This is in a pool of some actively managed accounts and some actively and some
passively managed mutual funds selected by HBF’s Investment Committee, with advice
from its financial consultant at Morgan Stanley. The investments are diversified
among most equity asset classes. They do not include investments in companies known
to be involved with alcoholic beverages, tobacco, gambling, or pornography.
The return (income and price change) on investments in common stock are usually
more volatile (they fluctuate up and down more) than investments in fixed income
securities, such as bonds. However, over the long term, investments in common stocks
usually result in higher returns than in fixed income securities.
Though past returns are no guarantee of future returns, the average annual returns
of the investment vehicles in this pool were approximately 7.7% over the past ten
years and 20% over the past five years ending in 2013.