Watertown (Mass.) Contributory Retirement System adopted a new asset allocation. The new mix is 16.5% domestic large-cap stocks; 15% domestic midcap stocks; 14% domestic small-cap stocks; 14% EAFE index stocks; 20% core domestic bonds; 4.5% domestic high-yield bonds; 4% international bonds; 7% real estate; and 5% alternative investments, a new asset class. The previous asset allocation was: 52.3% equities; 26% bonds; 4.8% cash; 5.6% real estate; and 11.3% international investments.
The $67 million system likely will search for an international bond manager and an alternative investments manager, said Barbara Sheehan, executive secretary. No date for issuing RFPs has been set, and mandate sizes are as yet undetermined.