Giant 5 Funds will attempt to gain and maintain 20% exposure to Real Estate.
Real Estate
Where you live, work, shop, and play.
Securities of businesses which are principally engaged in or related to the real estate industry. This would include securities of companies involved in the development, construction, management, or sale of residential, commercial, or industrial real estate. For example, real estate investment trust (REITs), home construction companies, businesses that manufacture materials used in home construction, and commercial property developers.
You will notice that our real estate portfolios consist of many REITs. A REIT is a company that owns and usually manages income-producing real estate property such as apartments, offices and industrial space. Along with meeting additional criteria, to qualify as a REIT the company must:
pay at least 90% of its taxable income to its shareholders every year.
have at least 100 shareholders.
invest at least 75% of its total assets in real estate.
derive at least 75% of its income from rent or mortgage interest from properties in its portfolio.
Congress established REITs in 1960 to provide investors with the opportunity to invest in large, income-producing properties. The stocks of most REITs trade on the major stock exchanges. They present investors with a very efficient method of investing in real estate by increasing liquidity, lowering costs of entry, and providing diversification usually only available to very wealthy investors. Because each shareholder earns a pro rata percent of the REIT's profits, REITs typically offer investors high yields. REITs also receive special tax considerations which can lower their internal costs.
You should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For a prospectus, which contains this and other information about the Giant 5 Funds,
call 1-888-5GIANT5 or click here to download a copy.
Please read it carefully before investing.
