MAY 18 - MAY 22 MIDWEEK UPDATE
May 20, 2020 - At HighGround, we understand that no two organizations are the same, so we gladly serve with your unique mission in mind. Should a need arise during this unprecedented time, our team stands ready to customize a solution just for you.
- While speaking to Congress at the first Quarterly CARES Act Report, Federal Reserve Chairman Jerome Powell, said the central bank, as well as Congress, might need to do more to support the American economy through the coronavirus recession. Per Powell, “There’s a lot more we can do. We've done what we can as we go. But I will say that we're not out of ammunition by a long shot.”
- Powell also stated that “assuming there is not a second wave of the coronavirus, I think you will see the economy recover steadily through the second half of this year. For the economy to fully recover people will have to be fully confident and that may have to await the arrival of a vaccine."
- The U.S. Energy Information Administration (EIA) expects global liquid fuels consumption to increase after the first half of 2020, leading to inventory draws for at least six consecutive quarters and ultimately putting upward pressure on crude oil prices that are currently at their lowest levels in 20 years.
Time Well Spent: Minding Your Mission During Uncertain Times
A few years ago, HighGround established the Client Solutions Team, a group dedicated to serving our current and future clients by, first, listening to your needs and, then, by creating and implementing investment strategies to strengthen your mission. This team combines investment expertise and communication efforts to ensure our clients’ questions are answered and goals remain in focus, both in good and bad market environments.
While you have been adapting to new work environments and overcoming new challenges, the Client Solutions Team has been maintaining a flexible focus to serve our clients best through these uncertain times. Here are just a few ways we’ve partnered with our clients over the past few months:
- Phasing clients into the equity markets: We often suggest phase-ins, or dollar cost averaging, when moving from a short-term investment to a long-term investment. An appropriately structured phase-in provides a logical approach to entering the market during volatile conditions.
- Creating or reviewing/updating Investment Policy Statements: Many clients have taken advantage of the shelter-in-place orders to revisit their Investment Policy Statements. It is a good time to review the various parts of the policy, such as the division of responsibilities and distribution guidelines.
- Providing continued investment guidance: We have held multiple calls with client board committees and staff to discuss markets and the resulting impact on their portfolios and plans. We are happy to field questions, offer advice, and discuss new considerations in light of the current market.
Is an OCIO Solution Right for You?
It is often in periods of uncertainty that organizations evaluate their investment program and consider whether they have sufficient resources to manage their portfolio internally. Hiring an investment manager to serve as an Outsourced Chief Investment Officer frees up organizational leaders to focus on their mission.
HighGround has the capability and expertise to carry out all investment management functions in a fully discretionary manner for our client partners. This is what is referred to as the Outsourced Chief Investment Officer, or OCIO, solution. HighGround Advisors was an early pioneer in the development of the OCIO model from 1930 to the institutionalization of the service through the creation of the HighGround Capstone Endowment Fund in 1951.
The OCIO market exploded with growth following the financial crisis in 2008 as demand from institutional clients of all sizes skyrocketed. Growth in this market is attributed to the following:
- Increased market complexity requiring greater expertise
- Lack of internal resources within organizations
- Additional fiduciary oversight suitable for the dynamics of investment management
- Desire for advanced risk management
HighGround is an experienced provider of nonprofit investment management, offering a range of solutions based on each client’s needs and resources. Our comprehensive approach takes into consideration factors that extend well beyond portfolio management. We take the time to gain insight into how your organization functions and what is critical to your success. Since our creation, HighGround has served as an Outsourced Chief Investment Officer (OCIO) to our nonprofit clients. If we are not already your trusted OCIO, we would welcome the opportunity to serve your mission in this way.
At HighGround, we are focusing on the peace that passes all understanding as we practice thinking on what is true, noble, just, pure, and excellent (Philippians 4:7-8). One small way we are doing this is by sharing online our Stories of Humanity, the moments of connection or acts of service we have witnessed in our local communities. We invite you to join us on Facebook and Instagram to read these stories over the next few weeks by following our #StoriesofHumanity posts.