EDHECinfra Announcement
Game changer infrastructure indices to create multi-trillion dollar sector
Publication date: 2017-07-13

Singapore – 13 June 2017 – 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 indices 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 indices has benefited from the support of NATIXIS and the Long-Term Infrastructure Investors Association (LTIIA) since 2012.

EDHECinfra indices 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 such database in the world.

Thanks to a unique, peer-reviewed 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 answered, and trillions of dollars could
now be allocated to infrastructure based on these indices.”

Chairman of LTIIA, Mr Thierry Déau said that the EDHECinfra indices 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 broad market infrastructure debt and equity benchmarks regularly.

Game changer infrastructure indices to create multi-trillion dollar sector