Second Quarter 2001

Market Review & Outlook

We believe that the economy has not hit bottom. Most of the bullish forecasts from individual stock analysts seemed to be based on the "hope" that things will get better or that "historically, the 2nd half of the year is better." To date, few, if any, analysts or companies have been able to offer concrete evidence that the economy is improving. However, we all know that the economy and the stock market do not produce coincident results. At this particular point in time, the scenario that would surprise us the least is one in which the U.S. economy enters (or has entered) a recession in 2001 and bottoms-out sometime in 2002. Since the stock market typically moves nine to twelve months in advance of major economic changes, there is an above average chance that the market establishes a bottom between now and the end of the year. As much as we did not believe that the roaring bull market of the 1990s would last forever, we do not believe the technology bear market that has been in place since early 2000 will last forever, either.

Our results have been mixed, depending on whether you are looking at them on an absolute basis or on a relative basis. Our stated objective and benchmark for the vast majority of our investment programs has always been to meet or beat the Nasdaq over a full market cycle with less risk. Since our objective is in reference to a benchmark, then the appropriate way to evaluate our performance would be on a relative basis. Compared to our benchmark, the Nasdaq, our performance has been quite good, and we have surpassed our objectives by a wide margin. This can be easily seen in the 1-year, 2-year, 3-year, and 5-year performance columns on the program performance reporting sheet included in this mailing. We presently have two programs that are exceptions to the Nasdaq objective stated above. Our International program is benchmarked to the MSCI EAFE International Equity Index and our Flexible Income program is benchmarked to the Lehman Aggregate Bond Index, which we track with the Vanguard Total Bond Index fund. Although these two programs have different benchmarks, they too have surpassed their objectives for long-term performance.

Our programs that are benchmarked to the Nasdaq are aggressive programs. Even though we have exceeded our objectives, many of you have indicated that you would like for us to offer a program with more moderate objectives. We understand your desires and have been hard at work developing such a program. When we embarked upon this development effort, we realized that a different objective would require a different approach. We knew that we couldn't just "water-down" our aggressive strategies. The result is a totally new approach to investing that we're sure you will find to be both refreshing and unique. Internally, we have debated as to whether the objectives for this new "moderate" program should be benchmarked to the S&P 500 (U.S. large cap stocks), or to the Wilshire 5000 (total U.S. market). We decided that you would want it to be benchmarked to whichever was doing better, and so that is what our goal will be. However, since the S&P 500 has historically been the more conservative of the two, our official objective will be to outperform the S&P 500 over a full market cycle with less risk. We currently have test accounts running this new strategy and intend to roll it out to our clients in September. We will be mailing you additional information on this new program shortly.

New Investment Program

Our new ETF Programs are up and running. You should have received a letter detailing the ETF Lone Star and ETF All Star programs. We are pleased at the response we have received from you, and we welcome any additional questions you may have regarding these programs.

New No-Load Funds

ProFunds have introduced six new funds: Small Cap Value, Small Cap Growth, Small Cap Index, Mid-Cap Value, Mid-Cap Growth, and Mid-Cap Index. These funds are not leveraged and will provide us with additional flexibility in trading your accounts. Any of our no-load programs may buy these funds.

Minimum Required Distribution Reminder

It's ALMOST that time of the year again. For those born before July 1931, you must take a Minimum Required Distribution (MRD) from your traditional IRA, Rollover IRA, and other affected retirement accounts. We will send out all appropriate information to you in the next few months to help you prepare for this event. For anyone that has taken an MRD in the past, you will also get a reminder in the mail from Fidelity.

MRD rules have been in the headlines lately, as new proposed rules have been issued. If you are required to take a distribution, we will send you the new rules and how to apply them to your retirement accounts. The new rules are intended to be simpler than previous rules, which may result in smaller distributions. In addition, options available to beneficiaries of IRAs have changed, which may also result in smaller distributions. Remember, you can always take your MRD from an account other than the one(s) managed by CCAM. Another alternative is transferring your MRD right from your IRA account over to your taxable CCAM account.

The Economic Growth and Tax Relief Reconciliation Act of 2001

This new legislation allows for increased contribution limits for IRAs and other retirement plans. It also increases portability of retirement assets between employer-sponsored retirement plans and IRAs. Another unique provision allows "catch-up" savings for those ages 50 and over. These potential benefits will be available beginning January 1, 2002.

To review complete highlights, go to www.fidelity.com and click on Retirement Center. If you would like a hard copy of the highlights, please call Lisa Perzan at 1-800-767-2595 to request a copy.

Performance Reports and Invoices

Performance reports for the second quarter of 2001 and invoices for the third quarter of 2001 were mailed earlier in the quarter and were customized for and specific to your account. The performance figures included with this binder represent the composite performance results of all accounts that were in the program for the entire quarter. Past performance is not a guarantee of future results.