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Portfolio Analysis

What is portfolio analysis?

Portfolio analysis is a process in which a credit union’s investment portfolio is examined for performance value and potential. The information is then used to guide a future course. Its purpose is to determine areas of concern, as well as areas of opportunity and success.

Why is portfolio analysis important?

Credit unions often build investment portfolios independent of the balance sheet, acquiring investments as dealers make them available. Reviewing the entire portfolio’s performance on a scheduled basis prevents leaders from jumping on investments that may look like opportunities, but in truth, may throw off asset/liability balance, create unnecessary risk exposure, and steer the credit union away from its goals. When investment managers understand how every component of the portfolio has performed and is performing—from both a capital-at-risk and an expected-return point of view—investment decisions are more likely to enhance performance.   

Who does portfolio analysis help?

Portfolio analysis helps credit union managers and asset liability committee members make more informed and more goal-aligned balance sheet liquidity/risk management decisions. It helps credit union CEOs and CFOs determine if the credit union is on track to achieve its performance benchmarks. It allows leaders to pinpoint areas that have performed well and not so well, shedding light on what’s working and what’s not. Regularly-scheduled portfolio analyses by highly-trained investment and risk experts are key to ensuring performance success.

Why QuantyPhi?

Expert portfolio analysis takes time, skill, and sophisticated data processing technology. Because portfolio analysis is one of our specialties, we can devote more attention and more time to performance examination than most credit union leaders. We have highly-trained analysts whose sole mission is to find ways to make credit unions more successful. We also house high-powered analysis technology most credit unions can’t afford. As a CUSO of Corporate Central Credit Union, QuantyPhi knows credit unions, and we can help you create portfolios that make your credit union a star performer.

QuantyPhi
6262 South Lowell Place, Muskego, WI 53150
Phone: (414) 433-0176 | Fax: (414) 427-3700
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