Minutes_Investment Oversight Advisory Commission THE CITY OF Dubuque
AII4meric11 a City
DUB6kE r
Masterpiece on the Mississippi 2007-2012-2013
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Steve Reisdorf, Investment Oversight Advisory Commission
Jean Nachtman, Finance Director
RE: Un-approved Minutes of the October 26, 2016, Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: October 26, 2016
Commission members; Rachel Ferrero; Steve Reisdorf; and Gary Ruden; and City staff,
Jean Nachtman, Finance Director and Arielle Swift, Accountant were present.
1. The meeting was called to order at 3:10 p.m. in Conference Room Ain City Hall by
Acting Chairperson Steve Reisdorf. Finance Director Jean Nachtman, certified that
the meeting was in compliance with the Iowa open meetings law.
2. The oath of office was administered to reappointed commission member Gary
Ruden.
3. Gary Ruden moved that the minutes of the April 27, 2016 meeting be approved. The
motion was seconded by Rachael Ferrero and approved unanimously.
4. Matthew Slowinski, Vice President, Portfolio Manager, and Dave Mazza Vice
President — Director of Fixed Income Sales and Marketing presented for Dana
Investment Advisors.
Matthew reviewed the status of the City's portfolio. The portfolio is position to react
well to interest rate changes. The focus is on the adjustable rate sector. The
portfolio contains only highest rate Aaa, agency back securities. The effect duration
is 0.53. Anything below one is considered extremely conservative. In the first 9
months of 2016, the portfolio has experienced a $52,000 gain. Year to date
performance net of fees is 0.67%, with a 3 year average of 0.59% and since
inception rate of 4.22%. All three measures exceed the benchmark of the 3 month
treasury and the 1 year treasury.
Dana expects the Federal Reserve to raise interest rates in their December meeting.
Inflation, excluding food and energy (core CPI 2.2%) is above the Fed's 2% target.
The anticipation is that it will be in the 0.25% range. The assumption is that the Fed
will follow last year and not adjust rates again for six to nine months to allow markets
to adjust to increase.
US economy is strong. Post recession GDP has averaged only 2.09%. Third
quarter GDP is estimated to have grown 2.2%. The country is considered at full
employment when unemployment is between 4.5% and 5%. Current unemployment
numbers is 4.9%. Housing starts have been slower to recover, but fundamental
demand will drive them steadily higher. New single family home sales are picking up
on a national level. Corporate balance sheets are still flush with cash. There is
uncertainty in the business world where best to deploy cash. Elections and possible
tax policy changes, especially for funds deposited over sea, is adding to that
uncertainty.
Matthew Slowinski confirmed that Dana Investment Advisors is in compliance with
the City's current investment policy.
5. Jean reported that the City has not yet received a response on investment policy
submitted for recertification to the Association of Public Treasurers of the United
States and Canada.
6. The Commission reviewed the September 2016 quarterly investment reports.
7. Jean stated that $1 ,040,000 was withdrawn from the managed accounts. $330,000
from Dana, US Bank, and DB&T. $50,000 was drawn from FCT. The draw request
was based on available cash balance with each of the managers.
8. There was no communication from the public, commission or staff to report.
9. The next meeting of the Commission is scheduled for Wednesday, January 25,
2017, at 3:00 p.m. A representative from Dubuque Bank & Trust will be invited to
the meeting.
10.Gary Ruden moved that the meeting adjourn. The motion was seconded by Rachel
Ferrero, and approved unanimously. The meeting adjourned at 3:50 p.m.