HG Real Estate Fund

 HG Funds

HG Real Eatate Fund (HGREF) invests primarily in equity securities, including common and preferred stocks, convertible securities, rights or warrants to purchase stocks, and exchange traded funds.

The fund may also invest in fixed income securities, including high yield securities (junk bonds), issued by or guaranteed by real estate companies or companies related to the real estate industry, such as fixed, floating or variable rate corporate bonds, inflation ndexed securities, collateralized debt obligations, fixed-rate capital securities, mortgage pass through certificates, real estate mortgage investment conduit certificates and collateralized mortgage obligations.

Investment Strategy

Under normal circumstances, the HGREF invests at least 80% of its net assets in securities of real estate companies and companies related to the real estate industry. The fund will provide shareholders with at least 60 days notice before changing this policy.

Real estate companies include issuers that derive at least 50% of their revenues or profits from the ownership, construction, development, financing, management, servicing, sale or leasing of commercial, industrial or residential real estate or have 50% of their total assets in real estate.

Companies related to the real estate industry include companies whose products and services pertain to the real estate industry, such as building supply manufacturers, mortgage lenders and mortgage servicing companies. The fund does not invest directly in real estate.

HGREF seeks to stay ahead of the curve and offer real estate investments that are likely to capitalize on the growing demand for services in certain sectors of the economy.