ALI - Argo Global Listed Infrastructure

[So_Cynical]

Not entirely. The management fee of 1.2% is based on percentage of the assets not the income. Also if looking at income, it includes the net changes in the fair value of assets.

Yes i know that Belli - the funds stated aim is to hold assets not trade (buy and Hold) they pocketed 42% of all operational income as fees, thats absolutely ******* outrageous, not to mention they paid out over 6 million in dividends on about 3 million (after fees) of operational profit.

 

[Belli]

Yes i know that Belli - the funds stated aim is to hold assets not trade (buy and Hold) they pocketed 42% of all operational income as fees, thats absolutely ******* outrageous, not to mention they paid out over 6 million in dividends on about 3 million (after fees) of operational profit.

I do understand your point.

Thing is, the dividends are not paid from operational profit but via the Profit Reserve as per this where $16.84m of profit was moved from retained earnings to the reserve.

The dividends declared after the balance date will be $5.855m which indicates the profit reserve will now be $42.061m. Still the issues of fees of course.

 

[Dona Ferentes]

Trading at $2.27 with a yield of about 3.4% and Management fee of a whopping 1.2%

• The Manager receives a management fee of 1.20%p.a up to a portfolio value of $500m.
• The management fee will decrease to 1.10%p.a for a portfolio value of $500m-$1b and will decrease to 1.0% in the event the portfolio value exceeds $1b.
• The Manager is responsible for paying the Portfolio Manager from the management fee it receives from the Company.
• The Management Agreement was renewed for a further five years after the initial five year term was completed in 2020.

market cap now $420million. Portfolio value would be near this.

 

[divs4ever]

Thing is, the dividends are not paid from operational profit but via the Profit Reserve as per this where $16.84m of profit was moved from retained earnings to the reserve.

several LICs ( but NOT all ) do that , that is an extra research tidbit , you need to look at when researching the LIC ( depending on your needs this is either bad or good )

bad in the case of it attracting cash-hungry predators , good for those hoping for a fairly stable income

i spread my LIC holding between those that do and those that don't

 

[Belli]

ALI reported this morning.

Profit for the year $29.867m up 58.9%. EPS 18.3c up from 12.6c

Dividend of 4.5c ff (same as pcp) payable on 30 September. Total dividend for FY is 8c ff.

 

[Dona Ferentes]

DIvidends .... nice!

 

[Belli]

DIvidends .... nice!

They do tend to brighten an otherwise gloomy day.

Looking at its franking account there is sufficient to fund 14.3c per share (assuming it receives franked dividends. The Profit Reserve from where dividends are paid increased by $22.168m to $60.147m. That will be reduced by the forthcoming dividend which amounts to $7.539m so still a healthy reserve.

I see ALI has instigate Buy Back program as well.

And I noticed in the media release, they are bemoaning the lack of infrastructure on the ASX. It happens when the Government allows Superannuation funds to gobble them up to the detriment of those who are not members of those funds.

 

[Belli]

Another SPP in the pipeline. Opens 30 September, offer closes 14 October and Issue date is 21 October. Maximum number of shares to be issued 50,260,612. Maximum Price is $2.35 or the usual VWAP whichever is the lower. Note the opening date coincides with the dividend payment date.

 

[Dona Ferentes]

Another SPP in the pipeline. Opens 30 September, offer closes 14 October and Issue date is 21 October. Maximum number of shares to be issued 50,260,612. Maximum Price is $2.35 or the usual VWAP whichever is the lower. Note the opening date coincides with the dividend payment date.

A pity the AUD is so low, as most assets purchased are in USD.

 

[Belli]

True but if that was the main consideration I wouldn't have purchased it in the first place. Other considerations for me is its Payout Ratio in the mid-40% and relatively low PE.

 

[Dona Ferentes]

Another SPP in the pipeline. Opens 30 September, offer closes 14 October and Issue date is 21 October. Maximum number of shares to be issued 50,260,612. Maximum Price is $2.35 or the usual VWAP whichever is the lower

Applications from 1,801 shareholders were accepted, totalling $21,004,600. (average over $11,000). No scale back was applied to applications; shares will be issued on Friday 21 October 2022 at the subscription price of $2.35 per new share.

 

[Belli]

Applications from 1,801 shareholders were accepted, totalling $21,004,600. (average over $11,000). No scale back was applied to applications; shares will be issued on Friday 21 October 2022 at the subscription price of $2.35 per new share.

Threw some funds in. Will put in bottom drawer and sit.

 

[divs4ever]

Threw some funds in. Will put in bottom drawer and sit.

i am more likely to buy into ARG than ALI ( i hold neither currently ) , i am expecting the recession ( or whatever it is being called ) to start choking investment capital , in addition to skilled staff shortages , whereas ARG is more likely to deploy cash carefully as opportunities come along , with are less restrictive mandate ( sector-wise )

good luck

 

[Belli]

You have no idea what ARG (or ALI for that matter) will or will not do. Holders will find out only after the event. You apply garbage random thought processes.

 

[Dona Ferentes]

Threw some funds in. Will put in bottom drawer and sit.

Me too, and likely 1799 others .

 

[divs4ever]

You have no idea what ARG (or ALI for that matter) will or will not do. Holders will find out only after the event. You apply garbage random thought processes.

unless the old school LICs clean out their strategists , it isn't rocket science , and you had a hint during March/April 2020

some liquidated their portfolios and some DIDN'T ( they just picked up a morsel here and there )

time will tell

 

[Dona Ferentes]

Nonsense, piffle, rubbish. Unsubstantiated brain-fart.

 

[divs4ever]

HA HA , am off to watch AWC and see how the market takes today's update ( and CSR but don't expect CSR to be so entertaining )

 

[Belli]

ALI has reported

 

[Dona Ferentes]

And I noticed in the media release, they are bemoaning the lack of infrastructure on the ASX. It happens when the Government allows Superannuation funds to gobble them up to the detriment of those who are not members of those funds.

And a subtle emphasis change (renewabubbles)

Outlook
For the foreseeable future, the global growth outlook will be largely contingent on macroeconomic factors. Investor attention will remain centred on inflation and the monetary policy response of central banks, particularly the US Federal Reserve. As the world’s second largest economy, China’s continued reopening will also be closely monitored. Similarly, the ongoing impacts of the Ukraine War, including on energy commodity prices, will also shape the economic outlook.

For global listed infrastructure specifically, the higher inflation and rising interest rate environment may weigh on some subsectors. However, the overall asset class tends to be resilient in this environment as most infrastructure businesses can pass on rising costs to their customers.

Longer-term, a range of global infrastructure businesses will continue to benefit from major structural changes underway in the global economy. Most notable of these is decarbonisation which will require significant capital investment in renewable energy infrastructure projects across both emerging and developed economies.

With just a handful of ASX-listed infrastructure companies remaining, Argo Infrastructure offers Australian investors access to a broad range of infrastructure assets, including companies with exposure to renewable power generation. The Company remains well-positioned with more than $400 million in assets and no debt