As an Outsourced Chief Investment Officer (OCIO), Highland’s experienced team can profoundly impact your investment plan’s trajectory. Increased oversight of an investment plan can result in improvements across the board.
Services are tailored to fit:
Expertise at your service:
- Lead Investment Advisor: Main point of contact for the strategic oversight of the portfolio. Directs the team.
- Access to Investment Decision Makers: Ultimate oversight for investment decisions and portfolio strategy is determined by The Highland Investment Working Group.
- Analyst: Assists in day-to-day operations.
- Team Members: Comprised of accounting and investment professionals, representing these areas: asset/liability analytics, performance reporting, accounting support, and custodial relations.
THE DISCRETIONARY BLUEPRINT
Our BLUEPRINT lists our entire menu of services. We can work with you to determine the structure and/or deliverables that are the right fit for your program.
Strategic Consulting
Highland’s focus is helping nonprofit clients manage risk while building their portfolios to fund mission goals. Our approach centers on tying asset allocations to specific objectives rather than creating portfolios in a vacuum.
Team-Driven Support
Every client is served by a dedicated team of Highland associates, offering multiple points of contact. Teams are assembled by matching expertise to client needs.
Fiduciary Education
Highland offers a multi-prong approach to client education. To support informed decision-making, client-specific classes are offered on topics such as asset classes, governance, best practices, and more. Our publications series provides ongoing commentary on market conditions and insights into relevant issues. And Highland’s national Investor Forum brings clients and industry leaders together to discuss economic and investment trends.
Research
Original research inform views on relative risk and return across asset classes and geographies. Deep and established networks and relationships help identify best investments regardless of affiliation.
Shared Fiduciary Responsibility
As a fiduciary, Highland always acts in the best interest of our clients. When our clients succeed, we succeed.
Spending Policy / Liabilities Analysis
Our asset allocation model matches assets to a known liability stream. The liability, once defined, whether cost of debt, spending policy, or an actuarial return, helps determine the overall objective of the portfolio.
Investment Policy Statement Development
As the overarching framework for the portfolio, the Investment Policy Statement establishes ranges for each approved asset class. To build this policy, we first identify the client’s return objective and overall risk tolerance. This information is gathered with a formal survey of the client’s management and committee. This feedback helps quantify and qualify the emotional risk tolerance and return expectations. Then, we establish the organization’s return objective. This may be based on cost of debt, spending policy, or actuarial return.
Portfolio Strategy
The building blocks of our portfolio strategy consist of 3 key components- strategic, structural and tactical.
Manager Selection
Highland operates a robust due diligence process: Managers are evaluated on their philosophy, process, and people. Only managers who have been vetted and approved are considered for client portfolios.
Trading
Portfolios are reviewed at least monthly to monitor target allocations relative to current allocations. If allocations are outside of desired targets, Highland will offer assistance (for advisory clients) or rebalance the portfolio accordingly (for discretionary clients.)
Reporting
Performance reports are compiled monthly and quarterly. These analytics track relative performance – benchmarks and peer groups, fees, attribution, and risk/return.
Back Office/Operational Support
Highland seeks to alleviate the operational strain on nonprofit staff, allowing them to focus on mission goals. We are able to assume responsibility for a multitude of tasks, from interfacing with client custodians and managers to document and trade preparation.