Argo Global Listed Infrastructure Ltd. · ASX:ALI
Argo Global Listed Infrastructure — Shareholder Meeting (October 2018)
40 slides from Argo Global Listed Infrastructure's shareholder meeting presentation, Oct 22, 2018
Slide 1: Welcome to the 2018 Annual General Meeting
For personal use only 1 Welcome to the 2018 Annual General Meeting
Slide 2: Disclaimer
2 Disclaimer For personal use only This presentation has been prepared by Argo Service Company Pty Ltd (ASCO) (ACN 603 367 479) (Australian Financial Services Licence 470477), on behalf of Argo Global Listed Infrastructure Limited (ACN 604 986 914). ASCO’s Financial Services Guide is available on re
Slide 3: Financial results year ended 30 June 2018
3 Financial results year ended 30 June 2018 For personal use only 2018 2017 Profit $16.2 million $7.8 million Total dividends per share 3.75 cents 3.5 cents Net tangible asset backing (NTA) $2.16 $2.06 per share, after costs and tax
Slide 4: Dividends
4 Dividends first fully franked dividend paid in September For personal use only +0.95c 3.5c 3.75c 3.0c 2016 2017 2018 interim final franking credits* * the 2018 final dividend was fully franked
Slide 5: Total returns to September 2018
5 Total returns to 30 September 2018 For personal use only 12.8% 11.1% 9.6% 9.4% 9.6% 8.7% 3.9% 3.4% 2.6% 3 months 6 months 1 year NTA Portfolio Benchmark
Slide 6: Positive progress – share price since inception
6 Positive progress – share price since inception based on $10,000 invested For personal use only + franking credits + dividends paid Share price $10,234 $10,185 $9,625 07/2015 01/2016 07/2016 01/2017 07/2017 01/2018 07/2018
Slide 7: Positive progress - NTA since inception
7 Positive progress - NTA since inception based on $10,000 invested For personal use only $11,930 + franking credits $11,880 + dividends paid ALI NTA $11,304 07/2015 01/2016 07/2016 01/2017 07/2017 01/2018 07/2018
Slide 8: Narrowing the share price/NTA discount
8 Narrowing the share price/NTA discount For personal use only • On market buy-back (since April 2018) • Dividend Reinvestment Plan on market • Increased marketing and communication
Slide 9: Opposition to the removal of refundable franking credits
9 Opposition to the removal of refundable For personal use only franking credits
Slide 10: Survey results
10 Survey results For personal use only 92% Diversification most Followed by 80% invested based on Long-term important infrastructure exposure own research shareholders
Slide 11: Directorate
For personal use only 11 Directorate This Photo by Unknown Author is licensed under CC BY-NC
Slide 12: Market outlook
12 Market outlook Market outlook For personal use only
Slide 13: AGLI's objective
13 “AGLI’s objective is to provide a total return for For personal use only long-term investors, consisting of capital growth and dividend income, from a global listed infrastructure portfolio which provides diversification benefits for Australian investors”
Slide 14: Listed infrastructure in Australia
14 Listed infrastructure in Australia For personal use only • 13 companies • Mature, expensive sector • $94 billion market cap. • Limited assets
Slide 15: Access global opportunities
15 Access global opportunities For personal use only • 350 companies • 16 countries • Developed and emerging markets • $2.4 trillion market cap. • All assets types
Slide 16: Benefits of listed infrastructure
16 Benefits of LISTED infrastructure For personal use only Transparency Liquidity Low correlation with broader equities Low volatility Daily pricing Diversification
Slide 17: Cohen & Steers, Inc.
17 Cohen & Steers, Inc. (NYSE:CNS) For personal use only London New York Hong Kong
Slide 18: Investor engagement
18 Investor engagement www.argoinfrastructure.com.au For personal use only Independent Research Weekly NTA and Investment Updates Results Announcements Quarterly Investment Report Research Papers Shareholder Presentations and Videos
Slide 19: AGLI opportunity
19 AGLI opportunity For personal use only Global diversification Specialist global Access opportunities fund manager Proven investment Enhance risk Exposure to approach adjusted returns growth trends
Slide 20: Argo Global Listed Infrastructure Limited
For personal use only 23 Argo Global Listed Infrastructure Limited Robert Becker—Senior Vice President, Portfolio Manager, Cohen & Steers
Slide 21: Key Considerations for Investors
21 Key Considerations for Investors For personal use only Why Global Listed Why Why Now? Infrastructure? Cohen & Steers? CPICM04161_OS
Slide 22: Infrastructure Is Essential for Economic Growth
22 Infrastructure Is Essential for Economic Growth For personal use only Characteristics of Global Listed Infrastructure • Long-lived real assets • Often regulated or concession-based • High barriers to entry • Inflation-linked pricing Communications Midstream Energy Transportation Utilities Wireles
Slide 23: Key Infrastructure Themes
23 Key Infrastructure Themes For personal use only Rising Interest Rates Macroeconomic Backdrop Record Dry Powder At September 30, 2018.
Slide 24: Infrastructure Has Historically Shown Resilience After Interest Rate Increases
Infrastructure Has Historically Shown Resilience After Interest 24 Rate Increases For personal use only Infrastructure has often lagged global equities during periods where rates increase… Infrastructure Global Equities 20% 17.2 Average Cumulative Return 15% 10.7 10% 9.0 6.3 4.9 5% 2.6 0% -0.1 -5% -
Slide 25: Macroeconomic Impact on Infrastructure Returns
25 Macroeconomic Impact on Infrastructure Returns For personal use only Relative Returns vs. Equities Across Business Cycles Average Excess Return Ann. 6% Infrastructure Performance 5% 5% Relative to Equities 4% 2% 2% 0% -2% -1% Recession Early Cycle Mid Cycle Late Cycle At December 31, 2017. CPICM0
Slide 26: Record Dry Powder Creating a Valuation Floor
26 Record Dry Powder Creating a Valuation Floor For personal use only Private Infrastructure Dry Powder 180 159 173 152 150 120 109 105 109 $Billions 84 90 66 68 74 65 64 60 37 30 15 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018 Over $170B in assets on the sidelines caus
Slide 27: Why Listed Infrastructure Now
27 Why Listed Infrastructure Now For personal use only Compelling Secular Case Strong Fundamentals Attractive Valuations Supportive Market Environment At September 30, 2018.
Slide 28: Cohen & Steers Global Listed Infrastructure Strategy
28 Cohen & Steers Global Listed Infrastructure Strategy For personal use only • Maximize total return with a balance of capital appreciation and income Objective • Outperform benchmark • Returns are generally driven by underlying asset values • Access to a diversified portfolio of infrastructure wit
Slide 29: Global Listed Infrastructure Top Holdings
29 Global Listed Infrastructure Top Holdings For personal use only Portfolio Top Ten Absolute Positions % NextEra Energy 5.6 American Tower 4.2 Enbridge 3.7 Crown Castle International 3.2 Union Pacific 3.0 Norfolk Southern 2.9 Kinder Morgan 2.6 FirstEnergy 2.5 Atmos Energy 2.5 American Water Works C
Slide 30: Key Holding—Electric Utilities
30 Key Holding—Electric Utilities For personal use only NextEra Energy • Provides sustainable energy generation and distribution services Overview • Generates electricity through wind, solar, and natural gas • Through its subsidiaries, also operates multiple commercial nuclear power units • 5.3 mill
Slide 31: Key Holding—Towers
31 Key Holding—Towers For personal use only Crown Castle International • Largest U.S. wireless tower company with nearly 40,000 towers Overview • Core business is leasing space on its wireless towers primarily to wireless carriers, government agencies and broadband data providers Portfolio Weight •
Slide 32: Key Holding—Railways
32 Key Holding—Railways For personal use only Union Pacific • One of America's leading transportation companies, headquartered in Omaha, Nebraska Overview • Principal operating company, Union Pacific Railroad, is North America's premier railroad franchise, covering 23 states across the western two-t
Slide 33: Key Holding—Midstream
33 Key Holding—Midstream For personal use only Cheniere Energy • Leading producer of liquefied natural gas (LNG) in the U.S. Overview • Cheniere’s operations, construction and development support energy and economic development across the U.S. • By 2020, Cheniere is expected to be a top-5 global pro
Slide 34: Portfolio Performance
34 Portfolio Performance For personal use only Total Returns (%) in A$ Argo Global Listed Infrastructure Limited Linked FTSE Global Core Infrastructure 50/50 Net Tax Index 14% 12.8 12% 10.4 10% 8.7 8.8 8.4 7.5 8% 6% 4% 2% 0% 1 Year 2 Years 3 Years At September 30, 2018.
Slide 35: Portfolio Attribution
35 Portfolio Attribution For personal use only Total Relative Performance for the 1-Year Period: +401 Basis Points Contributors Basis Points Comments Out-of-index allocation to Cheniere Energy; overweight Oneok; Midstream +199 bps underweight TransCanada Toll Roads +93 bps No allocation to CCR; unde
Slide 36: Global Listed Infrastructure Investment Team
36 Global Listed Infrastructure Investment Team Joseph Harvey, President & CIO For personal use only 26/31 PORTFOLIO MANAGERS Robert Becker Ben Morton Co-Head, Portfolio Manager Co-Head, Portfolio Manager 15/23 15/20 London New York Tyler Rosenlicht Portfolio Manager 6/9 Hong Kong RESEARCH ANALYSTS
Slide 37: Cohen & Steers' Competitive Advantages
37 Cohen & Steers’ Competitive Advantages For personal use only Global Listed Infrastructure Experienced Global Investment Team Track Record Substantial Market Position Dedicated Real Assets Manager Rigorous and Disciplined Employee Ownership Advantage Investment Process At September 30, 2018.
Slide 38: Outlook
38 Outlook For personal use only Global U.S. Business Market Business Cycle Implications Cycle Utilities Midstream Energy Transportation Telecommunications At September 30, 2018.
Slide 39: Key Takeaways
39 Key Takeaways For personal use only Why Global Listed Why Now? Why Cohen & Steers? Infrastructure? Essential services, unique Global policy imperative, Experienced, specialist global characteristics and downside private capital creating a investment team. Rigorous and protection valuation floor d
Slide 40: Get in touch
For personal use only 40 Get in touch invest@argoinfrastructure.com.au (08) 8210 9555 www.argoinfrastructure.com.au
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