<PAGE>
To Our Shareholders:
- --------------------------------------------------------------------------------
CGM Capital Development Fund declined -5.0% in the second quarter of 1998
compared to the unmanaged Standard and Poor's 500 Index which increased +3.3%.
During the first six months of the year, CGM Capital Development Fund grew 7.0%
while the unmanaged S&P 500 Index increased 17.7%.
The U.S. economy is still strong: First quarter Gross Domestic Product grew at a
very high 5.4% annual rate and, although second quarter numbers are expected to
come in much lower, the pace continues to be brisk and appears sustainable.
Inflation, as measured by the Consumer Price Index, remains low, thanks largely
to commodity prices which have been falling for most of this year and also, to
economic problems in Asia. Corporate profit margins are slightly narrower than
at the end of the first quarter and in a few cases, companies have reported poor
results with most of the blame going to the Asian crisis.
At this point, Asia poses the greatest threat to ongoing economic peace of mind
in the U.S. The Asian recession is far worse than estimated last fall and it
appears that recovery will be slower in coming than originally anticipated.
Additionally, the Japanese economy is in trouble and the weak Yen puts
additional pressure on prices in neighboring countries. Commerce with Asia --
minus Japan -- represents but a small portion of the total U.S. economy so the
principal effect of the recession has been to force prices down, but only on
some of our goods. On one hand, lower prices have a favorable influence on our
rate of inflation; on the other, the situation is very disruptive to the
companies affected. As for the good news, the economic outlook of our far more
significant trading partners in Europe is improving.
In the U.S. equity markets, one of the dominant drivers of higher prices has
been the decline in long-term interest rates. One year ago, the long government
bond traded at a 6.6% yield; today it trades at 5.6%. The S&P 500 Index is now
at 1,140, or 25 times the estimated 1998 per share earnings of companies in the
index. Historically, this ratio is on the high side of equity pricing. Even
higher prices are harder to imagine unless long term rates continue to decline.
CGM Capital Development Fund's three largest industry positions are in housing
and building materials, basic materials and heavy capital goods. The Fund's
three largest holdings are Nokia Corporation, Chase Manhattan Corporation and
Asia Pulp and Paper.
/s/ Robert L. Kemp
Robert L. Kemp
President
July 1, 1998
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE
(unaudited)
- --------------------------------------------------------------------------------
Total Return for Periods Ended June 30, 1998
CGM CAPITAL
DEVELOPMENT S&P 500 THE FUND'S AVERAGE
FUND INDEX ANNUAL TOTAL RETURN
------------- ----------- ---------------------
10 Years ..................... +556.5% +447.9% +20.7%
5 Years ..................... +116.9 +182.3 +16.8
1 Year ...................... + 11.7 + 30.2 +11.7
3 Months - 5.0 + 3.3 --
The percentage figures for the Fund are based upon the beginning net asset
values of $16.72, $30.04, $34.50 and $30.35, respectively, and the June 30,
1998 net asset value of $28.84 per share assuming the reinvestment of income
dividends, capital gains and paid-in capital distributions during such
respective periods. The S&P 500 Stock Index has also been adjusted for the
reinvestment of income dividends during these periods. Although the S&P 500
Index and the Fund are not directly comparable, the Index is shown because it
is widely used by investors to measure unmanaged stock market performance.
When viewing the Fund's performance, one should keep in mind the Fund's
investment objective and policies, the characteristics and quality of its
portfolio securities, and the periods selected.
The performance data contained in the report represent past performance, which
is no guarantee of future results. The investment return on, and the principal
value of, an investment in the Fund will fluctuate so that investors' shares,
when redeemed, may be worth more or less than their original cost.
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
BOARD OF TRUSTEES
PETER O. BROWN
NICHOLAS J. GRANT
G. KENNETH HEEBNER
ROBERT L. KEMP
ROBERT B. KITTREDGE
LAURENS MACLURE
JAMES VAN DYKE QUEREAU, JR.
J. BAUR WHITTLESEY
OFFICERS
ROBERT L. KEMP, President
G. KENNETH HEEBNER, Vice President
LESLIE A. LAKE, Vice President and Secretary
KATHLEEN S. HAUGHTON, Vice President
MARTHA I. MAGUIRE, Vice President
W. DUGAL THOMAS, Vice President
MARY L. STONE, Assistant Vice President
FRANK N. STRAUSS, Treasurer
INVESTMENT ADVISER
CAPITAL GROWTH MANAGEMENT LIMITED PARTNERSHIP
Boston, Massachusetts 02110
TRANSFER AND DIVIDEND PAYING
AGENT AND CUSTODIAN OF ASSETS
STATE STREET BANK AND TRUST COMPANY
Boston, Massachusetts 02102
SHAREHOLDER SERVICING AGENT
FOR STATE STREET BANK AND
TRUST COMPANY
BOSTON FINANCIAL DATA SERVICES, INC.
P.O. Box 8511
Boston, Massachusetts 02266-8511
<PAGE>
<TABLE>
<CAPTION>
CGM MUTUAL FUND
- ---------------------------------------------------------------------------------------------------------------------------
25 YEAR INVESTMENT RECORD
DECEMBER 31, 1972 -- JUNE 30, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
IF YOU HAD PURCHASED ONE SHARE OF THE FUND ON DECEMBER 31, 1972
- ---------------------------------------------------------------------------------------------------------------------------
--AND HAD TAKEN ALL DIVIDENDS OR -- HAD REINVESTED ALL DIVIDENDS AND CAPITAL
AND DISTRIBUTIONS IN CASH GAINS DISTRIBUTIONS IN ADDITIONAL SHARES
-----------------------------------------------------------------------------------------------------------
During the Year
You Would Have Received Which Would Represent
------------------------------- ----------------------------------
The Value of A Cumulative
The Net Your Original Change
Asset Value Per Share Per Share Investment An Expressed
On of Your Capital Gains Income At Each Annual As An Index With
December Share Would Distributions Dividends Year End Total Return December 31,
31 Have Been of of Would Have Been of 1972 = 100.0
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1972 $14.63 100.0
1973 12.69 -- $0.08 $ 12.74 - 12.9 87.1
1974 7.78 $ 0.37* 0.14 8.15 - 36.0 55.7
1975 9.35 -- 0.15 9.98 + 22.5 68.2
1976 10.98 -- 0.13 11.89 + 19.1 81.2
1977 10.74 -- 0.18 11.82 - 0.6 80.7
1978 13.05 -- 0.27 14.76 + 24.9 100.8
1979 16.20 -- 0.35 18.80 + 27.4 128.4
1980 20.50 1.65* 0.36 26.87 + 42.9 183.5
1981 17.34 3.38 0.36 28.08 + 4.5 191.8
1982 24.88 2.88 0.41 50.24 + 78.9 343.1
1983 25.21 2.50 0.47 58.08 + 15.6 396.6
1984 17.28 6.15 0.11 53.32 - 8.2 364.1
1985 25.02 -- 0.18 77.95 + 46.2 532.3
1986 23.12 7.46 0.16 100.09 + 28.4 683.5
1987 16.56 10.09 0.14 116.00 + 15.9 792.2
1988 15.87 0.02 0.62 115.65 - 0.3 789.8
1989 18.37 -- 0.34 136.35 + 17.9 931.2
1990 18.53 -- 0.10 138.26 + 1.4 944.2
1991 25.80 11.07* 0.06 275.28 + 99.1 1879.9
1992 27.43 2.68* 0.20 323.45 + 17.5 2208.9
1993 27.71 7.51 0.07 416.28 + 28.7 2842.9
1994 20.58 0.71 0.07 320.95 - 22.9 2191.9
1995 27.33 1.68 0.02 452.86 + 41.1 3092.8
1996 29.08 5.87 0.07 580.11 + 28.1 3961.9
1997 26.96 9.08 -- 718.76 + 23.9 4908.8
1998(6/30) 28.84 -- -- 769.07 + 7.0 5252.4
------- ----- -------
Totals $ 73.10 $5.04 +5152.4
- ---------------------------------------------------------------------------------------------------------------------------
*Includes $0.15, $0.09, $0.02 and $0.02 per share distributed from paid-in capital.
- ---------------------------------------------------------------------------------------------------------------------------
The performance data contained in this report represent past performance, which is no guarantee of future results. The
investment return on, and the principal value of, an investment in the Fund will fluctuate so that investors' shares,
when redeemed, may be worth more or less than the original cost.
</TABLE>
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
INVESTMENTS AS OF JUNE 30, 1998
(unaudited)
COMMON STOCKS -- 99.6% OF TOTAL NET ASSETS
SHARES VALUE(a)
------ --------
AIRLINES -- 10.1%
AMR Corporation (b) ................................ 454,000 $ 37,795,500
Delta Air Lines, Inc. .............................. 295,000 38,128,750
------------
75,924,250
------------
AUTOMOTIVE & RELATED -- 1.7%
Daimler Benz A.G. ADR (c) .......................... 130,000 12,650,625
------------
BANKS -- MONEY CENTER -- 5.8%
Chase Manhattan Corporation ........................ 582,000 43,941,000
------------
BASIC MATERIALS -- 10.7%
Centex Construction Products, Inc. ................. 630,000 24,255,000
Lafarge Corporation ................................ 815,000 32,039,688
USG Corporation (b) ................................ 445,000 24,085,625
------------
80,380,313
------------
BEVERAGES AND TOBACCO -- 1.6%
Philip Morris Companies, Inc. ...................... 300,000 11,812,500
------------
BUSINESS SERVICES -- 3.5%
United Stationers, Inc. ............................ 405,000 26,223,750
------------
COMPUTER SOFTWARE AND SERVICES -- 4.9%
Dell Computer Corporation (b) ...................... 400,000 37,125,000
------------
ELECTRONIC AND COMMUNICATION EQUIPMENT -- 7.1%
Nokia Corporation ADR (c) .......................... 740,000 53,696,250
------------
ELECTRONIC COMPONENTS -- 7.5%
CHS Electronics, Inc. (b) .......................... 1,750,000 31,281,250
Philips Electronics N.V. ADR (c) ................... 295,000 25,075,000
------------
56,356,250
------------
HEAVY CAPITAL GOODS -- 10.3%
Navistar International Corp. (b) ................... 1,290,000 37,248,750
PACCAR, Inc. ....................................... 773,000 40,389,250
------------
77,638,000
------------
HOTELS AND RESTAURANTS -- 6.7%
Foodmaker, Inc. (b) ................................ 1,881,000 31,741,875
Ruby Tuesday, Inc. ................................. 1,220,000 18,910,000
------------
50,651,875
------------
HOUSING & BUILDING MATERIALS -- 10.8%
D.R. Horton, Inc. .................................. 540,000 $ 11,272,500
Kaufman & Broad Home Corporation ................... 1,070,000 33,972,500
Lennar Corporation ................................. 1,220,000 35,990,000
------------
81,235,000
------------
MISCELLANEOUS -- 3.5%
Standard Pacific Corp. ............................. 1,263,600 26,061,750
------------
OFFICE EQUIPMENT AND SUPPLIES - 5.2%
Lexmark International Group, Inc. (b) .............. 636,000 38,796,000
------------
PAPER PRODUCTS/CONSUMER -- 5.6%
Asia Pulp & Paper Company Ltd. ADR (c) ............. 3,715,000 41,793,750
------------
RETAIL -- 4.6%
Kmart Corporation (b) .............................. 1,800,000 34,650,000
------------
TOTAL COMMON STOCKS (Identified Cost $725,186,689) (d) ......... 748,936,313
------------
SHORT-TERM INVESTMENT -- 0.1%
FACE
AMOUNT
American Express Credit Corporation, 5.95% 7/01/98
(Cost $275,000) ................................... $ 275,000 275,000
TOTAL INVESTMENTS -- 99.7% (Identified Cost $725,461,689) ...... 749,211,313
Cash and Receivables ........................................... 31,512,414
Liabilities .................................................... (28,923,291)
------------
TOTAL NET ASSETS -- 100.0% ..................................... $751,800,436
============
(a) See Note 1A.
(b) Non-income producing security.
(c) An American Depository Receipt (ADR) is a certificate issued by a U.S. bank
representing the right to receive securities of the foreign issuer
described. The values of ADRs are significantly influenced by trading on
exchanges not located in the United States or Canada.
(d) Federal Tax Information: At June 30, 1998 the net unrealized appreciation on
investments based on cost of $725,461,689 for Federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ....... $ 59,874,693
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ....... (36,125,069)
------------
Net unrealized appreciation ................................ $ 23,749,624
============
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
STATEMENT OF
ASSETS AND LIABILITIES
June 30, 1998
(unaudited)
ASSETS
Investments at value (Identified
cost -- $725,461,689) ...................................... $749,211,313
Cash ......................................................... 4,351
Receivable for:
Securities sold ............................... $30,553,375
Shares of the Fund sold ....................... 38,696
Dividends and interest ........................ 76,066
Foreign Tax Reclaim ........................... 839,926 31,508,063
----------- ------------
780,723,727
LIABILITIES
Payable for:
Securities purchased ........................ $27,929,981
Shares of the Fund redeemed ................. 373,532 28,303,513
-----------
Accrued expenses:
Management fees ............................. 599,170
Trustees' fees ................................ 13,903
Accounting and Administration ................. 4,417
Other expenses ................................ 2,288 619,778
----------- ------------
28,923,291
------------
NET ASSETS ..................................................... $751,800,436
============
Net Assets consist of:
Capital paid-in ............................................ $602,532,457
Undistributed net investment income ........................ 3,888,210
Accumulated net realized gain .............................. 121,630,145
Unrealized appreciation on investments -- net .............. 23,749,624
------------
NET ASSETS ..................................................... $751,800,436
============
Shares of beneficial interest outstanding, no par value ...... 26,067,515
============
Net asset value per share* ................................... $28.84
============
*Shares of the Fund are sold and redeemed at net asset value
($751,800,436 / 26,067,515).
See accompanying notes to financial statements
<PAGE>
STATEMENT OF
OPERATIONS
Six Months Ended June 30, 1998
(unaudited)
INVESTMENT INCOME
Income
Dividends (net of withholding tax
of $658,292) ...................................... $ 7,831,603
Interest ............................................ 91,794
-------------
7,923,397
-------------
Expenses
Management fees ..................................... 3,760,584
Trustees' fees ...................................... 25,500
Accounting and Administration ....................... 26,500
Custodian ........................................... 60,000
Transfer agent ...................................... 97,103
Audit and tax services .............................. 15,500
Legal ............................................... 8,000
Printing ............................................ 13,500
Registration ........................................ 27,500
Miscellaneous ....................................... 1,000
-------------
4,035,187
-------------
Net investment income ............................... 3,888,210
-------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain on investments -- net ................... 121,750,602
Unrealized depreciation -- net ........................ (74,630,611)
-------------
Net gain on investments ............................... 47,119,991
-------------
NET INCREASE IN ASSETS FROM
OPERATIONS ............................................ $ 51,008,201
=============
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) ........................... $ 3,888,210 $ (2,114,797)
Net realized gain from investments ..................... 121,750,602 190,224,896
Unrealized (depreciation) .............................. (74,630,611) (38,714,156)
------------ ------------
Increase in net assets from operations ............... 51,008,201 149,395,943
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income .................................. -- --
Net realized gain on investments ....................... -- (187,774,697)
------------ ------------
-- (187,774,697)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares ........................... 17,714,691 34,947,059
Net asset value of shares issued in connection with
reinvestment of:
Dividends from net investment income ................. -- --
Distributions from net realized gain ................. -- 165,899,987
------------ ------------
17,714,691 200,847,046
Cost of shares redeemed ................................ (39,595,360) (71,055,460)
---------------- ----------------
Increase (decrease) in net assets derived from capital
share transactions ................................. (21,880,669) 129,791,586
------------ ------------
Total increase in net assets ........................... 29,127,532 91,412,832
NET ASSETS
Beginning of period .................................... 722,672,904 631,260,072
------------ ------------
End of period (including undistributed net investment
income of ($3,888,210 and $0, respectively) .......... $751,800,436 $722,672,904
============ ============
NUMBER OF SHARES OF THE FUND:
Issued from sale of shares ............................. 620,357 1,029,907
Issued in connection with reinvestment of:
Dividends from net investment income ................. -- --
Distributions from net realized gain ................. -- 6,153,926
------------ ------------
620,357 7,183,833
Redeemed ............................................. (1,361,163) (2,085,022)
------------ ------------
Net change ........................................... (740,806) 5,098,811
============ ============
</TABLE>
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1998 --------------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
For a share of the Fund outstanding
throughout each period:
Net asset value at the
beginning of period ......... $26.96 $29.08 $27.33 $20.58 $27.71 $27.43
------ ------ ------ ------ ------ ------
Net investment income (loss) 0.15 (0.08)(a) 0.07 0.02 0.07 0.07
Dividends from net investment
income ...................... -- -- (0.07) (0.02) (0.07) (0.07)
Net realized and unrealized
gain (loss) on investments .. 1.73 7.04 7.62 8.43 (6.42) 7.79
Distribution from net
realized gain ............... -- (9.08) (5.84) (1.68) (0.69) (7.51)
Distribution in excess of net
realized gain on investments -- -- (0.03) -- (0.02) --
Distribution from paid-in
capital ..................... -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Net increase (decrease) in
net asset value ............. 1.88 (2.12) 1.75 6.75 (7.13) 0.28
------ ------ ------ ------ ------ ------
Net asset value at end of
period ...................... $28.84 $26.96 $29.08 $27.33 $20.58 $27.71
====== ====== ====== ====== ====== ======
Total Return (%) .............. 7.0 23.9 28.1 41.1 -22.9 28.7
Ratios:
Operating expenses to average
net assets (%) .............. 1.05* 1.07 0.82 0.85 0.84 0.85
Net investment income to
average net assets (%) 1.02* -0.29 0.23 0.07 0.25 0.23
Portfolio turnover (%) ........ 378* 230 178 271 146 143
Net assets at end of period
(in thousands) ($) .......... 751,800 722,673 631,260 521,248 401,676 523,775
(a) Per share net investment loss does not reflect the period's reclassification of permanent differences between book
and tax basis net investment loss. See Note 1D.
* Computed on an annualized basis.
</TABLE>
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1998
(unaudited)
1. The Fund is organized as a Massachusetts business trust under the laws of
Massachusetts pursuant to an Agreement and Declaration of Trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's objective is long-term capital
appreciation. The Fund seeks to attain its objective by investing in the
equity securities of a diverse group of companies and industries.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. SECURITY VALUATION -- Equity securities are valued on the basis of
valuations furnished by a pricing service, authorized by the Board of
Trustees, which provides the last reported sale price for securities listed
on a national securities exchange or on the NASDAQ national market system
or, if no sale was reported and in the case of over-the-counter securities
not so listed, the last reported bid price. Short-term investments having a
maturity of sixty days or less are stated at amortized cost, which
approximates value.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed) and dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Net gain or loss on
securities sold is determined on the identified cost basis.
C. FEDERAL INCOME TAXES -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies, and to distribute to its shareholders all of its
taxable income and net realized capital gains, within the prescribed time
period. Accordingly, no provision for federal income tax has been made.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions
are recorded by the Fund on the ex-dividend date. The classification of
income and capital gains distributions is determined in accordance with
income tax regulations. Permanent book and tax differences relating to
shareholder distributions may result in reclassifications to paid-in
capital. Undistributed net investment income, accumulated net investment
loss, or distributions in excess of net investment income may include
temporary book and tax differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is
distributed in the following year.
2. PURCHASES AND SALES OF SECURITIES -- For the period ended June 30, 1998,
purchases and sales of securities other than United States government
obligations and short-term investments aggregated $1,431,455,919 and
$1,458,987,299, respectively. There were no purchases or sales of United
States government obligations.
3. A. MANAGEMENT FEES -- During the period ended June 30, 1998, the Fund
incurred management fees of $3,760,584 paid or payable to the Fund's
investment adviser, Capital Growth Management Limited Partnership
(CGM), certain officers and directors of which are also officers and
trustees of the Fund. The management agreement provides for a fee at
the annual rate of 1.00% on the first $500 million of the Fund's
average daily net assets, 0.95% of the next $500 million and 0.80% of
such assets in excess of $1 billion.
B. OTHER EXPENSES -- CGM performs certain administrative, accounting and
other services for the Fund. The expenses of those services, which are
paid to CGM by the Fund, include the following:
(i) expenses for personnel performing bookkeeping, accounting, and
financial reporting functions and clerical functions relating to the
Fund; (ii) expenses for services required in connection with the
preparation of registration statements and prospectuses, shareholder
reports and notices, proxy solicitation material furnished to
shareholders of the Fund or regulatory authorities and reports and
questionnaires for SEC compliance; and (iii) registration, filing and
other fees in connection with requirements of regulatory authorities.
The Accounting and Administration expense of $26,500 is shown
separately in the financial statements.
C. TRUSTEES FEES AND EXPENSES -- The Fund does not pay any compensation
directly to its officers or to any trustees who are directors,
officers or employees of CGM, or any affiliate of CGM, (other than
registered investment companies). Each other trustee is compensated by
the CGM Funds with an annual fee of $37,000 plus travel expenses for
each meeting attended. Of this amount, the Fund is responsible for
$3,000 plus an annual variable fee calculated based on the proportion
of the Fund's average net assets to the aggregate average net assets
of the CGM Funds, which for 1998 is $5,602. In addition, the Chairman
of the Independent Trustees Committee receives an annual retainer of
$1,500.
<PAGE>
CGM
CAPITAL
DEVELOPMENT
FUND
148th Quarterly Report
June 30, 1998
A No-Load Fund
Investment Adviser
[Logo] CAPITAL GROWTH MANAGEMENT
Limited Partnership
INVESTMENT ADVISER
CAPITAL GROWTH MANAGEMENT
LIMITED PARTNERSHIP
Boston, Massachusetts 02110
- -----------------------------------
TELEPHONE NUMBERS
For information about:
[ ] Account Procedures and Status
[ ] Redemptions
[ ] Exchanges
Call 800-343-5678
[ ] New Account Procedures
[ ] Prospectuses
[ ] Performance
Call 800-345-4048
- --------------------------------------------------------------------------------
MAILING ADDRESSES
FOR EXISTING ACCOUNTS
Boston Financial Data Services
P.O. Box 8511
Boston, MA 02266-8511
FOR NEW ACCOUNT APPLICATIONS ONLY
The CGM Funds
P.O. Box 449
Boston, MA 02117-0449
- --------------------------------------------------------------------------------
This report has been prepared for the shareholders of the Fund and is not
authorized for distribution to current or prospective investors in the Fund
unless it is accompanied or preceded by a prospectus.
CQR2 98 Printed in U.S.A.
