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Evergreen Real Income Fund Deck Design
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 =
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