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ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2017
Nov 9, 2017
64362_rns_2017-11-09_a4a07938-34f7-4f57-ab19-55c178b1687e.pdf
Net Asset Value
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Argo Global Listed Infrastructure Limited ACN 604 986 914 NTA & Investment update / 31 October 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] $2.12 NTA after unrealised tax provision[2] $2.08
1. This figure allows for all costs incurred, including company tax and any tax payable on gains realised from portfolio sales.
2. Under ASX Listing Rules, the Company is also required to calculate the NTA per share after providing for estimated tax on unealised gains/losses in the portfolio (tax that may arise should the entire portfolio be disposed of on the above date).
Performance
| Performance | ||||
|---|---|---|---|---|
| Since | ||||
| 3 mths | 6 mths | 1 year | inception (p.a.) | |
| NTA | 5.5% | 3.7% | 12.8% | 4.9% |
| Benchmark | 5.7% | 4.7% | 14.4% | 8.6% |
| MSCI World (A$) | 8.6% | 6.8% | 21.9% | 8.3% |
| About the CompanyASX code | ALI |
|---|---|
| Listing dateMarket cap. | 3 July 2015A$258m |
| 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
October was another good month for equity markets, with positive investor sentiment spreading amid continued synchronized global economic growth, low interest rates and comments from monetary authorities that were generally less hawkish than anticipated.
Listed infrastructure advanced in this environment, but underperformed the broader equity market, hindered by weakness in midstream energy stocks.
Midstream energy companies (mostly pipeline operators) underperformed infrastructure in general due to lower than expected energy production growth, which has tempered the outlook for pipeline volumes.
Toll road stocks were once again the strongest group within infrastructure, being one of the more economically sensitive subsectors which generally responds well to encouraging economic growth data.
Airports gained slightly this month but underperformed other infrastructure subsectors, due primarily to their very strong performance in the first half of the calendar year. While passenger traffic has continued to rise, it has become more challenging to impress on year-on-year growth comparisons.
The Communications subsector also had a good month, with tower companies Crown Castle International and American Tower (two of AGLI’s top 3 holdings) rallying on news that an anticipated merger between two large US telecommunications companies, Sprint and T-Mobile, was facing significant hurdles. If these two major communications tower tenants were to combine, it would probably result in tower site overlap and eventual rationalization.
Satellite stocks also form part of the Communications subsector and they fell sharply this month due to market concerns of increasing competitive pressures in that industry. AGLI does not currently hold any satellite stocks.
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
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Portfolio Diversification / 31 October 2017 Subsector diversification Cash 1.8% Diversified 1.7% Water 5.1% Airports 7.0% Electric 30.5% Gas Distribution 7.7% Railways 10.1% Midstream Energy 13.6% Toll Roads 10.8% Communications 11.7% Geographic diversification by country/region of listing Cash 1.8% 30 United Kingdom 2.0% China 1.5% Australia 4.6% Latin America 5.0% Asia Pacific 6.1% Japan 6.2% United States 53.0% Canada 6.2% 5 Europe 13.6% About the Portfolio Manager About the Manager The 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 wholly based 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 not intended to provide financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances before making any investment decisions. Past performance is no guarantee of future results.
Subsector diversification