WASHINGTON and SAN FRANCISCO-The Trust for Credit Unions Government Securities Portfolio and Mortgage Securities Portfolio- the first mutual fund family designed specifically to meet the needs of credit union investors- has passed the vigorous test of the Federal Home Loan Bank Board of San Francisco and is now approved for use as collateral against FHLB borrowings Credit unions that invest in these funds can now benefit from this new policy, said Sharon Simpson of Callahan and Associates, Washington. Because TCU funds are actively managed and do not mature like direct securities, which are often used as collateral, CUs would not have to monitor and replace that collateral as it matures or when they want to make a trade. The Trust for Credit Unions is administered by the Callahan Credit Union Financial Services Limited Partnership (CUFSLP), which was formed in 1987 and is owned by some 40 credit unions. Goldman Sachs Asset Management serves as investment advisor to the fund. TCU offers three portfolios to state and federally chartered credit unions. They are: the TCU Money Market Portfolio; the TCU Government Securities Portfolio and the TCU Mortgage Securities Portfolio. Simpson stated that there are already 300 credit unions across the country with accounts in TCU. The total portfolio value is estimated to be $2 billion. "This is another tool credit unions can use in order to borrow funds from the Federal Home Loan Banks. Callahan and Associates advises credit unions outside the jurisdiction of the San Francisco Federal Home Loan Bank to contact their own FHLB and encourage them to adopt a similar policy regarding mutual funds in their district. -
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