Canadian Investment Review: Is it time for pension plans to do away with absolute return benchmarks in infrastructure?

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Canadian Investment Review: Is it time for pension plans to do away with absolute return benchmarks in infrastructure?

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July 11, 2020 1:00 am
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 |Nataliia GAIDARENKO

Based on EDHECinfra paper, Canadian Investment Review outlines the main points raised in the Paper and highlights why infrastructure investors should abandon absolute return benchmarks.

“Overall, it’s key for asset owners to understand how infrastructure assets are exposed to risk. Doing so will involve documenting these risks and benchmarking performance relative to a market index or a custom benchmark that represents the risks. “With proper benchmarks, numerous applications are possible that will bring unlisted infrastructure forward as a fully-fledged asset class. Courageous and insightful investors will opt for transparency and relevance by letting go of absolute benchmarks that are now outdated.”

Read the full review here.