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Quarterly Investment Update September 2021 ARGO INFRASTRUCTURE Market overview Global equity markets rose over the September quarter , although the positive return belied considerable volatility during the quarter , particularly in September , which was driven by a multitude of concerns . Rising inflation , tapering of stimulus , rising bond yields and the health of the Chinese economy , particularly its property sector , all weighed on sentiment . Against this backdrop , global listed infrastructure subsectors generated mixed returns with the asset class up + 3.7 % , modestly underperforming broader global equities . The more defensive infrastructure subsectors advanced , with water ( + 7.2 % ) and electric ( + 4.4 % ) utilities outperforming . The airport subsector , which was one of the worst performers over the first six months of the 2021 calendar year , rallied during the September quarter ( + 10.1 % ) amid an improving outlook , the partial lifting of travel restrictions in the US and merger and acquisition activity . The airport subsector rallied during the September quarter ( + 10.1 % ) amid an improving outlook , the partial lifting of travel restrictions in the US and merger and acquisition activity . Higher energy prices and rising volume assumptions saw midstream energy stocks continue their ascent , particularly in the last month of the quarter . As the vaccination rollout continued and enthusiasm for the reopening trade returned , some economically - sensitive subsectors outperformed , notably marine ports ( + 11.8 % ) which was a beneficiary of the rebound in global trade activity . In contrast , freight railways ( -4.7 % ) remained weak , hampered by freight disruptions and shipping issues . Communications ( towers and data centres ) stocks also lagged . While the fundamentals of the subsector remain intact , investors sought out investments that are more exposed to the pandemic recovery . Portfolio performance In the September quarter , Argo Infrastructure's portfolio rose + 3.9 % in A $ terms to outperform the benchmark index return of + 3.7 % . Exposure to the midstream energy sector again contributed positively to the portfolio's performance , particularly overweight positions in US stocks Cheniere Energy and Enbridge which are Argo Infrastructure's third and eighth largest holdings respectively . Both companies continued to indirectly benefit from advantageous supply / demand trends for energy commodities . Utilities and renewable energy - related companies with higher growth potential also added to portfolio gains , including NextEra Energy - Argo Infrastructure's largest holding and the world's biggest utility . See page three for an overview of the company . 3 months Portfolio + 3.9 % 1 year + 15.6 % 8 years ( p.a. ) Since inception ( p.a. ) + 9.2 % + 8.3 % Benchmark * + 3.7 % + 15.0 % + 7.8 % + 7.7 % S & P / ASX 200 ** + 1.7 % + 30.5 % + 9.6 % + 8.8 % * FTSE Global Core Infrastructure 50/50 Index ( in A $ ) ** Accumulation Index argoinfrastructure.com.au | 1