PIPER JAFFRAY
                                                            COMPANIES

                                                    Piper Jaffray Companies Inc.
                                                    222 South Ninth Street
                                                    Minneapolis, MN 55402-3804

Date

Name
Address

Dear ________________:


You should recently have received a proxy statement in the mail requesting your
vote for the merger of the American Adjustable Rate Term Trusts into an open-end
fund called the Adjustable Rate Mortgage Securities Fund. Your participation in
this vote is crucial, as shareholders of at least 2/3 of the shares in each
trust must vote "yes" for the merger proposal to pass for that trust.

I have reviewed this merger proposal and believe it to be in shareholders' best
interest. Merging each closed-end term trust into one open-end fund would
immediately increase the price of your term trust shares because the merger
would eliminate the market discounts at which they currently trade. Also,
eliminating the term trust structure would give portfolio managers greater
investment flexibility which, in the adviser's opinion, may help the fund obtain
a higher investment return.

If you'd like to discuss whether retaining or redeeming your shares after the
merger is the best alternative for your situation, please call me. Please note
that the last item on your ballot form, which asks you to check whether you plan
to retain or redeem shares, does NOT commit you to that decision. This question
is designed solely to help Piper Jaffray gauge potential redemption levels.

The Question and Answer section at the front of the proxy statement summarizes
the reasons for the merger in more detail. Please review it, and the rest of the
proxy statement, and call me with any questions.

With kindest regards,


Name
Title

                           Piper Jaffray Inc., fund distributor and NASD member.
                                                                          262-95