December 2014

Mike StotzIn just two months the AFL-CIO Equity Index Fund—already the fastest growing investment program in AFL-CIO history—raised an additional one billion dollars in new investments from more than a dozen pension plans.

That means that we now have more than six billion dollars in committed funds!

More importantly, I am proud to say that this Fund is already starting to become a major player on Wall Street. We’ve been actively using our growing share ownership of companies to successfully tackle corporate pay disclosure, golden parachutes, and excessive perks for executives.

We are also saving the unions money. The ultra-low annual fee of only 1.5 basis points (0.015%) really makes investing in this program a no-brainer. Also, although past performance is not a guarantee of future results, the Fund has a three-year annualized return of 16.50% compared to the S&P 500 Index Fund Average three-year annualized return of 15.92%.

If you aren’t already investing in the AFL-CIO Equity Index Fund, please tell your consultants to meet with us. Why should you be paying higher fees and/or investing in a fund that doesn’t vote in-line with the AFL-CIO Proxy Voting Guidelines 100 percent of the time?

It’s about investing in ourselves!

Together let’s reach $7 billion in record time!

Contact me anytime with questions. This is the labor movement’s program, and we work for you.

In solidarity,

mike sig



Mike Stotz
AFL-CIO Investment Trust Corporation (ITC)


Heather’s Corner

Heather Slavkin Corzo is Director of the AFL-CIO Office of Investment. 

heather slavin resizedAFL-CIO Shareholder Efforts Focus On Student Loan Company Navient
Institutional investor draws attention to company’s alleged abuse of student loan borrowers

Earlier this month, the AFL-CIO sent a letter to Navient, the giant student loan servicer, questioning whether it has the necessary processes in place to prevent it from violating the law and losing lucrative government contracts.

The letter is part of the AFL-CIO’s shareholder activism efforts.

Navient, which was previously part of Sallie Mae, was part of a $97 million settlement earlier this year related to allegations that it overcharged 60,000 active-duty members of the armed forces on their student loans in violation of the Servicemembers Civil Relief Act. The Consumer Financial Protection Bureau and attorneys general from several states are also investigating the company’s loan servicing practices.

Navient depends on contracts with the Education Department, and the AFL-CIO and other organizations opposed the renewal of the $106 million contract last year because of the company’s alleged violations of the law. Although the contract was eventually renewed, the alleged misconduct resulted in a review by the Education Department.

“As long-term, diversified investors, we have a profound interest in the performance of each stock in our portfolio and the safety and soundness of the financial markets,” AFL-CIO President Trumka wrote in the letter to Navient. He asked the company to explain what it is doing to strengthen its compliance with the law.


Shep’s Corner

Shepard 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.

Shep BurrTaft-Hartley pension plans have led the way to the AFL-CIO Equity Index Fund’s $6 billion in commitments and increasing influence on Wall Street.  Although there has been participation from about a dozen Public pension plans so far, there is opportunity for much more.  Low fees, good performance, and proxy voting for long-term shareholder value are as important to Public pension plan beneficiaries as to those of Taft-Hartley pension plans.


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

Curry“The AFL-CIO Equity Index Fund doesn’t just talk the talk. It walks the walks. The AFL-CIO Equity Index Fund votes 100 percent in line with the AFL-CIO’s Proxy Voting Guidelines, as anyone can see in the AFL-CIO Key Votes Survey.”*

– Jimmy Curry
Oklahoma State AFL-CIO


RI - Nee“When we use shareholder activism and vote in line with the AFL-CIO Proxy Voting Guidelines through the AFL-CIO Equity Index Fund, we can influence companies on issues such as executive pay and corporate political spending disclosure.”*

– George Nee
Rhode Island AFL-CIO


mckee“The AFL-CIO Equity Index Fund votes 100 percent in accordance with the AFL-CIO Proxy Voting Guidelines. This represents a worker-owner view of value that emphasizes management accountability and good corporate governance.”*

– Erin McKee
South Carolina AFL-CIO

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