It was one of the more unusual moments in Frank Lingohr’s career. Three months ago the founder of German fund manager Lingohr & Partner Asset Management was discussing terms for a mandate with the California Public Employees’ Retirement System, the biggest US pension scheme, only to be told he should increase his fees.

Lingohr, an investment veteran of three decades, said: “Calpers told us we were charging too little. We charge management fees of 50 basis points where others, Calpers said, charge 70bps for the size of our mandate, that is, €50m ($72m).”