Seattle City Employees’ Retirement System hired Ares Management as a corporate credit manager, said Tony Smith, deputy chief investment officer.
The $2.3 billion pension fund allocated up to $80 million to Ares’ institutional credit strategy, which focuses on high-yield bonds and bank loans.
It is possible part of Ares’ allocation could be reduced in the future to fund new managers in areas such as private credit, Mr. Smith said.
As of Dec. 31, the pension fund had a 5% target to credit fixed income.
