Provider Profiles
Highland Associates
| Portfolio Construction |
| Highland's asset allocation model is centered around aligning assets with known liabilities. This includes factors such as debt costs, spending policies, and actuarial returns. By defining the liability, we can establish the portfolio's overall objective and make long-term strategic allocations using capital market assumptions. To tactically adjust based on short-term market dynamics, we incorporate our Diffusion Index and momentum indicators. Portfolio Tools, a proprietary optimizer program, then integrates return objectives and risk survey results to construct the portfolio. The allocations are stress-tested for different market scenarios, ensuring the organization can fund its healthcare mission. |
| Profile | |
| Business model§ | Proprietary/non-proprietary |
| Year entered into OCIO business | 2011 |
| No. of relationship managers/salespeople | 11 |
| No. of OCIO portfolio managers | 1 |
| OCIO % of total firm revenue | 61% |
| No. of clients, full discretion | 19 |
| Full Discretionary Assets | |
| Total full discretionary OCIO assets | $14.4b |
| Discretionary Assets by Fund Type | |
| Defined benefit | $2.8b |
| 401(k), 403(b) or other defined contribution plan | $1.2b |
| Endowments or foundation | $546.6mm |
| Health care pools (board designated, funded depreciation) | $9.8b |
| Other | $0mm |
| §OCIO only: Open-architecture (no proprietary products used): Investment outsourcing is only business line. OCIO + other: An open-architecture or manager-of-manager investment outsourcing platform as one of multiple business lines. Implemented consulting: A consulting firm that also has discretion over assigned assets. Proprietary/non-proprietary: An investment outsourcing platform that offers proprietary products alongside non-proprietary products. Other: An OCIO platform is something other than the types listed above. |