Investors Lose Big As Wachovia Subsidary Liquidates Evergreen Ultra Short Opportunities Fund
On June 19, Evergreen Investments, a subsidiary of Wachovia Corporation, announced that it was liquidating the Evergreen Ultra Short Opportunities Fund (EUBAX). The Fund has lost 19.6 percent of its value year to date, including total realized losses of more than $200 million in less than three months since March 31, 2008. Bond funds – traditionally considered safe, conservative investments – have once again proven that they are not immune to the subprime meltdown and may be among the most exposed investments of all.
The Fund, whose objective was to provide current income with preservation of capital and low principal fluctuation, invested 83.25% of its assets in commercial and residential fixed and variable rate mortgage backed securities, including collateralized mortgage obligations.
