The American economy faced a difficult challenge in the late 1960s: inflation. Americans grew concerned about preserving their spending power, questioning whether the fixed value of traditional life insurance could keep up with increases in the cost of living. Members of Lutheran Brotherhood (LB), one of Thrivent’s predecessor organizations, began to turn to mutual funds offered by other companies to take advantage of potential higher returns made possible through stock market investing.
After two years of research—and forming a for-profit subsidiary—to create a fund that fit with the society’s financial values and was focused on long-term growth, LB became the first fraternal benefit society in 1970 to make mutual funds available to its members. Sales exploded. During the six-week charter investment offering, more than 12,000 members invested nearly $12 million in the Lutheran Brotherhood Fund. That was $2 million more than the company hoped for.
While other fraternal organizations opposed mutual funds, thinking they were a threat to fraternal insurance, LB president Arley Bjella maintained that the fraternal concept should not constrict the development of new ideas. Fraternal benefit societies should consider different opportunities to offer new and evolving financial products to fulfill their mission and best serve their members.
Thrivent continues to offer award-winning investment products, including our
Lauren Gaines is Thrivent's corporate historian and archives manager.
