The Investments Committee is to oversee the investment funds (Operating Fund) of the Association and its divisions. The committee sets investment policies, 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 financial periods. The committee 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 adjustments are made to the various asset allocation classes.
After paying $2,450,301 in expenses and disbursements throughout the fiscal year, the market value of the Operating Fund on June 30, 2006, was $13,857,343. This represents a 4.4% increase of $584,832 over the previous year’s market value.
Of that total, 1% was invested in short-term cash accounts, 68% in equities, 19% in fixed income funds, and 12% in other assets. The Investments Committee retains Larry Thompson & Associates, Inc. to assist with our financial planning process.
The Investments Committee held meetings in Tulsa on Oct. 24, 2005, and April 24, 2006. Minutes from those meetings are posted to the Investments Committee Web page.
At the October and April meetings, the committee (1) received the Executive Director’s report on the Association; (2) discussed the overall market’s performance; (3) reviewed and balanced asset allocations; (4) reviewed the operating fund’s portfolio performance; (5) received an update/review of the GeoVe$t pension fund; (6) prepaid $750,000 toward a $2,000,000 loan; and (7) discussed other business.
Committee members: George Bole, John Brock, Ed Heath, Sherman Hollabaugh, Terry Hollrah, Dick Howell, Jim McGhay, Terry O’Hare, Pierce Pratt, Rod Tillman, and Clint Moore (Executive Committee liaison).
Participating members of the Headquarters Pension Fund Committee: Rick Fritz, Jim Blankenship, Bryan Haws, David Lange, Larry Nation, and Anne Payne.