We examine two issues relevant to diversification and infrastructure investment: portfolio construction and what it means to build a “well-diversified” portfolio of unlisted infrastructure equity; strategic asset allocation, examining the potential diversification benefits gained by adding infrastructure to the asset classes that make up a typical portfolio.
Q4 2023 Revenue Forecast Updates
The year ended much like 2022, inflation was still above most central banks’ targets, Interest rates were significantly higher than 18 months previously. However, the rate of increase in interest rates has slowed. With ongoing geopolitical turmoil, we view that interest rates are likely to stay elevated for some time. Given this scenario, we anticipate less extreme volatility from the … Read More
Report Q1 2023 Revenue Forecast Updates
Central banks continue to tighten monetary policy in the UK, Europe and the US. As of March 2023, the Federal Reserve has increased interest rates nine times since March 2022 (Smith & Duguid, 2023). The European Central Bank also raised interest rates in March, albeit from a lower base, despite ongoing concern about financial stability in the region in the … Read More
Infrastructure Strategy 2023 – Building the Green Hydrogen Economy
The BCG-EDHECinfra study of the risks facing infrastructure investors and the returns that their investments generated found that asset owners did better than asset managers in 2022. The study also found that success in the current environment requires fresh approaches to investing and value creation.
Q4 2022 infrastructure update – inflation, interest rate rises and energy crisis: what happened to infrastructure in 2022?
In a year where global stocks and bonds lost more than $30tn[1] on account of high inflation, rising interest rates, and the ongoing war in Ukraine, unlisted infrastructure equity has fared well. Private infra debt finished the year slightly better off than corporate bonds but still heavily impacted by the rise of market yields. The infra300® index, which tracks a … Read More
Report Q4 2022 Revenue Forecast Updates
The Q4 2022 release of the EDHECinfra indices presents our updated views in the light of recent government intervention in the European and UK energy market due to the ongoing gas supply disruption. This report updates the Q3 2022 report and is presented following the TICCS® taxonomy of infrastructure companies. Over the course of the fourth quarter of 2022, European … Read More