Hastings Yield Fund
Profile
The Hastings Yield Fund (HYF) is an unlisted fund established by Hastings in March 1999 to provide wholesale investors with access to high yield securities.
An investment in HYF provides unitholders with exposure to high yield securities in the form of loans and hybrid equities. Loans comprise senior, subordinated and mezzanine loans. High yield securities offer running yields superior to other forms of fixed-interest investment and the potential for capital gains.
HYF is provided with access to a wide range of quality investment opportunities through its manager, Hastings. Hastings brings to HYF the experience of operating since 1994 as a specialist manager of alternative assets.
Objectives
- To assemble an investment portfolio of high yield securities to provide unitholders with a regular source of income returns;
- To take underwriting or sub-underwriting positions, given an acceptable level of risk, to generate fee income and enhance returns to unitholders;
- To hold investments for the medium to long term; and
- To generate a return of 3.00% per annum (before fees and expenses) above the UBS Australian Bank Bill Index
Key Investment Features
Feature | Description |
| Investment | Hastings Yield Fund |
| Responsible Entity | Hastings Funds Management Limited ABN 27 058 693 388 |
| Entry Fees | Nil |
| Exit Fees | Nil |
| Base Fee | 0.40% per annum of the Net Asset Value |
| Performance Fee | 10% of return in excess of a return of 3.00% per annum (after fees and expenses) above the UBS Australian Bank Bill Index |
| Management Expense Ratio (MER) | The estimated MER is 0.44% per annum excluding any performance fee |
| Distributions | Semi-annually in respect of periods ending on 30 June and 31 December. Distributions are expected to be made within four weeks after the end of each semi-annual period. |
| Distribution Reinvestment | Hastings may offer unitholders the opportunity to reinvest distributions. |
| Unit Pricing | The Net Asset Value per Unit will be issued monthly and may fluctuate over time reflecting the value of the HYF's investments. |
| Redemption Mechanism | Hastings as Responsible Entity of the HYF is obliged to make a pro rata withdrawal offer to unitholders from the proceeds available from the sale or redemption of an asset of the HYF, subject to satisfaction of conditions contained in the Constitution. Please refer to the HYF Exit Options and Redemption Policy for further information. |
| Transferability of Units | There is currently no market in which Units may be traded. However, unitholders may transfer Units, subject to the procedures set out in the Constitution. |
| Reporting | Publication of a quarterly and annual report. In addition, the website at www.hfm.com.au provides up-to-date information about Hastings and the HYF. |
| Minimum Initial Investment | $2,500,000 |
| Minimum Additional Investment | $500,000 |
Portfolio diversity, 30 JUNE 2008
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