Overview
Accolade Investment Advisory, LLC (“Accolade”) is a wholly owned credit union service
organization (“CUSO”) of Corporate One Federal Credit Union (“Corporate One”).
Accolade registered as an investment adviser with the U.S. Securities and Exchange
Commission in January 2008. Accolade’s clients are credit unions, banks, other financial
institutions and members (owners) of Corporate One.
Portfolio Management
Accolade provides portfolio management to credit unions, banks and other financial
institutions. Accolade’s services also include bond accounting, safekeeping and customized
reporting packages.
Initially, we analyze your portfolio objectives and constraints. Our analysis includes:
•Review and, if necessary, revision of your investment policy
•Determining available funds by analyzing current liquidity
The initial analysis allows us to construct our recommendations for your portfolio with
consideration of interest rate risk, varied economic and interest rate scenarios, credit and
interest rate risk parameters and regulatory concerns. All advisory services are on a non-
discretionary basis.
Recommendations are primarily for the purchase and sale of fixed income securities. We
research securities and their markets for the availability of investments that are appropriate to
your needs. Once you approve our recommendations, we enter your orders and send you
copies of tickets, confirmations, and documents used in investment analysis and
recommendation. We also provide you with regulatory and management reports.
Our portfolio management seeks to optimize the return on your excess liquidity, subject to the
credit unions, banks and other financial institutions liquidity needs and balance sheet structure.
Currently, Accolade’s preferred custodian for your securities is BNY Mellon (“BNY”). You
will authorize the transfer of assets to BNY or the custodian of your choice to recompense the
investment transaction(s). Additionally, you will authorize BNY, or the custodian of your
choice, to act upon Accolade’s instructions as to the investment transactions of your account.
Bond Accounting
Our investment portfolio accounting provides the accounting needs for all your investments.
The key features of our bond accounting are:
•Monthly
Reporting
oAccounting entries for interest accruals and amortization/accretion
oAccounting for MBS adjusted monthly according to prepayments
oPrincipal and interest payment verification reports
oReports organized by investment type and ASC 320 (FASB 115) category
oGeneral ledger reconciliation reports
oPortfolio Summary and Maturity Distribution reports
oCash flow and budget projection reports
oRegulatory reporting for credit unions
oFair market values
•Quarterly Shock Test
o-300 to +500 basis point shock
oSummary reports show effect of rate changes on entire portfolio
oReports by investment type and individual security
oQuarterly Interest Rate and Bond Market Recap
•Year-to-date and Audit Reports
oQuarterly recap of year-to-date purchases, sales, calls and maturities
oYear to date amortization, accretion and interest accrued
oRoll forward reporting (summary, investment type and security)
oContractual Maturity Schedule
oUnrealized Gain/Loss Summary
Accounting entries may be mapped to your general ledger system providing seamless entry of
investment information.
Reporting
In order to assist you in meeting your compliance obligations under Rule 703 or applicable
state statues, our services include:
•Providing an initial and an annual investment policy statement to present to your
board of directors for approval prior to implementing advisory services.
•Ensuring that the credit union, banks and other financial institutions is provided with
a confirmation of each purchase and sale of securities.
•Providing pre-purchase analysis (and credit analysis if required) documentation on
investments.
•Executing transactions with broker-dealers specifically approved by the credit unions,
banks and other financial institutions board of directors.
•Valuing securities before a purchase or sale by obtaining quotations from an industry-
recognized information provider or at least two broker-dealers.
•Providing monthly and quarterly reports of securities holdings in conformance with
Rule 703.12 “Monitoring Securities”.
Assets Under Management
As of December 31, 2023, Accolade managed $1,367,788,716 in credit unions’ securities
portfolios on a non-discretionary basis. We do not manage portfolios on a discretionary basis.