Commonwealth Funds : Real Estate Securities Fund

The Real Estate Securities Fund invests primarily in equity securities, including common stock, preferred stock, securities convertible into common stock and debt securities of companies in real estate industries, which may include real estate investment trusts (REITs), publicly traded real estate development companies, real estate management companies, building supply companies, timber companies, real property holdings and other publicly-traded companies involved in real estate related activities and industries. The Fund's investments normally will be allocated among a number of companies representing diverse investment policies and real property holdings. Consistent with the Fund's investment objective, certain securities will be selected for high current return, while others will be chosen for long-term capital appreciation potential.

The Fund's investments generally will be allocated amongst a number of companies representing diverse investment policies and real property holdings. Certain securities will be selected for high current return, while others will be chosen for their long-term capital appreciation potential. A real estate company generally derives at least 50% of its revenue from real estate related activities or has at least 50% of its assets in real estate.

Real Estate Investment Trusts or "REIT's" pool investors' funds for investment primarily in income-producing commercial real estate or real estate related loans. A REIT is not taxed on income distributed to shareholders if it complies with several requirements relating to its organization, ownership, assets and income, and a requirement that it distribute to its shareholders at least 90% of its taxable income (other than net capital gains) for each taxable year.

Australia/New Zealand Fund | Global Fund | Japan Funds | Real Estate Securities Fund | Prospectus (pdf)

Equity securities are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of the Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.

An investment in a real estate fund is subject to the same risks as a direct investment in real estate. Such risks include market risk, economic risk, and mortgage rate risk.