EDHECinfra Index Methodology
EDHECinfra indices and benchmarks aim to provide the representative, risk-adjusted performance of investments in unlisted infrastructure equity and private debt.
EDHECinfra produces calculated (as opposed to contributed) indices: our data and technology allows re-pricing hundreds of individual assets through time, using actual transaction prices to recalibrate expected returns (and discount rates).
This approach uses market inputs, thus avoiding the smoothing of returns caused by appraisal valuations and providing a genuine fair value assessment of performance.
Unlike other private indices, which only report an average performance, EDHECinfra indices include the effect of diversification and provide advanced risk metrics such as volatility, value-at-risk and risk factor prices. The index calculation method is summarised below in four key steps.
TICCS: The Infrastructure Company Classification Standard
Private infrastructure investment is developing rapidly as a global asset class. This evolution requires a clear and robust classification of the individual infrastructure companies that equity investors can acquire or debt investors lend to. The Infrastructure Company Classification Standard (TICCS) was created by EDHECinfra to provide investors with a frame of reference to approach the infrastructure asset class.
It offers an alternative to investment categories that were inherited from the private equity and real estate universe (e.g. 'Core' vs. 'Core+') which may not be the most informative when trying to group infrastructure investments and design strategies or simply document the structure of the sector. TICCS is designed to be compatible with other standard investment classification schemes but also uses fundamental insights from the academic literature to create a classification that embodies some of the key aspects of infrastructure businesses' risk profiles.
Current TICCS documents
TICCS is reviewed once a year in the context of a global consultation and the expert advice of the TICCS Review Committee:
- Andrew Knight (RICS) – Chairman
- Avi Turetsky (Landmark Partners) – Secretary
- Mark Blair (OTPP)
- Patrick Boylan (BlackRock)
- Anne-Christine Champion (Natixis)
- James Davies (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)