497 1 ahit-497_123121.htm HITMWW1221

 

 

 

 

HIT AT A GLANCE

 

•A $7.1 billion investment grade fixed-income fund.

 

•Internally managed mutual fund registered under the Investment Company Act of 1940.

 

•Expertise in the highest credit quality multifamily mortgage backed securities (MBS).

 

•Proven 35+-year history of competitive returns for pension funds and labor organizations, such as health and welfare funds, while also generating vital union construction jobs, and supporting housing (including affordable and workforce housing), and healthcare facilities.

 

•100% union labor requirement for all on-site construction.

 

•Successful history as an impact investor (see back page).

 

RELATIVE RETURNS 

As of December 31, 2021, periods over one year are annualized

 

 

The AAA Index represents the AAA Component of the Bloomberg Barclays U.S. Aggregate Bond Index.

 

BENEFITS OF THE HIT

 

•Core fixed-income option with a strong performance record.

 

•Higher income, superior credit profile, and similar levels of interest rate risk compared to the Benchmark.

 

•Directly sources multifamily construction-related investments that have higher yields than other investments of similar duration and credit quality.

 

•Ongoing yield advantage strengthens its performance relative to the Benchmark.

 

•High credit quality multifamily MBS differentiate the HIT from many other core fixed-income vehicles.

 

•The HIT’s concentration in multifamily MBS and exclusion of corporate bonds, could offer potential portfolio diversification from other asset classes.

STRATEGY: OVERWEIGHT MULTIFAMILY MBS

 

•Construct and manage a portfolio with higher credit quality, higher yield, and similar interest rate risk relative to the Bloomberg Barclays US Aggregate Bond Index (Benchmark).

 

•Invest in high credit quality multifamily MBS that can provide an income advantage for the HIT and contribute to its performance relative to its Benchmark.

 

SECTOR ALLOCATION

As of December 31, 2021

 

 

RISK COMPARISON

As of December 31, 2021

 

  HIT Barclays    
Credit Profile        
U.S. Government/Agency/AAA/Cash 91.28%   71.69%  
A & Below/Not Rated 4.24%   25.05%  
Yield        
Current Yield 2.47%   2.34%  
Yield to Worst 1.94%   1.72%  
Interest Rate Risk        
Effective Duration 6.02   6.41  
Convexity 0.18   0.18  
Call Risk        
Call Protected 81%   73%  
Not Call Protected 19%   27%  

 

Source: HIT and Bloomberg Barclays US Aggregate Bond Index

 



continued

 

 

The calculations of the HIT yield herein represent widely accepted portfolio characteristics information based on coupon rate, current price and, for yield to worst, certain prepayment assumptions, and are not current yield or other performance data as defined by the SEC in Rule 482. 

 

 

(GRAPHIC) 

   (GRAPHIC) (GRAPHIC)  (GRAPHIC)   (GRAPHIC) (GRAPHIC)   
  55 $1.6B $42.0M $2.7B 8,477  
  Number of HIT Investment Building America Total Development Housing Units Created  
  Projects Amount NMTC Allocation Cost or Preserved  
  (GRAPHIC)  (GRAPHIC)   (GRAPHIC)  (GRAPHIC) (GRAPHIC)   
  4,814 20.1M 27,381 $610.6M $4.7B  
  Low-and Moderate-Income Hours of Construction Total Jobs State, Local and Federal Total Economic  
  Housing Units (57%) Work Generated Created Tax Revenue Generated Impact  
             

 

PROJECT PROFILE:

HEARTLAND VIEW APARTMENTS

(Wentzville, MO)

 

•$37.4 million new construction project

 

•  Seven building three-story garden-style apartment complex will create 201 units of housing

 

•  HIT investment of $32.0 million

 

•  Creating an estimated 354,360 hours of union construction work (178 jobs)*

 (GRAPHIC) 

PROJECT PROFILE:

AMBER UNION

(Falcon Heights, MN)

 

•$55.6 million substantial rehabilitation project

 

•  Adaptive reuse development involves the conversion of a historic office building that will create 125 units of housing

 

•  HIT investment of $18.3 million

 

•  Creating an estimated 371,940 hours of union construction work (186 jobs)*

 (GRAPHIC)

NATIONWIDE ECONOMIC IMPACT OF INVESTMENTS* (1984-present)

 

566 $36.5B $15.0B 189.9M 212,060 123,339 $4.7B
Projects in total economic in personal income hours of on-site total jobs generated housing and healthcare in tax revenues
  benefits including wages and union construction across communities units nationwide, ($1.5 billion state/
    benefits, with work created   with 67% affordable local and
    $7.6 billion for     housing $3.2 billion federal)
    construction workers        

 

*Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT and HIT subsidiary Building America CDE, Inc. project data. Data is current as of December 31, 2021. Economic impact data is in 2020 dollars and all other figures are nominal.

 

 

The performance data quoted represents past performance and is no guarantee of future results. Investment results and principal value will fluctuate so that units in the HIT, when redeemed, may be worth more or less than the original cost. The HIT’s current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available from the HIT’s website at www.aflcio-hit.com. Gross performance figures do not reflect the deduction of HIT expenses. Net performance figures reflect the deduction of HIT expenses and are the performance figures investors experience in the HIT. Information about HIT expenses can be found on page 1 of the HIT’s current prospectus.

 

Investors should consider the HIT’s investment objectives, risks and expenses carefully before investing. Investors may view the HIT’s current prospectus, which contains more complete information, on its website at www.aflcio-hit.com and may obtain a copy from the HIT by calling the Marketing and Investor Relations Department collect at 202-331-8055. Investors should read the current prospectus carefully before investing.

 

(GRAPHIC)  1227 25th Street, NW | Suite 500 | Washington, DC 20037 | 202.331.8055 |  www.aflcio-hit.com (GRAPHIC)