Evergreen - Prudential

NOTES TO FINANCIAL STATEMENTS continued
gage paydown gains and losses. During the year ended December 31, 2006, the following
amounts were reclassified:
Undistributed net investment income $ (21,556)
Accumulated net realized losses on investments 21,556
h. Class allocations
Income, common expenses and realized and unrealized gains and losses are allocated to the classes
based on the relative net assets of each class. Distribution fees, if any, are calculated daily at the
class level based on the appropriate net assets of each class and the specific expense rates applicable
to each class.
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Evergreen Investment Management Company, LLC (“EIMC”), an indirect, wholly-owned
subsidiary of Wachovia Corporation (“Wachovia”), is the investment advisor to the Fund and is
paid an annual fee starting at 0.41% and declining to 0.21% as the aggregate average daily net
assets of the Fund and its retail counterpart increase.
Tattersall Advisory Group, Inc. (“TAG”), an indirect, wholly-owned subsidiary of Wachovia, is
the investment sub-advisor to the fixed income portion of the Fund and is paid by EIMC for its
services to the Fund.
The Fund may invest in Evergreen-managed money market funds, which are also advised by
EIMC. Income earned on these investments is included in income from affiliate on the Statement
of Operations.
Evergreen Investment Services, Inc. (“EIS”), an indirect, wholly-owned subsidiary of Wachovia,
is the administrator to the Fund. As administrator, EIS provides the Fund with facilities, equipment
and personnel and is paid an annual rate determined by applying percentage rates to the
aggregate average daily net assets of the Evergreen funds (excluding money market funds and
Evergreen Institutional Enhanced Income Fund), starting at 0.10% and declining to 0.05% as
the aggregate average daily net assets of the Evergreen funds (excluding money market funds and
Evergreen Institutional Enhanced Income Fund) increase.
Evergreen Service Company, LLC (“ESC”), an indirect, wholly-owned subsidiary of Wachovia, is
the transfer and dividend disbursing agent for the Fund. ESC receives account fees that vary based
on the type of account held by the shareholders in the Fund.
The Fund has placed a portion of its portfolio transactions with brokerage firms that are affiliates
of Wachovia. During the year ended December 31, 2006, the Fund paid brokerage commissions
of $9,921 to Wachovia Securities, LLC.
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