Trust for Credit Unions implements changes to Ultra-Short Duration Portfolio, responding to CU investment needs
WASHINGTON, DC (January 3, 2019) — The Trust for Credit Unions (TCU), the oldest and largest mutual fund family created for and by credit unions, recently announced that its Board of Trustees approved a change to the name and investment policies of the Ultra-Short Duration Portfolio effective January 1, 2019.
The Ultra-Short Duration Portfolio is intended for secondary liquidity and seeks to achieve a high degree of current income, consistent with low volatility of principal, by investing in obligations permissible under the Federal Credit Union Act.
Formerly called the Ultra-Short Duration Government Portfolio, the fund no longer requires that 80% of its assets be invested in government securities. The Portfolio may also invest in non-U.S. government related securities, including bank notes and repurchase agreements secured by non-U.S. government related collateral. These changes will allow for greater flexibility for the fund’s investment advisor, ALM First Financial Advisors.
“We believe these changes could potentially benefit TCU’s credit union investors as the Ultra-Short Duration Portfolio is expected to have less interest rate risk and asset value fluctuation than funds investing primarily in longer-term mortgage-backed securities paying a fixed rate of interest,” says Jason Haley, Managing Director for the Investment Management Group at ALM First Financial Advisors.
In connection with the investment policy change, the Ultra-Short Duration Portfolio’s target duration has also changed and is now approximately that of the ICE BofAML US 3-Month Treasury Bill Index with a maximum duration of a One-Year U.S. Treasury Security.
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 and with oversight by a board of trustees, TCU’s mutual fund options keep credit unions invested, are professionally managed, and are based on the cooperative values of credit unions.
More information about the TCU portfolios may be found on our website, www.trustcu.com.
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.
About ALM First
ALM First Financial Advisors is a strategic partner for depositories, offering an array of financial advisory services. Since 1995, our expertise in asset/liability management, fixed income portfolio management and hedging, has allowed us to deliver deeper insights into financial institutions’ balance sheets, strengthening their financial performance and building efficiencies. With more than $20 billion of investments under management, ALM First is an SEC-registered investment advisor, acting as an unbiased third party, offering commission-free, fee-based services to over 250 financial institutions across the country.
