Real Natural Assets: The Real Green Investment Alternative

2019 ◽  
Keyword(s):  
Performance Analysis ◽  
Expected Returns ◽  
Financial Benefit ◽  
Investment Performance ◽  
Liquidity Shocks ◽  
Asset Class ◽  
Green Investment ◽  
Asset Classes ◽  
Green Investments ◽  
Risk Association

The authors present an analysis of green investment performance grouped into two broad categories: non-real green assets and real green assets. They seek to identify which green investment alternatives offer greater financial benefit and are thus more attractive to investors and investigate some of the intrinsic risks associated with this asset class. The performance analysis is based on the study of the expected returns, volatility, diversification potential, downside risk, association with inflation, and exposure to liquidity shocks in stock markets of real and non-real green assets, comparing them with those of traditional asset classes (such as equity, bonds, and real estate) and other non-traditional assets, namely infrastructure. The findings indicate that real green assets, in particular, may represent the appropriate alternative in the adoption of green investments.

scholarly journals Value Return Predictability across Asset Classes and Commonalities in Risk Premia*

2020 ◽  
Author(s):  
Fahiz Baba Yara ◽  
Martijn Boons ◽  
Andrea Tamoni
Keyword(s):  
Risk Premia ◽  
Return Predictability ◽  
Expected Returns ◽  
Government Bonds ◽  
Common Component ◽  
Common Value ◽  
Asset Class ◽  
Asset Classes ◽  
Global Government ◽  
Stock Indexes

Abstract We show that returns to value strategies in individual equities, industries, commodities, currencies, global government bonds, and global stock indexes are predictable in the time series by their respective value spreads. In all these asset classes, expected value returns vary by at least as much as their unconditional level. A single common component of the value spreads captures about two-thirds of value return predictability and the remainder is asset class specific. We argue that common variation in value premia is consistent with rationally time-varying expected returns, because (i) common value is closely associated with standard proxies for risk premia, such as the dividend yield, intermediary leverage, and illiquidity, and (ii) value premia are globally high in bad times.

scholarly journals A critical evaluation of risk-return characteristics of environmentally focused stock’s companies

2013 ◽  
Vol 61 (2) ◽  
pp. 501-506
Author(s):  
Stanislav Škapa ◽  
Tomáš Meluzín ◽  
Marek Zinecker
Keyword(s):  
Critical Evaluation ◽  
Risk Return ◽  
Ex Post ◽  
Asset Class ◽  
Asset Classes

The objective of the paper is to critically evaluate and determine risk-return profile environmentally focused stock’s companies which are covered by STOXX Global ESG Environmental Leaders Index and whether this index should be taken in as an independent asset class of investments portfolio for its risk-return improvement. This paper gives an empirical view on the ex-post asset classes characteristics focused mainly on risk side of investment.

scholarly journals Analysis of the Definitive Basis of the Term “Environmental (Green) Investments” and their Classification

2020 ◽  
pp. 138-148
Author(s):  
A.S. Ihnatchenko ◽  
B.L. Kovalov ◽  
S.M. Fedyna ◽  
A.G. Popova
Keyword(s):  
Sustainable Development ◽  
Social Economic ◽  
Green Economy ◽  
Regional Characteristics ◽  
Environmental Investment ◽  
The Social ◽  
Green Investment ◽  
Definition Of ◽  
Green Investments

The paper analyzes the meaning and essence of the term «environmental (green) investment». Summarizing the existing interpretations of the term «environmental (green) investment», the authors propose their own definition of environmental investment. The author’s interpretation of the term «environmental (green) investment» takes into account the social, economic and environmental spheres of sustainable development. The dominant author's interpretation of the term «environmental (green) investment» is investing in the greening of financial structures. The article summarizes and systematizes the classification of environmental (green) investments, which can be divided according to the scope of investment objects, the regional characteristics of the subjects of environmental investment, the term and method of investment. The authors have made recommendations for improving the environmental efficiency of the green economy in Ukraine.

scholarly journals Real estate as a portfolio risk diversifier

2016 ◽  
Vol 13 (2) ◽  
pp. 45-52
Author(s):  
Ahmad Etebari
Keyword(s):  
Real Estate ◽  
Portfolio Risk ◽  
Optimal Portfolios ◽  
Investment Performance ◽  
Optimization Framework ◽  
Expected Inflation ◽  
Common Stocks ◽  
Asset Class ◽  
The U.S ◽  
Return Data

This study provides evidence on the investment performance of real estate relative to bonds and common stocks in the U.S. Using quarterly total return data over the years 1978-2012, the analyses show that, over this period, on a risk-adjusted basis real estate was the top performing asset class, outperformed both bonds and stocks. Real estate, in the Eastern U.S., was the top performer, outperforming both bonds and stocks. The results also show that real estate provided a partial hedge against actual and expected inflation, and that, in combinations with bonds and stocks, it made up a major share of optimal portfolios constructed for various target returns within the Markowitz optimization framework

Asset Allocation vs. Factor Allocation—Can We Build a Unified Method?

2019 ◽  
Keyword(s):  
Asset Allocation ◽  
Building Blocks ◽  
Unified Framework ◽  
Intuitive Appeal ◽  
Optimal Allocations ◽  
Asset Class ◽  
Asset Classes ◽  
Unified Method

There is increasing interest in the idea of allocating across factors instead of across traditional asset classes. Allocating across factors has the intuitive appeal of allocating across building blocks that are in theory purer sources of return. In practice, factor-based allocation is not easy: Factors are unobservable and must be specified. However, the authors believe there is merit in integrating insights from factors with traditional asset allocation. Information and views about factors and asset classes can be a powerful combination. In this article, the authors present a framework for combining the two paradigms in an innovative way, resulting in optimal allocations that blend insights from both paradigms. Specifically, their approach derives asset class return prediction from factor-based asset allocation, which allows construction of portfolios for various investment objectives from a unified framework.

scholarly journals INVESTING INTO MICROFINANCE

2010 ◽  
Vol 11 (3) ◽  
pp. 483-510 ◽  
Author(s):  
Karel Janda ◽  
Barbora Svárovská
Keyword(s):  
Capital Markets ◽  
Portfolio Diversification ◽  
Total Risk ◽  
Socially Responsible ◽  
Investment Funds ◽  
Investment Performance ◽  
Positive Correlation ◽  
Asset Class ◽  
Emerging Capital Markets

This paper investigates investment performance of microfinance investment funds. The examined funds have recorded lower total risk than global stocks and bonds (measured by four benchmark indices) with moderate but stable returns. The analysis revealed that investment in microfinance investment funds that focus especially on debt instruments represents an attractive opportunity for the portfolio diversification as this asset class does not show any positive correlation with global or emerging capital markets. At the same time, it provides adequate risk-adjusted returns and may be therefore attractive not only for investors with a particular interest in the socially responsible aspect of investment into microfinance. Santrauka Šiame straipsnyje nagrinejamos investicijos i investicinius mikrofinansu fondus. Nagrinejami fondai yra žemesnes bendrosios rizikos nei pasaulio akcijos ir obligacijos (apskaičiuotos pagal keturis atskaitos rodiklius) su vidutiniška, bet stabilia graža. Analize parode, kad investavimas i investicinius mikrofinansu fondus, ypač i susijusius su isiskolinimo priemonemis, yra patraukli galimybe verslo portfolio diversifikacijai, nes ši turto kategorija nerodo jokios teigiamos koreliacijos su pasaulio ar naujomis kapitalo rinkomis. Tuo pačiu metu tai teikia adekvačia graža pagal rizika ir todel gali būti patrauklūs ne tik investuotojams, turintiems tam tikru interesu.

scholarly journals THE EFFECT OF GREEN STRATEGY AND GREEN INVESTMENT TOWARD CARBON EMISSION DISCLOSURE

2018 ◽  
Vol 1 (2) ◽  
pp. 97-112
Author(s):  
Zalida Afni ◽  
Lindawati Gani ◽  
Chaerul D Djakman ◽  
Elvia Sauki
Keyword(s):  
Private Sector ◽  
Empirical Evidence ◽  
Carbon Emissions ◽  
The World ◽  
Green Investment ◽  
Green Strategy ◽  
Relationship Of ◽  
The Relationship ◽  
Green Investments ◽  
Private Sector Organization

This research aims to test the influence of the green strategy and green investment against disclosure of carbon emissions. Global warming leads to extreme climate change in various places around the world including in Indonesia. There is strong evidence that it is caused by human activity, mainly from burning fossil fuels so as to have an impact on the increasing greenhouse gases. One of the company's efforts in reducing the impact of carbon emissions is by disclosure of carbon emissions. Research on the relationship of the disclosure of carbon emissions by a factor of green strategy and green investments at private sector organization is still relatively limited and there are differences in the methods used. This research contributes to providing empirical evidence about the influence of the green strategy and green investment against disclosure of carbon emissions. Research on the relationship of the disclosure of carbon emissions by a factor of green strategy and green investments at private sector organization is still relatively limited and there are differences in the methods used. This research contributes to providing empirical evidence about the influence of the green strategy and green investment against disclosure of carbon emissions. This research using a sample of companies listed on stock exchanges in the country which is included in the rate of carbon emissions in the world, namely Indonesia and German. This study uses data from the 2014-2016 period in the annual report and the corporate sustainability report. The results showed that there is a significant influence of the green strategy and green investment against disclosure of carbon emissions

scholarly journals An investigation into the role of listed property shares in a retirement fund portfolio in South Africa

2011 ◽  
Vol 12 (4) ◽  
pp. 392-400
Author(s):  
Mkhethwa Mkhize ◽  
Vuyani Bekwa
Keyword(s):  
South Africa ◽  
Efficient Frontier ◽  
Research Paper ◽  
Computer Programme ◽  
Investment Performance ◽  
Asset Class ◽  
Retirement Fund ◽  
Fund Portfolio ◽  
Objective Being

The main aim of this research paper was to investigate the role of listed property shares in a retirement fund portfolio in South Africa, one objective being to determine the appropriate weightings to be allocated to listed property shares. This research paper uses data collected from January 1995 to December 2004. The Elton and Gruber computer programme is used to test the data to give optimal weightings to the listed property sector and to produce an efficient frontier. The results of this research paper demonstrated the benefits offered by listed property shares and revealed that the sector should be treated as a separate asset class from equity owing to low correlation of returns between these two classes of assets. Results also demonstrated that an increase in the allocation to the listed property sector results in better investment performance over the study period.

MODEL OF TRANSITION TO "GREEN" INVESTMENT

2020 ◽  
Author(s):  
V.O. Azarenko ◽  
◽  
V.N. Kurdyukov ◽  
Keyword(s):  
Resource Depletion ◽  
Gradual Transition ◽  
Transition Strategy ◽  
Green Investment ◽  
Green Investments

The article is devoted to the proposal of a model of gradual transition of organizations to "greening" their business. The essence of each step aimed at minimizing resource depletion is reflected. Attention is paid to the elements of the transition strategy to "green" assets. The sources of financing for"green" investments are disclosed, and the structure of the financing transaction is determined.

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