AFL-CIO Housing Investment Trust

01/08/2024 | Press release | Distributed by Public on 01/08/2024 15:08

Prospectus by Investment Company - Form 497

HIT AT A GLANCE

A $6.6 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 40-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 June 30, 2024, periods over one year are annualized

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 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 June 30, 2024

RISK COMPARISON

As of June 30, 2024

HIT Bloomberg^
Credit Profile
U.S. Government/Agency/AAA/Cash 89.81% 73.85%
A & Below/Not Rated 5.15% 23.74%
Yield
Current Yield 4.05% 3.68%
Yield to Worst 5.65% 5.00%
Interest Rate Risk
Effective Duration 5.97 6.02
Convexity 0.20 0.27
Call Risk
Call Protected 72% 74%
Not Call Protected 28% 26%

Source: HIT and Bloomberg US Aggregate Bond Index

continued

Chart based on value of total investments and includes unfunded commitments but does not include U.S. treasury futures contracts.

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.

^ Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material or guarantee the accuracy or completeness of any information herein, nor does Bloomberg make any warranty, express or implied, as to the results to be obtained therefrom, and, to the maximum extent allowed by law, Bloomberg shall not have any liability or responsibility for injury or damages arising in connection therewith.

PROJECT PROFILE:

400 LAKE SHORE

(Chicago, IL)

• $543.3 million new construction project

•The 72-story project will provide 635 units of housing (20% affordable)

• HIT investment of $55.0 million

• Creating an estimated 3,316,100 hours of union construction work (1,648 jobs)*

PROJECT PROFILE:

PARK PLAZA / OLSON COURT

(Minneapolis, MN)

• $74.7 million new construction and substantial rehabilitation project

•Three six-story buildings will provide 134 rehabilitated units of housing and a new five-story building will provide 119 units of housing (100% affordable)

• HIT investment of $49.0 million

• Creating an estimated 419,940 hours of union construction work (209 jobs)*


NATIONWIDE ECONOMIC IMPACT OF INVESTMENTS*(1984-present)

607

$47.6B

$20.2B

207.6M

237,200

129,003

$6.3B

Projects in total economic
benefits

in personal income
including wages and
benefits, with
$10.4 billion for
construction workers

hours of on-site
union construction
work created
total jobs generated
across communities

housing and healthcare
units nationwide,
with 67% affordable
housing

in tax revenues
($2.0 billion state/
local and
$4.3 billion federal)

*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 June 30, 2024. Economic impact data is in 2023 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 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