Through various union-based and at-arms-length strategies (including payroll deduction plans), several funds have been particularly successful in meeting this objective. 40 percent of the shareholders of the Fonds de solidarité, for instance, are blue collar workers.
Labour-sponsored fund tend to emphasize capital appreciation for shareholders as an overriding aim by which other social and economic goals are made possible. CLMPC research concludes that fund rates of returns must be considered in the context of venture capital investing which is long-term and high risk in nature. All funds hire venture and finance professionals to ensure good investment returns.
Many labour-sponsored funds give priority to high performance enterprise techniques and strategies that include employee participation and ownership. A key element for some, such as the Fonds de solidarité, is the delivery of financial and economic training to workers. CLMPC research has found that such training and other innovative workplace programs are productivity-enhancing.
The practice of some funds to also encourage share ownership among employees in investee firms is sometimes an important tool in large-scale restructuring and rescue operations in mature industries. Several new funds will follow the lead of the Fonds de solidarité in acting as a friendly equity partner in partial or full worker buyouts linked to protecting existing employment.
Labour-sponsored funds also support the objective of increased co-operation between business and labour. Most funds welcome the input and involvement of the business and financial representatives on boards of directors and advisory committees. Some actively promote dialogue and joint action between employers and employees in diverse contexts.
While this CLMPC paper concentrates on a first-time identification of the common institutional features shared by labour-sponsored investment funds — providing data about mandates and investment standards, illustrations of related programs and activity, and documented evidence of performance — the research also suggests specific matters that merit further research.
Above all, it is concluded that as the targets of significant public treasury dollars, labour- sponsored funds should be subject to close observation and assessment based on the ten salient qualities outlined in the preceding.