LTIIA-EDHEC Scientific Infra joint Webinar on Diversification – Apr 25, 2024
How to achieve a well-diversified portfolio of unlisted infrastructure

On April 25th, a joint webinar was held presenting the results of the study commissioned by LTIIA to EDHEC on Achieving Diversification in Unlisted Infrastructure Investment.
The study, already available on our website, and soon to be published in the "Journal of Alternative Investments" argues that:

— "Naive" approaches of adding more assets to lower the risk are inefficient and expensive.
— Diversification through geography and sectors is limiting and not guaranteed.

and makes the case that private markets also benefit from factor investing approach widely popular in public markets: Using the risk exposures of infrastructure investments achieves better diversification with fewer assets.

In addition, with regard to the role unlisted infrastructure equity plays in strategic asset allocation, the study argues that High Factor Intensity portfolios play an important role in strategic asset allocation, significantly improving the Sharpe ratio.