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Issue: JANUARY - FEBRUARY 2003
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The Trowel Trades S&P 500 Index Fund:
A Timely Response to Today’s Headlines

During 2002, corporate practices opposed by BAC and its Trowel Trades S&P 500 Index Fund finally made the headlines. Following Enron, the public learned first hand the damage caused by business practices that benefit corporate executives at the expense of company shareholders and employees.

The only silver lining in the recent storm of business scandals that have shocked the general public and devastated the investment community is that institutional investors like the Trowel Trades S&P 500 Index Fund now have an unprecedented opportunity to reform Corporate America. BAC pension funds that participate in the BAC Proxy Voting Service and/or invest in the Trowel Trades S&P 500 Index Fund are using their investment clout to push for greater corporate accountability to make sure that BAC pension funds do not fall victim to these questionable corporate practices.

The shareholder proposals the Index Fund has filed for 2003 reflect today’s headlines: companies that reincorporate overseas to avoid paying taxes; corporations who pay their “independent” accounting firms higher fees for other services than audit work, causing the auditor to look the other way in reviewing the companies finances; boards of directors that shift voting rights away from shareholders by adopting “poison pills.” The Index Fund and the BAC Proxy Voting Service also use the opportunity to educate companies on why it is in the best interest of shareholders to use union contractors and members on construction projects.

The Trowel Trades S&P 500
The Trowel Trades S&P 500 Index is an investment vehicle designed for BAC pension and annuity funds. The Index Fund offers BAC funds a competitive investment vehicle, with significantly lower fees than other comparable investment options, as well as a means to increase BAC’s clout in corporate America. Unlike other index funds, the Trowel Trades Index Fund uses its shareholder power and shareholder votes to further the interests of BAC members.

BAC Proxy Voting Service
The BAC Proxy Voting Service helps to ensure that members’ pension contributions are invested in companies that work in their interests, not against them. It also educates corporations on the benefits to their bottom-line of using BAC signatory contractors and members on their construction projects.

The International Pension Fund and an increasing number of Local funds are already taking advantage of both of these programs by allocating a portion of their plan assets to the Index Fund and signing up for the Proxy Voting Service.

For more information on the BAC Proxy Voting Service or the Trowel Trade S&P 500 Index Fund, please contact BAC Secretary-Treasurer James Boland.