Creating the best possible benchmarks for infrastructure investors
Achieving our goal requires meeting a number of challenges: raw data is difficult to collect, aggregate and standardise. Performance is not easily measured in a market where the number of transactions per asset is very low and prices are often kept private. Measuring risk in a meaningful way that can be compared with other classes can seem almost impossible under the circumstances.
Still, looking at current industry practices, we believe that much improvement is possible. Data can be collected and analysed, standardised and made available to academic research. Asset pricing models that take into account the evolution of market prices and allow the regular re-pricing of illiquid asset can be developed and better meet IFRS-13 standard. Portfolio measures of risk and diversification can be estimated using advanced statistical methods that can make infrastructure more directly comparable to other asset classes.
Fulfilling our mission also requires multiple skillsets. Our team includes economists, accountants, mathematicians, statisticians, computer programmers, marketing and communication specialists. A lot of talent is required to arrive at our end goal and support the development of a more transparent, better defined and better benchmarked infrastructure sector.
We wish to thank our sponsors and partners for their support in this endeavor.
Frederic Blanc-Brude, Ph.D.
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