How many assets does an infrastructure portfolio need to be sufficiently diversified? Most institutional investors would say between 20 and 50, according to a recent survey by EDHECinfra and the Global Infrastructure Hub. But this is not enough according to Frédéric Blanc-Brude, the director of EDHECinfra, the organisation that has been striving over recent years to transform the way the asset class is measured and classified.
Speaking at the annual EDHECinfra Days Conference in London on Friday, Blanc-Brude wondered if those answering the survey were referring to “a vague memory from their MBA days” that owning 40 to 50 stocks ensured a portfolio was diversified. EDHECinfra research suggests it should be more in the region of “several hundreds of assets”, he said, while admitting “this is difficult to achieve”.
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