Over the past decade, the infrastructure asset class has become an increasingly important topic for investors. In particular, the attractive investment properties and the high diversification potential of the infrastructure asset class are suitable for efficient portfolio optimization and to extend the investment opportunity set of an investor. The increasing privatization of public infrastructure has led to the emergence of numerous established listed infrastructure facilities in the last decades. Today, investors have access to these companies simply by buying a share.
A key challenge in the field of infrastructure is the definition and associated identification of a global universe of infrastructure companies. LPX AG meets this challenge with a proprietary industry classification scheme of so-called basic infrastructure companies that own or operate a physical infrastructure network.
Empirical studies suggest that a focus on basic infrastructure is a prerequisite for optimally mapping the risk and return characteristics of the infrastructure asset class. Basic infrastructure companies are characterized in particular by having a natural monopoly market position and thus optimally depict the desired investment properties of the infrastructure asset class.
LPX AG provides infrastructure indices first and foremost through the NMX Infrastructure Index Series, which are exclusively focused on a global set of basic infrastructure companies. The NMX Infrastructure Index Series are designed to serve as a representative benchmark for the infrastructure asset class. LPX AG’s research in the field of infrastructure is also used in the field of Investment Advisory. The PPFII – Global Infrastructure Network Fund is aimed at risk-averse investors who wish to benefit from the infrastructure asset class.
