Pressroom
Game changer infrastructure indices to create multi-trillion dollar sector
EDHEC Infrastructure Institute-Singapore (EDHECinfra) is releasing 384 infrastructure debt and equity indices that will change the way investors measure infrastructure investment performance and allow multi-trillion dollar increases in allocation to infrastructure globally.
The new EDHECinfra private debt and equity indexes cover 50% of the broad market capitalisation of 14 European markets, and provide investors with metrics that have been unavailable to them until now, going back to 2000. Global market coverage is planned to be achieved by 2020.
The academic research behind these indexes has benefited from the support of NATIXIS and the Long-Term Infrastructure Investors Association (LTIIA)[1] since 2012.
EDHECinfra indexes are built using asset-level, hand-collected investment data, including infrastructure projects and so-called ‘infrastructure corporates’. The infrastructure investment data depository created and maintained by EDHECinfra covers hundreds of firms, thousands of debt instruments and millions of cash flows and balance sheet items. It is the largest, most comprehensive of such database in the world.
Thanks to a unique private asset pricing technology, previously unavailable 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 investments are now available to investors.
According to Frédéric Blanc-Brude, EDHECinfra's Director: “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 answeredand trillions of dollars could now be allocated to infrastructure based on these indices.”
Chairman of LTIIA, Mr Thierry Déau said that the EDHECinfra indexes will introduce a new level of transparency to assess the performance of infrastructure investments.
"We are delighted to see such progress. 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," Mr Déau said.
Managing Director and Global Head of Portfolio Management at NATIXIS, Ms Anne-Christine Champion declared that “investors can only benefit from a much deeper understanding of the portfolio behaviour of private infrastructure debt instruments which is now available for them".
"EDHECinfra is setting new standards for performance measurements for infrastructure debt investments and NATIXIS is delighted with this paramount milestone for institutional investors’ investment in the asset class," Ms Champion added.
EDHECinfra will continue to extend its geographical coverage of private infrastructure investment data and will update its benchmarks on an annual basis.
The new EDHECinfra debt and equity indexes can be consulted via the following links:
- EDHECinfra Debt Indices: https://benchmarks.infrastructure.institute/debt/
- EDHECinfra Equity Indices: https://benchmarks.infrastructure.institute/equity/
Each web page also gives access to downloadable index factsheets, research papers, and index price, return and constituent data.
For enquiries, please contact:
Ms Grace Chen, Senior Relationship Manager +65 6653 8588 grace.chen@edhec.edu
Footnotes
EDHECinfra was launched on 24 February 2016 by the EDHEC Business School to address the profound knowledge gap faced by infrastructure investors, by collecting and standardising private investment and cash flow data and running state-of-the-art asset pricing and risk models to create the performance benchmarks that are needed for asset allocation, prudential regulation and the design of new infrastructure investment solutions. EDHECinfra currently has the world’s largest dedicated database of infrastructure investment cash flows, covering more than 25 years of data and hundreds of projects across the globe. EDHECinfra is headquartered in Singapore and has a team of 10 full-time researchers.
Founded in 2014, LTIIA gathers investors that collectively manage in excess of 5 trillion dollars of assets and that include some of the most active investors globally in the field of long term investment in infrastructure. The Association’s three key priorities at the core of its action: (i) proactive engagement with public stakeholders to support attractive investment frameworks, (ii) development of financial performance benchmarks, and (iii) definition and sharing of best practices in relation to Environmental, Social and Governance issues.
About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.1 billion, a Basel 3 CET1 Ratio(1) of 11.5% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. See note on methodology in the 2Q19 earnings material.
Figures as at 30 June 2019