-----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, M7ioA63Xi/tI6+3HpLP8Jw1tZS2mkJMo/xpyaIUxCG/gd6jh/ixBKj4PyX5G0Z5M IboEk8gckcZ8UFxhD4wzvA== 0001169232-07-002656.txt : 20070612 0001169232-07-002656.hdr.sgml : 20070612 20070612171735 ACCESSION NUMBER: 0001169232-07-002656 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070612 DATE AS OF CHANGE: 20070612 EFFECTIVENESS DATE: 20070612 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AFL CIO HOUSING INVESTMENT TRUST CENTRAL INDEX KEY: 0000225030 IRS NUMBER: 526220193 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-59762 FILM NUMBER: 07915699 BUSINESS ADDRESS: STREET 1: 1717 K STREET NW STREET 2: STE 707 CITY: WASHINGTON STATE: DC ZIP: 20036 BUSINESS PHONE: 2023318055 MAIL ADDRESS: STREET 1: 1717 K ST NW SUITE 707 CITY: WASHINGTON STATE: DC ZIP: 20036 0000225030 S000009768 AFL CIO HOUSING INVESTMENT TRUST C000026832 AFL CIO HOUSING INVESTMENT TRUST 497 1 d72155_497.txt DEFINITIVE MATERIALS AFL o CIO AFL-CIO HOUSING INVESTMENT TRUST HOUSING PERFORMANCE INVESTMENT [LOGO] as of May 31, 2007 TRUST - -------------------------------------------------------------------------------- The Trust seeks to provide competitive risk-adjusted returns relative to its benchmark, the Lehman Brothers Aggregate Bond Index by investing in assets that provide premium income, while maintaining a portfolio risk profile comparable to its benchmark. This combination of investment and risk management has enabled the Trust to compile a successful record of performance and to attract additional funds to manage from both new and current participants. The performance data provided represents past performance. Past performance is no guarantee of future results. Economic and market conditions change, and both will cause investment return, principal value and yield to fluctuate so that a Participant's units when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current average annual total returns are available on this website. Investors should consider the HIT's investment objectives, risks and expenses carefully before investing. A Prospectus containing more complete information may be obtained from the HIT by calling the Marketing Department at 202-331-8055, or by viewing the above-referenced link. The prospectus should be viewed carefully before investing. ANNUALIZED RETURNS [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL]
Annual Returns - Periods Ended May 31, 2007 1 Year 3 Year 5 Year 10 Year HIT Net Return 6.54% 4.34% 4.69% 6.33% Lehman Brothers Aggregate Bond Index 6.66% 4.28% 4.72% 6.17%
1) Returns shown reflect the net return of an investment for the specified periods (after the deduction of the Trust's expenses). The HIT does not assess a sales charge (load) on the purchase of Units of participation ("Units") in the Trust, any fee on the sale or redemption of Units, or any other exchange fee or account fee. Participants pay only for the actual administrative expenses of operating the Trust. 2) The Lehman Brothers Aggregate Bond Index is an unmanaged index and is not available for direct investment. Its returns would be lower if they reflected the expenses associated with active management of an actual portfolio. The performance data provided represents past performance. Past performance is no guarantee of future results. Economic and market conditions change, and both will cause investment return, principal value and yield to fluctuate so that a Participant's units when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Investors should consider the HIT's investment objectives, risks and expenses carefully before investing. A Prospectus containing more complete information may be obtained from the HIT by calling the Marketing Department at 202-331-8055, or by viewing the above-referenced link. The prospectus should be viewed carefully before investing. VALUE GROWTH OF $50,000 INVESTED [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL] Lehman Brothers Aggregate Bond Index HIT Net Apr-97 50,000 50,000 Apr-98 55,455 55,800 Apr-99 58,934 59,159 Apr-00 59,676 59,800 Apr-01 67,067 67,470 Apr-02 72,324 73,582 Apr-03 79,893 81,096 Apr-04 81,349 82,389 Apr-05 85,625 86,870 Apr-06 86,231 87,709 Apr-07 92,579 94,127 The chart shows the comparative value growth of $50,000 invested in the Trust (minimum initial investment) and its benchmark (theoretical values) over the course of ten years, assuming the reinvestment of all distributions. NET ASSET GROWTH [THE FOLLOWING TABLE WAS REPRESENTED BY A MOUNTAIN GRAPH IN THE PRINTED MATERIAL] Net Asset Growth - April 31, 1997 to April 31, 2007 HIT Net Asset Value (In Billions) Apr-97 1.42 Apr-98 1.75 Apr-99 2.08 Apr-00 2.20 Apr-01 2.54 Apr-02 2.83 Apr-03 3.40 Apr-04 3.55 Apr-05 3.60 Apr-06 3.47 Apr-07 3.67 o The Trust is a fixed-income fund in which historically the main component of the Trust's performance is interest income on investments. Apart from deducting operating expenses, all Trust income is distributed monthly to Participants. o Average net assets increased by approximately 11.0% for the period April 30, 1997 to April 30, 2007. o Approximately 87% of distributions are automatically reinvested by the Trust's Participants. PORTFOLIO ALLOCATION [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL] HIT Portfolio Allocation * - April 30, 2007 Construction and Permanent Mortgages 1.36% Multifamily Construction Mortgage-Backed Securities 6.59% Multifamily Permanent Mortgage-Backed Securities 50.64% Cash and Cash Equivalents 2.91% US Treasury Securities 1.99% Commercial MBS 4.92% Government Sponsored Enterprise Securities 1.17% Single Family Mortgage-Backed Securities 30.01% State Housing Finance Agency Securities 0.41% ------ 100.00% * Includes funded and unfunded commitments o Multifamily Construction Mortgage-Backed Securities: The Trust invests in fixed-income securities that finance the construction of multifamily properties. These securities generally have credit enhancements from FHA, Ginnie Mae (GNMA), or a letter of credit or repurchase guarantee from an entity rated "A" or better by Standard and Poor's. These securities generally fund over 12-24 months and upon completion of construction, a permanent security is issued. These securities typically generate yields above U.S. Treasury investments with comparable average lives and generally have significant prepayment protections. o Multifamily Permanent Mortgage-Backed Securities: The Trust invests in securities that are either backed by permanent loans for multifamily properties or by loans for existing single family homes. These FHA, GNMA, Fannie Mae, or Freddie Mac credit enhanced investments typically generate yield spreads above U.S. Treasury investments with comparable average lives. Additionally, multifamily mortgage-backed securities generally have significant prepayment protections. o State Housing Finance Agency Securities: The Trust invests in securities that are guaranteed or insured by a state or local housing finance agency ("A" rated or better or top tier by Standard and Poor's) and are backed by both construction and permanent loans for multifamily properties. o Single Family Mortgage-Backed Securities: The Trust invests in securities that pool individual mortgages from single family homes. The interest and principal cash flows are passed through to the investor of the MBS net of any servicing fees. These Fannie Mae, GNMA, or Freddie Mac credit enhanced investments typically generate yield spreads above U.S. Treasury bonds. There is no prepayment protection on these securities meaning payments could be more than the scheduled amount. o Construction and Permanent Mortgages: The Trust invests in loans used to finance the purchase, refinance or construction of a property. -----END PRIVACY-ENHANCED MESSAGE-----