Local 138 Annuity Fund

April, 4th 2022

Addressing the Volatile Investment Market Environment of Today and its Effect on the Local 138, 138A, 138B & 138C, I.U.O.E. Annuity Fund

Understanding the volatility of the current investment market is a matter that the Trustees of the Local 138 Annuity Fund take very seriously.  The Trustees have the responsibility of monitoring the Fund’s investment performance and meet regularly with their professionals to ensure that the Fund is operating efficiently, with the goal of maintaining a positive return on investment while safeguarding the Fund from the risks associated with investing for the purpose of short-term gains.


The Fund maintains a well-diversified investment portfolio.  The Trustee Directed Annuity Fund is a diversified collection of traditional assets such as stocks and bonds and other fixed income investments. A more conservative portfolio will suffer milder declines during volatile markets while generating more modest returns, whereas a more aggressive portfolio has greater potential for returns but will have a greater possibility of decline during those turbulent markets.  The Fund’s investments focus on preserving the assets that are held in trust for the membership with an effort of maintaining steady, long term growth for years to come.  The purpose of this Fund is to maintain retirement income for all vested participants.


When markets become unstable as they are now, investors tend to flee stocks and seek safer, more stable investments. During periods like this, the Fund may perform better than its peers because of its use of those safer assets.  Also, since the Fund is predominantly invested in U.S. securities (stocks), it has very limited direct exposure to nations and companies affected by geopolitical events like the current Russian invasion of Ukraine.


Over time, the Trustee Directed Annuity Fund has enjoyed relatively stable returns. Its conservative and diversified asset mix has protected it well from volatile markets and the Trustees are confident that it will do so during these turbulent times as well