February 16th, 2010

February IMET UPDATE Newsletter

IMET UPDATE

Issued February 2010

A sincere thank you from the IMET Board of Trustees and staff to everyone who was able to attend the Fourteenth Annual Participants' Meeting on Wednesday, January 27, 2010. The meeting was a huge success with our Keynote speaker Bill Rancic providing an entertaining and motivational discussion on how to leverage your skills, talents, and abilities to be successful in life. In addition, Jim Cavanaugh provided an IMET portfolio update from JP Morgan Asset Management and Irwin Lyons, Miller Cooper & Co., LTD presented IMET's annual audit.

The IMET membership elected Sue Stanish, Director of Finance for the Village of Willowbrook, as an at-large trustee. The membership was also pleased to ratify the selection of Jerry Ducay, Village Administrator for the Village of Frankfort, representing the Will County Governmental League; and John Marquart, City Administrator for the City of Oak Forest, representing the South Suburban Mayors and Managers Association to the IMET Board of Trustees.

IMET's Comprehensive Annual Financial Report (CAFR) has been mailed to participants who were not able to attend the annual meeting.

Although the economy languished in a deep recession for most of FY09 with the Federal Reserve Bank cutting the target interest rate to an historic low in December 2008, this interest rate environment, and resulting flight to quality and safety, proved beneficial for investors in both the IMET Convenience Series as well as the IMET 1-3 Year Series. The IMET Convenience Series return is pegged to the federal funds target rate as a minimum rate guarantee and is fully collateralized at 110%. In June 2009, IMET was able to enhance the yield in the Convenience Series with the addition of a unique CD product with our banking business partner. With strong and proactive leadership of the Board and staff, we identified this opportunity to bring a greatly enhanced rate to member's investment portfolios without any compromise in safety or liquidity to members. With the rate enhancement for the last quarter of the fiscal year, the IMET Convenience Series finished the year with a rate of 0.60% for FY 2009. Interest rates also proved beneficial for the IMET 1-3 Year Series, particularly due to the flight to quality and safety in US Government Securities, and IMET's portfolio managers at JP Morgan Asset Management continued to look for value and return in duration of investments. The IMET 1-3 Year Series finished the year with an outstanding rate of 4.60% for FY 2009. Combined net assets for both series increased by 61.4 percent during the fiscal year from $403,046,631 to $650,334,909.

IMET has added 23 new members since January 2009 and assets have grown by more than $251 million dollars during this same one-year timeframe.

IMET also expressed its indebtedness to Scott Bordui, Finance Director for the Village of Flossmoor, for his longstanding service to IMET. Scott had served as IMET's delegate from the South Suburban Mayors and Managers Association since January 1997. During his 13-year tenure, Scott served on IMET's Audit, New Products, Nominating, and Personnel Committees at varying times. Scott had graciously and effectively served as IMET's chair since 2004, and in January 2009 he assumed the Vice Chairman's position on IMET's Board. Prior to his tenure as Chair, Scott led the New Products Committee's 2003 efforts to develop the Convenience Fund product, which has proven to be instrumental in IMET's continued success.

Scott's service to IMET and its members has been invaluable. As we wish Scott a warm farewell from the IMET Board, we contemplate our good fortune that he will continue to serve on the New Products Committee.

The Illinois Metropolitan Investment Fund (IMET) is pleased to welcome a new participant to the IMET membership. Please join us in extending a warm welcome to: