Issues Update
CalPERS Investment Firms Agree to Stop Use of Placement Agents with Fund
June 16, 2010
Relational Investors LLC, a corporate governance fund, and Los Angeles-based Ares Management LLC have agreed to stop using placement agents to secure business from the pension fund. Both firms have also agreed to cut management fees they charge to CalPERS. Relational will cut out $30 million from its fees over five years and Ares by $10 million for the next five years. CalPERS is co-sponsoring legislation that would treat placement agents as lobbyists and prohibit them from collecting contingency fees based on the outcome of any investment decisions.
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