Executive Summary Report
June 30, 2000


Bear and Stearns Asset Management
Fixed Income Manager

• The Bear Steams portfolio totaled $19.4 million at the close of the quarter with 99.5% in fixed income securities and 0.5% in cash.
  
  
• The portfolio returned 1.9% for the quarter, outperforming the Lehman Brothers Intermediate Government Index return of 1.8%.
  
  
• The portfolio's underexposure to Treasuries in favor of mortgage-backed securities helped the portfolio, as the interest rate environment was favorable to mortgages-backed issues (LB Mortgage +2.3% versus LB Treasuries +1.5%). Within the mortgage-backed sector, the manager's under weighted position to FHLMC (LB FHLMC +2.3%) and FNMA (LB FNMA +2.3%) in favor of GNMA's (LB GNMA +2.1%) hurt performance as spreads between GNMA's and other mortgage-backed securities narrowed as fears subsided that the U.S. Government would remove its explicit guarantee of non-GNMA securities.