Schaffer Consulting has been helping the Investment Office of the California Public Employees Retirement Service (CalPERS) to carry out a major across-the-board improvement effort.
This excerpt from The Sacramento Bee is about one of the three Rapid Results projects we helped to organize and carry out early in 2010. And more are now under way.
CalPERS has extracted more fee concessions from its investment partners – a total of $99.6 million in savings per year.
The pension fund disclosed Wednesday that private equity firms, hedge funds and others agreed to the annual fee reductions. Joe Dear, CalPERS' chief investment officer, didn't have available the identities of the firms.
CalPERS argues that fees should be reduced because investment returns have fallen in the past couple of years.
Dear said in an interview that it expects more investment firms to fall into line. "There are definitely more savings to come," he said.
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