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Build Benchmarks That Get You to Your Goals

A benchmark is a standard against which the performance of the investment portfolio of the balance sheet can be measured. Since credit unions’ risk limits are bound by the liabilities currently on the balance sheet, Benchmarking measures the limits against the current interest rate risk (IRR) of the balance sheet and optimizes the exposure. The benchmark is mathematically derived, and can be used to measure any portfolio, investment, loan, or liability.

Appropriately built benchmarks help your credit union:

  • Meet more goals more often
  • Make smarter, faster investing decisions
  • Quickly determine clear pathways to success

The information gained from Benchmarking allows credit unions to instantly determine how efficient their investment decision-making is relative to the amount of risk they are incurring. Benchmarking is usually an ongoing process in which credit unions continuously seek the improvement of their net risk position. Mapping out an ideal position before making investment decisions provides credit union managers a clear pathway to success. In addition to offering credit union leaders performance guideposts, Benchmarking helps determine when it is time to commit excess funds and/or take on more risk.

Benchmarking helps CEOs, CFOs, and other credit union leaders define optimal investment strategies for their credit union. It enables them to identify where investment decisions lead, lag, or remain at par with optimal portfolio performance. In addition, Benchmarking provides the basis by which credit unions can judge investment options. Benchmarks help leaders identify which types of securities enhance their portfolios and declare which are no longer adding to their balance sheet’s performance.

How will QuantyPhi help your credit union?

QuantyPhi will help your credit union create performance targets specific to your unique goals. We will help you develop portfolio strategies that provide optimum levels of return with a given level of IRR. Our performance optimization experts use high-powered technology that can analyze changing market data quickly, run “what-if” scenarios, and generate reports that help set appropriate, achievable benchmarks. 

At QuantyPhi, we have the technology to continuously crunch the numbers, so you don’t have to. We have the experts needed to interpret that mathematical data and will show you how to meet/exceed your benchmarks with flying colors. Who you partner with for financial services MATTERS. Call QuantyPhi today at (414) 433-0176.

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April 21, 2021 - Investment Portfolio Benchmarking
QuantyPhi’s benchmarking process can help define optimal investment strategies by measuring the risk and expected return under various levels of interest rate risk. This allows credit unions to determine how efficient investment decision-making is relative to the amount of risk incurring. Optimizing your investment portfolio through a benchmarking study will better position your credit union to support lending and ensure adequate liquidity for continued growth. Listen to this webinar and find out how an investment portfolio benchmarking study can benefit your credit union.

*Securities offered through Concourse Financial Group Securities, Inc. (CFGS), Member FINRA/SIPCAdvisory services offered through Concourse Financial Group Advisors, a DBA for CFGS, a Registered Investment Advisor. QuantyPhi, LLC. is independent of CFGS.

**Securities offered through Concourse Financial Group Securities, Inc. (CFGS), Member FINRA/SIPC. QuantyPhi, LLC. is independent of CFGS. Check the background of your financial professional on FINRA’s BrokerCheck.

***For a copy of CFGS’s Form CRS please visit: ConcourseFinancial.com.