Investment Information

Investment Objective & Strategy

The Moderate Premixed Portfolio (MPP) seeks long-term
growth and reasonable current income. The investment
option aims for a competitive investment return, while
minimizing risk by diversifying its investment among different
types of assets, market capitalizations and countries. Further
diversification is achieved by using several investment
managers with different investment styles. The investment
option has been designated the qualified default investment
alternative for the Plan.
The investment option invests in: US equities and
non-US equities listed on the stock exchanges of developed
and emerging markets and broad market and high yield
bonds. Non-US stocks and bonds may have different risk and
return characteristics than US securities and may be used for
diversification purposes. Unit price, yield and return will vary.
Note: Voting rights - Voting rights for securities held in the
investment option are not passed on to you.
Fees and Expenses as of 12-31-12
Management Fee 0.41%
Plan Admin Fee 0.00%
All Others 0.04%
Total Fee as a % 0.45%
Total Fee per $1000 Investment $4.50
Management Company
Aberdeen Asset Management Inc.
Agincourt Capital Management, LLC
Boston Company Asset Management, LLC
Fayez Sarofim & Co (US)
GAMCO Investors, Inc
Integrity Asset Management, LLC
Jennison Associates LLC
Loomis Sayles & Company L.P.
Metropolitan West Asset Management, LLC.
Northern Cross, LLC
Pacific Investment Management Co LLC
Pyramis Global Advisors Trust Co.
Sands Capital Management, LLC
State Street Global Advisors
T. Rowe Price Associates, Inc.
Wellington Management Co LLP.
Volatility and Risk
Volatility as of 12-31-12
Low Moderate High
Investment
Category
In the past, this investment has shown a relatively moderate
range of price fluctuations relative to other investments. This
investment may experience larger or smaller price declines
or price increases depending on market conditions. Some of
this risk may be offset by owning other investments with
different portfolio makeups or investment strategies.
Performance
10
20
30
40
0
-10
-20
-30
Total Return%
as of 12-31-12
Investment
Benchmark
Average annual, if greater
than 1 year
YTD 3 Month 1 Year 3 Year 5 Year 10 Year
15.42 2.08 15.42 9.76 4.22 6.50 Fund Return %
12.54 1.41 12.54 8.54 3.30 7.84 Benchmark 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.
Portfolio Analysis
Composition as of 12-31-12 % Assets
U.S. Stocks 41.6
Non-U.S. Stocks 19.8
Bonds 31.3
Cash 5.3
Other 2.0
Morningstar World Regions as of 12-31-12 % Fund
Americas 77.00
...........................................................................................................
North America 74.87
Latin America 2.13
Greater Europe 16.15
...........................................................................................................
United Kingdom 4.05
Europe Developed 10.97
Europe Emerging 0.85
Africa/Middle East 0.28
Greater Asia 6.85
...........................................................................................................
Japan 2.17
Australasia 1.18
Asia Developed 1.43
Asia Emerging 2.07
Morningstar Equity Style Box
L
a
r
g
e
M
i
d
S
m
a
l
l
Value Blend Growth
as of 12-31-12 % Market Cap
Giant 41.88
..........................................................
Large 33.32
Medium 14.99
Small 7.43
..........................................................
Micro 2.38
Morningstar Fixed Income Style Box as of 12-31-12
H
i
g
h
M
e
d
L
o
w
Ltd Mod Ext
Avg Eff Duration 4.60
Avg Eff Maturity 6.40
Avg Credit Quality BB
Top 10 Holdings as of 12-31-12 % Assets
Apple Inc 1.46
Ginnie Mae Single Family TBA 3% 2042-02-01 02-01-42 1.03
US Treasury Note 2.625% 08-15-20 0.94
Google, Inc. Class A 0.85
Amazon.com Inc 0.84
.............................................................................................
FHLMC 3.5% 07-01-42 0.81
Visa, Inc. 0.70
US Treasury Note 2% 11-15-21 0.68
Qualcomm, Inc. 0.64
Salesforce.com, Inc. 0.61
...........................................................................................................
Total Number of Stock Holdings 1686
Total Number of Bond Holdings 10821
Annual Turnover Ratio % 364
Morningstar Equity Sectors as of 12-31-12 % Fund
" Cyclical 39.99
...........................................................................................................
Basic Materials 5.84
Consumer Cyclical 14.91
Financial Services 17.02
Real Estate 2.22
v Sensitive 38.96
...........................................................................................................
@ Communication Services 2.08
@ Energy 9.67
@ Industrials 13.62
@ Technology 13.59
~ Defensive 21.06
...........................................................................................................
@ Consumer Defensive 9.39
Healthcare 10.54
@ Utilities 1.13
Morningstar F-I Sectors as of 12-31-12 % Fund % Category
Government 20.83 21.94
@ Corporate 33.28 33.79
Securitized 29.43 19.01
@ Municipal 2.20 1.14
Cash & Equivalents 14.26 22.44
@ Other 0.00 1.69
Release Date: 12-31-2012
Moderate Premixed Portfolio
....................................................................................................................................................................................................................................................................................................................................................
Benchmark Morningstar Category Total Assets ($mil) Inception Date
Custom Benchmark Moderate Allocation 1,094.81 04-01-99
2013 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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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, so that an 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 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, including month-end performance,
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
The Moderate Premixed Portfolio invests in both growth and
value stocks of all market capitalizations. Growth stocks can
be more volatile. Value stocks can continue to be
undervalued by the market for long periods of time.
Securities of smaller, lesser-known companies can be more
volatile than those of larger companies. Stock markets are
volatile and can decline significantly in response to adverse
issuer, political, regulatory, market, economic or other
developments. These risks may be magnified in foreign
markets. In addition, foreign securities are subject to
currency-exchange-rate risks. Bonds are subject to interest
rate risk; as interest rates rise, bond prices usually fall, and
vice versa. This effect is usually more pronounced for
longer-term securities. Bonds also carry inflation, credit and
default risk for both issuers and counterparties. Unlike
individual bonds, most bond funds do not have a maturity
date, so holding bonds until maturity to avoid losses caused
by price volatility is not possible.
Blended Benchmark
43% Russell 3000 Index/19% MSCI All Country World ex
U.S. Index/38% Barclays Capital U.S. Aggregate Index
Performance
Investment performance is determined after fees are charged
to the investment option and assumes reinvestment of
dividends and capital gains. Investment option performance
is compared with the blended benchmark iIndex. Indices are
unmanaged portfolios 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 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; 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. Collective Trusts are investment
vehicles operated by banks or trust companies. Neither
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.
Morningstar Style Box
The Morningstar Style Box reveals a investment option's
investment strategy as of the date noted on this report. For
equity securities the vertical axis shows the market
capitalization of the stocks owned and the horizontal axis
shows the investment style (value, blend, or growth).
For fixed-income securities, the vertical axis shows the credit
quality of the bonds owned and the horizontal axis shows
interest rate sensitivity as measured by a bond's effective
duration. Morningstar's process for classifying a fund's bond
portfolio credit quality differs from the process that has been
used in prior years. Previously, the investment option's bond
portfolio credit quality was based on the weighted average
credit quality of the underlying bonds in the portfolio as
determined by Moody's. Morningstar uses a methodology
that attempts to capture the probability of a credit
downgrade in the portfolio. This method assigns a greater
weighting to lower quality bonds because lower quality
bonds are more likely to be downgraded. This method results
in the investment option having a lower quality score than
the actual weighted average credit quality of the portfolio.
The investment option's active managers take the risk of a
downgrade into account in determining which bonds to hold.
Morningstar's rating is expected to fluctuate with market
conditions over time.
Disclosure
2013 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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