[COMPOSITE GROUP OF FUNDS LOGO]


                                                               December 26, 1997



Dear Shareholder:

     You were recently sent proxy  material.  As of the date of this letter,  we
have not received  your vote.  If you have  returned your proxy card in the last
few days,  thank you.  If, in the holiday  rush,  you have not had time to sign,
date and mail your proxy  card,  please do so today.  (Please  use the  enclosed
proxy card if you have  misplaced  the first one you were  sent.) If you prefer,
you can vote by telephone by calling our proxy solicitor,  D.F. King & Co., Inc.
at the toll-free number 800-949-2583.
You may also fax your vote at 212-269-2796.

     All of the  proposals  except for  proposal  one passed at the  shareholder
meeting on December 23, 1997.  Proposal one provides for the  reorganization  of
the Composite Funds as series of a  Massachusetts  business trust and requires a
two-thirds  vote  of all  shareholders  rather  than  a  simple  majority.  This
organizational  form is used by most mutual  funds;  we believe it will  provide
more flexibility and may reduce some costs.

     This  change,  if  approved,  will  facilitate  the  consolidation  of  the
Composite  Funds with the Sierra  family of funds.  This will give you and other
Composite  shareholders  a  much  broader  array  of  investment  opportunities,
including  an  international  fund and several  others.  The larger fund complex
should permit greater  efficiencies and cost savings. Our fund headquarters will
remain in Spokane,  shareholder meetings will not be held in Massachusetts,  and
there will be no changes in the investment objectives for your fund.

     Your board of directors believes these changes are in the best interests of
all shareholders and recommends that you vote FOR the proposals.

     Please help us avoid  further  solicitation  costs by  returning  your vote
today. And thank you for your cooperation.


                                   Sincerely,



                             /s/ William G. Papesh
                               William G. Papesh