
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p>Colorado PERA manages a portfolio of $66.7 billion on behalf of more than 700,000 members and benefit recipients. It’s a big job that requires a high level of skill and expertise, and PERA’s in-house investment team has a wealth of experience that helps us save money while adding value for our members and retirees.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">PERA’s approach to investment stewardship</h2>



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



<ul>
<li><strong>Protect</strong> members’ interests by watching costs.</li>



<li><strong>Integrate</strong> relevant factors into investment strategy.</li>



<li><strong>Advocate</strong> for robust markets.</li>



<li><strong>Evaluate</strong> exposures and recognize limitations.</li>
</ul>



<p></p>



<p>We work every day to protect the retirement benefits our members have earned throughout their careers. One of the ways we do that is through low-cost, high-quality internal management of the majority of our investments.</p>



<p>Our team of more than 50 investment experts is highly skilled with extensive investment industry experience. That expertise reduces the need to use outside managers, minimizing plan expenses.</p>



<p><strong>EXPLORE MORE:</strong> <a href="https://content.copera.org/investment-stewardship-report-digital-snapshot/" target="_blank" rel="noreferrer noopener">Investment Stewardship Digital Snapshot</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Internal management reduces costs</h2>


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><a href="https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail.png"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail.png" alt="Graphic explaining PERA's in-house investment expertise: 21 years average experience in investment management among internal investment experts; 61% of Total Fund managed in-house at a cost of ~0.05% of those assets; $70 million estimated annual savings due to internal investment management." class="wp-image-59798" width="387" height="261" srcset="https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail.png 774w, https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail-300x202.png 300w, https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail-768x518.png 768w" sizes="(max-width: 387px) 100vw, 387px" /></a><figcaption class="wp-element-caption">Click/tap to enlarge</figcaption></figure></div>


<p>As of the end of 2024, PERA managed 61% of all assets internally. By relying on our own staff, PERA maintains the flexibility to make investment decisions without paying high fees that often come with external management. PERA pays less than $4 for every $1,000 in the fund, saving an estimated $70 million annually in management fees that would have otherwise gone to outside experts.</p>



<p>“Internal management supports our ability to be agile in responding to market conditions while also saving PERA significant costs,” said Director of Fixed Income Keith Tayman.</p>



<p>Opportunities for cost savings can vary by asset class. For example, the team that manages the <a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-global-equity" target="_blank" rel="noreferrer noopener">Global Equity</a> portfolio—the largest of PERA’s asset classes—was an early leader in negotiating unbundled equity research and trading fees with broker-dealers. Strategies like that have helped PERA save 40% on annual spending with broker-dealers since 2011.</p>



<p>PERA’s investment team boasts an average of 21 years of experience. Such a high level of experience means staff can use their expertise and relationships with external managers to find additional opportunities for cost savings, such as negotiating lower fees.</p>



<p>“The long tenure of the Private Equity team positions PERA as a limited partner of choice,” said Private Equity Portfolio Manager Ryan Murphy. “Low turnover leads to stronger relationships with our partners. Stronger partnerships allow for preferred allocations and seats on advisory committees.”</p>



<p>PERA’s expertise in investment management is reflected in the inclusion of PERA staff in various industry organizations and advocacy groups. Our staff lend their knowledge and experience to groups such as the Council of Institutional Investors, Healthy Markets Association, the Public Company Accounting Oversight Board, and the Securities and Exchange Commission’s <a href="https://copera.org/pera-on-the-issues/pera-cio-coo-amy-c-mcgarrity-named-to-sec-advisory-committee" target="_blank" rel="noreferrer noopener">Investor Advisory Committee</a>.</p>



<p>In addition to the PERA Defined Benefit (DB) Plan portfolio, investment staff also work to reduce costs in the PERA Defined Contribution (DC) Plan and the PERAPlus 401(k) and 457 Plans by increasing internal management of assets and negotiating lower fees with external managers. For example, since 2011, the all-in costs of the PERAPlus 401(k) Plan have decreased by 83%. Effective in 2025, participants pay a flat monthly fee of $1 per plan.</p>



<p><strong>WATCH THE VIDEO:</strong> <a href="https://www.copera.org/pera-on-the-issues/how-colorado-pera-invests-for-long-term-retirement-security" target="_blank" rel="noreferrer noopener">How Colorado PERA Invests for Long-Term Retirement Security</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">The value of a low-cost investment program</h2>



<p>Investment income is the largest source of assets in the DB plan trust funds. Over the past 30 years, the portfolio has earned an annualized return of 8.4% and generated more than $88 billion for PERA members and retirees. Of every dollar a PERA retiree receives, 61 cents come from the investment income, while 39 cents come from contributions from members, employers, and the State.</p>



<figure class="wp-block-image size-full is-resized"><a href="https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail-1.png"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail-1.png" alt="A dollar bill showing the portion of PERA funding that comes from various sources: 61 cents from investment income, 23 cents from employer and non-employer contributions (including disaffiliations) and 16 cents from member contributions (including service purchases)." class="wp-image-59799" width="864" height="444" srcset="https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail-1.png 693w, https://content.copera.org/wp-content/uploads/2025/08/getattachmentthumbnail-1-300x154.png 300w" sizes="(max-width: 864px) 100vw, 864px" /></a><figcaption class="wp-element-caption">A visual representation of PERA funding sources.</figcaption></figure>



<p>As fiduciaries, every person on PERA’s investment staff is an expert committed to serving our members’ financial longevity. By working to reduce fees and other costs, the PERA investment team is able to keep more money available in the trust funds to invest on behalf of members. And that means a more secure, reliable retirement for Colorado’s public employees.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Learn more</h2>



<ul>
<li><a href="https://copera.org/investment-stewardship-report" target="_blank" rel="noreferrer noopener"><em>Investment Stewardship Report</em></a></li>



<li><a href="https://content.copera.org/investment-stewardship-report-digital-snapshot/" target="_blank" rel="noreferrer noopener">Investment Stewardship Digital Snapshot</a></li>
</ul>


How PERA’s In-House Investment Experts Reduce Costs, Add Value


<p>The date is set for this year’s Town Halls with PERA executives—they will take place on Tuesday, July 1.</p>



<p>PERA holds Town Halls each year after the release of the&nbsp;<em>Annual Comprehensive Financial Report</em>&nbsp;(ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees will release the 2024&nbsp;<em>ACFR</em>&nbsp;at its June 27 meeting.</p>



<p>There will be two Town Halls on July 1—one for retirees and one for active members—and both will be virtual with the option to participate online, on the phone, or on social media.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Event details</h2>



<p>Date and time: Tuesday, July 1</p>



<ul>
<li>10:00 a.m. MT (retirees)
<ul>
<li><a href="https://www.addevent.com/event/aT25846562" target="_blank" rel="noreferrer noopener">Add to calendar</a></li>
</ul>
</li>



<li>6:00 p.m. MT (active members)
<ul>
<li><a href="https://www.addevent.com/event/ZS25846749" target="_blank" rel="noreferrer noopener">Add to calendar</a></li>
</ul>
</li>
</ul>



<p></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">How to participate</h2>



<ul>
<li><strong>Online:</strong> Visit <a href="https://copera.org/townhall" class="broken_link">copera.org/townhall</a> to connect.</li>



<li><strong>Phone:</strong> Dial&nbsp;<a href="tel:833-380-07134">833-380-0713</a>&nbsp;at the time of the event or <a href="https://copera.org/about/pera-town-hall">register for a phone call</a>.</li>



<li><strong>Social media:</strong> Follow Colorado PERA on&nbsp;<a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>&nbsp;or&nbsp;<a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>.</li>
</ul>



<p></p>



<p>Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.</p>



<p>If you’re unable to attend either event, recordings will be available on our website afterward.</p>



<p>For more information or to register for an optional phone call, visit <a href="https://copera.org/townhall" class="broken_link">copera.org/townhall</a>.</p>


Save the Date: 2025 Town Halls Set for July 1


<p>We often receive questions from our members, lawmakers, and the general public who want to know: What does PERA invest in and how do staff manage the portfolio?</p>



<p>Every year since 2018, we’ve published the <a href="https://copera.org/investment-stewardship"><em>Investment Stewardship Report</em></a> to answer those questions and provide transparency into why and how PERA invests on behalf of nearly 700,000 members.</p>



<p>PERA’s approach to stewardship is guided by four main practices:</p>



<ul>
<li>We <strong>protect</strong> our members’ interests through cost-conscious investment management.</li>



<li>We <strong>integrate</strong> financially relevant factors into our investment decisions.</li>



<li>We <strong>advocate</strong> for robust capital markets and business practices.</li>



<li>We <strong>evaluate</strong> various exposures within our portfolios on an ongoing basis.</li>
</ul>



<h2 class="wp-block-heading">Protect</h2>


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2024/08/protect.png" alt="" class="wp-image-54008" width="278" height="278" srcset="https://content.copera.org/wp-content/uploads/2024/08/protect.png 371w, https://content.copera.org/wp-content/uploads/2024/08/protect-300x300.png 300w, https://content.copera.org/wp-content/uploads/2024/08/protect-150x150.png 150w" sizes="(max-width: 278px) 100vw, 278px" /></figure></div>


<p>Each person on PERA’s investment staff is an expert committed to serving our members’ financial longevity. We leverage that expertise to reduce the need to use outside investment managers, which saves money while adding value for our members.</p>



<p>As of Dec. 31, 2023, we managed approximately 60% of PERA’s Defined Benefit Plan assets in-house at a cost of about 0.05% of those assets. In the same year, internal management saved an estimated $65 million compared to the cost of externally managing those assets.</p>



<p>The PERA Board and staff also work to lower fees in the PERAPlus 401(k)/457 and PERA Defined Contribution Plans. For example, since 2011, we’ve been able to reduce the all-in costs for members to participate in the 401(k) plan by 82%. Lower fees mean participating members can save more money toward their individual retirement goals.</p>



<p><strong>RELATED</strong>: <a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-global-equity" target="_blank" rel="noreferrer noopener">Asset Classes Explained</a></p>



<h2 class="wp-block-heading">Integrate</h2>


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2024/08/integrate.png" alt="" class="wp-image-54010" width="278" height="278" srcset="https://content.copera.org/wp-content/uploads/2024/08/integrate.png 371w, https://content.copera.org/wp-content/uploads/2024/08/integrate-300x300.png 300w, https://content.copera.org/wp-content/uploads/2024/08/integrate-150x150.png 150w" sizes="(max-width: 278px) 100vw, 278px" /></figure></div>


<p>We invest for one purpose: To provide retirement income for our members. To that end, we consider various economic and business factors in our investment decisions with a focus on long-term financial results.</p>



<p>PERA’s integrative approach considers many aspects of businesses and markets that can have a financial impact on our investments. Those aspects may include factors that can be labeled as environmental, social, or governance-related (ESG). However, PERA does not have any ESG-themed mandates, nor do we screen our investments on specific ESG criteria when deciding whether to include them in the portfolio.</p>



<p>In 2023, the Colorado General Assembly passed Senate Bill 016, which requires PERA to publicly report on how we consider climate-related risks in our investments and operations. In response, we’ve augmented the 2024 <em>Investment Stewardship Report</em> with new insights into how we consider both risks and opportunities related to climate change.</p>



<p><strong>RELATED:</strong> <a href="https://copera.org/pera-on-the-issues/esg-making-sense-of-alphabet-soup" target="_blank" rel="noreferrer noopener">ESG: Making Sense of Alphabet Soup</a></p>


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2024/08/advocate.png" alt="" class="wp-image-54011" width="278" height="278" srcset="https://content.copera.org/wp-content/uploads/2024/08/advocate.png 371w, https://content.copera.org/wp-content/uploads/2024/08/advocate-300x300.png 300w, https://content.copera.org/wp-content/uploads/2024/08/advocate-150x150.png 150w" sizes="(max-width: 278px) 100vw, 278px" /></figure></div>


<h2 class="wp-block-heading">Advocate</h2>



<p>We promote fair and transparent markets by contributing our expertise to regulators and financial industry advisory boards in advocacy of best practices that serve long-term investor interests.</p>



<p>By engaging with portfolio management partners, public companies, and policymakers, we can encourage practices that are expected to be profitable over the long run, and with more transparency in the market, we can make better investment decisions on behalf of our members.</p>



<h2 class="wp-block-heading">Evaluate</h2>


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2024/08/evaluate.png" alt="" class="wp-image-54012" width="278" height="278" srcset="https://content.copera.org/wp-content/uploads/2024/08/evaluate.png 371w, https://content.copera.org/wp-content/uploads/2024/08/evaluate-300x300.png 300w, https://content.copera.org/wp-content/uploads/2024/08/evaluate-150x150.png 150w" sizes="(max-width: 278px) 100vw, 278px" /></figure></div>


<p>The PERA Board and staff monitor the investment portfolio on an ongoing basis. Our priority remains financial performance and seeking the best long-term, risk-adjusted returns so we can provide retirement income for our members in perpetuity.</p>



<p>As of Dec. 31, 2023, the PERA Defined Benefit Plan portfolio earned a one-year return of 13.4%, and over the past 10 years, the portfolio has earned an annualized return of 7.8%. In the past three decades, the investments we have made on behalf of the PERA membership have earned $82 billion, strengthening the longevity of the Fund.</p>



<p><strong>RELATED:</strong> <a href="https://copera.org/pera-on-the-issues/how-pera-prioritizes-financial-value-over-personal-or-political-values" target="_blank" rel="noreferrer noopener">How PERA Prioritizes Financial Value Over Personal or Political Values</a></p>



<p>Chief Executive Officer/Executive Director Andrew Roth underscored the importance of investment stewardship in fulfilling PERA’s purpose: “By maintaining our commitment to sensible investment practices and long-term performance, we continue to work toward our mission of providing retirement security for our members while ensuring the financial sustainability of the fund,” Roth said.</p>



<p><strong>Explore the </strong><a href="https://copera.org/investment-stewardship-report-digital-snapshot/" target="_blank" rel="noreferrer noopener"><strong>Investment Stewardship Report Digital Snapshot</strong></a><strong> or download the </strong><a href="https://copera.org/investment-stewardship-report" target="_blank" rel="noreferrer noopener"><strong><em>Investment Stewardship Report</em></strong></a><strong> to learn more.</strong></p>


Investment Stewardship Report Highlights How PERA Manages Plan Assets


<p>At Colorado PERA, we invest for one purpose: To provide retirement benefits to PERA members for generations to come.</p>



<p>It’s not just our mission, it’s our passion. And it’s the reason we prioritize financial value—not personal or political values—in our investment decisions.</p>



<h2 class="wp-block-heading"><strong>Fiduciary duty</strong></h2>



<figure class="wp-block-embed is-type-video is-provider-vimeo wp-block-embed-vimeo wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Prioritizing Financial Value Over Personal or Political Values" src="https://player.vimeo.com/video/863343330?dnt=1&amp;app_id=122963" width="640" height="360" frameborder="0" allow="autoplay; fullscreen; picture-in-picture; clipboard-write"></iframe>
</div></figure>



<p>PERA serves nearly 700,000 current and former public employees who have worked hard to make our Colorado communities better places to live. Each of those members counts on PERA to provide a retirement benefit they cannot outlive.</p>



<p>The PERA Board and staff have a fiduciary duty to those members. That means we’re required by law to act solely in the interest of members and benefit recipients, and we must manage the trust funds only for their financial benefit. We make every investment decision with that duty in mind.</p>



<p>Each PERA member is unique, with their own personal values that guide them. It would be impossible to invest based on personal or political values of our individual members or stakeholders. Our fiduciary duty demands that we do what’s right for the membership as a whole, and that means focusing on financial value.</p>



<h2 class="wp-block-heading"><strong>Prioritizing financial value</strong></h2>



<p>Our sole investment goal is to pursue the best risk-adjusted returns for our members. That means when we’re researching a possible investment opportunity or assessing an asset we already hold, our focus is on that investment’s ability to earn money over the long term.</p>



<p>We sometimes hear from stakeholders and others who want us to invest in some segments of the market or divest—sell our investments—from others based on their individual preferences or political beliefs.</p>



<p>That would be contrary to our mission and our fiduciary duty. Our approach involves finding companies, properties and investment funds that we believe will be competitive over time, allowing them to be profitable and generate returns to the portfolio.</p>



<p>Investing based on the financial interest of the whole PERA membership is our fiduciary duty, and we take it seriously because our hard-working members depend on us for their financial future.</p>



<p><strong>Learn more about Investment Stewardship:</strong></p>



<ul>
<li><a href="https://copera.org/investment-stewardship-report" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a></li>



<li><a href="https://copera.org/stewardship-snapshot" target="_blank" rel="noreferrer noopener">Digital Snapshot</a></li>



<li><a href="https://www.copera.org/stewardship-videos" target="_blank" rel="noreferrer noopener">Video Library: Investment Stewardship</a></li>



<li><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-global-equity" target="_blank" rel="noreferrer noopener">Asset Classes Explained</a></li>
</ul>


Tag Archives:

How PERA’s In-House Investment Experts Reduce Costs, Add Value

Save the Date: 2025 Town Halls Set for July 1

Investment Stewardship Report Highlights How PERA Manages Plan Assets

How PERA Prioritizes Financial Value Over Personal or Political Values

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