P&I: Japan’s GPIF-commissioned report finds gaps in infrastructure assets data

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P&I: Japan’s GPIF-commissioned report finds gaps in infrastructure assets data

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January 7, 2025 4:34 pm
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 |Carolyn Essid

A report commissioned by Japan’s Government Pension Investment Fund (GPIF) and conducted by Scientific Infra & Private Assets analysing data from 20 infrastructure assets, found that the current data reporting practices of fund managers for infrastructure assets fail to provide sufficient information for asset owners to accurately assess fair value and manage portfolio risks.

Frederic Blanc-Brude, Director of the EDHEC Infrastructure & Private Assets Research Institute, commented:

Everyone in the industry knows that the reported NAVs are wrong. If you ask a room full of investors, this is common knowledge. But this is increasingly unacceptable given the amounts at stake”.

Some asset managers tend to prefer to keep information to themselves and only share the bare minimum with limited partners even if they have resources to gather the data“.

This means that the LP has zero information on the current market value of these investments“.

The report shows that a modern approach to price assets and calibrate discount rates using updated market information will allow investors to measure fair value on an ongoing basis “quite well at the portfolio level and understand the risks and the return drivers of these investments”.

For an investor like GPIF this is useful because the information they receive from fund managers does not allow them to do that.” 

Read the full article.