afl-cio equity index fund - investing in ourselves
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2014
$1,290,830,274
$3,033,858,627
$3,513,066,346
$4,165,957,329
The fastest growing fund in AFL-CIO history
This chart reflects additions to the AFL-CIO Equity Index Fund by new investors, as well as fluctuations in market value.
Three years ago, a new fund, the AFL-CIO Equity Index Fund, opened
for investment. In that brief period of time, it has grown to more than
$4 billion in committed assets. We are extremely proud of the Fund and
the potential it has to positively impact the issues our members care about.
It’s an S&P 500 fund that makes a difference—using proxy-voting power
to encourage companies to adopt responsible business practices. It is also
very affordable, charging only minimal management fees of one and a
half basis points a year.
The AFL-CIO Equity Index Fund promotes good corporate governance through shareholder
activism, which gives investors the opportunity to change corporate behavior. Unlike many
competing index fund products, the Fund votes entirely in line with the AFL-CIO Proxy
Voting Guidelines. The Fund shows that union workers have a strong interest in pooling
their investment dollars together. The Fund has also shown that shareholder activism has
the power to bring about meaningful change in America’s largest corporations.
The Equity Index Fund allows for proxy voting and shareholder resolutions that are aligned
with the labor movement’s principles of capital stewardship 100 percent of the time.
Now is the time to invest with our values for the good of workers’ retirement security!
Richard Trumka
President, AFL-CIO
Dear Brothers and Sisters,
Created by the AFL-CIO, the AFL-CIO Equity Index Fund (EIF) is a
collective investment fund available to qualified pension plans. The
EIF tracks the returns of the broad U.S. large-cap equity market, as
represented by the S&P 500 Index. Stocks in the EIF’s portfolio are not
actively traded, resulting in low fees and expenses of 1.5 basis points.
The EIF launched in March of 2011 and has since grown to over $4
billion in invested and committed assets from 67 qualified pension
plans.*
The EIF also advocates shareholder activism and corporate governance
reform through proxy voting. The EIF votes in line with the AFL-CIO
Proxy Voting Guidelines 100 percent of the time. Every vote. Every
time. According to the AFL-CIO Key Votes Survey, the EIF’s biggest
competitors often vote against these guidelines. The EIF has tackled
corporate pay disclosure, golden parachutes, and excessive perks
for executives.
The EIF is managed by ASB Capital Management, a registered
investment advisor, which has handled Taft-Hartley pension plan
investments for more than 30 years and has a perfect AFL-CIO Key
Votes proxy record. ASB manages a total of $12 billion in S&P 500
Index investment mandates for multi-employer, public, and union
pension plans. Chevy Chase Trust Company is trustee of the EIF, and
maintains fiduciary authority over its management.
* As of January 31, 2014
About the AFL-CIO Equity Index Fund
In only three years since its inception, the AFL-CIO Equity Index Fund
has grown to more than $4 billion in committed assets.
This type of growth is truly unprecedented and it’s because now, more
than ever, unions are looking for pension fund investments that not only
have low fees, but also share their values.
The AFL-CIO Equity Index Fund proxy votes in line with the AFL-CIO
Proxy Voting Guidelines 100 percent of the time.
But with trillions more dollars in workers’ pension funds across America, we need to
exponentially grow to fully maximize our capacity to create change at boardrooms and
shareholder meetings across the country.
CEOs of S&P 500 Index companies made 354 times the average wages of rank-and-file
workers in 2012. The AFL-CIO Equity Index Fund promotes good corporate governance
through proxy voting and shareholder activism.
Last year, the AFL-CIO Equity Index Fund submitted shareholder proposals to reform
executive compensation practices and to establish independent chairs of corporate boards.
On top of that, the expenses and fees are extremely low because the objective of the Fund
is to track the returns of the U.S. large cap equity market as represented by the S&P 500
Index. The Fund ranks in the top 11 percent in returns in the Lipper S&P 500 Index Fund
Universe Rankings.*
Please ask your consultant to set up a meeting with us to discuss the AFL-CIO Equity Index
Fund and let’s continue to grow!
Mike StotzPresident, AFL-CIO Investment Trust Corporation (ITC)
* Top 11% performance in the Lipper US/All Share Classes/S&P 500 Index Universe (through 9/30/13) for quarter and year to date, and one and two year periods.
Dear Brothers and Sisters,
AFL-CIO Equity Index Fund vs. the Competition
Percentage of AFL-CIO Key Votes Cast In Accordance with the AFL-CIO’s Proxy Voting Guidelines
AFL-CIO Equity Index Fund 100%
JPMorgan 58%
T. Rowe Price 55%
AllianceBernstein 52%
Deutsche Bank 52%
Charles Schwab 52%
Bank of New York Mellon 40%
State Street Global Advisors 37%
BlackRock 32%
TIAA-CREF 23%
Vanguard 23%
American Funds 21%
Fidelity Investments 19%
Northern Trust 14%
Source: 2013 AFL-CIO Key Votes Survey, available at http://www.aflcio.org/proxyvotes
“Pension fund
invest ment in
labor-friendly
ventures,
such as the AFL-CIO Equity Index
Fund, allows us the right to use
our investments to proxy vote as
shareholders.”
—�Lawrence�J.�Hanley,�International�
President,�Amalgamated�Transit�
Union�(ATU)
“The AFL-CIO
Equity Index
Fund promotes
good corporate
governance through proxy voting.”
—�Nick�Wyman,�President,�Actors’�
Equity�Association�(AEA)
“As a whole, the
labor movement
has the power—
and responsibility—
to do what we can for all working
Americans. Investing in the AFL-CIO
Equity Index Fund and other similar
labor-friendly funds strengthens the
power of workers’ pension plans
through shareholder activism.”
—�J.�David�Cox,�National�President,�
American�Federation�of�Government�
Employees�(AFGE)
* Top 11% performance in the Lipper US/All Share Classes/S&P 500 Index Universe (through 9/30/13) for quarter and year to date, and one and two year periods.
The EIF tracks the S&P 500 closely, outperforming 89 percent of its peer funds in every period measured.*
“The AFL-
CIO Equity
Index Fund
expands our
voice to influence companies on
issues like pay-vote frequency,
golden parachutes, equity
compensation plans, executive
compensation, and more.”
—�Diann�Woodard,�President,�
American�Federation�of�School�
Administrators�(AFSA)
“The AFL-CIO Equity
Index Fund votes
100 percent with
the AFL-CIO Proxy
Voting Guidelines. Why is this important?
It gives workers’ pension plans a seat
at the table around issues impacting
corporate governance including board
independence, the company’s long-
term financial performance, the overall
conduct of the company, and the board’s
responsiveness to shareholders.”
—�Ray�Hair,�International�President,�
American�Federation�of�Musicians�of��
the�United�States�and�Canada�(AFM)
“The Equity
Index Fund
gives back the
power to our
union members’ pension plans
as investors. By putting our union
dollars in a fund that promotes
good corporate governance we
can ensure that we’re investing
in ourselves.”
—�Lee�Saunders,�President,�American�
Federation�of�State,�County,�and�
Municipal�Employees�(AFSCME)
“The AFL-
CIO Equity
Index Fund
always,
100 percent of the time, votes
in line with the AFL-CIO Proxy
Voting Guidelines. The Equity
Index Fund is our best choice if
we want to make sure that our
dollars are voted in our pension
plan’s best interest.”
—�John�Radcliffe,�President,�
American�Radio�Association�
(ARA)
“AFT members
participate in
pension plans with
over $1 trillion in
assets. We are committed to organizing
our funds to be active, responsible
stewards of workers’ capital. The AFL-
CIO Equity Index Fund represents a
powerful opportunity for pension plans
to reduce investment costs, while also
promoting good corporate governance
and responsible capital stewardship.”
—�Randi�Weingarten,�President,�American�
Federation�of�Teachers�(AFT)
“There’s only
one route to
take if we want
to ensure that
pension dollars are voted the right
way. The AFL-CIO Equity Index
Fund gives workers an important
voice in corporate decision-making
through shareholder activism and
proxy voting—it gives us a say
about how the corporations we
labor for are managed.”
—�F.�Leo�McCann,�President,�
American�Train�Dispatchers’�
Association�(ATDA)
“Armed
with strong
proxy voting
guidelines, the
AFL-CIO Equity Index Fund allows
pension plans to exercise their
voting rights to focus corporations
on building long-term value,
thereby providing healthy financial
returns, employment growth, and
retirement security.”
—�Dan�Pickett,�President,�
Brotherhood�of�Railroad�
Signalmen�(BRS)
“We have a
tremendous
opportunity to
invest our dollars
in a way that reflects our values.
That is what the AFL-CIO Equity
Index Fund is all about—pooling our
resources in order to be able to vote
through proxy strength in the interest
of our members’ pension plans and
all working families.”
—�David�B.�Durkee,�International�
President,�Bakery,�Confectionary,�
Tobacco�Workers�&�Grain�Millers�
International�Union�(BCTGM)
“Our members’
pensions are
among the
most valuable
assets we provide. The AFL-CIO
Equity Index Fund is a powerful
opportunity for pension plans to
reduce costs, while promoting good
corporate governance through proxy
voting and shareholder activism at
the same time.”
—�Michael�Bilbrey,�Association�
President,�California�School�
Employees’�Association�(CSEA)
The EIF promotes shareholder activism and improved corporate governance.
“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,�President,�
Department�for�Professional�
Employees�(DPE)
“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 account-
ability through proxy voting.”
—�Larry�Cohen,�President,�
Communications�Workers�of�
America�(CWA)
“With CEO
pay growing
exponentially
and workers’ pay
remaining stagnant, investments
in the AFL-CIO Equity Index Fund
and other union-friendly funds give
workers’ pension plans a real voice
around issues like the appropriateness
of executive compensation.”
—�Baldemar�Velasquez,�President�&�
Founder,�Farm�Labor�Organizing�
Committee�(FLOC)
“Corporate
investment
in workforce
training can
enhance both companies and their
employees. The AFL-CIO Equity Index
Fund gives pension plans a voice
to raise these sorts of issues, which
can also include worker safety and
general wellness issues.”
— Carlo�Fiorletta,�President,�The�Guild�
of�Italian�American�Actors�(GIAA)
“The AFL-
CIO Equity
Index Fund
gives pen-
sion plans a tremendous voice
in board of director elections.
Shareholders elect corporate
directors to hire, monitor,
compensate and, if necessary,
terminate senior management.
That is why it is so important
to make sure that our pension
fund holdings are being voted
the right way.”
—�Bruce�R.�Smith,�President,�
Glass,�Molders,�Pottery,�
Plastics�&�Allied�Workers�
International�Union�(GMP)
“What
differentiates
the AFL-CIO
Equity Index
Fund from other investment vehicles
is its promotion of good corporate
governance. This is accomplished
through its proxy voting, which is done
in accordance with AFL-CIO guidelines
and allows investors to exercise
their rights by supporting important
shareholder initiatives on corporate
accountability, employee relations,
and executive compensation.”
—�Walter�W.�Wise,�General�President,�
International�Association�of�Bridge,�
Structural,�Ornamental,�and�
Reinforcing�Iron�Workers�(Ironworkers)
“By supporting funds like the AFL-CIO Equity
Index Fund, we can use our voice as share-
holders to push for transparency issues, such as
supporting independent auditors who can help
protect the integrity and reliability of corporate financial reporting.”
— Harold�A.�Schaitberger,�General�President,�International�Association�
of�Fire�Fighters�(IAFF)
“There is a huge benefit in having proxies voted in a
manner that is consistent with AFL-CIO guidelines and
reflects the interests of plan participants. It gives us a
voice that we wouldn’t have otherwise. I encourage all
pension plans to make sure their dollars are being invested consistently with
our values through vehicles like the AFL-CIO Equity Index Fund.”
—�James�A.�Grogan,�General�President,�International�Association�of�Heat�and�
Frost�Insulators�and�Allied�Workers�(HFIAW)
“Executive pay excesses come at the expense of
shareholders, as well as the company and its employees.
That is why a labor-friendly vehicle like the AFL-CIO
Equity Index Fund is so important—it allows us to engage
in shareholder activism to address issues of excessive compensation.”
—�R.�Thomas�Buffenbarger,�International�President,�International�Association�of�
Machinists�and�Aerospace�Workers�(IAM)
“Our investment
in the AFL-CIO
Equity Index
Fund encourages
companies to succeed over the
long-term by treating their employees
right. By voting in favor of labor and
human rights shareholder proposals,
the Fund gives us the power to
make sure that we are investing
consistently with our values.”
—�Newton�B.�Jones,�International�
President,�International�Brotherhood�
of�Boilermakers,�Iron�Ship�Builders,�
Blacksmiths,�Forgers,�and�Helpers�
(IBB)
“With exceptional
benchmark
tracking, proxy
voting, and
shareholder resolutions, we are very
proud to have chosen the AFL-CIO
Equity Index Fund and strongly
support the notion that our pension
plans should invest in the interests of
their participants and beneficiaries.”
—�Joseph�J.�Nigro,�General�President,�
International�Association�of�Sheet�
Metal,�Air,�Rail�and�Transportation�
(SMART)
“THE IBEW
applauds the
performance
of the AFL-
CIO Equity Index Fund, which
is based on solid principles that
we have long utilized in our own
investment program. The Equity
Index Fund is a proven, valuable
part of labor’s investment
strategy.”
—�Edwin�D.�Hill,�International�
President,�International�
Brotherhood�of�Electrical�
Workers�(IBEW)
The EIF successfully negotiated changes in executive compensation at Citigroup and Chesapeake Energy, and prompted the appointment of an independent chairman of the board at Pitney Bowes.
“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,�President,�
International�Longshoremen’s�
Association�(ILA)
“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)
“Putting our
money to work
for workers’
interests as
pension plan participants, that’s
what the AFL-CIO Equity Index
Fund is all about—making sure
that we invest in ourselves.”
—�Daniel�Bradley,�President,�
International�Plate�Printers,�Die�
Stampers�and�Engravers�Union��
of�North�America
The EIF has advocated for the mandatory disclosure of CEO to worker pay ratios, which have increased to a shocking 354:1.*
* According to the AFL-CIO Executive Paywatch.
“Proxy voting
and shareholder
activism are
just two of the
benefits of the AFL-CIO Equity Index
Fund. We can influence corporate
decision-making and make sure
that our investments are benefiting
all workers who are pension plan
participants.”
—�Kenneth�E.�Rigmaiden,�General�
President,�International�Union�of�
Painters�and�Allied�Trades�of�the�
United�States�and�Canada�(IUPAT)
“Shareholder
activism is critically
important. Our union
has been exercising
our voice as investors for many years
now—as long as I’ve been around. We’ve
sent representatives to the meetings
of big corporations and have had an
impact on golden parachutes and similar
issues. We’ve raised the playing field for
corporate governance and I think we need
to do a lot more of that in the future,
not just for the Bricklayers, but everyone
else, too. We need to hold corporations
accountable for what they do with our
investments.”
—�James�Boland,�President,�International�
Union�of�Bricklayers�and�Allied�
Craftworkers�(BAC)
“The AFL-
CIO Equity
Index Fund
is an import-
ant tool. No other investment
fund gives us so many important
opportunities to create value
through shareholder activism.”
— Samuel�A.�Cabral,�International�
President,�International�Union�
of�Police�Associations�(IUPA)
“We know that we have to invest in ourselves in order to
make a difference. The AFL-CIO Equity Index Fund gives
us that opportunity—to invest our pension dollars for the
good of all.”
—�Paul�M.�Rinaldi,�President,�National�Air�Traffic�Controllers�Association�(NATCA)
“The Letter Carriers feel strongly that programs
like the AFL-CIO Equity Index Fund are important
vehicles to create meaningful change and make
our pension investments go further and further.”
—�Fredric�V.�Rolando,�National�President,�National�Association�of�Letter�
Carriers�(NALC)
“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,�President,�Office�and�Professional�Employees�
International�Union�(OPEIU)
“Proxy voting and shareholder resolutions give us
opportunities other investment funds don’t have—
the ability to influence corporate behavior.”
— John�F.�Hegarty,�National�President,�National�Postal�Mail�Handlers�Union�
(NPMHU)
“We, as union
members and
as investors,
have a real
opportunity to use the power of
our pension investments to change
corporate behavior. The AFL-CIO
Equity Index Fund is a tool for us to
make sure we are investing in our
own pension plan’s best interests.”
—�Harry�Lombardo,�International�
President,�Transport�Workers�
Union�of�America�(TWU)
“Investing
with our
values—that’s
something no
other invest ment fund can do. If
we’re interested in an economy that
works for all, we need investment
vehicles that give us the opportunity
to put our money where it will work
for us, not against us.”
—�Patrick�D.�Finley,�General�President,�
Operative�Plasterers’�and�Cement�
Masons’�International�Association�
of�the�United�States�and�Canada�
(OPCMIA)
“We, as union
members, know
that when we
work together we
are stronger. That’s why the AFL-CIO
Equity Index Fund is so important—
it helps us use our pension funds
collectively to influence corporations.
There’s no other tool for investment
that allows us to show our strength
in this way.”
—�D.�Taylor,�President,�UNITE�HERE
The EIF votes investor proxies in line with the AFL-CIO Proxy Voting Guidelines 100 percent of the time.
“The AFL-CIO Equity Index Fund’s biggest competitors often
vote against the AFL-CIO Proxy Voting Guidelines. That’s why
it is critical that unions support funds that share our values.”
—�William�P.�Hite,�General�President,�United�Association�of�Journeymen�and�Apprentices�
of�the�Plumbing�and�Pipe�Fitting�Industry�of�the�United�States�and�Canada�(UA)
“Investing our pension funds in labor-friendly ventures like the AFL-CIO
Equity Index Fund is simply the right thing to do. It gives us the power to
make sure our investments support all workers as pension plan participants.”
—�Joseph�T.�Hansen,�International�President,�United�Food�and�Commercial�Workers�International�
Union�(UFCW)
“Seven of the twelve wealthiest people in the world are from the Koch,
Walton, or Adelson families. Given this consolidation of wealth, we
need to make sure that workers’ pension plans also have a voice in
the capital markets through their proxy voting. Funds like the AFL-CIO
Equity Index Fund are a critical part of that strategy.”
—Leo�W.�Gerard,�International�President,�United�Steelworkers�(USW)
“The AFL-CIO Equity Index Fund offers responsible
proxy voting and shareholder activism, geared to
improving corporate governance, which is 100 percent
in line with the AFL-CIO Proxy Voting Guidelines.”
—�Cecil�E.�Roberts,�President,�United�Mine�Workers�of�America
“It is more important
than ever before that
unions find more ways
to invest in themselves
and support investment funds that work
for us, not against us. The AFL-CIO Equity
Index Fund shares our values and, through
proxy voting and shareholder resolutions,
we can rest assured that our investments
are being used in ways that will benefit all
workers’ pension plans.”
—�D.�Michael�Langford,�National�President,�
Utility�Workers�Union�of�America�(UWUA)
“The AFL-CIO
Equity Index
Fund is an
excellent choice
for union pension plans and union
workers. The Fund promotes
shareholder activism by voting
proxies in accordance with AFL-CIO
guidelines 100 percent of the time.”
—�Kinsey�M.�Robinson,�International�
President,�United�Union�of�Roofers,�
Waterproofers�and�Allied�Workers�
(Roofers�and�Waterproofers)
“One of the
best ways
to support
workers’ interests as pension
plan participants and benefi-
ciaries is through the AFL-CIO
Equity Index Fund—it gives our
plans the ability to make sure
our dollars are invested with our
values. It’s an important tool for
investing in ourselves!”
—�Michael�Winship,�President,�
Writers�Guild�of�America,�East�
Inc.�(WGAE)
The EIF has the lowest known investment management fee of any index fund.
Fund is subject to market risk. The AFL-CIO Equity Index
Fund is not a mutual fund. It is a collective investment
fund established by Chevy Chase Trust Company under
Maryland banking law, and its units are exempt from
registration under the Securities Act of 1933. Investments
in the Fund are not deposits, obligations of, or insured by
Chevy Chase Trust Company, ASB Capital Management
LLC, the United States government, or any United States
government agencies. This is not a prospectus and has not
been approved by the SEC.
The decision to participate in the Index Fund or to offer
the Index Fund as an investment option (in the case of
self-directed accounts) must be made by the trustees
of each individual plan after reviewing all available
information. The AFL-CIO is not an investment advisor
or investment manager, and does not have any intention
of, and shall not be deemed to be, advising any plan, its
trustees, its participants or its beneficiaries regarding the
making of an investment in the Index Fund. Moreover, the
AFL-CIO makes no representation or warranty, express or
implied, as to the results to be obtained by the Fund or any
investor in the Index Fund.
Photos used with permission from the AFL-CIO.
Disclaimer
For questions regarding the AFL-CIO Equity Index Fund, please contact:
AFL-CIO Investment Trust CorporationMike Stotz, President
815 Connecticut Ave, NW, Suite 320Washington, DC 20006
202-898-9190indexfund@aflcio-itc.com
ASB Capital Management LLCShep Burr, President,
ASB Investment Management Division7501 Wisconsin AvenueSuite 1500, West TowerBethesda, MD 20814
(240) 497-5071 sburr@asbcm.com
www.aflcio-indexfund.com
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