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Who is Concentra Financial?
January 16, 2016
11:07 am
kanaka
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In some of my documentation with some of the Manitoba Credit Unions, Concentra is mentioned. I have Googled and it appears they are a financial wholesaler/support?? So I am thinking they would be associated with Deposit Guarantee Corporation of Manitoba. But they are in Saskatchewan and not Manitoba. I also see on iTrade that they offer the best 5 year GIC rate. I have also found that they are listed as a member of CDIC and it looks like most others on iTrade are CDIC too?

Can some one enlighten me on Concentra Financial?

January 16, 2016
12:41 pm
Loonie
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They are somehow behind some aspect of the credit union movement, but not sure of the details. I think they may be sort of like the "central bank" of credit uniondom but someone else will no doubt know more..

My father, who was a very conservative investor, now deceased several years, used to have GICs with them, so, on that basis, I would think they are fairly solid. I never heard of him making an investment that didn't pan out in the end.

January 16, 2016
3:33 pm
Norman1
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According to their Investor Relations page, Concentra Financial Services Association is a federally-regulated financial institution.

Concentra seems to be a behind-the-scenes service provider to Canadian credit unions. This is from their DBRS rating report:

Description of Operations

Concentra, Canada’s first and only co-operative financial services association, was formed by the continuance of Co-operative Trust Company of Canada on December 31, 2004. On January 1, 2005, SaskCentral sold a substantial portion of its assets that were not required for statutory liquidity management purposes to the new entity. While SaskCentral currently holds an 84.3% economic interest in Concentra, it only holds a 47.1% voting interest since, by statute, this type of business cannot be controlled by SaskCentral. Minority voting shareholders include the other provincial credit union centrals and other co-operative financial institutions. Concentra remains closely associated with SaskCentral, in some cases with shared resources. Concentra’s mandate is to offer services to credit unions nationally. Services offered primarily include financial intermediation, management of credit union deposits in excess of statutory liquidity held with provincial centrals and facilitation of investment opportunities and funding requirements available to credit unions, which includes buying credit union loans, syndicating and securitizing loans, leasing services as well as personal and corporate trust services (through wholly owned subsidiary, Concentra Trust). One key product is to provide access to the National Housing Act Mortgage Backed Securities and Canada Mortgage Bond programs to the credit unions.

As a CDIC member, Concentra Financial can accept deposits. I think the deposits are a source of capital required for some of the services they provide. For example, their residential mortgage purchase program. The service buys mortgages from credit unions who would like to free up the money tied up in mortgages for other kinds of loans.

January 17, 2016
3:50 am
Loonie
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Info on the members of the Board of Directors gives you an idea of the interests represented, clearly national and also local (SK) in scope.
https://www.concentrafinancial.ca/pages/view2.aspx?gp=About%20Us&sub=Board%20of%20Directors&own=133

January 17, 2016
7:08 am
Norman1
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Concentra Financial Services seems to be owned and operated by the credit unions it serves. Sort of like a credit union for the credit unions!

January 17, 2016
12:09 pm
xxxx
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Concentra seems like a layer of unnecessary fat to me - appears to a subsidized org to some degree - what exactly is their value added??

January 17, 2016
3:15 pm
kanaka
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Thanks everybody.

I see them as a potential GIC buy on iTRADE for sure. It now appears to be that iTRADE GICs are all provided by CDIC insured institutions.

The only odd thing I find is that Concentra is support for credit unions yet they are CDIC insured.

January 18, 2016
12:35 am
Loonie
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Brian said

Concentra seems like a layer of unnecessary fat to me - appears to a subsidized org to some degree - what exactly is their value added??

Perhaps you should pose this question to the credit unions that Concentra serves, across the country.

January 19, 2016
9:03 am
xxxx
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Concentra Fin Services is of no interest to me - perhaps someone in the Forum who actually deals with credit unions can easily get the answer to your question, Loonie.

January 19, 2016
10:43 am
Bear
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Reading Concentra website they service Credit Unions across Canada for any number of reasons including registered plans, trust services, estate planning, risk management, mortgage securitization. They act as a CRA liaison and work with regulators to keep Credit Union compliant with ever changing legislation. Sounds to be a money saver for the entire Credit Union system to have one Trust company who services them all.

Please write your comments in the forum.