The Ascend Aircraft Investment Index (AAII) is an innovative new index which benchmarks the risks and rewards of aircraft leasing investments against those of other industries, such as real estate and precious metals.
The aircraft leasing industry now accounts for nearly 40% of the global, in-service fleet. The industry continues to expand rapidly, requiring hundreds of billions of US dollars in capital investment. The AAII delivers a credible industry benchmark to help potential investors make informed decisions when comparing aircraft leasing and its alternatives.
The Ascend Aircraft Investment Index shows that:
- Despite the amount of volatility in the aviation market over the past 20 years, investment in aircraft leasing has shown remarkably stable returns
- On a risk reward basis, investment in aircraft has outperformed many other asset classes including shipping and precious metals
- Aircraft leasing has shown low correlation with indices that reflect the general economy such as the S&P500
- In 2013 and 2014 we expect aircraft leasing companies to purchase a total of around 1,400 aircraft at a total value of approximately $80bn and will require around $20bn in equity capital to fund this
- Leasing companies are actively targeting insurance companies, pension funds and other long term investors to create co-investment opportunities that will contribute towards this $20bn
These results are for a passive investment strategy. Any investment strategy can be modeled. Please contact us to discuss creating a bespoke index to reflect your investment options.
Call us today to arrange a "no-obligation" discussion with our specialist risk advisory team.
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Aircraft Ratings is another pioneering step in the right direction for Ascend. This tool is not only useful to understand what the market is seeing in terms of values and trends in the industry but also as a way of testing and benchmarking our own views and opinions.
Dick Forsberg, Head of Risk & Strategy