Trend: Transparency in Pension Management Fees. 5 Things to Know

California had no idea how much CALPERS had paid out in management fees.

This triggered other states to make pension management fees more transparent. 

5 Things to Know:

• Over 25 years, California paid pension equity managers $3.4 Billion
• Performance fees, a fee attributed to alternative investments, are poorly reported by pension plans.
• CALPERS is leading the charge to adopt proposed industry-wide disclosure standards
  • Standards will require managers “to make clear the performance fees they are taking off the top of investment returns”
  • Written by Institutional Limited Partners Association (ILPA)
  • Final disclosure standards will be out in January 2016
• South Caronlina is calling for transparency
• Washington state is calling for transparency

Governing | Public Pensions Challenge Private Equity Fees