Highland Consulting Associates, Inc. ("Highland Consulting") is a registered investment
adviser with the U.S. Securities and Exchange Commission under the Investment Advisers
Act of 1940. Highland Consulting began conducting business in 1993. Highland Consulting
Associates International, Inc. ("Highland International") is a wholly owned subsidiary of
Highland Consulting. Highland Consulting and Highland International have the same principal
office and place of business in Cleveland, Ohio.
Highland International is a registered investment adviser with the U.S. Securities and
Exchange Commission under the Investment Advisers Act of 1940 and registered as an
adviser in the category of portfolio manager with the Ontario Securities Commission.
Highland International was formed to provide investment consulting services to institutional
clients located outside of the United States. Highland International began conducting
business in 2016.
Listed below are Highland Consulting's principal shareholders (i.e., those individuals and/or
entities controlling 25% or more of this company).
• Highland Consulting Associates, Inc. Employee Stock Ownership Plan
Highland Consulting offers the following advisory services to our clients:
INVESTMENT ADVISORY SERVICES
Highland Consulting provides investment advisory services. We provide continuous advice to
clients regarding investments based on the individual needs of each client. Through
discussions in which goals and objectives based on each client's particular circumstances are
established, we assist the client in developing an investment policy and base our services on
that policy. During our data-gathering process, we help determine each client’s individual
objectives, time horizons, risk tolerance, and liquidity needs. As appropriate, we also review
and discuss a client's prior investment history, and, if applicable, a client's family composition
and background.
Highland Consulting has historically served its clients on a non-discretionary basis. This
means that the firm had no discretion over the specific investments held in client portfolios.
There are a few cases where Highland Consulting has discretion. Account supervision is
guided by the client's stated objectives (i.e., maximum capital appreciation, growth, income,
or growth and income), as well as tax considerations.
Clients may place restrictions on investments related to certain securities, types of securities,
or industry sectors.
Our investment recommendations are generally limited to mutual funds, ETFs, hedge funds,
private equity funds, venture capital funds, private placements and other money managers.
Highland Consulting may use other securities as well to help diversify a portfolio when
applicable and may include advice regarding the types of investments held by the various
products mentioned.
Because some types of investments involve certain additional degrees of risk, they will only
be implemented/recommended when consistent with the client's stated investment
objectives, tolerance for risk, liquidity and suitability.
As part of the process, we will assist the client in reviewing and monitoring fees associated
with investments as well as other related costs (e.g. custody).
INSTITUTIONAL RETIREMENT PLAN CONSULTING SERVICES
Highland Consulting provides institutional retirement plan consulting services. The primary
clients for these services will be the plan sponsors of defined benefit and defined
contribution plans, however, we may also offer these services, where appropriate, to other
entities. Highland Consulting has historically served its clients on a non-discretionary basis.
This means that the firm had no discretion over the specific investments held in client
portfolios. There are a few cases where Highland Consulting has discretion.
Institutional Retirement Plan Consulting Services are comprised of four distinct services.
Clients may choose to use any or all of these services.
Investment Policy Preparation:
We will meet with the client to determine an appropriate investment strategy that reflects the
plan sponsor's stated investment objectives for management of the overall plan. Our firm
then assists with the preparation of a written investment policy detailing those objectives,
constraints, etc., including an encompassing policy under which these goals are to be
achieved. The investment policy also lists the criteria for selection of investment vehicles as
well as the procedures and timing interval for monitoring of investment performance.
Selection of Investments:
We will assist the client, where appropriate, in developing an asset allocation or asset
allocation model. We will also review various investment managers and available investment
vehicles, including mutual funds (both passive/index
and active/managed) to determine which
investments are appropriate to implement the client's investment policy. The number of
investments to be recommended will be determined by the client, based on the investment
policy.
Monitoring of Investments:
We monitor client investments continually, following the procedures and timing intervals
delineated in the investment policy. We monitor the client's portfolio, including individual
managers, and will make recommendations as market factors and the client's needs dictate.
As part of the process, we will assist the client in reviewing and monitoring fees associated
with investments as well as other related costs (e.g. recordkeeping, custody, etc.).
Employee Communications:
For retirement plan clients with individual plan participants exercising control over assets in
their own account (''self-directed plans''), we may also provide educational support and
investment workshops designed for the plan participants. The nature of the topics to be
covered will be determined by us and the client under the guidelines established in ERISA.
The educational support and investment workshops will not provide plan participants with
individualized, tailored investment advice or individualized, tailored asset allocation
recommendations.
FAMILY WEALTH PLANNING
We provide family wealth planning services. The primary clients for these services will be
individuals, families, family offices, and business owners. Highland Consulting will obtain
information regarding a client's current situation from interviews and questionnaires as well
as from a review of other documentation. Based upon information obtained from the client,
we will prepare a written plan that summarizes the client's current situation and provides
recommendations. Should the client choose to implement the recommendations contained in
the plan, we assist them by working with their attorney, accountant, insurance agent, and/or
other adviser(s). Implementation of financial plan recommendations is entirely at the client's
discretion.
Depending on the client's situation, the plan may address any or all of the following areas:
Personal:
We review family records, budgeting, risk management, estate information, financial goals
and family relationships.
Tax and Cash Flow Analysis:
We analyze the client’s income and spending for past, current, and future years. We then
illustrate the impact of various scenarios on the client's ability to meet future goals.
Investments:
We analyze investment alternatives and their effect on the client's portfolio.
Insurance:
We review to ensure proper coverage for our client and identify areas that need to be
addressed. Primarily we review life, health, disability, liability and long-term care.
Retirement:
We analyze current strategies and investment plans to help the client achieve his or her
retirement goals.
Estate:
We assist the client in assessing and developing strategies to be effective and efficient in the
accumulation and transition of their wealth, their business and their values.
Financial Planning recommendations are not limited to any specific product or service offered
by a broker-dealer or insurance company. All recommendations are of a generic nature. We
will provide an analysis to clarify options and choices for our clients.
WRITTEN ACKNOWLEDGEMENT OF FIDUCIARY STATUS
When we provide investment advice to a client regarding a retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement
accounts. The way we make money creates some conflicts with a client’s interests, so we operate under
a special rule that requires us to act in a client’s best interest and not put our interest ahead of a client.
Under this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give
prudent advice);
• Never put our financial interests ahead of a client’s interests when making recommendations
(give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in a client’s
best interest;
• Charge no more than is reasonable for our services; and • Give a client basic information
about conflicts of interest.
AMOUNT OF ASSETS UNDER MANAGEMENT
As of 12/31/2023, we managed approximately $ 17,596,855,445 in client assets on a
nondiscretionary basis plus $ 238,614,866 in client assets on a discretionary basis.