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ARGO GLOBAL LISTED INFRASTRUCTURE LIMITED — Net Asset Value 2018
Jan 10, 2018
64362_rns_2018-01-10_0ddcffe8-8dce-4b19-be3f-a930b139f84b.pdf
Net Asset Value
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Argo Global Listed Infrastructure Limited ACN 604 986 914 NTA & Investment update / 31 December 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 share1 | $2.10 |
|---|---|
| NTA after unrealised tax provision2 | $2.07 |
1. This figure allows for all costs incurred, including company tax and any tax payable on gains realised from portfolio sales.
2. Under ASX Listing Rules, the Company is also required to calculate the NTA per share after providing for estimated tax on unealised gains/losses in the portfolio (tax that may arise should the entire portfolio be disposed of on the above date). gures are subject to external review by the Company’s auditor.
These fi
Performance
| Performance | ||||
|---|---|---|---|---|
| Since | ||||
| 3 mths | 6 mths | 1 year | inception (p.a.) | |
| NTA | 2.3% | 3.0% | 8.8% | 4.2% |
| Benchmark | 2.1% | 2.8% | 9.2% | 7.3% |
| MSCI World (A$) | 5.8% | 8.5% | 13.3% | 8.4% |
About the Company
| About the Company | |
|---|---|
| ASX code | ALI |
| Listing date Market cap. |
3 July 2015 A$272m |
| 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
Infrastructure stocks eased slightly in December but still recorded a strong 2017 overall, with AGLI’s share price performance returning +15.4% for the calendar year (including dividends paid). The share price discount to NTA has also improved, from -15% to just under -10%.
Recent strength in global equity markets helped AGLI’s NTA achieve a high to date of $2.20 per share in early December, although by the end of the month the sharply rising A$ had reduced our NTA by nearly 3%.
In general, investor sentiment remains positive as economic data continues to improve around the world. This has helped the areas within infrastructure that benefit from increasing economic activity, such as airports and railways.
However, improving growth often raises the likelihood of increasing interest rates and this has prompted underperformance in the more utility-style infrastructure stocks, including electric and gas transmission companies, which form a significant part of the infrastructure index due to their large size.
In the US, significant tax cuts were passed by Congress just before Christmas and this has benefited US railway stocks in particular which have been historically high tax payers.
Pipeline stocks had a better month in December after a tough 2017, in response to OPEC’s announcement that it would extend oil production cuts throughout 2018. Although the rising oil price doesn’t directly benefit pipeline operators which are paid by volume, it does indirectly help as their customers (the energy producers) are experiencing better conditions which may lead to increased production and further investment.
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 December 2017
Subsector diversification Cash 1.6%
Gas Distribution 5.2% Diversified 1.5%
Water 5.8%
Electric 28.0%
Airports 9.3%
Railways 10.6%
Midstream Energy 15.5%
Toll Roads 10.7%
Communications 11.8%
Geographic diversification
by country/region of listing
28 Cash 1.6%
China 1.5%
United Kingdom 1.9%
Australia 4.5%
Latin America 5.3%
Japan 5.9%
United States 49.8%
Asia Pacific 6.7%
Canada 8.3%
5
Europe 14.5%
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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