EDHECinfra Announcement
Know your TICCS®, understand your risks
Publication date: 2020-03-04

Infrastructure index provider EDHECinfra releases 2020 version of its industry-backed infrastructure investment taxonomy, which enables investors to build customised benchmarks reflecting the true risk exposures of their infrastructure portfolios.

Since its launch in 2018, The Infrastructure Companies Classification Standard or TICCS® has become an industry standard and is widely used by infrastructure investors to categorise their assets and better understand their risk. TICCS® is built using objective criteria including the business model, industrial activity and corporate structure of individual companies.

Today, EDHECinfra is releasing TICCS® 2020, following an industry-wide consultation between May and October 2019 that drew responses from 120 asset managers, asset owners, consultants and regulators. Some 70% of the respondents stated that TICCS® was clear and did not need changing. However, suggestions were also made to clarify definitions and new asset types have been added to the industrial activity pillar.

In January 2020, the 16-strong independent TICCS® Review Committee conducted a detailed analysis of the consultation responses and provided its own recommendations for TICCS® 2020.

Andrew Knight of RICS, the Chairman of the TICCS® Review Committee, said: “We had three main recommendations. First, the taxonomy should stay pure. There should be no hybrid categories, but companies could fall into multiple ones. It should also be as granular as possible to capture the heterogeneity of the asset class. Finally, TICCS® should be ‘normative’ and rest on first principles, but also stay open and keep evolving.”

TICCS® 2020 adds ten new types of assets including Floating Storage Units or Carbon Capture projects and introduces a distinction between financial and operating leases which allows the correct treatment of rolling stock and LNG ships.

Avi Turetsky of Landmark Partners, and Secretary of the Review Committee, explained: “TICCS® is meant to be universal. Most investors will not include all its segments in their view of infrastructure, but it is a detailed enough for all of them to be able to use it.”

TICCS® is also used to categorise the hundreds of constituents of the EDHECinfra unlisted infrastructure market indices.

Frederic Blanc-Brude, Director of EDHECinfra added: “TICCS® is about making robust comparisons between well-defined investments, portfolios and benchmarks. It is the antidote to the “core vs core+” view of the sector. A lack of transparency in the definition of risk profiles is a problem for asset managers and asset owners alike. With TICCS®, investors can build customised benchmarks that truly represent the risks of their portfolio.”

TICCS® 2020 can be accessed here.
The results of the 2019 consultation and 2020 review are visible here.
The 2020 TICCS® implementation guidelines are available here.

About the TICCS® Review Committee
The TICCS® Review Committee is composed of 15-20 members, including one Chairman and one Secretary, who represent different aspects of the infrastructure investment community. It aims to include an equal number of asset owners (pension plans, insurers, etc.) and asset managers or commercial banks as well as other standard setting bodies, regulators and academics.

The 2020 members of the TICCS® Review Committee include:
Andrew Knight (RICS) – Chairman, Avi Turetsky (Landmark Partners) – Secretary, Mark Blair (OTTP), Patrick Boylan (BlackRock), Anne-Christine Champion (Natixis), James Davis (OPTrust), Christophe Dossarp (SOURCE), Marie Lam-Frendo (Global Infrastructure Hub), Trevor Lewis (Asian Development Bank), Christoph Manser (Swiss Life), Laurence Monnier (Aviva Investors), Petya Nikolova (New York City Comptroller’s Office), Paul Shantic (CALSTRS), Marija Simpraga (LGIM), Nicholas Tan (Clifford Capital), Rick Walters (GRESB).

Know your TICCS®, understand your risks


  • The information contained on the EDHECinfra website (the “information”) has been prepared by EDHECinfra solely for informational purposes, is not a recommendation to participate in any particular investment strategy and should not be considered as an investment advice or an offer to sell or buy certain securities.

    All information provided by EDHECinfra is impersonal and not tailored to the needs of any person, entity or group of persons. The information shall not be used for any unlawful or unauthorised purposes. The information is provided on an “as is” basis.

    Although EDHECinfra shall obtain information from sources which EDHECinfra considers to be reliable, neither EDHECinfra nor its information providers involved in, or related to, compiling, computing or creating the information (collectively, the “EDHECinfra Parties”) guarantees the accuracy and/or the completeness of any of this information.

    None of the EDHECinfra Parties makes any representation or warranty, express or implied, as to the results to be obtained by any person or entity from any use of this information, and the user of this information assumes the entire risk of any use made of this information. None of the EDHECinfra Parties makes any express or implied warranties, and the EDHECinfra Parties hereby expressly disclaim all implied warranties (including, without limitation, any implied warranties of accuracy, completeness, timeliness, sequence, currentness, merchantability, quality or fitness for a particular purpose) with respect to any of this information.

    Without limiting any of the foregoing, in no event shall any of the EDHECinfra Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits), even if notified of the possibility of such damages.

    All EDHECinfra Indices and data are the exclusive property of EDHECinfra. Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. In many cases, hypothetical, back-tested results were achieved by means of the retroactive application of a simulation model and, as such, the corresponding results have inherent limitations.

    The Index returns shown do not represent the results of actual trading of investable assets/securities. EDHECinfra maintains the Index and calculates the Index levels and performance shown or discussed, but does not manage actual assets. Index returns do not reflect payment of any sales charges or fees an investor may pay to purchase the securities underlying the Index or investment funds that are intended to track the performance of the Index. The imposition of these fees and charges would cause actual and back-tested performance of the securities/fund to be lower than the Index performance shown. Back-tested performance may not reflect the impact that any material market or economic factors might have had on the advisor’s management of actual client assets.

    The information may be used to create works such as charts and reports. Limited extracts of information and/or data derived from the information may be distributed or redistributed provided this is done infrequently in a non-systematic manner. The information may be used within the framework of investment activities provided that it is not done in connection with the marketing or promotion of any financial instrument or investment product that makes any explicit reference to the trademarks licensed to EDHECinfra (EDHECinfra, Scientific Infra and any other trademarks licensed to EDHEC Group) and that is based on, or seeks to match, the performance of the whole, or any part, of a EDHECinfra index. Such use requires that the Subscriber first enters into a separate license agreement with EDHECinfra. The Information may not be used to verify or correct other data or information from other sources.

    The terms contained in this Disclaimer are in addition to the Terms of Service for users without a subscription applicable to the EDHECinfra website, which are incorporated herein by reference.

    This site uses cookies to deliver the services you request, improve user experience and measure audience. By continuing to browse our website, you are consenting to our use of cookies. Find out more about this in our Privacy policy.

  • X