Capital Allocators – Inside the Institutional Investment Industry Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Apr 5, 2021
Dominic Garcia, CIO of New Mexico's Public Employees Retirement Association, shares insights from his extensive experience in public pension management. He discusses the complexities of risk-based investing and the critical separation of alpha and beta in portfolio strategies. Dominic highlights the challenges of achieving return targets in today's low-yield market and innovative approaches to tackle underfunding. He also touches on integrating cryptocurrencies into pension strategies and emphasizes the importance of authenticity and empathy in investment success.
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Dominic's Path to SWIB
- Dominic Garcia, CIO of New Mexico PERA, is a New Mexico native who started his career analyzing the state's pension and sovereign wealth fund.
- After a stint as interim CIO, he met David Villa at a NASIO conference, leading to a decade-long role at SWIB.
Early PERA portfolio
- Early in his career at New Mexico PERA, the portfolio was limited by a legal list to primarily public equities and bonds.
- A key initiative involved shifting to the Prudent Investor Act, enabling investments in alternatives.
SWIB Experience
- At SWIB, Dominic Garcia gained experience in separating alpha and beta, leveraging internal management, and constructing portfolios.
- He learned to prioritize risk management and observed best practices in pension management from global peers.