MADISON, Wis. -- The largest credit union trade association, and an insurance group serving the industry are introducing a line of mutual funds for credit union customers.
The funds will go on the market in January.
The Credit Union National Association and CUNA Mutual Insurance Group, both based in Madison, will jointly offer a line of mutual funds that credit union customers can purchase either at their institution or directly from CUNA Mutual.
Initially, three no-load funds will be offered: a tax-free fund, a U.S. government securities fund, and an asset allocation fund.
More funds eventually will be offered, depending on demand, said Dorothy Ballantyne, vice president of corporate resources for CUNA Mutual.
T. Rowe Price, a Baltimore-based investment management firm, will help develop and manage the funds.
The venture is in response to growing demand of credit union members for mutual funds, Ms. Ballantyne said.
According to the trade group, about 25% of credit union members invest in mutual funds and 50% of credit union members who haven't invested would consider doing so if their credit unions offered a product.