I have a friend who's been with Morgan Stanley since 1998. Last year, LAST YEAR! 2013 they managed to net an annual loss of 10K on his 250k portfolio.
The TR 0.54% ER must be added to the ER of the underling funds
So the "must" is much too strong.
stocks are more risky, they must pay out more than bonds to get people to take the risk of stocks.
To obtain the market return you don't need to dare to be great but if you are an enterprising investor that is exactly what you need to do.
Bottom line, really boring and I sleep well at night--no big deal.