ARLINGTON, Va. – Most credit unions feel they have sufficient in-house expertise to assist with their investment strategies, according to the August NAFCU Flash Survey. Only 23% of the 130 credit unions that responded said they employ a consultant or vendor to assist with their investment strategy. Nearly 90% said they use a "laddering" approach to invest in debt instruments and 47% of those have maintained the same laddering strategy over the past six months with 39% shortening their ladders and 14% extending their ladders. Most respondents (79%) said their investment policy allows for a duration of five years or more while 11% indicated that their maximum duration was three years or less. Two percent said four years or less. Forty-one percent of respondents said the average duration of investments has not changed over the last six months, 30% shortened their average duration, and 24% lengthened their duration. For short-term rates, 37% predicted that the federal funds rate would be 1.75%; 35% said 2%; and 20% predicted a 1.5% increase by year-end. The remaining 8% of respondents were equally divided among 1.25% and 2.25%. For long-term rates, 58% predicted the 10-year Treasury note would be 4.8% at year-end while 22% saw a 5.1% rate. Ten percent foresee the note being 4.5% and the remaining 10% saw a range between 5 and 5.5%. [email protected]