20% Investment Program Growth in 2000

Credit unions throughout the country continued to add investment services at a brisk pace last year despite the cooling of the economy.

 
 


Investment Programs by Asset Size
CU Asset Range
# CUs w/Program
12-00
# CUs w/Program
12-99
% CUs in Asset Range
w/Program 12-00
<$1M
1 0 0.06%
$1 - $2M
3 2 0.3%
$2 - $5M
9 9 0.4%
$5 - $10M
36 20 2.2%
$10 - $20M
66 58 4.7%
$20 - $50M
206 146 13.5%
$50 - $100M
228 207 31.7%
$100 - $250M
299 264 58.2%
$250 >
280 237 81.7%
Total 1,128 943

Credit unions throughout the country continued to add investment services at a brisk pace last year despite the cooling of the economy.

Twenty percent more credit unions offered investment services in 2000 than in 1999, according to data collected in Callahan & Associates' newly published Directory of Mutual Fund and Brokerage Service Providers

At year's end 1,128 credit unions were providing investment programs for their members, up from 943 credit unions the year before, says Callahan President Chip Filson. It is clear this remains an area of rapid growth, expansion and change for credit unions and a very important trend.

Total investment assets under management in these off balance sheet credit union programs are estimated to be $25.9 billion, he said.

More than 81 percent of credit unions with over $250 million in assets now offer such a program to members, the directory shows. In fact, 88 of the nation's largest 100 credit unions offer investment services through a third party, leaving only a dozen that so far do not.

Among credit unions in the $100-$250 million asset range, 58 percent now offer investment services while over 31 percent of the next rank of credit unions with $50 to $100 million in assets have investment services available. The directory shows that the number of credit unions involved in investment services drops quickly the smaller the credit union. Just 2.2 percent of credit unions in the $5 to $10 million range have such programs in place.

Nine firms provide 80 percent of the credit union industry's current investment programs with the largest being Members Financial Services from CUNA Mutual. The directory includes market share statistics for all the providers and other data on the rise in credit union investment programs.

The directory is the only resource tracking investment programs in the credit union industry and all data has been verified by going to both the credit unions and the third party providers, Filson says. For more information, call: (800) 446-7453.

Callahan & Associates is a Washington, DC-based firm specializing in financial publications and software, strategic planning and investment management for credit unions for 16 years.

 

 

 

March 26, 2001


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