<PAGE>
SECURITY CAPITAL REAL ESTATE MUTUAL FUNDS INCORPORATED
SECURITY CAPITAL EUROPEAN REAL ESTATE SHARES
Supplement to Class I Prospectus dated August 19, 1998
Date of Supplement: August 24, 1998
Please insert the following paragraph at the bottom of the front cover page:
PENDING THE SETTLEMENT OF GLOBAL MARKET FACTORS, SC-EURO WILL BE MAINTAINING A
DEFENSIVE INVESTMENT POSTURE AND WILL NOT BE ACTIVELY MARKETED TO NEW INVESTORS.
<PAGE>
SECURITY CAPITAL REAL ESTATE MUTUAL FUND INCORPORATED
SECURITY CAPITAL EUROPEAN REAL ESTATE SHARES
Supplement to Class R Prospectus dated August 19, 1998
Date of Supplement: August 24, 1998
Please insert the following paragraph at the bottom of the front cover page:
PENDING SETTLEMENT OF GLOBAL MARKET FACTORS, SC-EURO WILL BE MAINTAINING A
DEFENSIVE INVESTMENT POSTURE AND WILL NOT BE ACTIVELY MARKETED TO NEW INVESTORS.
<PAGE>
SECURITY CAPITAL REAL ESTATE MUTUAL FUNDS INCORPORATED
SECURITY CAPITAL ASIA/PACIFIC ESTATE SHARES
Supplement to Class I Prospectus dated August 19, 1998
Date of Supplement: August 24, 1998
Please insert the following paragraph at the bottom of the front cover page:
PENDING SETTLEMENT OF GLOBAL MARKET FACTORS, SC-ASIA WILL BE MAINTAINING A
DEFENSIVE INVESTMENT POSTURE AND WILL NOT BE ACTIVELY MARKETED TO NEW INVESTORS.
<PAGE>
SECURITY CAPITAL REAL ESTATE MUTUAL FUNDS INCORPORATED
SECURITY CAPITAL ASIA/PACIFIC REAL ESTATE SHARES
Supplement to Class R Prospectus dated August 19, 1998
Date of Supplement: August 24, 1998
Please Insert the following paragraph at the bottom of the front cover page:
PENDING SETTLEMENT OF GLOBAL MARKET FACTORS, SC-ASIA WILL BE MAINTAINING A
DEFENSIVE INVESTMENT POSTURE AND WILL NOT BE ACTIVELY MARKETED TO NEW INVESTORS.
