Macquarie Bank and global index provider FTSE Group (FTSE) has launched a global infrastructure index, comparing the infrastructure sector against equity market benchmarks since 2000.
Calculated by FTSE, the Macquarie Global Infrastructure Index (MGII), is based on 258 stocks currently in the FTSE Global Equity Index Series, comprising companies principally involved in the management, ownership and or operation of infrastructure and utility assets. The index provides investors and asset managers with the means of benchmarking infrastructure using a broader than currently available definition of a fast growing asset class. The index incorporates sub-indices constituting listed infrastructure entities from geographic regions as well as a range of sub-indices divided by sector such as utilities and transportation services.
David Rickards, Global Head of Equities Research at Macquarie Bank, said since the beginning of 2000, the overall MGII has performed well ahead of the FTSE Global All Cap Index with a 10.4% compound return, compared with a - 0.4% compound return for world equities. "Over the past five years, the index has increased in size from $US465 billion to $US1,207 billion, demonstrating the increasing international awareness and support for infrastructure as an asset class," Rickards said.
"The strength of the infrastructure sector is that it is also not susceptible to the boom bust that can affect broader global equities; this was reflected between 2000-2002 when FTSE Global All Cap Index declined by 46%, yet the MGII declined by just 14%."