Distributions

Distribution guidance for 2011

Distribution guidance for the 2011 calendar year is 10.0 cents per security.

Distribution history for 2010

The following table details the distributions paid to investors during the year ended 31 December 2010. To assist investors in their understanding of distributions and in completing their tax returns, an Annual Tax Guide and Annual Distribution Statement is sent to investors, and information on determining your cost base is provided below.

Annual Distribution Statement
1 January 2010 to 31 December 2010

Determining your cost base

What is the cost base of Securities in HDF?

Hastings Diversified Utilities Fund (HDF) investors hold stapled securities (Security) that each consist of a unit in HDUF Finance Trust, a unit in HDUF Further Investments Trust and a unit in HDUF Epic Trust (each a separate Trust). The units are 'stapled' to one another in the sense that so long as the stapling remains in effect, they can only be transferred together and are quoted by the ASX as a single quotation.

The following cost base information may be relevant to investors who are residents of Australia for tax purposes and hold their units in the Securities on capital account. 

When is it important to apportion my cost base?

For capital gains tax (CGT) purposes a unit in each Trust is a separate CGT asset, with its own separate tax cost base or reduced tax cost base. 

As HDF has paid tax deferred distributions and may from time to time make returns of capital, the CGT outcome for some investors on the disposal of their Securities or on receipt of tax deferred distributions or returns of capital may differ depending on whether the investor determines the cost base or reduced tax cost base of the respective unit components separately or uses the total cost base or reduced cost base in determining the relevant capital gain or loss. 

For example, where you receive tax-deferred distributions or a return of capital from a Trust, they reduce the cost base of the units in that Trust only.  If over time the accumulated tax deferred distributions and returns of capital from a Trust exceed the original cost base of the units in the relevant Trust, a capital gain would arise. To calculate whether you have made a capital gain on your units in a Trust as a result of receiving tax-deferred distributions or returns of capital from a Trust which exceed the original CGT cost base of the units in the Trust, you will need to calculate the tax cost base that relates specifically to your units in the relevant Trust. 

All investors should maintain records of their cost base with regard to their personal circumstances.

How do I calculate my cost base?

You calculate the tax cost base of a unit by apportioning the overall cost base of the Security on a 'reasonable' basis between the units in each Trust.  Investors will need to make their own decision regarding the 'reasonable' basis they will apply in their own particular circumstances.  However, using the net asset value (NAV) of the units at the time you acquired your Securities is generally accepted as reasonable.

The NAV value split between the Trusts is shown below at reporting dates and may assist you in this process. The splits are based on audited NAV valuations.

This summary does not take into account your particular needs, investment objectives or individual circumstances. If you are unsure of appropriate treatment, we recommend that you seek your own independent taxation advice for clarification according to your individual circumstances. Where investors hold their investment on a basis other than capital account e.g. revenue treatment or as trading stock, or are not residents of Australia, they should seek their own independent tax advice.

Allocation of cost base to 30 June 2011 for HDF Stapled Entities