scholarly journals INVESTMENT STYLES OF REIT PROPERTY PORTFOLIOS

2021 ◽  
Vol 19 (17) ◽  
Author(s):  
Chor Heng Tan ◽  
Kien Hwa Ting
Keyword(s):  
Portfolio Management ◽  
Investment Decision ◽  
Value Added ◽  
Management Approach ◽  
Investment Style ◽  
The Real Estate ◽  
Qualitative Approaches ◽  
Investment Decision Making ◽  
Investment Portfolios ◽  
Investment Styles

Investment style, comprising generic-style and specific-style, is the real estate investment management approach adopted by REIT management in guiding the construction of their portfolios. These portfolios would have distinctive return and risk performance reflecting the stated risk and return underlying the investment vision. Using quantitative and qualitative approaches, this study identified the investment style of each M-REIT listed on Bursa Malaysia. Using the generic-style criteria and analysis, M-REITs are found to have pursued passive and value strategies aided by a top-down approach to their property portfolio management. Whilst results of the specific style analysis show that core portfolios have produced a lower risk-return ratio compared to value-added and opportunistic portfolios. These findings will benefit investors by guiding their investment decision making in constructing their investment portfolios and also in deciding ways to achieve diversification.

The Need to Decarbonise Buildings: Reasons, Challenges and Objectives

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Paloma Taltavull ◽  
Raúl Pérez ◽  
Francisco Juárez
Keyword(s):  
Investment Decision ◽  
Decision Making Process ◽  
Investment Portfolio ◽  
Energy Characteristics ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Investment Decision Making ◽  
The Cost ◽  
The Eu

The article addresses the relevance of the real estate sector in climate change control through the decarbonisation of buildings. It presents a case study of an investment portfolio artificially constructed from randomly selected buildings in different Spanish cities and with different uses, evaluated in terms of their structural and energy characteristics. The CRREM tool is used to evaluate the decarbonisation horizon of the buildings between 2018 and 2050, their total emissions and their cost, in relation to the maximum allowed in the agreements signed by the EU in Paris (COP21). From this calculation, an assessment is provided of when buildings will become energetically stranded (energy obsolete) assets and the cost of carbon emitted above permitted levels. These calculations lend transparency to the investment decision-making process facing building owners in the EU over the next 30 years.

scholarly journals The Efficiency Analysis of National R&D Planning for the Field of Precision Medicine in Korea

2018 ◽  
Vol 4 (3) ◽  
pp. 39 ◽  
Author(s):  
BangRae Lee ◽  
EunSoo Sohn ◽  
DongKyu Won ◽  
WoonDong Yeo ◽  
KwangHoon Kim ◽  
...  
Keyword(s):  
Precision Medicine ◽  
Relative Efficiency ◽  
High Efficiency ◽  
Investment Decision ◽  
Value Added ◽  
Efficiency Analysis ◽  
Government Investment ◽  
Technology Sector ◽  
Investment Decision Making ◽  
Input Variables

Precision medicine has received a lot of attention in recent years and we have not yet found any research cases that apply Data Envelopment Analysis (DEA) to investment decision making in this area. The purpose of this study is to analyze the relative efficiency of candidate technology sectors in order to determine priorities for government investment in precision medicine. The results of the efficiency analysis can be used as an important reference for government policy makers to determine the amount of government investment in the next year for each candidate technology sector. The candidate technology for government investment in precision medicine was decided for 23 sectors based on the data analysis and the opinions of expert committees. This study applies the input-oriented DEA in regard to 23 technology sectors, which is widely used to analyze relative efficiency in terms of inputs versus outputs and to enhance efficiency through the propositional reduction of inputs. The input variables include the government’s research and development (R&D) investment and forward and backward industry linkage effects. The output variables are the employment creation effect, value-added effect, number of Korean patents, and number of Korean papers. Our analysis results show that the 23 technology sectors in precision medicine overall have a high efficiency, with the exception of the biobank technology sector. Therefore, since the Biobank technology sector has strong infrastructure characteristics, it seems to require continuous investment. The efficiency of DEA is high in most precision medicine sectors; therefore, overall, investing in these technologies is expected to yield good benefits.

scholarly journals Belief Adjustment Model Test in Investment Decision Making: Experimentation of short information Series

2017 ◽  
Vol 7 (1) ◽  
pp. 15
Author(s):  
Aulida Kholifatun Nisa
Keyword(s):  
Portfolio Management ◽  
Investment Decision ◽  
Order Effect ◽  
Recency Effect ◽  
Bad News ◽  
Good News ◽  
Adjustment Model ◽  
Investment Decision Making ◽  
The Difference ◽  
Belief Adjustment

The aims of this study are examine the difference judgement given by investor using belief adjustment model to consider the pattern of presentation, the order of information and the tpye of information. This study using experimental design 2x2x2 mixed design, include: the pattern of presentation (Step by Step and End of Sequence), the order of information good news followed by bad news (++--) and bad news followed by good news (--++), and  the type of information (accounting and non accounting). The hypothesis in this study were tested  with Independence Sample T-test and Mann Whitney U. The participants were students STIE Perbanas Surabaya bachelor degree majoring in Accounting and Management who have knowlegde related to investment management and capital market or investment portfolio management and financial statements analysis. The result of this study showed that occurs recency effect while the pattern of information of Step by Step (SbS) and the type of information accounting and non accounting. This also occurs while the pattern of presentation of End of Sequence (EoS) and the type of acounting information occurs recency effect, wheares there was no order effect on the type of non accounting information.

scholarly journals Reliability as Main Factor for Future Value Creation

2017 ◽  
Author(s):  
Aleksandras Vytautas Rutkauskas ◽  
Viktorija Stasytytė ◽  
Andrius Rutkauskas
Keyword(s):  
Stochastic Optimization ◽  
Utility Function ◽  
Optimal Allocation ◽  
Investment Decision ◽  
Value Added ◽  
Optimal Investment ◽  
Currency Markets ◽  
Reliability Management ◽  
Investment Decision Making ◽  
Optimal Resource

The main objective of the paper is to present the solution to the problem of possibilities’ reliability management, which is an important problem of uncertainty (risk) economics. Also, the paper aims to propose adequate methods of stochastic optimization and reveal their broad implementation possibilities. Along with that, the concept of utility function is being disclosed, when we take into account not only the possibilities of prices and costs, but also their reliability, in order to achieve the highest value added in this process. The original methods of stochastic optimization are used, while searching for the optimal allocation of invested capital among the investment assets. Adequate investment portfolio is treated as theoretically sound and practically effective instrument for investment decision-making in capital and currency markets, as well as for other problems related with optimal resource allocation. The adequate portfolio supplements the modern portfolio by adding the third portfolio parameter – the reliability of return. Also, the utility function based on return, reliability and risk is used to find the optimal investment possibility for particular investor. The formed portfolio solutions were tested in the markets of NYSE, UK and France.

scholarly journals The Impact of ESG Factors on Asset Returns: Empirical Research

2021 ◽  
Vol 25 (4) ◽  
pp. 82-97
Author(s):  
O. V. Efimova ◽  
M. A. Volkov ◽  
D. A. Koroleva
Keyword(s):  
Quantitative Methods ◽  
Investment Decision ◽  
Investment Strategies ◽  
Scientific Publications ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Investment Decision Making ◽  
Investment Portfolios ◽  
The Impact ◽  
The Relationship

The subject of the research is the assessment of Investment decision-making efficiency considering the sustainable development requirements. The article aims to identify the relationship between environmental, social and governance (ESG) performance and market returns for investors and the reasons for it. The relevance of the paper is determined by the need to develop research in the field of ESG integration and evaluation of the portfolio investment effectiveness in the context of responsible investment practices popularity. Scientific novelty: the study develops the theory of ESG integration and allows the authors to conclude that ESG commitment is a driver of market profitability for investors. The authors apply methods such as theoretical analysis of scientific publications (analysis, synthesis, generalisation) and quantitative methods, including statistical data analysis, regression analysis, financial modelling. The research base is scientific works of domestic and foreign authors, analytical reports of rating agencies, ESG funds, historical stock market data on companies analysed in the course of this study. All the information used in this study is publicly available or provided by the Bloomberg database. In the course of the study, authors form model portfolios of ESG-oriented and ESG-neutral companies shares and perform a comparative analysis of their fundamental indicators and financial returns. The authors conclude that the portfolio of ESG-oriented companies demonstrates profitability no lower than the portfolio of ESG-neutral companies, considering the risks. At the same time, the values of the fundamental indicators of ESG-oriented companies are inferior to the values of ESG-neutral companies. The relationship between the degree of a company’s ESG compliance and its investment attractiveness is due, among other things, to non-financial value drivers. The authors recommend integrating ESG into the analysis of investment portfolios, significant for the development of investment strategies.

Demand Management as a Success Factor in Project Portfolio Management

2017 ◽  
pp. 202-219
Author(s):  
Luca Romano ◽  
Roberta Grimaldi ◽  
Francesco Saverio Colasuonno
Keyword(s):  
Portfolio Management ◽  
Demand Management ◽  
Value Added ◽  
Management Approach ◽  
Success Factor ◽  
General Strategy ◽  
Strategic Objectives ◽  
Market Situation ◽  
New Ideas ◽  
Continuous Demand

Demand Management is the process an organization puts in place to internally collect new ideas, projects and needs during the creation of a Portfolio (from now on PTF). This collection is done internally but should also consider the external market situation and the general Strategy of the Organization. Demand contains two main actions: initiatives Collection and Assessment (following the Strategic Objectives definition) and preceding the start of the Portfolio budgeting, prioritization and selection phases. What is possible to do to better manage Demand and maximize the value added to Portfolio Management? The first opportunity is that Demand can represent a connection with the business and the entire Organization. A second opportunity is that a continuous Demand Management approach can simplify the portfolio collection, prioritization and selection. For Demand Management to be a real opportunity in Portfolio Management should be organized and planned respecting the interpretation of the matter and the maturity of the Organisation and should be also treated as a specific matter.

scholarly journals Rating in the Assessment of Investment Property

2014 ◽  
Vol 22 (2) ◽  
pp. 98-107
Author(s):  
Katarzyna Śmietana ◽  
Jan Konowalczuk ◽  
Anna Maszczyk
Keyword(s):  
Real Estate ◽  
Investment Decision ◽  
Essential Element ◽  
Cash Flows ◽  
Property Market ◽  
Real Estate Investment ◽  
The Real Estate ◽  
Investment Decision Making ◽  
Market Location ◽  
Decision Making Processes

Abstract The implementation of rating procedures is associated with searching for tools that provide an objective and standardized assessment of investment risk. For this reason, rating is an important and often essential element of investment decision-making processes which determines the development of the capital market, including the real estate investment market. In the investment property market, not only does rating provide transparency of property risk, but it can also be used for real estate portfolio analysis, investment controlling, and the analysis of factors determining investment decisions (ESV 2012). In this article, the authors present an assessment of the suitability of the rating recommended by TEGoVA for properties considered as active investments, namely properties in the course of development and intended for future development projects. The analysis will include criteria affecting the assessment of property quality and risk, taking into account four classes: market, location, property characteristics, and the quality of cash flows. The study will allow to identify assessment parameters and determine a recommended scope for the analysis of real estate investment potential.

Characterisation of petroleum assets for portfolio management

2010 ◽  
Vol 50 (2) ◽  
pp. 721
Author(s):  
Bernardus Wahyuputro ◽  
Steve Begg ◽  
Graeme Bethune
Keyword(s):  
Decision Making ◽  
Portfolio Management ◽  
Oil And Gas ◽  
Investment Decision ◽  
Lessons Learned ◽  
Modern Approach ◽  
Investment Decision Making ◽  
Petroleum Resources ◽  
Exploration And Production ◽  
Strategic Goals

There is growing use of modern portfolio management methods that integrate risks, strategic goals and optimisation techniques to aid investment decision-making in the exploration and production industry. This modern approach consists of stages of analysis that include asset analysis, strategic goals definition and portfolio selection to maximise the probability of meeting the strategic goals. To date, most work in this area has focussed on the portfolio management requirements of oil and gas operators. However, the approach has the potential to help decision-making surrounding the management of the petroleum resources of a state. Specifically, we are investigating its potential to help set fiscal terms that encourage investment whilst meeting state goals. Indonesia’s petroleum resources are used to inform and provide data for the study. This paper presents the problems identified and solutions developed in performing the first step—describing, quantifying and modelling the uncertainty in the performance of the assets that comprise the portfolio. Due to the size and heterogeneity of the portfolio, we have chosen to characterise the assets into different types, rather than model each one individually. The main benefit of characterising the assets is to make the problem tractable, particularly when it comes to optimisation. Characterisation will also provide insight to decision-maker’s about the nature of the portfolio that may impact long-term planning and setting of targets. Whilst the approach taken is motivated by the specific needs of a nation’s portfolio, it is expected that the lessons learned will be of use to operators with similar characteristics—large, heterogeneous portfolios.

scholarly journals A TIME SERIES ANALYSIS OF FOUR MAJOR CRYPTOCURRENCIES

2018 ◽  
pp. 271
Author(s):  
Boris Radovanov ◽  
Aleksandra Marcikić ◽  
Nebojša Gvozdenović
Keyword(s):  
Time Series ◽  
Portfolio Management ◽  
Investment Decision ◽  
Market Price ◽  
Data Series ◽  
Crucial Point ◽  
Investment Decision Making ◽  
Volatility Models ◽  
Daily Returns ◽  
Over Time

Because of increasing interest in cryptocurrency investments, there is a need to quantify their variation over time. Therefore, in this paper we try to answer a few important questions related to a time series of cryptocurrencies. According to our goals and due to market capitalization, here we discuss the daily market price data of four major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC). In the first phase, we characterize the daily returns of exchange rates versus the U.S. Dollar by assessing the main statistical properties of them. In many ways, the interpretation of these results could be a crucial point in the investment decision making process. In the following phase, we apply an autocorrelation function in order to find repeating patterns or a random walk of daily returns. Also, the lack of literature on the comparison of cryptocurrency price movements refers to the correlation analysis between the aforementioned data series. These findings are an appropriate base for portfolio management. Finally, the paper conducts an analysis of volatility using dynamic volatility models such as GARCH, GJR and EGARCH. The results confirm that volatility is persistent over time and the asymmetry of volatility is small for daily returns.

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