We believe there is a convincing case for investing in real estate securities since there are a variety of options that extend beyond brick and mortar. With a broader focus, the Real Estate Securities Fund includes 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 generally considers a business to be a real estate company when it derives at least 50% of its revenue from real estate related activities or has at least 50% of its assets in real estate.
Consistent with the Fund’s investment objectives, certain securities will be selected for the potential for high current return while others will be chosen for their long-term capital appreciation potential. However, there are many consistent real estate securities benefits including:
- Long-term capital appreciation potential
- Dividend yield opportunity
- Access to a variety of property types
- Portfolio diversification
- All-encompassing real estate
We believe allocating assets to real estate and real estate related securities worldwide provides a solid opportunity for investors to bring it home.
The Real Estate Securities Fund Investment Objective
The Commonwealth Real Estate Securities Fund seeks to provide long-term capital appreciation and current income. Our strategic process includes investing at least 80% of assets in securities of companies principally engaged in the real estate industry and other real estate related investments.
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.
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 risks of investing in the Real Estate Securities Fund, which includes market, foreign security and geographic risk.