Edgar Filing: EVERGREEN UTILITIES & HIGH INCOME FUND

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21507

Evergreen Utilities and High Income Fund

(Exact name of registrant as specified in charter)

200 Berkeley Street

Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Michael H. Koonce, Esq.

200 Berkeley Street

Boston, Massachusetts 02116

(Name and address of agent for service)

Registrant’s telephone number, including area code: (617) 210-3200

Date of fiscal year end:

Registrant is making a quarterly filing for this series, Evergreen Utilities and High Income Fund, for the quarter ended May 31, 2008. This one series have a August 31 fiscal year end.

Date of reporting period: May 31, 2008

Item 1 – Schedule of Investments

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS



May 31, 2008 (unaudited)
		Principal Amount		Value



CORPORATE BONDS 36.3%
CONSUMER DISCRETIONARY 6.1%
Auto Components 0.4%
Cooper Tire & Rubber Co., 7.625%, 03/15/2027	$	530,000	$	447,850
Goodyear Tire & Rubber Co., 9.00%, 07/01/2015		240,000		258,600


				706,450


Diversified Consumer Services 0.0%
Service Corporation International, 6.75%, 04/01/2015		10,000		9,700


Hotels, Restaurants & Leisure 1.5%
Caesars Entertainment, Inc.:
7.875%, 03/15/2010 ρ		315,000		300,038
8.125%, 05/15/2011		135,000		115,425
Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/2010		365,000		319,375
Isle of Capri Casinos, Inc., 7.00%, 03/01/2014		1,056,000		810,480
Pinnacle Entertainment, Inc., 8.75%, 10/01/2013		30,000		30,900
Pokagon Gaming Authority, 10.375%, 06/15/2014 144A		410,000		445,875
Seneca Gaming Corp., 7.25%, 05/01/2012		120,000		116,400
Shingle Springs Tribal Gaming Authority, 9.375%, 06/15/2015 144A		450,000		394,875
Universal City Development Partners, Ltd., 11.75%, 04/01/2010		265,000		273,281


				2,806,649


Household Durables 1.3%
Centex Corp.:
4.875%, 08/15/2008		250,000		250,469
5.80%, 09/15/2009		105,000		102,375
D.R. Horton, Inc.:
4.875%, 01/15/2010		125,000		118,125
5.00%, 01/15/2009		245,000		241,938
8.00%, 02/01/2009		165,000		165,825
9.75%, 09/15/2010		155,000		161,200
Hovnanian Enterprises, Inc.:
6.00%, 01/15/2010		90,000		82,350
6.50%, 01/15/2014		61,000		43,615
11.50%, 05/01/2013 144A		55,000		57,475
KB Home:
7.75%, 02/01/2010		255,000		251,812
8.625%, 12/15/2008		90,000		91,350
Lennar Corp., 5.125%, 10/01/2010		200,000		184,000
Libbey, Inc., FRN, 11.91%, 06/01/2011		355,000		369,200
Meritage Homes Corp., 7.00%, 05/01/2014		70,000		59,675
Pulte Homes, Inc., 7.875%, 08/01/2011		35,000		34,825
Standard Pacific Corp., 5.125%, 04/01/2009		120,000		115,800


				2,330,034


Media 1.7%
Charter Communications, Inc.:
8.00%, 04/30/2012 144A		45,000		44,325
10.875%, 09/15/2014 144A		720,000		774,000
CSC Holdings, Inc., 7.625%, 04/01/2011		590,000		592,950
DIRECTV Holdings, LLC, 7.625%, 05/15/2016 144A		10,000		10,013
Idearc, Inc., 8.00%, 11/15/2016		730,000		525,600
Lamar Media Corp.:
6.625%, 08/15/2015		655,000		620,612
7.25%, 01/01/2013		35,000		34,650
Mediacom Broadband, LLC, 8.50%, 10/15/2015		10,000		9,125
Mediacom, LLC, 7.875%, 02/15/2011		75,000		70,875
R.H. Donnelley Corp., Ser. A-4, 8.875%, 10/15/2017 144A		595,000		401,625
Sinclair Broadcast Group, Inc., 8.00%, 03/15/2012		90,000		92,025


				3,175,800

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
		Principal Amount		Value



CORPORATE BONDS cotinued
CONSUMER DISCRETIONARY cotinued
Multi-line Retail 0.1%
Neiman Marcus Group, Inc., 9.00%, 10/15/2015	$	145,000	$	148,987


Specialty Retail 0.6%
American Achievement Corp., 8.25%, 04/01/2012		550,000		545,875
Home Depot, Inc., 5.875%, 12/16/2036		135,000		111,980
Payless ShoeSource, Inc., 8.25%, 08/01/2013		605,000		544,500


				1,202,355


Textiles, Apparel & Luxury Goods 0.5%
Oxford Industries, Inc., 8.875%, 06/01/2011		948,000		924,300


CONSUMER STAPLES 1.0%
Beverages 0.0%
Constellation Brands, Inc., 8.375%, 12/15/2014		10,000		10,500


Food & Staples Retailing 0.3%
Ingles Markets, Inc., 8.875%, 12/01/2011		170,000		174,250
Rite Aid Corp., 8.125%, 05/01/2010		345,000		345,863


				520,113


Food Products 0.4%
Dean Foods Co., 6.625%, 05/15/2009		40,000		39,950
Del Monte Foods Co.:
6.75%, 02/15/2015		280,000		272,300
8.625%, 12/15/2012		240,000		247,200
Pilgrim’s Pride Corp.:
7.625%, 05/01/2015		30,000		27,750
8.375%, 05/01/2017		210,000		184,275
Smithfield Foods, Inc., 7.75%, 07/01/2017		15,000		14,850


				786,325


Household Products 0.0%
Church & Dwight Co., 6.00%, 12/15/2012		50,000		49,500


Personal Products 0.3%
Central Garden & Pet Co., 9.125%, 02/01/2013		500,000		453,750


ENERGY 5.2%
Energy Equipment & Services 1.4%
Bristow Group, Inc., 7.50%, 09/15/2017		240,000		247,200
Dresser-Rand Group, Inc., 7.375%, 11/01/2014		200,000		200,000
GulfMark Offshore, Inc., 7.75%, 07/15/2014		225,000		230,625
Hornbeck Offshore Services, Inc., Ser. B, 6.125%, 12/01/2014		860,000		832,050
Parker Drilling Co., 9.625%, 10/01/2013		395,000		418,700
PHI, Inc., 7.125%, 04/15/2013		670,000		649,900


				2,578,475


Oil, Gas & Consumable Fuels 3.8%
Chesapeake Energy Corp.:
6.875%, 01/15/2016		930,000		918,375
7.25%, 12/15/2018		15,000		14,963
Clayton Williams Energy, Inc., 7.75%, 08/01/2013		215,000		205,862
El Paso Corp.:
7.00%, 06/15/2017		190,000		191,611
7.75%, 01/15/2032		35,000		35,371
Encore Acquisition Co.:
6.00%, 07/15/2015		390,000		372,450
6.25%, 04/15/2014		70,000		67,900
Exco Resources, Inc., 7.25%, 01/15/2011		450,000		443,812
Forbes Energy Services, LLC, 11.00%, 02/15/2015 144A		545,000		555,900

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
		Principal Amount		Value



CORPORATE BONDS continued
ENERGY continued
Oil, Gas & Consumable Fuels continued
Forest Oil Corp.:
7.25%, 06/15/2019 144A	$	150,000	$	148,125
7.25%, 06/15/2019		175,000		172,813
Frontier Oil Corp., 6.625%, 10/01/2011		165,000		163,350
Mariner Energy, Inc., 8.00%, 05/15/2017		80,000		77,800
Newfield Exploration Co., 7.125%, 05/15/2018		215,000		213,119
Peabody Energy Corp.:
5.875%, 04/15/2016		705,000		673,275
7.875%, 11/01/2026		105,000		107,100
Petrohawk Energy Corp., 7.875%, 06/01/2015 144A		145,000		145,544
Plains Exploration & Production Co.:
7.625%, 06/01/2018		205,000		207,050
7.75%, 06/15/2015		180,000		182,250
Range Resources Corp., 7.25%, 05/01/2018		75,000		76,500
Sabine Pass LNG, LP:
7.25%, 11/30/2013		790,000		736,675
7.50%, 11/30/2016		15,000		13,781
SandRidge Energy, Inc., 8.00%, 06/01/2018 144A		60,000		61,050
Southwestern Energy Co., 7.50%, 02/01/2018 144A		40,000		40,612
Tesoro Corp.:
6.50%, 06/01/2017		80,000		71,900
6.625%, 11/01/2015		500,000		461,875
Williams Cos., 7.125%, 09/01/2011		560,000		590,100


				6,949,163


FINANCIALS 6.4%
Capital Markets 0.1%
E*TRADE Financial Corp.:
7.375%, 09/15/2013		25,000		21,625
8.00%, 06/15/2011		35,000		32,375
12.50%, 11/30/2017 144A		170,000		185,937


				239,937


Consumer Finance 3.7%
Ford Motor Credit Co., LLC:
5.70%, 01/15/2010		1,865,000		1,738,482
5.80%, 01/12/2009		260,000		255,133
7.375%, 10/28/2009		295,000		287,408
9.75%, 09/15/2010		300,000		292,012
General Motors Acceptance Corp., LLC:
6.875%, 09/15/2011		670,000		565,264
6.875%, 08/28/2012		1,025,000		826,340
7.25%, 03/02/2011		90,000		77,134
7.75%, 01/19/2010		300,000		281,658
8.00%, 11/01/2031		780,000		598,875
FRN:
3.75%, 09/23/2008		330,000		324,062
3.93%, 05/15/2009		650,000		605,937
Qwest Capital Funding, Inc., 6.50%, 11/15/2018		130,000		109,850
Sprint Capital Corp., 6.875%, 11/15/2028		525,000		421,026
Toll Corp.:
8.25%, 02/01/2011		455,000		441,350
8.25%, 12/01/2011		90,000		86,850


				6,911,381

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
		Principal Amount		Value



CORPORATE BONDS continued
FINANCIALS continued
Diversified Financial Services 0.6%
JPMorgan Chase & Co., FRN, 7.90%, 12/31/2049	$	75,000	$	74,904
Leucadia National Corp.:
7.125%, 03/15/2017		105,000		101,325
8.125%, 09/15/2015		815,000		838,431


				1,014,660


Real Estate Investment Trusts 1.2%
Host Marriott Corp.:
7.125%, 11/01/2013		455,000		452,725
Ser. Q, 6.75%, 06/01/2016		545,000		531,375
Omega Healthcare Investors, Inc., 7.00%, 04/01/2014		890,000		867,750
Ventas, Inc., 7.125%, 06/01/2015		275,000		277,750


				2,129,600


Thrifts & Mortgage Finance 0.8%
Residential Capital, LLC:
FRN, 3.49%, 06/09/2008		130,000		128,050
Step Bond:
8.125%, 11/21/2008 ††		215,000		198,875
8.375%, 06/30/2010 ††		2,100,000		1,134,000


				1,460,925


HEALTH CARE 1.7%
Health Care Equipment & Supplies 0.0%
Universal Hospital Services, Inc., 8.50%, 06/01/2015		52,000		52,780


Health Care Providers & Services 1.7%
HCA, Inc., 9.25%, 11/15/2016		1,640,000		1,736,350
Omnicare, Inc.:
6.125%, 06/01/2013		705,000		652,125
6.875%, 12/15/2015		795,000		741,337


				3,129,812


INDUSTRIALS 3.8%
Aerospace & Defense 2.1%
Alliant Techsystems, Inc., 6.75%, 04/01/2016		175,000		173,687
DRS Technologies, Inc.:
6.625%, 02/01/2016		250,000		261,875
7.625%, 02/01/2018		60,000		64,950
Hexcel Corp., 6.75%, 02/01/2015		15,000		15,038
L-3 Communications Holdings, Inc.:
5.875%, 01/15/2015		2,455,000		2,338,387
6.375%, 10/15/2015		925,000		896,094
Moog, Inc., 7.25%, 06/15/2018 144A		90,000		91,125


				3,841,156


Commercial Services & Supplies 0.7%
Browning-Ferris Industries, Inc.:
7.40%, 09/15/2035		610,000		552,050
9.25%, 05/01/2021		315,000		327,206
Geo Group, Inc., 8.25%, 07/15/2013		135,000		139,050
Mobile Mini, Inc., 6.875%, 05/01/2015		280,000		243,600


				1,261,906


Machinery 0.5%
Commercial Vehicle Group, Inc., 8.00%, 07/01/2013		1,145,000		999,012

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
INDUSTRIALS continued
Road & Rail 0.5%
Avis Budget Car Rental, LLC, 7.75%, 05/15/2016	$	10,000	$	8,625
Hertz Global Holdings, Inc.:
8.875%, 01/01/2014		300,000		300,000
10.50%, 01/01/2016		5,000		5,013
Kansas City Southern:
7.50%, 06/15/2009		170,000		173,400
8.00%, 06/01/2015		180,000		181,350
9.50%, 10/01/2008		260,000		266,500



				934,888



Trading Companies & Distributors 0.0%
United Rentals, Inc., 6.50%, 02/15/2012		60,000		55,650



INFORMATION TECHNOLOGY 1.9%
Communications Equipment 0.1%
EchoStar Corp., 7.75%, 05/31/2015 144A		160,000		160,000



Electronic Equipment & Instruments 1.1%
Da-Lite Screen Co., Inc., 9.50%, 05/15/2011		560,000		534,800
Jabil Circuit, Inc.:
5.875%, 07/15/2010		115,000		113,419
8.25%, 03/15/2018 144A		1,010,000		1,017,575
Sanmina-SCI Corp.:
8.125%, 03/01/2016		210,000		198,450
FRN, 5.55%, 06/15/2010 144A		114,000		113,715



				1,977,959



IT Services 0.6%
First Data Corp., 9.875%, 09/24/2015 144A ρ		525,000		475,781
SunGard Data Systems, Inc., 4.875%, 01/15/2014		520,000		464,750
Unisys Corp., 6.875%, 03/15/2010		135,000		130,950



				1,071,481



Semiconductors & Semiconductor Equipment 0.1%
Freescale Semiconductor, Inc., 9.125%, 12/15/2014		10,000		8,625
Spansion, Inc., FRN, 6.20%, 06/01/2013 144A		320,000		235,200



				243,825



MATERIALS 4.2%
Chemicals 1.7%
ARCO Chemical Co.:
9.80%, 02/01/2020		300,000		253,500
10.25%, 11/01/2010		30,000		30,975
Huntsman, LLC, 11.625%, 10/15/2010		425,000		452,625
Koppers Holdings, Inc.:
9.875%, 10/15/2013		45,000		47,925
Sr. Disc. Note, Step Bond, 0.00%, 11/15/2014 †		440,000		407,000
Millenium America, Inc., 7.625%, 11/15/2026		270,000		162,000
Momentive Performance Materials, Inc.:
9.75%, 12/01/2014		150,000		139,875
10.125%, 12/01/2014		460,000		410,550
Mosaic Co.:
7.30%, 01/15/2028		260,000		263,900
7.875%, 12/01/2016 144A		410,000		446,900
Tronox Worldwide, LLC, 9.50%, 12/01/2012		745,000		607,175



				3,222,425

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
MATERIALS continued
Construction Materials 0.4%
CPG International, Inc.:
10.50%, 07/01/2013	$	705,000	$	588,675
FRN, 11.47%, 07/01/2012		125,000		104,375



				693,050



Containers & Packaging 1.1%
Berry Plastics Holdings Corp.:
7.57%, 02/15/2015 144A		115,000		112,125
8.875%, 09/15/2014		105,000		96,600
Exopack Holding Corp., 11.25%, 02/01/2014		615,000		587,325
Graphic Packaging International, Inc.:
8.50%, 08/15/2011		380,000		385,700
9.50%, 08/15/2013		245,000		248,062
Smurfit-Stone Container Corp., 8.375%, 07/01/2012		610,000		570,350



				2,000,162



Metals & Mining 0.3%
Freeport-McMoRan Copper & Gold, Inc., 8.375%, 04/01/2017		550,000		592,180



Paper & Forest Products 0.7%
Georgia Pacific Corp., 8.875%, 05/15/2031		260,000		258,700
International Paper Co., 7.95%, 06/15/2018 #		500,000		502,589
Verso Paper Holdings, LLC, 9.125%, 08/01/2014		465,000		480,113



				1,241,402



TELECOMMUNICATION SERVICES 1.8%
Diversified Telecommunication Services 0.8%
Citizens Communications Co., 7.875%, 01/15/2027		225,000		203,625
FairPoint Communications, Inc., 13.125%, 04/01/2018 144A		145,000		149,350
Qwest Corp.:
6.50%, 06/01/2017		260,000		242,450
7.50%, 06/15/2023		125,000		115,938
7.875%, 09/01/2011		570,000		582,825
8.875%, 03/15/2012		265,000		278,912



				1,573,100



Wireless Telecommunication Services 1.0%
Rural Cellular Corp., 8.25%, 03/15/2012		595,000		618,800
Sprint Nextel Corp.:
6.375%, 05/01/2009		245,000		243,829
6.90%, 05/01/2019		315,000		268,234
Ser. D, 7.375%, 08/01/2015		415,000		334,295
Ser. F, 5.95%, 03/15/2014		420,000		324,822



				1,789,980



UTILITIES 4.2%
Electric Utilities 4.1%
Allegheny Energy Supply Co., 8.25%, 04/15/2012 144A		685,000		726,100
Aquila, Inc., Step Bond, 11.875%, 07/01/2012 ††		1,195,000		1,428,025
CMS Energy Corp.:
6.55%, 07/17/2017		50,000		48,431
8.50%, 04/15/2011		65,000		69,006
Edison Mission Energy:
7.00%, 05/15/2017		130,000		127,725
7.20%, 05/15/2019		45,000		44,100
Energy Future Holdings Corp.:
10.875%, 11/01/2017 144A		490,000		513,275
11.25%, 11/01/2017 144A		295,000		303,850

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Principal Amount		Value


CORPORATE BONDS continued
UTILITIES continued
Electric Utilities continued
Mirant Americas Generation, LLC, 8.50%, 10/01/2021	$	100,000	$	97,000
Mirant Mid-Atlantic, LLC, Ser. C, 10.06%, 12/30/2028		180,244		209,318
Mirant North America, LLC, 7.375%, 12/31/2013		955,000		966,938
NRG Energy, Inc., 7.375%, 02/01/2016		815,000		796,663
Orion Power Holdings, Inc., 12.00%, 05/01/2010		927,000		1,022,017
PNM Resources, Inc., 9.25%, 05/15/2015		60,000		62,400
Public Service Company of New Mexico, 13.00%, 04/01/2015		90,000		92,026
Reliant Energy, Inc.:
6.75%, 12/15/2014		1,045,000		1,073,737
7.875%, 06/15/2017		15,000		15,150



				7,595,761



Independent Power Producers & Energy Traders 0.1%
AES Corp.:
8.00%, 10/15/2017		20,000		20,175
8.00%, 06/01/2020 144A		85,000		83,938
Dynegy Holdings, Inc., 7.50%, 06/01/2015		10,000		9,500



				113,613



Total Corporate Bonds (cost $69,325,614)				66,958,746



YANKEE OBLIGATIONS – CORPORATE 5.4%
CONSUMER DISCRETIONARY 0.0%
Media 0.0%
Videotron, Ltd., 9.125%, 04/15/2018 144A		15,000		16,125



ENERGY 1.4%
Oil, Gas & Consumable Fuels 1.4%
Connacher Oil & Gas, Ltd., 10.25%, 12/15/2015 144A		245,000		259,700
Griffin Coal Mining Co., Ltd.:
9.50%, 12/01/2016 144A		1,560,000		1,240,200
9.50%, 12/01/2016		110,000		87,450
OPTI Canada, Inc., 7.875%, 12/15/2014		1,030,000		1,048,025



				2,635,375



FINANCIALS 1.1%
Consumer Finance 0.2%
Avago Technologies Finance, Ltd., FRN, 8.58%, 06/01/2013		140,000		140,525
Virgin Media Finance plc, 9.125%, 08/15/2016		178,000		175,330



				315,855



Diversified Financial Services 0.9%
FMG Finance Property, Ltd., 10.625%, 09/01/2016 144A		915,000		1,065,975
NXP Funding, LLC, 9.50%, 10/15/2015		240,000		227,100
Ship Finance International, Ltd., 8.50%, 12/15/2013		465,000		478,950



				1,772,025



INDUSTRIALS 0.7%
Road & Rail 0.7%
Kansas City Southern de Mexico:
7.375%, 06/01/2014		585,000		571,837
9.375%, 05/01/2012		650,000		682,500



				1,254,337



INFORMATION TECHNOLOGY 0.5%
Communications Equipment 0.5%
Nortel Networks Corp.:
10.125%, 07/15/2013		800,000		788,000
10.75%, 07/15/2016 144A		125,000		124,063



				912,063

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Principal Amount		Value


YANKEE OBLIGATIONS – CORPORATE continued
MATERIALS 1.3%
Metals & Mining 1.2%
ArcelorMittal SA, 6.125%, 06/01/2018 144A	$	105,000	$	102,499
Evraz Group SA:
8.875%, 04/24/2013 144A		25,000		25,500
9.50%, 04/24/2018 144A		500,000		512,500
Novelis, Inc., 7.25%, 02/15/2015		1,530,000		1,445,850



				2,086,349



Paper & Forest Products 0.1%
Corporacion Durango SAB de CV, 10.50%, 10/05/2017 144A		380,000		221,350



TELECOMMUNICATION SERVICES 0.4%
Wireless Telecommunication Services 0.4%
Intelsat, Ltd., 9.25%, 06/15/2016		225,000		228,375
Vimpel Communications:
8.375%, 04/30/2013 144A		55,000		56,088
9.125%, 04/30/2018 144A ρ		405,000		418,873



				703,336



UTILITIES 0.0%
Electric Utilities 0.0%
InterGen NV, 9.00%, 06/30/2017 144A		30,000		31,650



Total Yankee Obligations – Corporate (cost $10,401,595)				9,948,465



CONVERTIBLE DEBENTURES 0.1%
CONSUMER DISCRETIONARY 0.1%
Media 0.1%
Sinclair Broadcast Group, Inc., 3.00%, 05/15/2027 (cost $113,629)		125,000		114,375






	Shares		Value


CONVERTIBLE PREFERRED STOCKS 3.4%
ENERGY 3.4%
Oil, Gas & Consumable Fuels 3.4%
El Paso Corp., 4.99%, 12/31/2049 (cost $4,534,688)		4,000		6,311,000



COMMON STOCKS 82.6%
CONSUMER DISCRETIONARY 2.3%
Media 2.3%
Vivendi SA		100,000		4,203,263



ENERGY 2.6%
Oil, Gas & Consumable Fuels 2.6%
Copano Energy, LLC ρ		57,647		2,124,292
Genesis Energy, LP		22,157		467,291
Southwestern Energy Co.		50,000		2,217,000



				4,808,583



TELECOMMUNICATION SERVICES 29.8%
Diversified Telecommunication Services 26.1%
AT&T, Inc.		250,000		9,975,000
Deutsche Telekom AG		500,000		8,370,740
FairPoint Communications, Inc.		5,657		50,913
Shenandoah Telecommunications Co. ρ +		368,910		6,042,746
Tele2 AB, Ser. B ρ		400,000		8,554,847
TeliaSonera AB		250,000		2,272,121
Verizon Communications, Inc.		300,000		11,541,000
Windstream Corp.		100,000		1,334,000



				48,141,367

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Shares		Value


COMMON STOCKS continued
TELECOMMUNICATION SERVICES continued
Wireless Telecommunication Services 3.7%
American Tower Corp., Class A *		80,000	$	3,657,600
Rogers Communications, Inc., Class B		75,000		3,300,750


				6,958,350


UTILITIES 47.9%
Electric Utilities 34.2%
Allegheny Energy, Inc. *		100,000		5,475,000
DPL, Inc. ρ		300,000		8,526,000
E.ON AG		20,406		4,342,087
E.ON AG, ADR		100,000		7,097,500
Edison International		75,000		3,992,250
El Paso Electric Co. *		25,000		540,250
Enel SpA		300,000		3,372,412
Entergy Corp.		56,000		6,763,120
Exelon Corp.		107,000		9,416,000
FirstEnergy Corp.		47,000		3,699,370
Fortum Oyj		75,000		3,624,468
ITC Holdings Corp.		36,000		1,964,520
Maine & Maritimes Corp. *		1,135		49,997
Westar Energy, Inc.		175,000		4,249,000


				63,111,974

Independent Power Producers & Energy Traders 5.7%
Constellation Energy Group, Inc.		84,500		7,286,435
Ormat Technologies, Inc.		65,000		3,257,150


				10,543,585


Multi-Utilities 5.5%
PNM Resources, Inc.		45,000		668,250
SUEZ		125,000		9,315,949
Wisconsin Energy Corp.		1,500		72,060


				10,056,259


Water Utilities 2.5%
American Water Works Co., Inc.		55,000		1,182,500
Pennichuck Corp.		150,000		3,480,000


				4,662,500


Total Common Stocks (cost $122,580,864)				152,485,881


PREFERRED STOCKS 10.0%
FINANCIALS 0.0%
Diversified Financial Services 0.0%
Bank of America Corp., Ser. H, 8.20%		2,915		72,612


UTILITIES 10.0%
Electric Utilities 9.6%
Carolina Power & Light Co., 5.00%		9,217		804,472
Connecticut Light & Power Co., Ser. 1947, 2.00%		22,000		781,000
Connecticut Light & Power Co., Ser. 1949, 2.04%		9,600		347,700
Consolidated Edison, Inc., Ser. A, 5.00%		27,820		2,463,461
Dayton Power & Light Co., Ser. A, 3.75%		9,416		681,778
Dayton Power & Light Co., Ser. B, 3.75%		5,120		355,200
Dayton Power & Light Co., Ser. C, 3.90%		17,500		1,176,329
Entergy Arkansas, Inc., 6.08%		644		62,146
Hawaiian Electric Industries, Inc., Ser. K, 4.65%		27,000		418,500
Pacific Gas & Electric Co., Ser. D, 5.00%		126,000		2,696,400
Pacific Gas & Electric Co., Ser. H, 4.50%		33,800		660,790

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Shares		Value


PREFERRED STOCKS continued
UTILITIES continued
Electric Utilities continued
Pacific Gas & Electric Co., Ser. I, 4.36%		34,800	$	645,540
PECO Energy Co., Ser. C, 4.40%		29,590		2,444,134
Southern California Edison Co., Ser. B, 4.08%		45,900		851,445
Southern California Edison Co., Ser. D, 4.32%		54,000		1,040,040
Union Electric Co., 4.50%		14,600		1,095,000
Union Electric Co., 4.56%		11,190		839,250
Union Electric Co., Ser. 1969, 4.00%		4,200		281,400


				17,644,585


Water Utilities 0.4%
Hackensack Water Co., 4.99%		10,469		837,520


Total Preferred Stocks (cost $19,342,022)				18,554,717


ESCROW SHARES 0.0%
Mirant Corp. Escrow * + o (cost $0)		5,000,000		0


CLOSED END MUTUAL FUND SHARES 0.0%
Kayne Anderson MLP Investment Co. (cost $150)		6		184






	Principal Amount		Value


LOANS 2.3%
CONSUMER DISCRETIONARY 0.2%
Bright Horizons Family Solutions, Inc., N/A, 05/15/2015 <	$	105,000		103,955
Dana Holding Corp., FRN, N/A, 01/31/2015 <		60,000		56,769
Fontainebleau Resorts, LLC, FRN, 6.26%, 06/06/2014		100,000		83,649
Idearc, Inc., FRN, 4.39% – 4.70%, 11/17/2014 <		194,664		163,535


				407,908


INDUSTRIALS 0.6%
Clarke American Corp., FRN, N/A, 02/28/2014		638,104		541,202
Neff Corp., FRN, 8.40%, 11/30/2014 <		705,000		516,666


				1,057,868


INFORMATION TECHNOLOGY 0.0%
Activant Solutions, Inc., N/A, 05/02/2013 <		56,001		49,394


MATERIALS 1.0%
Boise Paper Holdings, LLC, FRN, 11.00%, 02/15/2015		60,000		58,624
Lyondell Chemical Co., N/A, 12/20/2014 <		1,265,000		1,149,303
Wimar Co., FRN, 8.25%, 01/03/2012		620,000		598,914


				1,806,841


TELECOMMUNICATION SERVICES 0.5%
Intelesat Subsidiary Holdings Co.:
8.50%, 01/15/2015		545,000		535,773
8.75%, 01/15/2013		395,000		388,739


				924,512


UTILITIES 0.0%
Energy Future Holdings Corp., FRN, 6.23%–6.49%, 10/10/2014		1,960		1,843


Total Loans (cost $4,181,266)				4,248,366

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)
	Shares		Value


SHORT-TERM INVESTMENTS 19.3%
MUTUAL FUND SHARES 19.3%
BGI Prime Money Market Fund, Premium Shares, 2.65% q ρρ		4,650,976	$	4,650,976
BlackRock Liquidity TempFund, Institutional Class, 2.71% q ρρ		4,942,961		4,942,961
Evergreen Institutional Money Market Fund, Class I, 2.52% ø q ## µ ρρ		21,271,086		21,271,086
Morgan Stanley Institutional Liquidity Fund Money Market Portfolio, Institutional Class, 2.77% q ρρ		4,770,310		4,770,310


Total Short-Term Investments (cost $35,635,333)				35,635,333


Total Investments (cost $266,115,161) 159.4%				294,257,067
Other Assets and Liabilities (59.4%)				(109,703,436	)


Net Assets 100.0%			$	184,553,631

ρ	All or a portion of this security is on loan.
144A	Security that may be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees, unless otherwise noted.
††	The rate shown is the stated rate at the current period end.
†	Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. An effective interest rate is applied to recognize interest income daily for the bond. This rate is based on total expected interest to be earned over the life of the bond which consists of the aggregate coupon-interest payments and discount at acquisition. The rate shown is the stated rate at the current period end.
#	When-issued or delayed delivery security
o	Security is valued at fair value as determined by the investment advisor in good faith, according to procedures approved by the Board of Trustees.
*	Non-income producing security
+	Security is deemed illiquid and is valued using market quotations when readily available, unless otherwise noted.
<	All or a portion of the position represents an unfunded loan commitment. A coupon of “N/A” is indicated when the position is entirely unfunded.
q	Rate shown is the 7-day annualized yield at period end.
ρρ	All or a portion of this security represents investment of cash collateral received from securities on loan.
ø	Evergreen Investment Management Company, LLC is the investment advisor to both the Fund and the money market fund.
##	All or a portion of this security has been segregated for when-issued or delayed delivery securities.
µ	All or a portion of this security has been segregated as collateral for reverse repurchase agreements.

Summary of Abbreviations
ADR	American Depository Receipt
FRN	Floating Rate Note

The following table shows the percent of total long-term investments by geographic location as of May 31, 2008:

United States		76.3%
Germany		7.7%
France		5.2%
Sweden		4.2%
Canada		2.3%
Finland		1.4%
Italy		1.3%
Mexico		0.5%
Australia		0.4%
Luxembourg		0.2%
Ireland		0.2%
Netherlands		0.1%
United Kingdom		0.1%
Singapore		0.1%

		100.0%

At May 31, 2008, reverse repurchase agreements outstanding were as follows:

Repurchase Amount	Counterparty	Interest Rate	Maturity Date



$6,553,397	Lehman Brothers	3.46%	07/09/2008

Open call options written at May 31, 2008 were as follows:

Expiration Date	Security	Shares	Strike Price	Market Value	Premiums Received



06/15/2008	Rogers Communications, Inc.	187	$45	$14,025	$12,716

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)

At May 31, 2008, the Fund had the following credit default swap contracts outstanding:

Expiration

Counterparty

Reference Index

Notional
Amount

Fixed
Payments
Made by
the Fund

Frequency of
Payments
Made

Unrealized
Gain (Loss)

12/13/2049

Goldman Sachs

Markit CMBX, North America AJ.3 Index

$35,000

1.47%

Quarterly

$3,708

12/13/2049

UBS

Markit CMBX, North America AJ.3 Index

100,000

0.08%

Quarterly

11,117

Expiration

Counterparty

Reference Debt Obligation/Index

Notional
Amount

Fixed
Payments
Received by
the Fund

Frequency of
Payments
Received

Unrealized
Gain (Loss)

3/20/2013

Lehman Brothers

Centex Corp., 5.25%, 6/15/2015

$155,000

5.12%

Quarterly

$8,866

6/20/2013

Lehman Brothers

Motorola, Inc., 6.50%, 9/1/2025

75,000

2.28%

Quarterly

(156)

6/20/2013

Lehman Brothers

Pulte Homes, Inc., 5.25%, 1/15/2014

155,000

4.17%

Quarterly

(10,252)

On May 31, 2008, the aggregate cost of securities for federal income tax purposes was $266,274,680. The gross unrealized appreciation and depreciation on securities based on tax cost was $33,788,483 and $5,806,096, respectively, with a net unrealized appreciation of $27,982,387.

Valuation of investments

Listed equity securities are usually valued at the last sales price or official closing price on the national securities exchange where the securities are principally traded.

Foreign securities traded on an established exchange are valued at the last sales price on the exchange where the security is primarily traded. If there has been no sale, the securities are valued at the mean between bid and asked prices. Foreign securities may be valued at fair value according to procedures approved by the Board of Trustees if the closing price is not reflective of current market values due to trading or events occurring in the foreign markets between the close of the established exchange and the valuation time of the Fund. In addition, substantial changes in values in the U.S. markets subsequent to the close of a foreign market may also affect the values of securities traded in the foreign market. The value of foreign securities may be adjusted if such movements in the U.S. market exceed a specified threshold.

Portfolio debt securities acquired with more than 60 days to maturity are fair valued using matrix pricing methods determined by an independent pricing service which takes into consideration such factors as similar security prices, yields, maturities, liquidity and ratings. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of market value obtained from yield data relating to investments or securities with similar characteristics.

Short-term securities with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.

Investments in open-end mutual funds are valued at net asset value. Securities for which market quotations are not readily available or not reflective of current market value are valued at fair value as determined by the investment advisor in good faith, according to procedures approved by the Board of Trustees.

Reverse repurchase agreements

To obtain short-term financing, the Fund may enter into reverse repurchase agreements with banks and other financial institutions, which are deemed by the investment advisor to be creditworthy. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing qualified assets having a value not less than the repurchase price, including accrued interest. If the counterparty to the transaction is rendered insolvent, the Fund may be delayed or limited in the repurchase of the collateral securities.

Foreign currency translation

All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for that portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses on investments.

When-issued and delayed delivery transactions

The Fund records when-issued or delayed delivery securities as of trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Loans

The Fund may purchase loans through an agent, by assignment from another holder of the loan or as a participation interest in another holder’s portion of the loan. Loans are purchased on a when-issued or delayed delivery basis. Interest income is accrued based on the terms of the securities. Fees earned on loan purchasing activities are recorded as income when earned. Loans involve interest rate risk, liquidity risk and credit risk, including the potential default or insolvency of the borrower.

As of May 31, 2008, the Fund had unfunded loan commitments of $1,692,006.

Securities lending

The Fund may lend its securities to certain qualified brokers in order to earn additional income. The Fund receives compensation in the form of fees or interest earned on the investment of any cash collateral received. The Fund also continues to receive interest and dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a market value at least equal to the market value of the securities on loan, including accrued interest. In the event of default or bankruptcy by the borrower, the Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

EVERGREEN UTILITIES AND HIGH INCOME FUND SCHEDULE OF INVESTMENTS continued



May 31, 2008 (unaudited)

Options

The Fund may write covered put or call options. When a Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options, which expire unexercised, are recognized as realized gains from investments on the expiration date. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment which is subsequently adjusted to the current market value of the option. Premiums paid for purchased options which expire are recognized as realized losses from investments on the expiration date. Premiums paid for purchased options which are exercised or closed are added to the amount paid or offset against the proceeds on the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Credit default swaps

The Fund may enter into credit default swap contracts. Credit default swaps involve an exchange of a stream of payments for protection against the loss in value of an underlying security or index in the event of default or bankruptcy. Under the terms of the swap, one party acts as a guarantor and receives a periodic stream of payments that is a fixed percentage applied to a notional principal amount over the term of the swap. The guarantor agrees to purchase the notional amount of the underlying instrument or index, at par, if a credit event occurs during the term of the swap. The Fund may enter into credit default swaps as either the guarantor or the counterparty.

Any premiums paid or received on the transactions are recorded as an asset or liability on the Statement of Assets and Liabilities and amortized. The value of the swap contract is marked-to-market daily based on quotations from an independent pricing service or market makers and any change in value is recorded as an unrealized gain or loss. Periodic payments made or received are recorded as realized gains or losses. In addition, payments received or made as a result of a credit event or termination of the contract are recognized as realized gains or losses. The Fund could be exposed to risks if the guarantor defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index.

Item 2 - Controls and Procedures

(a)

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely.

(b)

There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 - Exhibits

File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

(a)

Separate certifications for the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached as EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Evergreen Utilities and High Income Fund

By:
	Dennis H. Ferro, Principal Executive Officer

Date: July 30, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:
	Dennis H. Ferro, Principal Executive Officer

Date: July 30, 2008


By:
	Kasey Phillips Principal Financial Officer

Date: July 30, 2008