Investment Oversight Commission 66th Quarterly ReportFrom: City of Dubuque, Investment Oversight Commission
To: MEMBERS of the CITY COUNCIL of DUBUQUE,IA.
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 66th quarterly
report.
The IOC members met on October 28, 2009. The transactions reviewed through
September 30, 2009 appear to be in compliance with the Articles in the Investment Policy
as further noted below. Mr. Robert Leuty from Dana Investment Advisors, Inc. came
before the Commission for the annual review of the Funds Dana manages for the City.
Mr. Leuty presented information and answered questions relative to Dana's investment
management work. Mr. Leuty stated that investments with Dana are in compliance with
the IOC investment policy as they are AAA rated and of relative short duration. Mr.
Leuty reviewed the portfolio performance, treasury yield curve comparison, economic
trends and fixed income conditions and outlook. Mr. Leuty stated that the City portfolio
is made up of short duration securities fora 5.78% yield for nine months of 2009. There
does not appear to be any credit issues with the portfolio as our securities are high
quality. Mr Leuty expects interest rates to stay low at least through 2010. It was felt this
is due mainly to continued unemployment levels and slow GDP increases. In our follow-
up review of fees for advisory and custodial services, Mr. TeKippe will craft additional
inquiries to our service providers intended to result in the most reasonable fee attainable.
The IOC will be changing its policy at our next meeting in order to comply with State
auditors findings that one of our investment managers had three taxable municipal bonds
in its portfolio. These were sold and we are now in full compliance with the state. Due
to continued weakness in rates for new CD issues, Mr. TeKippe requested and received
"Investment Savings Accounts" in lieu of certificates of deposits from two banks. These
vehicles will provide grater interest income than current CD levels would provide. There
was a valuable flow of questions and answers at the meeting with the IOC manager
(Dana) as well as Finance Department staff. It is expected this type of interchange will
continue in future meetings.
Member Stephen V. Reisdorf was elected Chairman and is appreciative of the confidence
placed in him by the IOC members.
Respectfully submitted,
Stephen V. Reisdorf
Chairman
Investment Oversight Advisory Commission