Supplement dated October 30, 2000 to the currently effective
Prospectus and Statement of Additional Information of
AEW Real Estate Securities Fund (the "Fund")
CDC Asset Management, the investment management arm of France's Caisse des
Depots Group, has completed its acquisition of Nvest, L.P. and Nvest Companies,
L.P. As a result, CDC Asset Management owns, directly or indirectly, a
controlling interest in certain Nvest affiliates, including AEW Management and
Advisors, L.P. ("AEW"), which serves as investment adviser to the Fund.
The Nvest-CDC Asset Management transaction involved a change of ownership
of Nvest, which may be deemed to have caused a "change of control" of AEW, even
though AEW's operations did not change as a result. As required by the
Investment Company Act of 1940, which regulates investment companies such as the
Fund, the Fund's shareholders approved a new investment advisory agreement for
the Fund to assure that there is no interruption in the services AEW provides to
the Fund. The new investment advisory agreement is effective as of October 30,
2000.
