If you can imagine being tapped to be an interim Chief
Investment Officer during the pandemic, then you can imagine Kristin Varela’s
nerves of steel and cool-headed acumen when she applied herself to her first
CIO role. Lauded by CIOs in the industry as a future ascendant to watch, the former
interim was just selected out of more than 200 applicants to become The
Employees’ Retirement System of the State of Hawaii (ERS)’s new chief
investment officer, effective January 17, 2023.
The ERS Board of Trustees approved Varela’s appointment
after a nationwide search by the firm Kumabe HR. She will replace Elizabeth
Burton, who left the fund in June to join Goldman Sachs Asset Management.
Acting CIO Howard Hodel, who was with the fund since 2014, is planning to
retire in 2023.
“It’s an honor and an
enormous privilege to be appointed to this position,” Varela said in a written statement.
“I am excited to join such a prestigious team and look forward to serving the
hard-working employees of Hawaii.”
Said Trustees Chair Vince Barfield: “I join the board and
staff in welcoming Kristin to our team. She comes highly experienced in the
public plan arena and is particularly skilled in the institutional risk and
asset classes that are the underpinnings of our successful investment strategy.
We look forward to her leadership in further strengthening our program.”
Varela holds nearly 15 years of experience in the
institutional investment industry and has served in the public and private
sectors throughout her career. As the deputy CIO for the Public Employees
Retirement Association of New Mexico, she was appointed interim after Dominic
Garcia departed in May 2021 and she oversaw the implementation of a
$17 billion pension portfolio, ensuring the long-term solvency of the plan that serves more than 90,000 active and retired members.
Her specialties are in risk–based
asset allocation, innovative investment solutions, and prudent portfolio
implementation, and she brings broad expertise in modeling, market analysis,
and manager-specific due diligence across various asset classes of public,
private, and alternative markets.
ERS Executive Director Thomas Williams said: “Public funds
always benefit from hiring the best talent available. While a specific fund’s
staffing needs may evolve over time, a constant is outstanding intellect,
character, commitment, competence, and vision. Kristin checks all these boxes
and more.”
By Christine Giordano