YMCA Retirement Fund, New York, plans to invest in REITs for the first time, said Everett "Skip" Miller, vice president of alternative investments. The $3.4 billion plan will initially put around 2% of total assets into real estate, with some of the allocation going into a direct investment program; plan officials will talk to direct real estate managers later. The split between REITs and direct investments has not been determined. Funding will come from reducing fixed income, which is currently targeted at 39% of assets. An invitation-only search for a REIT manager is expected to begin early next year.