Investment Information

Investment Objective & Strategy

The Stable Value Premixed Portfolio (SVPP) seeks safety of
principal and consistency of returns with minimal volatility.
This does not mean that it will never experience a negative
rate of return, but the investment option is managed with the
intent of reducing this possibility. No government agency
either directly or indirectly insures or guarantees the
performance of the investment option.
The investment option invests in diversified portfolios
of actively managed fixed income securities (i.e. bonds). The
investment option also enters into asset-backed investment
contracts with various financial institutions. The issuer of the
investment contract undertakes to provide a minimum
guaranteed rate of return and payment of participant-driven
transactions at contract value. Unit price, yield and return
will vary.
Fees and Expenses as of 06-30-14
Management Fee 0.40%
Plan Admin Fee 0.00%
All Others 0.04%
Total Fee as a % 0.44%
Total Fee per $1000 Investment $4.40
Management Company
Babson Capital Management LLC
BlackRock Financial Management Inc
Galliard Capital Management Inc.
Jennison Associates LLC
Loomis Sayles & Company L.P.
Pacific Investment Management Co LLC
Volatility and Risk
Volatility as of 06-30-14
Low Moderate High
Investment
Category
In the past, this investment has shown a relatively small
range of price fluctuations relative to other investments.
Based on this measure, currently more than two-thirds of all
investments have shown higher levels of risk. Consequently,
this investment may appeal to investors looking for a
conservative investment strategy.
Performance
5
10
15
20
0
-5
-10
-15
Total Return%
as of 06-30-14
Investment
Benchmark 1
Benchmark 2
Average annual, if greater
than 1 year
YTD 3 Month 1 Year 3 Year 5 Year 10 Year
1.15 0.57 2.46 3.14 3.45 4.30 Investment Return %
0.80 0.40 1.70 2.10 2.50 3.50 Benchmark 1 Return %
0.02 0.01 0.04 0.06 0.08 1.52 Benchmark 2 Return %
Data above represents past performance and does not guarantee future results. Investment returns and principal values
will fluctuate so that participants' units may be worth more or less than their original cost when redeemed. Current
performance may be lower or higher than data stated herein. Performance is shown after all expenses. Benchmark 1
represents is a universe of Stable Value funds with similar investment objectives and strategies. Benchmark 2 is a broad
benchmark with similar investment objectives but employs a different strategy.
Portfolio Analysis
Composition as of 06-30-14 % Assets
Synthetic GICs 80.2
Traditional GICs 0.0
Cash 8.4
Other 11.4
...........................................................................................................
Annual Turnover Ratio % 415
Financial Strength Ratings as of 06-30-14
Moody's S&P
American General Life Ins. Co. A2 A+
Massachusetts Mutual Life Ins. Co. Aa2 AA+
Metropolitan Life Ins. Co. Aa3 AA-
Monumental Life Ins. Co. A1 AA-
Pacific Life Ins. Co. A1 A+
Prudential Ins. Co. of America A1 AA-
What do Stable Value Funds Invest in?
Stable value funds are invested in high quality, diversified
fixed income portfolios (i.e. bonds) that are protected against
interest rate volatility by contracts issued by banks and
insurance companies. Stable value funds are designed to
preserve capital while providing steady returns and are
considered a conservative and low risk investment.
The market value of bonds is volatile by nature and moves
inversely with interest rate changes. As interest rates move
up, the market value of bonds declines, and vice-versa. This
volatility is not unusual. Unlike other investments options,
however, stable value protects against interest rate swings
via insurance company and bank contracts. The contracts are
designed to allow participants to transact at book value
(principal plus accrued interest less expenses) without
reference to the market value fluctuations of the underlying
bond portfolios. The risks associated with these contracts
(as outlined in the Principal Risks section) may result in a
loss in value to the Plan participant.
SVPP invests in synthetic GICs and in a commingled fund.
In the synthetic GIC arrangement, the Plans own the
underlying fixed income securities that support the insurance
and bank contracts. The diversified portfolios are managed
by investment managers solely for the Plan. Diversification
is achieved by using several investment managers with
different investment styles. Contract protection is diversified
by contracting with multiple insurance companies and banks.
The commingled fund, which pools together assets from
many plans, is used by SVPP as a liquidity vehicle.
Release Date: 06-30-2014
Stable Value Strategy
....................................................................................................................................................................................................................................................................................................................................................
Benchmark 1 Benchmark 2 Total Assets ($mil) Inception Date
Hueler Stable Value Pooled Fund
Index
USTREAS Stat US T-Bill 90 Day
TR
1,187.81 04-01-99
2014 Morningstar, Inc., Morningstar Investment Profiles 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither
Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee
of future performance. Visit our investment website at www.morningstar.com.
Page 1 of 2
The Halliburton Savings Plan (Plan) is intended to be
participant-directed plan as described in Section 404(c) of
the Employee Retirement Income Security Act of 1974, as
amended (ERISA). Therefore the fiduciaries of this plan are
generally relieved of liability for any losses that are the
result of any investment instructions given by a participant or
a beneficiary of the Plan.
The allocation directed to each underlying investment
manager under each investment option has been selected by
the Halliburton Company Investment Committee in
consultation with, Mercer Investment Consulting, Inc., the
investment advisor to the Plan. The individual investment
options will be reviewed periodically and the Investment
Committee will modify the allocations and/or underlying
investment managers when deemed appropriate.
An investment's principal value and investment return will
fluctuate, therefore the investor's unit values may be worth
more or less than at the time of the original investment. In
accordance with ERISA, the Plan assets are held in trust for
the exclusive benefit of participants and beneficiaries. As
with all 401(k) plans, assets are not FDIC-insured, may lose
value and are not guaranteed by a bank, the Plan sponsor or
other financial institution.
Reliable sources are utilized to produce these reports but
there is no warranty or guarantee that this data is accurate,
timely, or complete. Historic performance is not an indication
of future results and should not be relied upon to predict
future investment returns.
Contact Information
For current information, please visit
www.halliburton.com/totalrewards (if you are a current
employee) or www.netbenefits.com (if you are a former
employee). You may also call the Halliburton Benefits Center
at 1-866-321-0964 (international toll free, use your country's
AT&T access code, then 866-321-0964) or for toll call
857-362-5980, select option 2.
Principal Risk Benchmarks
The asset-backed contracts are backed solely by the financial
resources of the issuers of such asset backed contracts and
by a portfolio of securities. An investment in the Stable
Value Strategy is not insured or guaranteed by the
manager(s), the plan sponsor, the trustee, the FDIC, or any
other government agency. The asset-backed contracts
entered into by the Stable Value Strategy enables the fund to
utilize book value (principal plus interest accrued to date)
accounting. Through the use of book value accounting, there
is no immediate recognition of investment gains and losses.
Instead, gains and losses are recognized over time by
periodically adjusting the interest rate credited to the Stable
Value Strategy under the contracts. However, while the
Stable Value Strategy seeks to preserve your principal
investment, it is possible to lose money by investing in this
investment option. The asset-backed contracts provide for
the payment of certain withdrawals and exchanges at book
value during the term of the asset-backed contracts. In order
for the asset-backed contract issuers to pay such
withdrawals and exchanges at book value, the contract
terms subject the fund and its participants to certain
restrictions. For example, withdrawals prompted by certain
events (e.g., layoffs, early retirement windows, spin-offs,
sale of a division, facility closings, plan terminations, partial
plan terminations, changes in laws or regulations) may be
paid at the market value of the Stable Value Strategy's
securities, which may be less than your book value balance.
Benchmarks
Benchmark 1 - official benchmark: Hueler Pooled Fund
Universe Average
Benchmark 2 - single recognizable benchmark: 90-Day U.S.
T-Bill
Performance
Investment performance is determined after fees are charged
to the investment option and assumes reinvestment of
dividends and capital gains. Investment option's performance
is compared with the benchmark index. The index is an
unmanaged portfolio of specified securities and the indices
do not reflect any initial or ongoing expenses. The
investment option's portfolio may differ significantly from the
securities in the indices.
Additional Fee Disclosure
The expense ratio is an asset-weighted blend of fees and
will fluctuate based on asset values and market conditions;
any fees quoted herein are subject to change. Transaction
costs incurred by the investment option for buying and
selling securities are not included in the expense ratio. These
costs, along with management fees, plan administration fees
and other fees are paid out of the investment option's assets,
reducing the rate of return realized by participants. There are
no entry or exit fees charged to participants who invest in
this investment option. Cumulative effect of fees and
expenses can substantially reduce the growth of a
participant's retirement account. Participants are encouraged
to visit the Employee Benefits Security Administration
website at www.dol.gov/ebsa for information and example
demonstrating the long-term effect of fees and expenses.
Fees and expenses are only one of several factors that
participants and beneficiaries should consider when making
investment decisions.
Collective Trusts and Separate Accounts
Most of the Plan's investment options are structured using
institutionally managed separate accounts or common and
collective trusts; this means the accounts are managed only
for participants in the Halliburton Plans. Individual securities
are bought and sold by professional investment managers
selected by the Investment Committee. Common and
Collective Trusts are investment vehicles operated by banks
or trust companies. Neither common and collective trust
funds nor separate accounts are mutual funds. Unlike mutual
funds, separate accounts and collective trust funds are not
subject to and are not registered under the Securities Act of
1933 or the Investment Company Act of 1940.
Disclosure
2014 Morningstar, Inc., Morningstar Investment Profiles 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or
its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at
www.morningstar.com.
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