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Calpers review urges fee-payment changes

The US's biggest public pension fund urged to lower fund manager fees, particularly for hedge funds and private equity

A special review, spurred by a scandal at the nation's largest public pension fund, recommended that the California Public Employees' Retirement System make potentially major changes in how it pays money managers.

The review, led by law firm Steptoe & Johnson, urged that Calpers move to a system in which "nearly all" of a money manager's compensation come from profit-sharing, rather than "management or other fees".

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