-----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, LC55XRT+jo0OWX2jR4PJvO04R8z7G2XWxcF7IxytE1PxGPtp6izeB3GerwLJqqQy wpk8tzPoL3zlhxt1WzkjiA== 0001169232-09-001401.txt : 20090310 0001169232-09-001401.hdr.sgml : 20090310 20090310163631 ACCESSION NUMBER: 0001169232-09-001401 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20090310 DATE AS OF CHANGE: 20090310 EFFECTIVENESS DATE: 20090310 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: 09669926 BUSINESS ADDRESS: STREET 1: 2401 PENNSYLVANIA AVENUE, NW STREET 2: SUITE 200 CITY: WASHINGTON STATE: DC ZIP: 20037 BUSINESS PHONE: 2023318055 MAIL ADDRESS: STREET 1: 2401 PENNSYLVANIA AVENUE, NW STREET 2: SUITE 200 CITY: WASHINGTON STATE: DC ZIP: 20037 0000225030 S000009768 AFL CIO HOUSING INVESTMENT TRUST C000026832 AFL CIO HOUSING INVESTMENT TRUST 497 1 d76408_497.txt 497 ANNUALIZED RETURNS [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.] For Periods Ending February 28, 2009 1 Year 3 Year 5 Year 10 Year HIT Net 5.44% 5.62% 4.43% 5.96% Barclays Capital 2.06% 4.95% 4.00% 5.61% 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. Returns shown reflect the net return of an investment for the specified periods (after the deduction of the HIT's expenses). The HIT is internally managed and participants pay only for the actual administrative expenses of operating the HIT. The Barclays Capital Aggregate Bond Index reflects no deductions for expenses and is not available for direct investment. 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 reviewed carefully before investing. VALUE GROWTH OF $50,000 INVESTED [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.] For Periods Ending February 28, 2009 Barclays Capital HIT net Feb-99 50,000 50,000 Feb-00 50,553 50,413 Feb-01 57,349 57,650 Feb-02 61,746 62,318 Feb-03 67,866 68,806 Feb-04 70,948 71,815 Feb-05 72,674 73,390 Feb-06 74,665 75,686 Feb-07 78,803 79,956 Feb-08 84,559 84,588 Feb-09 86,301 89,189 This chart shows the competitive 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. 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. NET ASSET GROWTH [THE FOLLOWING TABLE WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.] For Periods Ending February 28, 1999 - February 28, 2009 HIT Net Asset Value (In Billions) ------------------- Feb-99 2.03 Feb-00 2.16 Feb-01 2.55 Feb-02 2.79 Feb-03 3.38 Feb-04 3.66 Feb-05 3.66 Feb-06 3.55 Feb-07 3.72 Feb-08 3.70 Feb-09 3.43 o The graph above depicts the growth of Trust assets. Asset growth of the Trust has several components, including portfolio performance (primarily interest income on investments less the expenses of the Trust), capital gains and losses, and inflows of new capital less redemptions. o Average net assets increased by approximately 6.7% annually for the period February 28, 1999 to February 28, 2009. o The Trust's income less operating expenses is distributed monthly to Participants. Participants choose to automatically reinvest approximately 89% of distributions. 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. PORTFOLIO ALLOCATION [THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.] HIT Portfolio Allocation * - February 28, 2009 Construction and Permanent Mortgages 0.65% Multifamily Construction Mortgage-Backed Securities 1.89% Multifamily Permanent Mortgage-Backed Securities 54.63% Commercial MBS 1.93% Government Sponsored Enterprise Securities 0.79% Single Family Mortgage-Backed Securities 32.54% State Housing Finance Agency Securities 1.59% US Treasury Securities 3.27% Cash and Cash Equivalents 2.71% ------ 100.00% * Includes funded and unfunded commitments o Chart based on value of total investments and includes 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-----