Investment Oversight 60th Quarterly ReportFrom: City of Dubuque, Investment Oversight Commission
To: MEMBERS of the CITY COUNCIL OF DUBUQUE
Regarding: Quarterly Report
In Accordance with Ordinance No. 50-92 (3) Sec. 2-231, City code, the City of Dubuque
Investment Oversight Commission (IOC) respectfully submits the 60th quarterly report.
The IOC members met on Apri123, 2008. The transactions reviewed through March 31, 2008
appear to be in compliance with the Articles in the Investment Policy.
Mr. Nick Zimmerman, V.P. of Business Development and Mr. Michael Maloney Senior Portfolio
Manager from U.S. Bank came before the Commission for the annual review of the funds they
manage for the City. Mr. Maloney presented information and answered questions relative to his
bank's investment management work. Mr. Maloney confirmed that investments with U.S. Bank
are in compliance with the City's investment policy. Mr. Maloney reviewed the portfolio
performance, treasury yield curve comparison, economic trends and fixed income conditions and
outlook. Mr. Maloney discussed the strategy for the portfolio based on his anticipated upturn in
price inflation versus the Federal Reserve's easing of interest rates in response to the sub-prime
mortgage crisis. A larger part of the portfolio has been invested in Money Market mutual funds.
This strategy is being used because of the flight to high quality bonds that make up the City's
portfolio. The price of high quality short term bonds has gone up and correspondingly the yield
fallen to the point where Mr. Maloney is uncomfortable to reinvest at these level. His intend is to
wait a little while until the emotion related to recent financial market calms down. This prudent
approach is appropriate given the high priority that is given to preservation of capital for the
City's accounts.
Ken TeKippe, Finance Director reviewed the schedule of funds managed by their department and
presented information on fees charged by the outside portfolio managers. The commission
reviewed activity on Certificates of Deposits that are being rolled over. There has been a
substantial decrease in the yield of new CDs. This is to be expected given the recent action by the
Federal Reserve. The IOC did receive communication from the Association of Public Treasurers
concerning recertification of our Investment Policy.
Respectfully submitted
~auC~assance
Paul Lassance
Chairman
Investment Oversight Commission