Annual General Meeting 2 Disclaimer This presentation has been - - PowerPoint PPT Presentation

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Annual General Meeting 2 Disclaimer This presentation has been - - PowerPoint PPT Presentation

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1 Welcome to the 2018 Annual General Meeting 2 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

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SLIDE 1

Welcome to the 2018 Annual General Meeting

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SLIDE 2

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 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.

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SLIDE 3

Financial results

2018 2017 Profit $16.2 million $7.8 million Total dividends per share 3.75 cents 3.5 cents Net tangible asset backing (NTA) per share, after costs and tax $2.16 $2.06

year ended 30 June 2018

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SLIDE 4

3.0c 3.5c 3.75c +0.95c

2016 2017 2018

interim final franking credits*

Dividends

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* the 2018 final dividend was fully franked

first fully franked dividend paid in September

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SLIDE 5

Total returns to 30 September 2018

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3.4% 9.6% 9.6% 3.9% 11.1% 12.8% 2.6% 9.4% 8.7%

3 months 6 months 1 year

NTA Portfolio Benchmark

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SLIDE 6

Positive progress – share price

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$10,234 $10,185 $9,625

07/2015 01/2016 07/2016 01/2017 07/2017 01/2018 07/2018

+ franking credits + dividends paid Share price

since inception based on $10,000 invested

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SLIDE 7

Positive progress - NTA

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$11,930 $11,880 $11,304

07/2015 01/2016 07/2016 01/2017 07/2017 01/2018 07/2018

+ franking credits + dividends paid ALI NTA

since inception based on $10,000 invested

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SLIDE 8

Narrowing the share price/NTA discount

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  • On market buy-back (since April 2018)
  • Dividend Reinvestment Plan on market
  • Increased marketing and communication
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SLIDE 9

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Opposition to the removal of refundable franking credits

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SLIDE 10

Survey results

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Diversification most important Followed by infrastructure exposure 80% invested based on

  • wn research

92%

Long-term shareholders

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SLIDE 11

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This Photo by Unknown Author is licensed under CC BY-NC

Directorate

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SLIDE 12

Market outlook

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Market outlook

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SLIDE 13

“AGLI’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 provides diversification benefits for Australian investors”

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SLIDE 14

Listed infrastructure in Australia

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  • 13 companies
  • Mature, expensive

sector

  • $94 billion market cap.
  • Limited assets
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SLIDE 15

Access global opportunities

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  • 350 companies
  • 16 countries
  • Developed and

emerging markets

  • $2.4 trillion market cap.
  • All assets types
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SLIDE 16

Benefits of LISTED infrastructure

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Liquidity Low correlation with broader equities Transparency Daily pricing Diversification Low volatility

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SLIDE 17

Cohen & Steers, Inc. (NYSE:CNS)

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New York London Hong Kong

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SLIDE 18

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Investor engagement

Independent Research Results Announcements Quarterly Investment Report Weekly NTA and Investment Updates Research Papers and Videos Shareholder Presentations

www.argoinfrastructure.com.au

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SLIDE 19

AGLI opportunity

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Global diversification Specialist global fund manager Access opportunities Proven investment approach Enhance risk adjusted returns Exposure to growth trends

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SLIDE 20

Argo Global Listed Infrastructure Limited Robert Becker—Senior Vice President, Portfolio Manager, Cohen & Steers

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SLIDE 21

Key Considerations for Investors

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

CPICM04161_OS

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SLIDE 22

Infrastructure Is Essential for Economic Growth

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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 and satellites

Transportation

Toll roads, marine ports, railways and airports

At September 30, 2018.

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SLIDE 23

Key Infrastructure Themes

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Macroeconomic Backdrop Record Dry Powder Rising Interest Rates

At September 30, 2018.

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SLIDE 24

Infrastructure Has Historically Shown Resilience After Interest Rate Increases

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Infrastructure has often lagged global equities during periods where rates increase… ...But has historically outperformed after the initial reaction

  • 2.5

4.9 9.0 17.2

  • 0.1

2.6 6.3 10.7

  • 5%

0% 5% 10% 15% 20% Initial Yield Spike 3 months after rate increase 6 months after rate increase 12 months after rate increase Average Cumulative Return Infrastructure Global Equities

At September 30, 2018.

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SLIDE 25

Macroeconomic Impact on Infrastructure Returns

25 5% 2%

  • 1%

5%

  • 2%

0% 2% 4% 6% Recession Early Cycle Mid Cycle Late Cycle Average Excess Return Ann.

Relative Returns vs. Equities Across Business Cycles

Infrastructure Performance Relative to Equities

At December 31, 2017.

CPICM04161_OS

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Record Dry Powder Creating a Valuation Floor

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Private Infrastructure Dry Powder Over $170B in assets on the sidelines causing private investors to chase a limited number of deals, with increased competition driving down returns

15 37 65 66 64 68 84 74 109 105 109 152 159 173 30 60 90 120 150 180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018 $Billions

At September 30, 2018.

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SLIDE 27

Why Listed Infrastructure Now

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Compelling Secular Case Strong Fundamentals Attractive Valuations Supportive Market Environment

At September 30, 2018.

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SLIDE 28

Cohen & Steers Global Listed Infrastructure Strategy

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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 of 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

At September 30, 2018.

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SLIDE 29

Global Listed Infrastructure Top Holdings

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Top Ten Absolute Positions Portfolio % 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 Company 2.5 Total 32.7

At September 30, 2018.

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SLIDE 30

Key Holding—Electric Utilities

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NextEra Energy

Overview

  • Provides sustainable energy generation and distribution services
  • Generates electricity through wind, solar, and natural gas
  • Through its subsidiaries, also operates multiple commercial nuclear power units
  • 5.3 million customers

Portfolio Weight

  • 5.6%

At September 30, 2018.

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SLIDE 31

Key Holding—Towers

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Crown Castle International

Overview

  • Largest U.S. wireless tower company with nearly 40,000 towers
  • Core business is leasing space on its wireless towers primarily to wireless carriers,

government agencies and broadband data providers Portfolio Weight

  • 3.2%

At September 30, 2018.

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SLIDE 32

Key Holding—Railways

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At September 30, 2018.

Union Pacific

Overview

  • One of America's leading transportation companies, headquartered in Omaha,

Nebraska

  • Principal operating company, Union Pacific Railroad, is North America's premier

railroad franchise, covering 23 states across the western two-thirds of the United States Portfolio Weight

  • 3.0%
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SLIDE 33

Key Holding—Midstream

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Cheniere Energy

Overview

  • Leading producer of liquefied natural gas (LNG) in the U.S.
  • 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 provider of LNG

Portfolio Weight

  • 2.0%

At September 30, 2018.

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SLIDE 34

Portfolio Performance

34 12.8 10.4 8.4 8.7 8.8 7.5

0% 2% 4% 6% 8% 10% 12% 14%

1 Year 2 Years 3 Years

Argo Global Listed Infrastructure Limited Linked FTSE Global Core Infrastructure 50/50 Net Tax Index

Total Returns (%) in A$

At September 30, 2018.

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SLIDE 35

Portfolio Attribution

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Total Relative Performance for the 1-Year Period: +401 Basis Points Contributors Basis Points Comments

Midstream +199 bps Out-of-index allocation to Cheniere Energy; overweight Oneok; underweight TransCanada Toll Roads +93 bps No allocation to CCR; underweight Atlantia Marine Ports + 71 bps No allocation to Adani Ports or China Merchants

Detractors Basis Points Comments

Diversified

  • 44 bps

Underweight Macquarie Infrastructure; no allocation to DONG Energy Water

  • 30 bps

Overweight Sabesp Airports

  • 25 bps

Overweight AENA and Fraport

At September 30, 2018.

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SLIDE 36

Global Listed Infrastructure Investment Team

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Andrew Burd

Analyst New York 1/8

Kathleen Morris

Analyst New York 3/8

Saagar Parikh

Analyst New York 4/9

Quynh Dang

Analyst New York 7/18

Christopher DeNunzio

Associate New York 1/3

Grace Ding

Analyst New York 8/12

Sophia Sciabica

Associate New York 1/2

Humberto Medina

Analyst New York 8/18

At September 30, 2018. Years with CNS/Years of experience.

RESEARCH ANALYSTS & ASSOCIATES PORTFOLIO MANAGERS

Joseph Harvey, President & CIO 26/31

New York London Hong Kong

  • Avg. years

with CNS

  • Avg. years

experience Co-Head Portfolio Managers 15 22 Portfolio Managers 12 17 Analysts 5 12

Robert Becker

Co-Head, Portfolio Manager 15/23

Ben Morton

Co-Head, Portfolio Manager 15/20

Tyler Rosenlicht

Portfolio Manager 6/9
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SLIDE 37

Cohen & Steers’ Competitive Advantages

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Experienced Global Investment Team Substantial Market Position Rigorous and Disciplined Investment Process Track Record Dedicated Real Assets Manager Employee Ownership Advantage

Global Listed Infrastructure

At September 30, 2018.

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SLIDE 38

Transportation Midstream Energy Telecommunications Utilities

Outlook

38 U.S. Business Cycle Global Business Cycle Market Implications

At September 30, 2018.

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SLIDE 39

Key Takeaways

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At September 30, 2018.

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

Essential services, unique characteristics and downside protection Global policy imperative, private capital creating a valuation floor Experienced, specialist global investment team. Rigorous and disciplined investment process and strong track record

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