Does infraMetrics® follow any compliance standards?
Answer
infraMetrics® is designed to comply with international valuation and investment standards.
Our approach aims to track a representative sample of the principal market in compliance with IFRS 13 standards, where most buyers and sellers of infrastructure equity or debt are active, and to calibrate valuation models using the latest available market data (primary and secondary prices). infraMetrics® also relies on a consistent valuation methodology (the income method) and a clearly defined unit of account in both equity (the company equity and quasi-equity) and debt segments (senior debt instruments) of the private infrastructure market.
All of our unlisted equity and debt indices also comply with IOSCO Principles for Financial Benchmarks. Appropriate governance arrangements are in place to protect the integrity of the Benchmark determination process and to address the below areas:
Conflicts of Interest:
A single entity is responsible for all aspects of the benchmark determination process.
No activities related to the benchmark determination are undertaken by third parties.
There are no conflicts of interest related to the entity responsible for the benchmark determination process.
A control framework is in place to monitor and validate the inputs and outputs of the benchmark determination process.
Quality and Transparency of our Benchmarks:
The data used to construct the infra300 is based on prices formed by the competitive forces of supply and demand in the 25 most active markets and are anchored by hundreds of observable transactions entered at arm’s length between buyers and sellers in the market for unlisted infrastructure equity.
The benchmark is built based on clear rules regarding the hierarchy of data inputs and the exercise of expert judgment used for the determination of infra300 index.
Each publication of the infra300 index is the object of a concise explanation sufficient to facilitate a subscriber’s or market authority’s ability to understand how the index determination was developed, as well as a concise explanation of the extent to which and the basis upon which judgment, if any, was used in establishing a determination. This data is published on the infraMetrics website each quarter.
Scientific Infra & Private Assets conducts periodic reviews (annual and bi-annual) of the conditions in the underlying market for unlisted infrastructure equity to determine whether it has undergone structural changes that might require changes to the design of the methodology.
Quality of the Methodology
Scientific Infra & Private Assets provides a detailed methodology and technical documentation of the approach and methods used to make infra300 determinations. The documentation allows stakeholders to understand how the infra300 is derived and to assess its representativeness, relevance, and appropriateness.
The rationale of any proposed material change in the infra300 methodology and procedures for making such changes are made publicly available.
Guidelines for data contributors are available.
Accountability
Stakeholders may submit complaints concerning specific infra300 determinations.
Scientific Infra & Private Assets preserves an audit trail and cooperates with regulators at their demand.