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.

Our Approach to Investment Stewardship

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

• Protect members’ interests by closely monitoring costs.
• Integrate relevant factors into investment strategy.
• Advocate for robust markets and shareholder rights.
• Evaluate exposures and recognize limitations.

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.

How Much It Costs to Manage Plan Assets

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.

Why Experience Matters

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.

We Use Our Expertise to Lower Costs

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.

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 Investment Stewardship Digital Snapshot or download the Investment Stewardship Report to learn more about how we stay true to PERA’s mission through sound investment stewardship.