Public pension funds, governors, state treasurers, comptrollers, and the Service Employees International Union (SEIU), whose members participate in pension funds with more than $1 trillion in assets, have begun preliminary discussions about how to create this type of investment vehicle.
PS. On the fees issue I've just been reading Watson Wyatt's Defining Moments report which has quite a bit of interesting stuff in it for a relatively short report. They state quite clearly that pension funds are wasting an ever greater amount of money through investment costs, and suggest that there might be a backlash over fees in the future. I'll write it up shortly.