<p>If you own 1 share of a class at $100 a share and they switch you to another class where you now have 0.5 shares at $200 a share, you still own $100 of that mutual fund.</p>
<p>How much of the fund you own is the same and you will have lower fees going forward.</p>
<p>Dadinator, I understand what you are saying but I use a money management software. Fund X & Y have different ticker symbols. To do the exchange, you need to sell shares of XXX and buy shares of YYY. 401K investment performance for Fund Y will be based on YYY’s cost basis and not XXX’s cost basis. </p>
<p>So just adjust your basis for fund Y in your software to be what your original basis was for fund X.</p>
<p>I don’t fudge numbers in my mgmt software. Fund X was sold so it will remain as sold.</p>
<p>It does sound like a bit of headache for you. But what’s wrong with recording fund x was sold and you bought fund y. So it’s not perfect, you couldn’t record the lowest price for fund x record.</p>
<p>I wouldn’t consider that to be “fudging”. Your shares were converted to a different class of the same fund; I wouldn’t even consider this to be a sale at all. Think of it like a stock split with a very weird ratio, along with a ticker change.</p>
<p>The problem is I want to control the selling of my funds not Vanguard. If I want to exchange funds then let me do it on my time. If Vanguard decides to close a fund or open up a new fund class then inform me. Don’t presume I want to do the exchange just because the new class has a lower expense ratio. </p>
<p>I think your problem is really with your company, not with Vanguard, as your company is the one that selects the fund available in your 401k. When the funds that are available change, your company will specify how the conversion is done.</p>
<p>If you complain to your plan administrator, I don’t think you will get much satisfaction though, as you are complaining about a change that keeps your money in the same fund but saves you money. They will not be sympathetic for how you choose to do your accounting.</p>
<p>How about this I shorted one stock and Scottrade closed out the short without notifying me. But I was happy the following day, the stock came up really high, I would have lost more money. I was a happy camper, it sure was a surprise, but I have not gotten time to call them and asking why. </p>
<p>@notrichenough- great point! As the company (as plan sponsor) and Vanguard (if they are trustee and administrator) have a fiduciary responsibility to both control costs and act as a prudent person would in similar circumstances, if the employer’s employees have enough assets in this fund to move to a lower cost class, the company and Vanguard really have no choice.</p>
<p>In 2012, Walmart and Merrill Lynch had a settlement on a class action lawsuit on this issue.</p>
<p>DrGoogle, your short was probably on the hard to borrow list. Scottrade may not have had the shares to borrow so they bought you in.</p>
<p>Or…, you didnt have the funds to cover the margin.</p>
<p>No there was fund there, but I think if there was no fund they should also notify you. I think the stock was GROUPONS, just went IPO for a few weeks.</p>
<p>When Vanguard did that to us initially we thought that there was someone messing with our account, and became suspicious. Then after we figured it out and my husband grumbled about changing it in his financial records, it was okay. We probably missed the notification. But as far as basis, does that matter for a 401K? I thought that any money you took as a distribution, you would have to pay taxes at your current rate on the entire amount. That it didn’t matter how much of a profit you had, or what your basis was. </p>
<p>@busdriver11 - you are correct. It appears the issue may be tracking rates of return on investment software.</p>
<p>DrGoogle…
<a href=“Ally Invest Help Center: FAQs for Ally Invest | Ally”>Ally Invest Help Center: FAQs for Ally Invest | Ally;
<p>Ipos are tough to short.</p>
<p>Thanks for the link, but the IPOs are the ones I made money shorting. I had 10 short trades that made money and GROUPONS was the only I lost on the second short trade. </p>
<p>Ok…</p>
<p>I am surprised you are able to short these ipos.</p>
<p>Not on the IPO day, but they were newly created IPOs. These are the ones I were about to short multiple times.
CSLT
PHM
KING
GRUB
YOKU
COUP</p>
<p>You should be happy. Your brokerage firm is coming through for you. </p>
<p>Are you shorting secondaries?</p>
<p>Yeah, I love Scottrade, the execution speed is superb. I don’t know what secondaries mean?</p>