ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2017

Sep 10, 2017

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Argo Global Listed Infrastructure Limited ACN 604 986 914 NTA & Investment update / 31 August 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.

Net Tangible Asset backing per share (NTA)

NTA per share[1] $2.06 NTA after unrealised tax provision[2] $2.04 These NTA figures are calculated after providing for the 2.5 cents per share final dividend declared 28 August 2017.

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	-2.1%	7.1%	6.4%	4.1%
Benchmark	-2.3%	8.0%	8.7%	7.6%
MSCI World (A$)	-3.4%	4.5%	10.1%	5.3%

Returns of the company are net of fees, expenses and tax. Benchmark - the A$ blend of 90% of the FTSE Global Core Infrastructure 50/50 Index and 10% of the Merrill Lynch Fixed Rate Preferred Securities Index. Inception date is 3 July 2015.

About the CompanyASX code	ALI
Listing date	3 July 2015
Market cap.	A$257m
Shares on issue	143,583,305

Investment strategy

AGLI invests in an actively managed global infrastructure portfolio of 50-100 stocks, including global listed infrastructure securities (80-100%); global infrastructure fixed income securities (0-20%) and cash in A$ (0-5%).

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.

Monthly commentary

Listed infrastructure performed well again in August as the global economy continued to expand. Market expectations for near term interest rate hikes diminished, with falling long-term bond yields in the US and Europe further supporting infrastructure stocks. AGLI’s NTA rose 2.8% in August, outperforming the benchmark and broader equity markets.

Hurricane Harvey temporarily disrupted operations for a number of listed infrastructure companies in the Texas Gulf Coast region, particularly in midstream energy and certain electric utilities and freight railways. While the ultimate impact from the storm is still unknown, the companies reported no major damage and their stocks were not materially affected.

Communication towers experienced strong price momentum on prospects of continued growth from greater customer spending expected in the back half of the year. As one of the more leveraged subsectors, towers also benefited from reduced expectations for interest rate increases. AGLI holds overweight positions in communication towers, with Crown Castle International and American Tower being two of our top three holdings, and this was an important contributor to the positive relative performance during the month.

Sempra Energy, a US-based gas distribution company which is a top five holding in AGLI’s portfolio, outperformed after making a US$9.5 billion bid for Oncor, the largest electric transmission and distribution utility in Texas. The acquisition should result in higher valuation multiples for Sempra, given that the company will be absorbing a more regulated business.

European airports have been very strong over the last year, but this month Flughafen Zuerich fell when the company increased its passenger volume guidance but left its earnings guidance unchanged.

AGLI was pleased to report its second full year result in August, with a modest increase in full year dividends and an increase in the overall value of the portfolio.

Argo Global Listed	Infrastructure Limited
Website	www.argoinfrastructure.com.au	Share Registry	Computershare Investor Services
Email	invest@argoinfrastructure.com.au	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 August 2017 Subsector diversification Diversified 1.6% Cash 2.7% Marine Ports 0.2% Water 4.8% Gas Distribution 7.1% Electric 30.0% Airports 8.0% Railways 9.7% Midstream Energy 12.8% Toll Roads 11.5% Communications 11.6% Geographic diversification by country/region of listing 30 China 1.8% United Kingdom 2.0% Cash 2.7% Latin America 3.8% Australia 5.2% Asia Pacific 5.9% Japan 6.7% United States 49.7% Canada 7.6% 5 Europe 14.6% 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