Investment Policy at New England Healthcare

Posted: 5 Jul 2006

See all articles by Luis M. Viceira

Luis M. Viceira

Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)

Jay Light

Harvard Business School - Finance Unit

Akiko M. Mitsui

affiliation not provided to SSRN

Date Written: July 3, 2003

Abstract

SUBJECT AREAS: Asset Allocation, Asset management, Investments, Investment Management, Risk Management, Liability, Pension funds

CASE SETTINGS: New England; Health care industry; $4.2 billion revenues; 2003

This case examines the design of long-term asset allocation policies in the context of a large healthcare institution (New England Healthcare, or NEH) which has three long-term pools of funds: an endowment fund, a cash-balance (CB) pension plan, and a defined-benefit (DB) pension plan. The investment committee at NEH has traditionally adopted a "one size fits all" approach to asset allocation, and has chosen similar investment policies for the three pools of funds. However, upon examination of the different liability structures of these three funds, their relationship to each other, and the importance of these funds to NEH's operations, the investment committee is considering setting a different asset allocation policy for each.

Suggested Citation

Viceira, Luis M. and Light, Jay O. and Mitsui, Akiko M., Investment Policy at New England Healthcare (July 3, 2003). HBS Publishing Case No.: 9-204-018; Teaching Note No.: 5-206-112. Available at SSRN: https://ssrn.com/abstract=914201

Luis M. Viceira (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6331 (Phone)
617-496-6592 (Fax)

HOME PAGE: http://www.people.hbs.edu/lviceira

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jay O. Light

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States

Akiko M. Mitsui

affiliation not provided to SSRN

No Address Available

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