infraMetrics®
Indices & Benchmarks
infraMetrics indices provide representative and robust measures of the risk and returns of infrastructure investments at the asset level. They are fully supported by a dedicated team, up-to-date and available on the 10th day of the month and customisable to reflect an investor's infrastructure portfolio.
Calculated, back-tested, unbiased.
infraMetrics® indices are build by pricing hundreds of private infrastructure companies each month using the latest market information available. The infraMetrics valuation technology focuses on systematic market dynamics to produce accurate, time-weighted and fair market benchmarks for strategy, risk & performance assessment.
credible data
Neither listed proxies nor appraisal-based indices provide a credible measure of risk and returns in unlisted infrastructure. Instead, infraMetrics indices provide credible, reliable data to measure risk and performance in private infrastructure markets. Modelled using only private market transaction data and recalibrated monthly, infraMetrics indices capture the true profile of unlisted infrastructure equity and debt.
USING INFRAMETRICS INDICES
for investment selection & performance monitoringInvestors with fund or investment cash flows only cannot solely rely on fund IRRs or TVPI to measure performance or select managers because they are based on stale, backward-looking and often inaccurately reported NAVs. With infraMetrics market indices, investors can use the most representative benchmark of the fund or portfolio strategy to compute the 'direct alpha' of the manager or investment team. Direct Alpha is an improved variant of the PME methodology (see link below).
- Download complete use case files including a step-by-step description of the methodology and data and a working spreadsheet showcasing the use of infraMetrics in fund selection and alpha tracking.Download the Use Case
Investors with time-weighted returns for their infrastructure investments can compare the risk-return profile of their portfolio or fund with a representative market index measuring the risks and performance of the relevant market, and compute risk, correlations, return contributions and manager outperformance relative to a market index as one does for any other asset class.
FOR STRATEGY AND RISK MANAGEMENT
Investors needing capital market assumptions or expected returns, risk and correlation measures for portfolio allocation research and analysis can use infraMetrics indices to represent the unlisted infrastructure asset class in a multi-asset setting. Thanks to it rich risk data and absence of serial correlation in the return, there is not need to artificially un-smooth appraisal data. Crucially, infraMetrics provides a true measure of expected returns: the market discount rate of future cash flows implied from the latest transactions and a multi-factor model.
Read our research on strategic asset allocation & infrastructureInvestors needing robust risk metrics cannot use reported appraisals because their typical lack of market calibration leads to very low and completely unrealistic reported levels of risk and wildly over-estimated risk-return profiles (Sharpe ratio of 4!). infraMetrics measures the ongoing value of hundreds of private infrastructure investments and the resulting market indices exhibit realistic volatility and no smoothing. As such they allow computing robust risk metrics such as VaR, Maximum Drawdown, and a believable Sharpe ratio.
infraMetrics® indices are registered with ESMA (see below) and include the widely used infra300® and infra100® families, the infraGreen, Core, Core+ families as well as hundreds of combinations of TICCS segments indices and custom benchmarks.
infraMetrics GLOBAL COVERAGE
INFRAMETRICS CONSTITUENT DATASET COVERAGE
A representative datasetSeveral years of desk-based research led to the definition of an investable universe dataset of private infrastructure companies of circa 9k uniquely identified companies in 25 countries that an investor in private infrastructure could buy or lend to.
This universe represents the state of the market over time as various governments introduced utilities privatisation programs, PPPs and new markets developed such as renewable energy and digital infrastructure. This universe is the basis for the selection of a representative constituent dataset, which includes more than 800 individual companies that are followed by a team of analysts and priced monthly thanks to the infraMetrics asset pricing technology.
Geographic Coverage
INdus. activity Coverage
business risk Coverage
Corp. StruCture Coverage
inframetrics INDEX DATA AND ANALYTICS
The infra300® and infra100™ index families are available in all major, as well as local currency and hedged returns, using either capitalisation or equal weights. All indices are updated monthly.
Each of infraMetrics index or benchmark also comes with a wealth of analytics allowing users to understand the drivers of risk and performance, extreme risk, concentration, expected returns, key risk factor, etc. of the index or benchmark.
Read the latest research
Achieving Diversification in Unlisted Infrastructure Investment: Smart Infra Portfolio Construction
WATCH THE WEBINAR
INFRASTRUCTURE: BUILDING A WELL-DIVERSIFIED PORTFOLIORequest a demo
EU Benchmarks Regulation
The Regulation (EU) 2016/1011, entered into force on 30 June 2016 and since 1 January 2018, its provisions apply and affects both EU and non-EU entities that administer indices that are used in the EU as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds. This Regulation aims to "ensure the accuracy and integrity of indices used as benchmarks in financial instruments and financial contracts, or to measure the performance of investment funds in the Union."
In compliance with EU Benchmark Regulation (BMR), Scientific Infra Pte. Ltd., the benchmark administrator for the EDHECinfra indices, establishes governance, processes, and controls for the calculation and reporting of its benchmarks.
On 20 September 2022, Scientific Infra Pte. Ltd. registered selected indices with the European Securities and Markets Association (ESMA) and is now a third-country benchmark administrator in accordance with Article 32 of the EU BMR. Scientific Infra’s registered benchmarks are listed and maintained in the ESMA Register under Article 36 of the EU BMR.
Benchmark Statements
infra300 and infra100 unlisted equity indices
infraDebt100 private debt indices
InfraGreen index family