Unlisted Infrastructure: Biases in Appraisal- Based Valuations?

Authors

  • ROBERT J. BIANCHI
  • MICHAEL E. DREW
  • TIMOTHY J. WHITTAKER

DOI:

https://doi.org/10.54695/bmi.148.292

Keywords:

Infrastructure Investment, Unlisted Assets, Appraisal, Bias

Abstract

This study considers the topical issue of appraisal biases in the valuation of unlisted
infrastructure returns. Using the IPD/MSCI Australia Unlisted Infrastructure Index
as a proxy for the unlisted infrastructure asset class, we report some evidence of a
calendar bias in returns (and therefore valuations) which are high and significant at
the end of the Australian financial year (ie. the June quarter). Our findings point to the
possibility of appraisal smoothing, whereby current valuations are positively related
to the same valuation of twelve months prior. Our findings on the role of appraisal
biases allows investors to better understand the risk and reward characteristics of
unlisted infrastructure.

Published

2017-05-01

How to Cite

ROBERT J. BIANCHI, MICHAEL E. DREW, & TIMOTHY J. WHITTAKER. (2017). Unlisted Infrastructure: Biases in Appraisal- Based Valuations?. Bankers, Markets & Investors, 148(01). https://doi.org/10.54695/bmi.148.292

Most read articles by the same author(s)