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For Immediate Release: March 11, 2021
Contact: Sharon Simpson, (202) 223-3920 or ssimpson@callahan.com
Washington, D.C. – Assets under management in the Trust for Credit Unions (TCU), the oldest and largest mutual fund family created for and by credit unions, increased by 215% in 2020 compared with the industry’s total investment growth of 55% last year. The two TCU bond funds, the Ultra-Short Duration and Short Duration Portfolios had total combined assets of over $4 billion as of March 10, 2021.
As credit unions seek competitive investment options to help them manage excess liquidity, TCU has welcomed a record number of new credit union investors while continuing to assist their long-time institutional investor base.
“The first quarter is typically when the industry puts seasonal liquidity to work, but 2020 saw a steady increase in liquidity way beyond what is typical,” says Jay Johnson, President of TCU. “With additional stimulus payments and tax refunds on the horizon, we expect even more credit unions will benefit from the active management and simple access TCU provides.”
TCU was founded to provide competitive investment alternatives for credit unions. The TCU Short-Duration Portfolio, which targets a two-year duration, had a 30-day yield of 0.55%* as of March 10, 2021 while the TCU Ultra-Short Duration Portfolio, which targets a three-month duration, had a 30-day yield of 0.31%* over the same period. Both funds offer next-day liquidity, feature no minimums or maximum investment amounts, and have no tiers.
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.
“Our team has decades of experience assisting credit unions with their unique investment needs. With interest rates at record lows, and liquidity rapidly increasing, our active management has helped TCU deliver competitive performance,” says Jason Haley, Chief Investment Officer for ALM First. “When managed properly, investment income can help credit unions better serve their membership.”
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.
*The yields reflect the 30-day Effective Yield (net of fees/expenses). For questions please call the TCU Group at 1-800-237-5678.
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