ShareBuilder’s MM sweep: BDMXX prospectus question

December 20th, 2008 · 3 Comments

I was doing some research this morning to further compare brokerage firms and started to look into the yield we’d earn on cash given various choices.  In doing this, I noticed that ShareBuilder has our cash in the Bedford Shares of The RBB Money Market Portfolio which is managed by BlackRock Institutional Management Corporation (symbol: BDMXX).  Seems fine, but why is the most recent prospectus only showing performance returns up until December 31, 2006?

The prospectus in question has a cover date of December 31, 2007, but the performance discussion only covers the period up to December 31, 2006.  For example, the Risk/Return Information on page 5 shows a chart covering annual performance from 1997 thru 2006.  The quoted 1 year, 5 year, and 10 year performance states its for the year ending December 31, 2006.  And the current yield is a quote 7-day yield for the period ended December 31, 2006.  Where’s all the data for the performance over 2007???

In the Financial Highlights section, they do breakdown income, distributions, total return, NAV, for the years ending August 31 for 2007 thru 2003.  Which confuses me even more since the period ends on a completely different date than the performance reporting section.

Am I just mis-reading something here or are these some repeated typos?   I admit I don’t look at too many money market prospectuses (as I don’t really pick them but instead go with what the brokerage has as its default) so I have no way to tell if this is the standard way they report performance.  It sure seems rather disappointing to be missing 23 months of performance numbers (January 2007 thru November 2008.)

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Tags: Investing · Money Market

3 responses so far ↓

  1. 1 Linda // 2009.03.03 at 4:55 pm

    I had that same question when looking at the prospectus today. This leaves me with my only recourse being to dig around on the internet (not very reliable) to get more info. I wish more information was available on the money marke account within ShareBuilder.

  2. 2 davmp // 2009.03.03 at 6:35 pm

    From a search of the SEC’s Edgar site, I’ve found this table of filings related to BDMXX. Since form 485 is the SEC code for a prospectus, this one contains the latest prospectus for the Bedford shares of the Money Market Portfolio as it was filed on Dec 29, 2008 with an effective date of Dec 31, 2008. But man, these guys are either purposely hiding something or they suck at producing reports because the graphs still don’t contain any 2008 data! If you read the tables carefully though, you’ll see that for the year ending in August, 2008 they report a 3.12% total return. I guess that’s not too bad, though I have little confidence I’m reading things right since their chart’s value for 2007 doesn’t match the table’s value for 2007.

    Oh, and the expenses for the year? This filing shows a 1.23% annual portfolio expenses fee, though they did voluntarily knock it down 0.90%.

    By the way, if anyone doesn’t want to struggle with reading this stuff online, the end of the prospectus states: “the Portfolio’s annual and semi-annual reports are not available on the Adviser’s website because copies may be obtained free of charge, by calling (800) 888-9723”.

  3. 3 larry // 2010.02.24 at 9:58 pm

    Has anyone found the sight to see the chart for 1998 to 2008? All i see is a big fake $1.00 when I get a quote. I liquidated all my stocks to put in the money market, and I’d like to know what my money will do as a %.

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