AI assistant
ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2017
Dec 12, 2017
64362_rns_2017-12-12_ffe81aa2-35be-40b6-9d2c-e8c99a3b6171.pdf
Net Asset Value
Open in viewerOpens in your device viewer
==> picture [162 x 82] intentionally omitted <==
Argo Global Listed Infrastructure Limited ACN 604 986 914 NTA & Investment update / 30 November 2017
Argo Global Listed Infrastructure Limited (AGLI) is a listed investment company which was established in 2015 to provide investors with exposure to a diversified portfolio of securities in the global listed infrastructure sector, contained within the simple and easily tradeable structure of an ASX-listed investment company. The investment objective is to provide shareholders with a mix of long-term capital growth and dividend income, and to provide important diversification benefits to Australian investors.
Net Tangible Asset backing per share (NTA)
NTA per share[1] $2.20 NTA after unrealised tax provision[2] $2.14
1. This figure allows for all costs incurred, including company tax and any tax payable on gains realised from portfolio sales.
2. Under ASX Listing Rules, the Company is also required to calculate the NTA per share after providing for estimated tax on unealised gains/losses in the portfolio (tax that may arise should the entire portfolio be disposed of on the above date).
Performance
| Performance | ||||
|---|---|---|---|---|
| Since | ||||
| 3 mths | 6 mths | 1 year | inception (p.a.) | |
| NTA | 7.7% | 4.2% | 18.9% | 6.4% |
| Benchmark | 5.8% | 3.8% | 19.2% | 9.5% |
| MSCI World (A$) | 11.2% | 7.4% | 20.4% | 9.5% |
About the Company
| About the Company | |
|---|---|
| ASX code | ALI |
| Listing dateMarket cap. | 3 July 2015A$274m |
| Shares on issue | 143,583,305 |
Investment strategy
AGLI invests in an actively managed portfolio of 50-100 global listed infrastructure equity securities.
The geographical and infrastructure subsector splits of the portfolio at month end are illustrated on the next page.
There is no debt and the portfolio is unhedged for currency.
Portfolio Manager Cohen & Steers, Inc.
Benchmark = FTSE Global Core Infrastructure 50/50 Index (in $A)
Monthly commentary
The portfolio had a strong positive total return in the month and comfortably outperformed the benchmark, recording its best month of outperformance and the highest NTA value since listing.
November was another broadly positive month for global stocks, aided by continued synchronized global economic growth, relatively stable interest rates and progress toward tax reform in the United States. Listed infrastructure also performed well in this environment, with AGLI’s NTA and share price rising by 4% and 6% respectively.
Stock selection in communications companies, led by our overweight in INWIT and Crown Castle International and our holdings in gas distribution, midstream energy and water infrastructure companies, drove the outperformance. In addition, our current decision to not invest in marine port companies, in particular China Merchants Holdings which fell heavily following the government’s tariff reduction announcement, further contributed to relative returns.
Elsewhere, railway stocks were lifted by US freight companies, which benefited from generally positive economic data as well as optimism over the prospect for corporate tax cuts. Communication towers, especially the US companies, were supported with indications that Sprint, instead of merging with T-Mobile, might remain a stronger stand-alone entity and spend more to build out its own network. The portfolio continues to have no exposure to satellite companies as they struggle with increased competition.
Looking forward, the outlook for growth globally continues to remain constructive, with improving growth rates and as yet benign inflation. The US Federal Reserve will meet this week and likely raise interest rates, with much interest from markets in any outlook comments from the Fed.
We would like to thank all shareholders who attended our investor meetings held around the country during late October and early November and those of you who participated in the survey. We wish all shareholders the best for the coming New Year.
Argo Global Listed Infrastructure Limited
Website www.argoinfrastructure.com.au Share Registry Computershare Investor Services Email [email protected] Website www.investorcentre.com Telephone 08 8210 9555 Telephone 1300 389 922 (in Australia) Postal Address GPO Box 2692 Adelaide SA 5001 +61 3 9415 4610 (outside Australia) Registered Address 19 Grenfell Street Adelaide SA 5000 Postal Address GPO Box 2975 Melbourne VIC 3001
==> picture [596 x 821] intentionally omitted <==
----- Start of picture text ----- Portfolio Diversification / 30 November 2017Subsector diversificationDiversified 1.5% Cash 0.7%Water 5.6%Airports 7.1%Electric 30.4%Gas Distribution 7.6%Railways 10.4%Toll Roads 10.6% Midstream Energy 14.3%Communications 11.8%Geographic diversificationby country/region of listing China 1.3%30United Kingdom 1.9% Cash 0.7%Australia 4.5%Latin America 5.2%Japan 6.1%Asia Pacific 6.3%United States 53.4%Canada 6.8%5 Europe 13.8%About the Portfolio Manager About the ManagerThe day to day active management of the portfolio is outsourced to the New York AGLI is managed by Argo Service Company Pty Ltd (ASCO), which is a whollybased specialist fund manager, Cohen & Steers. owned subsidiary of Argo Investments Limited. ASCO provides management,Cohen & Steers is listed on the New York Stock Exchange and manages funds of administrational and financial services to AGLI under AFSL no. 470477.approximately US$50 billion from offices around the world.This report has been prepared by Argo Service Company Pty Ltd (ACN 603 367 479; AFSL 470477), as general information only and is notintended to provide financial advice or take into account your objectives, financial situation or needs. You should consider, with a financialadviser, whether the information is suitable for your circumstances before making any investment decisions. Past performance is no guaranteeof future results.----- End of picture text -----