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, Multi-Sector Income Fund, for the quarter ended July 31, 2009. This series has October 31 fiscal year end.

Date of reporting period: July 31, 2009

Item 1 - Schedule of Investments

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS



July 31, 2009 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED COLLATERALIZED MORTGAGE OBLIGATIONS 3.2%
FIXED-RATE 0.2%
FNMA:
Ser. 2001-25, Class Z, 6.00%, 06/25/2031	$	1,049,389	$	1,101,051
Ser. 2001-51, Class P, 6.00%, 08/25/2030		353,897		357,933


				1,458,984


FLOATING-RATE 3.0%
FHLMC:
Ser. 0196, Class A, 1.11%, 12/15/2021		136,723		137,652
Ser. 2390, Class FD, 0.74%, 12/15/2031		129,643		127,972
Ser. 2411, Class F, 0.84%, 02/15/2032		172,407		170,259
Ser. 2431, Class F, 0.79%, 03/15/2032 µ		6,061,202		6,039,078
Ser. 2567, Class FH, 0.69%, 02/15/2033		330,815		327,810
Ser. T-67, Class 2A1C, 4.10%, 03/25/2036		1,585,841		1,567,804
FNMA:
Ser. 1996-46, Class FA, 0.81%, 08/25/2021		76,143		74,495
Ser. 2001-35, Class F, 0.89%, 07/25/2031		51,346		50,932
Ser. 2001-57, Class F, 0.79%, 06/25/2031		51,693		51,102
Ser. 2002-77, Class FH, 0.69%, 12/18/2032		309,140		304,642
Ser. 2002-95, Class FK, 0.79%, 01/25/2033 µ		7,776,187		7,733,496
Ser. 2002-97, Class FR, 0.84%, 01/25/2033		118,105		116,905
Ser. 2003-W8, Class 3F2, 0.64%, 05/25/2042		1,634,909		1,466,874
Ser. G91-16, Class F, 0.76%, 06/25/2021		94,935		94,530
Ser. G92-17, Class F, 1.36%, 03/25/2022		169,144		172,099
GNMA, Ser. 2001-61, Class FA, 0.79%, 09/20/2030		77,726		77,520


				18,513,170


Total Agency Mortgage-Backed Collateralized Mortgage Obligations (cost $20,405,487)				19,972,154


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES 25.4%
FIXED-RATE 0.5%
FHLMC, 8.50%, 04/01/2015-07/01/2028		337,211		373,344
FNMA:
6.00%, 04/01/2033		434,702		456,355
6.50%, 11/01/2032		69,610		74,770
7.50%, 07/01/2017-07/01/2032		800,576		869,829
8.00%, 12/01/2024-06/01/2030		238,731		262,003
12.00%, 01/01/2016		39,000		42,581
GNMA:
6.50%, 06/15/2028		95,818		102,892
7.25%, 07/15/2017-05/15/2018		824,421		889,003


				3,070,777


FLOATING-RATE 24.9%
FHLB:
4.15%, 07/01/2033		305,121		315,339
4.19%, 12/01/2034 µ		9,586,850		9,850,781
4.25%, 06/01/2035 µ		4,231,860		4,373,964
4.56%, 11/01/2030		600,404		616,009
FHLMC:
3.33%, 10/01/2030		24,291		24,572
3.85%, 06/01/2033		381,444		393,013
3.89%, 07/01/2032		613,118		628,428
4.10%, 10/01/2037		3,977,040		4,111,267
4.17%, 09/01/2032		661,565		677,899
4.25%, 04/01/2034 µ		18,854,172		19,370,710
4.38%, 10/01/2030		430,208		440,955
4.40%, 10/01/2033		240,268		246,400
4.45%, 12/01/2026		109,427		111,242

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FLOATING-RATE continued
FHLMC:
4.50%, 10/01/2024	$	50,625	$	51,952
4.51%, 08/01/2030		532,054		552,006
4.81%, 10/01/2022		117,282		118,286
5.07%, 05/01/2019-07/01/2035		636,640		663,433
5.53%, 06/01/2018		66,944		69,833
5.87%, 02/01/2037 µ		4,620,542		4,843,414
6.49%, 01/01/2027		270,948		280,237
8.50%, 03/01/2030		118,295		126,258
FNMA:
1.48%, 04/01/2028		115,346		116,096
1.82%, 10/01/2034		304,139		298,809
2.875%, 04/01/2019		63,517		64,084
2.95%, 04/01/2034 µ		5,969,562		6,030,110
2.97%, 01/01/2038		4,851,471		4,830,215
3.08%, 12/01/2017		933,417		938,970
3.09%, 04/01/2017		2,628,933		2,654,960
3.17%, 10/01/2035-12/01/2035		9,012,356		9,199,124
3.19%, 02/01/2035 µ		1,241,584		1,245,838
3.29%, 06/01/2024		196,672		201,025
3.43%, 02/01/2017		2,132,586		2,153,191
3.49%, 08/01/2036		6,541,376		6,751,053
3.51%, 12/01/2028		51,823		53,131
3.67%, 04/01/2036		4,789,672		4,988,683
3.73%, 09/01/2032		211,134		217,917
3.80%, 01/01/2036		3,732,056		3,834,023
3.81%, 01/01/2030		77,058		80,287
3.84%, 07/01/2036 µ		5,738,556		5,877,971
3.85%, 02/01/2038		422,246		438,455
3.93%, 02/01/2035		479,923		494,549
3.98%, 06/01/2031		148,609		152,479
4.00%, 07/01/2038		3,329,145		3,410,909
4.13%, 07/01/2038		303,187		309,626
4.15%, 12/01/2009		190,621		190,621
4.18%, 12/01/2029		71,484		73,117
4.25%, 01/01/2017		84,732		86,166
4.33%, 02/01/2035		7,673,127		7,907,157
4.36%, 12/01/2031		89,827		91,853
4.45%, 05/01/2030		253,009		259,626
4.46%, 07/01/2033		200,267		204,785
4.47%, 01/01/2015		41,224		42,052
4.48%, 07/01/2026		41,634		42,557
4.53%, 03/01/2034		29,573		30,364
4.54%, 06/01/2029		388,364		396,818
4.57%, 10/01/2029		135,312		137,600
4.58%, 03/01/2034		827,010		842,586
4.59%, 01/01/2026		420,327		429,234
4.62%, 08/01/2028		79,433		81,599
4.69%, 12/01/2036		58,880		60,079
4.71%, 12/01/2026		126,950		129,198
4.72%, 10/01/2034 µ		15,122,526		15,421,506
4.75%, 12/01/2016		11,076		11,318
4.78%, 08/01/2030		269,681		276,846
4.83%, 07/01/2038 µ		3,326,418		3,400,374
4.84%, 04/01/2033		180,519		188,819
4.87%, 04/01/2034		4,243,945		4,272,443

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


AGENCY MORTGAGE-BACKED PASS THROUGH SECURITIES continued
FLOATING-RATE continued
FNMA:
4.89%, 12/01/2034	$	1,655,498	$	1,666,425
4.95%, 01/01/2034		509,059		519,531
4.98%, 03/01/2033		171,800		177,615
5.07%, 09/01/2027		199,160		205,006
5.11%, 12/01/2022		15,004		15,466
5.23%, 04/01/2031		739,045		757,587
5.29%, 04/01/2025		140,694		145,143
5.30%, 07/01/2030		113,048		114,652
5.36%, 02/01/2036		2,976,929		3,125,627
5.55%, 09/01/2024		11,849		12,225
5.57%, 08/01/2027		325,152		330,974
6.00%, 05/01/2021-08/01/2021		18,313		19,090
6.09%, 11/01/2024		257,697		261,176
6.11%, 12/01/2013		414,359		423,947
6.14%, 12/01/2020		117,303		122,172
6.55%, 09/01/2037		4,302,010		4,562,819
6.62%, 09/01/2032		4,158,356		4,307,687


				153,551,363


Total Agency Mortgage-Backed Pass Through Securities (cost $155,469,899)				156,622,140


AGENCY REPERFORMING MORTGAGE-BACKED PASS THROUGH SECURITIES 0.1%
FIXED-RATE 0.1%
FNMA, Ser. 2001-T10, Class A2, 7.50%, 12/25/2041 (cost $361,480)		332,204		364,308


COMMERCIAL MORTGAGE-BACKED SECURITIES 1.8%
FIXED-RATE 0.5%
Bear Stearns Comml. Mtge. Securities Trust, Ser. 2007-PW15, Class A4, 5.33%, 02/11/2044		1,415,000		1,214,075
Greenwich Capital Comml. Funding Corp., Ser. 2007-GG9, Class AM, 5.48%, 03/10/2039		200,000		122,714
Morgan Stanley Capital I Trust, Ser. 2006-HQ10, Class AM, 5.36%, 11/21/2041		2,445,000		1,677,438


				3,014,227


FLOATING-RATE 1.3%
Citigroup Comml. Mtge. Trust, Ser. 2007-C6, Class A4, 5.70%, 12/10/2049		1,875,000		1,604,443
GE Comml. Mtge. Trust:
Ser. 2006-C7, Class AM, 5.79%, 06/10/2046		2,875,000		1,896,778
Ser. 2007-C9, Class A4, 6.01%, 12/10/2049		1,400,000		1,193,769
Goldman Sachs Mtge. Securities Corp., Ser. 2007-GG10, Class A4, 5.81%, 08/10/2045		1,620,000		1,279,277
Morgan Stanley Capital I Trust:
Ser. 2006-IQ11, Class AM, 5.77%, 10/15/2042		240,000		159,504
Ser. 2007-2A, Class 2A, 5.81%, 08/12/2045 144A		3,755,000		2,236,535


				8,370,306


Total Commercial Mortgage-Backed Securities (cost $9,353,034)				11,384,533


CORPORATE BONDS 55.2%
CONSUMER DISCRETIONARY 8.2%
Auto Components 1.3%
Cooper Standard Automotive, Inc.:
7.00%, 12/15/2012 •		300,000		69,000
8.375%, 12/15/2014 •		670,000		43,550
Cooper Tire & Rubber Co., 7.625%, 03/15/2027		5,220,000		3,732,300
Goodyear Tire & Rubber Co.:
7.86%, 08/15/2011		1,180,000		1,180,000
8.625%, 12/01/2011		690,000		702,075
9.00%, 07/01/2015		237,000		241,740
10.50%, 05/15/2016		730,000		786,575
FRN, 5.01%, 12/01/2009		1,005,000		1,006,256


				7,761,496

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Diversified Consumer Services 0.3%
Carriage Services, Inc., 7.875%, 01/15/2015	$	1,715,000	$	1,440,600
Service Corporation International:
6.75%, 04/01/2015		365,000		344,925
7.50%, 04/01/2027		200,000		162,500


				1,948,025


Hotels, Restaurants & Leisure 1.5%
Boyd Gaming Corp.:
7.125%, 02/01/2016		375,000		301,875
7.75%, 12/15/2012		95,000		92,863
Caesars Entertainment, Inc., 7.875%, 03/15/2010		880,000		844,800
Harrah’s Entertainment Corp., 11.25%, 06/01/2017 144A		1,540,000		1,566,950
Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/2010 •		1,050,000		430,500
MGM MIRAGE:
6.625%, 07/15/2015		230,000		167,900
8.50%, 09/15/2010		780,000		739,050
11.125%, 11/15/2017 144A		480,000		530,400
Pinnacle Entertainment, Inc.:
8.625%, 08/01/2017 144A #		465,000		467,325
8.75%, 10/01/2013		60,000		62,100
Pokagon Gaming Authority, 10.375%, 06/15/2014 144A		60,000		60,000
Seneca Gaming Corp., 7.25%, 05/01/2012		585,000		544,050
Shingle Springs Tribal Gaming Authority, 9.375%, 06/15/2015 144A		1,205,000		777,225
Speedway Motorsports, Inc., 8.75%, 06/01/2016 144A		695,000		714,112
Trump Entertainment Resorts, Inc., 8.50%, 06/01/2015 •		3,354,000		452,790
Universal City Development Partners, Ltd., 11.75%, 04/01/2010		1,610,000		1,605,975


				9,357,915


Household Durables 1.9%
D.R. Horton, Inc.:
6.00%, 04/15/2011		150,000		149,250
9.75%, 09/15/2010		1,950,000		2,001,187
Hovnanian Enterprises, Inc., 11.50%, 05/01/2013		190,000		176,225
Lennar Corp.:
5.125%, 10/01/2010		2,385,000		2,337,300
5.60%, 05/31/2015		60,000		50,700
12.25%, 06/01/2017 144A		60,000		67,500
Libbey, Inc., FRN, 8.26%, 06/01/2011		1,955,000		1,436,925
Meritage Homes Corp.:
6.25%, 03/15/2015		910,000		748,475
7.00%, 05/01/2014		1,155,000		981,750
Newell Rubbermaid, Inc., 10.60%, 04/15/2019		395,000		466,972
Pulte Homes, Inc.:
7.875%, 08/01/2011		1,295,000		1,337,088
8.125%, 03/01/2011		770,000		793,100
Sealy Corp., 10.875%, 04/15/2016 144A		180,000		197,100
Whirlpool Corp., 8.60%, 05/01/2014		1,010,000		1,085,213


				11,828,785


Internet & Catalog Retail 0.1%
Ticketmaster Entertainment, Inc., 10.75%, 08/01/2016		855,000		799,425


Media 1.7%
CBS Corp., 8.875%, 05/15/2019		1,230,000		1,282,720
Charter Communications, Inc.:
12.875%, 09/15/2014 144A •		3,570,000		3,873,450
Step Bond, 8.00%, 04/30/2012 144A †† •		1,750,000		1,754,375

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Media continued
CSC Holdings, Inc., 7.625%, 04/01/2011	$	830,000	$	844,525
DirectTV Holdings, LLC, 7.625%, 05/15/2016		390,000		396,825
Interpublic Group of Companies, Inc., 10.00%, 07/15/2017 144A		170,000		178,500
Lamar Media Corp.:
6.625%, 08/15/2015		115,000		101,775
7.25%, 01/01/2013		180,000		174,600
Mediacom, LLC, 7.875%, 02/15/2011		590,000		588,525
R.H. Donnelley Corp., 11.75%, 05/15/2015 144A •		221,000		116,025
Regal Cinemas, Inc., 8.625%, 07/15/2019 144A		25,000		25,875
Sinclair Broadcast Group, Inc., 8.00%, 03/15/2012		242,000		186,945
Sirius Satellite Radio, Inc., 9.625%, 08/01/2013		165,000		139,013
WMG Acquisition Corp., 9.50%, 06/15/2016 144A		740,000		789,950
XM Satellite Radio Holdings, Inc., 13.00%, 08/01/2013 144A		335,000		302,337
Young Broadcasting, Inc.:
8.75%, 01/15/2014 •		2,121,000		2,121
10.00%, 03/01/2011 •		1,540,000		1,540


				10,759,101


Multiline Retail 0.1%
Neiman Marcus Group, Inc., 9.00%, 10/15/2015 @		235,828		175,692
Saks, Inc., 9.875%, 10/01/2011		125,000		121,875


				297,567


Specialty Retail 0.6%
American Achievement Corp.:
8.25%, 04/01/2012 144A		2,740,000		2,698,900
Step Bond, 10.25%, 10/01/2012 ††		445,000		382,700
Freedom Group, Inc., 10.25%, 08/01/2015 144A		470,000		484,100


				3,565,700


Textiles, Apparel & Luxury Goods 0.7%
Oxford Industries, Inc., 11.375%, 07/15/2015 144A		2,505,000		2,623,988
Visant Corp., 7.625%, 10/01/2012		1,495,000		1,509,950


				4,133,938


CONSUMER STAPLES 1.7%
Beverages 0.6%
Anheuser-Busch InBev, 6.875%, 11/15/2019 144A		2,000,000		2,225,958
Cott Beverages, Inc., 8.00%, 12/15/2011		1,220,000		1,207,800


				3,433,758


Food Products 0.7%
Del Monte Foods Co.:
6.75%, 02/15/2015		25,000		24,437
8.625%, 12/15/2012		1,119,000		1,146,975
Smithfield Foods, Inc.:
7.00%, 08/01/2011		1,490,000		1,422,950
10.00%, 07/15/2014 144A		1,200,000		1,257,000
Tyson Foods, Inc.:
7.85%, 04/01/2016		395,000		400,925
10.50%, 03/01/2014 144A		165,000		183,975


				4,436,262


Tobacco 0.4%
Altria Group, Inc., 10.20%, 02/06/2039		1,820,000		2,375,009

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
ENERGY 9.4%
Energy Equipment & Services 2.2%
Basic Energy Services, Inc., 11.625%, 08/01/2014 144A	$	705,000	$	705,000
Bristow Group, Inc., 7.50%, 09/15/2017		1,245,000		1,170,300
Forbes Energy Services, Ltd., 11.00%, 02/15/2015		4,095,000		2,948,400
GulfMark Offshore, Inc., 7.75%, 07/15/2014		1,500,000		1,410,000
Hornbeck Offshore Services, Inc., Ser. B, 6.125%, 12/01/2014		2,235,000		2,089,725
Parker Drilling Co., 9.625%, 10/01/2013		884,000		861,900
PHI, Inc., 7.125%, 04/15/2013		2,040,000		1,861,500
Pride International, Inc., 8.50%, 06/15/2019		1,205,000		1,295,375
Smith International, Inc., 9.75%, 03/15/2019		945,000		1,144,850


				13,487,050


Oil, Gas & Consumable Fuels 7.2%
Arch Coal, Inc., 8.75%, 08/01/2016 144A		1,235,000		1,253,525
Atlas Energy Resources, LLC, 12.125%, 08/01/2017		670,000		708,525
Chesapeake Energy Corp.:
6.875%, 01/15/2016		4,930,000		4,658,850
9.50%, 02/15/2015		1,470,000		1,567,387
Delta Petroleum Corp., 7.00%, 04/01/2015		505,000		277,750
El Paso Corp.:
7.42%, 02/15/2037		1,670,000		1,423,164
12.00%, 12/12/2013		445,000		507,300
Encore Acquisition Co., 6.00%, 07/15/2015		1,590,000		1,391,250
Exco Resources, Inc., 7.25%, 01/15/2011		2,970,000		2,925,450
Ferrellgas Partners, LP, 8.75%, 06/15/2012		450,000		441,563
Forest Oil Corp.:
7.25%, 06/15/2019		1,130,000		1,080,562
8.50%, 02/15/2014 144A		660,000		673,200
Frontier Oil Corp., 6.625%, 10/01/2011		885,000		893,850
Holly Corp., 9.875%, 06/15/2017 144A		605,000		601,975
Newfield Exploration Co.:
6.625%, 04/15/2016		240,000		232,800
7.125%, 05/15/2018		75,000		73,313
Nustar Logistics, LP, 7.65%, 04/15/2018		2,375,000		2,408,392
Peabody Energy Corp.:
5.875%, 04/15/2016		2,800,000		2,618,000
7.875%, 11/01/2026		1,660,000		1,535,500
Penn Virginia Corp., 10.375%, 06/15/2016		355,000		380,294
Petrohawk Energy Corp.:
7.875%, 06/01/2015		1,810,000		1,764,750
10.50%, 08/01/2014 144A		495,000		532,125
Plains Exploration & Production Co., 7.625%, 06/01/2018		2,615,000		2,543,087
Range Resources Corp., 8.00%, 05/15/2019		170,000		173,825
Sabine Pass LNG, LP:
7.25%, 11/30/2013		1,990,000		1,713,887
7.50%, 11/30/2016		2,385,000		1,934,831
SandRidge Energy, Inc., 8.00%, 06/01/2018 144A		245,000		224,175
Southwestern Energy Co., 7.50%, 02/01/2018 144A		225,000		226,688
Stallion Oilfield Services, Ltd., 9.75%, 02/01/2015 144A		865,000		315,725
Tesoro Corp.:
6.25%, 11/01/2012		505,000		489,850
6.50%, 06/01/2017		565,000		497,200
9.75%, 06/01/2019		670,000		678,375
Valero Energy Corp., 6.875%, 07/15/2012		1,070,000		1,103,440

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
ENERGY continued
Oil, Gas & Consumable Fuels continued
Williams Cos.:
7.50%, 01/15/2031	$	2,080,000	$	2,085,516
8.125%, 03/15/2012		3,560,000		3,822,301
8.75%, 01/15/2020 144A		685,000		775,412


				44,533,837


FINANCIALS 10.5%
Capital Markets 0.5%
E*TRADE Financial Corp.:
7.375%, 09/15/2013		450,000		381,938
12.50%, 11/30/2017 144A		1,264,000		1,572,875
12.50%, 11/30/2017		1,213,000		1,423,287


				3,378,100


Consumer Finance 7.3%
Bunge Limited Finance Co., 8.50%, 06/15/2019		365,000		404,529
Calpine Construction Finance Corp., 8.00%, 06/01/2016 144A		115,000		116,150
CCH II Capital Corp., 10.25%, 09/15/2010 •		3,175,000		3,413,125
Daimler Financial Services AG, 4.875%, 06/15/2010		1,000,000		1,010,433
Discover Financial Services, 10.25%, 07/15/2019		785,000		827,796
Ford Motor Credit Co., LLC:
5.70%, 01/15/2010		5,205,000		5,125,848
7.375%, 10/28/2009		1,000,000		998,226
7.50%, 08/01/2012		505,000		466,395
9.75%, 09/15/2010		2,213,000		2,203,227
GMAC, LLC:
6.75%, 12/01/2014 144A		1,298,000		1,129,260
6.875%, 09/15/2011 144A		1,839,000		1,714,867
6.875%, 08/28/2012 144A		1,844,000		1,687,260
7.00%, 02/01/2012 144A		262,000		239,730
7.50%, 12/31/2013 144A		2,715,000		2,334,900
7.75%, 01/19/2010 144A		2,560,000		2,547,200
8.00%, 12/31/2018 144A		2,822,000		2,172,940
8.00%, 11/01/2031		450,000		343,105
8.00%, 11/01/2031 144A		2,259,000		1,750,725
HSBC Finance Corp., 5.00%, 06/30/2015		2,400,000		2,293,286
International Lease Finance Corp.:
4.375%, 11/01/2009		615,000		598,953
4.55%, 10/15/2009		510,000		500,296
4.75%, 01/13/2012		620,000		442,623
4.875%, 09/01/2010		1,205,000		1,031,384
5.125%, 11/01/2010		35,000		29,253
JBS USA Finance, Inc., 11.625%, 05/01/2014 144A		2,800,000		2,849,000
Nielsen Financial LLC, Co., 11.50%, 05/01/2016		10,000		10,525
NiSource Finance Corp., 10.75%, 03/15/2016		2,885,000		3,364,406
Pinnacle Foods Finance, LLC, 10.625%, 04/01/2017		450,000		409,500
Sprint Capital Corp.:
6.875%, 11/15/2028		4,875,000		3,705,000
7.625%, 01/30/2011		1,115,000		1,128,938


				44,848,880


Diversified Financial Services 1.4%
CapitalSource, Inc., 12.75%, 07/15/2014 144A		1,350,000		1,338,188
Citigroup, Inc., 8.50%, 05/22/2019		435,000		463,925

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
FINANCIALS continued
Diversified Financial Services continued
Leucadia National Corp.:
7.00%, 08/15/2013	$	1,250,000	$	1,203,125
7.125%, 03/15/2017		1,785,000		1,588,650
8.125%, 09/15/2015		3,350,000		3,241,125
WEA Finance, LLC, 7.50%, 06/02/2014 144A		685,000		696,154


				8,531,167


Real Estate Investment Trusts (REITs) 1.0%
Host Marriott Corp.:
7.125%, 11/01/2013		810,000		789,750
9.00%, 05/15/2017 144A		400,000		405,000
Omega Healthcare Investors, Inc.:
7.00%, 04/01/2014		965,000		914,338
7.00%, 01/15/2016		500,000		463,750
Simon Property Group, Inc., 10.35%, 04/01/2019		375,000		449,285
Ventas, Inc.:
6.75%, 04/01/2017		1,688,000		1,595,160
7.125%, 06/01/2015		1,139,000		1,124,762
9.00%, 05/01/2012		555,000		585,525


				6,327,570


Thrifts & Mortgage Finance 0.3%
Residential Capital, LLC, 8.50%, 05/15/2010		1,820,000		1,610,700


HEALTH CARE 2.9%
Health Care Equipment & Supplies 0.2%
Biomet, Inc.:
10.375%, 10/15/2017		440,000		473,000
11.625%, 10/15/2017		655,000		713,950


				1,186,950


Health Care Providers & Services 2.4%
Apria Healthcare Group, 11.25%, 11/01/2014 144A		1,040,000		1,063,400
Cigna Corp., 8.50%, 05/01/2019		660,000		704,107
HCA, Inc.:
6.30%, 10/01/2012		440,000		415,800
7.875%, 02/01/2011		820,000		824,100
7.875%, 02/15/2020 144A #		1,525,000		1,500,219
8.50%, 04/15/2019 144A		2,455,000		2,528,650
8.75%, 09/01/2010		1,101,000		1,117,515
9.25%, 11/15/2016		2,750,000		2,873,750
9.625%, 11/15/2016		1,331,000		1,390,895
Omnicare, Inc., 6.125%, 06/01/2013		1,425,000		1,339,500
Prospect Medical Holdings, Inc., 12.75%, 07/15/2014 144A		685,000		650,750
Symbion, Inc., 11.00%, 08/23/2015		342,212		239,548


				14,648,234


Life Sciences Tools & Services 0.2%
Bio-Rad Laboratories, Inc.:
7.50%, 08/15/2013		525,000		535,500
8.00%, 09/15/2016 144A		490,000		502,250


				1,037,750


Pharmaceuticals 0.1%
Pfizer, Inc., 5.35%, 03/15/2015		900,000		997,300

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
INDUSTRIALS 4.8%
Aerospace & Defense 2.3%
Alliant Techsystems, Inc., 6.75%, 04/01/2016	$	1,545,000	$	1,475,475
Hexcel Corp., 6.75%, 02/01/2015		805,000		762,738
L-3 Communications Holdings, Inc.:
5.875%, 01/15/2015		8,945,000		8,520,112
6.375%, 10/15/2015		1,474,000		1,422,410
Vought Aircraft Industries, Inc., 8.00%, 07/15/2011		2,165,000		2,056,750


				14,237,485


Commercial Services & Supplies 1.5%
Allied Waste North America, Inc., 6.875%, 06/01/2017		320,000		328,493
Browning-Ferris Industries, Inc., 9.25%, 05/01/2021		2,725,000		2,993,085
Corrections Corporation of America:
6.25%, 03/15/2013		1,125,000		1,108,125
6.75%, 01/31/2014		325,000		320,938
7.75%, 06/01/2017		1,220,000		1,229,150
DigitalGlobe, Inc., 10.50%, 05/01/2014 144A		245,000		259,088
Geo Group, Inc., 8.25%, 07/15/2013		560,000		554,400
Interface, Inc., 11.375%, 11/01/2013 144A		250,000		264,375
Iron Mountain, Inc.:
6.625%, 01/01/2016		535,000		496,212
7.75%, 01/15/2015		445,000		440,550
Mobile Mini, Inc., 6.875%, 05/01/2015		1,645,000		1,414,700


				9,409,116


Machinery 0.6%
Commercial Vehicle Group, Inc., 8.00%, 07/01/2013		6,605,000		3,797,875


Road & Rail 0.2%
Kansas City Southern:
8.00%, 06/01/2015		555,000		541,125
13.00%, 12/15/2013		445,000		500,625


				1,041,750


Trading Companies & Distributors 0.2%
United Rentals North America, Inc.:
6.50%, 02/15/2012		1,105,000		1,071,850
10.875%, 06/15/2016 144A		245,000		246,225


				1,318,075


INFORMATION TECHNOLOGY 2.6%
Communications Equipment 0.2%
EchoStar Corp.:
6.625%, 10/01/2014		635,000		611,187
7.75%, 05/31/2015		395,000		397,963


				1,009,150


Electronic Equipment, Instruments & Components 1.6%
Anixter International, Inc., 10.00%, 03/15/2014		1,530,000		1,591,200
Da-Lite Screen Co., Inc., 9.50%, 05/15/2011		2,120,000		1,876,200
Jabil Circuit, Inc.:
5.875%, 07/15/2010		345,000		356,213
8.25%, 03/15/2018		5,495,000		5,412,575
Sanmina-SCI Corp., 8.125%, 03/01/2016		1,000,000		890,000


				10,126,188


Internet Software & Services 0.2%
Terremark Worldwide, Inc., 12.00%, 06/15/2017 144A		1,560,000		1,583,400

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
INFORMATION TECHNOLOGY continued
IT Services 0.1%
iPayment, Inc., 9.75%, 05/15/2014	$	555,000	$	327,450


Semiconductors & Semiconductor Equipment 0.5%
National Semiconductor Corp., 6.60%, 06/15/2017		425,000		387,690
Spansion, Inc.:
11.25%, 01/15/2016 144A •		440,000		294,800
FRN, 3.79%, 06/01/2013 144A •		2,605,000		2,201,225


				2,883,715


MATERIALS 4.9%
Chemicals 1.3%
Dow Chemical Co., 8.55%, 05/15/2019		1,095,000		1,203,341
Koppers Holdings, Inc., Sr. Disc. Note, Step Bond, 0.00%, 11/15/2014 †		2,805,000		2,608,650
MacDermid, Inc., 9.50%, 04/15/2017 144A		338,000		261,950
Momentive Performance Materials, Inc.:
9.75%, 12/01/2014		55,000		36,025
10.125%, 12/01/2014 @		29,504		17,702
11.50%, 12/01/2016		325,000		164,125
Mosaic Co.:
7.30%, 01/15/2028		2,245,000		2,026,113
7.625%, 12/01/2016 144A		1,685,000		1,752,400
Nalco Holding Co., 8.25%, 05/15/2017 144A		55,000		57,475
Tronox Worldwide, LLC, 9.50%, 12/01/2012 •		1,270,000		215,900


				8,343,681


Construction Materials 0.9%
CPG International, Inc.:
10.50%, 07/01/2013		1,730,000		1,236,950
FRN, 7.87%, 07/01/2012		745,000		525,225
CRH America, Inc.:
5.625%, 09/30/2011		455,000		451,251
8.125%, 07/15/2018		1,965,000		1,979,704
Texas Industries, Inc., 7.25%, 07/15/2013 144A		1,297,000		1,199,725


				5,392,855


Containers & Packaging 0.9%
Exopack Holding Corp., 11.25%, 02/01/2014		2,865,000		2,564,175
Graham Packaging Co., 8.50%, 10/15/2012		1,540,000		1,536,150
Graphic Packaging International, Inc.:
8.50%, 08/15/2011		407,000		410,053
9.50%, 06/15/2017 144A		235,000		235,000
Greif, Inc., 7.75%, 08/01/2019 144A		495,000		493,762
Silgan Holdings, Inc., 7.25%, 08/15/2016 144A		440,000		442,200


				5,681,340


Metals & Mining 0.7%
AK Steel Corp., 7.75%, 06/15/2012		440,000		442,200
Freeport-McMoRan Copper & Gold, Inc.:
8.25%, 04/01/2015		2,100,000		2,223,261
8.375%, 04/01/2017		1,200,000		1,273,804
Indalex Holdings Corp., 11.50%, 02/01/2014 •		3,170,000		174,350


				4,113,615


Paper & Forest Products 1.1%
Clearwater Paper Corp., 10.625%, 06/15/2016 144A		1,165,000		1,234,900
Domtar Corp., 10.75%, 06/01/2017		15,000		15,300
Georgia Pacific Corp.:
8.125%, 05/15/2011		800,000		824,000
8.25%, 05/01/2016 144A		60,000		62,400
8.875%, 05/15/2031		230,000		219,650

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
MATERIALS continued
Paper & Forest Products continued
International Paper Co., 9.375%, 05/15/2019	$	3,315,000	$	3,884,345
Verso Paper Holdings, LLC, 11.375%, 08/01/2016		1,063,000		366,735


				6,607,330


TELECOMMUNICATION SERVICES 3.5%
Diversified Telecommunication Services 1.6%
Citizens Communications Co.:
7.875%, 01/15/2027		1,720,000		1,509,300
9.25%, 05/15/2011		1,570,000		1,626,912
FairPoint Communications, Inc., 13.125%, 04/01/2018		1,190,000		315,350
Frontier Communications Corp., 8.25%, 05/01/2014		200,000		203,500
Qwest Corp.:
7.50%, 06/15/2023		705,000		599,250
7.875%, 09/01/2011		505,000		517,625
8.875%, 03/15/2012		3,810,000		3,971,925
SBA Telecommunications, Inc.:
8.00%, 08/15/2016 144A		655,000		664,825
8.25%, 08/15/2019 144A		185,000		188,700
West Corp., 9.50%, 10/15/2014		65,000		62,075


				9,659,462


Wireless Telecommunication Services 1.9%
Centennial Communications Corp., 8.125%, 02/01/2014		3,505,000		3,531,287
Cricket Communications, Inc.:
7.75%, 05/15/2016 144A		1,120,000		1,120,000
9.375%, 11/01/2014		115,000		117,300
MetroPCS Communications, Inc., 9.25%, 11/01/2014		2,110,000		2,194,400
Sprint Nextel Corp.:
6.90%, 05/01/2019		270,000		241,313
Ser. D, 7.375%, 08/01/2015		2,120,000		1,913,300
Ser. E, 6.875%, 10/31/2013		2,870,000		2,633,225
Ser. F, 5.95%, 03/15/2014		240,000		208,800


				11,959,625


UTILITIES 6.7%
Electric Utilities 4.2%
Allegheny Energy Supply Co., 8.25%, 04/15/2012 144A		3,105,000		3,321,915
Aquila, Inc., Step Bond, 11.875%, 07/01/2012 ††		7,595,000		8,549,691
CMS Energy Corp., 8.50%, 04/15/2011		355,000		367,485
Edison Mission Energy, 7.00%, 05/15/2017		60,000		48,075
Energy Future Holdings Corp., 11.25%, 11/01/2017		1,725,300		1,285,349
Mirant Mid-Atlantic, LLC, Ser. C, 10.06%, 12/30/2028		3,185,189		3,153,337
Mirant North America, LLC, 7.375%, 12/31/2013		1,010,000		1,002,425
NRG Energy, Inc.:
7.25%, 02/01/2014		510,000		502,350
7.375%, 02/01/2016		2,280,000		2,211,600
8.50%, 06/15/2019		1,405,000		1,389,194
Orion Power Holdings, Inc., 12.00%, 05/01/2010		3,735,000		3,884,400
Public Service Company of New Mexico, 7.95%, 04/01/2015		130,000		128,558


				25,844,379


Gas Utilities 0.5%
EQT Corp., 8.125%, 06/01/2019		1,065,000		1,203,434
National Fuel Gas Co., 8.75%, 05/01/2019		2,000,000		2,301,310


				3,504,744

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
UTILITIES continued
Independent Power Producers & Energy Traders 1.4%
AES Corp.:
8.00%, 06/01/2020	$	50,000	$	48,000
8.875%, 02/15/2011		1,145,000		1,176,488
Dynegy Holdings, Inc.:
6.875%, 04/01/2011		1,035,000		1,024,650
7.125%, 05/15/2018		680,000		470,900
Reliant Energy, Inc.:
6.75%, 12/15/2014		3,872,000		3,842,960
7.625%, 06/15/2014		1,880,000		1,757,800
7.875%, 06/15/2017		290,000		268,975


				8,589,773


Multi-Utilities 0.6%
Ameren Corp., 8.875%, 05/15/2014		490,000		524,959
CMS Energy Corp., 8.75%, 06/15/2019		245,000		258,537
PNM Resources, Inc., 9.25%, 05/15/2015		555,000		541,125
Texas-New Mexico Power Co., 9.50%, 04/01/2019 144A		2,110,000		2,439,042


				3,763,663


Total Corporate Bonds (cost $340,591,402)				340,479,190


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 14.4%
CONSUMER DISCRETIONARY 0.6%
Media 0.1%
Central European Media Enterprises, Ltd.:
8.25%, 05/15/2012 EUR		500,000		680,581
Class A, FRN, 5.93%, 05/15/2014 EUR		250,000		265,462


				946,043


Multiline Retail 0.3%
Marks & Spencer Group plc, 6.375%, 11/07/2011 GBP		1,000,000		1,737,846


Textiles, Apparel & Luxury Goods 0.2%
Levi Strauss & Co., 8.625%, 04/01/2013 EUR		750,000		1,031,560


CONSUMER STAPLES 2.1%
Beverages 0.2%
Canandaigua Brands, Inc., 8.50%, 11/15/2009 GBP		750,000		1,277,895


Food & Staples Retailing 0.5%
Koninklijke Ahold NV, 5.875%, 03/14/2012 EUR		1,000,000		1,453,806
McDonald’s Corp., 4.25%, 06/10/2016 EUR		700,000		1,011,316
Tesco plc, 3.875%, 03/24/2011 EUR		620,000		909,572


				3,374,694


Tobacco 1.4%
British American Tobacco plc, 5.50%, 09/15/2016 GBP		2,000,000		3,374,897
Imperial Tobacco Group plc, 8.375%, 02/17/2016 EUR		3,000,000		5,028,559


				8,403,456


FINANCIALS 7.3%
Capital Markets 0.1%
Morgan Stanley, 5.375%, 11/14/2013 GBP		560,000		896,220


Commercial Banks 3.8%
Eurofima, 6.25%, 12/28/2018 AUD		2,450,000		1,978,375
European Investment Bank:
3.125%, 04/15/2014 EUR		1,900,000		2,755,536
4.25%, 10/15/2014 EUR		3,000,000		4,560,827
5.75%, 09/15/2009 AUD		1,320,000		1,106,802
6.125%, 01/23/2017 AUD		8,530,000		6,996,469

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued
FINANCIALS continued
Commercial Banks continued
Instituto de Credito Oficial, 4.375%, 05/23/2012 EUR		3,800,000	$	5,713,976
Rabobank Australia, Ltd., 6.25%, 11/22/2011 NZD		725,000		494,687


				23,606,672


Consumer Finance 2.1%
ABB International Finance, Ltd., 6.50%, 11/30/2011 EUR		2,660,000		4,023,752
HSBC Finance Corp., 7.00%, 03/27/2012 GBP		370,000		657,892
ISS Financing plc, 11.00%, 06/15/2014 EUR		450,000		649,658
Total Capital SA, 5.50%, 01/29/2013 GBP		1,000,000		1,777,067
Toyota Motor Credit Corp., 8.50%, 12/21/2010 NZD		5,460,000		3,788,654
Virgin Media Finance plc, 8.75%, 04/15/2014 EUR		940,000		1,346,480
Wind Acquisition Finance SpA, 9.75%, 12/01/2015 EUR		300,000		431,866


				12,675,369


Diversified Financial Services 0.8%
Dubai Holding Commercial Operations Group, LLC, 6.00%, 02/01/2017 GBP		1,000,000		1,017,052
FMG Finance Property, Ltd., 9.75%, 09/01/2013 EUR		2,115,000		2,878,855
General Electric Capital Corp., 7.625%, 12/10/2014 NZD		2,000,000		1,333,520


				5,229,427


Insurance 0.5%
AIG SunAmerica, Inc., 5.625%, 02/01/2012 GBP		2,000,000		2,770,275


INDUSTRIALS 0.8%
Aerospace & Defense 0.3%
Bombardier, Inc., 7.25%, 11/15/2016 EUR		1,430,000		1,854,742


Commercial Services & Supplies 0.2%
Iron Mountain, Inc., 6.75%, 10/15/2018 EUR		600,000		799,593


Machinery 0.3%
Harsco Corp., 7.25%, 10/27/2010 GBP		1,000,000		1,726,651
Savcio Holdings, Ltd., 8.00%, 02/15/2013 EUR		250,000		283,278


				2,009,929


MATERIALS 0.8%
Chemicals 0.4%
Huntsman, LLC, 6.875%, 11/15/2013 EUR		710,000		814,630
Nalco Holdings Co., 7.75%, 11/15/2011 EUR		500,000		719,776
Rockwood Specialties Group, Inc., 7.625%, 11/15/2014 EUR		800,000		1,123,136


				2,657,542


Containers & Packaging 0.2%
Owens-Illinois European Group BV, 6.875%, 03/31/2017 EUR		900,000		1,192,975


Metals & Mining 0.2%
New World Resources NV, 7.375%, 05/15/2015 EUR		1,000,000		1,072,538


TELECOMMUNICATION SERVICES 1.7%
Diversified Telecommunication Services 1.7%
Deutsche Telekom AG, 6.25%, 12/09/2010 GBP		1,700,000		2,981,828
France Telecom:
4.75%, 02/21/2017 EUR		2,000,000		3,036,509
7.25%, 01/28/2013 EUR		1,850,000		2,996,074
Nordic Telephone Co., 8.25%, 05/01/2016 EUR		900,000		1,321,252


				10,335,663

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


FOREIGN BONDS – CORPORATE (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) continued
UTILITIES 1.1%
Multi-Utilities 1.1%
National Grid plc, 4.375%, 03/10/2020 EUR		3,000,000	$	3,961,380
Veolia Environnement SA, 4.00%, 02/12/2016 EUR		2,000,000		2,807,218


				6,768,598


Total Foreign Bonds – Corporate (Principal Amount Denominated in Currency Indicated) (cost $88,188,437)				88,641,037


FOREIGN BONDS – GOVERNMENT (PRINCIPAL AMOUNT DENOMINATED IN CURRENCY INDICATED) 14.7%
Caisse d’Amortissement de la Dette Sociale, 4.125%, 04/25/2017 EUR		4,880,000		7,357,535
Canada, 4.25%, 06/01/2018 CAD		9,800,000		9,721,491
Denmark:
4.00%, 11/15/2015 DKK		24,500,000		4,921,425
4.00%, 11/15/2017 DKK		24,750,000		4,936,087
France:
2.25%, 07/25/2020 EUR		7,368,881		11,109,213
4.25%, 04/25/2019 EUR		8,510,000		12,875,237
Korea:
5.25%, 09/10/2015 KRW		2,850,000,000		2,364,356
5.25%, 03/10/2027 KRW		3,865,000,000		3,062,262
Malaysia, 3.83%, 09/28/2011 MYR		18,000,000		5,246,628
Mexico, 9.50%, 12/18/2014 MXN		67,325,000		5,625,555
Netherlands, 4.00%, 07/15/2018 EUR		6,230,000		9,201,501
New Zealand, 6.00%, 12/15/2017 NZD		6,610,000		4,449,842
Norway, 4.25%, 05/19/2017 NOK		59,780,000		10,096,909


Total Foreign Bonds – Government (Principal Amount Denominated in Currency Indicated) (cost $87,399,967)				90,968,041


U.S. TREASURY OBLIGATIONS 2.4%
U.S. Treasury Bond, 3.50%, 02/15/2039	$	10,250,000		8,861,463
U.S. Treasury Note, 2.75%, 02/15/2019		6,020,000		5,657,374


Total U.S. Treasury Obligations (cost $16,317,394)				14,518,837


WHOLE LOAN MORTGAGE-BACKED PASS THROUGH SECURITIES 2.1%
FIXED-RATE 0.9%
Bear Stearns Securities Trust, Ser. 2007, Class AM, 5.92%, 06/11/2050		3,990,000		2,435,190
Countrywide Alternative Loan Trust, Inc., Ser. 2005-50CB, Class 1A1, 5.50%, 11/25/2035		882,467		598,075
Greenwich Capital Comml. Funding Corp., Ser. 2007-GG11, Class AM, 5.87%, 08/10/2017		3,575,000		2,192,340


				5,225,605


FLOATING-RATE 1.2%
American Home Mtge. Assets:
Ser. 2006-2, Class 1A1, 2.17%, 09/25/2046		3,830,566		1,817,706
Ser. 2007-1, Class A1, 1.91%, 02/25/2047		783,685		315,837
Banc of America Comml. Mtge., Inc., Ser. 2007-04, Class A4, 5.74%, 02/10/2051		3,654,000		3,126,591
GSR Mtge. Loan Trust, Ser. 2007-AR1, Class 2A1, 5.98%, 03/25/2037		1,707,541		1,042,206
Lehman XS Trust, Ser. 2006-18N, Class A5A, 0.46%, 12/25/2036		4,135,000		814,057
Washington Mutual, Inc. Mtge. Pass-Through Cert., Ser. 2006-AR09, Class 2A, 2.05%, 11/25/2046		1,308,471		515,824


				7,632,221


Total Whole Loan Mortgage-Backed Pass Through Securities (cost $15,410,786)				12,857,826


YANKEE OBLIGATIONS – CORPORATE 9.4%
CONSUMER DISCRETIONARY 0.4%
Media 0.4%
UPC Holdings BV, 9.875%, 04/15/2018 144A		20,000		20,000
Videotron, Ltd.:
9.125%, 04/15/2018 144A		50,000		52,375
9.125%, 04/15/2018		85,000		88,613
Virgin Media, Inc., 9.50%, 08/15/2016		1,935,000		1,993,050


				2,154,038

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


YANKEE OBLIGATIONS – CORPORATE continued
CONSUMER STAPLES 0.1%
Food & Staples Retailing 0.1%
Tesco plc, 5.50%, 11/15/2017	$	500,000	$	514,607


ENERGY 1.5%
Oil, Gas & Consumable Fuels 1.5%
Connacher Oil & Gas, Ltd.:
10.25%, 12/15/2015 144A		2,390,000		1,529,600
11.75%, 07/15/2014 144A		625,000		629,687
Griffin Coal Mining Co., Ltd., 9.50%, 12/01/2016 144A		8,640,000		4,449,600
OPTI Canada, Inc.:
7.875%, 12/15/2014		3,435,000		2,267,100
8.25%, 12/15/2014		415,000		275,975


				9,151,962


FINANCIALS 1.5%
Commercial Banks 0.3%
KfW Bankengruppe, 4.875%, 06/17/2019		2,000,000		2,133,688


Consumer Finance 0.1%
Petroplus Finance, Ltd., 6.75%, 05/01/2014 144A		690,000		617,550
Virgin Media Finance plc, 9.125%, 08/15/2016		100,000		101,500


				719,050


Diversified Financial Services 1.1%
FMG Finance Property, Ltd.:
10.625%, 09/01/2016 144A		3,525,000		3,657,188
FRN, 4.67%, 09/01/2011 144A		545,000		562,031
Preferred Term Securities XII, Ltd., FRN, 2.23%, 12/24/2033 + •		635,000		6
Ship Finance International, Ltd., 8.50%, 12/15/2013		2,525,000		2,373,500


				6,592,725


INDUSTRIALS 1.2%
Machinery 0.1%
Ingersoll-Rand Co., Ltd., 9.50%, 04/15/2014		390,000		453,093


Road & Rail 1.1%
Kansas City Southern de Mexico:
7.375%, 06/01/2014		4,875,000		4,314,375
9.375%, 05/01/2012		2,215,000		2,192,850
12.50%, 04/01/2016 144A		580,000		620,985


				7,128,210


MATERIALS 3.1%
Metals & Mining 2.4%
ArcelorMittal SA, 9.85%, 06/01/2019		1,560,000		1,808,240
Evraz Group SA:
8.875%, 04/24/2013		480,000		421,200
8.875%, 04/24/2013 144A		1,200,000		1,050,000
9.50%, 04/24/2018 144A		1,300,000		1,105,000
Novelis, Inc., 7.25%, 02/15/2015		3,340,000		2,738,800
Rio Tinto, Ltd., 9.00%, 05/01/2019		1,095,000		1,290,417
Teck Resources, Ltd.:
9.75%, 05/15/2014 144A		1,455,000		1,625,962
10.75%, 05/15/2019 144A		2,040,000		2,384,250
Vedanta Resources plc, 9.50%, 07/18/2018 144A		2,790,000		2,559,825


				14,983,694


Paper & Forest Products 0.7%
Cascades, Inc., 7.25%, 02/15/2013		940,000		862,450
PE Paper Escrow GmbH, 12.00%, 08/01/2014 144A		785,000		749,191

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


YANKEE OBLIGATIONS – CORPORATE continued
MATERIALS continued
Paper & Forest Products continued
Sappi, Ltd.:
6.75%, 06/15/2012 144A	$	1,190,000	$	962,097
7.50%, 06/15/2032 144A		3,340,000		1,742,879


				4,316,617


TELECOMMUNICATION SERVICES 1.4%
Wireless Telecommunication Services 1.4%
Inmarsat, plc, Sr. Disc. Note, Step Bond, 10.375%, 11/15/2012 †		1,185,000		1,244,250
Intelsat, Ltd.:
8.50%, 01/15/2013		2,495,000		2,532,425
8.875%, 01/15/2015 144A		105,000		106,575
8.875%, 01/15/2015		234,000		237,510
11.25%, 06/15/2016		240,000		256,800
Millicom International Cellular SA, 10.00%, 12/01/2013		260,000		271,700
Telesat Canada, Inc., 11.00%, 11/01/2015 144A		1,500,000		1,560,000
Vimpel Communications:
8.375%, 04/30/2013 144A		45,000		43,762
9.125%, 04/30/2018 144A		2,920,000		2,657,200


				8,910,222


UTILITIES 0.2%
Electric Utilities 0.2%
E.ON AG, 5.80%, 04/30/2018		1,000,000		1,081,530
InterGen NV, 9.00%, 06/30/2017 144A		185,000		183,150


				1,264,680


Total Yankee Obligations – Corporate (cost $58,531,181)				58,322,586






		Shares		Value


COMMON STOCKS 0.0%
ENERGY 0.0%
Oil, Gas & Consumable Fuels 0.0%
Newfield Exploration Co. * (cost $34,839)		1,828		71,895






		Principal Amount		Value


CONVERTIBLE DEBENTURES 0.2%
CONSUMER DISCRETIONARY 0.1%
Media 0.1%
Sinclair Broadcast Group, Inc., 3.00%, 05/15/2027	$	245,000		202,738


INFORMATION TECHNOLOGY 0.1%
Communications Equipment 0.1%
Lucent Technologies, Inc., 2.875%, 06/15/2025		990,000		773,437


Total Convertible Debentures (cost $619,793)				976,175


LOANS 4.8%
CONSUMER DISCRETIONARY 1.1%
Abitibi Consolidated, Inc., FRN, 11.50%, 03/30/2010		776,355		636,611
Fontainebleau Resorts, LLC, FRN:
6.00%, 06/06/2014 •		287,311		92,138
6.25%, 06/06/2014 •		574,613		184,273
Ford Motor Co., FRN, 3.28%-3.51%, 12/15/2013		1,284,054		1,095,837

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Principal Amount		Value


LOANS continued
CONSUMER DISCRETIONARY continued
Idearc, Inc., FRN:
5.75%, 11/13/2013 •	$	232,986	$	106,524
6.25%, 11/17/2014 •		795,563		363,723
Metaldyne Corp., FRN:
4.19%-8.75%, 01/11/2012 • <		1,217,313		164,337
6.19%-8.00%, 01/11/2014 • <		8,328,314		1,124,406
MGM Mirage, N/A, 10/03/2011 <		465,000		373,288
Newsday, LLC, 9.75%, 07/15/2013		1,760,000		1,781,683
Tower Automotive Holdings, FRN, 4.56%-4.94%, 07/31/2013		394,990		156,025
Tropicana Entertainment, LLC, FRN, 6.50%, 01/03/2012		1,970,000		581,170


				6,660,015


CONSUMER STAPLES 0.5%
Merisant Co., FRN, 3.79%, 01/11/2010 <		3,678,264		2,997,822


ENERGY 0.6%
Alon Krotz Springs, Inc., FRN:
12.75%, 07/03/2014 <		590,484		479,709
13.75%, 07/03/2014 <		259,395		210,893
Saint Acquisition Corp., FRN, 3.56%, 06/05/2014		537,258		409,848
Semgroup Energy Partners, FRN, 8.25%, 07/20/2012 <		2,925,000		2,702,291


				3,802,741


FINANCIALS 0.2%
Realogy Corp., FRN, 3.31%, 09/01/2014		1,328,807		1,022,384


HEALTH CARE 0.1%
HCA, Inc., FRN, 2.35%, 11/18/2012		890,352		847,722


INDUSTRIALS 0.4%
Clarke American Corp., FRN, 2.76-3.10%, 02/28/2014		1,400,061		1,122,079
Neff Corp., FRN:
3.80%, 11/30/2014		4,910,000		932,900
4.13%, 05/31/2013 <		613,750		405,529


				2,460,508


MATERIALS 1.6%
LyondellBasell, FRN:
3.77%, 12/20/2013 <		331,441		143,199
3.79%, 12/20/2013 <		118,737		51,300
4.04%, 12/22/2014 <		272,706		117,956
5.81%-6.56%, 12/15/2009 <		5,874,774		4,978,930
7.00%, 12/20/2013 <		1,183,347		511,845
13.00%, 12/15/2009 <		4,183,581		4,336,031


				10,139,261


TELECOMMUNICATION SERVICES 0.3%
FairPoint Communications, Inc., FRN, 5.00%, 03/08/2015		2,075,398		1,602,975


Total Loans (cost $37,151,462)				29,533,428






		Shares		Value


CLOSED END MUTUAL FUND SHARES 0.4%
Dreyfus High Yield Strategies Fund, Inc.		216,382		720,552
Eaton Vance Limited Duration Income Trust		53,764		738,717
ING Prime Rate Trust		12,336		55,759
LMP Corporate Loan Fund, Inc.		16,391		146,863
New America High Income Fund, Inc.		99,690		792,536


Total Closed End Mutual Fund Shares (cost $1,623,072)				2,454,427

EVERGREEN MULTI-SECTOR INCOME FUND SCHEDULE OF INVESTMENTS continued



July 31, 2009 (unaudited)
	Shares		Value


SHORT-TERM INVESTMENTS 2.5%
MUTUAL FUND SHARES 2.5%
Evergreen Institutional Money Market Fund, Class I, 0.22% q ø µ ##		15,359,894	$	15,359,894






		Principal Amount		Value


U.S. TREASURY OBLIGATION 0.0%
U.S. Treasury Bill, 0.16%, 09/24/2009 ƒ ß	$	150,000		149,965


Total Short-Term Investments (cost $15,509,833)				15,509,859


Total Investments (cost $846,968,066) 136.6%				842,676,436
Other Assets and Liabilities and Preferred Shares (36.6%)				(225,650,367	)


Net Assets Applicable to Common Shareholders 100.0%			$	617,026,069

µ	All or a portion of this security has been segregated as collateral for reverse repurchase agreements.

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.

#	When-issued or delayed delivery security

††	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.

+	Security is deemed illiquid.

*	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.

##	All or a portion of this security has been segregated for when-issued, delayed delivery securities and/or unfunded loans.

ƒ	All or a portion of this security was pledged to cover initial margin requirements for open futures contracts.

ß	Rate shown represents the yield to maturity at date of purchase.

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

MXN	Mexican Peso

MYR	Malaysian Ringgit

NOK	Norwegian Krone

NZD	New Zealand Dollar

At July 31, 2009, the Fund had short futures contracts outstanding as follows:

Expiration	Contracts	Initial Contract Amount	Value at July 31, 2009	Unrealized Gain (Loss)


September 2009	100 U.S. Treasury Note 2 Year Futures	$21,660,538	$21,657,813	$2,725

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

At July 31, 2009, 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, 2009		In Exchange for U.S. $		Unrealized Gain (Loss)


08/07/2009	3,525,000,000	JPY	$	37,253,331	$	35,709,584	$	1,543,747
08/26/2009	792,500,000	JPY		8,376,845		8,377,378		(533	)

Exchange Date	Contracts to Receive		U.S. Value at July 31, 2009			In Exchange for	U.S. Value at July 31, 2009			Unrealized Gain (Loss)


08/07/2009	3,873,893	EUR	$	5,521,495		513,500,000 JPY	$	5,426,833		$	94,662
08/07/2009	513,500,000	JPY		5,426,833		3,893,868 EUR		5,549,966			(123,133	)
08/13/2009	195,000,000	JPY		2,060,935		1,329,243 GBP		2,220,388			(159,453	)
08/26/2009	17,844,070	EUR		25,434,408		2,340,000,000 JPY		24,734,156			700,252
09/25/2009	911,725,625	JPY		9,639,910		12,275,000 AUD		10,228,073			(588,163	)
10/02/2009	3,936,036	EUR		5,610,387		6,375,000 CAD		5,919,289			(308,902	)
10/06/2009	747,647,030	JPY		7,905,930		4,735,000 GBP		7,908,570			(2,640	)
10/13/2009	755,000,000	JPY		7,984,167		12,872,975 NZD		8,486,588			(502,421	)

Forward Foreign Currency Exchange Contracts to Sell:

Exchange Date	Contracts to Deliver		U.S. Value at July 31, 2009		In Exchange for U.S. $		Unrealized Gain (Loss)


08/06/2009	194,146	EUR	$	276,717	$	243,653	$	(33,064	)
08/06/2009	896,685	EUR		1,278,051		1,154,931		(123,120	)
08/06/2009	475,000	EUR		677,020		618,454		(58,566	)
08/20/2009	310,000	EUR		441,859		439,747		(2,112	)
08/20/2009	1,310,000	EUR		1,867,210		1,765,029		(102,181	)
09/02/2009	4,915,000	EUR		7,005,806		6,909,507		(96,299	)
09/16/2009	5,150,000	GBP		8,602,021		8,469,793		(132,228	)
10/01/2009	264,799	EUR		377,442		351,137		(26,305	)
10/13/2009	2,690,000	NZD		1,773,399		1,694,700		(78,699	)
10/15/2009	211,620	EUR		301,638		280,644		(20,994	)
10/15/2009	414,775	EUR		591,211		549,796		(41,415	)
10/15/2009	151,083	EUR		215,350		198,568		(16,782	)
10/15/2009	764,659	EUR		1,089,930		1,014,933		(74,997	)
10/15/2009	588,767	EUR		839,217		774,465		(64,752	)
10/15/2009	245,530	EUR		349,973		322,000		(27,973	)
11/16/2009	540,094	EUR		769,840		755,348		(14,492	)
11/16/2009	611,914	EUR		872,212		855,144		(17,068	)

At July 31, 2009, the Fund had the following credit default swap contracts outstanding:

Credit default swaps on debt obligations – Buy protection

Expiration	Counterparty	Reference Debt Obligation	Rating of Reference Debt Obligation*	Notional Amount		Fixed Payments Made by the Fund	Frequency Of Payments Made	Market Value			Upfront Premiums Paid/ (Received)			Unrealized Gain (Loss)


06/20/2014	Goldman Sachs	Motorola, Inc., 6.50%, 09/01/2025#	BB+	$	1,070,000	1.00%	Quarterly	$	30,585		$	102,389		$	(71,804	)
06/20/2014	Goldman Sachs	Expedia, Inc., 7.46%, 08/15/2018#	BB		975,000	5.00%	Quarterly		(146,170	)		(87,383	)		(58,787	)
06/20/2014	JP Morgan	Motorola, Inc., 6.50%, 09/01/2025#	BB+		1,275,000	1.00%	Quarterly		36,444			83,238			(46,794	)
06/20/2014	UBS	Expedia, Inc., 7.46%, 08/15/2018#	BB		940,000	5.00%	Quarterly		(140,923	)		(28,064	)		(112,859	)

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

Credit default swaps on an index – Buy protection

Expiration	Counterparty	Reference Index	Rating of Reference Index*@	Notional Amount		Fixed Payments Made by the Fund	Frequency Of Payments Made	Market Value		Upfront Premiums Paid/ (Received)		Unrealized Gain (Loss)


06/20/2014	Credit Suisse	Dow Jones North America High Yield Index 12##	B	$	2,124,400	5.00%	Quarterly	$	197,569	$	335,872	$	(138,303	)
06/20/2014	JP Morgan	Dow Jones North America High Yield Index 12##	B		1,259,600	5.00%	Quarterly		117,143		209,721		(92,578	)

Credit default swaps on an index – Sell protection

Expiration	Counterparty	Reference Index	Rating of Reference Index*@	Notional Amount		Fixed Payments Received by the Fund	Frequency Of Payments Received	Market Value			Upfront Premiums Paid/ (Received)			Unrealized Gain (Loss)


12/13/2049	Credit Suisse	Markit CMBX North America AAA.3#	AAA	$	2,445,000	0.08%	Monthly	$	(454,770	)	$	(657,858	)	$	203,088
12/13/2049	Goldman Sachs	Markit CMBX North America AAA.3#	AAA		1,760,000	0.08%	Monthly		(327,360	)		(639,218	)		311,858

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 entered into the swap contract for hedging purposes.

As of July 31, 2009, reverse repurchase agreements outstanding were as follows:

Repurchase Amount	Counterparty	Interest Rate	Maturity Date


$47,757,669	Credit Suisse	0.52%	08/20/2009
44,184,381	Goldman Sachs	0.375%	08/20/2009

On July 31, 2009, the aggregate cost of securities for federal income tax purposes was $851,683,224. The gross unrealized appreciation and depreciation on securities based on tax cost was $39,517,490 and $48,524,278, respectively, with a net unrealized depreciation of $9,006,788.

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. If there has been no sale, the securities are valued at the mean between bid and asked prices.

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.

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.

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against changes in, security values and interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

Futures contracts are valued based upon their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

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 July 31, 2009, the Fund had unfunded loan commitments of $6,307,393.

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

On November 1, 2008, the Fund implemented Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). FAS 157 establishes a single authoritative definition of fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 establishes a fair value hierarchy based upon the various inputs used 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)

EVERGREEN MULTI-SECTOR INCOME FUND
SCHEDULE OF INVESTMENTS continued

July 31, 2009 (unaudited)

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

As of July 31, 2009, 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
Common stocks	$	71,895	$	0	$0	$	71,895
Mutual fund shares		2,454,427		0	0		2,454,427
Mortgage-backed securities		0		201,200,961	0		201,200,961
Corporate debt securities		0		517,952,416	0		517,952,416
Debt securities issued by foreign governments		0		90,968,041	0		90,968,041
Debt securities issued by U.S. Treasury and U.S. government agencies		14,668,802		0	0		14,668,802
Short-term investments		15,359,894		0	0		15,359,894


	$	32,555,018	$	810,121,418	$0	$	842,676,436

As of July 31, 2009, 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*	$	2,725	$	(283,810	)	$0	$	(281,085	)

*	Other financial instruments include futures, forwards and swap contracts.

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: September 28, 2009

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: September 28, 2009

By:	/s/ Jeremy DePalma
	Jeremy DePalma
	Principal Financial Officer

Date: September 28, 2009