Enhancement of AFL-CIO HIT Portfolio Management: US Treasury Futures Contracts
● | There is no change to the HIT’s portfolio strategy, which is to manage duration within the range of plus or minus one-half year of the effective duration of the Bloomberg Barclays U.S. Aggregate Bond Index, its benchmark. The HIT has added disclosures about Treasury futures contracts in its registration statement. |
● | The HIT portfolio’s exposure to U.S. Treasury futures contracts will be limited to 5% of the notional value of its assets. |
● | U.S. Treasury futures contracts are one of the most widely used financial instruments and are universally recognized as highly standardized, liquid and transparent. |
● | Use of U.S. Treasury futures contracts will help the HIT more efficiently invest in construction-related impact investments and optimize portfolio allocation while maintaining its desired level of portfolio duration. |
● | The HIT expects to begin purchasing U.S. Treasury futures contracts in the first quarter of 2022. |
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.