ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2018

Jun 12, 2018

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Argo Global Listed Infrastructure Limited ACN 604 986 914 NTA & Investment update / 31 May 2018

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.

About the Company ASX code ALI Listing date 3 July 2015 Market cap. A$253m Shares on issue 142,733,521

Net Tangible Asset backing per share (NTA)

NTA per share[1] $2.11 NTA after unrealised tax provision[2] $2.07

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 unrealised 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	6.0%	-3.6%	0.4%	3.9%
Benchmark	5.0%	-4.4%	-0.8%	6.2%
S&P ASX 200 (accum.)	1.1%	2.8%	9.6%	7.2%

Benchmark = FTSE Global Core Infrastructure 50/50 Index (in A$)

Please see the company website for the most recent weekly NTA announcement.

argoinfrastructure.com.au

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.

Monthly commentary

Overall, global infrastructure stocks generally performed quite well in May amid relatively flat or lower equity markets. Once again, the more economically sensitive infrastructure sectors such as midstream energy (including pipelines) and railways were quite strong, rising 4.4% and 5.0% respectively. However, this was balanced out somewhat by weakness in toll roads and airports, which were negatively impacted by the political uncertainty in Italy.

Markets were concerned that Italy’s inability to form a coalition government amid a rise in local populist sentiment might compromise its future in the European Union. In the end there was some relief when a government was formed which did not include a strongly anti-euro finance minister.

Cohen & Steers as portfolio manager had another strong month, outperforming the benchmark by over 1%. Stock selection in the midstream energy sector contributed to the relative outperformance, aided by an out-of-index position in Cheniere Energy, an energy infrastructure company that owns and operates US liquefied natural gas (LNG) export facilities. During the month, Cheniere reported a strong quarterly result, raised its 2018 earnings guidance for their existing eight LNG trains, and also announced a possible expansion of LNG trains and improved cashflow projections for the next few years.

While the infrastructure sector has underperformed strong broader equity markets since AGLI first listed nearly three years ago, the last quarter has seen relative outperformance as equity markets have flattened out, highlighting the intended diversification benefit of global infrastructure’s low correlation with Australian equities.

AGLI’s on-market buy-back continues, with just over 1 million shares (0.7% of capital) so far bought back at around a 15% discount to their NTA value. By buying back shares at this level of discount and cancelling them, we improve the value of the remaining shares on issue for the ongoing longer-term shareholders of AGLI.

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 May 2018
Subsector diversification Cash 2.6%
Water 4.5%
Diversified 0.4%
Gas Distribution 5.4%
Electric 29.3%
Toll Roads 6.4%
Airports 8.1%
Communications 11.2%
Midstream Energy 17.9%
Railways 14.2%
Geographic diversification
by country/region of listing
29 Cash 2.6%
Australia 3.1% United Kingdom 1.9%
Latin America 4.6%
Japan 6.3%
Asia Pacific 7.7%
United States 55.2%
Canada 8.8%
5 Europe 9.8%
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.
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