<PAGE>
[Buckslip 4"x 10" prints in black ink on white cover stock (heavy paper) on
one side only]
IMPORTANT UPDATE
Rankings cited in periodical excerpts, which are included in CGM Funds
literature, reflect past performance for periods ending before publication
dates. Were these periodicals to publish current fund rankings based on the same
criteria as used at the time of publication, results might be different. More
current information is provided below. Past performance is no guarantee of
future results. Investment return and principal value of the CGM Funds will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
FOR THE PERIOD ENDED JUNE 30, 1995:
CGM CAPITAL DEVELOPMENT FUND ranked #16 of all mutual funds (520 funds ranked)
for 10-year performance. CGM Capital Development Fund ranked #4 of 145 growth
funds for 10-year performance, #8 of 230 growth funds for 5- year performance,
and #504 of 516 growth funds for one-year performance. The average annual total
returns of CGM Capital Development Fund for the ten, five, and one-year periods
ended June 30, 1995 are 18.45%, 18.92%, and 7.06%, respectively. CGM CAPITAL
DEVELOPMENT FUND IS CLOSED TO NEW INVESTORS.
CGM MUTUAL FUND ranked #2 out of 28 balanced funds for 10-year performance, #3
out of 59 funds for 5-year performance, and #149 of 172 balanced funds for
one-year performance. The average annual total returns of CGM Mutual Fund for
the ten, five, and one-year periods ended June 30, 1995 are 14.72%, 12.78%, and
12.08%, respectively.
CGM FIXED INCOME FUND ranked #4 of 57 general bond funds for one-year
performance. The average annual returns of CGM Fixed Income Fund for the
one-year period ended June 30, 1995, and since inception (March 17, 1992) are
13.97% and 10.8%, respectively. The advisor had agreed to limit CGM Fixed Income
Fund's total operating expenses to 0.85% of its average net assets annually
through December 31, 1995. Otherwise the average annual total return since
inception would have been 9.5% and for the one-year period ended June 30, 1995,
13.3%.
Ranking information is provided by Lipper Analytical Services, Inc., an
independent mutual fund ranking service, and is based on total return, which
assumes reinvestment of capital gains distributions and income dividends for the
indicated periods.
For more complete information including management fees, charges, and expenses,
please call or write to the appropriate CGM fund at the address below for a
current prospectus. Read the prospectus carefully before you invest or send
money.
THE CGM FUNDS
Post Office Box 449
Boston, Massachusetts 02117
800-345-4048 [smaller type] Update 6/30/95
