SPEAKER: Andrew Maple-Brown, Maple-Brown Abbott LOCATION: Sydney DATE: October 2014

ASX INVESTMENT VIDEOS

DISCLAIMER: The views, opinions or recommendations of the presenters are solely their own and do not in any way reflect the views, opinions, recommendations, of ASX Limited ABN 98 008 624 691 and its related bodies corporate (“ASX”). Information and material presented at the seminar is for educational purposes only and does not constitute financial product advice. Investors should obtain independent advice from an Australian financial services licensee before making investment decisions. No responsibility is accepted by ASX for any loss or damage arising in any way (including due to negligence) from anyone acting or refraining from acting as a result of this information or material. © Copyright 2014 ASX Operations Pty Limited ABN 42 004 523 782. All rights reserved 2013.

Learn why infrastructure investing is the road to wealth

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Units in the Maple-Brown Abbott Global Listed Infrastructure Fund are issued by Maple-Brown Abbott Limited (Maple-Brown Abbott) ABN 73 001 208 564, Australian Financial Service Licence No. (AFSL) 237296.  Before making a decision to acquire, or to continue to hold an interest in the Fund, investors should consider the current Product Disclosure Statement (PDS) for the Fund, available at maple-brownabbott.com.au. Comments we make about individual stocks are intended only to explain our approach to managing funds.  In discussing individual stocks or other investments we do not make any recommendation or give any statement of opinion that is intended to influence anyone in making an investment decision.  Performance figures are before tax and after management fees. Past performance is not a reliable indicator of future performance.                              Maple-Brown Abbott Limited does not make any representation or give any guarantee as to the future performance or success of, the rate of income or capital return from, the recovery of money invested in, or the income tax or other taxation consequences of, any investment.

Disclaimer

Agenda

1.  Outlook for infrastructure investing here and overseas

2. Sector’s role in portfolios 3. Infrastructure investing tips

Australia’s infrastructure backlog

•  Approximately $90 billion (Source: Infrastructure Australia).

•  Infrastructure investment hasn’t kept pace

with population growth, particularly in transport

Key projects over next 5 years

•  Second airport in Sydney •  Toll road widening and new tunnels •  Large road projects in Melbourne •  Electricity privatisations in Queensland

and NSW

Are big returns available?

•  Don’t target outsized returns from infrastructure

•  Aim for attractive risk-adjusted returns •  M.B.A. targets a return of the inflation rate

plus 5.5 per cent

Other benefits of investing in infrastructure

•  Sector typically offers higher yield than global equities

•  Long-dated cash flows provide better security

•  Diversification

How has the sector changed since GFC?

•  Balance sheets of ASX-listed infrastructure funds have been strengthened

•  Offshore infrastructure funds experienced

fewer problems during GFC

Why invest in offshore infrastructure, and does it create currency risk?

•  M.B.A. prefers unhedged currency exposure due to $A being overvalued

•  More infrastructure opportunities

overseas •  110 companies fit their criteria

How does M.B.A. choose funds?

•  Seek monopoly-like assets (e.g. roads) •  Low cash-flow volatility and good inflation

linkage. •  Strong management and governance,

attractive valuations.

Infrastructure opportunities in 2015 and beyond

•  Water and electricity are our preferred sectors globally

•  Less political / regulatory risk •  Long-term strategic value in water and

electricity •  Telco assets also attractive

Preferred ASX-listed infrastructure funds •  Largest fund position is Transurban

Group •  Defensive nature of its road infrastructure

appeals •  Spark Infrastructure Group and AusNet

Services other holdings

•  Take a short online course

•  Subscribe to the Investor Update e-newsletter

•  Play the ASX Sharemarket Game

•  Watch another ASX Investment video

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