Argo Global Listed Infrastructure Ltd. · ASX:ALI
Argo Global Listed Infrastructure — Shareholder Meeting (October 2017)
30 slides from Argo Global Listed Infrastructure's shareholder meeting presentation, Oct 23, 2017
Slide 1: Welcome to the 2017 Annual General Meeting
For personal use only 1 Welcome to the 2017 Annual General Meeting
Slide 2: AGLI investment objective
2 “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 3: Benchmark v S&P ASX 200 Acc. Index since inception
3 Benchmark v S&P ASX 200 Acc. Index since inception For personal use only 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% 06/15 08/15 11/15 02/16 05/16 08/16 11/16 02/17 05/17 08/17 -4.0% -8.0% -12.0% Benchmark S&P ASX 200 Accumulation Index
Slide 4: Summary of financial results for the year ended June 17
4 Summary of financial results for the year ended 30 June 2017 For personal use only 2017 2016 Profit $7.8 million $9.6 million Total dividends per share 3.5 cents 3.0 cents Net tangible asset backing (NTA) $2.06 $2.03 per share Number of shareholders 10,442 11,100
Slide 5: Total Returns to September 2017
5 Total Returns to 30 September 2017 For personal use only 9.0% 8.0% 7.7% 7.1% 7.0% 6.8% 6.3% 6.0% 5.3% 5.0% 4.0% 3.7% 3.0% 2.0% 1.0% 0.0% calendar year to date since inception (p.a.) NTA Portfolio Benchmark
Slide 6: Total Returns to September 2017
6 Total Returns to 30 September 2017 For personal use only 10.0% 9.0% 8.7% 8.1% 8.0% 7.7% 6.8% 7.0% 6.3% 6.5% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.6% 0.7% 0.5% 0.0% 3 months Calendar year to date 1 year NTA Portfolio Benchmark
Slide 7: Reducing the discount to NTA
7 Reducing the discount to NTA For personal use only • Increased marketing activities • Research coverage from brokers and ratings agencies • Capital management initiatives • Shareholder and investor communications
Slide 8: Communication and marketing
8 Communication and marketing For personal use only WEBSITE argoinfrastructure.com.au INDEPENDENT Lonsec Research Bell Potter Securities RESEARCH Independent Investment Research EMAIL Monthly NTA & investment updates Quarterly reports ALERTS Discussion papers Result announcements
Slide 9: Argo Global Listed Infrastructure Limited
For personal use only 9 Argo Global Listed Infrastructure Limited Robert Becker—Senior Vice President, Portfolio Manager, Cohen & Steers
Slide 10: Key Considerations for Investors
10 Key Considerations for Investors For personal use only Why Global Listed Why Now? Why Active Management? Infrastructure?
Slide 11: Global Listed Infrastructure and MLP Team
11 Global Listed Infrastructure and MLP Team Joseph Harvey, President & CIO For personal use only 25/30 PORTFOLIO MANAGERS Robert Becker Ben Morton Co-Head, Portfolio Manager Co-Head, Portfolio Manager 14/22 14/19 Tyler Rosenlicht(1) Portfolio Manager 5/8 RESEARCH ANALYSTS & ASSOCIATES Quynh Dang Gr
Slide 12: Infrastructure is the Foundation of Society
Infrastructure is the Foundation of Society, 12 Providing Essential Public Services 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 Midstream Energy Utilities Comm
Slide 13: Consistent Cash Flow Growth Across Market Cycles
13 Consistent Cash Flow Growth Across Market Cycles For personal use only Annual Cash Flow Growth Infrastructure (1) Global Equities (2) 45 35.7 Annual EBITDA Growth (%) 35 25 20.3 Avg. Growth (%) Std. Dev. (%) 13.5 13.0 12.2 13.9 Global Global 15 9.1 9.9 9.6 9.8 9.6 9.0 9.4 10.0 9.6 8.5 9.2 6.8 8.1
Slide 14: Infrastructure Offers a Compelling Performance Profile
14 Infrastructure Offers a Compelling Performance Profile For personal use only Global listed infrastructure has generally provided competitive returns, downside protection, little overlap and lower volatility than equities At September 30, 2017. There is no guarantee that any historical trend illus
Slide 15: Calls for Infrastructure Spending Are Growing Louder
15 Calls for Infrastructure Spending Are Growing Louder For personal use only New York City area commuters start Summer of Hell Penn Station commuters file lawsuit against —(USA Today, June 2017) MTA, LIRR —(New York Post, June 2017) Blackstone to Launch $40 Billion Infrastructure Investment Decades
Slide 16: Potential Impact of President Trump's Proposed U.S. Infrastructure Plan
16 Potential Impact of President Trump’s Proposed U.S. Infrastructure Plan For personal use only • Fiscal stimulus packages specifically targeting infrastructure—combined with deteriorating service quality and stretched municipal budgets—should drive a longer-term focus on more efficient private sec
Slide 17: Infrastructure Investment Is a Global Opportunity
17 Infrastructure Investment Is a Global Opportunity For personal use only China North America “One belt one road” strategy In 2016 the Sabine Pass Europe expected to result in acquisitions Terminal in Louisiana M&A / asset sales and of overseas infrastructure assets became the first operating poten
Slide 18: Record Dry Powder Creating a Valuation Floor
18 Record Dry Powder Creating a Valuation Floor For personal use only Private Infrastructure Dry Powder(1) 180 152 150 Over $150B in assets on 109 105 109 120 84 the sidelines causing 74 ($B’s) 90 65 66 64 68 private investors to chase 60 37 15 a limited number of deals, 30 0 with increased competit
Slide 19: Listed Infrastructure Acceptance is Growing
19 Listed Infrastructure Acceptance is Growing For personal use only Global Listed Infrastructure Universe(1) Total AUM (A$ billions) $120 100.2 $100 91.5 $80 73.3 67.3 $60 44.8 $40 25.7 21.1 16.8 $20 $0 2010 2011 2012 2013 2014 2015 2016 6/30/2017 • Global Listed Infrastructure has passed several m
Slide 20: Sensitivity of Revenue Drivers Highlights Need for Specialist Team
Sensitivity of Revenue Drivers Highlights Need for 20 Specialist Team and Research-Driven Approach For personal use only Infrastructure Subsector Sensitivity Framework Marine Ports Airports Economic Sensitivity Toll Roads Railways Pipelines Water Towers Utilities Satellites Inflation Sensitivity At
Slide 21: Performance Dispersion Among Subsectors
Performance Dispersion Among Subsectors 21 Creates Potential Opportunity for Active Managers For personal use only 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 % % % % % % % % % % % Marine Ports Midstream Railways Marine Ports Marine Ports Midstream Communications Toll Roads Water Airports
Slide 22: Global Listed Infrastructure Performance Attribution
22 Global Listed Infrastructure Performance Attribution Relative to the Blended Benchmark1 , Since Inception For personal use only • July 2015: Strong market performance during first month of launch while we were investing cash proceeds negatively impacted performance. • 2H15: Stock selection in Mid
Slide 23: Performance Attribution, Calendar Year to Date
23 Global Listed Infrastructure Performance Attribution Relative to the Blended Benchmark1, Calendar Year to Date For personal use only Total Relative Performance for the Period: +72 Basis Points Contributors Basis Points Comments Electric +95 bps No allocations to Dominion Resources, The Southern C
Slide 24: Capitalizing on Secular Themes: Capital Formation
24 Capitalizing on Secular Themes: Capital Formation For personal use only NEE Benchmark 160 120 80 40 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 NextEra Energy (NEE)—Electric Utilities Overview • Largest owner and operator of wholesale wind and solar generation in the United Sta
Slide 25: Capitalizing on Secular Themes: Digital Age
25 Capitalizing on Secular Themes: Digital Age For personal use only AMT Benchmark 160 120 80 40 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 American Tower Corporation (AMT) —Communications (Towers) • Leading global operator of wireless telecommunications towers Overview • Leases
Slide 26: Capitalizing on Secular Themes: Privatization
26 Capitalizing on Secular Themes: Privatization For personal use only AENA Benchmark 360 280 200 120 40 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 AENA (AENA)—Airports • Spanish airport network operator. Overview • World’s number one airport operator with 245 million passengers
Slide 27: Macro Outlook
27 Macro Outlook For personal use only • Global growth likely to accelerate to 3.5% in 2017, strongest growth in seven years • U.S. GDP growth and corporate profits improving – Government spending no longer a drag on growth, now a boost – Wage growth and consumer spending gaining momentum – U.S. dol
Slide 28: Key Takeaways
28 Key Takeaways For personal use only Why Global Listed Infrastructure? Why Now? Why Active Management? Essential services, unique characteristics and Global policy imperative, private capital Inefficient, specialized asset class demands a downside protection creating a valuation floor rigorous bot
Slide 29: Legal Notes
29 Legal Notes For personal use only 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 a
Slide 30: Global Listed Infrastructure
30 Global Listed Infrastructure Ms | Mem E,r.,l—Eel—Eleeeyee,lC—=—Eeeeeeles,lC—eeeeeee,l,lC—eeeeeeee,e,lC—eeeeee,l,,lC—=Eeeeeee,,,tlC—=E=Ee,,,tlC a EE=—:—‘(iti—TTES
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