02.07.2024

FT Wilshire GLIO Listed Infrastructure Index Suite Launches

02.07.2024
FT Wilshire GLIO Listed Infrastructure Index Suite Launches

Wilshire Indexes, a leading global benchmark platform and the Global Listed Infrastructure Organisation (GLIO), the representative body for the $3 trillion listed infrastructure asset class, announce the launch of the FT Wilshire GLIO Listed Infrastructure Index Series.

Providing investors with the clearest exposure to globally listed companies which own and/or operate infrastructure assets, the FT Wilshire GLIO Listed Infrastructure Index Series is designed to capture and measure the performance of infrastructure companies that fall into 11 key sectors: Electric Utilities, Roads, Satellites, Railways, Marine Ports, Airports, Gas Utilities, Water Utilities, Renewables, Energy Transport Storage, Telecommunication infrastructure. Going beyond the pre-existing simple industry classification for company selection, the FT Wilshire GLIO Listed Infrastructure Index series uses industry accepted EBITDA, rather than revenue, to determine infrastructure relevance.

As a key asset allocation diversification tool used by global investors, infrastructure exposure can potentially offer stable and predictable cash flows supported by long-term contracts or regulation, with high barriers to entry. However, having a clear understanding of a global infrastructure’s company operations, valuation and market expectations is paramount for the investment decisions made by global institutional investors and asset managers.

Mark Makepeace, CEO of Wilshire Indexes, said: “We are delighted to collaborate with GLIO to develop the new market standard for infrastructure indexes. Global Infrastructure has evolved and as a result investors today are placing a greater emphasis on how new technologies and companies are captured, classified, and segmented across the global listed infrastructure industry. The FT Wilshire GLIO Listed Infrastructure Index Series was constructed specifically for the new market environment, built on flexible new technology by the team of index innovators.”

Fraser Hughes, CEO of GLIO, said: “The partnership with Wilshire Indexes provides GLIO with a far wider platform to promote the listed infrastructure asset class to a broad range of investors. Moreover, working in collaboration with the Wilshire Indexes GLIO specialist advisory group will ensure the index offering captures the evolution of the asset class now and in the future. The next 30 years will be a critical period for global infrastructure investment. Laying a concrete foundation now with a strong partner will assist in producing meaningful and accurate information to aid this development is an exciting prospect.”

Manoj Patel, Co-Head of Infrastructure Securities, DWS, said: “GLIO has made great progress in generating global awareness for the asset class. The partnership with Wilshire Indexes is a further step forward in the evolution of GLIO and the investment managers and listed companies it represents. Input from the specialist advisory group is a key differentiator which will enhance the classification process for company selection.”

The FT Wilshire GLIO Listed Infrastructure Index Series leverages the Global Asset Taxonomy System (GATS) to filter and isolate infrastructure related industry segments from the FT Wilshire Global Equity Market Series (GEMS). Designed to reflect the modern global economy, GATS prioritizes utility and usage by enabling the incorporation of new technologies into the overall classification structure by aligning technologies to their application and utility. This modern approach provides true flexibility and futureproof classification while still preserving the best aspects of existing taxonomies.

Source: Wilshire

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