Argo Global Listed Infrastructure (ASX:ALI) clocks 10% return as the FX drag finally bites

April NTA slipped to A$2.69 as a stronger Aussie dollar overwhelmed an otherwise resilient portfolio

Argo Global Listed Infrastructure (ASX:ALI) released its April 2026 NTA update, with pre-tax NTA per share easing to A$2.69 from A$2.71 a month earlier. After the unrealised tax provision, the figure sits at A$2.62.

The headline number looks like a small step backwards. But the more interesting story is what dragged it there, because the underlying portfolio actually held up well against a 4.4% rally in global equities.

Global listed infrastructure as an asset class fell 1.4% in April in Australian dollar terms, and ALI’s portfolio came in slightly better at minus 1.2%. The culprit was not the assets themselves. It was the Australian dollar strengthening against the US dollar, which mechanically dragged the unhedged portfolio lower when translated back into A$.

For a vehicle that has now compounded at 10.0% over one year, 10.3% per annum over three years and 10.8% per annum over five years, all ahead of the FTSE Global Core Infrastructure 50/50 benchmark, a single soft month is more a feature than a flaw.

The unhedged structure cuts both ways and April showed the downside

ALI runs an unhedged book, which means every monthly NTA is partly a call on the Australian dollar. In months where the AUD weakens, returns get a tailwind. In April, the AUD strengthened, and the same translation effect ran in reverse.

We think this is worth flagging clearly for retail holders. The portfolio’s underlying companies, mostly US-listed electric utilities, North American pipelines and global railways, did not have a bad month. The reporting currency did.

The skeptical read is that anyone holding ALI as a defensive diversifier should be comfortable with FX noise dominating short-term NTA prints. Over five years, that noise washes out. Over four weeks, it shows up in the headline.

TC Energy and the LNG export thesis are doing the heavy lifting

The standout contributor was an overweight position in TC Energy, the Canadian natural gas pipeline operator. The share price climbed into earnings on expectations of strong North American LNG export demand.

That theme matters beyond a single April result. The build-out of US Gulf Coast LNG capacity, the contracted pipeline volumes that feed it, and the multi-decade nature of the offtake agreements give midstream energy names a quality of cashflow that is hard to find elsewhere in equities.

Midstream energy now sits at 15.0% of the portfolio, second only to electrics at 39.3%. That mix tells you where Cohen & Steers, ALI’s specialist manager, sees the durable tailwinds.

Track record against the benchmark is where the case for active really sits

Since inception in July 2015, ALI’s portfolio has returned 9.1% per annum before fees against 8.2% for the FTSE Global Core Infrastructure 50/50 benchmark. Over five years, the gap is 10.8% versus 9.3%.

Those are not small numbers in a category where most investors would happily accept benchmark returns. The 1.2% management fee is real, but the gross outperformance has been wide enough to leave net returns competitive.

Worth noting that the portfolio has also kept pace with the S&P/ASX 200 Accumulation Index over one year (10.0% versus 10.1%) while offering very different sector exposures. For investors using ALI as a diversifier rather than a substitute, that is the relevant comparison.

The Investors Takeaway for Argo Global Listed Infrastructure

April is a reminder that ALI is a play on global infrastructure cashflows AND on the AUD/USD cross. Investors who want pure infrastructure exposure without the FX layer need to size the position accordingly or hedge separately.

The forward setup still looks reasonable to us. The LNG export thesis, the electrification capex cycle in North American utilities and the contracted nature of railway and pipeline revenue all remain intact. A 4.2% dividend yield (6.0% including franking on a 12-month look-back) gives holders an income floor while those themes play out.