(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
Interim Target Allocation
(Does Not Include the Two Defined Contribution and Deferred Compensation Plans)
As of December 31, 2016
Comparison of Colorado PERA Fund Investment Return (Annualized)
(Does Not Include the Two Defined Contribution and Deferred Compensation Plans)
As of December 31, 2016
