Investment Oversight Advisory Commission_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
71 quarterly report.
The IOAC members met on January 26, 2011. The transactions reviewed
through December 31, 2010 appear to be in compliance with the Articles in the
Investment Policy as further noted below. Two representatives from Dubuque Bank and
Trust (DB &T), Mr. Michael Flood and Ms. Rita McCarthy, came before IOC for their
report on funds managed for the City. DB &T presented the performance review through
December 31, 2010. Mr. Flood stated that since 12/31/1993, the average annual return
is 5.26% which is 1.69% above the average return on the three month treasury.
Returns YTD were 3.03 %, this trailed index due to the restrictive nature of the City's
investment policy along with other investors moving money into stocks. Mr. Flood does
not envision interest rates rising until 2012, although he did note that there was little
room for rates to fall. Their current strategy is to keep short durations, and they
currently have two large investments with two and ten year maturities. They are not
adverse to adding mortgage bond investments when risk benefits improve, and plan on
examining that possibility in a few months. Mr. Flood concluded by stating that DB &T
practices are in compliance with IOC policies.
Mr. TeKippe reviewed manager returns and fees for the year along with returns
for the past eight years. These historical returns will also be provided to the four
investment managers. Mr. TeKippe noted further that the City did not withdraw any
funds from the mangers since the last meeting and has no plans to do so in the near
future.
US Bank.
The next IOC meeting date was set for April 27, 2011 and the presenter will be
Respectfully submitted,
Gary Ruden
Acting Chairman
Investment Oversight Advisory Commission