Information needed

Their resolution proposal, released after the meeting, stated that they would “contact two investment firms most in line with LMOA needs and goals to continue discussions with the expectation that the Board will subsequently select a firm to conduct a review … and manage LMOA investment funds…” In that proposal, they wrote that the proposed source of funding was “Not Applicable”! This proposal will end up costing the Lake’s homeowners anywhere from $40,000 to $70,000 annually to compensate the firm for services our skilled volunteer investors have provided without cost. The chosen firm’s fees will not vary whether or not they make any money for us.
At the meeting, I asked for their cost/benefit analysis and was told that one was not performed yet. One director spoke up and stated that this could end up costing tens of thousands of dollars. Unfortunately, her comment was shot down by other directors saying that it would not. Without a cost/benefit analysis, how could they know? The math is easy. We have about $7 million dollars invested and investment firms charge between .5 and 1.75 basis points for their canned investment approach.
Prior to that meeting, the volunteer Investment Committee of credentialed homeowners had for years managed and reported on our investments with great success. They tailored their investment strategy to the needs of our association. One example of their expert management of our funds, was recouping in only 2 ½ years, $700,000 that had been taken from investments to use for repairing our dams. Lest we forget, this was accomplished during the recession.
Sadly, the chair and one of two members of our Investment Committee have resigned. I speak for many when I say, “Thank You for volunteering hundreds (thousands?) of
hours ensuring that our cash was safely invested and for the excellent returns on investment you managed.”
I say to the Board of Directors, “Stop suppressing information, make it available to all directors and home owners the expected 5 to 7 days in advance so that our voices can be heard at the Board meetings, and show appreciation to the knowledgeable, dedicated volunteers in this association.”
I say to other homeowners, “Let your thoughts on this matter be known.”

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