Utilities Trust of Australia
Profile
Overview
Utilities Trust of Australia (UTA) is an unlisted unit trust seeking to consistently provide investors with benchmark-plus returns by taking influential minority positions in infrastructure projects and public private partnerships both in Australia and internationally. UTA is an open-ended trust currently owned mainly by a number of Australian superannuation funds.
UTA's objective is to provide investors with a total return, after fees and inclusive of tax credits, exceeding the benchmark return of the 10 Year Australian Bond Rate plus 4 percent.
Strategy
UTA's investment strategy is to:
- focus on unlisted infrastructure assets with monopoly characteristics both in Australia and internationally;
- take influential minority positions with Board representation or similar levels of influence;
- seek assets with characteristics that provide consistency in returns;
- diversify the portfolio across sectors within the infrastructure asset class;
- achieve diversification across risk and stage of maturity within the infrastructure asset sectors;
- where only limited opportunities are available in the Australian market, seek to diversify the portfolio internationally (currently up to a maximum of 60 percent of the portfolio) where opportunities provide the risk/return outcomes sought by UTA;
- actively manage the investment portfolio; and
- identify and execute suitable exit strategies for investments, in line with the portfolio strategy.
Assets
Airports
| UTA interest in Perth Airport: | 47.5 percent |
| Return since inception to UTA (p.a.) | 18.0 percent |
| UTA interest in APAC: | 6.2 percent |
| Return since inception to UTA (p.a.) | 27.2 percent |
| HOCHTIEF AirPort Capital (HTAC) (Athens, Greece; Dusseldorf and Hamburg, Germany; Sydney, Australia) | |
| UTA indirect interest in Athens Airport: | 1.3 percent |
| UTA indirect interest in Dusseldorf Airport: | 1.0 percent |
| UTA indirect interest in Hamburg Airport: | 1.4 percent |
| UTA indirect interest in Sydney Airport: | 0.5 percent |
| HOCHTIEF return since inception to UTA (p.a.) | 12.7 percent |
Tollroads
| UTA interest in Interlink Roads: | 19.2 percent |
| Return since inception to UTA (p.a.) | 22.7 percent |
| UTA interest in Statewide Roads: | 10.3 percent |
| Return since inception to UTA (p.a.) | 12.5 percent |
| State Highway 130, Segments 5&6 is a landmark investment for UTA, representing an attractive entry into the US infrastructure market. |
Utilities
| UTA indirect interest in equity (through HUT): | 9.9 percent |
| Return since inception to UTA (p.a.) | 14.6 percent |
| South East Water (as at 31 December 2007, following the merger with Mid Kent Water) (United Kingdom) | |
| UTA interest in South East Water - voting | 50.0 percent* |
*the remaining 50 percent is owned by another Hastings managed fund - Hastings Diversified Utilities Fund.
Seaports / Other Assets
| UTA interest through Port of Portland Holdings: | 50.0 percent |
| Return since inception to UTA (p.a.) | 16.8 percent |
| Return to UTA for the financial year 2006 /2007 | 14.6 percent |
| Return since inception to UTA (p.a.) | (0.4) percent |
| UTA interest in Metro Transport Sydney: | 38.9 percent |
| Return since inception to UTA (p.a.) | (29.1) percent |
