The $42 million Watertown (Mass.) Retirement System may launch a search for a real estate manager in the next several weeks to reach its target allocation of 5%. It currently has 2% invested in a fund with L&B. The fund also might look at alternative investments, although it has not set a target allocation to the asset class, said Joseph O'Reilly, the fund's consultant with Dahab Associates. Dahab will assist with the search.
In other changes, the fund increased its allocation to small-cap equities with incumbent Wellington by $2 million. It reduced its large-cap allocation with BayBanks by the same amount.
