Investment Performance

July 7, 2017

(Performance returns are time-weighted and net-of-fees)

Investment portfolio income is a significant source of revenue to PERA. The Investment Committee, a subcommittee of the Board, is responsible for assisting the Board in overseeing PERA’s investment program.

In 2016, there was net investment income of $3.3 billion compared with total member contributions of $879 million and employer contributions of $1.5 billion.

For the year ended December 31, 2016, the total fund had a rate of return of 7.3 percent on a market value basis (does not include the two Defined Contribution and Deferred Compensation Plans).

PERA’s annualized rate of return on a market value basis over the last three years was 4.8 percent, and over the last five years it was 8.5 percent. Over the last 10 years the rate of return was 5.2 percent. The 35-year, annualized, gross-of-fees rate of return for the pooled investment assets was 9.8 percent. All returns do not include the two Defined Contribution and Deferred Compensation Plans.

PERA’s investment strategies reflect our mission, which is to promote long-term financial security for our membership while maintaining the stability of the fund. Specifically, the fund is to be broadly diversified across and within asset classes to limit the volatility of the total fund investment returns and limit the impact of large losses on individual investments.

The Board sets the ranges and targets for each asset class in PERA’s investment portfolio. 

The charts to the right detail the asset allocation for the PERA investment portfolio as well as PERA’s investment returns compared to its policy benchmark and the BNY Mellon Performance and Risk Analytics’ and Investment Metrics’ Median Public Fund Universe.

Largest Equity Holdings by Fair Value

(Does Not Include the Two Defined Contribution and Deferred Compensation Plans)
As of December 31, 2016

  Shares Fair Value
Apple Inc. 3,739,518  $433,111,000
Microsoft Corp. 6,252,748 388,546,000
Alphabet Inc. 383,863 304,192,000
Amazon.com, Inc. 314,065 235,508,000
JP Morgan Chase & Co. 2,449,495 211,367,000
Chevron Corp. 1,477,504 173,902,000
Facebook Inc. 1,382,845 159,096,000
Accenture Plc. 1,321,851  154,828,000
Visa Inc. 1,890,553 147,501,000
Merck & Co. Inc. 2,488,166 146,478,000

The top ten holdings do not include holdings within commingled funds.

PERA’s Form 13F filing may be viewed at the Securities and Exchange Commission website. Reports to the SEC are filed quarterly.

Asset Allocation at Fair Value

(Does Not Include the Two Defined Contribution and Deferred Compensation Plans)
As of December 31, 2016

Asset allocation at fair value pie chart

Interim Target Allocation

(Does Not Include the Two Defined Contribution and Deferred Compensation Plans)
As of December 31, 2016

Interim target allocation

Comparison of Colorado PERA Fund Investment Return (Annualized) 

(Does Not Include the Two Defined Contribution and Deferred Compensation Plans)
As of December 31, 2016 

Investment Return vs Benchmark graph