Evergreen Utility Adds Telecom to Fund's Name

Evergreen Funds said Thursday that it is changing the name of its $500 million (EVUAX Quote)Evergreen Utility fund to Evergreen Utility and Telecommunications fund.

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Chief Investment Officer Dennis Ferro said that the name change addresses changes in the securities markets and industry definitions and does not signal a change in the fund's management team or investment strategy.

Many utilities funds that invest in telecommunications have belied the stereotype of the staid, steady utility fund by investing in the volatile sector. As of the end of November, some of Evergreen Utility's top holdings included Qualcomm (QCOM Quote), Qwest Communications(Q Quote) and Verizon(VZ Quote), according to Morningstar.

The fund, managed by Doris Kelley-Watkins, invests at least 65% of its assets in common, preferred and convertible preferred stocks, and investment-grade bonds and convertible debentures of utilities of any size. Kelley-Watkins defines a utility as anything that is used on a nondiscretionary basis by the global community and divides the sector into three major segments: electric, gas and telephones.

The fund also invests up to 35% of its assets in common stocks of nonutility companies and up to 10% in foreign securities.

The name change comes in the wake of the Securities and Exchange Commission's adoption of a rule requiring that funds invest in at least 80% of its assets in securities suggested by the fund's name, up from the 65% previously required.