EDHEC Infrastructure Institute-Singapore (EDHECinfra) is releasing 384 infrastructure debt and equity indices.
The indices are designed to change how investors measure infrastructure investment performance and allow multi-trillion dollar increases in allocation to infrastructure globally.
French business school EDHEC, which launched EDHECinfra last year, has been compiling over the past two years a database of thousands of debt instruments and millions of cash flows and balance sheet items.
It will provide for the first time metrics such as time-weighted and risk-adjusted returns, value-at-risk, duration, cash yields and a dozen other performance measures of private infrastructure debt and equity.
Frédéric Blanc-Brude, EDHECinfra’s director, said: “Our benchmarks will change the way investors approach and manage their infrastructure investments.
“Key asset allocation, prudential regulation or performance attribution questions can now be answered, and trillions of dollars could now be allocated to infrastructure based on these indices.”
The new indices cover 50% of the broad market capitalisation of 14 European markets, and global coverage is planned to be achieved by 2020.
The academic research behind the indices has been supported by Natixis and the Long-Term Infrastructure Investors Association (LTIIA).
Thierry Déau, chairman of LTIIA, said: “This ground-breaking work will help LTIIA take to the next level its engagement with public and private stakeholders globally, with the objectives of increasing the understanding of actual risks and rewards of the asset class and fostering long-term investment in infrastructure.”
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