Risk Profiling, Pricing And Value In Infrastructure Investing (Pt.2)

In the latest instalment of Managing Director and chartered surveyor Simon Burgess' overview of infrastructure investing, he examines the factors commonly affecting pricing and value. He also considers why succinctly conveying the risk characteristics of a particular fund is so important for investors.

Read part one here.

Benchmarking

In order to classify types of infrastructure investment, the Infrastructure Company Classification Standard (TICCS) has been introduced. This certainly helps decision makers. Investors may also use listed infrastructure as a base benchmark for private investing, although typically you'd expect to see a higher return in the unlisted sector. After all, why go to the effort of undertaking extensive due diligence and negotiating efforts unless the return is likely to be ahead of the public markets?