[Black and white print advertisement.]
[Primary focus of the ad is a photograph of a front-end loader dumping dirt on
top of a pile of soil and rocks. Above the photo on the left hand side of the
ad, the following headline prints in black against a white background:]
CONSIDERING THE UNPREDICTABILITY OF THE MARKET, WE SUGGEST PUTTING YOUR MONEY
IN THE GROUND.
[To the right of the headline and running down the right side of the photo in
smaller black type is the following text:]
In today's unpredictable marketplace, the performance of REITs may
provide a strategic advantage. 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 the text to the right of the photo. 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.]
1-800-598-0750
[Beneath the phone number in all capital letters:]
MANAGED BY KEN HEEBNER
[Beneath the body of the ad 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 on 5/13/94
through 6/30/98. The Fund's adviser absorbed a portion of management fees and
expenses from inception through 12/31/97. Otherwise the total return would be
<PAGE>
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
