Since 2014
Infrastructure Indices: Comparative Analysis of Performance, Risk and Representation of Global Listed Proxies
Journal of Contemporary Issues in Economics and Business
View Archive Info| Field | Value | |
| Title |
Infrastructure Indices: Comparative Analysis of Performance, Risk and Representation of Global Listed Proxies
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| Creator |
Lambrev, Dimitar; PhD Student, International Joint Cross-Border PhD Program, University of Applied Sciences Burgenland, Austria
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| Subject |
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infrastructure, index, benchmarking, listed equity, performance analysis |
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| Description |
Faced with historically low interest rates, investors are looking further into illiquidassets such as infrastructure in search of alternative sources of income, betterdiversification and a long-term investment perspective. This paper analyzes the keyperformance and risk characteristics of the EDHECinfra global unlisted infrastructureequity index when compared to the main global listed infrastructure indices duringthe 2001-2018 period. The descriptive statistics method is applied to determinethe representation of the benchmarks commonly used by investors consideringinfrastructure investments. For the purpose of the market beta analysis, the MSCIWorld index is also used as a global equities proxy in a linear regression model.Listed infrastructure is often considered as an income-yielding and defensiveequity strategy that provides a liquid proxy for alternative assets (e.g.,infrastructure). However, the paper results indicate that the net effect of investingin listed infrastructure remains questionable, even unknown. Recent empiricalfindings demonstrate divergent stands on benchmarking infrastructure. Thehigh correlation of the main listed infrastructure indices with the broad equityindex MSCI World and the inconsistency of research results thus far suggest thatinfrastructure is an ill-defined investment category within the listed infrastructurespace with lacking reliable and useful benchmarking. The commonly usedand far-reaching classification of companies with broad industrial nature andbusiness activities that are less relevant to infrastructure may affect the overallrepresentation of the legitimate characteristics of the infrastructure asset classamid the growing enthusiasm among investors.
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| Publisher |
Faculty of Economics and Business
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| Contributor |
—
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| Date |
2019-09-15
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://ng-epf.si/index.php/ngoe/article/view/207
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| Source |
Naše gospodarstvo/Our economy; Vol 65, No 3 (2019); 23-39
2385-8052 0547-3101 |
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| Language |
eng
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| Relation |
http://ng-epf.si/index.php/ngoe/article/view/207/182
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| Rights |
Copyright (c) 2019 Naše gospodarstvo/Our economy
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