/15/2016		8,195,000		8,461,337
Humana, Inc., 7.20%, 06/15/2018		1,440,000		1,399,776
Omnicare, Inc.:
6.125%, 06/01/2013		3,745,000		3,454,763
6.875%, 12/15/2015		2,320,000		2,134,400
Symbion, Inc., 11.00%, 08/23/2015 144A		315,000		239,400


				18,511,376


INDUSTRIALS 5.4%
Aerospace & Defense 3.2%
Alliant Techsystems, Inc., 6.75%, 04/01/2016 ρ		1,035,000		1,001,363
DAE Aviation Holdings, 11.25%, 08/01/2015 144A		385,000		377,300
DRS Technologies, Inc.:
6.625%, 02/01/2016		1,515,000		1,537,725
7.625%, 02/01/2018		400,000		418,000
L-3 Communications Holdings, Inc.:
5.875%, 01/15/2015		13,220,000		12,327,650
6.375%, 10/15/2015		5,084,000		4,804,380
Sequa Corp.:
11.75%, 12/01/2015 144A		60,000		52,500
13.50%, 12/01/2015 144A		815,000		713,125
Vought Aircraft Industries, Inc., 8.00%, 07/15/2011		2,425,000		2,249,187


				23,481,230


Building Products 0.1%
Ply Gem Industries, Inc., 11.75%, 06/15/2013 144A		555,000		499,500


Commercial Services & Supplies 0.8%
Allied Waste North America, Inc., 6.875%, 06/01/2017		320,000		308,800
Browning-Ferris Industries, Inc.:
7.40%, 09/15/2035		2,495,000		2,257,975
9.25%, 05/01/2021		1,530,000		1,614,150
Corrections Corporation of America, 6.25%, 03/15/2013		75,000		73,687
Geo Group, Inc., 8.25%, 07/15/2013		150,000		153,000
Iron Mountain, Inc., 8.00%, 06/15/2020		45,000		43,988
Mobile Mini, Inc., 6.875%, 05/01/2015		1,420,000		1,221,200


				5,672,800


Machinery 0.8%
Commercial Vehicle Group, Inc., 8.00%, 07/01/2013		6,370,000		5,446,350

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
INDUSTRIALS continued
Road & Rail 0.4%
Avis Budget Car Rental, LLC, 7.75%, 05/15/2016	$	935,000	$	649,825
Hertz Global Holdings, Inc.:
8.875%, 01/01/2014		690,000		636,525
10.50%, 01/01/2016 ρ		95,000		83,125
Kansas City Southern:
7.50%, 06/15/2009		1,140,000		1,158,525
8.00%, 06/01/2015		330,000		334,950
Swift Transportation Co., Inc., 12.50%, 05/15/2017 144A ρ		450,000		177,750


				3,040,700


Trading Companies & Distributors 0.1%
Neff Corp., 10.00%, 06/01/2015 ρ		220,000		82,500
United Rentals, Inc., 6.50%, 02/15/2012		970,000		880,275


				962,775


INFORMATION TECHNOLOGY 2.5%
Communications Equipment 0.0%
EchoStar Corp., 7.75%, 05/31/2015		255,000		246,075


Electronic Equipment & Instruments 1.3%
Da-Lite Screen Co., Inc., 9.50%, 05/15/2011		3,030,000		2,923,950
Jabil Circuit, Inc.:
5.875%, 07/15/2010		595,000		583,100
8.25%, 03/15/2018		5,465,000		5,465,000
Sanmina-SCI Corp., 8.125%, 03/01/2016		645,000		577,275


				9,549,325


IT Services 0.9%
First Data Corp., 9.875%, 09/24/2015 144A ρ		1,055,000		934,994
ipayment, Inc., 9.75%, 05/15/2014		1,835,000		1,545,988
Lender Processing Services, Inc., 8.125%, 07/01/2016 144A		960,000		963,600
SunGard Data Systems, Inc.:
4.875%, 01/15/2014		1,955,000		1,744,837
10.25%, 08/15/2015		55,000		56,100
Unisys Corp., 6.875%, 03/15/2010		1,235,000		1,191,775


				6,437,294


Semiconductors & Semiconductor Equipment 0.3%
Freescale Semiconductor, Inc., 9.125%, 12/15/2014		460,000		374,900
Spansion, Inc., FRN, 5.81%, 06/01/2013 144A		2,000,000		1,410,000


				1,784,900


MATERIALS 7.5%
Chemicals 2.9%
Airgas, Inc., 7.125%, 10/01/2018 144A		90,000		90,675
ARCO Chemical Co.:
9.80%, 02/01/2020 ρ		2,150,000		1,601,750
10.25%, 11/01/2010		180,000		180,900
Huntsman, LLC:
7.375%, 01/01/2015		395,000		367,350
11.625%, 10/15/2010		3,000,000		3,127,500
Koppers Holdings, Inc.:
9.875%, 10/15/2013		215,000		226,556
Sr. Disc. Note, Step Bond, 0.00%, 11/15/2014 †		2,270,000		2,054,350
MacDermid, Inc., 9.50%, 04/15/2017 144A ρ		3,383,000		3,112,360
Millenium America, Inc., 7.625%, 11/15/2026		2,520,000		1,474,200
Momentive Performance Materials, Inc.:
9.75%, 12/01/2014		920,000		818,800
10.125%, 12/01/2014 ρ		3,065,000		2,697,200

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
MATERIALS continued
Chemicals continued
Mosaic Co.:
7.30%, 01/15/2028	$	1,285,000	$	1,240,025
7.625%, 12/01/2016 144A		1,800,000		1,899,000
Tronox Worldwide, LLC, 9.50%, 12/01/2012		3,830,000		2,393,750


				21,284,416


Construction Materials 0.6%
CPG International, Inc.:
10.50%, 07/01/2013		3,605,000		2,865,975
FRN, 9.90%, 07/01/2012		690,000		534,750
CRH America, Inc., 8.125%, 07/15/2018		545,000		551,276


				3,952,001


Containers & Packaging 1.8%
Berry Plastics Holdings Corp., 8.875%, 09/15/2014 ρ		636,000		511,980
Exopack Holding Corp., 11.25%, 02/01/2014		3,375,000		3,020,625
Graham Packaging Co.:
8.50%, 10/15/2012		2,320,000		2,169,200
9.875%, 10/15/2014 ρ		1,670,000		1,436,200
Graphic Packaging International, Inc.:
8.50%, 08/15/2011 ρ		1,890,000		1,814,400
9.50%, 08/15/2013 ρ		1,475,000		1,379,125
Smurfit-Stone Container Corp., 8.375%, 07/01/2012 ρ		3,110,000		2,760,125


				13,091,655


Metals & Mining 0.9%
Freeport-McMoRan Copper & Gold, Inc.:
8.25%, 04/01/2015		400,000		417,532
8.375%, 04/01/2017		3,345,000		3,509,290
Indalex Holdings Corp., 11.50%, 02/01/2014		2,615,000		1,503,625
PNA Group, Inc., 10.75%, 09/01/2016		1,095,000		1,305,787


				6,736,234


Paper & Forest Products 1.3%
Georgia Pacific Corp.:
8.125%, 05/15/2011		2,880,000		2,851,200
8.875%, 05/15/2031		1,395,000		1,283,400
International Paper Co., 7.95%, 06/15/2018		2,815,000		2,803,949
Verso Paper Holdings, LLC:
9.125%, 08/01/2014		90,000		81,000
11.375%, 08/01/2016		2,928,000		2,474,160


				9,493,709


TELECOMMUNICATION SERVICES 4.0%
Diversified Telecommunication Services 1.4%
Citizens Communications Co.:
7.875%, 01/15/2027		700,000		619,500
9.25%, 05/15/2011		1,570,000		1,640,650
FairPoint Communications, Inc., 13.125%, 04/01/2018 144A ρ		665,000		665,000
Qwest Corp.:
6.50%, 06/01/2017		1,035,000		856,463
7.50%, 06/15/2023		705,000		581,625
7.875%, 09/01/2011		105,000		103,950
8.875%, 03/15/2012		4,395,000		4,405,987
West Corp., 11.00%, 10/15/2016		1,665,000		1,332,000


				10,205,175

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
TELECOMMUNICATION SERVICES continued
Wireless Telecommunication Services 2.6%
Centennial Communications Corp.:
8.125%, 02/01/2014 ρ	$	2,850,000	$	2,892,750
10.125%, 06/15/2013		915,000		956,175
Cricket Communications, Inc., 9.375%, 11/01/2014 ρ		1,880,000		1,851,800
MetroPCS Communications, Inc., 9.25%, 11/01/2014 ρ		3,090,000		3,012,750
Rural Cellular Corp., 8.25%, 03/15/2012		5,410,000		5,558,775
Sprint Nextel Corp.:
6.90%, 05/01/2019		1,740,000		1,486,009
Ser. D, 7.375%, 08/01/2015		2,290,000		1,764,392
Ser. F, 5.95%, 03/15/2014		2,015,000		1,533,107


				19,055,758


UTILITIES 5.7%
Electric Utilities 5.6%
Allegheny Energy Supply Co., 8.25%, 04/15/2012 144A		3,880,000		4,093,400
Aquila, Inc., Step Bond, 11.875%, 07/01/2012 ††		6,927,000		8,069,955
CMS Energy Corp.:
6.55%, 07/17/2017		200,000		193,398
8.50%, 04/15/2011 ρ		355,000		376,491
Edison Mission Energy, 7.00%, 05/15/2017		380,000		361,000
Energy Future Holdings Corp.:
10.875%, 11/01/2017 144A		3,015,000		3,120,525
11.25%, 11/01/2017 144A		1,810,000		1,800,950
Mirant Mid-Atlantic, LLC, Ser. C, 10.06%, 12/30/2028		1,008,395		1,136,965
Mirant North America, LLC, 7.375%, 12/31/2013		5,035,000		5,060,175
NRG Energy, Inc., 7.375%, 02/01/2016		4,265,000		4,147,712
Orion Power Holdings, Inc., 12.00%, 05/01/2010		5,080,000		5,499,100
PNM Resources, Inc., 9.25%, 05/15/2015		400,000		409,500
Public Service Company of New Mexico, 7.95%, 04/01/2015		420,000		426,872
Reliant Energy, Inc.:
6.75%, 12/15/2014		5,425,000		5,560,625
7.875%, 06/15/2017 ρ		85,000		82,450
Texas Competitive Electric Holdings Co., LLC:
10.25%, 11/01/2015 144A		330,000		331,650
10.50%, 11/01/2016 144A		55,000		53,213


				40,723,981


Independent Power Producers & Energy Traders 0.1%
AES Corp.:
8.00%, 10/15/2017		110,000		108,900
8.00%, 06/01/2020 144A		665,000		643,387
Dynegy Holdings, Inc., 7.50%, 06/01/2015		45,000		42,863


				795,150


Total Corporate Bonds (cost $479,858,848)				432,578,427


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 22.0%
CONSUMER DISCRETIONARY 0.4%
Media 0.1%
Central European Media Enterprise, Ltd.:
8.25%, 05/15/2012 EUR		500,000		779,400
FRN, 6.20%, 05/15/2014 EUR		250,000		357,408


				1,136,808


Multi-line Retail 0.3%
Marks & Spencer Group plc, 6.375%, 11/07/2011 GBP		1,000,000		1,884,269

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued
CONSUMER STAPLES 1.4%
Beverages 0.2%
Canandaigua Brands, Inc., 8.50%, 11/15/2009 GBP		750,000	$	1,482,710


Food & Staples Retailing 0.4%
Koninklijke Ahold NV, 5.875%, 03/14/2012 EUR		1,000,000		1,543,383
Tesco plc, 3.875%, 03/24/2011 EUR		620,000		935,581


				2,478,964


Tobacco 0.8%
British American Tobacco plc, 5.75%, 12/09/2013 GBP		3,140,000		6,030,862


ENERGY 0.7%
Oil, Gas & Consumable Fuels 0.7%
GAZ Capital SA, 6.61%, 02/13/2018 EUR		1,600,000		2,244,944
GAZPROM OAO, 5.36%, 10/31/2014 EUR		1,100,000		1,501,120
Transco plc, 7.00%, 12/15/2008 AUD		1,000,000		936,208


				4,682,272


FINANCIALS 16.2%
Capital Markets 0.4%
Morgan Stanley, 5.375%, 11/14/2013 GBP		1,510,000		2,691,091


Commercial Banks 9.4%
Bank Nederlandse Gemeenten NV, 4.875%, 04/21/2010 GBP		6,695,000		13,100,302
Eurofima:
6.25%, 12/28/2018 AUD		2,450,000		2,202,488
6.50%, 08/22/2011 AUD		5,000,000		4,643,532
European Investment Bank:
5.75%, 09/15/2009 AUD		5,470,000		5,057,261
6.125%, 01/23/2017 AUD		8,530,000		7,643,689
Institut Credito Official, 4.375%, 05/23/2012 EUR		3,800,000		5,849,031
Kommunalbanken AS, 4.125%, 06/03/2013 CAD		1,980,000		1,946,845
Kreditanstalt für Wiederaufbau:
4.95%, 10/14/2014 CAD		6,310,000		6,452,440
6.00%, 07/15/2009 NZD		12,850,000		9,303,619
Landwirtschaftliche Rentenbank:
4.25%, 11/16/2012 CAD		7,110,000		7,093,131
5.75%, 01/21/2015 AUD		5,330,000		4,675,344
Rabobank Australia, Ltd., 6.25%, 11/22/2011 NZD		725,000		518,337


				68,486,019


Consumer Finance 2.3%
ABB International Finance, Ltd., 6.50%, 11/30/2011 EUR		5,360,000		8,636,488
HSBC Finance Corp., 7.00%, 03/27/2012 GBP		370,000		736,347
Total Capital SA, 5.50%, 01/29/2013 GBP		1,000,000		1,962,796
Toyota Motor Credit Corp., 8.50%, 12/21/2010 NZD		5,460,000		4,091,278
Virgin Media Finance plc, 8.75%, 04/15/2014 EUR		940,000		1,329,734


				16,756,643


Diversified Financial Services 1.4%
Dubai Holding Commercial Operations Group, LLC, 6.00%, 02/01/2017 GBP		1,000,000		1,761,355
General Electric Capital Corp., 5.25%, 12/10/2013 GBP		780,000		1,493,977
General Electric Capital European Funding, 4.125%, 10/27/2016 EUR		4,750,000		6,688,232


				9,943,564


Insurance 0.6%
AIG SunAmerica, Inc., 5.625%, 02/01/2012 GBP		2,000,000		3,648,133
Travelers Insurance Co., 6.00%, 04/07/2009 AUD		1,000,000		924,142


				4,572,275

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued
FINANCIALS continued
Thrifts & Mortgage Finance 2.1%
Nykredit, 5.00%, 10/01/2035 DKK		26,499,536	$	5,184,793
Realkredit Danmark, 4.00%, 10/01/2035 DKK		17,628,602		3,168,202
Totalkredit, FRN, 5.36%, 01/01/2015 DKK		33,727,675		7,011,404


				15,364,399


INDUSTRIALS 0.5%
Aerospace & Defense 0.2%
Bombardier, Inc., 7.25%, 11/15/2016 EUR		930,000		1,373,576


Machinery 0.3%
Harsco Corp., 7.25%, 10/27/2010 GBP		1,000,000		2,012,385
Savcio Holdings, Ltd., 8.00%, 02/15/2013 EUR		250,000		344,397


				2,356,782


INFORMATION TECHNOLOGY 0.4%
Office Electronics 0.4%
Xerox Corp., 9.75%, 01/15/2009 EUR		1,800,000		2,875,987


MATERIALS 0.3%
Containers & Packaging 0.1%
Owens-Illinois European Group BV, 6.875%, 03/31/2017 EUR		500,000		705,357


Metals & Mining 0.2%
New World Resources NV, 7.375%, 05/15/2015 EUR		1,000,000		1,395,126


TELECOMMUNICATION SERVICES 1.7%
Diversified Telecommunication Services 1.7%
Deutsche Telekom AG, 6.25%, 12/09/2010 GBP		2,700,000		5,296,643
France Telecom:
4.75%, 02/21/2017 EUR		2,000,000		2,899,194
7.25%, 01/28/2013 EUR		1,850,000		3,067,152
Nordic Telephone Co., 8.25%, 05/01/2016 EUR		900,000		1,262,628


				12,525,617


UTILITIES 0.4%
Multi-Utilities 0.4%
Veolia Environnement SA, 4.00%, 02/12/2016 EUR		2,000,000		2,813,420


Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated) (cost $151,361,127)				159,555,741


FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 16.9%
Australia, Ser. 17RG, 5.50%, 03/01/2017 AUD		3,100,000		2,661,962
Caisse d’Amortissement de la Dette Sociale, 4.125%, 04/25/2017 EUR		6,580,000		9,863,933
Canada:
3.95%, 06/15/2013 CAD		3,128,000		3,086,159
4.40%, 03/08/2016 CAD		5,290,000		5,237,523
Denmark, 4.00%, 11/15/2017 DKK		69,420,000		13,822,229
France, 4.25%, 04/25/2019 EUR		7,700,000		11,696,140
Korea:
5.25%, 09/10/2015 KRW		2,850,000,000		2,714,885
5.25%, 03/10/2027 KRW		6,285,000,000		5,768,109
Malaysia, 3.83%, 09/28/2011 MYR		27,000,000		8,260,864
Mexico, 10.00%, 12/05/2024 MXN		84,440,000		9,103,886
Netherlands:
4.00%, 07/15/2016 EUR		3,995,000		6,032,689
4.00%, 07/15/2018 EUR		8,225,000		12,278,798
Norway, 4.25%, 05/19/2017 NOK		80,900,000		15,157,992
Singapore, 4.375%, 01/15/2009 SGD		11,430,000		8,501,781
Sweden, 5.25%, 03/15/2011 SEK		49,250,000		8,283,511


Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated) (cost $117,457,811)				122,470,461

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


WHOLE LOAN MORTGAGE-BACKED PASS THROUGH SECURITIES 0.5%
FLOATING-RATE 0.5%
Lehman XS Trust, Ser. 2006-18N, Class A5A, 2.63%, 12/25/2036	$	3,920,000	$	2,158,450
MASTR Adjustable Rate Mtge. Trust, Ser. 2006-OA2, Class 4A1B, 4.73%, 12/25/2046		1,590,144		950,327
Washington Mutual, Inc. Mtge. Pass-Through Cert., Ser. 2006-AR09, Class 2A, 4.13%, 11/25/2046		1,430,191		820,399


Total Whole Loan Mortgage-Backed Pass Through Securities (cost $5,036,958)				3,929,176


YANKEE OBLIGATIONS – CORPORATE 8.8%
CONSUMER DISCRETIONARY 0.0%
Media 0.0%
Videotron, Ltd., 9.125%, 04/15/2018 144A		85,000		89,038


ENERGY 2.0%
Oil, Gas & Consumable Fuels 2.0%
Connacher Oil & Gas, Ltd., 10.25%, 12/15/2015 144A		1,505,000		1,584,012
Griffin Coal Mining Co., Ltd.:
9.50%, 12/01/2016 144A		8,450,000		6,717,750
9.50%, 12/01/2016		850,000		675,382
OPTI Canada, Inc.:
7.875%, 12/15/2014		4,450,000		4,438,875
8.25%, 12/15/2014		1,200,000		1,215,000


				14,631,019


FINANCIALS 1.7%
Consumer Finance 0.6%
Avago Technologies Finance, Ltd., FRN, 8.18%, 06/01/2013		944,000		945,180
KazMunaiGaz Finance Sub BV, 8.375%, 07/02/2013 144A		700,000		716,625
NXP Funding, LLC:
5.54%, 10/15/2013		1,525,000		1,202,844
9.50%, 10/15/2015 ρ		1,450,000		1,007,750
Petroplus Finance, Ltd., 6.75%, 05/01/2014 144A		265,000		233,200
Virgin Media Finance plc:
8.75%, 04/15/2014		350,000		328,125
9.125%, 08/15/2016		100,000		93,000


				4,526,724


Diversified Financial Services 1.1%
FMG Finance Property, Ltd., 10.625%, 09/01/2016 144A		4,170,000		4,858,050
Preferred Term Securities XII, Ltd., FRN, 10.00%, 12/24/2033 +		635,000		370,694
Ship Finance International, Ltd., 8.50%, 12/15/2013 ρ		2,585,000		2,630,237


				7,858,981


INDUSTRIALS 1.0%
Road & Rail 1.0%
Kansas City Southern de Mexico:
7.375%, 06/01/2014		3,650,000		3,531,375
9.375%, 05/01/2012		3,530,000		3,662,375


				7,193,750


INFORMATION TECHNOLOGY 0.8%
Communications Equipment 0.6%
Nortel Networks Corp.:
10.125%, 07/15/2013 ρ		4,310,000		4,229,188
10.75%, 07/15/2016 144A		180,000		177,300


				4,406,488


Semiconductors & Semiconductor Equipment 0.2%
Sensata Technologies, Inc., 8.00%, 05/01/2014		1,150,000		983,250

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Principal Amount		Value


YANKEE OBLIGATIONS – CORPORATE continued
MATERIALS 1.6%
Metals & Mining 1.4%
Evraz Group SA:
8.875%, 04/24/2013 144A	$	215,000	$	210,163
9.50%, 04/24/2018 144A ρ		2,200,000		2,147,750
Novelis, Inc., 7.25%, 02/15/2015		6,085,000		5,659,050
Vedanta Resource plc, 9.50%, 07/18/2018 144A		2,415,000		2,402,925


				10,419,888


Paper & Forest Products 0.2%
Cascades, Inc., 7.25%, 02/15/2013		520,000		444,600
Corporacion Durango SAB de CV, 10.50%, 10/05/2017 144A		1,620,000		712,800


				1,157,400


TELECOMMUNICATION SERVICES 1.7%
Wireless Telecommunication Services 1.7%
Inmarsat, plc, Sr. Disc. Note, Step Bond, 0.00%, 11/15/2012 †		1,120,000		1,131,200
Intelsat, Ltd.:
8.50%, 04/15/2013 144A		2,380,000		2,368,100
8.875%, 01/15/2015 144A		1,679,000		1,662,210
11.25%, 06/15/2016		2,020,000		2,105,850
Telesat Canada, Inc., FRN, 11.00%, 11/01/2015 144A ρ		1,710,000		1,615,950
Vimpel Communications:
8.25%, 05/23/2016		1,400,000		1,340,500
8.375%, 04/30/2013 144A		45,000		44,096
9.125%, 04/30/2018 144A ρ		2,260,000		2,213,873


				12,481,779


UTILITIES 0.0%
Electric Utilities 0.0%
InterGen NV, 9.00%, 06/30/2017 144A		185,000		189,625


Total Yankee Obligations – Corporate (cost $66,997,811)				63,937,942




	Shares		Value


COMMON STOCKS 0.2%
CONSUMER DISCRETIONARY 0.0%
Auto Components 0.0%
Cooper Tire & Rubber Co. ρ		18,266		168,230


ENERGY 0.0%
Oil, Gas & Consumable Fuels 0.0%
Frontier Oil Corp. *		9,117		166,385


INDUSTRIALS 0.0%
Aerospace & Defense 0.0%
L-3 Communications Holdings, Inc.		11		1,086


Airlines 0.0%
Delta Air Lines, Inc. *		15,639		117,918


Machinery 0.0%
Commercial Vehicle Group, Inc. *		5,451		52,711


INFORMATION TECHNOLOGY 0.1%
Communications Equipment 0.1%
Cisco Systems, Inc. *		7,268		159,823
Nortel Networks Corp.		7,674		58,936


				218,759

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Shares		Value


COMMON STOCKS continued
INFORMATION TECHNOLOGY continued
Software 0.0%
Microsoft Corp.		5,735	$	147,504


TELECOMMUNICATION SERVICES 0.1%
Diversified Telecommunication Services 0.0%
Qwest Communications International, Inc. ρ		30,022		114,984


Wireless Telecommunication Services 0.1%
Sprint Nextel Corp.		17,169		139,756


Total Common Stocks (cost $1,275,006)				1,127,333



	Principal Amount		Value


CONVERTIBLE DEBENTURES 0.1%
INFORMATION TECHNOLOGY 0.1%
Communications Equipment 0.1%
Nortel Networks Corp., 2.125%, 04/15/2014 (cost $562,875)	$	790,000		562,875


LOANS 5.1%
CONSUMER DISCRETIONARY 2.4%
Ford Motor Co., 5.46%, 12/15/2013		2,308,456		1,822,849
General Motors Corp., N/A, 11/29/2013 <		1,220,000		950,966
Greektown Casino, LLC, N/A, 12/03/2012 <		1,472,000		1,393,984
Idearc, Inc., FRN, 4.47%-4.80%, 11/17/2014 <		1,832,237		1,359,281
Ion Media Networks, Inc., FRN, 6.04%, 01/15/2012		3,505,000		2,972,065
Metaldyne Corp., FRN:
N/A, 01/11/2012 <		549,112		351,432
6.50%, 01/11/2014 <		3,733,965		2,405,196
Newsday, N/A, 07/15/2013 <		805,000		799,381
Tropicana Entertainment, LLC., FRN, 10.75%, 01/03/2012 <		6,490,000		5,498,263


				17,553,417


CONSUMER STAPLES 0.2%
Merisant Co., N/A, 01/11/2010 <		1,435,000		1,345,886


ENERGY 0.3%
Alon Krotz Springs, Inc., 10.75%, 07/03/2014		645,000		611,537
Saint Acquisition Corp., FRN, 6.125%, 06/05/2014		675,000		517,374
Semgroup Energy Partners, N/A, 07/20/2012 <		1,080,000		941,685


				2,070,596


INDUSTRIALS 0.7%
Clarke American Corp., FRN, 5.29%-5.30%, 02/28/2014		3,231,608		2,678,099
Neff Corp., FRN, 6.40%, 11/30/2014		4,045,000		2,839,428


				5,517,527


INFORMATION TECHNOLOGY 0.1%
Activant Solutions, Inc., N/A, 05/02/2013 <		854,893		747,104


MATERIALS 1.4%
Abitibi Consolidated Co. of Canada, FRN, 11.50%, 03/31/2009 <		2,738,378		2,730,383
Boise Paper Holdings, LLC, FRN, 11.00%, 02/15/2015		405,000		396,758
Lyondell Chemical Co., 7.00%, 12/20/2014 <		8,240,000		6,880,400


				10,007,541


UTILITIES 0.0%
Energy Future Holdings Corp., FRN, 5.96%-6.30%, 10/10/2014		261		241


Total Loans (cost $38,508,813)				37,242,312

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)
	Shares		Value


SHORT-TERM INVESTMENTS 10.0%
MUTUAL FUND SHARES 10.0%
Evergreen Institutional Money Market Fund, Class I, 2.54% q ø ρρ ## (cost $72,615,457)		72,615,457	$	72,615,457


Total Investments (cost $1,227,198,070) 163.3%				1,186,732,818
Other Assets and Liabilities and Preferred Shares (63.3%)				(459,852,667	)


Net Assets Applicable to Common Shareholders 100.0%			$	726,880,151

#	When-issued or delayed delivery security
ρ	All or a portion of this security is 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, unless otherwise noted.
†	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.
††	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, unless otherwise noted.
*	Non-income producing security
<	All or a portion of the position represents an unfunded loan commitment.
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.
ρρ	All or a portion of this security represents investment of cash collateral received from securities on loan.
##	All or a portion of this security has been segregated for when-issued or delayed delivery securities.

Summary of Abbreviations
AUD	Australian Dollar
CAD	Canadian Dollar
DKK	Danish Krone
EUR	Euro
FHLB	Federal Home Loan Bank
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
FRN	Floating Rate Note
GBP	Great British Pound
GNMA	Government National Mortgage Association
KRW	Republic of Korea Won
MASTR	Mortgage Asset Securitization Transactions, Inc.
MXN	Mexican Peso
MYR	Malaysian Ringgit
NOK	Norwegian Krone
NZD	New Zealand Dollar
SEK	Swedish Krona
SGD	Singapore Dollar
TBA	To Be Announced

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)

At July 31, 2008, the Fund had the following interest rate swap contracts outstanding:

Expiration

Notional
Amount

Counterparty

Cash Flows Paid
by the Fund

Cash Flows Received
by the Fund

Unrealized
Gain (Loss)

11/26/2008

$112,000,000

JPMorgan

Fixed-3.582%

Floating-2.46%¹

$(359,292)

1	This rate represents the 1 month USD London InterBank Offered Rate (LIBOR) effective for the period from July 28, 2008 through August 26, 2008.

At July 31, 2008, the Fund had the following credit default swap contracts outstanding:

Expiration

Counterparty

Reference Debt
Obligation/Index

Notional
Amount

Fixed
Payments
Made by
the Fund

Frequency
of Payments
Made

Unrealized
Gain (Loss)

09/20/2013

Deutsche Bank

Pulte Homes, Inc., 5.25%, 1/15/2014

435,000

3.25%

Quarterly

$ (910)

09/20/2013

Lehman Brothers

Pulte Homes, Inc., 5.25%, 1/15/2014

820,000

2.86%

Quarterly

11,114

09/20/2013

Lehman Brothers

Pulte Homes, Inc., 5.25%, 1/15/2014

430,000

3.20%

Quarterly

(37)

09/20/2013

UBS

Motorola, Inc., 6.50%, 9/1/2025

265,000

3.02%

Quarterly

877

09/20/2013

UBS

Motorola, Inc., 6.50%, 9/1/2025

515,000

2.97%

Quarterly

2,796

Expiration

Counterparty

Reference Debt
Obligation/Index

Notional
Amount

Fixed
Payments
Received by
the Fund

Frequency
of Payments
Received

Unrealized
Gain (Loss)

12/12/2012

Lehman Brothers

Dow Jones CDX North America High Yield Index 9

54,450

3.75%

Quarterly

$ (1,186)

06/20/2013

UBS

Dow Jones CDX North America High Yield Index 10

520,000

5.00%

Quarterly

2,597

09/20/2013

Deutsche Bank

Centex Corp., 5.25%, 6/15/2015

435,000

4.75%

Quarterly

868

09/20/2013

Lehman Brothers

Centex Corp., 5.25%, 6/15/2015

820,000

3.85%

Quarterly

(25,944)

09/20/2013

Lehman Brothers

Centex Corp., 5.25%, 6/15/2015

430,000

4.50%

Quarterly

(3,158)

09/20/2013

Lehman Brothers

Motorola, Inc., 6.50%, 9/1/2025

610,000

2.39%

Quarterly

(16,771)

12/13/2049

Deutsche Bank

Markit CMBX North America AJ.3 Index

315,000

1.47%

Quarterly

(166)

12/13/2049

Goldman Sachs

Markit CMBX North America AJ.3 Index

525,000

1.47%

Quarterly

1,893

12/13/2049

Lehman Brothers

Markit CMBX North America AAA.3 Index

205,000

0.08%

Quarterly

(4,983)

12/13/2049

Lehman Brothers

Markit CMBX North America AJ.3 Index

410,000

1.47%

Quarterly

(25,914)

12/13/2049

UBS

Markit CMBX North America AAA.3 Index

410,000

0.08%

Quarterly

30,609

At July 31, 2008, 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, 2008		In Exchange for U.S. $		Unrealized Gain (Loss)


08/05/2008	9,965,667	EUR		$15,530,428		$15,500,000		$ 30,428
10/07/2008	2,420,000	EUR		3,758,496		3,808,281		(49,785	)
10/07/2008	210,000,000	JPY		1,953,925		1,986,755		(32,830	)
10/15/2008	898,519	EUR		1,394,931		1,402,642		(7,711	)

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)

Forward Foreign Currency Exchange Contracts to Buy:

Exchange Date	Contracts to Receive		U.S. Value at July 31, 2008	In Exchange For		U.S. Value at July 31, 2008	Unrealized Gain (Loss)


08/13/2008	1,585,648,000	JPY	$14,705,668	8,000,000	GBP	$15,839,959	$(1,134,291	)
08/19/2008	1,607,600,000	JPY	14,914,322	20,689,833	NZD	15,141,252	(226,930	)
10/14/2008	2,220,000,000	JPY	20,663,772	21,929,391	AUD	20,416,393	247,379
10/15/2008	1,574,300,000	JPY	14,654,402	9,397,572	EUR	14,589,524	64,878
10/15/2008	1,401,345,200	JPY	13,044,449	6,700,000	GBP	13,203,268	(158,819	)
10/22/2008	1,597,450,000	JPY	14,875,648	15,184,886	CAD	14,812,062	63,586

Forward Foreign Currency Exchange Contracts to Sell:

Exchange Date	Contracts to Receive		U.S. Value at July 31, 2008		In Exchange for U.S. $		Unrealized Gain (Loss)


08/05/2008	10,077,499	EUR		$15,704,707		$15,500,000		$(204,707	)
10/15/2008	898,519	EUR		1,394,931		1,399,461		4,530

On July 31, 2008, the aggregate cost of securities for federal income tax purposes was $1,228,443,701. The gross unrealized appreciation and depreciation on securities based on tax cost was $18,490,899 and $60,201,782, respectively, with a net unrealized depreciation of $41,710,883.

Valuation of investments

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 market value obtained from yield data relating to investments or securities with similar characteristics.

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.

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 market value are valued at fair value as determined by the investment advisor in good faith, according to procedures approved by the Board of Trustees.

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

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.

When-issued and delayed delivery transactions

The Fund records when-issued or delayed delivery securities as of trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Loans

The Fund may purchase loans through an agent, by assignment from another holder of the loan or as a participation interest in another holder’s portion of the loan. Loans are purchased on a when-issued or delayed delivery basis. Interest income is accrued based on the terms of the securities. Fees earned on loan purchasing activities are recorded as income when earned. Loans involve interest rate risk, liquidity risk and credit risk, including the potential default or insolvency of the borrower.

As of July 31, 2008, the Fund had unfunded loan commitments of $18,128,576.

Securities lending

The Fund may lend its securities to certain qualified brokers in order to earn additional income. The Fund receives compensation in the form of fees or interest earned on the investment of any cash collateral received. The Fund also continues to receive interest and dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a market value at least equal to the market value of the securities on loan, including accrued interest. In the event of default or bankruptcy by the borrower, the Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

Dollar roll transactions

The Fund may enter into dollar roll transactions with respect to mortgage-backed securities. In a dollar roll transaction, the Fund sells mortgage-backed securities to financial institutions and simultaneously agrees to accept substantially similar (same type, coupon and maturity) securities at a later date at an agreed upon price. The Fund will use the proceeds generated from the transactions to invest in short-term investments, which may enhance the Fund’s current yield and total return. The Fund accounts for dollar roll transactions as purchases and sales. The Fund could be exposed to risks if the counterparty defaults on its obligation to perform under the terms of the agreement, if the Fund receives inferior securities in comparison to what was sold to the counterparty at redelivery or if there are variances in paydown speed between the mortgage-related pools.

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2008 (unaudited)

Interest rate swaps

The Fund may enter into interest rate swap contracts to manage the Fund’s exposure to interest rates. Interest rate swaps involve the exchange between the Fund and another party of their commitments to pay or receive interest based on a notional principal amount.

The value of the swap contract is marked-to-market daily based upon quotations from market makers and any change in value is recorded as an unrealized gain or loss. Payments made or received are recorded as realized gains or losses. The Fund could be exposed to risks if the counterparty defaults on its obligation to perform or if there are unfavorable changes in the fluctuation of interest rates.

Credit default swaps

The Fund may enter into credit default swap contracts. Credit default swaps involve an exchange of a stream of payments for protection against the loss in value of an underlying security or index in the event of default or bankruptcy. Under the terms of the swap, one party acts as a guarantor and receives a periodic stream of payments that is a fixed percentage applied to a notional principal amount over the term of the swap. The guarantor agrees to purchase the notional amount of the underlying instrument or index, at par, if a credit event occurs during the term of the swap. The Fund may enter into credit default swaps as either the guarantor or the counterparty.

Any premiums paid or received on the transactions are recorded as an asset or liability on the Statement of Assets and Liabilities and amortized. The value of the swap contract is marked-to-market daily based on quotations from an independent pricing service or market makers and any change in value is recorded as an unrealized gain or loss. Periodic payments made or received are recorded as realized gains or losses. In addition, payments received or made as a result of a credit event or termination of the contract are recognized as realized gains or losses. The Fund could be exposed to risks if the guarantor defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index.

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 Multi-Sector Income Fund


By:
	Dennis H. Ferro, Principal Executive Officer

Date: September 24, 2008

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:
	Dennis H. Ferro, Principal Executive Officer

Date: September 24, 2008


By:
	Kasey Phillips Principal Financial Officer

Date: September 24, 2008