Thanks to excess liquidity, low term deposit rates and changes in the corporate credit union system, the two-year-old Accolade Investment Advisory, LLC is reporting $905 million currently under management.
The wholly-owned CUSO of the $3.2 billion Southeast Corporate FCU is growing faster than expected, said Peter Gibson, Accolade's director of Investment Advisory Services, with growth in the last six months being particularly brisk.
Low rates have put pressure on net interest margins and have pressured credit unions of all sizes into taking on more risk, he said. Large credit unions come to Accolade already knowing what investments they want, and are seeking a favorable fee structure. Smaller credit unions new to complex structured investments with embedded options require high-touch service, he said, which includes product education and long-term risk and revenue analysis.
Kim Sydebrant, chief financial officer for the $131 million Martin Federal Credit Union, said her need to maximize investment income required her Orlando-based credit union try new products.
"Investment advisory services offer the expertise and experience that can get us into these products as well as educating and guiding our ALCO, management team and board through the process," she said.
