Woburn (Mass.) Retirement System may adopt its consultant's recommendations to search for domestic small-cap growth, domestic midcap growth and international bond managers, all new asset classes, at its Oct. 26 board meeting, said Dick Zaccaro, the H.C. Wainwright consultant who is assisting.
The $55 million plan adopted a new asset allocation, which reduces the fund's allocation to domestic large-cap stocks.
Money for the new managers will come from reducing the Babson's portfolio; it currently manages 63% of the system's assets primarily in domestic large-cap stocks. Fund officials also are considering allowing Babson to invest up to 15% of its allocation, or approximately $5 million, in domestic midcap value and small-cap value stocks.
The system also has agreed to give Irish Life, an international equities manager, an additional $1.5 million, which probably will come from employer contributions.