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Please file this Supplement with your records
SECURITY CAPITAL REAL ESTATE MUTUAL FUNDS INCORPORATED
SECURITY CAPITAL EUROPEAN REAL ESTATE SHARES
Supplement dated January 5, 2000
To
Class R Prospectus and Statement of Additional Information dated May 1, 1999
Class I Prospectus and Statement of Additional Information dated May 1, 1999
Effective February 1, 2000, shares of Security Capital European Real Estate
Shares Class R will be converted to shares of Security Capital European Real
Estate Shares Class I with the surviving class being known as Security Capital
European Real Estate Shares ("SC-EUROPEAN"). The conversion will occur on the
basis of the relative net asset values of the two classes and no sales load,
fee, or other charge will be assessed in connection with the conversion.
Beginning January 1, 2000, Security Capital Global Capital Management Group
Incorporated ("GCMG"), the investment adviser to Security Capital Real Estate
Mutual Funds Incorporated ("the Fund"), has agreed to waive fees and/or
reimburse expenses to maintain the total net operating expenses (other than
brokerage fees and commissions, taxes, interest and other extraordinary
expenses) at no more than 1.60% and 1.45% of the Fund's Class R shares and Class
I shares average daily net assets, respectively. After the conversion, the
expenses of SC-EUROPEAN shares will be 1.45% of average daily net assets. The
minimum initial and subsequent investment requirements of SC-EUROPEAN shares
shall be $2,500 and $250, respectively. The conversion of Class R shares to
Class I shares does not constitute a taxable event under federal income tax law.
The date of this Supplement is January 5, 2000
