The lower fee Vanguard Target Retirement Funds were added to the DAP investment menu on May 12, 2021. The below notice was mailed to you April 1st:
Required Notice – Vanguard TDF – Lower Fee Share Class Notification
If you were invested in a Vanguard Target Retirement Fund on May 12th, you were automatically exchanged into the lower fee fund. It is the same fund at a lower fee.
Before the change, Vanguard only allowed the retail share class of the Vanguard Target Retirement Funds to be offered to the DAP participants. These funds had an annual expense factor of 0.12% to 0.15% depending on the fund you were invested in.
Vanguard now allows the institutional share class of the Vanguard Target Retirement Funds to be offered to the DAP participants. These funds have an annual expense factor of 0.09% for all of the funds.
There is a 0.03% to 0.06% annual fee savings to the DAP participants by replacing the retail share class with the institutional share class.
Now all of our participants have access to these low cost target date funds.