To read this full article you need to be subscribed to Institutional Investing in Infrastructure
Short on Benchmarks, Long on Expectations: Despite Lack of a Performance Standard, Infrastructure Offers a Unique Role in Portfolios
For investors looking to get their feet wet in the infrastructure pond, the lack of a clear benchmark to measure asset performance has been a stumbling block. Nonetheless, those who have taken the plunge into the infrastructure pool tend to depend on their own expectations — or those of other investors who have gone before them — to gauge their success.
“Benchmarks are very important to most institutional clients,” says Benjamin Abramov, Canadian head of private markets research and consulting with Aon Hewitt in Toronto and former private markets investor at the University of Toronto Endowment Fund. “To most investors, it’s important to have a historical track record on the asset class to determine the risk and return characteristics and observe how it correlates to other asset classes. When it comes to benchmarks, infrastructure investing is 10 to