How PERA Invests Your Money
PERA manages more than $75 billion in assets for more than 730,000 members. It’s more than investing money. It’s promoting long-term financial security for our membership while maintaining the security of the fund.
There is more to investing than just the numbers. Let’s break down how PERA invests.
PERA’s Investment Approach
PERA’s investments are diversified to withstand market fluctuations over a long-time horizon. We evaluate our portfolios on an ongoing basis and through various lenses while also integrating financially relevant factors into our decision-making process.
PERA combines internal and external management to ensure its investment program produces competitive performance at a low cost. PERA has a 7.25% annualized expected return on its investments over a 30-year period. In 2025, PERA spent $248.5 million on internal and external investment management expenses, less than one-half of one percent of the total fund. The cost of PERA’s internal management in 2025 was $23.6 million, compared to the estimated $124 million it would have cost to outsource.
You can learn more about PERA’s investments approach through the Investment Stewardship Report.
Asset Classes
Asset classes are groups of investments with similar characteristics and market behaviors. Asset classes are used to diversify investment portfolios. PERA believes the most effective and efficient long-term investment strategy is to invest in a broad variety of asset classes that balances expected total rate of return with the volatility of expected returns, while ensuring an appropriate level of risk is incurred. The asset classes include global equity, fixed income, private equity, real estate, alternatives, and cash.
PERA’s Board of Trustees determines the desired target allocations and allowable ranges for each of the asset classes. Asset allocation is the process of dividing an investment portfolio among the different asset classes. Asset allocation helps to balance risk and return to meet an investor’s goals, risk tolerance, and timeline. The following graphic is PERA’s current target asset allocation.
This strategic asset allocation is the most significant factor influencing PERA’s long-term investment performance. While each asset class plays a different role in the portfolio, all are subject to the same disciplined investment process and high standards of oversight.
Visit the “Asset Classes” webpage to learn more about each of PERA’s asset classes.
PERA’s Capital Accumulation Plans (CAPs) include the PERAPlus 401(k) and 457 Plans and the Defined Contribution (DC) Plan. The PERAPlus 401(k) and 457 Plans are optional retirement savings plans for PERA members. The PERA DC Plan is an alternative to the PERA Defined Benefit (DB) Plan for certain eligible new employees who have the option to choose plans. The PERAPlus and DC Plans may be managed by individual plan participants according to their retirement savings and income objectives.
For more information on PERAPlus and DC Plan investments, visit the “Defined Contribution (DC) Plan Investments” webpage.
