Trust for Credit Unions History

Trust for Credit Unions was founded because of the credit union market need for mutual funds.

In 1987 shares were flowing into credit unions. Loans were flat and investments growing. NCUA was suggesting that there was a problem because too much money was on credit union balance sheets.

Callahan and Associates saw an opportunity. In February of 1987, we met in the Washington offices of the Cooperative Bank with approximately 25 credit unions in town to attend the GAC.

At this meeting Callahan and Associates outlined an initiative to investigate the feasibility of credit unions creating and owning their own mutual funds. The initial interviews suggested the idea was both timely and possible.

Throughout the year, we proceeded to organize the “network” that would be the key resources for this venture. One critical group was the founding credit unions. A CUSO structure (CUFSLP) was created to underwrite the funds and pay for startup costs.

In addition to credit union partners, Goldman Sachs, Callahan Financial Services and Callahan's, another critical component was the Trustees. The reputations of these leaders and providers established early credibility for the Funds' introduction into the credit union market. Trust for Credit Unions was the first credit union mutual fund family.

See Milestones for important dates in TCU History.