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"Why didn’t we have more money in the asset class that outperformed last year?" "Why don’t we add more money to the manager that just beat their benchmark?" "Why don’t we have a higher allocation to hedge funds in the portfolio?" These are questions that I have encountered from new committee members over the last 15 years of participating in hundreds of investment committee meetings.
The rotation of investment committee members on university, foundation, health-care and pension fund investment committees is a fact of life. Recently added members bring a fresh perspective and energy to the committee, yet in many cases they are new to the agreed upon investment structure and philosophy of the organization. Often newer committee members are quiet for the first few meetings as they try to understand the issues and committee dynamics. However, occasionally, newer committee members can be disruptive in committee meetings because they do not have the benefit of knowing why previous decisions were made.