Efficient benchmarks for infrastructure equity investments

by Frédéric Blanc-Brude
Abstract:
Our contribution is threefold: in a first part, we discuss the nature of underlying infrastruc- ture equity and what mechanisms explain its investment characteristics. Next, we review the rationale for infrastructure investing by insur- ance companies and pension funds and existing empirical research on the performance of exist- ing investment routes and vehicles. Finally, we discuss what approaches to benchmarking and portfolio construction might best capture the characteristics of underlying infrastructure and highlight the need for new data collection and appropriate benchmarking methodologies.
Reference:
Efficient benchmarks for infrastructure equity investments (Frédéric Blanc-Brude), In Investment & Pensions Europe, 2013.