On August 5, Colorado PERA released its 2022 Investment Stewardship Report highlighting how PERA works to promote the financial sustainability of the Fund. Members rightly want to know what steps we are taking to keep costs low, how we advocate for strong and fair markets and evaluate the portfolio through different lenses, and the ways we incorporate relevant factors into our investment strategies. The report addresses all of this in detail.
Now in its fifth year of publication, the Investment Stewardship Report demonstrates PERA’s responsiveness to stakeholders who value transparency into how PERA invests its funds on behalf of nearly 650,000 current and former public employees. Some have a laid-back curiosity about their pension and some spiritedly engage with interest about how we pursue the best financial outcomes for the Fund to provide retirement benefits for our members. The 2022 Report provides clarity to members’ questions over the years about PERA’s investment program. We’ve included:
- New content describing how PERA constructs a portfolio built to be resilient in pursuit of long-term financial sustainability
- Information on how PERA anticipates and reacts to market drivers instead of seeking to drive markets with our investments
- Expanded disclosures about how the PERA Board and staff consider climate-related and other environmental, social, and governance (ESG) themed factors in the management of the investment portfolio
- Exposures to various ESG themes within the PERA portfolio as a result of our financially-focused investment decisions
- Insights into PERA’s proxy voting and engagement activities, and why we choose these strategies over divestment
“I hope that anyone who reads the Investment Stewardship Report will be encouraged by our good stewardship of the Fund,” says Tara Stacy, PERA’s Director of Investment Stewardship. “PERA recognizes that people have varying opinions on how we should invest and in what sectors. Our priority is generating long-term financial value to provide a reliable pension for our members, and that is reflected in the 2022 Report.”
From the Report
- PERA saved an estimated $65 million last year by managing most plan assets in-house through a team of investment experts committed to our members’ financial longevity.
- In 2021, PERA engaged with more than 500 portfolio companies and fund managers about business governance matters that can affect PERA’s long-term investment value.
- PERA voted on nearly 69,000 proposals that came to ballot for shareholder consideration at public companies in 2021.
- PERA’s investments earned an annualized 10-year net return of 10.9%, as of December 31, 2021.
Get familiar with Colorado PERA’s investment stewardship in the following ways: