Evergreen Real Income Fund Deck Design

FUND OBJECTIVES
Delivery world-class income yields – every month
Protect our assets (from permanent loss & inflation)
Benefit from long term appreciation potential of our real estate holdings
Invest in REITs and real estate related securities to:

Typically written on 15-30% of the portfolio’s assets depending on market volatility
Near term contracts (30-60 days to expiration)
Potential to reduce portfolio volatility and risk through income premiums – helps investors ”stay the course” in down markets
No leverage or naked call writing
Works best in flat or down markets with above average volatility
Objective: Attempt to boost current income and reduce return volatility through tactical strategies
Income Enhancement - Tactics
Covered Call-Premiums
Overweight high-conviction REIT holdings prior to their ex-dividend date
Trim position if / when stock increases (post ex-dividend date) and rotate to other holdings
REITs are ideal targets for this strategy as cash flowing assets are easier to value and hold if market moves against us
Works best with undervalued holdings or in rising markets (relative to covered call strategy)
Preferred REIT Shares
Mispriced equity / debt hybrid. Cumulative cash dividends that must be paid in entirety before any common share dividends can be paid
Distinguished by high current yield and almost no historical defaults (total credit loss for all equity REITs = <1% over last 25 years).
Trim preferred shares in attractive markets, overweight when real estate is expensive relative to other asset classes
Dividend Capture

REITs Fly Under The Radar
REITs are a major, $1 Trillion asset class, yet they are underappreciated by both Wall Street & Main Street
REIT Benefits: