Institutional Investors

CalPERS cracks down on gifts, travel and fees


The $228 billion California Public Employees’ Retirement System conducted a special review of fees paid by external managers to placement agents and an analysis of more than 70 million pages of information collected from more than 400 managers and more than 140 interviews.

The special review began in 2009 and resulted in more than $200 million in fee concessions from leading external managers, plus another $100 million in fee reductions from other large external managers as each firm agreed not to use a placement agent when seeking future CalPERS’ business. None of the review specifies whether managers or