PCO Final Farmers & Merchants Bank Champions Nico Escobar, Felipe Vercellino, Lucas Criado, Danny Walker and USPA Governor-at-Large Dennis Geiler.
In 2017, the Finance Committee and Meketa Investment Group further enhanced the USPA’s investment program by adding active management strategies for bank loans and bonds, which should provide downside protection and the potential for an enhanced return over bond indices. Investments continue to experience positive growth, with returns of approximately 13% for 2017. Early in the budget process for both years 2016 and 2017, the Finance Committee addressed the Association’s long-term goal of increasing the investment balance to an amount capable of selffunding operating subsidies of the USPA and its related entities as well as the importance of following the USPA’s 2015 selffunding mandate. The cornerstone of investment growth is in managing the amount required to subsidize program operations and the expected royalty revenues, which funds the DCA program designed to enhance returns through market cycles.
At the 2017 USPA Board of Governors and Annual Member Meeting in September, the Finance Committee recommended USPA Board approval of the Proposed 2018 USPA Budget at an operating subsidy level of $11,130,173, a $585,799 reduction, or 5%, from the amount originally proposed, with plans for another reduction of up to 10% for the 2019 budget year. This recommendation was based on lower than expected royalty income for the current year due to market conditions. At the 2016 USPA Annual Meetings, the USPA Board tasked the Finance Committee with researching, developing and drafting guidance for policies and procedures for use in large dollar asset purchases and/or entity acquisitions. A subcommittee was established for this purpose, resulting in a recommendation at the 2017 Annual Meeting to require a supermajority vote for any large dollar expenditures or purchases.
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