Pick infrastructure for lower volatility, higher payouts – EDHEC

Privately held infrastructure firms exchibit lower revenue volatility, higher payouts and less correlation to the business cycle, according to the findings of research by Edhec Instrastructure Institute-Singapore (EDHECinfra).

The conclusion comes after testing related infrastructure firms’ business models, and their equity payout behaviour, based on the collection of data going back 15 years, including cashflows of more than 330 UK infrastructure firms.

Dr Frédéric Blanc-Brude, director of EDHECinfra, said: “The significant difference of revenue volatility between infrastructure and non-infrastructure firms, strongly suggest that infrastructure firms are in a league of their own when it comes to both their business model and their dividend payout behaviour.”

Click here to read the full research report:

edhec_private_infrastructure_payouts

 

 

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

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