Sectoral Aspects of Global Infrastructure Investment

Jun 15, 2015

As the MSCI Global Quarterly Infrastructure Asset Index grows in breadth and depth it provides increasing insights into the performance of the Infrastructure Asset Class, globally.  In this Research paper, we focus on two broad areas related to sector-specific nuances of the asset class. First, the differential performance and volatility of the Transport and Power sectors, the two dominant streams of activity in the index.  Second, a comparison of unlisted and listed infrastructure, showing that many of the performance differences between the two indices can be explained by sector weighting.  By matching the quarterly sector weights in the unlisted index to create a listed proxy, we see strong evidence that sectoral composition go a long way to explaining differential performance patterns of the underlying indexes.