AGLI will invest in a diversified portfolio of global listed infrastructure securities and global infrastructure fixed-income securities. The portfolio will be diversified by geography and infrastructure sub-sectors, including airports, water, pipelines, railways, ports, satellites, toll roads, telecommunications towers and electricity, gas and renewable energy utilities.
According to Argo's Chairman, Mr. Ian Martin AM, the creation and management of AGLI would add a new, long-term income stream for Argo Investments Limited. Mr. Martin said:
"Argo is a trusted name within the Australian listed investment company sector. Given the growth in the Australian superannuation industry and increasing pool of investments held by self-managed superannuation funds, we see the opportunity for Argo to expand its product offering and grow external funds under management. AGLI will be differentiated from Argo, both in terms of asset class and geographic exposure. Global listed infrastructure is a growing asset sector with an investable universe over A$3.9 trillion."
Leading specialist infrastructure manager Cohen & Steers will actively manage the AGLI portfolio as a sub-advisor. Cohen & Steers is a global investment manager based in New York with over A$65 billion in assets under management. The company is listed on the New York Stock Exchange and has other offices in Hong Kong, Tokyo and London.
Argo's Managing Director, Mr. Jason Beddow, commented:
"Cohen & Steers is one of the world's largest investors in real assets, including global listed infrastructure and real estate. Argo has selected Cohen & Steers as sub-advisor based on their cultural alignment with Argo, consistent investment philosophy and strong long-term performance track record of investing in global listed infrastructure."
Joseph Harvey, President and Chief Investment Officer of Cohen & Steers, added:
"Argo is a long-standing, trusted brand in asset management. We are pleased to partner with Argo to create a vehicle that helps investors capitalise on the large and growing opportunity in listed infrastructure."
Although the final decision to proceed with the launch of AGLI is subject to market conditions, it is expected that a prospectus for the AGLI listing will be lodged with ASIC in May 2015. Eligible Argo shareholders will have the opportunity to subscribe for shares under a priority allocation. Applications for shares will only be able to be made by completing application forms accompanying the prospectus for the offer.
Argo is being advised by Rothschild. CBA Equities and Taylor Collison are acting as Joint Arrangers and Joint Lead Managers. Morgans and Ord Minnett are acting as Joint Lead Managers, and Minter Ellison as Legal Adviser.