Skip to main content

The Trust for Credit Union’s (TCU) assets under management have surpassed $5 billion, setting an all-time record for the pool of institutional mutual funds for credit unions.

The Trust for Credit Unions (TCU) based in Washington, D.C., reported Tuesday that its two bond funds, the Ultra-Short Duration and Short Duration Portfolios, had total combined assets of $5 billion as of April 12, after attracting nearly $1 billion in new investments in a single month. It was nearing $3 billion in late November 2020.

TCU’s previous record was $4.1 billion, reached in March 2003.

CUNA has estimated that credit unions held $1.66 trillion in savings in February, 19.6% more than they held a year earlier. The gain of the previous 12 months ending February 2020 was 9.1%.

Surplus funds (cash plus investments) rose 48% to $653 billion as of Feb. 28, an increase of $210.5 billion over the previous 12 months.

As credit unions continue to seek competitive investment options to help them manage excess liquidity, TCU has attracted a record number of new credit union investors while continuing to assist their long-time institutional investor base.

TCU was founded in 1987 by credit unions to provide an option for diversifying their holdings of overnight and short-term funds from banks and the direct market. The funds were designed to be professionally managed and based on the cooperative values of credit unions.

The TCU Ultra-Short Duration Portfolio, which targets a three-month duration, had a 30-day yield of 0.23% as of April 12, while the TCU Short Duration Portfolio, which targets a two-year duration, had a 30-day yield of 0.48%. The yields reflect the 30-day effective yield, net of fees/expenses. Both funds offer next-day liquidity, feature no minimum or maximum investment amounts, and have no tiers.

The funds’ distributor is Callahan Financial Services, Inc., a subsidiary of Callahan & Associates, the Washington, D.C., credit union company.

“TCU has supported the industry’s investment needs for more than three decades, building a strong history of performance,” Jay Johnson, TCU president and Callahan & Associates’ chief collaboration officer, said. “We’re pleased to welcome new credit union investors as more cooperatives seek competitive options to put their excess liquidity to work.”

Created by leading credit unions with oversight by a board of trustees, TCU’s mutual fund options are professionally managed and based on the cooperative values of credit unions. ALM First Financial Advisors serves as the funds’ investment advisor, providing ongoing economic updates and educational resources for both current and potential investors.

Jason Haley, chief investment officer for ALM First, said the firm has managed short-duration fixed income portfolios for institutional investors for more than 25 years.

“We’re proud to share our knowledge and market insights regularly for the benefit of TCU investors and the entire industry,” Haley said.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Growing Your Credit Union Without Expanding Your FOM

For many firefighter and other credit union primarly serving first responders, growth often feels tied to one big decision: expanding the Field of Membership (FOM). But what if you didn’t have to? What if growth could come from within —by deepening relationships, increasing engagement, and capturing more of the financial lives of the members you already serve? The truth is: it can. But it requires a shift in strategy. Rethinking What “Growth” Really Means Most institutions define growth as adding more members. But for single-sponsor credit unions, especially those serving first responders, a more powerful definition is: Growth = more value per member Many members only use one or two products—often a checking account and maybe an auto loan. Meanwhile, larger banks capture mortgages, credit cards, and investments. The opportunity isn’t just new members. It’s: More products per member Higher balances per relationship Greater share of wallet Your Biggest Advantage: The First Responder Life...
Post a Comment
Read Complete Article HERE>»

When Vendors Price for Giants

 Grant Sheehan CCUE | CEO Opinion: When Vendors Price for Giants, They Shrink the Future of Small Credit Unions ! There’s a quiet squeeze happening in the credit union industry, and it’s not coming from regulators or competition from big banks. It’s coming from the very vendors that claim to support the ecosystem. For small credit unions, the problem is increasingly simple and factual: the tools required to compete with digital banking platforms, fraud systems, compliance software, analytics, and payments infrastructure are priced for institutions ten or even 100 times their size. The result is a market where access to essential services is determined not by mission or member need, but by asset size. This isn’t just inconvenient. It’s structurally threatening. Vendors often defend their pricing models as a reflection of complexity or scale. Larger credit unions have more users, more transactions, more integrations, so they pay more, and that seems fair on the surface. But t...
Post a Comment
Read Complete Article HERE>»

Fed still holds off on rate increase | 2015-07-30 | CUNA News

  WASHINGTON (7/30/15)--Citing “moderate” economic expansion, the Federal Open Market Committee continues to do “a balancing act,” said CUNA Senior Economist Perc Pineda. The Federal Reserve’s monetary policy-making body completed its meeting Wednesday without edging up the federal funds interest rate. Fed Chair Janet Yellen has said the committee will opt for an interest-rate increase sometime this fall. The July meeting, however, was not the time. “The Federal Reserve continues to do a balancing act: the U.S. economy is not in a recession and definitely not overheating,” Pineda told News Now . “Changes in monetary policy after all are meant to influence an underperforming or an overheating economy.” Household spending growth has been moderate, and housing has shown additional improvement, the committee said. Labor conditions continue to improve with declining unemployment and solid job gains. Inflation is anticipated to remain near its recent low level in the near term,...
Post a Comment
Read Complete Article HERE>»

Credit Union Lending Picks Up in Most Areas

Credit unions were increasing their portfolios in most areas in June, except business lending and new car loans, where portfolios fell for the 24th month in a row after seasonal adjustments, according to a CUNA Mutual Group report released Tuesday. The Madison, Wis., trade group’s Credit Union Trends Report showed new auto loan balances were $141 billion on June 30, falling at a 3.3% seasonally adjusted, annualized rate from May to June, part of the May-through-October peak car-buying season. Credit unions held $252.4 billion in used car loans on June 30, up 1.2% from May without seasonal adjustments. The Trends Report made slight adjustments to CUNA’s Monthly Credit Union Estimates released earlier in the month. In this case, its changes allowed total auto loan balances to show a slight 0.3% un-adjusted May-to-June gain, compared to being flat in the CUNA report. Steve Rick, chief economist for CUNA Mutual Group and the report’s author, said gains were stronger in other areas, includ...
Post a Comment
Read Complete Article HERE>»

Facial recognition to secure payments will exceed 1.4 billion globally by 2025

BASINGSTOKE, U.K.– The number of users of software-based facial recognition to secure payments will exceed 1.4 billion globally by 2025, from just 671 million in 2020, according to a new study from Juniper Research. “This rapid growth of 120% demonstrates how widespread facial recognition has become; fueled by its low barriers to entry, a front-facing camera and appropriate software,” Juniper said, noting the research identified the implementation of FaceID by Apple as accelerating the growth of the wider facial recognition market, despite the challenges to facial recognition during the pandemic with face mask use. The research recommends that facial recognition vendors implement robust and rapidly evolving AI based verification checks to ensure the validity of user identity, or risk losing user trust in the authentication method as spoofing attempts increase, Juniper reported. Fingerprint Sensors The new research, Mobile Payment Authentication: Biometrics, Regulation & Market Fore...
Post a Comment
Read Complete Article HERE>»

Don't say NO to your members anymore!

Does the following scenario occur at your credit union? If it does, we have a solution for you! A member comes in into your credit union and wants to know if you will loan them a couple of hundred thousand $$$ to buy a building, or can you loan him some seed money to start a new business or purchase equipment for the company they currently own, and you say,  “the credit union doesn't do those kinds of loans”.  Does this sound familiar? How many times do you and your staff say NO and literally tell a member to  “go down the street or go somewhere else” ?  Well, now, you have another option.   CU First Responders Finance (CUFR) CU First Responders Finance, LLC (CUFR)  is a partnership between the National Council of Firefighter Credit Unions, Inc.   (NCOFCU) , and Biz Lending & Insurance Center, Inc. to provide business lending origination programs to NCOFCU member credit unions. CUFR  will provide you with a turnkey operati...
Post a Comment
Read Complete Article HERE>»

What should your credit union budget for in 2025?

As we enter the fourth quarter, many credit union leaders are starting to turn their attention toward planning for 2025. With a myriad of options and new technology, it’s crucial to prioritize services that set credit unions apart while encouraging growth. In this article, we explore several key areas credit unions should consider when preparing their budgets for the coming year. Expanding membership One significant trend shaping the financial landscape is the exodus of big banks from rural communities . This presents a golden opportunity to expand membership to new communities. However, this expansion doesn’t necessarily require traditional brick-and-mortar branches. Credit unions can leverage technology to provide services efficiently and cost-effectively. Some alternative service delivery methods include: Interactive Teller Machines (ITMs) : These advanced ATMs allow members to interact with a live teller via video, providing a personal touc...
Post a Comment
Read Complete Article HERE>»

What Trump’s ‘one big beautiful’ tax-and-spending package means for your money!

  Trump’s megabill will bring sweeping changes for household finances. President  Donald Trump  signed his “one big beautiful” tax-and-spending package on July 4 — legislation that will bring sweeping changes to Americans’ finances.  After the  Senate passed its version  on July 1, the House Republicans on July 3  voted to approve  the multi-trillion-dollar domestic policy legislation and send it to Trump’s desk for signature. The final bill makes permanent Trump’s  2017 tax cuts  while adding new relief, including a senior “bonus” to  offset Social Security taxes  and a  bigger state and local tax deduction . The plan also has tax breaks for  tip income , overtime pay and  auto loans , among other provisions.  The GOP’s marquee legislation will also enact deep spending cuts to social safety net programs such as  Medicaid  and food stamp benefits,  end tax credits tied to clean energy  an...
Post a Comment
Read Complete Article HERE>»

Boston Firefighters Credit Union sets up fund

Posted Mar. 27, 2014 @ 7:35 pm ROSLINDALE The Boston Firefighters Credit Union has created a fund to help support the families of Lieutenant Ed Walsh and Firefighter Michael Kennedy. "In difficult times like these, I am so proud to be mayor of a city that comes together to help our neighbors in need," said Boston Mayor Martin J. Walsh. "Since yesterday's tragic events, we've experienced an outpouring of support from across the city, state, and country. So many people have expressed a willingness to help, in some way, as we grieve the loss of Lieutenant Walsh and Firefighter Kennedy." "Although no donation can heal the wounds suffered by the Walsh and Kennedy families, we are grateful to the Boston Firefighter's Credit Union for helping us create a focal point for peoples’ generosity, and to the people of Boston, of Massachusetts, and of the United States, who have once again shown the power of a community to help healing process begin." ...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - How were the National Parks started?

  America's 'Best Idea'       How were the National Parks started? America's National Park System includes roughly 85 million acres of US territory, equal to the size of Germany, set aside by federal law for preservation. There are 63 areas officially designated as national parks—including the Grand Canyon, the Great Smoky Mountains, and Acadia—and more than 400 additional smaller units ( see map ). In 1872, Yellowstone was established   as the first national park dedicated to public enjoyment and recreation, though its foundation also  displaced several Native American tribes . By 1916, the growing system required the creation of the National Park Service to preserve its lands for future generations. Eventually, hunting and logging were banned in the parks, though regulated extractive activity is still permitted in nati...
Post a Comment
Read Complete Article HERE>»