Asset Class: 100% Stocks Benchmark: Wilshire 5000 Index Management Style: Active

The MMBB U.S. Blended Equity Fund seeks long-term capital growth through investment in the stocks of U.S. companies.

The fund invests among several active fund managers who diversify their stock selections using different approaches:

Value-based investing, which seeks to identify and select stocks which are selling at a low price-to-earnings ratio, but have strong long-term prospects for improvement.

Growth-oriented investing, which seeks to identify and select stocks with strong future earnings growth prospects. These stocks often have a price-to-earnings ratio above the market average.

Investing across company sizes, which identifies and selects stocks based on capitalizations (cap). Large-cap companies tend to be well-established, with broad ownership and liquid stock shares. Smaller-cap companies generally have less market recognition and liquidity.

While the fund attempts to beat its benchmark, there is no guarantee that it will do so. And while the fund's performance will be similar to that of the stock market, its performance may vary significantly from that of the index on a year-to-year basis. The U.S. Blended Equity Fund is designed primarily for investors with fairly long time horizons (over seven years).

• Since it is invested entirely in stocks, the MMBB U.S. Blended Equity Fund carries fairly high investment risk. Investment risk is the chance of losing any of your original investment.
  
  
• This fund has short-term market risk. There will be ups and downs in short-term return due to rising or falling stock markets as investors change their perceptions of the economy and individual companies. However, over extended periods the market's ups have tended to outweigh the downs. Your chances of losing money are reduced when you invest for the long term, the primary strategy of this fund.
  
  
• The U.S. Blended Equity Fund is designed to provide long-term growth of capital and to keep pace with or exceed the rate of inflation over time, so it has low inflation risk.
  

As of December 31, 2007, 1.33% which includes the 0.40% administration fee.