[mathjax] In this note, we provide some details and clarifications about our 2019Q4 index release with a focus on the performance of UK water utilities. Our 16th January release mentions that upward movements in gilt rates in the last months of 2019 led to negative returns for numerous infrastructure companies in that quarter, especially firms with very long-term cash flow...

In the 2019Q4 Index Release made on January 16, 2020, it was mentioned that South East Water suffered a negative return in the 4th quarter of 2019 due to a “revision of its financial forecast.” This statement was not accurate on two counts: The forecast in question is produced by EDHECinfra’s cash flow models and analyses but was not produced or...

Unlisted infrastructure equity gave back some of the year’s gains in the final quarter of 2019 as rising bond yields curbed DCF valuations. Despite lower risk premia, performance was also tempered by flat average revenue growth. The EDHECinfra Global Unlisted Equity Index fell 2.58% to 5228 points by year end, though that still represents a year-on-year gain of 14.06%. The...

A new paper drawn from the Natixis/EDHECinfra research chair sheds new light on the drivers of returns in private infrastructure debt. Infrastructure credit spreads remain twice as high today as in 2008, but this new research shows that only 30bps of this increase cannot be explained by changes in systematic risk factor prices....

New EDHECinfra research finds there is no financial penalty or gain (based on Return on Assets) for infrastructure firms to implement ESG management and reporting.A new paper drawn from the EDHECinfra/LTIIA Research Chair shows that Environmental, Social and Governance (ESG) scores are not negatively or positively correlated with the financial performance of unlisted infrastructure firms....

This blog was initially published in top1000funds.com. No asset is an island… Infrastructure equity prices do not exist in a vacuum. Analysing hundreds of transactions over the last 15 years, we found that they are driven by systematic risk factors, which can be found across asset classes. In other words, markets did process information rationally and average prices did reflect...