Seeks to provide current income while maintaining liquidity and a stable share price of $1.
The Money Market Fund invests in U.S. Treasury securities and seeks to provide current income and preserve shareholders’ principal investment by maintaining a share price of $1. Although the fund invests in short-term U.S. Treasury bills, the amount of income that a shareholder may receive will be largely dependent on the current interest rate environment. The net return will be the result of general Treasury money market funds performance less investment and administration expenses.
The Money Market Fund is one of the most conservative of MMBB’s investment options. There is a high probability that returns will be consistently positive. There is very little risk of loss of your original investment, over either the short term or the long term. Note, however, that “little risk” does not mean “no risk.” See the Risks section for more information on this topic.
All securities investments risk the loss of capital.
This fund is unlikely to provide meaningful long-term growth of capital.
Although there is a high probability of returns being consistently positive, over time returns are likely to be considerably lower than other investment options.
The return of this fund may not keep pace with inflation, eroding purchasing power of the original investment.
In a declining interest rate environment, the return generated by this fund will be reduced. It is possible that the fund can experience negative returns as a result of interest income being insufficient to offset expenses of the fund.
One of the Money Market Fund’s primary risks is an extremely low interest rate environment. In 2009 and 2010, for example, short-term interest rates were nearly zero. During this time period fund expenses outweighed investment return and the fund actually experienced slightly negative net performance. In response, MMBB voluntarily waived its 50 basis point (0.50%) administrative charge. Had MMBB not waived its administrative charge, performance would have been less than reported in the Fund Performance tab. There is a risk that should a similarly low interest rate environment occur in the future MMBB might not elect to waive its administrative charge. In such a case, expenses could outweigh income, resulting in a member’s account value declining.
*If you are uncomfortable with the risks associated with the Money Market Fund, you may want to consider another MMBB investment option.*
|1 Month||YTD||1 Year||3 Years||5 Years||8 Years||10 Years|
|Investment Management Fees||0.09%|
|MMBB Administrative Charge||0.00%*|
|Total Estimated Annual Expenses||0.22%|
*With all MMBB fund offerings, there are no sales charges on purchases, deferred sales charges, short-term or other redemption fees, distribution or 12b-1 fees, dealer commissions or low-balance account service fees.
Due to the exceptionally low-interest-rate environment, MMBB has waived the .50% administrative expenses associated with the Money Market Fund.