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US pension funds turn to alternatives

While this may spell higher returns, it may also bring about increased risks, higher fees and lack of transparency

Ms Raimondo: Declined to be interviewed about the problems highlighted in the Benchmark report, which contends that hedge fund managers are earning rich fees that could otherwise be used to shore up state pension. - PHOTO: BLOOMBERG

TODAY'S low-interest-rate environment has made the hunt for investment income tougher than ever. Many overseers of public pension funds, desperate to bolster returns and meet ballooning retiree obligations, have turned from traditional investments like stocks and bonds to hedge funds and private