TCU Ultra-Short Duration Portfolio hits $1 billion, outperforms benchmark
WASHINGTON, DC (May 26, 2020) — The Trust for Credit Unions (TCU), the largest family of institutional mutual funds created specifically for credit unions’ unique investment needs, reached a new milestone recently as balances in the TCU Ultra-Short Duration Portfolio exceeded $1 billion. The TCU Ultra-Short Duration Portfolio targets a duration of three months and has proven to be a popular option as credit unions seek out more competitive investment yields during an extremely low interest rate environment. As of May 22, 2020, the Ultra-Short Duration Portfolio’s 30-day yield was 1.17%*, and in the month of April the Portfolio posted a total return of 0.54%, while its benchmark, a 3-Month U.S. Treasury recorded an April total return of 0.01%.
Both TCU Portfolios have experienced strong growth this year and now exceed a combined $1.5 billion, a growth rate off 59.3% since December 31, 2019. Callahan Financial Services, Inc, a subsidiary of Callahan & Associates, acts as the funds’ distributor and has been working closely with interested credit unions to provide detailed information on both the TCU Ultra-Short Duration Portfolio and the TCU Short-Duration Portfolio, which targets a two-year duration. ALM First Financial Advisors serves as the funds’ investment advisor, providing ongoing economic updates and timely educational resources to benefit both current and potential investors.
“A lack of competitive investment options in the market is one of the common challenges we’re hearing from credit unions right now,” said Jay Johnson, President of TCU. “As deposits stay put and the loan portfolio turns over at many cooperatives, TCU’s investment options continue to deliver value to our growing investor base.”
“As investment advisor for the TCU Portfolios, we always strive to maximize return within the risk constraints set forth in the fund guidelines,” says Jason Haley, Chief Investment Officer for ALM First. “Our team’s experience and expertise in managing short duration fixed income portfolios for credit unions for more than 25 years has contributed heavily to the success of the TCU Ultra-Short Duration and Short Duration Portfolios.”
TCU helps credit unions succeed by providing a professionally managed family of mutual funds — exclusive to credit unions — as well as the information and analysis they need to support investment decisions. Created by leading credit unions with oversight by a board of trustees, TCU’s mutual fund options are professionally managed and are based on the cooperative values of credit unions.
In addition to the mutual fund products TCU offers, credit union professionals can also take advantage of a wide range of educational investment information and resources, including daily and monthly market commentaries. For more information, visit www.trustcu.com or contact TCU at 800-237-5678.
About Trust for Credit Unions (TCU)
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 & Associates and is the distributor of the TCU mutual funds. ALM First Financial Advisors, LLC is the investment adviser 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.
For questions, please call the TCU Group at 1-800-237-5678.