EDHECinfra Research for Institutional Money Management – Pensions & Investments

In this issue of EDHECinfra Research for Institutional Money Management, we discuss the surprising persistence of absolute return benchmarks in unlisted infrastructure investment, even though they are inadequate in encapsulating the risk, performance and contribution of infrastructure assets within the total portfolio. The Q1 2020 release of the EDHECinfra indexes captured the impact of Covid-19 on infrastructure investment with a high degree of granularity, with each sub-index capturing a different risk profile for different segments of the universe. Controlling for variables such as size, profitability, leverage, investment opportunities and industry, we show that infrastructure companies exhibit statistically significant differences from other investible assets. We present the first steps of our research program into the ESG characteristics of infrastructure companies and review the evolution of The Infrastructure Company Classification Standard that was published in March 2020. TICCS® is designed to clearly identify the segments to which investors’ infrastructure portfolios are exposed.

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