ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2018

Apr 11, 2018

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

Net Tangible Asset backing per share (NTA)

NTA per share[1] $2.04 NTA after unrealised tax provision[2] $2.03

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	-2.3%	0.0%	3.9%	3.0%
Benchmark	-2.6%	-0.6%	3.9%	5.6%
S&P ASX 200 (accum.)	-3.9%	3.5%	2.5%	5.7%

About the Company ASX code ALI Listing date 3 July 2015 Market cap. A$241m 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

AGLI was established in 2015 as a vehicle to invest in global listed infrastructure stocks in developed and emerging markets around the world. The aim is to allow a unique diversification for Australian retail investors who predominantly hold domestic equities. The listed investment company structure filters the complexity of investing internationally into a single ASX-listed stock and the listed infrastructure sector portfolio provides capital and income growth in a relatively defensive asset class which has little correlation to Australian equity market performance.

We talk about the benefits of diversification to Australian investors, but in reality, this only becomes important to us when our core investments are not doing so well. Although the infrastructure sector (and AGLI’s asset value) has recorded positive returns over the past couple of years, it has found itself a laggard when compared to high growth equities both globally and in Australia, particularly the high-profile technology stocks. Markets have rallied strongly since Trump’s Presidential win, with improving global growth and the recent US tax cuts. During this time, infrastructure became less interesting for investors.

However, the recent volatility in March has reminded us of the benefits of diversification. The NASDAQ index fell 2.9% for the month, the MSCI World index fell 2.4% and the Australian market fared worse, with the S&P/ASX 200 index falling 4.3%. At the same time, AGLI’s portfolio value increased and was up 2.7%, with the infrastructure sector up 1.0% and the weaker Australian dollar adding the rest. This was a +7.0% outperformance versus the Australian market in just one month.

We remain positive on the medium and long-term outlook for infrastructure, with population growth and urbanisation requiring massive infrastructure spending in the developed world and emerging markets. This will provide many opportunities for ongoing infrastructure investment.

AGLI will provide long-term defensive growth with dividends from its exposure to this global infrastructure thematic which includes rapidly growing emerging markets and enormous opportunities in renewable energy, and with infrastructure being out of favour until recently, investors can gain access to the stock at a reasonable discount to NTA.

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 March 2018
Subsector diversification
Diversified 0.8%
Water 5.5% Cash 0.7%
Gas Distribution 5.8%
Electric 28.1%
Toll Roads 8.5%
Airports 9.9%
2
Communications 12.0%
Midstream Energy 16.7%
Railways 12.0%
Geographic diversification by country/region of listing China 1.5%
United Kingdom 1.9% Cash 0.7%
Australia 3.4%
Latin America 5.7%
Japan 6.5%
Asia Pacific 6.4%
United States 53.8%
Canada 8.4%
5 Europe 11.7%
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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