Picking a Provider for Employee Choice: Manager or Fees?

What matters most in a trustee?

Fidelity’s KP Cheng advises: under Employee Choice, the investment manager’s research muscle and stock-picking drive returns; judge fees by the fund expense ratio (FER), not management fee alone — but cheap isn’t automatically good, as a cheap poor performer nets you less. Choice makes you the boss.

How do you get both?

Screen out the pricey first, then pick proven managers among the affordable. The MPFA fee platform lists FERs — cross-check long-run returns too; a good manager at a fair fee wins.