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Trust for Credit Unions’ assets swell to over $2.5 billion, set a new record as industry seeks competitive investment options

WASHINGTON, DC (September 9, 2020)

The Trust for Credit Unions (TCU), the largest family of  institutional mutual funds created specifically for credit unions’ unique investment  needs, is continuing to see an inflow of funds as credit unions re-evaluate their investment options and seek more competitive alternatives amid higher deposit levels and growing earnings pressure. The total number of active credit union investors has grown by 62% year-to-date, a significant increase.

Total assets under management in the TCU Portfolios now exceeds $2.5 billion, which represents a growth rate of 152% since December 31, 2019. This is a new record for the TCU’s two bond portfolios, which saw a previous high of $2.3B in March 2004. The TCU Ultra-Short Duration Portfolio, which targets a three month duration, had a 30-day yield of 0.46%* as of September 8, while the TCU Short-Duration Portfolio, which targets a two-year duration, had a 30-day yield of 1.03%* over the same period.

Callahan Financial Services, Inc, a subsidiary of Callahan & Associates, acts as the funds’ distributor and 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.

“In past years, we’ve seen more traditional, seasonal investment trends with balances peaking in the late spring,” said Jay Johnson, President of TCU. “However, in this environment we continue to see a stream of new credit union investors and growing balances in TCU’s actively managed investment options. This is exactly what TCU was created for – to provide credit unions with the institutional investments they need, whenever they need them.”

“In our role as investment advisor, we strive to maximize return within the risk constraints set forth in the fund guidelines. We also share our knowledge and market insights regularly for the benefit of TCU investors and the entire industry,” says Jason Haley, Chief Investment Officer for ALM First. “Our team’s experience managing short duration fixed income portfolios for credit unions for more than 25 years has proven critically important as more investors turn to the TCU Ultra-Short Duration and Short Duration Portfolios to fulfill their institutional investment needs.”

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.

Contacts

Media Contact:
Sharon Simpson
(202) 223-3920 | ssimpson@callahan.com

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