This Fund is Important. Here’s Why:

April 2015

NEW - resizedI am going to give you three compelling reasons why the AFL-CIO Equity Index Fund is a critical vehicle for union pension assets:

1. The labor movement can be very proud of the fact that the AFL-CIO Equity Index Fund has one of the lowest known management fees anywhere.

The ultra-low annual fee of only 1.5 basis points allows union pension funds to keep their money.

2. The Fund, managed by ASB Capital Management, has also generated strong performance.

It achieved a 13.63% return in 2014, net of fees and expenses, closely tracking the S&P 500 Index’s return.

3. The Fund is an advocate for corporate accountability through proxy voting and shareholder resolutions; the Fund votes in line with the AFL-CIO Proxy Voting Guidelines 100 percent of the time.

In contrast, other index fund providers like Blackrock, Vanguard, Fidelity, and others vote less than 50 percent of the time with the AFL-CIO Proxy Voting Guidelines, according to the AFL-CIO Key Votes Survey.

Please email me personally for more information, and we would be happy to set up a meeting.

mike sig



Mike Stotz
AFL-CIO Investment Trust Corporation


Heather’s Corner

heather slavin resizedHeather Slavkin Corzo is Director of the AFL-CIO Office of Investment. 

Despite SEC’s Proposed Rule, CEO-to-Worker Pay Gap is Still Not Disclosed to Investors

It’s that time of the year again, when companies publish their annual reports disclosing how much their top executives are paid. Missing from those reports, however, is a comparison of the chief executive’s pay with that of the company’s typical employee.

It has been almost five years since the Dodd-Frank Wall Street Reform and Consumer Protection Act required companies to disclose the CEO-to-worker pay gap, and more than a year-and-a-half since the Securities and Exchange Commission proposed a rule implementing that provision in the law. Frenzied lobbying by corporations opposing the disclosure has delayed the SEC from finalizing its proposal.

A recent study by the Center for Economic and Policy Research for the New York Times estimated the pay gap at the companies with the highest paid CEOs in 2014. Among the companies with the widest disparity are Microsoft, where CEO Satya Nadella was estimated to have earned 2,012 times the typical employee, according to the New York Times estimate, and 150 times the typical employee, using the company’s numbers. Oracle founder Lawrence Ellison was estimated to have earned 1,183 times the salary of the typical employee. And, at Starbucks the ratio between the pay of founder and CEO Howard D. Schultz and the typical barista was an estimated 1,073 to one.

Unfortunately, this type of economic analysis is only available for a handful of companies. Until the SEC finalizes its rule requiring companies to disclose the ratio of CEO-to-worker pay, investors can only hazard a guess about whether the gap has widened.


Union Spotlight

Sheet Metal Workers Local #265

john boskeSheet Metal Workers Local #265 was established in 1913 and has more than 1,800 members across nine counties in Illinois.  Local 265 members work in building and  construction, production, and in service technician positions.

“Building a strong union is important.  When you’re a tradesperson in a non-union position you’ve got a job.  When you’re in a union, you have a career,” said John Boske, Business Manager and President of Local 265.

Mr. Boske joined his union in 1977, right out of high school.

“My neighborhood was a working class neighborhood.  The men on the block that I lived on all had a union button on the side of their hat, and it meant that they were able to provide for their families,” said Mr. Boske.

For Mr. Boske, investing in the AFL-CIO Equity Index Fund is part of keeping his promise to his members.

“Our members are hardworking people, and they trust us to invest the union’s pension money wisely.  When we found out that the AFL-CIO Equity Index Fund had some of the lowest fees around and was in line with the S&P 500, we chose to invest in it.  By investing in a fund with low fees, we are fulfilling our promise to our members that we will be good stewards of their money,”* said Boske.


What the Illinois Labor Movement is Saying About the AFL-CIO Equity Index Fund*:


ramirez“We need to make sure our union pension dollars are working for us, not against us. The AFL-CIO Equity Index Fund was created because it is a proactive way for us to leverage our pension assets in line with our values.”

– Jorge Ramirez
Chicago Federation of Labor





carrigan“The Equity Index Fund’s buy-and-hold strategy minimizes trading costs.”

– Michael T. Carrigan
Illinois AFL-CIO





villanova“What makes the AFL-CIO Equity Index Fund so powerful is not just the low fees and good returns, but the fact that it guarantees that those dollars will be voted in the best interests of working families.”

– Thomas Villanova
Chicago & Cook County Building Trades



*Testimonials may not be representative of the experience of other customers. Testimonials are no guarantee of future performance or success.