Would MPF Fees Fall in 2011?

What did JPMorgan expect?

In October 2010, JPMorgan Asset Management’s vice-president for institutional and pension business Wing Sze Yeung expected MPF providers might adjust management fees when the Employee Choice Arrangement launched in 2011. But she said JPMorgan itself was unlikely to cut investment management fees, preferring to maintain service and fund quality — though one or two new, conservatively styled MPF funds were likely, with target-date and index funds ruled out.

Why wasn’t a fee cut certain?

Maintaining service quality costs money; but semi-portability’s competition could force trustees to cut to retain clients. Members can already see who’s cheapest at MPF fund comparison.

Why launch new funds?

With employees choosing their own trustees, fuller product lines win clients; conservative new funds target near-retirees.