December 31, 2013
By Mike Stotz, President & Managing Director AFL-CIO Investment Trust Corporation (ITC)
As the holidays and the New Year approach, it is important to take a step back and look at the accomplishments of the AFL-CIO Building Investment Trust (BIT) over the last twelve months as well as the opportunities for the next year. The BIT is a bank collective trust for which PNC Bank is trustee. The BIT continues to provide competitive returns.
And across America, thousands of workers are employed at BIT-funded projects. These workers are not only construction workers, but the men and women who service and maintain BIT properties and who are also employed at the hotels, restaurants, grocery stores and other businesses at these properties.
Many real estate funds buy existing buildings. The BIT has a portion of its current portfolio in new construction. In fact, right now hundreds of workers are working on BIT projects, with $1.1 billion in ongoing construction projects. Active construction is scheduled to begin on several additional projects in early 2014.
Yet, despite the fact that the fund had a record year in 2013 in terms of total investments—the BIT has great potential to grow. For those union trustees not currently investing in the BIT, please urgently set up a meeting with your consultants to allow us to offer a presentation showcasing all the benefits of the fund.
Additional investment in 2014 will provide the opportunity for the BIT to grow, continue to build, and continue to be a vehicle of responsible investment for the labor movement.