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Our flagship service, the Financial Advisory Service provides you with comprehensive investment and analytical services for your entire balance sheet.

ALM First Financial Advisors is your virtual investment department!


The program consists of the following features:

1.

Asset/Liability Management - is the foundation of the Financial Advisory Service. Sophisticated analytical models are used to perform a complete asset/liability management assessment of the credit union's balance sheet and income statement. This includes a static gap analysis and net interest income (NII) simulation analysis. A/LM reports are provided to you quarterly. Information required to perform the analysis may be transmitted electronically from the credit union's general ledger to ALM First.

2.

Investment Execution - Investment transactions are performed for your credit union on a non-discretionary basis. We will, at your discretion, assist internal staff in the review and recommendation of securities transactions. ALM First will also train your staff on the review and execution of investment transactions, if you desire.

3.

Monthly Accounting Reports - These reports include current market value, accrued interest, investment yields, premium and discount amortizations and accretions, and other pertinent accounting information. With more than 70 different reports from which to choose, the credit union can design its own monthly accounting package.

4.

Quarterly Analytical Reports - Reports will comply with all NCUA Part 703 and state regulation requirements. The main aspects of the analytical reports include portfolio weighted average life sensitivity, portfolio price shocks as a percent of capital, and various analytical measures such as duration and convexity.

5.

Quarterly Portfolio Evaluation and Strategy - Evaluations of the investment portfolio, its performance and strategies are used to determine the future course for the credit union's investment programs. The analytical results are reviewed with the credit union management; and then future strategies are discussed, agreed upon, and then executed.

 
6. Policy Review - ALM First will review the credit union's investment and asset/liability management policy and recommend necessary adjustments to ensure that they comply with current and proposed federal and state regulations. ALM First will also ensure that any adjustments will meet the needs of the credit union's balance sheet and management's investment policy.
 
7. Educational Sessions - On-site educational and performance review sessions are held periodically each year. This is a great opportunity for the credit union to invite executive management and the Board of Directors to review the balance sheet performance, learn more about the world of investments, and formulate future investment strategies.


Benefits:

1.

More investment product choices when performing trades. Due to ALM First's presence in the financial marketplace, and utilization of multiple broker/dealers, ALM First provides your credit union a wider range of investment opportunities to consider. Saving time by not dealing with brokers directly is an added benefit.

2.

Access to the finest investment analytical systems in the bidding process. ALM First uses cutting-edge technology to analyze option-adjusted values of securities and portfolio dynamics when conducting trades. This enables our staff to properly calculate fair market value of securities, thus ensuring that brokers are not taking advantage of market fluctuations at the credit union's expense. This has the potential of saving the credit union real dollars when purchasing (or selling) securities by giving the credit union a means in which to "bid back."

3.

Enhanced utilization of credit union resources. Through the Financial Advisory Service, ALM First's portfolio managers maintain a strong working relationship with the credit union's chief investment officer and keeps him or her informed of current market conditions and fixed income analytics. The Advisory Service is an important and cost-effective way for the credit union to provide its chief investment officer back-up support.

4.

Efficient trade execution through institutional broker/dealers. ALM First passes economies of scale savings on to our clients, particularly in the area of executing trades. Therefore, your credit union should be able to purchase securities at a lower price. ALM First executes trades with 14 institutional broker/dealers, allowing a wider array of investment products from which to choose.

5.

ALM First is an investment advisor registered with the Securities & Exchange Commission (SEC) under the Investment Advisory Act of 1940. We are not a broker/dealer and do not have any incentive to sell your credit union investments. ALM First is fee-based, rather than commission-based like most brokers or soft-dollar advisors. We choose investments for your portfolio objectively. Your happiness with our services and performance ensures our continued success.

 
6. Access to vast credit union investment expertise. The primary focus of ALM First is to provide comprehensive investment advisory and balance sheet management services to corporate and natural-person credit unions. The management team has a combined 42 years of experience in managing investments for credit unions, and 65 years experience in the financial investment industry. In addition, two of the principals of the firm have worked in the asset management divisions of major Wall Street investment firms.
 
7.

Access to the finest investment accounting and reporting systems. ALM First uses the most sophisticated financial modeling systems to shock securities and more accurately report projected prices in various interest-rate scenarios. In addition, ALM First uses sophisticated accounting systems to account for securities on an automated fashion, using a constant yield method. Accounting reports are provided by the third business day of each month, and can be downloaded from the Internet. This also provides the credit union a back-up system for accounting in the event of employee turnover or natural disaster.

 
8. Access to the latest income simulation system. ALM First uses the most sophisticated and current financial systems for credit union ALM management. This saves you time and money in staff education and "running" the models. Money is also saved on system purchases, maintenance, and upgrades. Our current systems will project net interest income in various interest-rate scenarios. Scenarios may include such tools as rate shocks, ramps, yield curve changes and deposit run-offs.

 

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