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.
AI Snips
Chapters
Transcript
Episode notes
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.
Governance in Public Pensions
- Effective governance is crucial for public pensions. Separate administrative and asset management functions.
- Empower a professionalized board with a strategic focus, delegating implementation to qualified staff.
Talent and Compensation
- Attracting talent requires competitive compensation. Roughly half of public pensions offer incentive compensation.
- The remaining face challenges in competing with other institutions for qualified investment professionals.