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Insights into Real Estate | Mutual Funds | Definitions | Grubb & Ellis AGA Mutual Funds | How to Invest |
Grubb & Ellis AGA Realty Income Fund | Grubb & Ellis AGA US Realty Fund | Grubb & Ellis AGA International Realty Fund
 

FAQs about Mutual Funds

What is a mutual fund?
A mutual fund is a company that invests in a portfolio of securities, such as stocks and bonds. People who buy shares of a mutual fund are known as shareholders. A mutual fund has the ability to make money from its holdings when a security pays dividends or interest to the fund and/or a security rises in value. A fund can also lose money and drop in value. A mutual fund's combined holdings are known as its portfolio.
Why should I consider investing in a mutual fund?
Mutual funds can make investing simple, accessible and affordable. They offer investors the advantage of professional portfolio management for those who do not have the time or expertise to do it themselves. Additionally, mutual funds offer diversification as they have the ability to invest in multiple sectors and holdings. Furthermore, mutual fund shares are liquid investments that can be bought or sold on any business day. Lastly, mutual funds provide investors an affordable way to invest since minimum initial investments tend to be low.
How is the price I pay per share for a mutual fund determined?
All mutual funds have what is called a net asset value (NAV). Net asset value is the market value of a fund's assets minus its liabilities divided by the number of shares outstanding. This price is what an investor would pay for a mutual fund share. NAV is calculated on a daily basis. The price per share should not be confused with the minimum initial investment required to buy a mutual fund. To understand the cost of buying a mutual fund over and above its NAV per share, you need to read the prospectus carefully.
What are the costs associated with a mutual fund?
The costs associated with the operation and management of all mutual funds includes the annual operating fees and shareholder fees, if applicable. The expense ratio represents the total of a fund's annual operating costs expressed as a percentage of the fund's average net assets. This expense is typically paid out of the fund's assets, which means the investor indirectly pays this cost.

Shareholder fees can include sales charges associated with the purchase or redemption of shares, called the "load," purchase fees, exchange and/or account fees. Please read the prospectus carefully to understand all fees associated with a mutual fund.
How does investing in a mutual fund affect my federal taxes?
Investors will owe income tax on any ordinary dividends in the year they are received and/or reinvested and when they sell shares of a fund for a profit (capital gains). Investors may also have to pay taxes each year on the fund's capital gains. This is because the law requires mutual funds to distribute capital gains to shareholders if they sell securities for a profit that can't be offset by a loss. How to treat dividends and cost varies for everyone. Please consult with a tax advisor who can help you better understand your tax liabilities.
Are there risks involved investing in a mutual fund?
As an informed investor, understanding risk is critical. All funds carry some degree of risk. You may lose some or all of your money if the securities in your fund decrease in value. Dividend and interest payments may also fluctuate if market conditions change.
How do I get started?
Often, you can invest directly with a mutual fund. Most mutual funds are also available through an investment adviser or a discount brokerage account. A fund's prospectus will provide a phone number to call as well as specific information on how to open an account by completing an online or paper form.
 

FAQs about Grubb & Ellis AGA Mutual Funds
Why should I invest in a real estate mutual fund?
Investing in a real estate mutual fund provides investors an easy and liquid way to own real estate for a relatively low cost. Additionally, real estate mutual funds have the potential to provide investors with a steady source of income as well as the potential for capital appreciation. 
Why should I consider investing in Grubb & Ellis AGA Mutual Funds instead of investing directly in a real estate investment trust (REIT)?
It is important to keep in mind that different investment vehicles will suit different types of investors. Grubb & Ellis AGA Mutual Funds will be actively managed by an experienced team of professionals and will be diversified among a range of real estate related entities, including REITs.
Why should I choose Grubb & Ellis AGA Mutual Funds over other real estate mutual funds?
Grubb & Ellis AGA Mutual Funds are managed by Alesco Global Advisors, LLC, a team of real estate investment professionals who have meaningful industry experience. In addition to the team's own expertise and research capabilities, they have access to Grubb & Ellis Company data and resources which gives them a distinct advantage in the industry.

Founded more than 50 years ago, Grubb & Ellis Company is one of the world's leading full service commercial real estate organizations. Grubb & Ellis has property brokers in approximately 130 offices nationwide, more than 100 research professionals and a global reach that provides the team with real-time local market knowledge and expertise. This is especially critical as real estate is considered to be a highly local business.
Why would I consider investing in Grubb & Ellis AGA Mutual Funds in today's marketplace?
Given the challenges in financial markets, the team is witnessing meaningful dividend yields and dramatic discounts of real estate values in the public market which have not been seen for some time. Some of these situations may represent meaningful buying opportunities. Additionally, real estate mutual funds continue to provide investors the potential for additional portfolio diversification, income distribution and long-term capital appreciation.
Why did Grubb & Ellis form a subsidiary to offer mutual funds?
Introducing these funds is the first step in accomplishing the company's long-term goal to offer a family of mutual funds, separately managed accounts and hedge funds. These products, managed by Grubb & Ellis Alesco Global Advisors, LLC, and distributed by Quasar Distributors, LLC, will further diversify the company's investment offerings to meet the needs of a wide range of investors, complementing Grubb & Ellis' other real estate investment programs.
Can I lose money by investing in a mutual fund?
As with all investments, there is a risk of loss of principal. By allocating the assets in your portfolio among additional mutual funds and/or other securities, you may diversify and reduce your overall portfolio risk. It is important to keep in mind that diversification does not guarantee against loss. In addition, Grubb & Ellis AGA Mutual Funds are professionally managed and seeks to invest your money in a diverse set of real estate securities, helping to potentially alleviate overall risk.
Are there other risks to investing in Grubb & Ellis AGA Mutual Funds?
As an informed investor, understanding risk is critical. All funds carry some degree of risk. You may lose some or all of your money if the securities in the fund decrease in value. Dividend and interest payments may also fluctuate if market conditions change.

Grubb & Ellis AGA Mutual Funds cannot guarantee that it will achieve its investment objectives and should be considered a long-term investment. Prior to investing in the fund, you should carefully consider your own investment goals.
Will I owe taxes on these mutual funds?
Owning an investment typically includes tax implications. With Grubb & Ellis AGA Mutual Funds, current income paid out will be taxable in that year. There may also be income from capital gains, should securities in the fund be sold for a profit. It is important to consult your tax advisor to discuss your particular circumstances.
What is the minimum investment for the funds?
The initial minimum investment is $2,000. Subsequent minimum investments are $100.
How do I get started?
You can open an account directly with the fund. Download an application or request one at 877-404-7822. To determine if the funds are an appropriate investment for you, carefully consider the funds' investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds' prospectus, which may be downloaded here or obtained by calling 877.404.7822 or visiting our Web site at www.gbemutualfunds.com. Read the prospectus carefully before investing.

Definitions
A fund's expense ratio represents the recurring management fees charged to shareholders annually. It is expressed as a percentage of the fund's assets. These fees are used by the mutual fund firm to pay for managerial expenses, administrative costs, 12b-1 fees and other various operational expenses. The expense ratio represents a recurring annual fee, and should not be confused with sales fees and commissions, which are paid only at the time of purchase or sale of a fund.
A common stock represents equity ownership in a corporation, providing voter's rights, and entitling shareholders to a portion of the company's success through dividends and/or capital appreciation.
A preferred stock is a hybrid security with elements of both debt and equity. They represent partial ownership in a company and pay a fixed dividend that does not fluctuate.
Net asset value (NAV) is the market value of a fund's assets minus its liabilities divided by the number of shares outstanding. The NAV is the price an investor would pay for a mutual fund share on a given day. NAV is calculated on a daily basis. The price per share should not be confused with the minimum initial investment required to buy a mutual fund. To understand the costs of investing in a mutual fund over and above its NAV per share, you need to read the prospectus carefully.
A REIT (real estate investment trust) is a corporation that uses the pooled capital of many investors to purchase real estate through income producing properties or mortgages. Publicly traded REITs trade on major stock exchanges and receive special tax considerations as they must distribute at least 90 percent of their income in the form of dividends to shareholders.
A REOC (real estate operating company) is a corporation that invests in real estate and whose shares trade on a public exchange. REOCs are similar to REITs, except they will reinvest their earnings into the business rather than distributing them to shareholders. REOCs are not afforded the same tax advantages as REITs.

Mutual fund investing involves risk, including the potential loss of principal.

Investors should be aware of the risks involved with investing in a fund concentrating in REITs and real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. Investments in asset backed and mortgage backed securities include additional risks that investors should be aware of, such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investing in small and medium-sized companies involves greater risks than those associated with investing in large company stocks, such as business risk, significant stock price fluctuations and illiquidity. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Diversification does not assure a profit or protect against a loss in a declining market.

The funds may invest in foreign securities which involves greater volatility and political, economic and currency risks and differences in accounting methods.

Grubb & Ellis AGA Mutual Funds are distributed by Quasar Distributors, LLC.