By Emily Hollis, CFA
Partner
The primary responsibility of any credit union official involved in investment activities is to ensure the safety of the balance sheet. Securities available in today’s market are more complex than ever before and a multifaceted investment portfolio will demand more elaborate modeling and reporting to your Investment Committee and Board of Directors. The cost of managing this activity each year (salaries, overhead, software, etc.) is very expensive and, even for large credit unions, the costs of performing this analysis in-house can be prohibitive.
Simply put, quality investment advisers have the systems and resources to perform high-level analytics and provide credit unions with expertise on portfolio strategizing and security selection, which could greatly enhance the net yield on their investment portfolios and keep you from unintended consequences (i.e. extension risk).
