CUNA Mutual Touts Its Investing Prowess

NASHVILLE, Tenn.– CUNA Mutual Group believes it has at least a partial solution to the ROA compression nearly every credit union is feeling: significant improvement in performance of the investment portfolio. David P. Marks, who left Citigroup’s Travelers unit, where he oversaw a $70-billion portfolio, before joining CUNA Mutual 16 months ago as chief investment officer, has overseen a 114 basis point increase in the return on CUNA Mutual’s investment portfolio with no change to quality, duration or liquidity. With the completion of its recently unveiled investments room, Marks told the Credit Union Journal CUNA Mutual believes it can do the same thing for the longer duration, excess part of the portfolio by using the heft it brings to the market and the much-improved ties to Wall Street the company now has. Marks noted that in CUNA Mutual’s case, better investment strategies added $60 million to the bottom line during 2006. The plan now, said Marks, is to raise awareness among credit unions that CUNA Mutual can partner on portfolio analysis and performance. Marks, along with CUNA Mutual CEO Jeff Post, stressed the company is not interested in the overnight and shorter-duration funds most credit unions keep in corporates.