Portfolio Composition

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)

Performance

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).

The HIT's performance can be found here. The HIT-DVF fact sheet can be found here.  The HIT-DVF participation agreement can be found here.

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.