With the launch of the NMX indices, LPX AG has created an innovation in the field of infrastructure indexing. The design of the indices is based on a proprietary industry classification scheme, which ensures the representative composition of the NMX indices focusing on global basic infrastructure companies. The index members of the NMX indices are distinguished by the fact that they are categorised as ‘basic infrastructure’ companies, defined as companies, which own or operate a physical infrastructure network. Against this background, the NMX indices are suitable for mapping the risk and return characteristics of the infrastructure asset class. A key challenge in infrastructure investing is that there is no standard industry classification scheme available that ensures the consistent identification of a global universe of listed infrastructure companies. Particularly for indexing, a reliable industry classification scheme is crucial to the design of representative performance benchmarks. The industry classification scheme developed by LPX AG enables the identification and classification of basic infrastructure companies that own and/or operate a physical infrastructure network.
Empirical studies suggest that the attractive investment properties of the infrastructure asset class are linked in particular to the respective real asset or specifically to the underlying physical infrastructure network. The focus on the basic infrastructure area offers the advantage that the inherent risk and return characteristics of the infrastructure investment class are depicted adequately. The consistent classification also leads to a high degree of comparability and transparency. This is particularly important in the field of infrastructure, since the asset class spreads across a variety of different industry sectors and subsectors.
Based on a global universe of listed basic infrastructure companies, the NMX Infrastructure Index Series is designed to reflect its risk and return characteristics. LPX AG has developed a proprietary industry classification scheme for the infrastructure asset class in order to achieve a high degree of transparency and comparability. The NMX Infrastructure Index Series is divided into the following modules:
- Size/Liquidity: NMX Composite, NMX30 Infrastructure Global
- Regions: NMX America, NMX Europe, NMX Asia / Pacific
The NMX Infrastructure Index Series are representative and reflects the entire spectrum of the infrastructure investment universe. For the global NMX indices (i.e. NMX Composite, and NMX30 Infrastructure Global) sector-weighting constraints ensure that the indices show a high degree of infrastructure sector diversification. The NMX Infrastructure Index Series are calculated in real-time and disseminated to a broad array of data vendors. The indices can also be adapted to specific customer requirements.