Price & Performance

TAPS Trust financial report 2009

HDF holds the ordinary securities in the TAPS Trust and the financial report for the year ended 31 December 2009 is prepared on this basis.

TAPS Trust reported a net loss attributable to ordinary unitholders (i.e. Hastings Diversified Utilities Fund, HDF) of $5.0 million. This net loss is explained by understanding the accounting treatment of the cash flows of TAPS Trust. In particular:

• TAPS Trust receives the majority of its cash flows from South East Water via a return of capital. A return of capital is reflected in the statements of cash flows rather than the statements of comprehensive income, hence the lack of accounting earnings.

• The distributions paid to TAPS holders are treated as an expense under Australian International Financial Reporting Standards (AIFRS), therefore increasing the net loss attributable to ordinary unitholders.

• It is this structure that results in the majority of distributions to TAPS holders being tax deferred.

Security price and distribution history is available in the TAPS Trust Investor Centre.