Argo Global Listed Infrastructure (ALI) Investor Day 2024 summary

Financial performance and portfolio overview

• Half-year profit was $125.3 million, down from $137.0 million in 2023, with EPS at 16.5c versus 18.2c last year.

• Interim dividend held steady at 16.5c per share, fully franked, with a dividend yield of 5.7%.

• Total assets increased to $7.1 billion from $6.6 billion in 2023.

• Portfolio remains diversified, with top holdings in Macquarie Group, BHP, CSL, and CBA; materials, financials, and healthcare are leading sectors.

• Recent portfolio activity includes purchases of Santos and Stanmore, and sales of BHP and Wesfarmers.

Market and sector outlook

• The Australian share market reached record highs post-pandemic, but market capitalisation growth has stagnated in 2024.

• Banks remain well positioned, with profits down year-on-year but dividends generally up; banks have outperformed the broader market in the current financial year.

• Healthcare sector shows strong long-term growth, supported by demographic tailwinds and rising healthcare spend as a percentage of GDP.

• Short-term challenges persist in healthcare, with COVID disruptions impacting winners and losers differently.

Macroeconomic and consumer trends

• US economic outlook remains healthy, with 2024 consensus EPS growth at 10.1%, while Australia’s is softer at 2.4%.

• Australian consumer confidence is notably weaker compared to the US and UK.

• US election remains a key uncertainty, with Trump and Biden polling closely.