Two money management firms agree to stop using placement agents with CalPERS; firms will also reduce fees they charge the California pension fund
June 17, 2010
– Two money management firms doing business with California's largest pension fund have agreed to stop using so-called placement agents and reduce the fees they charge the fund.
The agreements were announced Wednesday. They grew out of an internal investigation that the California Public Employees Retirement System is conducting about how the fund works with the investment middle-men known as placement agents.
Los Angeles-based Ares Management LLC agreed to reduce the fees it charges CalPERS by $10 million over the next five years. Relational Investors LLC of San Diego agreed to a $30 million reduction over the same time.
CalPERS has said the top 10 placement agents working with the fund were paid more than $125 million by money-management firms over the past 15 years.
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