Quarterly Report #72_Investment Oversight Advisory CommissionFrom: 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
72 quarterly report.
The IOAC members met on April 27, 2011. The transactions reviewed through
March 31, 2011 appear to be in compliance with the Articles in the Investment Policy as
further noted below. Two representatives from US Bank Mr. Taylor Harwood and Mr.
Christopher Johnson came before IOC for their report on funds managed for the City.
US Bank presented the performance review through April 25, 2011. Mr. Harwood
stated that the YTD return is .08% gross of fees, which is above the YTD return of
Barclay's Intermediate Govt. Bond Index of .02 %. Mr. Harwood does not envision
interest rates rising until 3 or 4 quarter of 2012. Their current strategy is to keep
short durations. They currently have a $600,000 bond due in June with which they will
reinvest in 12 -15 month duration in anticipation of the higher rates when it is due. They
are planning on reducing their current cash holdings and investing in short duration
holdings. Mr. Harwood also stated that he thought S &P's recent negative outlook on
US debt would have little to no effect on rates. Mr. Harwood concluded by stating that
US Bank practices are in compliance with IOC policies.
Mr. TeKippe reviewed manager returns and fees for the year to date. 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. Mr. TeKippe also
distributed a handout response from DB &T in relation to their recent early sale of two
sizable bond sales which resulted in a realized Toss of $106,297. This Toss was offset
by the discounted price of a new bond purchase with a shorter maturity.
The next IOC meeting date was set for July 27, 2011 and the presenter will be
First Community Trust.
Respectfully submitted,
Gary Ruden
Acting Chairman
Investment Oversight Advisory Commission