Colorado Public Employees' Retirement Association, Denver, is saving an estimated $45 million yearly by managing 60% of its assets internally, according to the $45.2 billion pension fund's 2019 Investment Stewardship Report.
The pension plan's second annual report outlines what it's done to be financially sustainable.
The report also notes that Colorado PERA has reduced the all-in costs for members to participate in its 401(k) plan by 68% since 2011.
"Our goal is to seek out investments that are expected to provide the best risk-adjusted returns to PERA's portfolio over the long term," said Colorado PERA chief investment officer Amy C. McGarrity in a news release. "We are dedicated to being good stewards of our members' dollars and are proud to share our efforts in this report."
Colorado PERA returned a net -3.5% for the fiscal year ended Dec. 31, 10 basis points above its policy benchmark return of -3.6%. For the year ended Dec. 31, 2017, the pension had a net return of 18.1%.
As of Dec. 31, the pension fund's actual allocation was: 53.4% global equities; 24% fixed income; 9.6% real estate; 8.8% private equity; 3.6% opportunity fund portfolio; and 0.6% cash and short-term investments.
