One track
Four applications

Most Part 703 investment portfolios look the same: heavily weighted toward agency MBS and Treasuries, instruments that are well understood, broadly available, and already abundant on most credit union balance sheets. Elite Capital's value-add in the Part 703 space is not more of what you already own — it's what you're almost certainly missing.

Investment grade taxable municipal bonds are permissible under NCUA Part 703. They are also, for most credit unions, almost entirely absent from the portfolio. Broker-dealers don't widely cover them, the credit analysis is demanding, and familiarity bias keeps most institutions anchored to agency MBS. That gap is exactly where Elite Capital — through our decade-long partnership with GW&K Investment Management — operates with a material advantage.

The case for taxable municipals isn't about yield in isolation — it's about the structural characteristics that agency MBS simply cannot offer. Taxable municipal bonds don't prepay. When rates fall, MBS shorten as homeowners refinance, compressing your reinvestment opportunity at exactly the wrong moment. Municipals extend in your favor — you keep the bond and the coupon. The cash flow you modeled is the cash flow you receive. That positive convexity has real ALM value that a yield comparison alone doesn't capture.

Predictable cash flows matter for the same reason. Scheduled principal and interest arrive as planned, with no prepayment models to run and no PSA speed assumptions to debate. And at comparable credit quality and duration, taxable municipals have historically offered spread pickup over agency alternatives — a premium that reflects the credit analysis burden, not a genuine increase in risk for investment grade issuers. That's the opportunity.

Charitable Donation Accounts allow credit unions to invest in a broader range of assets than Part 703 would otherwise permit, with the requirement that at least 51% of the account's earnings are donated to charitable causes. That broader mandate comes with a clear objective: total return.

Bonds are income instruments. They have historically delivered poor total returns over meaningful time horizons and are not the right tool for a portfolio whose primary job is to grow. Elite Capital structures CDA portfolios around the asset classes designed for total return — thematic equity and structured protection — with the downside awareness that the distribution schedule demands.

Employee benefits pre-funding is not about retirement funding. It's about setting aside assets today — in a disciplined, invested portfolio — to offset the future operating costs of active employee benefits: healthcare, life insurance, and similar obligations your credit union is already committed to paying.

Elite Capital helped pioneer this strategy in the credit union space in 2007 with the Elite Yield Enhancement Pre-Funding Program®. The concept is straightforward: rather than holding idle cash or low-yielding reserves against known future benefit expenses, invest those assets in a diversified, institutional-quality portfolio designed to grow over time and offset those costs when they come due.

Done properly, pre-funding transforms a passive balance sheet liability into an active, managed asset — one that earns a return, supports the income statement, and operates within full NCUA compliance. Because pre-funding portfolios operate under §701.19(c), they unlock asset classes unavailable under Part 703 — including U.S. corporate bonds, thematic equity, and structured protection.

457(f) executive benefit plans are one of the most effective tools a credit union has for attracting and retaining senior leadership — but they carry a distinctive investment challenge. The portfolio needs to grow enough to meet the projected benefit obligation at the defined payout date, while managing the risk that a down market erodes the value precisely when the distribution is due.

Elite Capital structures 457(f) portfolios around the liability itself — not a generic allocation. We work from the projected benefit amount and the payout timeline to build a portfolio that balances growth and protection in a way that makes sense for the obligation it's designed to fund.

Our thematic equity approach provides the growth engine. structured protection provides the guardrails. The combination is calibrated to the specific plan — not a template applied across every client.

The Elite Advantage

One partner — full infrastructure — across every program

What makes Elite Capital's program expertise genuinely useful is what sits behind it. Every client — regardless of program type — receives the same institutional-quality back-office infrastructure: daily reconciled accounting through our proprietary reporting portal, Business Day 1 book close, automated 5300 Call Report population, and ACL reporting. Your team stays informed without being burdened.

We work with a select group of credit unions and serve each one at an extraordinarily high level. Our structure is flat — every member of the team takes direct ownership of your outcomes. That's not a marketing line. It's how we've operated since 2007.