Wachovia's fund arm is acting to prop up the value of one of its closed-end mutual funds. Evergreen Investments said Friday that it will ask the fund directors to authorize the repurchase of up to 5 percent of the shares of the Evergreen Utilities and High Income Fund.
The fund trades on the American Exchange under the symbol "ERH". The board of directors for the fund is scheduled to meet on March 15.
The funds prospectus requires the board to consider repurchaseing shares in the event that the fund's common shares trade at a discount to net asset value of greater than 5 percent for at least 15 out of 20 trading days during a predetermined measurement period.
The fund's NAV reached the 5 percent threshold on February 1, 2006 and it has traded at a discount of greater than 5 percent for 15 days through February 22.
Stay ahead of the news ... Sign up for our email alerts now