2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019 DISCLAIMER This - - PowerPoint PPT Presentation

▶
2019 annual general meeting
SMART_READER_LITE
LIVE PREVIEW

2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019 DISCLAIMER This - - PowerPoint PPT Presentation

Oct 28, 2022 220 likes •599 views

2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019 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 Global Listed Infrastructure

slide-1
SLIDE 1

2019 ANNUAL GENERAL MEETING

21 OCTOBER 2019

slide-2
SLIDE 2

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 request or at www.argoinfrastructure.com.au. This presentation contains unsolicited general information only, which does not take into account the particular

  • bjectives, financial situation or needs of any individual investor. It is not intended to be passed on or relied upon as a

recommendation by any person. Before making any decision about the information provided, an investor should consult their independent adviser and consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Past performance may not be indicative of future performance and no guarantee of future returns is implied or given. While all reasonable care has been taken when preparing this presentation, no responsibility is accepted for any loss, damage, cost or expense resulting directly or indirectly from any error, omission or misrepresentation in the information presented.

2

Argo Global Listed Infrastructure Limited

ACN 604 986 914

DISCLAIMER

slide-3
SLIDE 3

3

FULL YEAR PROFIT FOR YEAR ENDED 30 JUNE 2019

$44.9m

profit

+177%

increase in profit

+22.7%

portfolio return

+28.7%

share price return

6.5c

annual dividends fully franked

Argo Global Listed Infrastructure Limited

ACN 604 986 914

4.0c

Fully franked final dividend

slide-4
SLIDE 4

4

ANNUAL DIVIDEND HISTORY CENTS PER SHARE

ACN 604 986 914

Argo Global Listed Infrastructure Limited

0.9 0.9 1.7 0.5 1.0 1.25 2.5 2.5 2.5 2.5 4.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 FY16 FY17 FY18 FY19

interim final franking credits

slide-5
SLIDE 5

5

INVESTMENT PERFORMANCE TO 30 SEPTEMBER 2019

Argo Global Listed Infrastructure Limited

ACN 604 986 914

24.5% 18.6% 12.5% 5.75% 27.2% 19.8% 15.7% 11.9% 26.1% 17.1% 14.3% 11.7% 12.5% 13.2% 11.9% 9.0%

1 year 2 years (pa) 3 yr (pa) since inception (pa)

Share price Portfolio Benchmark S&P/ASX 200 acc.

slide-6
SLIDE 6

6

NARROWING THE SHARE PRICE DISCOUNT TO NTA

Argo Global Listed Infrastructure Limited

ACN 604 986 914

  • 20.0%
  • 16.0%
  • 12.0%
  • 8.0%
  • 4.0%

0.0% 4.0% 2015 2016 2017 2018 2019

Share buy-back commenced – April 2018

slide-7
SLIDE 7

7

TOTAL RETURN SINCE INCEPTION BASED ON $10,000 INVESTED

Argo Global Listed Infrastructure Limited

ACN 604 986 914

$12,893 $12,683 $11,650

2015 2016 2017 2018 2019

+ franking credits + dividends paid Share price

at 30 September 2019

slide-8
SLIDE 8

8

POSITIVE OUTLOOK

slide-9
SLIDE 9

9

GARY SIMON 1954 – 2019

NON-EXECUTIVE DIRECTOR

JULY 2015 – SEPTEMBER 2019

Argo Global Listed Infrastructure Limited

ACN 604 986 914

slide-10
SLIDE 10

10

Specialist global fund manager Access infrastructure

  • pportunities

Proven investment approach

Global diversification

Administratively simple global investing Enhance risk-adjusted returns

Argo Infrastructure opportunity

slide-11
SLIDE 11

Jason Beddow Managing Director

slide-12
SLIDE 12

12

LISTED INFRASTRUCTURE: AUST VS WORLD

Austr tralia ia World ld

$2.4t $72b $72b

Austr tralia ia World ld

350 350

NUMBER OF COMPANIES

13 13

COMBINED MARKET CAPITALISATION

Argo Global Listed Infrastructure Limited

ACN 604 986 914

slide-13
SLIDE 13

SUBSECTOR DIVERSIFICATION

13

DIVERSIFIED INFRASTRUCTURE EXPOSURE

GEOGRAPHIC DIVERSIFICATION

Argo Global Listed Infrastructure Limited

ACN 604 986 914

United States 57.5%^ Europe 8.3% Canada 7.9% Asia Pacific 6.8% Australia 6.5% Japan 5.1% Latin America 4.9% United Kingdom 2.0% Cash 1.0% Electric 36.5% Midstream Energy 13.5% Communications 13.3% Railways 8.1% Airports 7.3% Gas Distribution 6.9% Toll Roads 6.8% Water 5.5% Cash 1.0% Diversified 0.8% Marine Ports 0.3%

^Many large infrastructure companies are listed in the United States, although their operations and earnings are often global.

slide-14
SLIDE 14

14

GLOBAL LISTED INFRASTRUCTURE ASSETS UNDER MANAGEMENT WORLDWIDE

ACN 604 986 914

Argo Global Listed Infrastructure Limited

slide-15
SLIDE 15

15

PORTFOLIO MANAGER

Founded 1986 Headquartered New York Exchange listed NYSE (CNS) Employees 300+ Funds managed A$80b GLI funds managed A$10b Global network of investment professionals in New York, Tokyo, Hong Kong and London

Ben Morton Senior Portfolio Manager, Head of Global Infrastructure Bob Becker Portfolio Manager

cohenandsteers.com

Tyler Rosenlicht Portfolio Manager Argo Global Listed Infrastructure Limited

ACN 604 986 914

slide-16
SLIDE 16

16

Specialist global fund manager Access infrastructure

  • pportunities

Proven investment approach

Global diversification

Administratively simple global investing Enhance risk-adjusted returns

Argo Infrastructure opportunity

slide-17
SLIDE 17

Robert Becker Cohen & Steers Portfolio Manager

slide-18
SLIDE 18

18

KEY CONSIDERATIONS FOR INVESTORS

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Why Global Listed Infrastructure? Why Now? Why Cohen & Steers?

slide-19
SLIDE 19

19

INFRASTRUCTURE IS ESSENTIAL FOR ECONOMIC GROWTH

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Characteristics of Global Listed Infrastructure

  • Long-lived real assets
  • Often regulated or concession-based
  • High barriers to entry
  • Inflation-linked pricing

Midstream Energy

Energy transportation, gathering & processing, storage

Utilities

Electricity, natural gas, water and renewables

Communications

Wireless towers, satellites, and data centers

Transportation

Toll roads, marine ports, railways and airports

slide-20
SLIDE 20

20

MACROECONOMIC IMPACT ON INFRASTRUCTURE RETURNS

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Relative Returns vs. Equities across Business Cycles

Infrastructure Performance Relative to Equities

Hit Rate

2%

  • 1%

5% 5% 2%

  • 2%

3% 3%

20% 30% 40% 50% 60% 70%

  • 4%
  • 2%

0% 2% 4% 6% Early Cycle Mid Cycle Late Cycle Recession

Average Excess Return Ann. Median Excess Return Ann. Hit Rate of Outperformance

At 31 December 2018.

slide-21
SLIDE 21

21

DEFENSIVE IN TIMES OF MARKET STRESS

ACN 604 986 914

Argo Global Listed Infrastructure Limited

At 30 September 2019 in A$. Returns are stated gross of fees and are based on a representative portfolio.

Scenario Analysis

Start Date End Date Global Listed Infrastructure (%) Global Equities (%) Relative Return (%) Note 1 2/23/2007 3/5/2007

  • 1.29
  • 3.79

2.50 February Correction. 2 10/11/2007 1/22/2008

  • 2.16
  • 13.09

10.93 4th Quarter correction, US Economic data slows; banking/mortgage crisis grows. 3 9/14/2008 3/9/2009

  • 16.85
  • 29.74

12.89 Global Financial Crisis. 4 5/3/2010 5/25/2010 0.32

  • 0.77

1.09 May 2010 Correction. Eur debt crisis; Monetary/Resi tightening in China; Japan falls on rising Yen. 5 7/26/2011 8/8/2011

  • 7.99
  • 10.34

2.35 August 2011 Correction. Economic slowdown; Euro Crisis Flare-up; Debt ceiling debate; UST downgrade. 6 5/21/2013 6/20/2013

  • 2.32
  • 0.19
  • 2.13

Taper Tantrum - Fed suggests possibly reducing monetary expansion; 10 Yr. U.S. T-Bond moves up from 1.93% to 2.42%. 7 5/19/2015 2/11/2016

  • 2.96
  • 7.93

4.97 High Yield Bond Spreads Widen (+385 bps), USD Strengthens and Oil moves to lower ($58 to $26); Russell 1000 Growth outperforms 1000 Value by 4.6%. 8 1/26/2018 2/8/2018

  • 4.18
  • 5.56

1.38 Russell 1000 Growth outperforms 1000 Values by 3.5%; Yield on 10 Year U.S. T-Bond moves higher from 2.25% to 2.46% (+21 bps). 9 9/27/2018 12/24/2018

  • 3.48
  • 15.36

11.88 4Q 2019 Market Correction; Economic slowdown; continued trade tensions, falling oil prices, rising political disruption around the world. Average Relative Outperformance 5.10

slide-22
SLIDE 22

22

RECORD DRY POWDER CREATING A VALUATION FLOOR

ACN 604 986 914

Argo Global Listed Infrastructure Limited

15 37 66 67 68 73 87 76 109 105 107 149 165 188 210

30 60 90 120 150 180 210 240 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 ($Billions)

Private Infrastructure Dry Powder Over $210B in assets on the sidelines causing private investors to chase a limited number of deals, with increased competition driving down returns

At 30 September 2019.

slide-23
SLIDE 23

23

WHY LISTED INFRASTRUCTURE NOW

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Compelling Secular Case Strong Fundamentals Attractive Valuations Supportive Market Environment

slide-24
SLIDE 24

24

COHEN & STEERS GLOBAL LISTED INFRASTRUCTURE STRATEGY

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Objective

  • Maximize total return with a balance of capital appreciation and income
  • Outperform benchmark

Philosophy

  • Returns are generally driven by underlying asset values
  • Access to a diversified portfolio of infrastructure without committing high levels
  • f capital needed for private investments
  • Inefficient markets provide opportunities for active managers to add value
  • Management teams able to create value beyond the underlying assets

Approach

  • Combines proprietary top-down, macro-level sector and country analysis and

bottom-up, company-level research

  • Diversification within a portfolio by sub-sector and geographic region
slide-25
SLIDE 25

25

TOP HOLDINGS

ACN 604 986 914

Argo Global Listed Infrastructure Limited

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 Company Inc. 2.9 Norfolk Southern Corporation 2.7 Enbridge Inc. 2.7 Total 34.2

At 30 September 2019.

Top Ten Absolute Positions

slide-26
SLIDE 26

26

KEY HOLDING – TOWERS

ACN 604 986 914

Argo Global Listed Infrastructure Limited

American Tower

Overview

  • Leading global independent tower company with 40,000 towers in the US

and 130,000 towers in other international markets

  • Stable earnings with high growth due to 5G deployments and the global

emergence of the independent tower business model Portfolio Weight • 3.4%

At 30 September 2019.

slide-27
SLIDE 27

27

KEY HOLDING – RAILWAYS

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Norfolk Southern

Overview

  • One of America’s premier railroads with a transport network connecting

all major ports in the Eastern US

  • Strong earnings growth driven by adoption of best practices of the

world’s leading logistics management cos Portfolio Weight • 2.7%

At 30 September 2019.

slide-28
SLIDE 28

28

KEY HOLDING – DIVERSIFIED

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Ørsted Energy

Overview

  • The world’s leading offshore wind farm developer and operator
  • Strong growth in offshore wind driven by improving economics and global

decarbonization Por

  • rtfolio Wei

eight • 0.8%

At 30 September 2019.

slide-29
SLIDE 29

29

INFRASTRUCTURE PERFORMANCE REMAINS STRONG FOLLOWING SIGNIFICANT DOWNSIDE PROTECTION IN LATE 2018

ACN 604 986 914

Argo Global Listed Infrastructure Limited

At 30 September 2019 in A$.

Infrastructure Performance vs. Global Equities

80 85 90 95 100 105 110 115 120 125 30/09/2018 31/10/2018 30/11/2018 31/12/2018 31/01/2019 28/02/2019 31/03/2019 30/04/2019 31/05/2019 30/06/2019 31/07/2019 31/08/2019 30/09/2019

Index Level (Price Only Rebased to 100)

FTSE Global Core Infrastructure 50/50 Index MSCI World Index 1.9% Cumulative Total Return 18.4% Cumulative Total Return

slide-30
SLIDE 30

30

PORTFOLIO PERFORMANCE

ACN 604 986 914

Argo Global Listed Infrastructure Limited

7.7 28.4 27.2 15.8 11.6 6.5 26.0 26.1 14.3 11.0

0% 5% 10% 15% 20% 25% 30%

Q3 2019 YTD 2019 1 Year 3 Years Since Inception Argo Global Listed Infrastructure Limited Linked FTSE Global Core Infrastructure 50/50 Net Tax Index

Total Returns (%) in A$

At 30 September 2019. Returns are stated gross of fees. Periods greater than one year are annualized.

slide-31
SLIDE 31

31

PORTFOLIO ATTRIBUTION

ACN 604 986 914

Argo Global Listed Infrastructure Limited Contributors Basis Points Comments Communications +198 Overweight SBA Communications Corp. and American Tower Corp.; out of index allocation to CyrusOne Inc. Railways +73 Overweight RUMO; no allocation to CSX Corp. and Canadian National Railway Airports +66 No allocation to Grupo Aeroportuario De Sur-B and Beijing Capital International Airport Detractors Basis Points Comments Midstream

  • 212

Out of index allocation to Cheniere Energy Inc. and Targa Resources Corp. Toll Roads

  • 137

Out of index allocation to Eiffage SA; overweight Aleatica Sab de CV

At 30 September 2019. Returns are stated gross of fees. Argo Global Listed Infrastructure Limited portfolio vs. the FTSE Global Core Infrastructure 50/50 Net Tax Index

Total Relative Performance for 1 Year: +112 Basis Points

slide-32
SLIDE 32

32

GLOBAL LISTED INFRASTRUCTURE INVESTMENT TEAM

ACN 604 986 914

Argo Global Listed Infrastructure Limited

  • Avg. years

with CNS

  • Avg. years

experience Portfolio Managers 13 18 Analysts 5 12 Team Resources 8 21

Robert Becker

Portfolio Manager, Global Listed Infrastructure 16/24

Tyler Rosenlicht

Portfolio Manager, Head of Midstream & MLPs 7/10

Ben Morton

Senior Portfolio Manager, Head of Global Listed Infrastructure 16/21 Christopher DeNunzio

Analyst New York 2/4

João Monteclaro Cesar

Analyst Hong Kong 1/11

Trent Mangold

Associate New York 1/2

Humberto Medina

Senior Analyst New York 9/19

Andrew Burd

Analyst New York 1/9

Saagar Parikh

Analyst New York 5/10

Quynh Dang

Managing Analyst London 8/19

Grace Ding

Senior Analyst Hong Kong 9/13

PORTFOLIO MANAGERS RESEARCH ANALYSTS & ASSOCIATES

At 7 October 2019. Returns are stated gross of fees. Periods greater than one year are annualized.

slide-33
SLIDE 33

33

COHEN & STEERS’ COMPETITIVE ADVANTAGES

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Experienced Global Investment Team Substantial Market Position Unique and Rigorous Investment Process Cycle-Tested Record Dedicated Real Assets Manager Alignment of Interest

slide-34
SLIDE 34

34

GLOBAL LISTED INFRASTRUCTURE OUTLOOK

ACN 604 986 914

Argo Global Listed Infrastructure Limited

Utilities Telecommunications Midstream Energy Transportation

slide-35
SLIDE 35

35

SUMMARY

ACN 604 986 914

Argo Global Listed Infrastructure Limited Why Invest in Global Listed Infrastructure Why Cohen & Steers

  • Massive infrastructure investments are needed globally
  • Historically compelling risk-adjusted returns with

attractive income component

  • Low long-term correlations to broad stock and bond

markets

  • Liquidity of listed market provides ability to invest and

manage a portfolio efficiently

  • Access to large, diverse universe
  • Investor-friendly terms compared with long lock-up

periods and high fees associated with private infrastructure investments

  • Cohen & Steers is a pioneer and leader in the listed

real assets space; listed infrastructure is core strategy for firm

  • Disciplined process that combines top-down and

bottom-up research

  • Strong 15-year track record, outperforming in both up

and down markets

  • Dedicated team with significant experience and global

presence; portfolio management team in place since inception

  • Ownership structure promotes independence and

continuity

slide-36
SLIDE 36

36

“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.”

slide-37
SLIDE 37

37

Get in touch

invest@argoinfrastructure.com.au (08) 8210 9555 www.argoinfrastructure.com.au