Argo Global Listed Infrastructure Limited (ASX codes:ALI & ALIO) invests in a diversified portfolio of global infrastructure securities.
The Company’s Portfolio consists of an actively managed, diversified set of global listed infrastructure securities and global infrastructure fixed-income securities, diversified by country and sub-sector.
The Company provides investors with the opportunity to invest in an actively managed Portfolio with access to the investment management experience and expertise of the Portfolio Manager in an Australian listed company vehicle.
The Company has appointed Argo Service Company Pty Ltd (ASCO), a wholly owned subsidiary of Argo Investments Limited (Argo) to be its manager and agent to manage the affairs of the Company under the Management Agreement. ASCO has been authorised to manage the Portfolio, including by appointing and supervising the Portfolio Manager, and managing the administrative affairs of the Company.
The Portfolio Manager, Cohen & Steers Capital Management, Inc. is a highly regarded global investment manager specialising in real assets, including listed infrastructure, real estate securities, natural resource equities, and commodity futures. It was established in 1986, and its parent company was subsequently publicly listed on the New York Stock Exchange (NYSE) in 2004 under the ticker CNS. The firm has offices in New York, Seattle, London, Hong Kong and Tokyo.
What is Infrastructure?
Infrastructure assets are services and facilities that typically provide the physical framework that society requires to function on a daily basis and include utilities, pipelines, toll roads, airports, railroads, marine ports and telecommunication assets.
For the purposes of the Portfolio, an infrastructure company is one that derives at least 70% of its revenues from, or has at least 70% of its assets committed to, the construction, development or financing of infrastructure assets, or the management, ownership and/or operation of infrastructure assets.
Infrastructure universe overview
Toll Roads Airports Marine Ports Railroads
Transport Storage Gathering & Processing Renewables
Electric Utilities Gas Utilities Water
Wireless Towers Satellites
Infrastructure inherent business characteristics
Long-lived real assets
Infrastructure assets tend to have multi-decade lifespans, providing long-term cash flow streams to investors.
High barriers to entry
Infrastructure businesses tend to face less competition than most other industries, given significant zoning restrictions, large capital requirements and, in some cases, exclusivity rights that make it generally prohibitive for others to enter the market.
Predictable cash flows
Infrastructure businesses typically provide essential services with regulated or contracted revenues providing cash flow predictability.
Economic and inflation sensitivity
Depending on the infrastructure sub-sector, cash flows and asset values may have direct or indirect links to inflation, such as concession agreements that provide for rate increases tied to local inflation. Infrastructure revenues may also benefit from long-term economic growth due to rising throughput.