The HIT-DVF portfolio consists primarily of investment in the AFL-CIO Housing Investment Trust (HIT), with a smaller portion invested in a Barclays Aggregate index fund^ to facilitate daily liquidity required by many defined contribution plans.
HIT-DVF Composition (Initial Target)
The HIT-DVF is expected to perform competitively with the investment grade bond market benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index (Barclays Aggregate).
Diversification and Credit Quality
The HIT-DVF provides participants in qualified defined contribution plans with many of the benefits of investing in the HIT, including diversification and credit quality.
As a blend of the HIT and a bond index fund, the HIT-DVF has exposure to a higher percentage of high credit quality multifamily securities and a lower percentage of corporate debt than the Barclays Aggregate Bond Index.
HIT-DVF Sector Exposure as of 9/30/19
HIT-DVF Credit Exposure as of 9/30/19
^ Blackrock U.S. Debt Index Fund M Class which has a composition similar to the Barclays Aggregate.