HomeMy WebLinkAboutInvestment Committee Minutes 2015-07-27 INVESTMENT COMMITTEE MEETING MINUTES
July 27, 2015
The Investment Committee held a regular meeting on July 27, 2015 at 4:05 p.m, at City Hall in
Friendswood,Texas. The following members were present:
Bob Bozka
Larry Collison
Allan Rasmussen
Cindy Edge, Investment Officer
Katina Hampton, Deputy Investment Officer
1. Committee meeting minutes from April 27, 2015 were reviewed and revised from securities "fees
can be lucrative for the firms" to reflect securities "fees can vary for the firms". The Committee
approved the revised minutes, unanimously, after a motion by Larry and second by Allan.
2. Committee discussed old business.
- Katina will confirm with the City Secretary's Office on receipt of the City of Friendswood
Volunteer Guidebook acknowledgement pages from committee members. If needed,
Katina will re-send the document to the committee electronically with a requested
return of the acknowledgement page.
- Cindy shared the results of the City's depository request for applications. Wells Fargo
will continue as the City's bank depository for the next five years. The new contract will
continue to allow the elimination of bank fees if account balances remain at a specified
amount. Additional interest earnings may be available to the City if bank fees are
covered.
3. Committee reviewed and discussed the quarterly investment report.
- Bob asked for a reminder of why Lone Star Investment Pool is reflected on the report
with a zero balance. Cindy explained that the City's account with Lone Star remains
open;although not currently utilized, in case of future use and that there is no penalty
for keeping the account open.
- As referenced in the April 27, 2015 committee meeting, Bob asked that a chart be added
to the quarterly investment report detailing the securities of the City's portfolio from
the quarter end date to the call date. Cindy stated the request can be completed for
future quarterly reports and that the chart would be a good picture of the portfolio.
- Cindy shared with the committee that cash on hand in the portfolio is a little heavy to
ensure current City operations can be covered as the City is nearing fiscal year end and
tax revenue deposits are tapering off until 2015 tax statements are delivered to tax
payers.
4. Committee discussed the U.S. and world economic markets.
- 10 year treasuries are down again,from 240 to 223
- Chinese market has a lot of volatility right now and is impacting the world currencies
and economic markets(including the U.S.)
- The U.S. Federal Reserve continues to consider raising interest rates. Larry shared his
thoughts that instead of the typical quarter basis point increases,the Reserve could
increase rates by a smaller amount and see if any changes are observed in the market.
Bob shared that European and Asian nations are using another method to try to
strengthen their economies called quantitative easing. The Federal Reserve previously
used the method to boost the U.S.economy by lowering interest rates to close to or at
zero and then buying bonds on the open market.
A strong dollar in the world economy may not be the best position because investors
can buy more in foreign markets where currencies have less value than the U.S.dollar.
Cindy shared that when shopping for securities,she's been able to get about 1%interest
rates. Currently, investment pools are yielding about 1.1%.
Bob shared the rates of return on U.S.treasury notes; 12 month—0.3%, 2 year-0.65%,
3 year—1.00%,5 year—1.56%and 10 year—2.21%
Larry shared that the State of Texas is looking to move all its gold from New York City to
Texas to save on the$3 million per year storage facility cost.
5. Larry motioned to adjourn and Allan seconded.
6. Meeting adjourned at 5:05 p.m.
Minutes approved by:
Cindy S. Edge
Investment Officer
Date Approved: May 16,2016