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ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2018
Mar 12, 2018
64362_rns_2018-03-12_6ae8b6ba-a5b6-41e9-beb0-a2e337664657.pdf
Net Asset Value
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Argo Global Listed Infrastructure Limited ACN 604 986 914 NTA & Investment update / 28 February 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] $2.00 NTA after unrealised tax provision[2] $2.00
1. This figure allows for all costs incurred, including company tax and any tax payable on gains realised from portfolio sales.
2. Under ASX Listing Rules, the Company is also required to calculate the NTA per share after providing for estimated tax on unrealised gains/losses in the portfolio (tax that may arise should the entire portfolio be disposed of on the above date).
Performance
| Performance | ||||
|---|---|---|---|---|
| Since | ||||
| 3 mths | 6 mths | 1 year | inception (p.a.) | |
| NTA | -9.0% | -2.0% | 4.3% | 2.1% |
| Benchmark | -8.9% | -3.6% | 4.5% | 4.8% |
| MSCI World (A$) | -0.4% | 10.8% | 15.8% | 8.4% |
About the Company
| About the Company | |
|---|---|
| ASX code | ALI |
| Listing date Market cap. |
3 July 2015 A$253m |
| Shares on issue | 143,583,305 |
Investment strategy
AGLI invests in an actively managed portfolio of 50-100 global listed infrastructure equity securities.
The geographical and infrastructure subsector splits of the portfolio at month end are illustrated on the next page.
There is no debt and the portfolio is unhedged for currency.
Portfolio Manager Cohen & Steers, Inc.
Benchmark = FTSE Global Core Infrastructure 50/50 Index (in A$)
Monthly commentary
The extended bull market for global equities was interrupted by sharp market falls in early February, as concerns that continuing synchronised economic growth would lead to higher inflation and put more upward pressure on interest rates. Reflecting this sentiment, the US Treasury 10-year bond yield has risen from 2.4% to 2.9% so far this calendar year.
Although most market indices have since recovered those falls, the more interest rate sensitive sectors, including infrastructure, lagged the bounce back of broader equities. AGLI’s NTA has fallen in A$ terms over the last three months, although the portfolio manager continues to outperform its benchmark infrastructure index. Most subsector returns within infrastructure were negative, although AGLI’s largest gas distribution company, Sempra Energy, outperformed after announcing a 9% increase in its dividend.
Rising interest rates often act as a headwind to listed infrastructure companies, particularly over the short term, but this has been shown to reverse in the months following the initial ‘sticker shock’ of a jump in bond yields.
The market sell-offs experienced in February were a reminder that in comparison to general equities, global listed infrastructure stocks have generally tended to offer relative downside protection and lower volatility, whilst still providing competitive returns through various investment cycles.
As a relatively defensive sector, infrastructure has lagged the technology-fuelled global equity market strength of recent years, but we firmly believe that particularly when times become more uncertain, the addition of AGLI to an Australian equity dominated portfolio can provide imp geographic and currency perspective. ortant diversification benefits from an asset class,
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 / 28 February 2018
Subsector diversification Cash 1.4%
Gas Distribution 4.9% Diversified 1.0%
Water 5.4%
Electric 26.8%
Airports 10.3%
Toll Roads 10.4%
Midstream Energy 15.9%
Communications 11.7%
Railways 12.2%
Geographic diversification by country/region of listing China 1.7%
27
United Kingdom 1.7% Cash 1.4%
Australia 3.8%
Latin America 5.9%
Japan 6.4%
United States 50.9%
Asia Pacific 6.6%
Canada 8.2%
5
Europe 13.4%
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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