Argo Global Listed Infrastructure Ltd. · ASX:ALI
Argo Global Listed Infrastructure — Investor Presentation (May 2024)
51 slides from Argo Global Listed Infrastructure's investor presentation, May 20, 2024
Slide 1: Shareholder information meetings
20 May 2024 Company Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000 For personal use only Shareholder information meetings Please find attached the presentation slides for the upcoming Shareholder Information Meetings of Argo Global Listed Infrastructure Limited (ASX: ALI) and Argo Invest
Slide 2: Information Meetings 2024
Information Meetings For personal use only 2024
Slide 3: Upcoming Meeting Dates
UPCOMING MEETING DATES For personal use only MELBOURNE ADELAIDE BRISBANE Mon 20 May Tues 21 May Wed 22 May 10 am 10 am 10 am Grand Hyatt Hotel Adelaide Convention Pullman King 123 Collins St Centre George Square Melbourne North Terrace Cnr Ann St & Roma St Adelaide Brisbane SYDNEY CANBERRA PERTH Thu
Slide 4: Disclaimer
DISCLAIMER 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 Investments Limited (ACN 007 For personal use only 519 520) and Argo Global Listed Infrastructure Limited (ACN 604 986 914). ASCO’
Slide 5: Our Agenda
OUR AGENDA 1. Meet the team 2. Share market over time For personal use only 3. About Argo Investments 4. Banking sector 5. Healthcare sector 6. Outlook 7. About Argo Infrastructure 8. Cohen & Steers 4
Slide 6: Representing Argo
REPRESENTING ARGO For personal use only JASON BEDDOW ANDY FORSTER COLIN WHITEHEAD PAUL FROST Managing Director Senior Investment Investment Analyst Investment Analyst Officer MEREDITH HEMSLEY LESLEY-MAY JOSEVSKI TYLER ROSENLICHT Communications Communications Portfolio Manager, Manager Officer Cohen
Slide 7: Share Market Over Time
SHARE MARKET OVER TIME S&P/ASX 200 & Accumulation Index Before, during and post-pandemic For personal use only Accumulation Index premium discount chart S&P/ASX 200 Index Share market reaches record high US Fed starts RBA pauses to raise rates raise rates First vaccine RBA starts to released raise r
Slide 8: Argo Investments Overview
ARGO INVESTMENTS OVERVIEW For personal use only
Slide 9: Overview
OVERVIEW Half-year Half-year earnings Interim dividend, fully per share franked per share For personal use only profit $125.3 million 16.5 cents 16.5 cents $137.0m in 2023 18.2c per share in 2023 16.5c per share in 2023 Dividend yield MER Total assets 5.7% 0.15% $7.1 billion Grossed up to include (M
Slide 10: Premium/Discount to NTA
PREMIUM/DISCOUNT TO NTA Share price premium/discount to NTA Over a 30-year time horizon For personal use only 20.0% 15.0% 10.0% premium discount chart 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Slide 11: Investment Portfolio
INVESTMENT PORTFOLIO Sector diversification Top 10 holdings For personal use only Macquarie Group 6.8% BHP 5.7% CSL 5.1% CBA 4.4% Wesfarmers 4.3% Rio Tinto 4.0% ANZ 3.2% Westpac 3.0% Santos 2.9% NAB 2.8% 10 Figure s a re a s a t 3 0 April 2024
Slide 12: The Shrinking Share Market
THE SHRINKING SHARE MARKET Change in market capitalisation of Australian share market On a net basis over 18 years For personal use only 11 S ource : Ma rque e Re s e a rch
Slide 13: Australian Banking Sector
AUSTRALIAN BANKING SECTOR For personal use only
Slide 14: Banks Remain Well Positioned
BANKS REMAIN WELL POSITIONED For personal use only Half year profit Half year profit Half year profit Half year profit Full year profit $3.3 billion $3.5 billion $5.0 billion $3.6 billion $3.5 billion down 16% down 13% down 3% down 7% down 32% Interim dividend Interim dividend Interim dividend Inter
Slide 15: Banks Outperform Market
BANKS OUTPERFORM MARKET S&P/ASX 200 &ASX-listed banks Financial year to date For personal use only Nab Westpac ANZ Commonwealth Bank Macquarie Group S&P/ASX 200 Index 14 S ource : Fa ct s e t , S &P.
Slide 16: Portfolio Movements
PORTFOLIO MOVEMENTS Recent purchases Recent sales For personal use only 15 S ince t he end of t he 2023 fina ncia l yea r.
Slide 17: Healthcare Performance
HEALTHCARE PERFORMANCE S&P/ASX 200 Index & Healthcare Sector 20-year performance For personal use only Healthcare sector S&P/ASX 200 Index 16 S ource : Fa ct s e t , S &P. b
Slide 18: Short-Term Performance
SHORT-TERM PERFORMANCE ASX-listed healthcare companies 1-year performance For personal use only S&P/ASX 200 Index Resmed CSL Ramsay Health Care Sonic Healthcare 17 S ource : Fa ct s e t , S &P. b
Slide 19: Sector Healthcare
For personal use only SECTOR HEALTHCARE
Slide 20: Demographic Tailwinds
DEMOGRAPHIC TAILWINDS US % share of total population by age For personal use only 75+ years 50-74 years 20-49 years 0-19 years 19 S ource : World Ba nk, Ma cqua rie Re s e a rch 2024 b
Slide 21: Healthcare Spend: % of GDP
HEALTHCARE SPEND: % OF GDP Healthcare expenditure as % of GDP Historical and forecast For personal use only United States OECD average Australia 20 S ource : World Ba nk, Ma cqua rie Re s e a rch, 2024. b
Slide 22: Healthcare Sector Profile
HEALTHCARE SECTOR PROFILE Services Infrastructure For personal use only Devices & Consumables Product Manufacture & Distribution 21
Slide 23: Sector Tailwinds & Headwinds
For personal use only SECTOR TAILWINDS & HEADWINDS 22
Slide 24: COVID Disruption
COVID DISRUPTION Industry winners Industry losers For personal use only 23
Slide 25: Post-COVID Dynamics
POST-COVID DYNAMICS Industry winners Industry losers For personal use only 24
Slide 26: Opportunities & Challenges
OPPORTUNITIES & CHALLENGES Long-term tailwinds Short-term challenges For personal use only 25
Slide 27: Looking Ahead
For personal use only LOOKING AHEAD
Slide 28: From Rate Cuts to Hikes?
FROM RATE CUTS TO HIKES? Forecast number of cuts To be made by the US Federal Reserve For personal use only 27 S ource : Bloombe rg Fina nce , J.P. Morga n fore ca s t s . b
Slide 29: US Election
US ELECTION Election betting averages Trump and Biden neck-and-neck For personal use only Donald Trump Joe Biden 28 S ource : Bloombe rg Fina nce , J.P. Morga n S t ra t e gic Re s e a rch, Re a lCle a r, Ga llup b
Slide 30: US Outlook Healthy
US OUTLOOK HEALTHY Consensus forecast earnings per share (EPS) growth For personal use only 29 S ource : Bloombe rg Fina nce b
Slide 31: Domestic Outlook Softer
DOMESTIC OUTLOOK SOFTER Consensus forecast earnings per share (EPS) growth For personal use only 2026 30 S ource : Bloombe rg Fina nce , J.P. Morga n fore ca s t s . b
Slide 32: Australian Consumers Gloomy
AUSTRALIAN CONSUMERS GLOOMY Consumer confidence For personal use only UK consumers US consumers Australian consumers 31 S ource : Bloombe rg Fina nce , J.P. Morga n S t ra t e gic Re s e a rch, Re a lCle a r. b
Slide 33: Argo Infrastructure Overview
ARGO INFRASTRUCTURE OVERVIEW For personal use only
Slide 34: Overview
OVERVIEW ASX code Dividend yield Consecutive fully For personal use only franked dividends ALI 5.9% 12 Grossed up to include Dividends paid every year franking credits since inception Total assets Manager Portfolio Manager $410 million Argo Cohen & $434m in 2023 Investments Steers 33 Figure s a re a
Slide 35: Key Considerations for Investors
KEY CONSIDERATIONS FOR INVESTORS For personal use only 34
Slide 36: The Investment Case for Global Listed Infrastructure
THE INVESTMENT CASE FOR GLOBAL LISTED INFRASTRUCTURE For personal use only 35
Slide 37: Infrastructure Is Essential for Economic Growth
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 Wireless t
Slide 38: Why Infrastructure Now
WHY INFRASTRUCTURE NOW For personal use only 37
Slide 39: Relative Performance of Infrastructure in Various Regimes
RELATIVE PERFORMANCE OF INFRASTRUCTURE IN VARIOUS GROWTH, INFLATION AND RATES REGIMES For personal use only 38 38 At March 31, 2024. Source Cohen and Steers proprietary analysis. Surprise compared to expectations 12 months prior, based on the Philadelphia Fed Survey of Professional Forecasters (SPF)
Slide 40: Current Infrastructure Valuations Are Attractive
CURRENT INFRASTRUCTURE VALUATIONS ARE ATTRACTIVE RELATIVE TO GLOBAL EQUITIES For personal use only 39 39 At March 31, 2024. Source: MSCI, FTSE, FactSet and Cohen & Steers Data quoted represents past performance, which is no guarantee of future results.
Slide 41: Record Dry Powder Creating a Valuation Floor
RECORD DRY POWDER CREATING A VALUATION FLOOR For personal use only 40 40 At March 31, 2024. Source: Preqin, Goldman Sachs and Cohen & Steers.
Slide 42: Key Themes Within Listed Infrastructure Today
KEY THEMES WITHIN LISTED INFRASTRUCTURE TODAY For personal use only 41 41 At March 31, 2024.
Slide 43: Higher Power Demand Can Benefit Regulated Utilities
HIGHER POWER DEMAND CAN BENEFIT REGULATED UTILITIES For personal use only 42 42 At March 31, 2024. Source: McKinsey Energy Solutions Global Energy Perspective, Cohen & Steers, EIA.
Slide 44: Marine Ports Are Benefiting from Increased Volumes
MARINE PORTS ARE BENEFITING FROM INCREASED VOLUMES AND THE REROUTING OF GLOBAL TRADE FLOWS For personal use only 43 43 At March 31, 2024. Source: Cohen & Steers.
Slide 45: Portfolio in Action
PORTFOLIO IN ACTION For personal use only 44 44 At March 31, 2024. Source: Morningstar, Cohen & Steers.
Slide 46: Cohen & Steers' Competitive Advantages
COHEN & STEERS’ COMPETITIVE ADVANTAGES For personal use only 45
Slide 47: Top Holdings
TOP HOLDINGS For personal use only 46 46 At April 30, 2024.
Slide 48: Cohen & Steers Team
COHEN & STEERS TEAM For personal use only 47 47 At March 31, 2024. Years with CNS/Years of experience.
Slide 49: Summary
For personal use only 48 SUMMARY 48
Slide 50: Legal Notes
LEGAL NOTES This material is provided to qualified institutional and professional investors or their advisors only for informational purposes and reflects prevailing conditions and our judgment as of this date, which are subject to change. It does not constitute investment advice or a recommendation
Slide 51: Find out more
Find out more argoinvestments.com.au argoinfrastructure.com.au For personal use only 52
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