Argo Global Listed Infrastructure Ltd. · ASX:ALI

Argo Global Listed Infrastructure — Shareholder Meeting (October 2019)

37 slides from Argo Global Listed Infrastructure's shareholder meeting presentation, Oct 21, 2019

  1. Slide 1: 2019 Annual General Meeting

    For personal use only 2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019

  2. Slide 2: Disclaimer

    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 requ

  3. Slide 3: Full Year Profit for Year Ended June 2019

    FULL YEAR PROFIT FOR YEAR ENDED 30 JUNE 2019 For personal use only $44.9m +177% 6.5c annual dividends profit increase in profit fully franked +22.7% 4.0c +28.7% Fully franked final portfolio return dividend share price return ACN 604 986 914 Argo Global Listed Infrastructure Limited 3

  4. Slide 4: Annual Dividend History Cents per Share

    ANNUAL DIVIDEND HISTORY CENTS PER SHARE For personal use only 6.0 5.0 1.7 4.0 3.0 0.9 0.9 2.0 4.0 2.5 2.5 2.5 2.5 1.0 1.0 1.25 0.5 0.0 FY16 FY17 FY18 FY19 interim final franking credits ACN 604 986 914 Argo Global Listed Infrastructure Limited 4

  5. Slide 5: Investment Performance to September 2019

    INVESTMENT PERFORMANCE TO 30 SEPTEMBER 2019 For personal use only 27.2% 26.1% 24.5% 19.8% 18.6% 17.1% 15.7% 14.3% 13.2% 12.5% 12.5% 11.9% 11.9% 11.7% 9.0% 5.75% 1 year 2 years (pa) 3 yr (pa) since inception (pa) Share price Portfolio Benchmark S&P/ASX 200 acc. ACN 604 986 914 Argo Global Listed Infr

  6. Slide 6: Narrowing the Share Price Discount to NTA

    NARROWING THE SHARE PRICE DISCOUNT TO NTA For personal use only 4.0% 0.0% -4.0% -8.0% -12.0% -16.0% Share buy-back commenced – April 2018 -20.0% 2015 2016 2017 2018 2019 ACN 604 986 914 Argo Global Listed Infrastructure Limited 6

  7. Slide 7: Total Return Since Inception Based on $10,000 Invested

    TOTAL RETURN SINCE INCEPTION BASED ON $10,000 INVESTED For personal use only $12,893 + franking credits + dividends paid $12,683 Share price $11,650 2015 2016 2017 2018 2019 at 30 September 2019 ACN 604 986 914 Argo Global Listed Infrastructure Limited 7

  8. Slide 8: Positive Outlook

    For personal use only POSITIVE OUTLOOK 8

  9. Slide 9: Gary Simon 1954 – 2019

    GARY SIMON 1954 – 2019 For personal use only NON-EXECUTIVE DIRECTOR JULY 2015 – SEPTEMBER 2019 ACN 604 986 914 Argo Global Listed Infrastructure Limited 9

  10. Slide 10: Argo Infrastructure opportunity

    Argo Infrastructure opportunity For personal use only Global Specialist global fund Access infrastructure diversification manager opportunities Proven investment Enhance risk-adjusted Administratively simple approach returns global investing 10

  11. Slide 11: Jason Beddow, Managing Director

    For personal use only Jason Beddow Managing Director

  12. Slide 12: Listed Infrastructure: Aust vs World

    LISTED INFRASTRUCTURE: AUST VS WORLD For personal use only NUMBER OF COMPANIES COMBINED MARKET CAPITALISATION 350 Australia $72b World $2.4t 13 Australia World ACN 604 986 914 Argo Global Listed Infrastructure Limited 12

  13. Slide 13: Diversified Infrastructure Exposure

    DIVERSIFIED INFRASTRUCTURE EXPOSURE For personal use only GEOGRAPHIC DIVERSIFICATION SUBSECTOR DIVERSIFICATION Electric 36.5% United States 57.5%^ Midstream Energy 13.5% Europe 8.3% Communications 13.3% Canada 7.9% Railways 8.1% Asia Pacific 6.8% Airports 7.3% Gas Distribution 6.9% Australia 6.5% To

  14. Slide 14: Global Listed Infrastructure Assets Under Management Worldwide

    GLOBAL LISTED INFRASTRUCTURE ASSETS UNDER MANAGEMENT WORLDWIDE For personal use only ACN 604 986 914 Argo Global Listed Infrastructure Limited 14

  15. Slide 15: Portfolio Manager

    PORTFOLIO MANAGER For personal use only Founded 1986 Headquartered New York Exchange listed NYSE (CNS) Ben Morton Tyler Rosenlicht Bob Becker Senior Portfolio Manager, Portfolio Manager Portfolio Manager Employees 300+ Head of Global Infrastructure Funds managed A$80b GLI funds managed A$10b Global

  16. Slide 16: Argo Infrastructure opportunity

    Argo Infrastructure opportunity For personal use only Global Specialist global fund Access infrastructure diversification manager opportunities Proven investment Enhance risk-adjusted Administratively simple approach returns global investing 16

  17. Slide 17: Robert Becker, Cohen & Steers Portfolio Manager

    For personal use only Robert Becker Cohen & Steers Portfolio Manager

  18. Slide 18: Key Considerations for Investors

    KEY CONSIDERATIONS FOR INVESTORS For personal use only Why Global Listed Why Why Now? Infrastructure? Cohen & Steers? ACN 604 986 914 Argo Global Listed Infrastructure Limited 18

  19. Slide 19: 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

  20. Slide 20: Macroeconomic Impact on Infrastructure Returns

    MACROECONOMIC IMPACT ON INFRASTRUCTURE RETURNS For personal use only Relative Returns vs. Equities across Business Cycles Average Excess Return Ann. Median Excess Return Ann. Hit Rate of Outperformance 6% 70% 5% 5% 4% 60% Infrastructure Performance 3% 3% Relative to Equities 2% 2% Hit Rate 2% 50% 0%

  21. Slide 21: Defensive in Times of Market Stress

    DEFENSIVE IN TIMES OF MARKET STRESS For personal use only Scenario Analysis Global Listed Global Relative Infrastructure Equities Return Start Date End Date (%) (%) (%) Note 1 2/23/2007 3/5/2007 -1.29 -3.79 2.50 February Correction. 4th Quarter correction, US Economic data slows; banking/mortgage cr

  22. Slide 22: Record Dry Powder Creating a Valuation Floor

    RECORD DRY POWDER CREATING A VALUATION FLOOR For personal use only Private Infrastructure Dry Powder 240 210 210 188 180 165 149 ($Billions) 150 120 109 105 107 87 90 67 68 73 76 66 60 37 30 15 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 Over $210B in assets on th

  23. Slide 23: Why Listed Infrastructure Now

    WHY LISTED INFRASTRUCTURE NOW For personal use only Compelling Secular Case Strong Fundamentals Attractive Valuations Supportive Market Environment ACN 604 986 914 Argo Global Listed Infrastructure Limited 23

  24. Slide 24: Cohen & Steers Global Listed Infrastructure Strategy

    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 withou

  25. Slide 25: Top Holdings

    TOP HOLDINGS For personal use only Top Ten Absolute Positions Portfolio % NextEra Energy Inc. 6.5 American Tower Corporation 3.4 Crown Castle International Corp. 3.4 Transurban Group 3.2 SBA Communications Corporation 3.1 Firstenergy Corp. 3.1 Alliant Energy Corporation 3.0 American Water Works Comp

  26. Slide 26: Key Holding – Towers

    KEY HOLDING – TOWERS For personal use only American Tower • Leading global independent tower company with 40,000 towers in the US and 130,000 towers in other international markets Overview • Stable earnings with high growth due to 5G deployments and the global emergence of the independent tower busi

  27. Slide 27: Key Holding – Railways

    KEY HOLDING – RAILWAYS For personal use only Norfolk Southern • One of America’s premier railroads with a transport network connecting all major ports in the Eastern US Overview • Strong earnings growth driven by adoption of best practices of the world’s leading logistics management cos Portfolio We

  28. Slide 28: Key Holding – Diversified

    KEY HOLDING – DIVERSIFIED For personal use only Ørsted Energy • The world’s leading offshore wind farm developer and operator Overview • Strong growth in offshore wind driven by improving economics and global decarbonization Portfolio Weight • 0.8% At 30 September 2019. ACN 604 986 914 Argo Global L

  29. Slide 29: Infrastructure Performance Remains Strong Following Significant Downside Protection

    INFRASTRUCTURE PERFORMANCE REMAINS STRONG FOLLOWING SIGNIFICANT DOWNSIDE PROTECTION IN LATE 2018 For personal use only Infrastructure Performance vs. Global Equities FTSE Global Core Infrastructure 50/50 Index 125 MSCI World Index 120 18.4% Cumulative Total Return Index Level (Price Only Rebased to

  30. Slide 30: Portfolio Performance

    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 30% 28.4 27.2 26.1 26.0 25% 20% 15.8 15% 14.3 11.6 11.0 10% 7.7 6.5 5% 0% Q3 2019 YTD 2019 1 Year 3 Years Since Inception At 30 Sep

  31. Slide 31: Portfolio Attribution

    PORTFOLIO ATTRIBUTION For personal use only Total Relative Performance for 1 Year: +112 Basis Points Contributors Basis Points Comments Overweight SBA Communications Corp. and American Tower Corp.; out of index allocation to Communications +198 CyrusOne Inc. Railways +73 Overweight RUMO; no allocati

  32. Slide 32: Global Listed Infrastructure Investment Team

    GLOBAL LISTED INFRASTRUCTURE INVESTMENT TEAM For personal use only PORTFOLIO MANAGERS Ben Morton Senior Portfolio Manager, Head of Global Listed Infrastructure 16/21 Robert Becker Tyler Rosenlicht Portfolio Manager, Global Listed Infrastructure Portfolio Manager, Head of Midstream & MLPs 16/24 7/10

  33. Slide 33: Cohen & Steers' Competitive Advantages

    COHEN & STEERS’ COMPETITIVE ADVANTAGES For personal use only Experienced Global Cycle-Tested Record Investment Team Dedicated Real Assets Substantial Market Position Manager Unique and Rigorous Alignment of Interest Investment Process ACN 604 986 914 Argo Global Listed Infrastructure Limited 33

  34. Slide 34: Global Listed Infrastructure Outlook

    GLOBAL LISTED INFRASTRUCTURE OUTLOOK For personal use only Utilities Midstream Energy Transportation Telecommunications ACN 604 986 914 Argo Global Listed Infrastructure Limited 34

  35. Slide 35: Summary

    SUMMARY For personal use only Why Invest in Global Listed Infrastructure Why Cohen & Steers • Massive infrastructure investments are needed globally • Cohen & Steers is a pioneer and leader in the listed real assets space; listed infrastructure is core strategy • Historically compelling risk-adjuste

  36. Slide 36: ALI's investment objective

    For personal use only “ALI’s objective is to provide a total return for long-term investors consisting of capital growth and dividend income, from a global listed infrastructure portfolio which can provide diversification benefits for Australian investors.” 36

  37. Slide 37: Get in touch

    Get in touch For personal use only invest@argoinfrastructure.com.au (08) 8210 9555 www.argoinfrastructure.com.au 37

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