The objective of the Social Awareness Fund is to provide long-term growth of capital that equals or exceeds the rate of inflation over time while avoiding companies in the tobacco, alcohol, gambling or pornography industries. The fund excludes companies whose businesses are not in harmony with the fund's social sensitivities, to the extent that they can be identified. There is no guarantee that these objectives will be met.

The Social Awareness Fund is actively managed, meaning that it attempts to outperform its benchmark, the S&P 500, while adhering to its socially aware mandate. The S&P 500 is representative of the companies that are thought to drive the U.S. economy. These tend to be the larger, more established companies. The net return will be the result of general market performance, plus or minus the manager's success in outperforming the market, less investment and administration fees.

Opportunities

Historically, over long periods of time, the U.S. equity (stock) market has tended to provide higher returns than other investments, such as bonds or money market instruments. While there is no guarantee that this will be the case in the future, investment theory suggests that higher returns over the long term are a key reason investors would select an option like this one.

The Social Awareness Fund allows investors to participate in the U.S. stock market while explicitly avoiding investments in the alcohol, tobacco, gaming and pornography industries. While all MMBB investment options are socially sensitive to the extent that they can likely still meet their investment objective, the Social Awareness Fund engages a more stringent application of social awareness than other options.

Because this fund is actively managed, the portfolio manager makes conscious decisions about which stocks to include due to their favorable prospects, and which to exclude due to unfavorable prospects. These decisions are made in an attempt to produce even higher returns than the stock market generally.

Risks

All securities investments risk the loss of capital. Since this fund is invested entirely in stocks, the chance of losing a percentage of your original investment is much higher than with some other investment options.

The stock market can be volatile. Although, over long periods of time, investors may enjoy higher returns than some other options receive, they can also lose more money than in some other options. Sharp and unpredictable changes in value, either positive or negative, can be especially acute over shorter periods of time.

The active decisions that the portfolio manager makes with respect to which stocks to include and which to exclude may not turn out as expected and may detract from total fund return rather than enhancing it. On a short-term (year-to-year) basis this fund's return may vary meaningfully from its benchmark.

If you are not comfortable with any of these risks, we suggest you choose another option.

From time to time MMBB contracts with one or more external managers to execute the stated strategy for this investment option. Recently the roster for the Social Awareness Fund included:

Mellon Capital Management

As of December 31, 2008 annual expenses totaled 1.15%. The total investment return shown includes expenses.