Commonwealth Funds: Real Estate Securities Fund
The Commonwealth Real Estate Securities Fund seeks to provide long-term capital appreciation and current income. Under normal market conditions, the Real Estate Securities Fund invests at least 80% of assets in securities of companies principally engaged in the real estate industry and other real estate related investments. 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.
The Real Estate Securities Fund invests primarily in equity securities without regard to capitalization, common and preferred stock and securities convertible into common stock. It also invests in debt instruments of these companies.
Investments 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. 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 objectives, certain securities will be selected for high current return while others will be chosen for their long-term capital appreciation potential.
Real Estate Investment Trusts (REITs) own and in most cases operate income-producing real estate. Some REITs also engage in financing real estate. A REIT is not taxed on income distributed to shareholders if it complies with several requirements relating to its organization, ownership, assets and income.
Risks of Investment: Learn about the principal risksof investing in the Real Estate Securities Fund, which includes market, foreign security and geographic risk.