CalPERS expects to save $20.9 million annually because of negotiated fee reductions in its alternatives manager and global equities programs and a smaller fee paid to UBS for its absolute-return strategy, confirmed spokesman Wayne Davis on Wednesday.
Mr. Davis said the savings was laid out in a presentation by Joseph Dear, chief investment officer of the $225.5 billion Sacramento-based California Public Employees’ Retirement System, during an investment committee meeting on Monday.
Mr. Dear said one general partner in the alternative investment management program agreed to a $7.4 million annual fee reduction. And the termination of underperforming global equity managers and renegotiated manager fees will result in an expected annual savings of another $7.5 million, according to the notes of the presentation. Mr. Dear did not identify the AIM partner.
The remaining $6 million will be saved by a renegotiation of the UBS contract, Mr. Dear said.