Investment Overisght Advisory Commision 70th Quarterly ReportFrom: City of Dubuque, Investment Oversight Advisory 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 Advisory Commission (IOC) respectfully submits the
70 quarterly report.
The IOAC members met on October 27, 2010. The transactions reviewed
through September 30, 2010 appear to be in compliance with the Articles in the
Investment Policy as further noted below. A representative from Dana Investment
Advisors came before IOC for their report on funds managed for the City. Mr. Joe
Veranth thanked the IOC for letting Dana manage City funds since 1989. Mr. Veranth
presented the performance review through September 30, 2010. Mr. Veranth stated
that, in the 21 year period Dana has managed funds for the City, the average annual
return is 5.64% which is 1.80% above the average return on the three month treasury
and .96% above the average return on the one year treasury index. This was done
primarily through their `buy and hold' strategy and their investment in mortgage backed
bonds. Mr Veranth noted that Dana is currently adding TIPS (Treasury Inflation -
Protected Securities) to the portfolio which adds liquidity and cheap inflation protection.
Mr. Veranth noted that he expects rates to stay low for an extended period of time. Mr
Veranth concluded by stating that Dana practices are in compliance with IOC policies.
Mr. TeKippe reviewed manager returns and fees. Mr. TeKippe noted further that
U.S. Bank and Dana had both transferred its share of funds for management to First
Community Trust (FCT), making all transfers to FCT complete.
The IOC next meeting date was set for January 26, 2011 and the presenter will
be Dubuque Bank and Trust.
Respectfully submitted,
Hiram Melendez
Acting Chairman
Investment Oversight advisory Commission