Data collection for infrastructure investment benchmarking: objectives, reality check and reporting framework

by Frédéric Blanc-Brude, Raffaëlle Delacroce, Majid Hasan, Cledan Mandri-Perrot, Jordan Schwartz, Tim Whittaker
Abstract:
In this paper, we propose a template for collecting and reporting infrastructure investment data for the purpose of building investment benchmarks corresponding to reference portfolios of privately-held in- frastructure debt or equity.

To establish what data needs to be collected, we take the following approach: we start from the reasons why infrastructure investment benchmarks are in demand and list the key ques- tions that such benchmarks should be expected to answer. The answers to these questions (about the risk-adjusted performance, extreme risks, liability friendliness and impact of infrastructure investments) represent different aspects of the project to create infrastructure investment benchmarks. Unfortunately, it remains very difficult to answer these questions today, for lack of the relevant information.

We thus propose a data collection framework designed to answer these important questions, while respecting the following principles:
a/ the financial instruments used to invest in infrastructure must be well-defined;
b/ the drivers of the economic, social and environmental impact of infrastructure investment must be well understood;
c/ benchmarking results must be based on best-in-class models of financial performance and economic impact measurement;
d/ the required data must already exist and be sufficiently standard to be observable on a large scale; and
e/ it must be limited to a parsimonious list to keep the collection process efficient and realistic.

Publication focus:

Academic finance
not much
Risk Management
a lot
Asset pricing
some
Maths
not much
Stats
not much
Reference:
Data collection for infrastructure investment benchmarking: objectives, reality check and reporting framework (Frédéric Blanc-Brude, Raffaëlle Delacroce, Majid Hasan, Cledan Mandri-Perrot, Jordan Schwartz, Tim Whittaker), In EDHEC Infrastructure Institute-Singapore, 2016.