The AFL-CIO Housing Investment Trust (HIT) is an internally managed, fixed income mutual fund benchmarked to the Bloomberg Barclays U.S. Aggregate Bond Index (Barclays Aggregate). The HIT seeks to earn competitive returns for pension and other institutional investors while pursuing its mission to finance housing construction and rehabilitation and generate family-supporting union construction jobs. The HIT stands out among fixed-income investments because of its specialization and overweight in high credit quality multifamily mortgage-backed securities (MBS).
The HIT has two operating subsidiaries. The HIT formed HIT Advisers LLC in 2016 as an investment adviser to manage a new pooled fund and separate account mandates consistent with the HIT's overall mission. HIT Advisers is the only equity holding in the HIT's portfolio, and constitutes less than 0.01% of the HIT's net assets. Its business strategy is in development and it currently has no clients. HIT Advisers owns 100% of Building America Community Development Entity (BACDE), a community development entity that is a second tier subsidiary of the HIT. BACDE is authorized by the U.S. Treasury Department to allocate New Markets Tax Credits to projects and businesses in low-income communities and supporting low-income persons. To date, BACDE has been awarded $185 million in credits which it has allocated to projects with total development costs of $966.5 million, thereby leveraging additional resources for the HIT’s mission and social responsibility impacts.