Abstract
Infrastructure investments can play several important roles in the portfolio, from generating yield and income to creating diversification and matching or hedging liabilities. They are also relatively large and illiquid and, as such, present valuation and risk measurement challenges. Stale, biased, and limited contributed data have long left investors and regulators only able to make educated guesses. Recent developments in data collection and asset pricing techniques for private assets allow granular market-based valuations and risk-adjusted return calculations. This article introduces standard definitions for infrastructure investments and styles as well as a modern and robust asset pricing framework for the production of fair valuations and useful risk measures. It also presents stylized empirical facts based on 20 years of data for the risk-adjusted performance of unlisted infrastructure equity, systematic and extreme risks, asset allocation, and fund manager selection.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
