WASHINGTON — Since 2000, agency securities have led the pack in terms of the most favored investments among credit unions.

Within the industry, agency securities made up 37.4% of investments as of December 2006, according to data complied by Callahan & Associates, Inc. Cash and corporates followed behind.

Looking at investments in 2006, credit unions finished the year with just over $189 billion in surplus funds with a temporary deposit surge in December pushing the measure up 1.7% for that month, according to CUNA Mutual Group's December Credit Union Trends Report. Surplus funds equaled 25.8% of assets. Over the past year, this measure declined by 2.8%. In aggregate, CUs have shortened investment durations with 58.5% of surplus funds scheduled to mature in one year or less, compared to 55.3% at the beginning of the year. Meanwhile, NCUA recently reported that investments declined in 2006, 9.14% to $134.4 billion from $148 billion. –[email protected]