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How Government Pension Funds Are Dumping Active Managers
Episode 40 of The Fiscal Policy Podcast examines a quiet revolution in public pension fund investing: the shift from expensive active fund managers to low-cost passive index strategies. Lucas and Luna break down the numbers behind this trend, focusing on the California Public Employees' Retirement System (CalPERS), which moved over $50 billion into passive strategies in 2025. They explore why active managers have struggled to beat benchmarks, how this saves billions in fees for taxpayers, and what it means for the future of public pension fund returns. The episode also touches on the…
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