CalPERS spent $1.59 billion on external management and performance fees during its 2014 fiscal year. While that figure sounds astronomical, it was only 51 basis points of the fund’s $313 billion investment portfolio (as of June 30).
By investment type, real assets accounted for 54.4% of the total. The $866 million paid to real asset managers was split between $206.3 million in management fees and $660.1 million in performance fees.
Private equity was next at 27.6%. No breakdown was provided between management and performance fees for the $439.8 million paid to PE managers.
CalPERS' absolute-return program -- which the fund announced would be closed in 2014 to "reduce complexity and costs" -- accounted for 8.2% of its total. The $129.9 million paid to absolute return managers was split between $68.4 million in performance fees and $61.5 million in management fees.
