Investment Oversight 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 58th quarterly report.
The IOC members met on October 24, 2007. The transactions reviewed through September 30,
2007 appear to be in compliance with the Articles in the Investment Policy.
Joseph Veranth, CFA, Executive Vice President with Dana Investment Advisors made the fim's
annual presentation to the IOC. Mr. Veranth's presentation centered around the effect the
subprime mortgage squeeze is having on the financial markets and investments. Mr. Veranth
stated to the IOC that the portfolio managed by Dana had no exposure to Structured Investment
Vehicles (SIV ). He discussed what SIV are and explained the problem that some money market
mutual funds were encountering after having invested in SIV. Mr. Veranth verified that the Dana
portfolio was in compliance with the City of Dubuque Investment Policy. Dana's outlook is for
another interest rate cut this year, but they aren't anticipating a recession with strong employment
offsetting the problems in the housing sector of the US economy.
Ken TeKippe, City Finance Director gave the IOC a presentation of investment of $16.3 million
in project construction funds for the parking ramp project in the Port of Dubuque. He then
reviewed the schedule of funds managed by their department. Mr. TeKippe will check with the
other investment managers to determine if any of the other managed funds are exposed to SIV
market risks.
The IOC did not receive any communication or questions from the public.
Respectfully submitted
~1'auCGassance
Paul Lassance
Chairman
Investment Oversight Commission