The Use of Outside Investment Managers

In times when it becomes more difficult for credit unions to fully lend their available funds, investments become an increasingly larger part of earning assets. The time and skill requirements needed to properly manage this portion of the balance sheet are considerable. Investment managers are specialists in managing portfolios and have immediate access to market information and analysis that are unavailable to most credit unions. Credit union personnel, on the other hand, are generally much more capable of managing the risks of lending to members than they are of managing the vagaries of the bond market.