[Black and white print advertisement.]
[Left hand side of upper 90% of ad is taken up with an aerial photograph of
Manhattan office buildings (top of Empire State Building at center); headline
prints in two lines across entire top of ad dropping out to white type over
photo and printing black over white space.] IF YOU'RE LOOKING FOR PERFORMANCE,
CONSIDER A FUND BUILT ON SOLID FOUNDATIONS.
[Upper right hand side of ad is white with black text reading:]
Historically, the high ground has always proven advantageous. And in
today's unpredictable marketplace, the high ground may be attained through the
performance and advantages of REITs. In fact, REITS can be a welcome addition
to a diversified portfolio.
CGM Realty Fund invests in REITs and, for the three-year period ended
6/30/98, outperformed the NAREIT Equity REIT Index by 29% to return more than
88%*. CGM Realty Fund has declined during 1998. While no one can predict future
performance, maybe you should consider investing now.
Managed by Ken Heebner, CGM Realty Fund offers the potential for high
current income and long-term capital appreciation along with the long-term
advantages of real estate. Call now for more information and a prospectus.
[A line drawing of a fencer in a box with a black and white striped background
(logo) appears below. To the right of the logo is the following text:]
CGM REALTY FUND
The CGM Funds
222 Berkeley Street, Suite 1013
Boston, MA 02116
www.CGMFunds.com
[A phone number appears next and prints in a larger size than does the ad body
copy.]
1-800-598-0757
[Beneath the phone number in all capital letters:]
MANAGED BY KEN HEEBNER
[Beneath the body of the ad running the full width is the following text in
black type against a white background. (slightly smaller type size than ad body
copy):]
[The numbers that appear in the following copy are larger than the surrounding
text and are the same size as numbers that appear in the text.]
*6.1%, 23.5% and 18.0% are the average annual total returns for CGM Realty Fund
for the 1- and 3-year periods ended 6/30/98 and from inception 5/13/94 through
6/30/98. The Fund's adviser absorbed a portion of management fees and expenses
<PAGE>
from inception through 12/31/97. Otherwise the total return would be lower. The
National Association of Real Estate Investment Trusts (NAREIT) Equity REIT
Index is an unmanaged index currently consisting of approximately 175 equity
REITs. This information represents past performance, which is no guarantee of
future results. The investment return and principal value of shares will
fluctuate and you may have a gain or loss when you sell shares. For a
prospectus containing more complete information, including management fees and
expenses, call toll-free. Read it carefully before you invest or send money.
[Entire ad is surrounded by a decorative border containing the following words
used as a repetitive pattern:] NO-LOAD
Copyright 1998 CGM
