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Supplement dated September 28, 1998
to the following prospectuses:
Flag Investors Real Estate Securities Fund, Inc.
(Class A and Class B) dated May 1, 1998
Flag Investors Real Estate Securities Fund, Inc.
(Institutional Class) dated May 1, 1998
The Prospectuses for Flag Investors Real Estate Securities Fund, Inc.
(the "Fund") are hereby supplemented to reflect the addition of James A. Ulmer
III as a portfolio manager. Mr. Ulmer will share portfolio management
responsibilities with Messrs. William K. Morrill, Jr. and Keith R. Pauley.
Accordingly, the section entitled "INVESTMENT ADVISOR AND SUB-ADVISOR -
Portfolio Managers" is replaced with the following:
William K. Morrill, Jr., the Fund's President, and Keith R.
Pauley, the Fund's Executive Vice President, have shared primary
responsibility for managing the Fund's assets from its inception. As
of September 28, 1998, they will share those responsibilities with
James A. Ulmer III, a Vice President of the Fund.
Mr. Morrill, Managing Director of ABKB/LaSalle, has nearly
18 years of investment experience and has been a portfolio manager
with ABKB/LaSalle or its predecessors since 1986.
Mr. Pauley, Senior Vice President of ABKB/LaSalle, has over
12 years of investment experience and has been a portfolio manager
with ABKB/LaSalle or its predecessors since 1986.
Mr. Ulmer, a Principal of ABKB/LaSalle, has over 30 years of
experience in real estate and REIT investment, development and
investment banking. Prior to joining ABKB/LaSalle in April of 1997,
Mr. Ulmer was a portfolio analyst and strategist for AIRES Real
Estate Services from 1993 to 1997. Prior to 1993, Mr. Ulmer was
President of the Parkway Companies, owners and developers of office
and industrial properties, and a bank and real estate securities
analyst for T. Rowe Price Associates.
