-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ck66HYvsTV7bALlB25Zwp3fY6Z2H0PIx+rHtIwKrHNoWY9NE5grfIjWiK4a+qvrz b72Lzg3I4FPYkFgCzeK0Nw== 0001026777-02-000003.txt : 20020413 0001026777-02-000003.hdr.sgml : 20020413 ACCESSION NUMBER: 0001026777-02-000003 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20020118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AFL CIO HOUSING INVESTMENT TRUST CENTRAL INDEX KEY: 0000225030 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 526220193 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-59762 FILM NUMBER: 2511964 BUSINESS ADDRESS: STREET 1: 1717 K STREET NW STREET 2: STE 707 CITY: WASHINGTON STATE: DC ZIP: 20006 BUSINESS PHONE: 2023318055 MAIL ADDRESS: STREET 1: 1717 K ST NW SUITE 707 CITY: WASHINGTON STATE: DC ZIP: 20006 497 1 aflcio.txt WEBSITE INFORMATION UPDATE FOR 12/31/01 [THE FOLLOWING IS MATERIAL CONTAINED ON THE WEBSITE OF THE AFL-CIO HOUSING INVESTMENT TRUST] Legal Disclaimer REGARDING THIS AFL-CIO HOUSING INVESTMENT TRUST WEBSITE Your use of this AFL-CIO Housing Investment Trust ("Trust") website is subject to the conditions and qualifications described below. By using this AFL-CIO Housing Investment Trust website, you agree to accept such conditions and qualifications. Any information herein is intended to be general in nature and for current interest. While helpful, this information is no substitute for professional tax, financial or legal advice. Investors should seek such professional advice for their particular situation. Neither the Trust nor any of its affiliates or representatives is providing tax, financial or legal advice. NO WARRANTIES; LIMITATION OF LIABILITY. The information, charts, documents and other materials herein (collectively, the "Website") IS SUBJECT TO CHANGE WITHOUT NOTICE. The information on this site is provided "AS IS". The Trust expressly disclaims any obligation to keep the Website up to date or free of errors or viruses, or to maintain uninterrupted access to this Website. The Trust does not warrant the accuracy of the information or materials provided herein, either expressly or impliedly. The Trust will not be responsible for any loss or damage that could result from interception by third parties of any information made available to you via this site. Although the information provided to you on this site is obtained or compiled from sources we believe to be reliable, the Trust cannot and does not guarantee the accuracy, validity, timeliness or completeness of any information or data made available to you for any particular purpose. Neither the Trust, nor any of its affiliates, directors, officers or employees, trustees or participants, nor any third party vendor will be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or interruption of this site, or resulting from the act or omission of any other party involved in making this site or the information or data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the site or these materials, whether or not the circumstances giving rise to such cause may have been within the control of the Trust or of any vendor providing software or services support. THE TRUST IS NOT RESPONSIBLE FOR ERRORS OR OMISSIONS IN THE WEBSITE OR IN ANY WEBSITE LINKED (BY HYPERTEXT LINKS) TO THIRD PARTY WEBSITES. THE TRUST MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER FOR THE WEBSITE OR THIRD PARTY WEBSITES OR FOR ANY PRODUCTS OR SERVICES MENTIONED OR OFFERED IN THE WEBSITE OR IN THIRD PARTY WEBSITES. THE TRUST DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES RELATED TO THE USE OF THIS WEBSITE INCLUDING, WITHOUT LIMITATION, MERCHANTABILITY, SUITABILITY, NONINFRINGEMENT, OR FITNESS FOR ANY PARTICULAR PURPOSE. THE TRUST SHALL NOT BE LIABLE FOR ANY ERRORS CONTAINED HEREIN OR FOR ANY DAMAGES WHATSOEVER ARISING OUT OF OR RELATED TO THE USE OF THIS WEBSITE, INCLUDING, WITHOUT LIMITATION, DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER UNDER A CONTRACT, TORT OR ANY OTHER THEORY OF LIABILITY, EVEN IF THE TRUST IS AWARE OF THE POSSIBILITY OF SUCH ERRORS OR DAMAGES. NO OFFER OR SOLICITATION REGARDING INVESTMENT IN THE TRUST. This Website includes general information on the Trust's performance. Past performance does not mean that the Trust will achieve similar results in the future. This Website does not constitute a solicitation to invest in the Trust. Units in the Trust are offered by prospectus only. The Prospectus contains more complete information about the Trust and units in the Trust, and should be read carefully before investing or sending money. For more information on investing in the Trust or to request a prospectus, please contact the Director of Marketing and Investor Relations. The information provided on this site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or where such distribution or use would subject the Trust or its affiliates to any registration requirement within such jurisdiction or country. Neither the information, nor any opinion contained in this site constitutes a solicitation or offer by the Trust or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. RESERVATION OF RIGHTS. This Website (including, without limitation, the graphics, icons, and overall appearance of the Trust's Website and the information contained therein) is the property of the Trust. The Trust does not waive any of its proprietary rights herein including, but not limited to, copyrights, trademarks and other intellectual property rights. No user of this Website may resell, republish, print, download or copy any portion of this Website for commercial use without the prior written consent of the Trust, except that reasonable copying or printing of information in the Website for individual, non-commercial use is permissible where permitted by law. The availability of any information through this Website shall under no circumstance constitute a transfer of any copyrights, trademarks or other intellectual property rights of the Trust to any Website user or any third party. This Website is protected by U.S. and international copyright laws, both as individual works and as a compilation. You may not delete any copyright or similar notice from any part of this Website. USE IN CONFORMITY WITH LAW. Your use of this website constitutes your agreement to comply with all applicable federal, state and local laws and regulations governing such use. Copyright 2000 AFL-CIO Housing Investment Trust All rights reserved [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH PERFORMANCE The Trust seeks to provide risk-adjusted superior returns to its benchmark, the Lehman Aggregate Bond Index. The strategy for achieving superior risk- adjusted performance is to invest in assets that provide premium income, with risk comparable to our benchmark. The successful combination of investment and risk management has enabled the Trust to provide the performance investors expect, thereby attracting additional funds to manage from both new and current Participants. The performance data shown on this website represents past performance and does not mean that the Trust will achieve similar results in the future. The investment return and principal value of an investment in the Trust will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. A Prospectus containing more complete information may be obtained from the Trust by contacting the Director of Marketing and Investor Relations. The Prospectus sets forth information about the Trust that an investor should read carefully before investing. [Bracketed items below identify icons indicating links to various charts and graphs] [Net Asset Growth] [Value Growth of $50,000 Invested] [Annualized Returns] [Credit Quality] [Annual Returns] [Portfolio Characteristics] [Download a PDF file of the Performance Information] [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH PERFORMANCE Net Asset Growth - December 31, 1991 to December 31, 2001 Period $ in Millions - ------ ------------- Dec-91 528.7 Mar-92 566.8 Jun-92 603.2 Sep-92 646.4 Dec-92 661.9 Mar-93 725.8 Jun-93 758.3 Sep-83 795.3 Dec-93 845.8 Mar-94 877.0 Jun-94 885.3 Sep-94 908.3 Dec-94 935.3 Mar-95 992.1 Jun-95 1081.4 Sep-95 1122.3 Dec-95 1166.9 Mar-96 1195.0 Jun-96 1262.5 Sep-96 1327.0 Dec-96 1383.2 Mar-97 1396.6 Jun-97 1477.4 Sep-97 1574.0 Dec-97 1671.7 Mar-98 1737.1 Jun-98 1847.3 Sep-98 1960.7 Dec-98 2023.0 Mar-99 2074.0 Jun-99 2098.0 Sep-99 2135.0 Dec-99 2149.3 Mar-00 2204.9 Jun-00 2259.4 Sep-00 2362.0 Dec-00 2477.5 Mar-01 2548.7 Jun-01 2577.1 Sep-01 2962.0 Dec-01 2751.5 - Net asset growth for the period December 31, 1991 to December 31, 2001 is approximately 20% on an annual basis. As a fixed income fund, the main component of the Trust's performance is interest income on investments, all of which is distributed monthly to Participants. - Approximately 90% of monthly distributions are automatically reinvested in the form of purchasing additional units. [Back to Performance] [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH PERFORMANCE Average Annual Returns - Periods ended December 31, 1991 to December 31, 2001 HIT Lehman Aggregate HIT (1) Gross (2) Bond Index 1 Year 8.21% 8.60% 8.44% 3 Year 6.51% 6.92% 6.28% 5 Year 7.70% 8.12% 7.43% 10 Year 7.47% 7.96% 7.23% (1) Returns shown reflect the growth of an investment for the specified periods. (2) HIT Gross returns are calculated before the deduction of the Trust's expenses. - The ratio of total expenses to average net assets for the year ending December 31, 2001 was 37 basis points (0.37%). NET ASSETS VS. EXPENSE RATIO Year Ended Net Assets Ratio of Expenses December 31 End of Period to Average Net Assets 1995 1,166,893,471 0.51% 1996 1,383,163,166 0.46% 1997 1,671,744,859 0.43% 1998 2,023,371,045 0.39% 1999 2,149,326,689 0.39% 2000 2,477,481,753 0.38% 2001 2,751,481,839 0.37% - The Trust is a no-load investment - Participants pay only for the actual administrative expenses of operating the Trust [Back to Performance] [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH PERFORMANCE Annual Returns - One Year Moving Average Lehman Aggregate HIT Bond Index Net ---------- ----- Dec-96 7.34% 8.60% Jan-97 6.20% 7.54% Feb-97 5.63% 6.88% Mar-97 5.14% 6.37% Apr-97 5.01% 6.21% May-97 5.34% 6.49% Jun-97 5.60% 6.78% Jul-97 6.03% 7.22% Aug-97 6.52% 7.72% Sep-97 6.93% 8.14% Oct-97 7.18% 8.44% Nov-97 7.30% 8.61% Dec-97 7.80% 9.08% Jan-98 8.43% 9.65% Feb-98 8.84% 10.10% Mar-98 9.43% 10.63% Apr-98 9.75% 10.92% May-98 9.97% 11.10% Jun-98 9.70% 11.16% Jul-98 9.93% 10.89% Aug-98 9.97% 10.74% Sep-98 10.12% 10.62% Oct-98 10.16% 10.47% Nov-98 10.32% 10.43% Dec-98 10.24% 10.26% Jan-99 10.02% 9.99% Feb-99 9.68% 9.54% Mar-99 9.22% 9.01% Apr-99 8.83% 8.55% May-99 8.29% 7.94% Jun-99 7.67% 7.33% Jul-99 7.22% 6.74% Aug-99 6.41% 5.95% Sep-99 5.42% 5.23% Oct-99 4.68% 4.61% Nov-99 3.89% 3.90% Dec-99 3.10% 3.13% Jan-00 2.27% 2.29% Feb-00 1.84% 1.86% Mar-00 1.46% 1.44% Apr-00 1.04% 1.03% May-00 0.85% 0.83% Jun-00 0.97% 0.94% Jul-00 1.26% 1.38% Aug-00 1.82% 2.08% Sep-00 2.44% 2.68% Oct-00 3.00% 3.33% Nov-00 3.76% 4.16% Dec-00 4.80% 5.23% Jan-01 6.10% 6.63% Feb-01 7.13% 7.75% Mar-01 8.02% 8.75% Apr-01 8.95% 9.73% May-01 9.86% 10.72% Jun-01 10.42% 11.28% Jul-01 10.98% 11.82% Aug-01 11.38% 12.10% Sep-01 11.88% 12.47% Oct-01 12.48% 12.88% Nov-01 12.66% 12.92% Dec-01 12.39% 12.57% - - Returns shown reflect the growth of an investment for the specified periods. - - Moving averages smooth the lines in order to highlight the trend rather than the exact value at a specific point. Each point on this chart represents the average of the previous twelve months annual returns. FUND PERFORMANCE AND STRATEGY HIGHLIGHTS - In 2001, the Trust had a return of 8.21% (8.60% before the deduction of the Trust expenses), while the Trust's benchmark, the Lehman Aggregate Bond Index had a return of 8.44%. - The Trust invests in high quality fixed income investments such as: Agency MBS, US Treasuries, and US Agency Notes. The Trust's commingled fixed income fund emphasizes high quality mortgage securities that produce high current income and generate competitive, risk-adjusted, total returns. The Trust specializes in Agency-Insured Multifamily MBS, which have significant call protection. These investments provided investors a shield from high prepayments during a volatile interest rate environment in 2001. The Trust's residential MBS performed well in 2001 and benefitted from the steepening yield curve. - As one of the largest institutional investors in Agency-Insured Multifamily MBS, the Trust continues to create jobs by investing in securities that finance new construction, or rehabilitation of housing- related projects throughout the country. Beside the significant collateral benefits of such a security structure, these securities carry an Agency guarantee, provide generous yields relative to US Treasuries, and possess excellent total return profiles. - Risk management plays a significant role in managing institutional pension fund capital prudently. Risk factors such as: credit, interest rate, prepayment, and event risk, are constantly monitored, modeled, and managed to ensure investors earn the greatest total returns while minimizing investment risk. [Back to Performance] [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH PERFORMANCE Value Growth of $50,000 Invested Lehman Aggregate HIT Average Annual Total Return Period Bond Index Net for the periods ended - ------ ---------- ----- December 31, 2001 ($ in Thousands) One Year 8.21% Dec-91 50.00 50.00 Five Year 7.70% Dec-92 53.70 52.88 Ten Year 7.47% Dec-93 58.94 57.99 Dec-94 57.22 56.43 Dec-95 67.79 67.47 Dec-96 70.25 70.93 Dec-97 77.03 78.54 Dec-98 83.72 85.05 Dec-99 83.03 84.56 Dec-00 92.69 94.97 Dec-01 100.51 102.76 The chart shows the comparative value growth of $50,000 invested (minimum initial investment) in the Trust and its benchmark (theoretical values) over the course of ten years, assuming the reinvestment of all distributions. [Back to Performance] PERFORMANCE [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH Credit Quality - The Trust invests primarily in securities guaranteed or insured by the federal government or government sponsored enterprises. - At December 31, 2001 the portfolio was 96.9% guaranteed or insured by the U.S. Treasury, Federal Housing Administration, Ginnie Mae, Fannie Mae, Freddie Mac and Federal Home Loan Bank, 1.7% State Housing Agency Securities guaranteed or insured by state or local enterprises, and 1.4% of short term investments. [Back to Performance] PERFORMANCE PORTFOLIO HOLDINGS - December 31, 2001 Multi-Family Construction Mortgage Backed Securities 23.6% Cash and Short Term Investments 1.4% Single Family Mortgaged Backed Securities 33.6% Federal Agency Securities and US Treasury Debt Securities 6.5% Multi-Family Mortgage Backed Securities 35.2% State Housing Agency Securities 1.7% - Construction and Permanent Loan Securities: Nearly all construction loans are convertible at maturity into permanent mortgages. This category is comprised of FHA and Ginnie Mae credits. FHA mortgages are guaranteed up to 99% of principal and interest, and pay a correspondingly higher coupon than other agency credits which guarantee 100% of principal and interest. - Mortgage-Backed Securities include both multi-family permanent mortgages with prepayment protection, and single-family mortgage pools. This category is comprised of Ginnie Mae, Fannie Mae or Freddie Mac credits which guarantee the timely payment of all principal and interest. - Local Initiatives are guaranteed or insured by a state or local public enterprise, and are underwritten with a maximum loan-to-value of 65%. [Back to Performance] INVESTMENT PRODUCTS [LOGO OF AFL-CIO HOUSING INVESTMENT TRUST] COMPANY NEWS PERFORMANCE INVESTMENT PRODUCTS UNION LABOR PROJECTS COMPANY PROFILE CONTACT US SEARCH Portfolio Allocation - December 31, 2001 Fannie Mae 32.6% Freddie Mac 12.9% HFA 2.0% FHA 17.7% Ginnie Mae 31.5% Federal Home Loan Bank 0.9% US Treasury Notes 2.4% [Back to Investment Products] -----END PRIVACY-ENHANCED MESSAGE-----