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A calculated index is based on modelled valuations of underlying companiesuses prices that are computed for the purpose of creating the index, instead of the valuations contributed by asset managers or owners. EDHECinfra indices are calculated and follow a consistent and robust valuation methodology for all the assets in the index universe, thus eliminating all biases.

Some of the key advantages of calculated indices include:

• Defined universe with appropriate representation of assets
• Consistent modelling methodology over time which is calibrated to market trends
• Clearly explain the valuation of all assets in the universe
• Allow for sophisticated analysis

Calculated indices benefit from greater methodological transparency and consistency. They use prices that are model-driven i.e. average market prices that representative investors would tend to pay rather than what individual investors actually pay. In a highly illiquid and segmented market this can make a significant difference.