Consider the Potential

November 2014

Consider the Potential

Mike StotzI was so thrilled recently to announce that the AFL-CIO Equity Index Fund currently has more than $5.3 billion in total assets and that this is the fastest growing fund in AFL-CIO history.

With that said, I also know that we still have a long way to go.

Here is my request of you today. Please look at the list below of union investors in the Fund. If your pension fund isn’t already investing in the AFL-CIO Equity Index Fund, please reach out to me by responding to this email so that we can set up a meeting with you and your management consultant.

We truly feel that it is a no-brainer given its ultra-low annual fee of only 1.5 basis points (0.015%) and the fact that the Fund votes in line with the AFL-CIO Proxy Voting Guidelines 100 percent of the time.

Thanks again for your continued leadership and commitment.

In Solidarity,

mike sig



Mike Stotz
AFL-CIO Investment Trust Corporation (ITC)


Heather’s Corner

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

AFL-CIO questions Wall Street firms on “golden parachutes” for government service

The AFL-CIO is focusing its shareholder activism on Wall Street firms, questioning them about generous payouts they offer to departing executives who take government jobs.

In a November 20th letter to seven of the nation’s largest financial institutions, AFL-CIO President Richard Trumka asked the firms to explain the special treatment they give to executives who switch to government jobs.

The AFL-CIO letter asked JP Morgan Chase & Co., Citigroup Inc., Bank of America Corp., Goldman Sachs & Co., Morgan Stanley, Wells Fargo & Co. and Lazard Ltd., to provide details of these payouts, including naming all the executives eligible to cash out of their equity awards when they switch to government jobs, or continue accruing the equity awards even before fulfilling the tenure or performance requirements.

The AFL-CIO letter comes amid increasing concerns by investors and lawmakers about the cozy relationships between the nation’s largest banks and regulators. The letter questions the favors these firms may receive from offering such “golden parachutes” to executives who go to work for the federal government.

“Why is it in the interest of Goldman Sachs to incentivize such departures?  Surely Goldman Sachs does not expect favorable government treatment from its former executives.” President Trumka wrote in the letter to James A. Johnson, chairman of Goldman Sachs’ Compensation Committee, echoing the language in similar letters to the other financial institutions.

The AFL-CIO will consider filing shareholder proposals at the banks if it does not receive a satisfactory response. 


Shep’s Corner

Shep BurrShepard Burr is President of the ASB Investment Management division of  ASB Capital Management, LLC.  ASB Capital Management, a registered investment manager, is the manager of the AFL-CIO Equity Index Fund.

AFL-CIO Equity Index Fund returns continue to track the benchmark closely, and to beat most other peer index funds in doing so.

In the third quarter, the AFL-CIO Equity Index Fund ranked in the top 8% in returns in the Lipper Rankings (Lipper US/All Share Classes/S&P 500 Index Universe) for the year-to-date, one-year, two-year, and three-year time frames.

During these periods, the AFL-CIO Equity Index Fund’s overall returns have also helped participating pension plans meet their actuarial assumptions. Specifically, the Fund has a one-year return of 19.66%, and two- and three-year annualized returns of 19.47% and 22.90%, respectively.

So far, good management, a low fee, and a strong market are making a meaningful difference for Fund investors!


Union Spotlight


International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers (IUE-CWA) was officially formed on November 2, 1949 and grew from no members to more than 300,000 in three years. By the mid-1950s, IUE had emerged as a dominant industrial union representing workers in the electrical-electronics manufacturing sector. Today, IUE-CWA has more than 45,000 members who are manufacturing and industrial workers.

clark IUECWA“The growth of the AFL-CIO Equity Index Fund shows an increasing demand for investments that promote good corporate governance.”

– James D. Clark
Division President



cohen“The richest one percent in the U.S. have more than one-third of the nation’s wealth, while 60 percent of Americans barely have any piece of that pie. Funds like the AFL-CIO Equity Index Fund make sure that workers’ pension plans have a voice inside some of America’s largest companies to ensure greater corporate accountability through proxy voting.”

– Larry Cohen
Communications Workers of America (CWA)


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


almeida2“When we work together—as workers and investors—we are stronger than when we stand alone. The AFL-CIO Equity Index Fund gives us the opportunity to invest to change corporate behavior—it gives our pension plan power we wouldn’t have otherwise.”

– Paul E. Almeida
Department for Professional Employees (DPE)

junemann“Too often, directors have awarded compensation packages that go well beyond what is required to attract and retain executives, and have even rewarded poorly performing CEOs. The AFL-CIO Equity Index Fund is a tool to assist in strengthening our collective voice behind the AFL-CIO Proxy Voting Guidelines.”

– Gregory J. Junemann
International President
International Federation of Professional and Technical
Engineers (IFPTE)


DAGGETTT“Proxy voting and shareholder activism allow us to have a big impact on how corporations behave. The Fund gives us the power—the power to hold corporations accountable for what they do with our stockholdings.”

– Harold Daggett
International Longshoremen’s Association (ILA)


Goodwin2004“Not only does the AFL-CIO Equity Index Fund help union members’ pension plans, it gives working Americans a voice and a vote on Wall Street.”

– Michael Goodwin
Office and Professional Employees International Union



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