April 15 (Bloomberg) -- The California Public Employees’Retirement System, the largest U.S. pension, paid Wall Street firmsalmost $1.2 billion last fiscal year to manage investments, up 20percent from a year earlier.
Calpers said fees paid to external firms for performance morethan doubled in the year that ended June 30 to $377.6 million, upfrom $165 million the previous year, according to a report releasedyesterday. Base fees declined 2 percent to $790.5 million. The fundhad $285.8 billion under management as of April 14.
Calpers earned 13.2 percent last fiscal year, almost double the7.5 percent it said it needs each year to cover the costs ofbenefits promised to retirees. After losing almost a quarter of itsvalue in 2009, the fund has made 3.5 percent in the five years thatended June 30.
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