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Infra-Red, Infra-Black: Maturing infrastructure asset class needs performance benchmarks that tell the tale
The investment characteristics of infrastructure are attracting a surge of capital to the asset class, with long-standing Australian and Canadian investors now being joined by pension funds and sovereign investors from the United States, Asia, Europe and the Middle East. As the institutional market grows, demand rises for tools to better monitor and benchmark the asset class, particularly from the perspective of risk managers and capital allocators.
It is in the context of this demand that significant improvements are being made in the benchmarking of infrastructure performance across both listed and unlisted markets. The increased availability of listed and unlisted indexes increases the insights into the performance of the asset class, as illustrated by the practice of reweighting public infrastructure indexes to match the sectoral weights of the private markets.
For a number of years, a range of listed infrastructure indexes has been available. More recently,