Hastings Income Trust
Profile
Overview
The Hastings Income Trust (HIT) provides an investment vehicle for retail investors to access the Hastings Yield Fund, a wholesale entity. The Hastings Yield Fund (HYF) provides exposure to investments in high yield securities such as loans and hybrid equities. These loans and hybrid equities investments are predominantly derived from infrastructure privatisation and general industrial assets, representing Hastings' expertise in these types of assets.
The latest Unit Price for HIT can be obtained from the HIT Investor Centre.
Assets
Portfolio update - Hastings Yield Fund (HYF)
The year ended 30 June 2007 saw strong investment activity for HYF with a number of high yield securities added to the portfolio, together with a number of repayments.
High yield securities added to the portfolio comprised investments in:
- a toggle facility arranged to part fund the acquisition of BAA, one of the world's leading international airport operators;
- a senior debt facility to part fund the acquisition of Eircom, the incumbent telecommunications operator and owner in Ireland;
- a junior term facility to part fund the acquisition of AB Ports, the largest port operator in the United Kingdom (UK);
- a senior term facility and ASX listed subordinated notes to part fund the acquisition of BIS Cleanaway, a waste management and industrial services provider;
- a subordinated term facility to part fund the acquisition of DCA Group, a leading provider of diagnostic imaging and aged care based in Australia and New Zealand;
- a junior term facility arranged to part fund the acquisition of Thames Water, the largest water and wastewater company in the UK; and
- a replacement senior term facility to refinance the BIS industrial services business following the sale of the Cleanaway business.
Further investments in high yield securities comprised:
- hybrid securities to part fund Macquarie Airport's additional investments in Sydney and Brussels Airports; and
- the Mid Kent Water convertible note.
High yield securities removed from the portfolio comprised:
- the senior floating rate loan to Delhi Petroleum was repaid in full;
- the Sydney Airport hybrid securities were redeemed;
- the junior term facility to Arqiva was repaid;
- the Amcor hybrid securities were the subject of a repurchase offer; and
- the senior term facility to BIS Cleanaway was repaid in full following the sale of the Cleanaway business.
| Investment | Type of security | ASX Listed | Total Committed | Portfolio Weighting |
| AB Ports | Junior Term Facility | Unlisted | 25.0 | 5.3 |
| Australand | Subordinated Step up Exchangeable Trust Securities | Listed | 8.4 | 1.8 |
| BAA | Toggle Facility | Unlisted | 44.2 | 9.3 |
| Babcock & Brown | Subordinated Prime Adjusting | Unlisted (1) | 33.8 | 7.1 |
| BIS | Senior Term Facility | Unlisted | 33.1 | 7.0 |
| DCA Group | Subordinated Term Facility | Unlisted | 30.6 | 6.5 |
| Eircom | Senior Term Facilities | Unlisted | 14.5 | 3.0 |
| Hyne Timber | High Yield Non-cumulative Exchangeable Securities | Unlisted | 21.2 | 4.5 |
| Inexus | Junior Term Facility | Unlisted | 38.2 | 8.0 |
| Macquarie Airports | Tradeable Interest-bearing Convertible to Equity Trust Securities | Listed | 25.9 | 5.4 |
| Manildra Group | Reset Secured Note | Unlisted | 20.2 | 4.2 |
| Mid Kent Water | Convertible Floating Rate Note | Unlisted | 35.9 | 7.6 |
| Perth Airport | Convertible Floating Rate Note | Unlisted | 35.8 | 7.5 |
| Santos | Franked Unsecured Equity Listed Securities | Listed | 7.2 | 1.5 |
| Thames Water | Junior Term Facility | Unlisted | 48.1 | 10.1 |
| Toll Holdings | Reset Preference Share | Listed | 38.9 | 8.2 |
| Wesbeam | Mezzanine Floating Rate Note | Unlisted | 14.2 | 3.0 |
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|
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| 475.2 | 100.0 |
(1) Listed on the New Zealand Stock Exchange.
