Corporate Shares Keep Pace with Strong CU Investment Growth

Corporate credit union shares reached $60.9 billion in the third quarter, up an amazing 17.4% YTD. So far this year, credit union investments have increased 16.3% to $185.7 billion, and corporate credit unions have successfully kept up with this record growth, holding a 32.8% market share of credit union investments.

 
 
Corporate credit union shares reached $60.9 billion in the third quarter, up an amazing 17.4% YTD. So far this year, credit union investments have increased 16.3% to $185.7 billion, and corporate credit unions have successfully kept up with this record growth, holding a 32.8% market share of credit union investments.

Much like natural person credit unions, third quarter growth was slower for the corporates than in the previous two quarters with 3-month Daily Average Net Asset growth for the group at only 1.35%. However, there was a wide range of growth rates among the individual corporates and only 13 of the 32 had positive 3-month DANA growth. Central Credit Union Fund of Massachusetts posted the highest 3-month DANA growth at 10.45%, while Corporate Central of Wisconsin experienced a decline of 15.62% over the same period.

Why did some corporates perform so much better than others?

The chart below shows that corporate credit unions with higher payout ratios generally demonstrated higher 3-month DANA growth.

 

 

 

Dec. 23, 2002


Comments

 
 
 
  • Glad you are staying on top of this important segment
    Anonymous