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U.S. Bond Fund
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Asset Class: 100% Bonds
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Benchmark: Lehman Brothers Aggregate Bond Index*
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| Management Style: Passive | |
Objective and Strategy
The MMBB U.S. Bond Fund seeks moderate capital growth through participation in the broad U.S. bond market. This is an intermediate-term fund which has a weighted average life of 4-6 years.
Factors to Consider: - This fund has moderate interest rate risk. Bond funds rise and fall in value with changes in interest rates. Since bonds pay a set rate of interest, when interest rates on new bonds rise, the value of existing bonds falls and the fund's share price drops. When interest rates fall, the value of existing bonds rises. Long-term bond funds (with average maturities of 10 years or more) change in value much more than short-term bond funds (with average maturities of 2 to 5 years). Intermediate-term bond funds, such as the MMBB U.S. Bond Fund, fall somewhere in between.
- As with any bond fund, the greatest risk with this fund is credit risk — the 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.
- The U.S. Bond Fund should keep pace with or exceed the rate of inflation over long periods of time.
Fund Performance as of: 12/31/2007
U.S. Bond Fund
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2.98%
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6.62%
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6.62%
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4.10%
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3.87%
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- Lehman Brothers Aggregate Bond Index
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3.00%
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6.97%
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6.97%
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4.56%
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4.42%
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Money Manager(s)
Vanguard US Bond Fund
Annual expenses
As of December 31, 2007, 0.54% which includes the 0.40% administration fee.
Top Ten Holdings
1.
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Federal Home Loan Mortgage Corp.
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$3,077,833
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5.24%
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2.
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Federal National Mortgage Assn.
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$2,953,735
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5.03%
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3.
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Federal National Mortgage Assn.
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$2,770,798
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4.72%
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4.
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Federal National Mortgage Assn.
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$2,280,503
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3.88%
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5.
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Federal Home Loan Mortgage Corp.
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$2,147,917
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3.66%
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6.
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Federal Home Loan Mortgage Corp.
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$1,904,826
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3.24%
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7.
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Federal National Mortgage Assn.
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$1,004,999
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1.71%
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8.
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Federal National Mortgage Assn.
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$889,893
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1.51%
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9.
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U.S. Treasury Note
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$786,038
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1.34%
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10.
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Government National Mortgage Assn.
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$688,774
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1.17%
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U.S. Bond Fund Archives
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