Pension funds weighed down by worsening demographics, and growing deficits they can’t reduce no matter how good their returns, have a clutch of options. Typically, those options include: increasing passive allocations and sinking assets into equity indices; boosting investment in private assets; and introducing a liability-driven investment strategy. The Public Employees Retirement Association of New Mexico’s (PERA) new chief investment officer, Dominic Garcia, 40, is taking the $16 billion portfolio in a fourth direction.