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6 Ways Advisory Expertise Can Provide Value Beyond Portfolio Management

June 21, 2021

By Kevin Schlangen, Financial Solutions Consultant


6 ways Advisory expertise can provide value beyond portfolio managementA common headline the last year has been the huge influx of liquidity on credit union balance sheets. The federal government’s decision to provide not one, but two, stimulus packages in late 2020 and early 2021 certainly increased the size of members’ savings and checking accounts. Uncertainty of the pandemic’s status and the effectiveness of vaccinations also contributed to the decision for many to save and/or pay off debt. The question now is what to do with all those extra funds…specifically, where to place them in this historically low rate environment?

With so many factors to consider, how do you choose the best course of action? Is lending on the increase? Should funds be invested in securities? Indirect lenders and fund managers offer solutions, but do they align with your credit union’s strategy? In times like these, an advisory and consulting service partner, like Catalyst Strategic Solutions, can provide the unbiased guidance you want and need. It’s also reasonable to expect an advisor to offer more than just investment and portfolio management advice these days. While still a primary component of prudent balance sheet management, additional services should include:

  1. Providing expertise in the credit union market. It is important to know and understand what types of investments credit unions are eligible to invest. That’s where extensive knowledge of the credit union industry is a benefit.
  2. Identifying challenges and opportunities. Another set of eyes on potential challenges and opportunities is helpful when credit union management and staff are busy running day-to-day operations. Having someone outside the credit union focused on your investment efforts can be advantageous.
  3. Supplementing existing staff. Think of your partnership with an advisor as an extension of your credit union’s existing staff. Advisors support your credit union’s specific investment needs.
  4. Providing objectivity. Advisors are in place to help the credit union succeed and provide unbiased, objective advice and consulting services.
  5. Educating and training stakeholders. Educating board members, management and other credit union staff should be an integral component of advisory and consulting services. This transfer of human capital fosters deeper discussions and equips all parties for more effective decision making.
  6. Supporting credit union intentions, strategic plans and goals. When credit union plans and goals are shared, your advisor can custom-tailor solutions to help you meet and exceed those objectives.

Creating successful strategies for institutional investment programs is based on a foundation of deep expertise and sound judgment. It is important to partner with an advisor who has the experience and insight to help navigate unprecedented economic times.

Ultimately, an advisor’s effectiveness is predicated on analyzing situations – from both a quantitative and a qualitative perspective. Can they draw from a wealth of resources to be a client's trusted investment consultant? Catalyst Strategic Solutions’ experienced advisors use sophisticated modeling tools to analyze your credit union’s situation and help you make informed choices about your investment allocations and balance sheet profile. For more information on the Advisory Services Team, contact us today.