Business Description:
Hastings Diversified Utilities Fund (HDF) is an investment vehicle focussed on energy infrastructure investment and managed by the Westpac Banking Corporation subsidiary Hastings Funds Management (Hastings). HDF's target investments include gas transmission and distribution assets; electricity generation, transmission and distribution assets; water and other essential utilities; hydro and wind power generation assets.

Strategy Analysis:
HDF focuses on utility infrastructure investments that balance a regular cash yield and prospects for long term capital growth. Its investment mandate covers regulated and unregulated assets both domestically and internationally, focusing on gas transmission and distribution assets; electricity generation, transmission and distribution assets; water and other essential utilities; and hydro and wind power generation assets. Current focus is on organic expansion of its sole asset Epic Energy, a gas transmission company. It will look to expand and improve Epic´s existing pipelines and take advantage of nearby opportunities. Epic is well positioned to meet the demand for coal seam gas by linking its South West Queensland pipeline with the Moomba hub which feeds into southern markets. Over the longer-term small acquisitions are possible. Hastings Diversified Utilities Fund reported NPAT up 58.6% to $27.06m for the half-year ended 30 June 2011. Revenues from ordinary activities were $84.08m, up 11.4% from the same period last year. Basic EPS was 5.15 cents compared to 3.43 cents last year. Net operating cash flow was $40.43m compared to $38.64m last year. The interim dividend declared was 5.0 cents compared with 6.0 cents last year.