Investments
The Minnesota State Board of Investment (SBI) is responsible for the asset management of PERA’s retirement plans. Each investment program uses different investment vehicles to help our members reach their savings goals. By pooling the assets within each program, the SBI captures investment efficiencies.
The SBI manages the pension plans assets according to its investment beliefs, which include a commitment to long-term investment, the ability to pay benefits, and a mission to maintain retirement systems viability.
Every quarter, SBI publishes the Comprehensive Performance Report, which provides performance data for all asset classes within the following investment programs under SBI management.
Statutes Govern Investments
All of SBI’s investments are governed by the Prudent Person Rule and other standards codified in Minnesota Statutes, Chapter 11A and Chapter 356A. Statutes specify the types of investments that SBI are allowed to purchase along with the asset allocation mix.
Additional information about the SBI and investment policies, strategies, safeguards, activities, and returns can be found in the Investment Section of PERA’s Annual Comprehensive Financial Report (ACFR) on our Annual Reports page.
Pension Plans
The General (Coordinated), Police & Fire, and Correctional Plans participate in the Combined Funds investment program. Combined Funds represent contributions and investment earnings from the three statewide retirement systems, which include Public Employees Retirement Association (PERA), Minnesota State Retirement System (MSRS), and Teachers Retirement Association (TRA). The SBI is able to capture investment efficiencies by combining assets from active and retired public employees into one investment vehicle.
PERA has 46% of the total assets in Combined Funds, the largest amount from the three statewide retirement systems. The Combined Funds assets are allocated in public equity (domestic and international), fixed income, and private markets.
Total Performance (net of fees) as of March 31, 2025*
| QTR | FYTD | 1 YR | 3 YR | 5 YR | 10 YR | 20 YR | 30 YR | |
|---|---|---|---|---|---|---|---|---|
| Combined Funds | 0.1% | 4.5% | 6.3% | 5.3% | 11.6% | 8.3% | 8.1% | 8.6% |
*This chart is updated once SBI publishes the Comprehensive Performance Report (usually 2-3 months after the end of the quarter).
Learn more about asset allocation, investment vehicles, and performance on SBI’s Combined Funds web page.
Defined Contribution Plan (DCP)
The Defined Contribution Plan participates in SBI’s Participant Directed Investment Program. The Supplemental Investment Fund (SIF) is an investment platform that provides participants with the option to invest in many of the same pools as the Combined Funds in addition to a Stable Value Account and a Money Market Fund. Learn more on SBI’s Participant Directed Investment Program web page.
Plan participants designate a percentage of contributions to be placed in one or more of seven accounts of the Supplemental Investment Fund. Participants may change investment selections at any time and may also transfer all or portions of previously purchased shares from one account to another.
Total Performance (net of fees) as of March 31, 2025*
| QTR | 1 YR | 3 YR | 5 YR | 10 YR | |
|---|---|---|---|---|---|
| Balanced Fund | -1.7% | 6.5% | 5.6% | 11.4% | 8.1% |
| U.S. Equity Actively Managed Fund | -5.4% | 5.7% | 8.2% | 18.6% | 12.0% |
| U.S. Equity Index Fund | -4.7% | 7.2% | 8.3% | 18.4% | 11.9% |
| Broad International Equity Fund | 4.1% | 6.3% | 5.9% | 12.2% | 5.7% |
| Bond Fund | 2.8% | 5.2% | 1.0% | 0.7% | 2.0% |
| Money Market Account | 1.1% | 5.2% | 4.6% | 2.8% | 2.1% |
| Stable Value Account | 0.8% | 3.4% | 2.9% | 2.6% | 2.4% |
*This chart is updated once SBI publishes the Comprehensive Performance Report (usually 2-3 months after the end of the quarter)
The Investment Prospectus for the Supplemental Investment Fund is published annually on SBI’s Investment Prospectus web page and provides information regarding the investment options that are offered in the Fund.
Statewide Volunteer Firefighter (SVF) Plan
The Statewide Volunteer Firefighter Retirement Plan (SVF Plan) also participates in SBI’s Participant Directed Investment Program and Supplemental Investment Fund platform. The SVF Plan uses the Volunteer Firefighter Account under the SIF, which is a diversified fund invested in U.S. equity, international equity, fixed income, and cash. The objective of the account is to offer a balanced investment approach that will provide favorable long-term risk-adjusted returns. Learn more on SBI’s Fire Plans + Other Public Retirement Plans web page.
Total Performance (net of fees) as of March 31, 2025*
| QTR | 1 YR | 3 YR | 5 YR | 10 YR | |
|---|---|---|---|---|---|
| Volunteer Firefighter Account | 0.3% | 6.3% | 4.5% | 8.6% | 6.2% |
*This chart is updated once SBI publishes the Comprehensive Performance Report (usually 2-3 months after the end of the quarter).
The Investment Prospectus for the Volunteer Firefighter Account Investment Prospectus is published annually on SBI’s Investment Prospectus web page and provides information regarding the investment option that are offered to participants of the Statewide Volunteer Firefighter Plan.