Performance drivers of UK unlisted property funds

An unlisted property fund is a private investment vehicle which aims to provide direct property total returns and may also employ financial leverage which will accentuate performance. They have become a far more prevalent institutional property investment conduit since the early 2000’s. Investors have been primarily attracted to them due to the ease of executing a property exposure, both domestically and internationally, and for their diversification benefits given the capital intensive nature of constructing a well diversified commercial property investment portfolio. However, despite their greater prominence there has been little academic research conducted on the performance and risks of unlisted property fund investments. This can be attributed to a paucity of available data and limited time series where it exists. In this study we have made use of a unique dataset of institutional UK unlisted non-listed property funds over the period 2003Q4 to 2011Q4, using a panel modelling framework in order to determine the key factors which impact on fund performance. The sample provided a rich set of unlisted property fund factors including market exposures, direct property characteristics and the level of financial leverage employed. The findings from the panel regression analysis show that a small number of variables are able to account for the performance of unlisted property funds. These variables should be considered by investors when assessing the risk and return of these vehicles. The impact of financial leverage upon the performance of these vehicles through the recent global financial crisis and subsequent UK commercial property market downturn was also studied. The findings indicate a significant asymmetric effect of employing debt finance within unlisted property funds.

Real-time multi-model decadal climate predictions

We present the first climate prediction of the coming decade made with multiple models, initialized with prior observations. This prediction accrues from an international activity to exchange decadal predictions in near real-time, in order to assess differences and similarities, provide a consensus view to prevent over-confidence in forecasts from any single model, and establish current collective capability. We stress that the forecast is experimental, since the skill of the multi-model system is as yet unknown. Nevertheless, the forecast systems used here are based on models that have undergone rigorous evaluation and individually have been evaluated for forecast skill. Moreover, it is important to publish forecasts to enable open evaluation, and to provide a focus on climate change in the coming decade. Initialized forecasts of the year 2011 agree well with observations, with a pattern correlation of 0.62 compared to 0.31 for uninitialized projections. In particular, the forecast correctly predicted La Niña in the Pacific, and warm conditions in the north Atlantic and USA. A similar pattern is predicted for 2012 but with a weaker La Niña. Indices of Atlantic multi-decadal variability and Pacific decadal variability show no signal beyond climatology after 2015, while temperature in the Niño3 region is predicted to warm slightly by about 0.5 °C over the coming decade. However, uncertainties are large for individual years and initialization has little impact beyond the first 4 years in most regions. Relative to uninitialized forecasts, initialized forecasts are significantly warmer in the north Atlantic sub-polar gyre and cooler in the north Pacific throughout the decade. They are also significantly cooler in the global average and over most land and ocean regions out to several years ahead. However, in the absence of volcanic eruptions, global temperature is predicted to continue to rise, with each year from 2013 onwards having a 50 % chance of exceeding the current observed record. Verification of these forecasts will provide an important opportunity to test the performance of models and our understanding and knowledge of the drivers of climate change.

Seed development and maturation in early spring-flowering Galanthus nivalis and Narcissus pseudonarcissus continues post-shedding with little evidence of maturation in planta

Background and Aims: Seeds of the moist temperate woodland species Galanthus nivalis and Narcissus pseudonarcissus, dispersed during spring or early summer, germinated poorly in laboratory tests. Seed development and maturation were studied to better understand the progression from developmental to germinable mode in order to improve seed collection and germination practices in these and similar species. Methods: Phenology, seed mass, moisture content, and ability to germinate and tolerate desiccation were monitored during seed development until shedding. Embryo elongation within seeds was investigated during seed development and at several temperature regimes after shedding. Key Results: Seeds were shed at high moisture content (> 59%) with little evidence that dry mass accumulation or embryo elongation were complete. Ability to germinate developed prior to the ability of some seeds to tolerate enforced desiccation. Germination was sporadic and slow. Embryo elongation occurred post-shedding in moist environments, most rapidly at 20C in G. nivalis and 15C in N. pseudonarcissus. The greatest germination also occurred in these regimes, 78 and 48%, respectively, after 700 d. Conclusions: Seeds of G. nivalis and N. pseudonarcissus seeds were comparatively immature at shedding and substantial embryo elongation occurred post-shedding. Seeds showed limited desiccation tolerance at dispersal.

Variation in root-associated phosphatase activities in wheat contributes to the utilization of organic P substrates in vitro, but does not explain differences in the P-nutrition of plants when grown in soils

To understand whether genotypic variation in root-associated phosphatase activities in wheat impacts on its ability to acquire phosphorus (P), various phosphatase activities of roots were measured in relation to the utilization of organic P substrates in agar, and the P-nutrition of plants was investigated in a range of soils. Root-associated phosphatase activities of plants grown in hydroponics were measured against different organic P substrates. Representative genotypes were then grown in both agar culture and in soils with differing organic P contents and plant biomass and P uptake were determined. Differences in the activities of both root-associated and exuded phosphodiesterase and phosphomonoesterase were observed, and were related to the P content of plants supplied with either ribonucleic acid or glucose 6-phosphate, respectively, as the sole form of P. When the cereal lines were grown in different soils, however, there was little relationship between any root-associated phosphatase activity and plant P uptake. This indicates that despite differences in phosphatase activities of cereal roots, such variability appears to play no significant role in the P-nutrition of the plant grown in soil, and that any benefit derived from the hydrolysis of soil organic P is common to all genotypes.

Changes of the equilibrium line altitude since the Little Ice Age in the Nepalese Himalayas

Changes of the equilibrium-line altitude (ELA) since the end of the Little Ice Age (LIA) in eastern Nepal have been studied using glacier inventory data. The toe-to-headwall altitude ratios (THARs) for individual glaciers were calculated for 1992, and used to estimate the ELA in 1959 and at the end of the LIA. THAR for debris-free glaciers is found to be smaller than for debris-covered glaciers. The ELAs for debris-covered glaciers are higher than those for debris-free glaciers in eastern Nepal. There is considerable variation in the reconstructed change in ELA (ΔELA) between glaciers within specific regions and between regions. This is not related to climate gradients, but results from differences in glacier aspect: southeast- and south-facing glaciers show larger ΔELAs in eastern Nepal than north- or west-facing glaciers. The data suggest that the rate of ELA rise may have accelerated in the last few decades. The limited number of climate records from Nepal, and analyses using a simple ELA–climate model, suggest that the higher rate of the ΔELA between 1959 and 1992 is a result of increased warming that occurred after the 1970s at higher altitudes in Nepal.

Accelerating shrinkage of Patagonian glaciers from the Little Ice Age (∼AD 1870) to 2011

We used Little Ice Age (LIA) trimlines and moraines to assess changes in South American glaciers over the last ∼140 years. We determined the extent and length of 640 glaciers during the LIA (∼ AD 1870) and 626 glaciers (the remainder having entirely disappeared) in 1986, 2001 and 2011. The calculated reduction in glacierized area between the LIA and 2011 is 4131 km2 (15.4%), with 660 km2 (14.2%) being lost from the Northern Patagonia Icefield (NPI), 1643 km2 (11.4%) from the Southern Patagonia Icefield (SPI) and 306 km2 (14.4%) from Cordillera Darwin. Latitude, size and terminal environment (calving or land-terminating) exert the greatest control on rates of shrinkage. Small, northerly, land-terminating glaciers shrank fastest. Annual rates of area loss increased dramatically after 2001 for mountain glaciers north of 52° S and the large icefields, with the NPI and SPI now shrinking at 9.4 km2 a–1 (0.23% a–1) and 20.5 km2 a–1 (0.15% a–1) respectively. The shrinkage of glaciers between 52° S and 54° S accelerated after 1986, and rates of shrinkage from 1986 to 2011 remained steady. Icefield outlet glaciers, isolated glaciers and ice caps south of 54° S shrank faster from 1986 to 2001 than they did from 2001 to 2011.

'Hey little rich boy, take a good look at me': punk, class and British oi!

This article looks at the controversial music genre Oi! in relation to youth cultural identity in late 1970s and early 1980s Britain. By examining the six compilation albums released to promote Oi! as a distinct strand of punk, it seeks to challenge prevailing dismissals of the genre as inherently racist or bound to the politics of the far right. Rather, Oi! – like punk more generally – was a contested cultural form. It was, moreover, centred primarily on questions of class and locality. To this end, Oi! sought to realize the working-class rebellion of punk’s early aesthetic; to give substance to its street-level pretentions and offer a genuine ‘song from the streets’.

With a little help from our friends: how system dynamics and soft OR can learn from each other

At its inception, the paradigm of system dynamics was deliberately made distinct from that of OR. Yet developments in soft OR now have much in common with current system dynamics modeling practice. This article briefly traces the parallel development of system dynamics and soft OR, and argues that a dialogue between the two would be mutually rewarding. to support this claim, examples of soft OR tools are described along with some of the field’s philosophical grounding and current issues. Potential benefits resulting from a dialogue are explored, with particular emphasis on the methodological framework of system dynamics and the need for a complementarist approach. The article closes with some suggestions on how to begin learning from.