Elena Johansson discovers the trends and initiatives around Sustainable Infrastructure investment, perspectives and barriers the asset class faces and the evolving opportunities that would help investors to assess the role of infrastructure in their portfolios.
“While some large pension funds make relatively high allocations [to unlisted infrastructure equity], the average amongst large institutions is 2% and the average amongst a wider group of pension plans is 1.3%,” according to EDHECinfra, an international index and research provider, citing an OECD survey.
Frederic Blanc-Brude, Director at EDHECinfra, believes that “investors fail to invest enough because they could not until recently access the right benchmarks, including data that measures risk and how correlated with other asset classes infrastructure is”.
But now they can, by using newly developed EDHEC indices, which reflect the true value and risk of these investments, he says.
The EDHEC emerging markets unlisted infrastructure equity index returned 11.44% over the past three years for the regions Latin America and South East Asia, as of Q1 2021.”
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