San Bernardino County Employees Retirement Association
File #: 19-1023.1    Name:
Type: Information Item
File created: 8/18/2020 In control: BOARD OF RETIREMENT
On agenda: 9/3/2020 Final action:
Title: Ares Manager Update.
Attachments: 1. Exhibit A: Ares Presentation
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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FROM:                                            Don Pierce, Chief Investment Officer

 

SUBJECT:                                            Informational:  Ares Manager Update

 

RECOMMENDATION:

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Ares Manager Update.

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BACKGROUND:

Founded in 1997, Ares is a global alternative investment manager with ~$150 billion of assets under management.  The firm has over 1,200 employees spread across 25 offices globally, and the business focuses on three distinct but complementary investment groups: Credit (~75% of AUM), Private Equity (~15%) and Real Estate (~10%).

 

Ares currently manages approximately $650 million for SBCERA in a credit-focused MCA, with the account spanning investments across public and private markets.  The relationship began in 2008 with an initial $30 million investment into Ares’ ECO fund, and evolved with the establishment of the MCA in 2013.  Since inception, SBCERA’s investment with Ares has generated a blended net annualized return of approximately 8% (as of June 2020).

 

On a calendar year-to-date basis, the Ares MCA is down approximately 9%, with structured credit as the largest laggard in the portfolio.  Ares remains excited about the opportunity set and potential upside in the portfolio and is here to discuss both in the context of today’s market environment.

 

COMMITTEE REVIEW:

This item was reviewed by the Investment Committee at its August 11, 2020 meeting.

 

BUDGET IMPACT:

None.

 

STRATEGIC PLANNING GOAL/OBJECTIVE:

Prudent Fiscal Management

 

STAFF CONTACT:

Thomas Kim

 

ATTACHMENTS:

Exhibit A:                     Ares Presentation