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. 

 

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
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)*  

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)*

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.

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