This year, as Ullico Inc. celebrates the 90th anniversary since its founding, it also marks the 40th anniversary of Separate Account J (J for Jobs), the investment vehicle that finances commercial real estate properties on a national basis.
When it began in 1977, J for Jobs was the first of its kind. With many of their members out of work during the 1970s recession, unions sought innovative ways to grow their funds and stimulate job creation. Out of this need, J for Jobs was born as a real estate investment vehicle that originates and manages high-quality commercial first mortgages. At the same time it seeks to deliver attractive and competitive fixed-income performance to institutional investors, J for Jobs promotes union members, union leaders, and signatory employers by requiring that the construction projects it finances use 100 percent union labor.
Discussions with local tradesmen in New York City provided the impetus for J for Jobs, and those same union leaders became the first investors. Since then, many unions have come on board, and J for Jobs has made a significant historical and economic impact.
"We've been successful for so long by remaining steadfast to our original mission, which is to serve the needs of investors, organized labor and customers in the real estate development community," said Herb Kolben, Senior Vice President of Union Labor Life's Real Estate Investment Group, which provides lending and loan servicing for commercial real estate projects.
After 40 years, J for Jobs continues to evolve. Recently, Ullico began offering a fund that allows individual union members to invest in the J for Jobs program.
Launched earlier this year, the Ullico J for Jobs Collective Investment Fund (CIF) was created by the Hand Composite Employee Benefit Trust and sponsored by Hand Benefits & Trust Company. With the addition of CIF, Ullico now offers solutions to unions with defined benefits and defined contributions plans.
"This combination of innovation and stability, invention and focus, continues to drive J for Jobs as it looks forward to the next 40 years," said Edward M. Smith, President and CEO of Ullico.
Note: Separate Account J is offered through a group annuity contract issued by The Union Labor Life Insurance Company (Union Labor Life) and is sold through Ullico Investment Company, Inc. (Member FINRA/SIPC), both subsidiaries of Ullico Inc. The Account will only be offered to qualified institutional and accredited investors. Investment in illiquid real estate and commercial mortgage loans is subject to additional risks including the potential inability of an investor to redeem units. The investment return and principal value of the Fund will fluctuate so that an investor's units, when redeemed, may be worth more or less than original cost. In addition, fluctuations in interest rates and market volatility may limit available financing for real estate investments held by the Fund, thereby adversely affecting the value of the underlying investments, the investment return and the liquidity of the investments. Furthermore, the loan values determined by Union Labor Life could vary significantly from the prices at which the investments would sell because market prices can only be determined by negotiation between a willing buyer and seller. The ability of borrowers to repay loans issued by the Fund will typically depend upon the successful construction or operation of the related real estate project and the availability of financing. The repayment of loans issued for the construction of multifamily housing (i.e. condominium loans) will generally depend on the borrower's ability to sell the underlying housing units. There is no guarantee that Union Labor Life will attain its investment objectives. Potential investors in the Fund should carefully read the Fund Disclosure Memorandum for a description of the potential risks associated with investment in the Fund.
The CIF is not a mutual fund. Its shares are not deposits of Hand Benefits & Trust Company, a BPAS company, or Ullico Investment Advisors, and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIF is a security which has not been registered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Act of 1940. The Ullico J for Jobs Collective Investment Fund is new and does not have actual performance data to report. Diversification may not protect against market risk. There are risks involved with investing, including possible loss of principal. Before investing in any investment portfolio, the client and the financial professional should carefully consider client investment objectives, time horizon, risk tolerance, and fees. This collective investment fund is available for investment by eligible qualified retirement plan trusts only.