The emergence of data centres as an innovative alternative property sector

2019 ◽  
Vol 37 (2) ◽  
pp. 140-152 ◽  
Author(s):  
Muhammad Jufri Marzuki ◽  
Graeme Newell
Keyword(s):  
Institutional Investors ◽  
Value Added ◽  
Portfolio Diversification ◽  
Content Type ◽  
Risk Return ◽  
Data Centre ◽  
Trade Offs ◽  
The Usa ◽  
Data Centres

Purpose As one of the increasingly important alternative property sectors, data centres are a technology-focused property sector that is taking advantage of the growing investment intensity in technology-related infrastructure, against the backdrop of constant innovation and advancement in technology. The purpose of this paper is to assess the preliminary risk-adjusted performance and portfolio diversification benefits of data centre Real Estate Investment Trusts (REITs) in the USA, Australia and Singapore. The strategic implications going forward for data centres as an innovative property sector in the property investment space are also highlighted. Design/methodology/approach Using monthly total returns, the average annual return, annual risk, risk-adjusted performance and portfolio diversification benefits of data centre REITs in the USA, Australia and Singapore over 2016–2018 are assessed. Optimal asset allocation analysis is performed to investigate the value-added role of data centre REITs in a mixed-asset portfolio. Findings Data centre REITs delivered strong average annual return performance, outperforming the composite REITs in all three markets. This also sees data centre REITs being riskier than the overall REIT sector due to the non-traditional and maturing status of the data centre property sector. On a risk-adjusted basis, competitive performance was recorded for data centre REITs, with data centre REITs in the USA and Singapore outperforming their respective composite REITs. This performance is also delivered with significant portfolio diversification benefits with the stock market, resulting in data centre REITs contributing to the US mixed-asset portfolios across a diverse risk spectrum. Practical implications Institutional investors are now giving increased emphasis to alternative property sectors with better risk-return trade-offs. Improved performance and diversification benefits are achieved by supplementing existing property portfolios with non-traditional property sectors with counter-cyclical risk-return profiles, one of which is the data centre property sector. This sees data centres as an important alternative property sector, having technology-based drivers and being recognised as having a clear path towards institutionalisation with the major investors in the near future. Originality/value This paper is the first published empirical research analysis that specifically assessed the preliminary performance and diversification benefits of data centre REITs in the USA, Australia and Singapore. This research enables empirically validated, more informed and practical property investment decision making by institutional investors regarding the future strategic role of the data centre property sector as an innovative sector in the institutional property investment space.

A global investment opportunity in non-listed infrastructure for institutional investors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Jufri Marzuki ◽  
Graeme Newell
Keyword(s):  
Institutional Investors ◽  
Investment Strategy ◽  
The Other ◽  
Portfolio Diversification ◽  
Content Type ◽  
Trade Offs ◽  
Smoothing Effects ◽  
Asset Class ◽  
Asset Classes

PurposeInfrastructure investment is one of the few high-calibre real alternative assets with a strong prominence in the portfolios of institutional investors, especially those with a liability-driven investment strategy. This has seen increased institutional investor interest in infrastructure for reasons such as diversification benefits and inflation hedging abilities, resulting in the substantial growth in non-listed and listed investment products offering access to the infrastructure asset class, and complementing the existing route via direct investment. This paper aims to assess the investment attributes of non-listed infrastructure over Q3:2008–Q2:2019, compared with other global listed assets of infrastructure, property, stocks and bonds.Design/methodology/approachQuarterly total returns were derived from the valuation-based MSCI global non-listed quarterly infrastructure asset index over Q2:2008–Q:2019, which were then filtered to decrease the valuation smoothing effects. A similar set of returns data was also collected for the other global asset classes. The average annual return, annual risk, risk-adjusted performance and portfolio diversification benefits for non-listed infrastructure and other asset investment classes were then computed and compared. Lastly, a constrained optimal asset allocation analysis was performed to validate the performance enhancement role of global non-listed infrastructure in a mixed-asset investment framework.FindingsGlobal non-listed infrastructure delivered the strongest average annual total return performance, outperforming the other asset classes and provided investors with total returns that linked strongly with inflation. Global non-listed infrastructure also provided investors with one of the least volatile investment returns because of its ability to ensure predictable total returns delivery. This means that on the Sharpe ratio risk-adjusted return basis, non-listed infrastructure was also the strongest performing asset. This performance was also delivered with significant portfolio diversification benefits with all assets, resulting in non-listed infrastructure contributing to the mixed-asset portfolios across the entire portfolio risk spectrum.Practical implicationsAside from better risk-return trade-offs, institutional investors are getting more secular with their portfolios for alternative assets that are able to provide other investment benefits such as predictable long-term performance and inflation-linked returns. A further improvement in performance and diversification benefits could be achieved by enriching existing investment portfolios with real alternative assets, one of which is the infrastructure asset class. For institutional investors, having exposure to and being part of the development, delivery and management of infrastructure assets are important, as they are one of the few real assets having considerable significance in the context of society, economy and investment needs.Originality/valueThis is the first research paper that empirically investigates the investment attributes of the non-listed infrastructure at a global level. This research enables empirically validated, more informed and practical decision-making by institutional investors in the infrastructure asset class, especially via the non-listed pathway. The ultimate aim of this paper is to empirically validate the strategic role of non-listed infrastructure as an important alternative asset in the institutional real asset investment space, as well as in the overall portfolio context.

The significance of residential REITs in Japan as an institutionalised property sector

2019 ◽  
Vol 37 (4) ◽  
pp. 363-379 ◽  
Author(s):  
Yu Cheng Lin ◽  
Chyi Lin Lee ◽  
Graeme Newell
Keyword(s):  
Institutional Investors ◽  
Value Added ◽  
The Other ◽  
Portfolio Diversification ◽  
Residential Property ◽  
Property Market ◽  
Content Type ◽  
Portfolio Returns ◽  
Asset Portfolio

PurposeResidential Real Estate Investment Trusts in Japan (residential J-REITs) have become an increasingly significant listed property sector recently. The purpose of this paper is to assess the effectiveness of residential J-REITs in a mixed-asset portfolio context in Japan by assessing the significance, risk-adjusted performance and portfolio diversification benefits of residential J-REITs over July 2006–August 2018. The ongoing property investment implications for residential J-REITs are also identified.Design/methodology/approachUsing monthly total returns, the risk-adjusted performance and portfolio diversification benefits for residential J-REITs over July 2006–August 2018 are assessed. An asset allocation diagram is employed to assess the role of residential J-REITs in a mixed-asset portfolio context in Japan.FindingsResidential J-REITs generally delivered superior risk-adjusted returns compared with the other sub-sector J-REITs, stocks and bonds in Japan over July 2006–August 2018, with desirable portfolio diversification benefits in the full mixed-asset portfolio context. Importantly,residential J-REITs are observed as strongly contributing to the mixed-asset portfolio context in Japan across the portfolio risk spectrum, particularly in a post-GFC context. This also reflects that residential J-REITs provide high portfolio returns and strong portfolio diversification benefits in a mixed-asset portfolio context in Japan.Practical implicationsResidential J-REITs are effective and liquid residential property investment exposure in Japan. The results highlight the strong risk-adjusted performance of residential J-REITs in Japan’s mixed-asset portfolio context. This suggests institutional investors, particularly Japan institutional investors, should consider including residential J-REITs in their mixed-asset portfolios, as residential J-REITs are seen as a compelling investment product co-existing alongside the other sub-sector REITs and major asset classes in institutional investor portfolios in the context of Japan. This also confirms the effectiveness of institutionalised residential J-REITs. Given the solid residential property market fundamentals in Japan, an increased level of the institutionalisation of residential J-REITs can be expected.Originality/valueThe study is the first study to assess the effectiveness of residential J-REITs, via assessing the significance, risk-adjusted performance and portfolio diversification benefits of residential J-REITs and their role in a mixed-asset portfolio context in Japan. This research enables more informed and practical property investment decision making regarding the value-added and strategic role of residential J-REITs as effective and liquid residential property investment exposure in Japan, as well as an increasingly institutionalised property sector going forward.

The significance and performance of US commercial property in a post-GFC context

2017 ◽  
Vol 35 (6) ◽  
pp. 575-588 ◽  
Author(s):  
Muhammad Jufri Marzuki ◽  
Graeme Newell
Keyword(s):  
Institutional Investors ◽  
Investment Strategy ◽  
Portfolio Diversification ◽  
Investment Opportunity ◽  
Property Market ◽  
Content Type ◽  
Commercial Property ◽  
The Us ◽  
Asset Portfolio

Purpose US commercial property is an important investment opportunity for institutional investors. The purpose of this paper is to assess the significance, risk-adjusted performance and portfolio diversification benefits of US commercial property (both direct property and REITs) in a mixed-asset portfolio over 1994-2016. The 2009-2016 post-GFC recovery of US commercial property is specifically highlighted. Design/methodology/approach Using quarterly total returns, the risk-adjusted performance and portfolio diversification benefits of US commercial property over 1994-2016 are assessed. Efficient frontier and asset allocation diagrams are used to assess the role of US commercial property in a mixed-asset portfolio. Sub-period analysis over 2009-2016 is used to assess the post-GFC recovery of US commercial property. Findings US commercial property delivered mixed results over 1994-2016; direct property gave the best risk-adjusted performance, while US-REITs performance was hampered by high volatility. Since the GFC, both forms of US commercial property have delivered stronger risk-adjusted returns with improved diversification benefits, especially in the context of an inter-property investment strategy. However, US-REITs did not improve their diversification benefits with the stock market over this period. This sees US commercial property as an important component in the US mixed-asset portfolio in the post-GFC environment, with a much stronger role exhibited by US direct property in the post-GFC mixed-asset portfolio. Practical implications US commercial property emerged from the GFC as a stronger and more robust property investment opportunity, with both the direct property and US-REITs fully recovered to their pre-GFC performance level in 2012. The results highlight the major role of US commercial property in a US mixed-asset portfolio in the post-GFC context. The superior risk-adjusted performance of US commercial property sees both direct and listed US commercial property contributing significantly to the mixed-asset portfolio throughout the entire risk-return spectrum, particularly direct property. Given the increased capital flows into the US property market since the GFC, this is particularly important as many investors, both local and international, use direct and listed property investment opportunities as conduits for their significant US commercial property exposure. Originality/value This paper is the first published empirical research analysis that specifically assessed the post-GFC performance and role of US commercial property in a mixed-asset portfolio. This research enables empirically validated, more informed and practical property investment decision making by institutional investors regarding the strategic role of US commercial property in a mixed-asset portfolio in a post-GFC context.

Unveiling the diversification benefits of Islamic equities and commodities

2018 ◽  
Vol 44 (6) ◽  
pp. 830-850 ◽  
Author(s):  
Muhammad Rizky Prima Sakti ◽  
Mansur Masih ◽  
Buerhan Saiti ◽  
Mohammad Ali Tareq
Keyword(s):  
Crude Oil ◽  
Time Series Data ◽  
Portfolio Diversification ◽  
Series Data ◽  
Content Type ◽  
Trading Partners ◽  
The Usa ◽  
Portfolio Managers

PurposeThe purpose of this paper is to examine the extent to which the IndonesianShariahcompliant investors can benefit from the portfolio diversification with the Islamic indices of its trading partners and selected commodities such as gold, crude oil, and cocoa.Design/methodology/approachThe authors use daily time series data covering both Islamic and commodity indices starting from June 4, 2007 until December 30, 2016 by the application of multivariate-generalized autoregressive conditional heteroscedastic and continuous wavelet analysis.FindingsThe findings tend to indicate that investors with exposure inShariahcompliant indices of Indonesia and wanting to gain more diversification benefits should invest either in the USA or India Islamic equity. Instead, the greater benefits will be obtained byShariahcompliant investors if they invest in the USA Islamic indices during long-term investment horizons. If investors want to invest in medium investment horizons, investing in India Islamic equity is a viable option. The findings further suggest that gold has a role of diversification benefits as a “safe haven” instrument for investors. It is advisable for the investors that have exposure in commodities (gold, crude oil, and cocoa) and want to invest in Indonesian Islamic equity, they should hold the portfolio for not more than 16 days to gain diversification benefits.Originality/valueThe results of this study are expected to have crucial implications for the IndonesiaShariahcompliant investors and portfolio managers because it will help them to understand portfolio diversification benefits with different stock holding periods or investment horizons.

The emergence of student accommodation as an institutionalised property sector

2018 ◽  
Vol 36 (6) ◽  
pp. 523-538 ◽  
Author(s):  
Graeme Newell ◽  
Muhammad Jufri Marzuki
Keyword(s):  
Asset Allocation ◽  
Institutional Investors ◽  
Pension Funds ◽  
Portfolio Diversification ◽  
Portfolio Risk ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
Asset Portfolio ◽  
The Uk

Purpose Amongst the alternative property sectors, student accommodation has recently become an important institutionalised property sector for pension funds and sovereign wealth funds in the global property landscape, particularly in the UK. The purpose of this paper is to assess the significance, risk-adjusted performance and portfolio diversification benefits of student accommodation in a UK property and mixed-asset portfolio over 2011–2017. Drivers and risk factors for the ongoing development of the student accommodation sector are also identified. The question of student accommodation being a proxy for residential property exposure by institutional investors is also assessed. Design/methodology/approach Using annual total returns, the risk-adjusted performance and portfolio diversification benefits of UK student accommodation over 2011–2017 is assessed. Asset allocation diagrams are used to assess the role of student accommodation in a UK property portfolio and in a UK mixed-asset portfolio for a range of property investor types. Findings UK student accommodation delivered superior risk-adjusted returns compared to UK property, stocks and REITs over 2011–2017, with portfolio diversification benefits. Importantly, this sees UK student accommodation as strongly contributing to the UK property and mixed-asset portfolios across the entire portfolio risk spectrum and validating the property industry perspective of student accommodation being low risk and providing diversification benefits. Student accommodation is also not seen to be a proxy for residential exposure by institutional investors. Practical implications Student accommodation is an alternative property sector that has become increasingly institutionalised in recent years. The results highlight the important role of student accommodation in a UK property portfolio and in a UK mixed-asset portfolio. The strong risk-adjusted performance of UK student accommodation compared to UK property, stocks and REITs over this timeframe sees UK student accommodation contributing to the mixed-asset portfolio across the entire portfolio risk spectrum. This is particularly important, as many investors (e.g. pension funds, sovereign wealth funds) now see student accommodation as an important property sector in their overall portfolio. Originality/value This paper is the first published empirical research analysis of the risk-adjusted performance of UK student accommodation, and the role of student accommodation in a UK property portfolio and in a UK mixed-asset portfolio. This research enables empirically validated, more informed and practical property investment decision making regarding the strategic role of student accommodation as an alternative property sector in a portfolio.

Integration of Islamic bank specific risks and their impact on the portfolios of Islamic Banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Alamdar Ali Shah ◽  
Raditya Sukmana ◽  
Bayu Arie Fianto
Keyword(s):  
Risk Management ◽  
Portfolio Diversification ◽  
Islamic Banks ◽  
Content Type ◽  
Management Framework ◽  
Risk Return ◽  
Islamic Bank ◽  
Risk Management Framework ◽  
Impact Risk ◽  
Conventional Banks

Purpose This study aims to propose a risk management framework for Islamic banks to address specific risks that are unique to Islamic bank settings. Design/methodology/approach A unique methodology has been developed first by exploring the dynamics and behaviors of various risks unique to Islamic banks. Second, it integrates them through a series of diagrams that show how they behave, integrate and impact risk, returns and portfolios. Findings This study proposes a unique risk-return relationship framework encompassing specific risks faced by Islamic banks under the ambit of portfolio theory showing how Islamic banks establish a steeper risk-return path under Shariah compliance. By doing so, this study identifies a unique “Islamic risk-return” nexus in Islamic settings as an explanation for the concern of contemporary researchers that Islamic banks are more risky than conventional banks. Originality/value The originality of this study is that it extends the scope of risk management in Islamic banks from individual contract-based to an integrated whole, identifying a unique transmission path of how risks affect portfolio diversification in Islamic banks.

Informal learning behaviors and the role of workplace support: preliminary findings from an India-USA workforce

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nidheesh Joseph ◽  
E. Sownthara Rajan
Keyword(s):  
Informal Learning ◽  
Organizational Support ◽  
Amazon Mechanical Turk ◽  
Learning Behaviors ◽  
Content Type ◽  
Workplace Support ◽  
Job Support ◽  
The Usa ◽  
Job Role

Purpose (mandatory) The purpose of this paper is to study engagement of employees in informal learning behaviors (ILBs) and to understand the role of workplace support (organizational support, supervisor support and job support) in facilitating such behaviors. Design/methodology/approach (mandatory) The study uses descriptive design with data collected through voluntary non-probability sampling method of 58 employees from India and the USA through Amazon Mechanical Turk. Findings (mandatory) Preliminary findings suggest that 81% of the employees are likely to engage in ILBs and 65.5% agreed to have received workplace support. Employees from India rate their workplace support as higher and are more likely to engage in ILBs than those from the USA. Originality/value (mandatory) This study contributes to workplace informal learning literature and highlights the need for more studies on workforce ILBs across multiple countries and job role variations.

The role of conferences in doctoral student socialization

2018 ◽  
Vol 9 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Aliya Kuzhabekova ◽  
Aizhan Temerbayeva
Keyword(s):  
Doctoral Students ◽  
Professional Socialization ◽  
Doctoral Student ◽  
Content Type ◽  
The Usa ◽  
Conference Attendance ◽  
Using Data ◽  
Student Socialization ◽  
Doctoral Student Socialization

PurposeThe purpose of this paper is to explore the role scholarly conferences play in professional socialization of doctoral students.Design/methodology/approachUsing data from 20 interviews on conference experiences of student attendees of a North American conference in social sciences, as well as on the conference experiences of students from various disciplines at a private research intensive university in the USA, the authors explored how research identity of doctoral students change over time as result of participation in conferences, how the process of socialization is shaped by advisers and peers and how the experiences vary depending on the characteristics of the participants.FindingsThe authors found that conferences play an important role in socialization, and the effect from conference attendance increases with the number of conferences attended. The study also showed that students undergo several stages in the process of their socialization, throughout which they develop greater agency and independence as scholars, as well as a more positive image of themselves as researchers, and become more strategic in their behavior. The results also point to the key role of adviser and peers in the process of socialization, whereby the former can provide direction and orientation, while the latter may offer support and opportunities for mutual learning or future collaboration. The authors also found a notable difference in the support provided by advisers between teaching and research-oriented universities.Originality/valueThe paper applies doctoral student socialization theory to the analysis of informal doctoral experiences outside the program of study.

End-to-end sustainability: trade-offs, consumers’ perceptions and decisions beyond B2C interfaces

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Camila Lee Park ◽  
Mauro Fracarolli Nunes ◽  
Alessio Ishizaka
Keyword(s):  
Supplier Selection ◽  
Word Of Mouth ◽  
Corporate Image ◽  
Content Type ◽  
Corporate Credibility ◽  
Trade Offs ◽  
Modern Slavery ◽  
Selection Decisions ◽  
The Usa ◽  
The Impact

Purpose This study aims to examine the extended effects of corporate (ir)responsibilities in supply chains. More specifically, the authors compare the impact of social and environmental initiatives and failures in the reputational capital of supply chain partners. The authors investigate how (and if) companies’ decisions to prioritize different sustainability dimensions in their supplier selection processes (i.e. sustainability trade-offs) affect consumers’ perception of corporate image, corporate credibility-expertise, attitude towards the firm and word-of-mouth. Design/methodology/approach The authors conducted three behavioural vignette-based experiments with 562 participants from the USA, relying on analysis of variance and t-tests analyses. Findings Results show that consumers perceive social irresponsibility cases as more severe than environmental ones in suppliers’ operations, penalizing buyers’ corporate image, corporate credibility-expertise and word-of-mouth. Corporate image, attitude towards the firm and word-of-mouth also have significant differences between social and environmental trade-offs. Statistically significant differences were also found between scenarios that portrayed the discovery of an irresponsible action and ones that reinforced the previous irresponsible practice in companies’ suppliers. Practical implications When types of irresponsibility practices are presented, the discovery of child labour and modern slavery conditions in suppliers damage how consumers perceive the company on corporate image and their attitude towards the organization and how they will spread word-of-mouth, reinforcing the importance of considering sustainability issues when making supplier selection decisions. Originality/value The study contributes to the understanding of how companies are perceived by their consumers regarding irresponsible practices and their impact on firms’ supplier selection decisions. Furthermore, data suggests that consumers might hierarchize sustainability dimensions, perceiving social irresponsibility cases as more severe than environmental irresponsibility ones.

scholarly journals Agro-industrialisation and financial intermediation in Nigeria

2020 ◽  
Vol 11 (3) ◽  
pp. 443-456 ◽  
Author(s):  
Ngozi Adeleye ◽  
Evans Osabuohien ◽  
Simplice Asongu
Keyword(s):  
Agricultural Sector ◽  
Explanatory Power ◽  
Value Added ◽  
Annual Data ◽  
Industrial Output ◽  
Industrial Growth ◽  
Content Type ◽  
Long Run ◽  
The Government

PurposeThe study aims to analyse the role of finance in the agro-industrialisation nexus in Nigeria using annual data on manufacturing value added, agricultural value added and volume of finance availed to the agricultural sector from 1981 to 2015.Design/methodology/approachTo establish the presence of a long-run relationship, the error correction model and bounds cointegration techniques are employed. Likewise, the model is augmented to test whether the associated relationship between industrial output and agricultural output depends on access to finance by farmers with the inclusion of an interaction term.FindingsSome salient contributions to the literature are as follows: agriculture and finance are strong and positive predictors of industrialisation in the long run; in the short run, past realisations of industrial output and finance have significant asymmetric effects on industrial output; the explanatory power of agriculture decreases with the growth of the financial system; and the long-run results validate the role of finance in the agro-industrialisation nexus.Originality/valueGiven these findings, achieving growth in the agricultural sector that will induce desired industrialisation should be prioritised by the government through agencies such as the central bank, financial intermediaries and other stakeholders with a view to making agricultural financing a major concern for sustainable domestic consumption and industrial growth.

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