What are Pre-Fund Portfolio Management Services?
Administering employee benefits is essential to attracting and retaining a great team. Credit unions possess a powerful tool to manage these costs: pre-funding employee benefits as established in NCUA regulations. With the pre-fund portfolio management service, you can gain access to investments which are otherwise impermissible and can offer substantial benefits in terms of flexibility and transparency. ALM First Financial Advisors will help your institution establish an investment portfolio to offset future expenses tied to employee benefit plan obligations.
What does ALM First Financial Advisors provide?
Accurately pre-funding your employee benefits begins with a thorough assessment of your current annual expense liability. Moreover, successful portfolio management recognizes that the environment is ever-changing, requiring a constant process of planning, execution, and feedback. ALM First Financial Advisors works with you to formulate a strategy appropriate to the institution’s objectives, policy, and guidelines.
The benefits of partnering with ALM First Financial Advisors begins immediately:
- Strategy development
- Portfolio size justification
- Enhanced understanding of risk and returns
- Access to non-703 traditional assets
- Expertise of our investment management group
- Size and scope leverage of ALM First Financial Advisors’ investments under management
- Due diligence, risk tolerance, and strategy documentation
- Investment policy statement and risk guidelines
- Customized solutions based on risk tolerance
How does ALM First Financial Advisors do it differently?
ALM First Financial Advisors works with your institution by providing:
- Unbiased Perspective: Our compensation is not related to any specific product or transaction. Our focus is on the overall balance sheet and strategic positioning.
- Low-Fee Portfolio Management: ALM First Financial Advisors’ goal is to produce low cost, low tracking-error returns relative to the applicable market indices.
- Industry-leading Analytics: Our analyses and due diligence reports of the current benefits expenses offer keen insights and meet regulatory requirements.
Ensuring pre-fund investment accounts are properly managed and their risks are well-understood is a win-win for all parties involved and a step forward in your credit union’s business strategy
Are there minimum size requirements for the portfolio?
No. ALM First will work with your institution no matter the size of the portfolio. In addition, there are no statutory limits in the federal regulations, although a common understanding is that portfolios exceeding 25% of the depository’s net worth may be under enhanced scrutiny.
Can an institution hold multiple portfolios?
Yes. Working with ALM First Financial Advisors does not require management of the entire portfolio. While a consolidated portfolio can provide management efficiencies, some institutions prefer different portfolios managed through different partnerships.
Get Started Now
Contact us today to begin insuring your institution’s future.
All investing is subject to risk, including the possible loss of the money you invest.
“ALM First” is a brand name for a financial services business conducted by ALM First Group, LLC (“ALM First”) through its wholly owned subsidiaries: ALM First Financial Advisors, LLC (“ALM First Financial Advisors”); ALM First Advisors, LLC (“ALM First Advisors”); and ALM First Analytics, LLC (“ALM First Analytics”). Investment advisory services are offered through ALM First Financial Advisors, an SEC registered investment adviser with a fiduciary duty that requires it to act in the best interests of clients and to place the interests of clients before its own; however, registration as an investment advisor does not imply any level of skill or training. Moreover, ALM First Financial Advisors, LLC (“ALM First Financial Advisors”), an affiliate of ALM First Group, LLC (“ALM First”), is a separate entity and all investment decisions are made independently by the asset managers at ALM First Financial Advisors. Access to ALM First Financial Advisors is only available to clients pursuant to an Investment Advisory Agreement and acceptance of ALM First Financial Advisors’ Brochure. You are encouraged to read these documents carefully. Balance sheet advisory services are offered through ALM First Advisors. Financial reporting services, loan introduction services, and other special project services are offered through ALM First Analytics. Neither ALM First nor any of its subsidiaries provide legal, tax, or accounting advice. This firm is not a CPA Firm.
INVESTMENT PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, ALM FIRST OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.