Unnecessary Dread

Earlier this week I had a meeting with one of my corporate clients. They are a non-profit organization and I help them manage their investment portfolio. I love the organization, their mission, and the people but I was still dreading the meeting. I knew it wasn't going to be pretty; their investment results have been less than expected. When you are asked to sit down with the finance committee to discuss their account… well, you just know they aren't throwing you a party.

While cordial, there was no beating around the bush. The chairperson started the meeting with "Art, our account is down. Why don't you tell us where we are, how we got here, and what you think we should do." I reviewed their account, the strategy we were using, and was quite frank about where things had gone astray. They asked questions about different scenarios going forward.

No one was happy about the situation, but I expected to feel some wrath about the results. I didn't.

Instead the organization saw this as an opportunity to visit their investment policy and goals. I was surprised to learn they recently discovered an investment criteria section in their fiscal policies manual which was mostly copied from a template a consultant gave them. There was never really much thought put into it originally and it was never updated as the financial world around them changed.

The ensuing discussion was invigorating and liberating. A healthy discussion among various members of the committee was started to update what the organization should do with their money; how much risk they were willing to take; and establish socially responsible boundaries.

I had been dreading the meeting but I wish I had not fretted about it so much. All I can do is tell the truth, and as in the cliché I was set free. The organization will be better after the discussions which started today, and I will be better positioned to serve them well.