Annual Report 2007: FY July 1, 2006-June 30, 2007
Investments Committee
The purpose of the Investments Committee is to oversee the investment funds (Operating Fund) of the Association and its Divisions. The committee sets investment policies, Annual Report 1753 determines investment allocations, selects appropriate mutual funds, and uses financial planning services to accomplish plans and set goals. The treasurer serves as an ex-officio member and no other member of the Executive Committee may serve on the Investments Committee.
The Operating Fund was established in 1974 to provide AAPG with financial resources to weather adverse periods in the industry. The Investments Committee oversees and is charged with the responsibility of prudent investment of the funds. The Executive Committee has sole discretion to use or dispose of the funds in the Operating Fund as circumstances require. In 2002, the Investments Committee created an investment policy that sets forth the investment structure for managing the Operating Fund assets. The policy is reviewed annually and minor adjustments are made to the various asset allocation classes.
After reviewing performance, asset allocations and the transfer of $1 million to the portfolio, the market value of the Operating Fund on June 30, 2007, was $14,146,386. This represents a 2.1% increase of $289,043 over the previous year’s market value. Of that total, 13.1% was invested in short-term cash accounts, 66.9% in equities, 8.7% in fixed income funds, and 11.3% in other assets. The Investments Committee retains Larry Thompson & Associates to assist with our financial planning process.
The Investments Committee held meetings in Tulsa on October 28, 2006, and April 30, 2007. Minutes from those meetings are posted to the Investments Committee Web page.
At the October and April meetings, the Committee: (1) received the Executive Director’s report on the Association; (2) discussed the overall market’s performance; (3) reviewed and balanced asset allocations; (4) reviewed the operating fund’s portfolio performance; (5) received an update/review of the GeoVe$t pension fund; and (6) discussed other business.
George R. Bole, Chair
Committee members: George Bole (chair), John Brock, Ed Heath, J. Sirman Hollabaugh, Terry Hollrah, Dick Howell, Jim McGhay, Terry O’Hare, Pierce Pratt, Rod Tillman and Randi Martinsen (EC Liaison). Participating AAPG Staff include Rick Fritz, Jim Blankenship, Bryan Haws, David Lange, Larry Nation, and Anne Payne.