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 January 31, 2010. This series has October 31 fiscal year end.

Date of reporting period: January 31, 2010

Item 1 – Schedule of Investments

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS



January 31, 2010 (unaudited)
		Principal Amount		Value


AGENCY MORTGAGE-BACKED COLLATERALIZED MORTGAGE OBLIGATIONS 2.5%
FIXED-RATE 0.2%
FNMA:
Ser. 2001-25, Class Z, 6.00%, 06/25/2031	$	919,563	$	975,114
Ser. 2001-51, Class P, 6.00%, 08/25/2030		154,319		155,010



				1,130,124



FLOATING-RATE 2.3%
FHLMC:
Ser. 0196, Class A, 1.05%, 12/15/2021		116,988		118,258
Ser. 2390, Class FD, 0.68%, 12/15/2031		120,497		119,842
Ser. 2411, Class F, 0.78%, 02/15/2032		157,208		156,435
Ser. 2431, Class F, 0.73%, 03/15/2032		5,409,019		5,387,311
Ser. 2567, Class FH, 0.63%, 02/15/2033		310,592		309,093
FNMA:
Ser. 1996-46, Class FA, 0.75%, 08/25/2021		69,475		68,951
Ser. 2001-35, Class F, 0.83%, 07/25/2031		44,878		44,788
Ser. 2001-57, Class F, 0.73%, 06/25/2031		45,182		44,993
Ser. 2002-77, Class FH, 0.63%, 12/18/2032		280,119		278,230
Ser. 2002-95, Class FK, 0.73%, 01/25/2033		6,817,716		6,810,711
Ser. 2002-97, Class FR, 0.78%, 01/25/2033		103,778		103,577
Ser. 2003-W8, Class 3F2, 0.58%, 05/25/2042		1,541,230		1,396,779
Ser. G91-16, Class F, 0.70%, 06/25/2021		82,600		82,527
Ser. G92-17, Class F, 1.30%, 03/25/2022		156,360		159,738
GNMA, Ser. 2001-61, Class FA, 0.73%, 09/20/2030		53,583		53,551



				15,134,784



Total Agency Mortgage-Backed Collateralized Mortgage Obligations (cost $16,522,362)				16,264,908



AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES 26.0%
FIXED-RATE 0.4%
FHLMC, 8.50%, 04/01/2015-07/01/2028		288,559		323,150
FNMA:
6.00%, 04/01/2033		430,294		465,244
6.50%, 11/01/2032		68,908		75,067
7.50%, 07/01/2017-07/01/2032		779,720		857,750
8.00%, 12/01/2024-06/01/2030		227,104		254,356
12.00%, 01/01/2016		32,409		35,870
GNMA:
6.50%, 06/15/2028		86,580		94,892
7.25%, 07/15/2017-05/15/2018		718,247		783,037



				2,889,366



FLOATING-RATE 25.6%
FHLB:
3.19%, 12/01/2034		8,914,427		9,170,654
3.22%, 06/01/2035		3,955,338		4,079,575
3.47%, 11/01/2030		585,744		606,737
3.77%, 07/01/2033		302,152		313,623
FHLMC:
2.74%, 10/01/2030		23,472		23,792
2.99%, 04/01/2034		17,484,921		18,001,502
3.27%, 09/01/2032		636,411		661,900
3.33%, 10/01/2033		222,674		231,793
3.37%, 10/01/2030		397,642		409,382
3.45%, 08/01/2030		494,935		512,749
3.50%, 10/01/2024		50,625		51,671
3.59%, 10/01/2022		82,518		81,837
3.70%, 07/01/2032		604,390		625,449
3.85%, 06/01/2033		275,497		284,694

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FLOATING-RATE continued
FHLMC:
3.89%, 12/01/2026	$	101,477	$	100,683
4.07%, 05/01/2019		4,760		4,773
4.10%, 10/01/2037		3,662,383		3,787,728
5.03%, 06/01/2018		63,961		65,765
5.06%, 12/01/2035		4,730,633		4,905,791
5.07%, 07/01/2035		625,563		657,365
5.91%, 01/01/2027		263,328		270,386
8.50%, 03/01/2030		110,705		122,097
FNMA:
1.35%, 04/01/2028		113,767		114,138
1.69%, 10/01/2034		301,725		298,532
2.42%, 12/01/2035		4,666,775		4,782,324
2.43%, 10/01/2035		3,361,458		3,444,621
2.59%, 12/01/2031		88,147		90,258
2.65%, 06/01/2029		380,285		388,072
2.73%, 03/01/2033		171,800		174,844
2.74%, 08/01/2036		5,888,900		6,015,983
2.77%, 07/01/2038		283,202		289,840
2.83%, 12/01/2026		124,372		128,903
2.85%, 05/01/2030-04/01/2034		5,848,119		6,033,864
2.875%, 04/01/2019		10,217		10,305
2.88%, 01/01/2026		403,266		416,545
2.91%, 03/01/2035-04/01/2036		12,749,004		13,216,459
2.94%, 10/01/2034		13,905,919		14,172,978
2.95%, 01/01/2036		3,567,588		3,694,119
2.97%, 07/01/2036		5,187,912		5,424,503
3.02%, 07/01/2038		3,124,459		3,217,225
3.05%, 06/01/2031		145,241		152,112
3.06%, 07/01/2026-01/01/2038		4,975,303		4,973,201
3.07%, 02/01/2038		394,562		410,725
3.09%, 05/01/2035		4,764,559		4,972,437
3.12%, 08/01/2030		261,829		273,724
3.13%, 06/01/2024		188,905		194,874
3.16%, 09/01/2027		194,934		199,997
3.18%, 02/01/2035		1,172,502		1,180,862
3.25%, 01/01/2017		55,444		56,025
3.29%, 05/01/2036		13,429,899		14,042,667
3.34%, 12/01/2017		812,510		841,986
3.35%, 04/01/2017		2,332,165		2,416,691
3.42%, 07/01/2030		109,994		112,111
3.49%, 12/01/2028		47,038		47,947
3.57%, 02/01/2017		1,958,368		2,016,015
3.62%, 08/01/2028		78,014		80,029
3.64%, 01/01/2015		35,617		36,623
3.73%, 09/01/2032		208,264		214,911
3.75%, 12/01/2016		10,464		10,629
3.80%, 03/01/2034		707,223		731,060
3.81%, 01/01/2030		74,114		78,663
3.92%, 04/01/2033		151,154		156,635
3.93%, 07/01/2033		140,573		141,310
4.04%, 10/01/2029		124,671		129,758
4.22%, 07/01/2038		3,088,691		3,212,501
4.27%, 02/01/2035		7,103,233		7,305,533
4.50%, 03/01/2034		24,867		25,810
4.61%, 04/01/2031		722,897		744,495

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FLOATING-RATE continued
FNMA:
4.77%, 12/01/2036	$	54,125	$	54,971
4.85%, 04/01/2034		3,890,349		4,016,572
4.95%, 01/01/2034		497,761		505,396
5.00%, 12/01/2034		1,602,400		1,655,112
5.11%, 12/01/2022		14,634		15,005
5.27%, 04/01/2025		128,066		132,690
5.37%, 02/01/2036		2,663,169		2,793,900
5.55%, 09/01/2024		11,591		11,913
5.64%, 08/01/2027		299,369		309,423
5.82%, 11/01/2024		251,007		260,783
6.00%, 05/01/2021-08/01/2021		17,789		18,581
6.11%, 12/01/2013		333,174		338,901
6.14%, 12/01/2020		113,274		118,184
6.25%, 09/01/2037		3,763,023		4,026,434
6.61%, 09/01/2032		3,735,503		3,866,960



				169,767,615



Total Agency Mortgage-Backed Pass Through Securities (cost $170,983,807)				172,656,981



AGENCY REPERFORMING MORTGAGE-BACKED PASS THROUGH SECURITIES 0.7%
FIXED-RATE 0.7%
FHLMC, 5.87%, 02/01/2037		4,027,270		4,273,507
FNMA, Ser. 2001-T10, Class A2, 7.50%, 12/25/2041		314,428		355,893



Total Agency Reperforming Mortgage-Backed Pass Through Securities (cost $4,406,847)				4,629,400



COMMERCIAL MORTGAGE-BACKED SECURITIES 1.5%
FIXED-RATE 0.3%
Bear Stearns Comml. Mtge. Securities Trust, Ser. 2007-PW15, Class A4, 5.33%, 02/11/2044		1,155,000		1,030,961
Greenwich Capital Comml. Funding Corp., Ser. 2007-GG9, Class AM, 5.48%, 03/10/2039		200,000		164,288
Morgan Stanley Capital I Trust, Ser. 2006-HQ10, Class AM, 5.36%, 11/21/2041		775,000		674,015



				1,869,264



FLOATING-RATE 1.2%
Citigroup Comml. Mtge. Trust, Ser. 2007-C6, Class A4, 5.70%, 12/10/2049		1,875,000		1,770,149
GE Comml. Mtge. Trust:
Ser. 2006-C7, Class AM, 5.79%, 06/10/2046		2,875,000		2,534,986
Ser. 2007-C9, Class A4, 5.82%, 12/10/2049		690,000		654,828
Morgan Stanley Capital I Trust:
Ser. 2006-IQ11, Class AM, 5.78%, 10/15/2042		240,000		206,136
Ser. 2007-2A, Class 2A, 5.81%, 08/12/2045 144A		4,505,000		3,128,399



				8,294,498



Total Commercial Mortgage-Backed Securities (cost $7,272,926)				10,163,762



CORPORATE BONDS 48.8%
CONSUMER DISCRETIONARY 8.4%
Auto Components 0.9%
Cooper Tire & Rubber Co., 7.625%, 03/15/2027		2,085,000		1,876,500
Goodyear Tire & Rubber Co.:
7.86%, 08/15/2011		1,180,000		1,221,300
8.625%, 12/01/2011		690,000		714,150
9.00%, 07/01/2015		237,000		244,110
10.50%, 05/15/2016		1,180,000		1,280,300
Metaldyne Corp., FRN, 5.28%, 04/09/2014		506,870		408,654



				5,745,014

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Diversified Consumer Services 0.8%
Carriage Services, Inc., 7.875%, 01/15/2015	$	1,450,000	$	1,381,125
Service Corporation International:
6.75%, 04/01/2015		95,000		93,575
7.50%, 04/01/2027		1,815,000		1,678,875
8.00%, 11/15/2021		475,000		475,594
StoneMor Partners, LP, 10.25%, 12/01/2017 144A		1,910,000		1,986,400



				5,615,569



Hotels, Restaurants & Leisure 1.6%
Boyd Gaming Corp.:
7.125%, 02/01/2016		830,000		740,775
7.75%, 12/15/2012		95,000		95,475
Caesars Entertainment, Inc., 7.875%, 03/15/2010		785,000		786,963
Harrahs Entertainment Corp.:
10.00%, 12/15/2018		250,000		198,750
11.25%, 06/01/2017		2,025,000		2,151,562
Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/2010 + •		910,000		448,175
Landry’s Restaurants, Inc., 11.625%, 12/01/2015 144A		115,000		123,625
MGM MIRAGE:
6.625%, 07/15/2015		500,000		413,750
8.50%, 09/15/2010		780,000		783,900
11.125%, 11/15/2017 144A		285,000		320,625
11.375%, 03/01/2018 144A		320,000		302,400
Pinnacle Entertainment, Inc., 7.50%, 06/15/2015		1,170,000		1,082,250
Pokagon Gaming Authority, 10.375%, 06/15/2014 144A		60,000		62,625
Scientific Games Corp., 9.25%, 06/15/2019 144A		610,000		642,025
Seneca Gaming Corp., 7.25%, 05/01/2012		205,000		199,875
Shingle Springs Tribal Gaming Authority, 9.375%, 06/15/2015 144A		1,245,000		983,550
Speedway Motorsports, Inc., 8.75%, 06/01/2016		950,000		1,009,375
Trump Entertainment Resorts, Inc., 8.50%, 06/01/2015 •		2,709,000		81,270
Universal City Development Partners, Ltd.:
8.875%, 11/15/2015 144A		60,000		60,450
10.875%, 11/15/2016 144A		60,000		62,100
Wynn Resorts, Ltd., 7.875%, 11/01/2017 144A		50,000		50,000



				10,599,520



Household Durables 0.9%
D.R. Horton, Inc., 9.75%, 09/15/2010		2,190,000		2,261,175
Lennar Corp.:
5.125%, 10/01/2010		530,000		533,975
12.25%, 06/01/2017		60,000		73,200
Libbey, Inc.:
10.00%, 02/15/2015 144A		455,000		457,275
FRN, 7.48%, 06/01/2011		715,000		732,875
Meritage Homes Corp., 7.00%, 05/01/2014		435,000		418,144
Newell Rubbermaid, Inc., 10.60%, 04/15/2019		960,000		1,244,088
Sealy Corp., 10.875%, 04/15/2016 144A		75,000		84,000



				5,804,732



Internet & Catalog Retail 0.1%
QVC, Inc., 7.50%, 10/01/2019 144A		390,000		399,750
Ticketmaster Entertainment, Inc., 10.75%, 08/01/2016		495,000		540,787



				940,537



Media 3.0%
Cablevision Systems Corp., 8.625%, 09/15/2017 144A		95,000		98,325
CCH II, LLC, 13.50%, 11/30/2016		5,585,929		6,717,080

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Media continued
CCO Holdings, LLC, 8.75%, 11/15/2013 •	$	3,865,000	$	3,918,144
Charter Communications, Inc., Step Bond:
8.00%, 04/30/2012 144A • ††		1,914,000		2,000,130
10.875%, 09/15/2014 144A • ††		4,715,000		5,280,800
Clear Channel Communications, Inc., 9.25%, 12/15/2017 144A		425,000		437,112
DISH DBS, Corp., 7.875%, 09/01/2019		280,000		289,100
Lamar Media Corp.:
6.625%, 08/15/2015		90,000		86,625
7.25%, 01/01/2013		180,000		180,000
9.75%, 04/01/2014		60,000		65,700
Regal Cinemas, Inc., 8.625%, 07/15/2019		25,000		25,813
Salem Communications Corp., 9.625%, 12/15/2016 144A		235,000		247,925
Sirius XM Radio, Inc., 9.625%, 08/01/2013		165,000		168,300
WMG Acquisition Corp., 9.50%, 06/15/2016 144A		60,000		64,350
XM Satellite Radio Holdings, Inc., 13.00%, 08/01/2013 144A		425,000		466,437
Young Broadcasting, Inc.:
8.75%, 01/15/2014 •		2,121,000		14,847
10.00%, 03/01/2011 •		1,540,000		10,780



				20,071,468



Multiline Retail 0.1%
Macy’s, Inc.:
5.90%, 12/01/2016		55,000		52,525
8.875%, 07/15/2015		150,000		163,500
Neiman Marcus Group, Inc., 9.75%, 10/15/2015 @		50,000		48,625
Saks, Inc., 9.875%, 10/01/2011		585,000		612,787



				877,437



Specialty Retail 0.5%
American Achievement Corp.:
8.25%, 04/01/2012 144A		2,800,000		2,793,000
Sr. Disc. Note, Step Bond, 10.25%, 10/01/2012 †		205,000		205,256



				2,998,256



Textiles, Apparel & Luxury Goods 0.5%
Oxford Industries, Inc., 11.375%, 07/15/2015		1,600,000		1,792,000
Visant Corp., 7.625%, 10/01/2012		1,495,000		1,502,475



				3,294,475



CONSUMER STAPLES 1.9%
Beverages 0.4%
Anheuser-Busch InBev, 6.875%, 11/15/2019 144A		2,000,000		2,268,928



Food Products 1.4%
Del Monte Foods Co.:
6.75%, 02/15/2015		25,000		25,563
7.50%, 10/15/2019 144A		1,665,000		1,710,787
Dole Food Company, Inc.:
8.00%, 10/01/2016 144A		660,000		683,100
13.875%, 03/15/2014 144A		1,256,000		1,500,920
Fage USA Dairy Industry, Inc., 9.875%, 02/01/2020 144A		1,330,000		1,244,232
Smithfield Foods, Inc.:
7.00%, 08/01/2011		1,490,000		1,490,000
10.00%, 07/15/2014 144A		1,200,000		1,306,500
Tyson Foods, Inc.:
7.85%, 04/01/2016		790,000		829,500
10.50%, 03/01/2014		60,000		69,300
Viskase, Inc., 9.875%, 01/15/2018 144A		695,000		695,000



				9,554,902

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
CONSUMER STAPLES continued
Tobacco 0.1%
Altria Group, Inc., 10.20%, 02/06/2039	$	460,000	$	619,194



ENERGY 7.2%
Energy Equipment & Services 2.0%
Basic Energy Services, Inc., 11.625%, 08/01/2014		365,000		396,025
Bristow Group, Inc.:
6.125%, 06/15/2013		110,000		109,450
7.50%, 09/15/2017		1,355,000		1,365,163
Forbes Energy Services, Ltd., 11.00%, 02/15/2015		2,535,000		2,439,937
GulfMark Offshore, Inc., 7.75%, 07/15/2014		1,500,000		1,488,750
Hercules Offshore, Inc., 10.50%, 10/15/2017 144A		660,000		686,400
Hornbeck Offshore Services, Inc.:
8.00%, 09/01/2017 144A		1,295,000		1,307,950
Ser. B, 6.125%, 12/01/2014		1,785,000		1,700,213
Parker Drilling Co., 9.625%, 10/01/2013		884,000		908,310
PHI, Inc., 7.125%, 04/15/2013		2,040,000		2,019,600
SEACOR Holdings, Inc., 7.375%, 10/01/2019		415,000		431,601



				12,853,399



Oil, Gas & Consumable Fuels 5.2%
Alon Refining Krotz Springs, Inc., 13.50%, 10/15/2014 144A		1,245,000		1,145,400
Aquilex Holdings, LLC, 11.125%, 12/15/2016 144A		215,000		223,600
Arch Coal, Inc., 8.75%, 08/01/2016 144A		45,000		47,925
Atlas Energy Resources, LLC, 12.125%, 08/01/2017		415,000		468,950
Chesapeake Energy Corp.:
6.875%, 01/15/2016		4,170,000		4,107,450
9.50%, 02/15/2015		1,470,000		1,602,300
El Paso Corp.:
7.42%, 02/15/2037		1,670,000		1,478,815
12.00%, 12/12/2013		445,000		529,550
Exco Resources, Inc., 7.25%, 01/15/2011		2,970,000		2,970,000
Ferrellgas Partners, LP:
8.75%, 06/15/2012		450,000		451,125
9.125%, 10/01/2017 144A		290,000		308,125
Forest Oil Corp.:
7.25%, 06/15/2019		895,000		899,475
8.50%, 02/15/2014		535,000		561,750
General Maritime Corp., 12.00%, 11/15/2017 144A		685,000		715,825
Holly Corp., 9.875%, 06/15/2017 144A		1,695,000		1,796,700
Murray Energy Corp., 10.25%, 10/15/2015 144A		675,000		686,812
Newfield Exploration Co., 6.625%, 04/15/2016		100,000		100,000
Nustar Logistics, LP, 7.65%, 04/15/2018		30,000		33,975
Peabody Energy Corp.:
5.875%, 04/15/2016		215,000		210,700
7.875%, 11/01/2026		2,915,000		3,009,737
Petrohawk Energy Corp.:
7.875%, 06/01/2015		980,000		1,004,500
10.50%, 08/01/2014		495,000		546,975
Pioneer Natural Resources Co., 7.50%, 01/15/2020		1,190,000		1,201,900
Plains Exploration & Production Co., 8.625%, 10/15/2019		2,515,000		2,653,325
Range Resources Corp., 8.00%, 05/15/2019		50,000		53,250
Sabine Pass LNG, LP:
7.25%, 11/30/2013		1,645,000		1,538,075
7.50%, 11/30/2016		1,445,000		1,277,019

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
ENERGY continued
Oil, Gas & Consumable Fuels continued
SandRidge Energy, Inc.:
8.00%, 06/01/2018 144A	$	55,000	$	54,725
8.75%, 01/15/2020 144A		1,585,000		1,632,550
Southwestern Energy Co., 7.50%, 02/01/2018		560,000		596,400
Stone Energy Corp., 8.625%, 02/01/2017		465,000		462,675
Tesoro Corp.:
6.50%, 06/01/2017		135,000		128,588
7.50%, 07/17/2012		990,000		973,061
9.75%, 06/01/2019		700,000		755,125
Williams Cos.:
7.50%, 01/15/2031		155,000		175,330
8.75%, 01/15/2020		75,000		96,375



				34,498,087



FINANCIALS 8.9%
Capital Markets 0.5%
E*TRADE Financial Corp.:
7.375%, 09/15/2013		435,000		418,687
12.50%, 11/30/2017		2,663,000		3,075,765



				3,494,452



Commercial Banks 0.4%
CapitalSource, Inc., 12.75%, 07/15/2014 144A		1,735,000		1,899,825
Discover Bank, 8.70%, 11/18/2019		475,000		518,768
Zions Bancorp, 7.75%, 09/23/2014		220,000		211,200



				2,629,793



Consumer Finance 5.8%
Calpine Construction Finance Corp., 8.00%, 06/01/2016 144A		60,000		61,200
Cemex Finance, LLC, 9.50%, 12/14/2016 144A		425,000		432,438
CIT Group, Inc.:
7.00%, 05/01/2016		115,000		98,900
7.00%, 05/01/2017		460,000		392,150
Clearwire Communications Finance Corp., 12.00%, 12/01/2015 144A		2,705,000		2,745,575
Discover Financial Services, 10.25%, 07/15/2019		825,000		985,081
Ford Motor Credit Co., LLC:
8.70%, 10/01/2014		175,000		181,027
9.75%, 09/15/2010		2,718,000		2,804,378
9.875%, 08/10/2011		2,815,000		2,945,098
GMAC, LLC:
6.75%, 12/01/2014		1,298,000		1,262,305
6.875%, 09/15/2011		2,009,000		2,009,000
6.875%, 08/28/2012		1,844,000		1,830,170
7.00%, 02/01/2012		262,000		260,035
7.50%, 12/31/2013		3,710,000		3,691,450
8.00%, 12/31/2018		2,822,000		2,666,790
8.00%, 11/01/2031		3,069,000		2,933,741
Homer City Funding, LLC, 8.73%, 10/01/2026		1,040,078		1,029,677
International Lease Finance Corp.:
4.75%, 01/13/2012		840,000		741,182
4.875%, 09/01/2010		690,000		672,613
5.125%, 11/01/2010		35,000		33,989
JBS USA Finance, Inc., 11.625%, 05/01/2014 144A		3,170,000		3,566,250
Level 3 Financing, Inc., 10.00%, 02/01/2018 144A		410,000		383,350
Nielsen Financial LLC:
11.50%, 05/01/2016		10,000		11,200
Sr. Disc. Note, Step Bond, 0.00%, 08/01/2016 †		55,000		50,325
NiSource Finance Corp., 10.75%, 03/15/2016		10,000		12,789

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
FINANCIALS continued
Consumer Finance continued
Pinnacle Foods Finance, LLC:
9.25%, 04/01/2015 144A	$	720,000	$	730,800
10.625%, 04/01/2017		450,000		464,625
Sprint Capital Corp.:
6.875%, 11/15/2028		5,085,000		3,991,725
8.375%, 03/15/2012		1,605,000		1,633,088



				38,620,951



Diversified Financial Services 0.5%
Leucadia National Corp.:
7.125%, 03/15/2017		750,000		738,750
8.125%, 09/15/2015		2,655,000		2,714,737



				3,453,487



Real Estate Investment Trusts (REITs) 1.4%
Dupont Fabros Technology, Inc., 8.50%, 12/15/2017 144A		3,545,000		3,633,625
Host Marriott Corp.:
7.125%, 11/01/2013		810,000		816,075
9.00%, 05/15/2017 144A		235,000		251,450
Omega Healthcare Investors, Inc.:
7.00%, 04/01/2014		965,000		967,412
7.00%, 01/15/2016		500,000		501,250
Ventas, Inc.:
6.75%, 04/01/2017		953,000		933,940
7.125%, 06/01/2015		1,139,000		1,150,390
9.00%, 05/01/2012		789,000		826,478



				9,080,620



Real Estate Management & Development 0.0%
Icahn Enterprises, LP:
7.75%, 01/15/2016 144A		20,000		19,050
8.00%, 01/15/2018 144A		60,000		57,150



				76,200



Thrifts & Mortgage Finance 0.3%
Residential Capital, LLC, 8.50%, 05/15/2010		1,675,000		1,662,438



HEALTH CARE 2.3%
Biotechnology 0.1%
Talecris Biotherapeutics Holdings Corp., 7.75%, 11/15/2016 144A		520,000		533,000



Health Care Equipment & Supplies 0.1%
Biomet, Inc.:
10.375%, 10/15/2017 @		310,000		337,900
11.625%, 10/15/2017		315,000		346,500



				684,400



Health Care Providers & Services 1.8%
Apria Healthcare Group, 11.25%, 11/01/2014 144A		835,000		893,450
HCA, Inc.:
6.30%, 10/01/2012		440,000		432,300
7.875%, 02/01/2011		820,000		842,550
8.50%, 04/15/2019 144A		2,455,000		2,596,162
8.75%, 09/01/2010		1,101,000		1,123,020
9.25%, 11/15/2016		2,750,000		2,901,250
9.625%, 11/15/2016 @		1,331,000		1,410,860

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
HEALTH CARE continued
Health Care Providers & Services continued
Omnicare, Inc., 6.125%, 06/01/2013	$	660,000	$	650,100
Prospect Medical Holdings, Inc., 12.75%, 07/15/2014		605,000		651,888
Symbion, Inc., 11.75%, 08/23/2015 @		362,317		289,854



				11,791,434



Life Sciences Tools & Services 0.2%
Bio-Rad Laboratories, Inc., 8.00%, 09/15/2016 144A		1,175,000		1,219,062



Pharmaceuticals 0.1%
Pfizer, Inc., 5.35%, 03/15/2015		900,000		998,109



INDUSTRIALS 5.0%
Aerospace & Defense 2.6%
Alliant Techsystems, Inc., 6.75%, 04/01/2016		1,640,000		1,635,900
DAE Aviation Holdings, Inc., 11.25%, 08/01/2015 144A		490,000		449,575
GenCorp, Inc., 9.50%, 08/15/2013		470,000		481,750
GeoEye, Inc., 9.625%, 10/01/2015 144A		220,000		224,400
Hexcel Corp., 6.75%, 02/01/2015		1,465,000		1,410,063
L-3 Communications Holdings, Inc.:
5.20%, 10/15/2019 144A		50,000		50,375
5.875%, 01/15/2015		6,530,000		6,611,625
6.375%, 10/15/2015		2,394,000		2,423,925
Spirit AeroSystems Holdings, Inc., 7.50%, 10/01/2017 144A		440,000		443,300
TransDigm Group, Inc., 7.75%, 07/15/2014 144A		445,000		449,450
Vought Aircraft Industries, Inc., 8.00%, 07/15/2011		2,895,000		2,873,287



				17,053,650



Airlines 0.1%
Delta Air Lines, Inc.:
9.50%, 09/15/2014 144A		120,000		125,100
12.25%, 03/15/2015 144A		60,000		62,250
United Airlines, Inc., 10.40%, 05/01/2018		645,000		690,150



				877,500



Building Products 0.0%
Associated Materials, LLC, 9.875%, 11/15/2016 144A		60,000		63,600



Commercial Services & Supplies 1.2%
Browning-Ferris Industries, Inc., 9.25%, 05/01/2021		1,080,000		1,303,627
Casella Waste Systems, Inc., 11.00%, 07/15/2014 144A		795,000		862,575
Cornell Companies, Inc., 10.75%, 07/01/2012		160,000		163,200
Corrections Corporation of America:
6.25%, 03/15/2013		1,125,000		1,127,812
6.75%, 01/31/2014		325,000		325,813
7.75%, 06/01/2017		1,395,000		1,433,362
DigitalGlobe, Inc., 10.50%, 05/01/2014 144A		245,000		263,375
Geo Group, Inc., 7.75%, 10/15/2017 144A		1,105,000		1,127,100
Interface, Inc., Class A, 11.375%, 11/01/2013		295,000		333,350
Iron Mountain, Inc.:
6.625%, 01/01/2016		45,000		43,650
7.75%, 01/15/2015		150,000		151,125
SGS International, Inc., 12.00%, 12/15/2013		955,000		1,000,363



				8,135,352



Industrial Conglomerates 0.3%
Otter Tail Corp., 9.00%, 12/15/2016		1,835,000		1,912,988

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
INDUSTRIALS continued
Machinery 0.6%
Commercial Vehicle Group, Inc., 13.00%, 02/15/2013 144A @	$	3,425,000	$	3,082,500
CPM Holdings, Inc., 10.625%, 09/01/2014 144A		645,000		686,925



				3,769,425



Road & Rail 0.1%
Kansas City Southern:
8.00%, 06/01/2015		55,000		56,581
13.00%, 12/15/2013		445,000		520,650
Swift Transportation Co., Inc.:
8.02%, 05/15/2015 144A		105,000		89,775
12.50%, 05/15/2017 144A		105,000		94,500



				761,506



Transportation 0.1%
United Maritime Group, 11.75%, 06/15/2015 144A		650,000		654,875



INFORMATION TECHNOLOGY 3.4%
Communications Equipment 0.4%
Brocade Communications Systems, Inc., 6.875%, 01/15/2020 144A		505,000		515,100
EchoStar Corp., 7.75%, 05/31/2015		320,000		329,600
Lucent Technologies, Inc., 6.45%, 03/15/2029		2,110,000		1,482,275



				2,326,975



Electronic Equipment, Instruments & Components 1.8%
Anixter International, Inc., 10.00%, 03/15/2014		1,475,000		1,628,031
Da-Lite Screen Co., Inc., 9.50%, 05/15/2011		1,870,000		1,860,650
Intcomex, Inc., 13.25%, 12/15/2014 144A		1,090,000		1,076,375
Jabil Circuit, Inc., 8.25%, 03/15/2018		5,085,000		5,529,938
Sanmina-SCI Corp., 8.125%, 03/01/2016		510,000		511,275
Viasystem Group, Inc., 12.00%, 01/15/2015 144A		1,350,000		1,458,000



				12,064,269



Internet Software & Services 0.2%
Terremark Worldwide, Inc., 12.00%, 06/15/2017 144A		1,390,000		1,539,425



IT Services 0.9%
First Data Corp.:
9.875%, 09/24/2015		670,000		597,975
10.55%, 09/24/2015		5,417,957		4,605,263
iPayment, Inc., 9.75%, 05/15/2014		825,000		699,188



				5,902,426



Semiconductors & Semiconductor Equipment 0.1%
Advanced Micro Devices, Inc., 5.75%, 08/15/2012		550,000		540,375
Spansion, Inc., 11.25%, 01/15/2016 144A •		110,000		132,000



				672,375



Software 0.0%
JDA Software Group, Inc., 8.00%, 12/15/2014 144A		185,000		191,244



MATERIALS 2.1%
Chemicals 0.1%
Huntsman International, LLC, 5.50%, 06/30/2016 144A		280,000		244,300
MacDermid, Inc., 9.50%, 04/15/2017 144A		228,000		230,280
Nalco Holding Co., 8.25%, 05/15/2017 144A		55,000		58,300
SOLUTIA, Inc., 8.75%, 11/01/2017		50,000		52,875



				585,755

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
MATERIALS continued
Construction Materials 0.5%
CPG International, Inc.:
10.50%, 07/01/2013	$	1,730,000	$	1,691,075
FRN, 7.18%, 07/01/2012		550,000		522,500
Headwaters, Inc., 11.375%, 11/01/2014 144A		765,000		803,250
Texas Industries, Inc., 7.25%, 07/15/2013		510,000		507,450



				3,524,275



Containers & Packaging 0.6%
Exopack Holding Corp., 11.25%, 02/01/2014		2,190,000		2,261,175
Graham Packaging Co., 8.25%, 01/01/2017 144A		1,105,000		1,088,425
Silgan Holdings, Inc., 7.25%, 08/15/2016		440,000		456,500



				3,806,100



Metals & Mining 0.6%
AK Steel Corp., 7.75%, 06/15/2012		485,000		487,425
Edgen Murray Corp., 12.25%, 01/15/2015 144A		905,000		864,275
Freeport-McMoRan Copper & Gold, Inc.:
8.25%, 04/01/2015		45,000		48,713
8.375%, 04/01/2017		2,485,000		2,702,437
Indalex Holdings Corp., 11.50%, 02/01/2014 •		3,170,000		31,700



				4,134,550



Paper & Forest Products 0.3%
Clearwater Paper Corp., 10.625%, 06/15/2016 144A		545,000		604,950
Georgia Pacific Corp.:
8.125%, 05/15/2011		445,000		468,363
8.25%, 05/01/2016 144A		60,000		64,200
8.875%, 05/15/2031		230,000		246,675
Glatfelter, 7.125%, 05/01/2016		245,000		232,750
NewPage Corp., 11.375%, 12/31/2014		485,000		469,237



				2,086,175



TELECOMMUNICATION SERVICES 4.3%
Diversified Telecommunication Services 2.7%
Cincinnati Bell, Inc., 8.25%, 10/15/2017		955,000		957,387
Citizens Communications Co., 7.875%, 01/15/2027		1,720,000		1,560,900
FairPoint Communications, Inc., 13.125%, 04/01/2018 •		240,000		33,600
Frontier Communications Corp.:
8.125%, 10/01/2018		1,760,000		1,773,200
8.25%, 05/01/2014		200,000		209,500
Global Crossing, Ltd., 12.00%, 09/15/2015 144A		230,000		250,700
Qwest Corp.:
6.875%, 07/15/2028		300,000		258,000
7.125%, 04/01/2018 144A		640,000		624,000
7.125%, 11/15/2043		795,000		679,725
7.25%, 09/15/2025		1,040,000		998,400
7.50%, 06/15/2023		1,370,000		1,349,450
7.625%, 08/03/2021		230,000		211,600
8.00%, 10/01/2015 144A		5,000		5,175
8.875%, 03/15/2012		5,040,000		5,411,700
SBA Telecommunications, Inc., 8.00%, 08/15/2016 144A		605,000		627,688
Sorenson Communications, Inc., 10.50%, 02/01/2015 144A		605,000		570,213
West Corp., 9.50%, 10/15/2014		65,000		65,325
Windstream Corp., 7.875%, 11/01/2017 144A		2,040,000		2,014,500



				17,601,063

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


CORPORATE BONDS continued
TELECOMMUNICATION SERVICES continued
Wireless Telecommunication Services 1.6%
CC Holdings GS V, LLC, 7.75%, 05/01/2017 144A	$	60,000	$	64,650
Cricket Communications, Inc.:
7.75%, 05/15/2016		1,045,000		1,051,531
9.375%, 11/01/2014		975,000		970,125
Crown Castle International Corp., 7.125%, 11/01/2019		75,000		74,438
iPCS, Inc., FRN, 4.28%, 05/01/2014 @		1,342,493		1,161,256
MetroPCS Communications, Inc., 9.25%, 11/01/2014		1,760,000		1,771,000
Sprint Nextel Corp.:
6.90%, 05/01/2019		425,000		378,250
Ser. D, 7.375%, 08/01/2015		2,840,000		2,563,100
Ser. F, 5.95%, 03/15/2014		2,850,000		2,522,250



				10,556,600



UTILITIES 5.3%
Electric Utilities 3.6%
Aquila, Inc., Step Bond, 11.875%, 07/01/2012 ††		7,345,000		8,635,377
CMS Energy Corp.:
8.50%, 04/15/2011		355,000		376,646
8.75%, 06/15/2019		55,000		62,706
Edison Mission Energy:
7.00%, 05/15/2017		60,000		47,400
7.20%, 05/15/2019		710,000		550,250
Energy Future Holdings Corp.:
10.00%, 01/15/2020 144A		785,000		802,663
FRN, 12.00%, 11/01/2017 @		2,305,818		1,694,776
Mirant Americas Generation, LLC, 8.50%, 10/01/2021		235,000		225,600
Mirant Mid-Atlantic, LLC, Ser. C, 10.06%, 12/30/2028		3,614,632		3,885,730
Mirant North America, LLC, 7.375%, 12/31/2013		1,555,000		1,547,225
NRG Energy, Inc.:
7.25%, 02/01/2014		510,000		511,913
8.50%, 06/15/2019		1,305,000		1,311,525
Orion Power Holdings, Inc., 12.00%, 05/01/2010		3,735,000		3,781,687
Public Service Company of New Mexico, 7.95%, 04/01/2015		130,000		137,400



				23,570,898



Independent Power Producers & Energy Traders 1.6%
AES Corp.:
8.00%, 06/01/2020		50,000		50,125
8.875%, 02/15/2011		1,145,000		1,190,800
Dynegy Holdings, Inc.:
6.875%, 04/01/2011		1,035,000		1,071,225
7.625%, 10/15/2026		2,255,000		1,713,800
Reliant Energy, Inc.:
6.75%, 12/15/2014		3,692,000		3,765,840
7.625%, 06/15/2014		1,395,000		1,339,200
9.24%, 07/02/2017		1,376,096		1,468,983
9.68%, 07/02/2026		160,000		170,400



				10,770,373



Multi-Utilities 0.1%
PNM Resources, Inc., 9.25%, 05/15/2015		555,000		595,931



Total Corporate Bonds (cost $310,098,241)				323,142,794

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
	Principal Amount		Value


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 13.2%
CONSUMER DISCRETIONARY 0.5%
Media 0.3%
Central European Media Enterprises, Ltd.:
11.625%, 09/15/2016 EUR	450,000	$	630,164
FRN, 2.62%, 05/15/2014 EUR	250,000		266,901
UPC Holding BV, 9.625%, 12/01/2019 EUR	700,000		997,803



			1,894,868



Multiline Retail 0.2%
Marks & Spencer Group plc, 6.375%, 11/07/2011 GBP	1,000,000		1,688,268



CONSUMER STAPLES 1.4%
Food & Staples Retailing 0.5%
McDonald’s Corp., 4.25%, 06/10/2016 EUR	700,000		1,015,729
Unilever plc, 4.75%, 06/16/2017 GBP	1,250,000		2,043,552



			3,059,281



Tobacco 0.9%
British American Tobacco plc, 5.50%, 09/15/2016 GBP	750,000		1,247,922
Imperial Tobacco Group plc, 8.375%, 02/17/2016 EUR	3,000,000		5,111,182



			6,359,104



FINANCIALS 7.3%
Capital Markets 0.1%
Morgan Stanley, 5.375%, 11/14/2013 GBP	560,000		935,993



Commercial Banks 3.5%
Eurofima, 6.25%, 12/28/2018 AUD	2,450,000		2,123,218
European Investment Bank:
3.125%, 04/15/2014 EUR	1,900,000		2,706,074
4.25%, 10/15/2014 EUR	3,000,000		4,491,737
6.125%, 01/23/2017 AUD	8,530,000		7,531,875
Instituto de Credito Oficial, 4.375%, 05/23/2012 EUR	1,800,000		2,627,356
KfW Bankengruppe, 4.50%, 03/26/2013 AUD	995,000		856,925
Rabobank Australia, Ltd., 6.25%, 11/22/2011 NZD	725,000		522,385
Rabobank Nederland, 4.00%, 09/10/2015 GBP	1,290,000		2,082,768



			22,942,338



Consumer Finance 1.6%
British American Tobacco Finance plc, 5.375%, 06/29/2017 EUR	1,400,000		2,114,740
Cemex Finance, LLC:
4.75%, 03/05/2014 EUR	350,000		407,024
9.625%, 12/14/2017 EUR	335,000		476,865
HSBC Finance Corp., 7.00%, 03/27/2012 GBP	370,000		634,200
ISS Financing plc, 11.00%, 06/15/2014 EUR	450,000		680,078
Smurfit Kappa Funding plc, 7.25%, 11/15/2017 EUR	700,000		988,961
Toyota Motor Credit Corp., 8.50%, 12/21/2010 NZD	5,460,000		3,962,612
Virgin Media Finance plc, 8.75%, 04/15/2014 EUR	197,562		282,137
Wind Acquisition Finance SpA:
9.75%, 12/01/2015 EUR	300,000		437,787
11.75%, 07/15/2017 EUR	350,000		520,457



			10,504,861



Diversified Financial Services 0.7%
CEDC Financial Corporation International, Inc., 8.875%, 12/01/2016 EUR	400,000		568,465
FMG Finance Property, Ltd., 9.75%, 09/01/2013 EUR	1,770,000		2,577,054
General Electric Capital Corp., 7.625%, 12/10/2014 NZD	2,000,000		1,471,322



			4,616,841

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
	Principal Amount		Value


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued
FINANCIALS continued
Thrifts & Mortgage Finance 1.4%
Realkredit Danmark, 2.00%, 01/01/2013 DKK	51,020,000	$	9,350,127



HEALTH CARE 0.3%
Pharmaceuticals 0.3%
Pfizer, Inc., 4.75%, 06/03/2016 EUR	1,200,000		1,796,818



INDUSTRIALS 0.9%
Aerospace & Defense 0.3%
Bombardier, Inc., 7.25%, 11/15/2016 EUR	1,430,000		2,066,958



Building Products 0.2%
HeidelbergCement AG, 8.00%, 01/31/2017 EUR	700,000		1,004,509



Commercial Services & Supplies 0.1%
Iron Mountain, Inc., 6.75%, 10/15/2018 EUR	600,000		811,102



Machinery 0.3%
Harsco Corp., 7.25%, 10/27/2010 GBP	1,000,000		1,638,518
Savcio Holdings, Ltd., 8.00%, 02/15/2013 EUR	250,000		332,760



			1,971,278



MATERIALS 0.7%
Chemicals 0.3%
Kerling plc, 10.625%, 01/28/2017 EUR o	600,000		826,850
Rockwood Specialties Group, Inc., 7.625%, 11/15/2014 EUR	800,000		1,103,653



			1,930,503



Containers & Packaging 0.2%
Owens-Illinois European Group BV, 6.875%, 03/31/2017 EUR	900,000		1,229,131
Pregis Corp., FRN, 5.68%, 04/15/2013 EUR	300,000		374,355



			1,603,486



Metals & Mining 0.2%
New World Resources NV, 7.375%, 05/15/2015 EUR	1,000,000		1,296,377



TELECOMMUNICATION SERVICES 0.9%
Diversified Telecommunication Services 0.9%
France Telecom:
4.75%, 02/21/2017 EUR	2,000,000		2,947,004
7.25%, 01/28/2013 EUR	1,850,000		2,908,803



			5,855,807



UTILITIES 1.2%
Independent Power Producers & Energy Traders 0.2%
Infinis plc, 9.125%, 12/15/2014 GBP	645,000		1,056,445



Multi-Utilities 1.0%
National Grid plc, 4.375%, 03/10/2020 EUR	3,000,000		4,175,707
Veolia Environnement SA, 4.00%, 02/12/2016 EUR	2,000,000		2,823,167



			6,998,874



Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated) (cost $85,688,676)			87,743,838



FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 16.5%
Australia:
Ser. 124, 5.75%, 05/15/2021 AUD	3,900,000		3,527,486
Ser. 25CI, 3.00%, 09/20/2025 AUD	6,650,000		6,187,773
Denmark:
4.00%, 11/15/2015 DKK	27,100,000		5,343,275
4.00%, 11/15/2017 DKK	28,945,000		5,653,596

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued
France, 2.25%, 07/25/2020 EUR		6,535,440	$	9,692,054
Germany, 4.25%, 07/04/2039 EUR		5,850,000		8,562,560
Hungary, 6.75%, 02/24/2017 HUF		1,150,000,000		5,519,704
Italy, 4.25%, 09/01/2019 EUR		2,400,000		3,405,763
Korea:
5.25%, 09/10/2015 KRW		2,850,000,000		2,490,619
5.25%, 03/10/2027 KRW		4,635,000,000		3,878,211
Malaysia, 3.83%, 09/28/2011 MYR		20,900,000		6,250,589
Mexico, 9.50%, 12/18/2014 MXN		73,625,000		6,182,699
Netherlands:
3.75%, 01/15/2023 EUR		1,475,000		2,046,722
4.00%, 01/15/2037 EUR		4,350,000		5,987,484
New Zealand, 6.00%, 12/15/2017 NZD		5,855,000		4,201,142
Norway, 4.25%, 05/19/2017 NOK		58,000,000		10,056,601
Poland, 5.25%, 04/25/2013 PLN		14,350,000		4,951,992
Slovenia, 4.625%, 09/09/2024 EUR		1,425,000		2,005,793
Spain, 4.80%, 01/31/2024 EUR		2,600,000		3,711,484
Sweden, 3.75%, 08/12/2017 SEK		70,000,000		9,937,513



Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated) (cost $112,553,165)				109,593,060



U.S. TREASURY OBLIGATIONS 0.0%
U.S. Treasury Notes, 4.375%, 11/15/2039 (cost $38,305)	$	40,000		39,125



WHOLE LOAN MORTGAGE-BACKED PASS THROUGH SECURITIES 2.5%
FIXED-RATE 1.2%
Bear Stearns Securities Trust, Ser. 2007, Class AM, 5.92%, 06/11/2050		2,290,000		1,914,451
Credit Suisse Comml. Mtge. Trust, Ser. 2007-C5, Class A4, 5.70%, 09/15/2040		4,060,000		3,371,549
Greenwich Capital Comml. Funding Corp., Ser. 2007-GG11, Class AM, 5.87%, 08/10/2017		2,920,000		2,420,368



				7,706,368



FLOATING-RATE 1.3%
American Home Mtge. Assets, Ser. 2006-2, Class 1A1, 1.44%, 09/25/2046		5,241,010		2,788,636
Banc of America Comml. Mtge., Inc., Ser. 2007-04, Class A4, 5.74%, 02/10/2051		3,654,000		3,392,696
GSR Mtge. Loan Trust, Ser. 2007-AR1, Class 2A1, 5.93%, 03/25/2037		1,577,296		1,157,754
Lehman XS Trust, Ser. 2006-18N, Class A5A, 0.40%, 12/25/2036		4,135,000		1,411,101



				8,750,187



Total Whole Loan Mortgage-Backed Pass Through Securities (cost $16,089,818)				16,456,555



YANKEE OBLIGATIONS – CORPORATE 10.9%
CONSUMER DISCRETIONARY 0.5%
Hotels, Restaurants & Leisure 0.2%
Grupo Posadas SAB de CV, 9.25%, 01/15/2015 144A		1,035,000		1,060,875
Norwegian Cruise Line, Ltd., 11.75%, 11/15/2016 144A		60,000		63,600



				1,124,475



Household Durables 0.2%
Desarrolladora Homex SAB de CV, 9.50%, 12/11/2019 144A		1,075,000		1,105,054



Media 0.1%
UPC Germany GmbH, 8.125%, 12/01/2017 144A		720,000		742,226
UPC Holdings BV, 9.875%, 04/15/2018 144A		20,000		21,150
Videotron, Ltd.:
9.125%, 04/15/2018		85,000		91,800
9.125%, 04/15/2018 144A		50,000		53,750



				908,926



CONSUMER STAPLES 0.1%
Food & Staples Retailing 0.1%
Minerva Overseas, Ltd., 10.875%, 11/15/2019 144A		415,000		422,817

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


YANKEE OBLIGATIONS – CORPORATE continued
ENERGY 2.0%
Oil, Gas & Consumable Fuels 2.0%
Connacher Oil & Gas, Ltd.:
10.25%, 12/15/2015 144A	$	2,380,000	$	2,284,800
11.75%, 07/15/2014 144A		625,000		687,500
Griffin Coal Mining Co., Ltd., 9.50%, 12/01/2016 144A •		4,585,000		2,384,200
Mexichem SAB de CV, 8.75%, 11/06/2019 144A		1,300,000		1,400,818
OPTI Canada, Inc.:
7.875%, 12/15/2014		2,530,000		2,194,775
8.25%, 12/15/2014		1,120,000		985,600
9.00%, 12/15/2012 144A		855,000		876,375
P2021 Rig Co., 13.50%, 12/15/2013 144A		1,395,000		1,422,900
Teekay Corp., 8.50%, 01/15/2020		985,000		999,775



				13,236,743



FINANCIALS 2.6%
Commercial Banks 0.3%
KfW Bankengruppe, 4.875%, 06/17/2019		2,000,000		2,151,932



Consumer Finance 1.2%
Fibria Overseas Finance, Ltd., 9.25%, 10/30/2019 144A		420,000		472,443
Listrindo Capital B.V., 9.25%, 01/29/2015 144A		1,185,000		1,217,599
Petroplus Finance, Ltd.:
5.75%, 01/20/2020		2,150,000		2,138,713
6.75%, 05/01/2014 144A		80,000		74,000
Virgin Media Finance plc:
6.50%, 01/15/2018 144A		120,000		119,535
8.375%, 10/15/2019		85,000		87,125
9.125%, 08/15/2016		100,000		104,000
Wind Acquisition Finance SA, 11.75%, 07/15/2017 144A		3,365,000		3,659,438



				7,872,853



Diversified Financial Services 1.1%
FMG Finance Property, Ltd.:
10.625%, 09/01/2016 144A		3,165,000		3,584,362
FRN, 4.26%, 09/01/2011 144A		545,000		534,100
Manchester United Finance plc, 8.375%, 02/01/2017 144A		285,000		275,105
Preferred Term Securities XII, Ltd., FRN, 0.95%, 12/24/2033 + •		635,000		4,000
Ship Finance International, Ltd., 8.50%, 12/15/2013		2,515,000		2,455,269



				6,852,836



HEALTH CARE 0.0%
Pharmaceuticals 0.0%
Elan Corporation plc, 8.75%, 10/15/2016 144A		80,000		78,900



INDUSTRIALS 1.9%
Road & Rail 1.9%
Kansas City Southern de Mexico:
7.375%, 06/01/2014		4,875,000		4,801,875
8.00%, 02/01/2018 144A		6,660,000		6,576,676
12.50%, 04/01/2016		480,000		561,000
TFM de CV, 9.375%, 05/01/2012		696,000		713,400



				12,652,951



Transportation Infrastructure 0.0%
Navios Maritime Holdings, Inc., 8.875%, 11/01/2017 144A		145,000		150,075



MATERIALS 2.3%
Chemicals 0.2%
NOVA Chemicals Corp.:
8.375%, 11/01/2016 144A		475,000		477,969
8.625%, 11/01/2019 144A		675,000		680,906



				1,158,875

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


YANKEE OBLIGATIONS – CORPORATE continued
MATERIALS continued
Metals & Mining 1.4%
Evraz Group SA:
8.875%, 04/24/2013 144A	$	1,030,000	$	1,054,462
8.875%, 04/24/2013		480,000		492,000
Novelis, Inc., 7.25%, 02/15/2015		1,785,000		1,691,287
Teck Resources, Ltd.:
9.75%, 05/15/2014		885,000		1,011,113
10.75%, 05/15/2019		2,050,000		2,413,875
Vedanta Resources plc, 9.50%, 07/18/2018 144A		2,420,000		2,577,300



				9,240,037



Paper & Forest Products 0.7%
PE Paper Escrow GmbH, 12.00%, 08/01/2014 144A		685,000		756,925
Sappi, Ltd.:
6.75%, 06/15/2012 144A		1,675,000		1,624,750
7.50%, 06/15/2032 144A		3,865,000		2,608,875



				4,990,550



TELECOMMUNICATION SERVICES 1.3%
Diversified Telecommunication Services 0.0%
Inmarsat plc, 7.375%, 12/01/2017 144A		85,000		87,647



Wireless Telecommunication Services 1.3%
Digicel Group, Ltd.:
8.25%, 09/01/2017 144A		815,000		790,550
12.00%, 04/01/2014 144A		800,000		888,000
Intelsat, Ltd.:
8.50%, 01/15/2013		2,495,000		2,519,950
8.50%, 11/01/2019 144A		850,000		869,125
8.875%, 01/15/2015		234,000		239,850
8.875%, 01/15/2015 144A		105,000		107,100
11.25%, 06/15/2016		275,000		292,188
Millicom International Cellular SA, 10.00%, 12/01/2013		260,000		268,450
Telesat Canada, Inc., 11.00%, 11/01/2015		905,000		1,011,337
Vimpel Communications:
8.375%, 04/30/2013 144A		45,000		47,644
9.125%, 04/30/2018 144A		1,625,000		1,755,000



				8,789,194



UTILITIES 0.2%
Electric Utilities 0.2%
E.ON AG, 5.80%, 04/30/2018		1,000,000		1,069,263
InterGen NV, 9.00%, 06/30/2017 144A		185,000		188,700



				1,257,963



Total Yankee Obligations – Corporate (cost $65,740,091)				72,081,828



CONVERTIBLE DEBENTURES 0.1%
INFORMATION TECHNOLOGY 0.1%
Communications Equipment 0.1%
Lucent Technologies, Inc., 2.875%, 06/15/2025 (cost $272,388)		565,000		485,900



LOANS 6.5%
CONSUMER DISCRETIONARY 1.6%
Abitibi Consolidated, Inc., FRN, 11.00%, 03/30/2010		776,355		722,010
Ford Motor Co., FRN, 3.24%-3.26%, 12/15/2013		521,148		489,963
Metaldyne Corp., FRN, 13.00%, 04/09/2014		2,499,999		2,587,249
MGM Mirage, FRN, 6.00%, 10/03/2011 <		760,693		732,434
Newsday, LLC, 10.50%, 07/15/2013		2,755,000		2,937,160

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
		Principal Amount		Value


LOANS continued
CONSUMER DISCRETIONARY continued
Sugarhouse HSP Gaming Properties, LP, FRN, 11.25%, 09/11/2014	$	1,215,000	$	1,208,439
Tower Automotive Holdings, FRN, 4.50%-4.56%, 07/31/2013		392,980		157,192
Tropicana Entertainment, LLC, FRN, 2.73%, 01/03/2012 •		1,970,000		600,870
Universal City Development, Ltd, 7.75%, 10/29/2014		1,215,000		1,216,652



				10,651,969



CONSUMER STAPLES 0.5%
Merisant Co., FRN, 7.50%, 01/08/2014		3,262,741		3,163,978



ENERGY 0.7%
Saint Acquisition Corp., FRN, 8.25%, 06/05/2014		1,572,447		1,508,873
Semgroup Energy Partners, FRN, 9.50%, 07/20/2012		2,925,000		2,922,894



				4,431,767



FINANCIALS 0.3%
CIT Group, Inc., FRN, 12.25%, 01/18/2012		890,000		920,180
Realogy Corp., FRN:
3.23%, 09/01/2014		280,430		249,145
3.25%, 09/01/2014		1,041,597		925,397



				2,094,722



HEALTH CARE 0.1%
HCA, Inc., FRN, 1.75%, 11/18/2012		785,680		741,250



INDUSTRIALS 0.6%
Commercial Vehicle Group, Inc., 15.00%, 02/15/2013		2,246,048		2,155,914
Neff Corp., FRN:
3.75%, 05/31/2013		613,750		509,683
3.75%, 11/30/2014		4,910,000		957,450



				3,623,047



MATERIALS 2.3%
LyondellBasell, FRN:
3.73%, 12/20/2013 <		510,738		374,539
3.98%, 12/22/2014 <		310,689		227,829
5.79%-6.56%, 04/06/2010 <		8,773,458		9,212,219
7.00%, 12/20/2013 <		1,348,164		988,608
13.00%, 04/06/2010 <		4,183,581		4,382,343



				15,185,538



TELECOMMUNICATION SERVICES 0.2%
FairPoint Communications, Inc., FRN, 2.75%, 03/08/2015 •		2,075,398		1,609,222



UTILITIES 0.2%
Scorpion Holding Co., Ltd., FRN, 7.73%, 05/08/2014		1,730,000		1,630,992



Total Loans (cost $44,044,546)				43,132,485






		Shares		Value


CLOSED END MUTUAL FUND SHARES 0.4%
Dreyfus High Yield Strategies Fund, Inc.		216,382		815,760
Eaton Vance Limited Duration Income Trust		53,764		829,579
ING Prime Rate Trust		12,336		70,809
LMP Corporate Loan Fund, Inc.		16,391		171,286
New America High Income Fund, Inc.		90,309		817,296



Total Closed End Mutual Fund Shares (cost $1,572,680)				2,704,730

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)
	Shares		Value


SHORT-TERM INVESTMENTS 2.0%
MUTUAL FUND SHARES 2.0%
Evergreen Institutional Money Market Fund, Class I, 0.01% q ø ## (cost $13,291,080)	13,291,080		13,291,080



Total Investments (cost $848,574,932) 131.6%		$	872,386,446
Other Assets and Liabilities and Preferred Shares (31.6%)			(209,563,552	)



Net Assets Applicable to Common Shareholders 100.0%		$	662,822,894

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 which has defaulted on payment of interest and/or principal. The Fund has stopped accruing interest on this security.
+	Security is deemed illiquid.
††	The rate shown is the stated rate at the current period end.
@	Security is currently paying interest in-kind.
†	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.
o	Security is valued at fair value as determined by the investment advisor in good faith, according to procedures approved by the Board of Trustees.
<	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.
##	All or a portion of this security has been segregated for when-issued, delayed delivery securities and/or unfunded loans.

Summary of Abbreviations
AUD	Australian 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
HUF	Hungarian Forint
KRW	Republic of Korea Won
MXN	Mexican Peso
MYR	Malaysian Ringgit
NOK	Norwegian Krone
NZD	New Zealand Dollar
PLN	Polish Zloty
SEK	Swedish Krona

For the period from November 1, 2009 to January 31, 2010, the Fund entered into forward foreign currency exchange contracts for hedging purposes.

At January 31, 2010, 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 January 31, 2010	In Exchange for U.S. $	Unrealized Gain (Loss)


03/01/2010	1,170,000,000	JPY	$12,962,956	$13,533,050	$(570,094)

Exchange Date	Contracts to Receive		U.S. Value at January 31, 2010	In Exchange for		U.S. Value at January 31, 2010	Unrealized Gain (Loss)


02/01/2010	1,280,235,000	JPY	$14,183,072	9,944,809	EUR	$13,788,468	$ 394,604
02/01/2010	10,134,054	EUR	14,050,856	1,280,235,000	JPY	14,183,072	(132,216	)
02/26/2010	553,257,000	JPY	6,129,724	4,163,869	EUR	5,772,843	356,881
02/26/2010	79,721,178	MXN	6,078,858	553,257,000	JPY	6,129,725	(50,867	)
02/26/2010	553,257,000	JPY	6,129,724	83,700,000	MXN	6,382,248	(252,524	)
03/03/2010	41,260,000	JPY	457,141	282,423	GBP	451,354	5,787
03/03/2010	96,032,300	JPY	1,063,993	650,000	GBP	1,038,798	25,195
03/03/2010	905,000,000	JPY	10,026,975	6,280,361	GBP	10,036,960	(9,985	)
03/25/2010	997,620,000	JPY	11,054,144	12,000,000	AUD	10,558,265	495,879
04/01/2010	1,070,000,000	JPY	11,856,487	8,473,234	EUR	11,746,486	110,001
04/13/2010	953,925,000	JPY	10,570,904	14,065,126	NZD	9,821,460	749,444
04/15/2010	3,913,227	EUR	5,424,708	6,200,000	AUD	5,442,574	(17,866	)

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)

Forward Foreign Currency Exchange Contracts to Sell:

Exchange Date	Contracts to Deliver		U.S. Value at January 31, 2010	In Exchange for U.S. $	Unrealized Gain (Loss)


03/01/2010	41,260,000	JPY	$ 457,138	$ 457,519	$ 381
03/22/2010	15,200,000	EUR	21,072,311	21,548,736	476,425
04/15/2010	115,715	EUR	160,410	172,276	11,866
04/15/2010	1,848,700	EUR	2,562,759	2,750,755	187,996

The Fund had average contract amounts of $110,731,823 and $18,078,665 in forward foreign currency exchange contracts to buy and forward foreign currency exchange contracts to sell, respectively, for the period from November 1, 2009 through January 31, 2010.

At January 31, 2010, the Fund had the following credit default swap contracts outstanding:

Credit default swaps on debt obligations – Buy protection

Rating of

Fixed

Frequency

Upfront

Reference

Payments

Premiums

Debt

Notional

Made

Payments

Market

Paid/

Unrealized

Expiration

Counterparty

Obligation

Obligation*

Amount

by the Fund

Made

Value

(Received)

Gain (Loss)

06/20/2014

Goldman Sachs

Expedia, Inc., 7.46%, 08/15/2018 #

BBB-

$975,000

5.00%

Quarterly

$(162,632)

$(78,458)

$(84,174)

06/20/2014

UBS

Expedia, Inc., 7.46%, 08/15/2018 #

BBB-

415,000

5.00%

Quarterly

(69,223)

(11,125)

(58,098)

Credit default swaps on an index – Sell protection

Fixed

Frequency

Upfront

Rating of

Payments

Premiums

Reference

Notional

Received

Payments

Market

Paid/

Unrealized

Expiration

Counterparty

Index

Index*@

Amount

by the Fund

Received

Value

(Received)

Gain (Loss)

12/13/2049

Credit Suisse

Markit CMBX North America AAA.3 #

AAA

$1,015,000

0.08%

Monthly

$(176,813)

$(274,073)

$ 97,260

12/13/2049

Goldman Sachs

Markit CMBX North America AAA.3 #

AAA

750,000

0.08%

Monthly

(130,650)

(278,695)

148,045

*	Reflects the ratings of a nationally recognized ratings agency at period end. A rating of D would most likely indicate a trigger event of default has occurred although circumstances including bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium and restructuring may also cause a credit event to take place.
@	Rating represents an average rating for the underlying securities within the index.
#	The Fund entered into the swap contract for speculative purposes.

The Fund had an average notional balance on credit default swaps of $6,013,797 for the period from November 1, 2009 through January 31, 2010.

As of January 31, 2010, reverse repurchase agreements outstanding were as follows:

Repurchase Amount	Counterparty	Interest Rate	Maturity Date


$33,951,162	Credit Suisse	0.29%	02/18/2010
33,744,269	Goldman Sachs	0.25%	02/18/2010
32,640,582	Morgan Stanley	0.25%	02/18/2010

On January 31, 2010, the aggregate cost of securities for federal income tax purposes was $853,190,624. The gross unrealized appreciation and depreciation on securities based on tax cost was $43,560,047 and $24,364,225, respectively, with a net unrealized appreciation of $19,195,822.

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

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)

Reverse repurchase agreements

To obtain short-term financing, the Fund may enter into reverse repurchase agreements with banks and other financial institutions, which are deemed by the investment advisor to be creditworthy. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing qualified assets having a value not less than the repurchase price, including accrued interest. If the counterparty to the transaction is rendered insolvent, the Fund may be delayed or limited in the repurchase of the collateral securities.

Foreign currency translation

All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for that portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses on investments.

Forward foreign currency contracts

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on foreign currency related transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

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 January 31, 2010, the Fund had unfunded loan commitments of $6,250,485.

Credit default swaps

The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund may enter into credit default swap contracts for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or for investment gains. Credit default swaps involve an exchange of a stream of payments for protection against the loss in value of an underlying security or index. Under the terms of the swap, one party acts as a guarantor (referred to as the seller of protection) and receives a periodic stream of payments, provided that there is no credit event, from another party (referred to as the buyer of protection) that is a fixed percentage applied to a notional principal amount over the term of the swap. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. A credit event includes bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium, and restructuring. The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection 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. The maximum potential amount of future payments (undiscounted) that the Fund as the seller of protection could be required to make under the credit default swap contract would be an amount equal to the notional amount of the swap contract. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

If the Fund is the seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of protection the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index. If the Fund is the buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will receive from the seller of protection the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index.

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.

Certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements. Any election by the counterparty to terminate early may impact the amounts reported on the financial statements.

Valuation hierarchy

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. These inputs are summarized into three broad levels as follows:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

EVERGREEN MULTI–SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



January 31, 2010 (unaudited)

As of January 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total


Equity securities
Mutual fund shares	$	2,704,730	$	0	$	0	$	2,704,730
Mortgage-backed securities		0		220,171,606		0		220,171,606
Corporate debt securities		0		483,045,706		408,654		483,454,360
Loans		0		29,781,833		13,350,652		43,132,485
Debt securities issued by foreign governments		0		109,593,060		0		109,593,060
Debt securities issued by U.S. Treasury and U.S. government agencies		39,125		0		0		39,125
Short-term investments		13,291,080		0		0		13,291,080


	$	16,034,935	$	842,592,205	$	13,759,306	$	872,386,446

As of January 31, 2010, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total


Other financial instruments*		$0		$1,883,940		$0		$1,883,940

*	Other financial instruments include forwards and swap contracts.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

	Common stocks			Corporate debt securities		Loans		Total


Balance as of November 1, 2009	$	3,014,385		$	376,052	$	11,927,339	$	15,317,776
Realized gains or losses		(671,839	)		0		491		(671,348	)
Change in unrealized gains or losses		1,346,974			31,969		164,445		1,543,388
Amortization		0			633		89,669		90,302
Net purchases (sales)		(3,689,520	)		0		1,168,708		(2,520,812	)
Transfers in and/or out of Level 3		0			0		0		0


Balance as of January 31, 2010	$	0		$	408,654	$	13,350,652	$	13,759,306


Change in unrealized gains or losses included in earnings relating to securities still held at January 31, 2010	$	0		$	31,969	$	164,445	$	196,414

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:	/s/ W. Douglas Munn
	W. Douglas Munn Principal Executive Officer

Date: March 31, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ W. Douglas Munn
	W. Douglas Munn Principal Executive Officer

Date: March 31, 2010

By:	/s/ Kasey Phillips
	Kasey Phillips Principal Financial Officer

Date: March 31, 2010