THE WATCHDOGS: Rauner appointees shake up pension fund, oust union-owned manager
Source: Chicago Sun Times
WRITTEN BY CHRIS FUSCO AND MICK DUMKE
Minutes after supporters of Gov. Bruce Rauner assumed leadership of one of the biggest government pension funds in Illinois, they shook up the way hundreds of millions of dollars are invested in the process ousting a union-run money manager.
The Republican governors appointees to the Illinois State Board of Investment voted to shift $697 million into investments designed to mimic the financial markets performance a move the boards new chairman says will benefit taxpayers by slashing multimillion-dollar money-management fees.
In line with Rauners anti-organized labor stance, one of the managers the board dumped was Ullico, a union-owned investment firm that lends money to construction projects that agree to hire union labor.
The boards vote to pull its $65.4 million investment in Ullicos J for Jobs fund was along political lines. The four Rauner appointees and two Republicans who are on the board because of other offices they hold voted to dump Ullico. Two Democratic elected officials and a union leader voted no.
FULL story at link.
Read more: http://chicago.suntimes.com/news/7/71/986757/rauners-anti-union-battle-colors-state-pension-fund-shift
dixiegrrrrl
(60,010 posts)anyone in that fund should get their money out immediately if they can.
PosterChild
(1,307 posts)..... a bad idea. For instance , you can buy a S&P 500 Index fund and it will pretty much track the S&P 500. Since this is easy to do, the fund has lower management fees. Its also a broad based strategy that averages risk without attempting to pick winners and losers. Funds that try to beat the market generally don't in the long term, so why pay someone to try?
Chasstev365
(5,191 posts)I tried to warn so many of my colleagues about this mini Koch, but they didn't listen.
AKing
(511 posts)on him that governing a state is not like owning your own business and being able to do whatever the hell you want.
And very well said!
murielm99
(30,745 posts)His approval rating is in the toilet. He did not win by a large margin to begin with. We have the majority in Springfield.
The initiative will have to come from somewhere, and be very disciplined.
I would like to see him in jail, not just recalled.
ananda
(28,866 posts)Going the way of Kansas and Wisconsin .. inch by inch ..
as planned.
juxtaposed
(2,778 posts)secondvariety
(1,245 posts)zentrum
(9,865 posts)
..shouldn't fight this as really dangerous but I must say that the construction unions in urban areas have consistently fought the community they are building in because the community often disputes the construction. Often the new construction will so gentrify and hurt long existing neighborhoods that locals are ruined. The behavior of unions in the 2000's on this issue has been a huge shock to me and I've seen it in person. And my dad was a union organizer.
Also a lot of the construction is funded and owned by foreign investors who don't give a damn about the community they are building in.
Income disparity and the plight of the middle class has made one section of workers pit themselves against another part.
polynomial
(750 posts)Will benefit taxpayers; slashing multimillion-dollar money-management fees. Or is that stashing and packing money else-where for contract non-union education schools.
Does that mean giving million into investments designed to mimic the financial markets performance to corporations that are too big to fail then bail them out for poor performance after thousands would likely get an at will layoff.
This fits in the debate about that so called right to work idea floating around that is questionable in this free system.
It is sensible for the union dues members to loan the money out the way they wish, especially to other union members, or have a so called right to loan law, for their dues money is not Rauners money.
Moreover closely relates to the idea of Eminent Domain which is part of the economic symmetry for the individual that has an out dated definition that is abused or unchallenged, being a principle element in the economic gap.