In this supplement, we analyse ESG risks and their consequences for investors, assess the investment impact of climate risk on global infrastructure, and share our latest research findings on infrastructure investment portfolio construction and risk management.
P&I Supplement: Research for Institutional Money Management
We examine ESG risks and their implications for the investment community, the investment impact of climate risk on global infrastructure, and present our latest research insights into infrastructure investment portfolio construction and risk management.
NAV 2.0: A better asset pricing model for private infra
CAPM may be ‘one of the founding frameworks of modern finance’, but for determining the net asset value of unlisted infrastructure it is terribly inadequate. Frédéric Blanc-Brude, the director of the EDHEC Infrastructure Institute explains why and offers an alternative. Originally published in Infrastructure Investor. When reporting the NAV of unlisted assets like infrastructure using discounted cashflows, best practice consists … Read More
Low Tide: What the Data Showed About Thames Water
In this paper, we ask what investors in Thames Water – and its holding company Kemble Water – would have learned about the level of risk of their investment and its likely market value had they compared its characteristics to market and peer group data.
Risk Premia: Good times are over, now it gets harder
This is a grim headline, but with the economic shifts over the last two years, we might be seeing a more difficult market for infrastructure investment. From our perspective, we are observing some interesting shifts in the market. Firstly, despite the evidence that inflation may be cooling in major economies, there is evidence that interest rates might be higher for … Read More
Is Thames Water just a case of bad management?
Can you really lose GBP1.5Bn in a couple of quarters when investing in a water utility? Investments in infrastructure like water utilities are very often presented as ‘boring’, slow-moving, low-risk assets, that also happen to be cash cows. That latter point is true, as my colleagues have shown in previous research. The rest is wishful thinking at best, but mostly … Read More