Looking to the long term

In this issue’s “In Focus” section, we reflect on the challenges of effectively benchmarking the infrastructure asset class. At the Long-Term Infrastructure Investors Association (LTIIA), it appears they’ve got it covered.

Among the organisation’s objectives, according to a statement it released, is “supporting the creation of a benchmark for the infrastructure asset class for asset allocation, regulatory and risk management purposes”.

The LTIIA is a new not-for-profit initiative launched by Meridiam Infrastructure, which the Paris-based fund manager claims brings together some of the world’s “leading private investors in infrastructure”.

In addition to Meridiam, founding members include Allianz Global Investors, Skandia Mutual Life Insurance Company and the Development Bank of Japan. Other members of the organisation are expected to be revealed when it holds its inaugural meeting in October.

Aside from benchmarking, other priorities for the LTIIA include “enhancing research and analysis of infrastructure investment related topics” and “enabling integration of environmental, social and governance (ESG) aspects”.

The statement goes on to say that the organisation will also strive to ensure the infrastructure industry will have representation at relevant forums such as the G20 and B20 and multilateral development bank (MDB) meetings and workshops.

“We are looking forward to partnering with some of the leading infrastructure investment professionals to launch the Long-Term Infrastructure Investors Association,” said Meridiam founder and chief executive Thierry Deau in the statement.

“Infrastructure investment allocation is set to double over the next 10 years and this is an important step in promoting best practices within the industry,” he added.

Meridiam says it will serve as General Secretariat of the association for the first 18 months of its existence.

In the October 2014 edition of Infrastructure Investor, you will find an interview with Deau, in which he speaks in-depth about the LTIIA’s priorities and objectives.