Asset Class: Balanced Benchmark: A combination of unmanaged benchmarks: 60% MMBB Balanced Fund custom benchmark, 23% Hedge Fund Research (HFR) Fund of Funds Strategic Index, 15% Merrill Lynch 1- to 3-Year U.S. Treasury Index and 2% National Council of Real Estate Investment Fiduciaries (NCREIF) Timber Index. Management Style: A blend of active and passive

The MMBB New Horizons Fund seeks income and long-term growth without undue risk to capital.

The New Horizons fund is the most diversified offering among the investment choices.  It offers exposure to global equities and bonds, plus a variety of alternatives including hedge funds, timber and certain private investment partnerships.  Some of the investments are illiquid, meaning that they cannot be readily valued and/or cashed out.  Over time the combination of this variety of investments is intended to provide attractive returns without undue, or extreme, volatility.  New Horizons tends to perform in a fashion similar to the Annuity Fund, from which retiree benefits are paid.  Thus, New Horizons may be appropriate for those close to retirement age.  It may also be appropriate for those wishing to diversify their retirement account and possibly obtain favorable risk/return characteristics.

• The New Horizons Fund carries moderate investment risk. Investment in stocks and bonds means there is the possibility of losing some of your original investment, especially over a short period of time.
  
  
• This fund has moderate short-term market risk. There will be ups and downs in short-term return due to rising or falling stock and bond markets. However, the mixed investment holdings help offset this risk, because stocks and bonds often move in different directions in a given investment market.
  
  
• The New Horizons Fund has low to moderate credit risk. For the portion of the fund that is invested in bonds, there is a risk that borrowers will fail to make interest or principal payments on time-or at all. Bonds issued by the U.S. government and its agencies carry the highest level of credit protection and the least credit risk.
  
  
• Due to its balanced investment strategy, this fund is designed to provide long-term growth of capital and to keep pace with or exceed the rate of inflation over time, and therefore has moderate inflation risk.
  
  

The New Horizons Fund is managed by a number of independent money managers under the direction of the Finance Committee.

As of December 31, 2007, 1.39% which includes the 0.40% administration fee.