Local 138 Annuity Fund

March 13, 2020

The most lasting impact of the current public health crisis may not be illness but the economy. Local 138 takes the health of your Annuity very seriously. Always have. Always will.

Local 138 has been in sustained and probing communication with its team of financial advisors to ensure that we not only protect the value of the Annuity Fund, but spot opportunities to strengthen it in the months to come.

That is not to say that the rollercoaster formally known as Wall Street hasn’t buffeted our portfolio. One of our experts reported, “The magnitude of the market decline makes it inevitable that any portfolio with meaningful equity exposure will sustain some depreciation. Relative to most plans however, the Trustee Directed Annuity Fund’s equity exposure is quite modest, which will dampen the effects of the current Bear Market. In addition, the Fund has significant exposure to fixed income securities, which have benefited from investors’ “flight to safety” and have gained value as the equity markets declined. Overall, the Fund’s posture is very conservative and was designed to weather turbulent markets.”

The short version is some of our investments will be hurt by the market’s response to the Corona virus, but the majority of the Annuity Fund is shielded from the market’s descent.

No one likes a drop-in asset value but Local 138 has always been conservative in where it puts your money, even at a time when most thought the Bull Market would run forever. We are students of history and know far better than that.

And like those who stayed the course 85 years ago, we too will be looking for extraordinary opportunities on behalf of our members when this roller coaster comes to a stop.