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Macquarie International Infrastructure Fund posts earnings growth but loses CEO

MIIF announced their full year results and to me it is largely expected. The contribution from increasing investment in TBC have resulted in greater earnings and dividend payout.

We should expect next year to be better and MIIF reflecting the full year earnings of TBC.

  1. All three infrastructure investments all posts revenue increases
  2. Based on last analysis a payout of 4.5 cents is safe. This brings a prevailing yield of 7.7%
  3. It is anticipated that TBC will see continued subscriber growth across all of its
    businesses, with particularly strong growth in digital up-take.
  4. CXP is anticipated to continue performing steadily in 2012 although growth is anticipated to continue performing steadily in 2012, although growth
    could be tempered if steel export tariffs are increased. In addition, CXP will
    continue to face cost pressures, particularly with wage levels expected to
    increase in China.
  5. At HNE it is anticipated that slower economic activity in China will continue to negatively impact non-passenger traffic. However, this is likely to be more than
    offset by the opening of Guanghe Expressway and the continued growth in
    personal vehicle ownership in Guangdong. Overall robust growth in traffic is
    expected in 2012.
  6. As part of a national review of toll rates, the Guangdong Transport Bureau
    announced a plan to standardise the toll rate utilised to calculate tolls by all
    highways highways in the Guangdong Province This plan may adversely impact HNE in the Guangdong Province. This plan may adversely impact HNE.
    Discussions are underway with the Guangdong Government to assess the
    applicability of this plan to HNE.
  7. MIIF intends to continue the buy-back of its shares on-market in the absence of
    attractive, strong yielding investment opportunities in the Asian infrastructure
    sector. The buy-back will be subject to usual trading restrictions.

We also received the news that Mr John Stewart will be stepping down of CEO. Now we do not know what impact this would hit MIIF but under John Stewart, we have seen many initiatives to focus assets, be conservative. While the jury is still out on the investment to TBC and stock buy back, we hope that the new CEO can create value rather than be a lackey of their parent company.


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