Overview
Utilities Trust of Australia (UTA/the
Fund) is an unlisted unit trust seeking to consistently provide investors with
benchmark-plus returns by taking influential positions in global infrastructure
projects.
UTA's objective is to provide investors
with a total return exceeding the benchmark return of the 10 Year Australian
Government Bond Rate plus 4 percent.
The Fund provides investors with
access to a portfolio of infrastructure assets across Australia, the United
Kingdom, Europe and the United States.
Performance Highlights
UTA performed
strongly over the financial year, exceeding its benchmark by 4.7 percent.
Its return for the year of 12.6 percent was achieved despite the negative
impact of an overall increase in the discount rates used to value UTA’s
investments.
In recent
years UTA’s performance has been supported by the strength of its airport
portfolio. This year the best performing portfolio companies were Interlink
Roads (38.9 percent return), Freeport LNG (27.5 percent return), ElectraNet
(23.1 percent return) and Perth Airport (17.0 percent return).
In addition
to strong and stable returns, the portfolio is producing consistent and
reliable cash flows. The annual distribution to investors of
$100.2 million in July 2012 represents a yield of 5.0 percent for the
year (including tax credits). Over the past five years, UTA’s average yield is
above 5.0 percent (including franking credits) and its internal rate of
return is 10.7 percent per annum compared with its benchmark of
9.2 percent.
Performance Summary as at 30 June 2012 (%per annum)
People and Boards
Chief Executive
Officer:
Colin Atkin
Colin Atkin joined Hastings in 2008 and has over 20
years of domestic and international markets experience including extensive
experience focused on the infrastructure and utilities sectors. He is Chief
Executive Officer of the Utilities Trust of Australia and is a member of
Hastings’ operating committees including the Equity Investment Committee.
Until recently Colin was Chief Executive Officer of Hastings Diversified
Utilities Fund (HDF), which he lead and managed
through a recent successful sale. In addition to his role as Chief
Executive Officer of HDF, Colin’s responsibilities have included Directorships
and implementation of strategies at a number of Hastings investee companies.
Prior to joining Hastings, Colin spent seven years with the international
credit rating agency Standard & Poor’s culminating in his tenure as a
Director of Fund Ratings and a Director within the Corporate and infrastructure
credit rating group. Before joining Standard & Poor’s, Colin worked
for Dresdner Kleinwort Wasserstein in the European investment banking and debt
capital market division.
Colin has an MBA from Deakin University and is a
graduate member of the Australian Institute of Company Directors.
Boards
Utilities of Australia Pty Ltd Board
Andrew Elliott (Non-Executive Director)
Term of office: Non-executive Director since August 2012
Andrew is Deputy Chief Investment Officer at VFMC which he joined in April 2007 from Deutsche Asset Management (Australia) Limited (RREEF Infrastructure) where he was a Director in infrastructure funds management. He has over 20 years experience in asset management and legal roles. He jointly lead the VFMC Private Markets team covering unlisted infrastructure, property and private equity prior to becoming Deputy CIO in 2008 and continues to oversee unlisted investments as part of his current role.
Andrew has extensive experience in unlisted investments including deal origination, review, execution and ongoing portfolio management. He formerly sat on the boards of Epic Energy, Yallourn Energy, Australia Pacific Airports Corporation and Port of Geelong.
Andrew holds a Bachelor of Laws (Hons) and a Bachelor of Commerce from the University of Melbourne.
Board committee membership: No
Independent: No
Brian Daley (Non-Executive Director)
Term of office: Non-executive Director since February 2012
Brian is a Director of a number of industry superannuation bodies, namely the industry funds Australian Super and Host-plus as well as the unlisted property trust, ISPT. He has a long term involvement with industry funds having been a Trustee on a variety of funds for over 25 years. Brian is also currently the National President of United Voice, the union for workers in the property services, hospitality and health and community industries. Prior to his retirement in 2007 Brian has held the position of Branch secretary of the Victorian Branch of the Union for approximately 15 year.
Brian holds a Bachelor of Mathematics Degree from the University of Newcastle
Board committee membership: No
Independent: No
Denise Allen (Non-Executive Director)
Term of office: Non-executive Director since March 2008
Denise Allen has been involved in the financial services industry for 25 years. She was the Managing Director, Asia Pacific for Citigroup Asset Management Limited. Denise was Chairman of the Board for Citigroup Asset Management Australia Limited, a Director of Citigroup Investment Bank (Singapore) Ltd, Salomon Brothers Asset Management (Asia) Limited and Citistreet Australia Limited. She was the Responsible Officer for the Citigroup Asset Management Australian Financial Services Licence and Responsible Entity for their Unit Trust vehicles. She was also a member of the Citigroup Country Co-ordinating Committee. Denise continued with Legg Mason after they purchased Citigroup Asset Management in December 2005 and left the group in April 2006.
Prior to Citigroup she worked with JP Morgan Investment Management and Potter Warburg Asset Management. Denise currently has her own consultancy business, Chelcor Pty Ltd that holds an Australian Financial Services Licence
She is also on the Board of the Medical Research Commercialisation Fund and is a Trustee Director of AvSuper.
Board committee membership: Denise is a member of the Communications Committee
Independent: No
Jay Bonnington (Non-Executive Director)
Term of office: Non-executive Director since January 2012
Jay has a chartered accounting background, and worked overseas in senior financial-management roles in many varied sectors with extensive experience in corporate finance.
In Australia Jay worked in the construction/engineering, financial services and energy industries. Former roles include Financial Controller - Transfield Services Group, Finance Director/CFO - Yallourn Energy Ltd, a National Director of CPA Australia, and National CEO of NFP MAWFA. A professional NED for over 15 years, and former Chair of Dental Health Services Victoria for seven years until 2006, Jay has served on a variety of boards, both government and non-government, and continues to Chair Audit & Risk, and Governance Committees and an AICD Nexus Directors Group.
External directorships:
HESTA Superannuation, Port of Melbourne Corporation, St. John of God Health Care Group, Metropolitan Fire & Emergency Services, Deakin University Council , The Lord Mayor’s Charitable Foundation, The Queens Fund Charity.
Qualifications B.Com (Auck), MBA (Mon), FCPA, FAICD
Board committee membership: Jay is Chairperson of the Audit Committee
Independent: No
.
John Haskins AM (Non-Executive Director)
Term of office: Non-executive Director since April 2009
John is a former Vice-President of Confederation of International Contractors’ Association (CICA), the body that represents the construction industry world-wide.
He is immediate former President of International Federation of Asian and Western Pacific Contractors’ Association (IFAWPCA), an association that has 15 countries as members in the Asian and Western Pacific Region. John is a Life Member and past President of Master Builders’ Association of the ACT, and a Life Member and Past President of the Master Builders’ Association of Australia. Prior to his retirement, John was chairman of a medium-sized construction and development company with offices in Canberra, Sydney and Gold Coast for over 20 years. In 2004, because of his extensive involvement in local affairs and his high profile in the building and construction industry, the ACT Chief Minister bestowed on him an Honorary Ambassadorship for Canberra. Currently, John sits on the board of Construction Building Unions’ Superannuation Fund (CBUS), and is also Chairman of the Audit Committee of that Fund. In 2007, the Chief Minister of the ACT appointed John chairman of the Land Development Agency (LDA). John resigned from this role in 2010 and has since been appointed Chairman of Exhibition Park in Canberra (EPIC). John has always been involved in the construction and development industry and still is today with his continued involvement with the Master Builders’ Association.
Board committee membership: John is a member of the Audit Committee
Independent: No
Michael O’Connor (Non-Executive Director)
Term of office: Non-executive Director since January 2013
Michael brings to the position many years experience as a Director having been involved with industry superannuation funds since the 1980s. He is currently Co-Chair and Director of the $1.7 billion industry super fund First Super, which has 72,000 members across the timber, pulp & paper and furniture & joinery industries and their communities. Michael also chairs the First Super Investment Committee.
Michael also holds several other Director roles. He is a Director of Frontier Advisors Pty Ltd, asset consultants to a range of industry and not-for-profit funds and the National Secretary of the Construction Forestry Mining & Energy Union (CFMEU), having held this position since January 2011. He is also the Divisional Secretary of the CFMEU Forestry & Furnishing Products Division (FFPD) and has held this position since late 2005. He has been with the Union for over twenty-five years, commencing work as a union organiser in 1985. A member of the Prime Minister’s Taskforce On Manufacturing until its conclusion recently on 16 August 2012, Michael is one of the ACTU Vice Presidents and a member of the ACTU Executive and several ACTU Committees, as well as a member of the Commonwealth Government’s Forest & Wood Products Council (FWPC) and from 1994 to 2009 Michael was on the Board of ForestWorks culminating in the role of Deputy-Chair.
Board committee membership: No
Independent: No
Rob Jolly (Chairman)
Term of office: Chairman since September 2011
Rob Jolly is a former Treasurer of Victoria and during his time in government, he played a lead role in developing and implementing the Victorian Government's economic and industrial relations policy introducing a wide range of economic and social improvements to the State of Victoria.
Rob also represented the Victorian Government at a national and international level including major economic presentations and conferences in Europe, Asia and North America. Prior to assuming the role of Treasurer of Victoria, Rob held a senior role in the ACTU, where he undertook high level economic and social research. As well as presenting National Wage Cases before the Industrial Relations Commission he represented the ACTU at various local and international committees, including the OECD in Paris. He has held a number of Directorships in the environmental economics field and is currently a Director, Carbon Market Economics.
Rob has a Bachelor of Economics and a Master of Economics both from Monash University.
Board committee membership: Rob is a member of the Communications Committee
Independent: Yes
Tony Tuohey (Non-Executive Director)
Term of office: Non-executive Director since January 2007
Tony Tuohey has been a director of Vision Super (formerly LAS) since 1995, a $4.2 billion fund covering the Local Government and other Statutory Authorities and is currently Chair of its Investment Committee. Tony is Chair of the Regional Infrastructure Fund established by Vision Super, is a former director of the Development Australia Fund and is the Chair of Regional Windfarms, which owns the Wonthaggi Wind farm through a Special Purpose Vehicle on behalf of Vision Super.
Board committee membership: Tony is a member of the Communications Committee
Independent: No
Last updated 01 October
2012