Watertown (Mass.) Contributory Retirement System is adding emerging markets equities as a new asset class for the $80 million system, and a search is under way for an active manager to run $3 million, confirmed Thomas J. Tracy, town auditor and a plan trustee. Funding will come from rebalancing. Plan officials are adding the asset class for greater overall diversification.
The system also is searching for an active high-yield bond manager to run $4 million; the portfolio's previous manager, Columbia Management, was terminated recently for organizational and performance reasons. Tom Gariepy, a Columbia spokesman, declined to comment. The money has been parked in a $7.5 million Lehman Brothers Aggregate Bond index fund managed by State Street Global Advisors.
Wainwright Investment Counsel is assisting on the searches. Plan officials hope to make selections by the end of the first quarter of 2006. However, Mr. Tracy said the timetable "might bump into April."
Separately, the system hired Arsenal Real Estate Funds to manage a $1 million value-added real estate portfolio. The system issued an RFP earlier this year and Wainwright assisted.