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A PUBLICATION BROUGHT TO YOU BY ULLICO | LABOR’S COMPANY | VOL.5, ISSUE 3 | WINTER 2017 MESSAGE FROM THE CEO: Happy 40th In the construction trades, what do you do when there is no work? The answer for Ullico, 40 years ago, was to create your own work. It started out as a way to earn sound, risk- adjusted returns on union pension dollars, with the significant benefit of putting union members and union contractors to work via labor language requiring a 100% union workforce. The program was launched in the 70s, when unemployment in the trades was running in the double digits. This year, we are celebrating the 40th anniversary of Ullico’s flagship product, Separate Account J (J for Jobs). Since its inception, Separate Account J has closed over 500 loans, in excess of $16.5 billion. Continued on page 2 INSIDE THIS ISSUE: 1 Message from the CEO 3 Ullico Continues to Invest in Infrastructure 4 Union Labor Life Celebrates Longstanding Clients 6 Ullico Celebrates 40th Anniversary of J for Jobs 7 JATC Leaders and Instructors Affected by DOL Rules 8 2017 Scholarship Winners 9 Get to Know Ullico 10 Welcome to Our New Clients MESSAGE FROM THE CEO: Labor, with the express purpose to help provide financial security to working men and women and their families. It th acknowledged the growth in the Ullico family of companies Happy 40 to include insurance products that serve to protect labor Continued from cover page organizations, unionized employers, institutional investors and union members, and provide the investment platforms We estimate that this activity created over 600 million that are helping to sustain the labor movement. The hours of work, and 300,000 jobs for union members. Many Resolution also highlighted that two-thirds of the directors thanks to all our investors and consultants who made this of Ullico are presidents or other senior officials of labor idea a reality, and to our portfolio management team who organizations affiliated with the AFL-CIO, and that we are make it all work so well. the only labor-owned insurance and investment company. We are so proud to be labor’s company. Looking back, Separate Account J was the groundbreaking idea that has paved the way for other investment products, The convention also provided a great opportunity for us such as, the Ullico Infrastructure Fund, all representing to showcase our product line during a Lunch and Learn great vehicles to leverage the vast economic power of the session we sponsored that was widely attended by delegates labor movement by investing in itself. Happy Anniversary, of the various unions represented at the convention. J for Jobs! Let’s have 40 more. Attending the convention, and seeing firsthand the energy The best part is, while we are celebrating Separate Account and commitment of the delegates in attendance, reminded J, our 90th anniversary, and all our legacy products that me once again of the incredible power of people coming have stood the test of time, our success is founded in our together for a common purpose. The labor movement is ability to consistently bring new products to market. alive and well, and we at Ullico are proud to be a part of it. Products like our cyber liability insurance, which has tripled its policy count over the last year, meet the changing Happy Holidays! insurance needs of the union marketplace. All our products must meet our continuing standard of protecting, growing, and solving problems in the union workplace. I want to personally thank President James Boland of the Bricklayers and Allied Craft Workers, and a Ullico board member, for presenting Resolution 27 at the Edward M. Smith recently concluded AFL-CIO Convention in St. Louis. The President and CEO Resolution, celebrating Ullico’s 90th Anniversary, recalled Ullico Inc. its establishment in 1927 by the American Federation of RISK MANAGEMENT FOR FIDUCIARIES DEFENSE PROTECTION FOR Policyholders of Ullico Casualty Group’s Fiduciary Liability UNION OFFICIALS program have two new loss control benefits: A labor union may not fund the defense of union • Unlimited access to fiduciary content, tools officers in section 501(b) actions except in and pre-claim advice through Ullico Resource Center. extraordinary circumstances. Learn more about • Complimentary copies of the International Foundation the need for Individual Labor Leader Endorsements of Employee Benefit Plan’s Trustee Handbook. to Union Liability Policies. DISCOVER MORE: READ THE FREE WHITEPAPER: WWW.ULLICO.COM/CASUALTY/FIDUCIARY-LIABILITY-INSURANCE WWW.ULLICO.COM 2 | ULLICO BULLETIN | WINTER 2017 Photo taken Labor Day 2017 at current Infrastructure Fund deal, CPV Towantic Springbok can be a great economic driver Ullico Continues to for the local community while creating good union jobs for our members.” “Through this investment, Ullico Invest in Infrastructure demonstrates its commitment to projects that provide clean, low-cost energy across The Ullico Infrastructure Fund (UIF) was Not long ago, UIF announced the closing America,” said Smith. “This investment established not only to generate competitive of an $85 million equity investment in a will help to fulfill future energy needs while returns but also to assist in the investment, portfolio of two wind and nine solar farms creating jobs for skilled workers.” maintenance and refurbishment of the throughout the United States. The wind nation’s infrastructure. Since 2012, it and solar farms are all contracted to sell NOTE: has made good on that promise, with 8 power, capacity and renewable energy to UIF is managed by Ullico Investment investments totaling $500 million. investment-grade offtakers under long- Advisors, Inc. (UIA) and is sold through Ullico term agreements. Investment Company, LLC. (Member FINRA/ “This year, the American Society of Civil SIPC), both subsidiaries of Ullico Inc. UIA is Engineers rated U.S. infrastructure a D+, One of the largest projects in the portfolio, a registered investment adviser with the SEC the same grade it gave in 2013. Clearly, the Springbok 1 and 2 solar farm in Kern under the Investment Advisers Act of 1940, there’s a need for deliberate investment County, California, created 600 direct as amended (“Act”). UIF will only be sold to in infrastructure,” says Edward M. Smith, union construction jobs and created “accredited investors” as that term is defined President and CEO of Ullico Inc. “Ullico significant union construction jobs which in Regulation D of the Securities Act of 1933. Infrastructure Fund (UIF) is doing its part benefited the local community. The Investment in infrastructure is speculative, to invest in core sectors while also creating unemployment rate in Kern County was not suitable for all investors, and should union jobs.” above 10% at the time, nearly double that of be undertaken only by experienced and the statewide rate. Jim Elrod, the business sophisticated investors who are willing to bear manager for the International Brotherhood the high risks of such an investment, which of Electrical Workers (IBEW) Local 428, include, but are not limited to, lack of liquidity, was committed to adding local hires to the restrictions on transferring ownership to pool of electricians dispatched for both the Fund, absence of information regarding projects and achieved an outstanding result. valuation and pricing, and high fees and “Nearly 200 of the 250 IBEW workers on expenses. Potential investors in the Fund the projects were hired locally from Kern should carefully read the Confidential Private County and many of the new hires have Placement Memorandum for a description of since been invited to join our apprentice the potential risks associated with investment program. We believe projects like in the Fund. VOL. 5, ISSUE 3 | WINTER 2017 | 3 Union Labor Life Celebrates Longstanding Clients The Union Labor Life Insurance Company “Union Labor Life” is celebrating 90 years of insuring union members. Many of today’s policyholders have had their coverage with Union Labor Life for decades. Some have been insured for more than 50 years. To recognize and celebrate the long-standing loyalty of these unions and funds, members of the management team of Union Labor Life have been presenting awards to long-term clients. The following are seven of these long-term customers whom we met with earlier in 2017. ATU International BAC International Detroit Bakers 57 YEARS WITH UNION LABOR LIFE 68 YEARS WITH UNION LABOR LIFE 65 YEARS WITH UNION LABOR LIFE Left to Right: Daniel Wolak, President, Union Labor Left to Right: Daniel Wolak, President, Union Left to Right: Bill Kristalyn, Sales Manager, Life; Oscar Owens, Secretary-Treasurer, ATU; Brian Labor Life; Jim Boland, International President, Union Labor Life; Claudia Norman, Benefits Doherty, Regional Sales Manager, Union Labor Life. BAC; Edward Smith, CEO, Ullico Inc. Administrator, BCTGM Local 326. In 1960, the Amalgamated Transit The International Union of Bricklayers Local 326 of the Bakery, Confectionery, Union (ATU) approached Union and Allied Craftworkers (BAC) was Tobacco Workers and Grain Millers’ Labor Life to request a unique type of founded in 1865, and today represents International Union (BCTGM) purchased insurance coverage for its members. The a wide array of skilled trowel trades life and accidental death coverage for their international union’s concern was for the craftworkers across the United States and members through the Union Labor Life in risk of their bus drivers being attacked Canada. Since 1949, the staff of BAC’s 1953. Almost 65 years later, Local 326 still and killed on the job. In response to International Union have depended has this coverage through Union Labor Life. this request, Union Labor Life offered a on life, accidental death, and coverage The BCTGM represents manufacturing, felonious attack accidental death insurance through Union Labor Life. Members production workers, maintenance policy that would pay $100,000 for death of the BAC are bricklayers, terrazzo and sanitation workers in the bakery, resulting from being attacked on the job.