This is in a pool of mostly passively managed mutual funds selected by HBF’s
Investment Committee. The investments are diversified among multiple equity asset
classes. They do not include investments in companies known to be involved with
alcoholic beverages, tobacco, gambling, and some other objectionable products and
The total 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 7.5% over the past ten
years and 15% over the past five years ending in 2014.