Seeks to outperform the S&P 500 index through active management while avoiding stocks of companies with significant interests in the alcohol, tobacco, gambling and pornography industries.
The Social Awareness Fund is actively managed, meaning that it attempts to outperform its benchmark, the Standard & Poors (S&P) 500, while adhering to its socially aware mandate. The manager of this fund also seeks to include stocks of socially responsible companies in this portfolio. The net return will be the result of general market performance, plus or minus the manager’s active performance, less investment and administration expenses.
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 the potential for 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, gambling and pornography industries. While all MMBB investment options are socially sensitive to the extent that MMBB is able to influence portfolio holdings and 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 decisions about which stocks to include based on research and an understanding of the potential the company has to grow. These decisions are made in an attempt to produce higher returns than the stock market, generally.
All securities investments risk the loss of capital. Since this fund is invested entirely in equities (stocks), the chance of losing a percentage of the 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 may produce, 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. This fund’s return may vary meaningfully from its benchmark, especially over shorter periods of time.
This fund may opportunistically hold up to 20% of the portfolio in equity of non-U.S. companies, which may introduce currency risk.
*If you are uncomfortable with the risks associated with the Social Awareness Fund, you may want to consider another MMBB investment option.*
The performance of the Social Awareness Fund for varying lengths of time is summarized below. The longer the time period, the more likely it encompasses varying economic and market conditions.
|Social Awareness Fund||2.16%||12.06%||15.93%||8.69%||13.51%||10.89%||4.88%|
|S&P 500 Index||-0.51%||5.40%||16.42%||10.14%||13.16%||16.89%||7.44%|
While it is valuable to view investment performance over long-term time horizons, looking at shorter time periods can give one insight as to how returns may fluctuate over shorter time periods. The table below displays calendar year returns.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; performance through the current date may be lower or higher than displayed above due to market fluctuations, manager performance or other reasons.
From time to time MMBB contracts with one or more external managers to execute the investment strategy for the Social Awareness Fund. Recently the roster for this investment option included:
|Investment Management Fees||0.75%|
|MMBB Administrative Charge||0.50%|
|Sales Charge (Load) on Purchases||None|
|Deferred Sales Charge (Load)||None|
|Short-term or Other Redemption Fee||None|
|Distribution, or 12b-1, Fee||None|
|Dealer Commission (percent of offering price)||None|
|Low Balance Account Service Fee||None|
|Total Annual Operating Expenses||1.37%|