The Infra300® Equity Index is a comprehensive global index representing the monthly total return of 300 unlisted infrastructure companies. This ESMA-registered market benchmark for private infrastructure investments is meticulously designed to provide an accurate reflection of the performance of the unlisted infrastructure sector by tracking various TICCS® segments, ensuring a broad and detailed representation of the unlisted infrastructure universe.
Quarter-over-quarter, as of 30 June 2024, the index had a market capitalisation of USD 290 billion and saw a 0.4% total return (USD, equal weights). Market capitalisation fell by $4.9 billion from the previous quarter and $11 billion from last year.
Renewable Power and the Power Generation x-Renewables sectors were the main return drivers, adding 0.23% and 0.13% respectively. Companies in these two sectors have outperformed others with an average total return of 1.12% and 1.37% respectively.
Contracted companies had the highest contribution to the index returns, reflecting their safe revenue streams from secured offtake agreements and inflation indexation, contributing 0.29% to the index.
With regard to index constituent changes, Steag State Power Inc was replaced last quarter by Northwind Power Development and Thames Water was removed effective 1st July, 2024.
The economic slowdown, coupled with upcoming general elections in Europe, is causing investors to be cautious. In this quarter, we observed economic signs pointing to a slowdown in both the US and Europe. Ongoing and upcoming elections in various countries will have implications for infrastructure revenues. These impacts range from inflation movements affecting contracted infrastructure assets (BR1), tariffs set for regulated entities (BR3), and market dynamics influencing merchant infrastructure assets (BR2). Policy changes could either halt or progress infrastructure investment expansion. The Infra300 index has significant representation from each of the three business models and will be particularly sensitive to political changes.
