Infrastructure funds have become a way around decarbonisation targets
John Dizard explores recent trends in infrastructure investments and mentions our results when it comes to performance and risk for investors in unlisted infrastructure equity:
Essentiall ...
Cited As:
CEO - Scientific Infra
Director - EDHEC Infrastructure Institute
John Dizard explores recent trends in infrastructure investments and mentions our results when it comes to performance and risk for investors in unlisted infrastructure equity:
Essentially, infrastructure investments are priced somewhere between the yield of a long duration bond and an energy equity. Using Edhec’s data to generate an infrastructure index, the “bond” has a duration of about 16 years, and a “coupon” or long-term cash yield that fluctuates between 5.5 per cent and 7 per cent.
As Blanc-Brude said: “Infrastructure has become ‘expensive’ compared to its long-term levels, but it has a great cash yield. So it still makes sense. Even so, it is exposed to risk, especially interest rate risk. Investors should be aware of that.”
| Type: | Press article |
|---|---|
| Date: | le 24/01/2020 |
| Research Cluster : | EDHEC Infrastructure Institute |
| Source : | Financial Times |
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Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the top 15 European business schools. Fully international and directly connected to the business world, EDHEC is a school for business, rather than a business school, where excellence in teaching and research focuses on innovation to stimulate entrepreneurship and creativity. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching philosophy, inspired by its award-winning research activities, focuses on “learning by doing”.
