Chicago Policemen's Annuity & Benefit Fund committed $20 million to Eagle Point Credit Management's open-end collateralized loan obligation strategy, said Aoifinn Devitt, the $2.6 billion pension fund's chief investment officer, in an email.
The commitment, made at a March 22 board meeting, is the pension fund's ninth to a private credit strategy in the past 18 months, bringing the total allocation to the asset class to about $150 million.
The pension fund is building out its opportunistic credit allocation, which has an 8% policy target. As of Sept. 30, the actual allocation to opportunistic was 4.5%.
Funding for the Eagle Point Credit Management commitment will come from redemptions of $10 million each from existing fixed-income managers Manulife Asset Management and Wells Capital Management, Ms. Devitt said. After the reduction, Manulife will have about $123 million under management in an active unconstrained global fixed-income strategy and Wells Capital will have about $112 million in an active U.S. core bond approach.