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Investment stewardship is at the heart of Colorado PERA’s mission to provide retirement security for our members while ensuring the sustainability of the fund.



PERA has a team of over 50 investment professionals who manage plan assets with a high level of professional expertise and a sense of duty to our membership. Because we provide retirement and other benefits to current retirees as well as public employees for whom retirement is still years away, we are long-term investors. We seek out investments that are expected to create value over the course of decades at an overall low cost.



<h2 class="wp-block-heading">Our Approach to Investment Stewardship</h2>



At Colorado PERA, investment stewardship comprises four pillars that lay out our approach to managing plan assets:



<ul class="wp-block-list">
<li>Protect&nbsp;members’ interests by closely monitoring costs.</li>



<li>Integrate&nbsp;relevant factors into investment strategy.</li>



<li>Advocate&nbsp;for robust markets and shareholder rights.</li>



<li>Evaluate&nbsp;exposures and recognize limitations.</li>
</ul>







Underpinning that approach is fiduciary duty: PERA staff and Trustees are legally required to act in the best interest of members, and that obligation guides every investment decision.



<h2 class="wp-block-heading">How Much It Costs to Manage Plan Assets</h2>


<div class="wp-block-image">
<figure class="alignright size-medium"><a href="https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs.png"><img loading="lazy" decoding="async" width="287" height="300" src="https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs-287x300.png" alt="Bar chart showing comparison between internal and external asset management and costs. The left bar shows 38% external management and 62% internal management, while the right bar shows external costss account for 86% of expenses while internal is 14%." class="wp-image-67106" srcset="https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs-287x300.png 287w, https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs-978x1024.png 978w, https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs-768x804.png 768w, https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs-1467x1536.png 1467w, https://content.copera.org/wp-content/uploads/2026/09/internal-vs-external-assets-and-costs.png 1488w" sizes="auto, (max-width: 287px) 100vw, 287px" /></a><figcaption class="wp-element-caption">PERA relies on internal and external management of its funds to ensure a high level of performance while limiting fees. PERA manages about 62% of the investment portfolio in-house for $23.6 million; outsourcing this would cost an estimated $124.0 million.</figcaption></figure>
</div>


While there are always expenses associated with managing investments, PERA staff continually look for ways to cut costs and improve efficiency while maximizing value. To that end, we use a mix of internal and external asset management to generate risk-adjusted returns at low overall cost.



In 2025, we spent a total of $248.5 million on investment expenses for the $75.1 billion portfolio, which amounts to an expense ratio of 0.33%. That total includes external management fees and internal costs, such as staff compensation.



As of the end of 2025, we managed 62% of plan assets in-house at a cost of $23.6 million annually. If those same investments were managed by a third party, it would cost an estimated $124 million annually, demonstrating the significant savings we achieve by relying on our own investment experts.



<h2 class="wp-block-heading">Why Experience Matters</h2>



<figure class="wp-block-image size-large"><a href="https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic.png"><img loading="lazy" decoding="async" width="1024" height="542" src="https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic-1024x542.png" alt="A dollar bill with overlaid text describing PERA funding sources: 59 cents from investment income, 25 cents from employer and non-employer contributions (including disaffiliations and plan transfers), and 16 cents from member contributions and other additions (including purchased service)." class="wp-image-66062" srcset="https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic-1024x542.png 1024w, https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic-300x159.png 300w, https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic-768x407.png 768w, https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic-1536x814.png 1536w, https://content.copera.org/wp-content/uploads/2026/07/2026-dollar-bill-graphic-2048x1085.png 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></a><figcaption class="wp-element-caption">A visual representation of the share of each benefit dollar that comes from various sources, showing that investment income provides the largest share at 59 cents of every dollar.</figcaption></figure>



It’s hard to overstate the importance of PERA’s investments and the income they generate. Over the past 30 years, PERA’s investments have generated $94 billion in appreciation and income for the hundreds of thousands of Coloradans who have spent their careers in public service, funding nearly 60 cents of every dollar paid in benefits. In the past decade, PERA’s portfolio has earned an annualized return of 9.5% (net of fees), outperforming its benchmark, which earned 9.1% during the same period. That 10-year investment return puts PERA in the top 5% of public pension peers. In the context of costs, the plan has earned investment income of $25 for every $1 we’ve spent to manage plan assets over the past 10 years.



Providing such a large share of retirement income is a significant responsibility, which is why PERA prioritizes employing a skilled and knowledgeable team to the investment decisions that help us meet our long-term obligations.



Our team of more than 50 investment professionals is highly qualified and experienced, with an average of 19 years in the finance industry and professional degrees and certifications that include 26 Master’s Degrees and 28 team members who have earned the right to use the Chartered Financial Analyst (CFA) designation. PERA’s investment team puts their extensive knowledge and expertise to use every day for the benefit of our members and retirees.



Having such an experienced team allows PERA to manage more plan assets in-house to take advantage of cost savings; the 62% of assets managed internally includes 100% of the Fixed Income portfolio and 73.6% of the Global Equity portfolio. Additionally, 57.4% of the Real Estate portfolio is in a directly-held structure which improves objective alignment and lowers management costs.



The team also has a vested interest in the financial sustainability of the fund. Beyond fiduciary duty, every member of the investments team is also a PERA member. Serving as responsible stewards of plan assets isn’t just our mission, it’s our passion.



<h2 class="wp-block-heading">We Use Our Expertise to Lower Costs</h2>



In addition to watching costs in the PERA Defined Benefit (DB) Plan, our investments team uses its expertise to lower costs and empower members to save for retirement beyond the DB Plan. That includes the PERAPlus 401(k) and 457 Plans, which have seen significant reductions in fees over time so members retain more of their retirement savings.



<figure class="wp-block-image size-large"><a href="https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction.png"><img loading="lazy" decoding="async" width="1024" height="246" src="https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction-1024x246.png" alt="Graphic showing fee reduction in the PERAPlus 401(k) Plan from .66% in 2011 to .10% in 2025, an 85% decrease." class="wp-image-67105" srcset="https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction-1024x246.png 1024w, https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction-300x72.png 300w, https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction-768x185.png 768w, https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction-1536x369.png 1536w, https://content.copera.org/wp-content/uploads/2026/09/stewardship-401k-fee-reduction.png 1630w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></a><figcaption class="wp-element-caption">Costs are calculated as a weighted average of investment management fees and administration fees across all funds offered in the PERA 401(k) Plan. 2011 costs are represented as a percentage of average investments at fair value between January 1, 2011, and September 30, 2011, prior to the inception of the white label fund structure. Costs for 2025 are represented as a percentage of average investments at fair value between January 1, 2025, and December 31, 2025.</figcaption></figure>



The PERA Board has prioritized the reduction of fees in the PERAPlus plans, and through increased internal management of assets and negotiations with external managers, we’ve achieved an 85% reduction in fees for the PERAPlus 401(k) Plan over the past 15 years.



As of 2026, participants in the PERAPlus 401(k) Plan pay an administrative fee of 0.01% of assets, making PERA’s fees among the lowest in the industry.



Every member of the investments team is dedicated to PERA’s mission and the retirement security of the members we serve. Our sole investment objective has always been to maximize long-term, risk-adjusted returns to the portfolio in order to pay retirement benefits now and for generations to come.



Explore the <a href="https://www.copera.org/investment-stewardship-report-digital-snapshot">Investment Stewardship Digital Snapshot</a> or download the <a href="https://www.copera.org/investment-stewardship-report">Investment Stewardship Report</a> to learn more about how we stay true to PERA’s mission through sound investment stewardship.



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Creating Value Through Expertise and Stewardship