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TCU Ultra-Short Duration Government Portfolio Exceeds Treasury Performance Benchmark in 2011
For More Information: Jon Jeffreys, Callahan & Associates, 202-223-3920, jjeffreys@creditunions.com
Washington, D.C – (Jan. 25, 2012) – The Trust for Credit Unions (TCU) reported today its Ultra-Short Duration Government Portfolio’s cumulative total return of 0.67% for the 12-month period ended December 31, 2011, exceeded the cumulative total return of its blended benchmark, the 9-Month U.S. Treasury Index, over the same period by 25 basis points. The complete TCU Monthly Fund Update for December 2011 is available at http://www.trustcu.com/Performance/Monthly.aspx. Past performance is no guarantee of future results.
“During a year when rates were near historical lows, this is an excellent result,” said Jon Jeffreys, Manager of Callahan Credit Union Financial Services Limited Partnership (CUFSLP), the funds’ administrator.
Total return measures both the monthly income distribution by a fund, as well as any changes in its net asset value. The cumulative total returns for TCU’s two bond funds for the 12-month period ending December 31, 2011, were:
Ultra-Short Duration Government Portfolio 0 .67%
Short Duration Portfolio 1.44%
The one-year, simple average yield for the TCU Money Market Portfolio was .02%
“Using total return to track investment portfolio performance is important because it reveals the cumulative economic impact of individual security decisions over time,” said Jeffreys.
TCU’s Monthly Fund Update includes total return performance for year-to-date, prior 12 months, and for the last 3-, 5-, and 10-year periods for all three funds.
Trust for Credit Unions provides credit unions with three investment portfolios, professionally managed and priced daily. As of December 31, 2011, over 100 credit unions were investing in TCU with total balances of $1.08 billion in the family of funds.
The Trust for Credit Unions is an SEC registered open-end mutual fund. It was founded in 1987 by 20 credit unions seeking investment options built on co-operative principles of shared risk, scalability, democratic governance and member value. Its investments are limited to only those authorized for credit unions in the Federal Credit Union Act.
For more information about the Trust for Credit Unions, contact Jon Jeffreys at 800-237-5678, or jjeffreys@creditunions.com.
- For a full discussion of total return, read Chip Filson’s article The Power of Total Return for Balance Sheet Management at www.creditunions.com.
- The 9-Month U.S. Treasury Index is the weighted average return of the BofA Merrill Lynch Six-Month U.S. Treasury Bill Index (50%) and the BofA Merrill Lynch One-Year U.S. Treasury Note Index (50%).
The Trust for Credit Unions (TCU) is a family of institutional mutual funds offered exclusively to credit unions. Callahan Financial Services is a wholly owned subsidiary of Callahan & Associate and is the distributor of the TCU mutual funds. Goldman Sachs & Co is the advisor of the TCU mutual funds. To obtain a prospectus that contains detailed fund information including investment policies, risk considerations, charges and expenses, call Callahan Financial Services, Inc. at 800-CFS-5678. Please read the prospectus carefully before investing or sending money. Units of the Trust portfolios are not endorsed by, insured by, obligations of, or otherwise supported by the U.S. Government, the NCUSIF, the NCUA or any other governmental agency. An investment in the portfolios involves risk including possible loss of principal. Investors in the TCU Ultra-Short Duration Government Portfolio and TCU Short Duration Portfolio should understand that the net asset values of the Portfolios will fluctuate, which may result in a loss of the principal amount invested. Investments in fixed income securities are subject to the risks associated with debt securities including credit and interest rate risk.