FTSE has launched the Infrastructure Index Series of nine indices diversified across six infrastructure sub-sectors, which it hopes to license for structured and other investment products.
"[We are responding] to the rapidly growing interest in this asset class, as investors seek out new sources of return and diversification," said Mike Bruno, director of index research.
The series tracks the performance of more than 800 stocks from over 40 developed and emerging markets and spans six infrastructure sub-sectors including telecomms core infrastructure; energy core infrastructure; transportation core infrastructure; infrastructure-related conveyancing services; infrastructure-related communications services; and infrastructure-related materials and engineering.
The series aims to reduce the risk of over-concentration in individual sectors. Both core infrastructure companies (deriving over 65% of revenue from infrastructure) and infrastructure-related companies (deriving over 20% of revenue from infrastructure) are included to give exposure to different investment objectives and risk levels.