This is in a pool of actively and 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, and some other objectionable products and services.
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.