Infrastructure assets gave back some of the year's gains in the final quarter of 2019 as rising bond yields curbed DCF valuations, but still registered strong gains over the whole year, according to EDHECinfra's latest quarterly report on the performance of unlisted global infrastructure.
The EDHECinfra Global Equity Index fell 2.58 percent to 5228 points by year end, though still representing a year-on-year gain of 14.06 percent. The average global infrastructure equity premium is now slightly less than 5 percent, down from 5.5 percent two years ago and 8–9 percent before 2012.
“The last quarter reminds us that infrastructure equity is highly exposed to interest rate risk,” noted Abhishek Gupta, investment solution specialist at EDHECinfra. “You can see this in the index's 16-year duration.”
Strong performers were supported by cash flow growth or their more robust, contracted business model. For instance, the IH-635 PPP road project in the United Stat