Wachovia To Bolster Evergreen Funds, More Support To Come

[54anickel]

Source: Dow Jones Newswires

NEW YORK -(Dow Jones)- Wachovia Corp. (WB), the parent of Evergreen Investments, plans to pump money into three Evergreen money-market funds as a result of the bankruptcy filing by Lehman Brothers Holdings Inc. (LEH), and more money funds are expected to require shoring up as well.

Wachovia, in a posting to Evergreen's Web site Monday, said it has entered into support agreements with Evergreen Money Market, Institutional Money Market and Prime Cash Management funds to support the value of Lehman credit held in the funds.

The statement did not say exactly how much support would be provided, and Evergreen had no comment beyond the statement. As of the close on Sept. 12, however, Evergreen Institutional Money Market Fund had $309 million, or 1.9% of its assets, invested in Lehman credit, Money Market Fund had $110 million, or 1.66% of its assets invested, and Prime Cash Management had $75 million, or 0.97% of its assets, invested.

Evergreen has no credit exposure to Lehman across the firm's municipal money- market funds, according to the statement. Lehman also serves as a counterparty on certain repurchase agreement transactions entered into by Evergreen Treasury Money Market Fund, it said. Those agreements are collateralized by U.S. Treasury securities in the event Lehman is unable to fulfill its obligations under the agreement, the statement said.

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