Do you show a money-market fund's seven-day yield?

[Peter Gulia]

If you're assembling a plan's rule 404a-5 disclosure to participants ...

Do you include or omit a money-market fund's seven-day yield?

If you include it, what is your reasoning for showing it?

(I assume there is no one inarguably right or wrong answer. Rather, I hope to get some sense of customs of recordkeepers and TPAs.)

[Kevin C]

Our disclosures do not show a seven-day yield for the money market fund.

[My 2 cents]

Is it even possible to put that many zeroes between the decimal point and the first non-zero place (i.e., 7-day yield = 0.000000003%)?

Why would one want to show such a figure?

[Peter Gulia]

Kevin C and My 2 cents, thank you for your good help.

As I understand the usual seven-day-yield illustration, it assumes the recent seven days' income will continue for a year. Just to pick one example, Fidelity's website displays the seven-day yield for "Fidelity Investments Money Market - Money Market Portfolio - Class I" as 0.77% (counting fee waivers) or 0.73% "without reductions". The same website display shows the shares' one-year past performance as 0.43%.

Any more views about whether information furnished to directing participant should include or omit a money-market fund's seven-day yield?

[My 2 cents]

Kevin C and My 2 cents, thank you for your good help.

As I understand the usual seven-day-yield illustration, it assumes the recent seven days' income will continue for a year. Just to pick one example, Fidelity's website displays the seven-day yield for "Fidelity Investments Money Market - Money Market Portfolio - Class I" as 0.77% (counting fee waivers) or 0.73% "without reductions". The same website display shows the shares' one-year past performance as 0.43%.

Any more views about whether information furnished to directing participant should include or omit a money-market fund's seven-day yield?

Strictly speaking, it's not a seven-day yield, it's an annual yield based on projecting what happened in the last week out for 51 more weeks.