Is there a place for property in the multi-asset portfolio?

The case for property has typically rested on the application of modern portfolio theory (MPT), in that property has been shown to offer increased diversification benefits within a multi asset portfolio without hurting portfolio returns especially for lower risk portfolios. However this view is based upon the use of historic, usually appraisal based, data for property. Recent research suggests strongly that such data significantly underestimates the risk characteristics of property, because appraisals explicitly or implicitly smooth out much of the real volatility in property returns. This paper examines the portfolio diversification effects of including property in a multi-asset portfolio, using UK appraisal based (smoothed) data and several derived de-smoothed series. Having considered the effects of de-smoothing, we then consider the inclusion of a further low risk asset (cash) in order to investigate further whether property's place in a low risk portfolio is maintained. The conclusions of this study are that the previous supposed benefits of including property have been overstated. Although property may still have a place in a 'balanced' institutional portfolio, the case for property needs to be reassessed and not be based simplistically on the application of MPT.

Serial persistence in individual real estate returns in the UK

Purpose – The purpose of this paper is to examine individual level property returns to see whether there is evidence of persistence in performance, i.e. a greater than expected probability of well (badly) performing properties continuing to perform well (badly) in subsequent periods. Design/methodology/approach – The same methodology originally used in Young and Graff is applied, making the results directly comparable with those for the US and Australian markets. However, it uses a much larger database covering all UK commercial property data available in the Investment Property Databank (IPD) for the years 1981 to 2002 – as many as 216,758 individual property returns. Findings – While the results of this study mimic the US and Australian results of greater persistence in the extreme first and fourth quartiles, they also evidence persistence in the moderate second and third quartiles, a notable departure from previous studies. Likewise patterns across property type, location, time, and holding period are remarkably similar. Research limitations/implications – The findings suggest that performance persistence is not a feature unique to particular markets, but instead may characterize most advanced real estate investment markets. Originality/value – As well as extending previous research geographically, the paper explores possible reasons for such persistence, consideration of which leads to the conjecture that behaviors in the practice of institutional-grade commercial real estate investment management may themselves be deeply rooted and persistent, and perhaps influenced for good or ill by agency effects. - See more at: http://www.emeraldinsight.com/journals.htm?articleid=1602884&show=abstract#sthash.hc2pCmC6.dpuf

Forecasting real estate returns using financial spreads

This paper examines the predictability of real estate asset returns using a number of time series techniques. A vector autoregressive model, which incorporates financial spreads, is able to improve upon the out of sample forecasting performance of univariate time series models at a short forecasting horizon. However, as the forecasting horizon increases, the explanatory power of such models is reduced, so that returns on real estate assets are best forecast using the long term mean of the series. In the case of indirect property returns, such short-term forecasts can be turned into a trading rule that can generate excess returns over a buy-and-hold strategy gross of transactions costs, although none of the trading rules developed could cover the associated transactions costs. It is therefore concluded that such forecastability is entirely consistent with stock market efficiency.

The impact of economic and financial factors on UK property performance

This paper employs a vector autoregressive model to investigate the impact of macroeconomic and financial variables on a UK real estate return series. The results indicate that unexpected inflation, and the interest rate term spread have explanatory powers for the property market. However, the most significant influence on the real estate series are the lagged values of the real estate series themselves. We conclude that identifying the factors that have determined UK property returns over the past twelve years remains a difficult task.

Implantação de Reservas Legais: uma nova perspectiva na conservação dos recursos naturais em paisagem rural

According to the Forest Code of 1965, it is mandatory that every rural property destine part of its land to the establishment of Legal Reserves. When a diagnosis is made over all Brazil, the reality is quite different from what is demanded by law. Therefore, this work, as a general objective, proposes ways of establishing Legal Reserves based on the analysis of the environmental deterioration in a river basin. For this purpose, the environmental deterioration was detected based on three diagnoses: physical-conservational, socioeconomical, and environmental quality. In this way, from a quantitative and qualitative diagnosis, it was possible to identify the main aggressive factors in the studied river basin and to indicate the main vulnerabilities that the area is subjected. According to such diagnosis, some proposals for the establishment of Legal Reserves are discussed here based on scientific arguments aimed at the conservation of water resources, soil and biodiversity. It is hoped, that from this study, the environment receives a new tool for diagnosis, pollution control, recovery and conservation of natural resources.

Transformações no espaço rural do norte pioneiro paranaense: estratégias de resistência e/ou permanência dos agricultores familiares no município de Jacarezinho/PR

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

The impact of the law 10,267/2001 in the brazilian rural registration

The publication of the Law 10,267 of 08/28/2001 changed the paradigm of rural registration in Brazil, because this law known as the Law of Georeferencing has created the National Registration of Rural Property, that unifies in a common basis different registrations present in several government agencies, such as the National Institute for Colonization and Agrarian Reform (INCRA), the Secretariat of Federal Revenue, the Brazilian Institute of Environment and Natural Resources, and the National Indian Foundation. Also, this new registration system has a graphical component which has not existed until such date, where the boundaries of rural property are georeferenced to the Brazilian Geodetic System. This new paradigm has resulted in a standardization of the survey and its representation of rural properties according to the Technical Standard for Georeferencing of Rural Properties, published by INCRA in compliance with the new legislation. Due to the georeferencing, the creation of a public GIS of free access on the Internet was possible. Among the difficulties found it may be observed the great Brazilian territory, the need for specialized professionals, and especially the certification process that INCRA has to perform for each georeferenced property. It is hoped that this last difficulty is solved with the implementation of the Land Management System that will allow automated and online certification, making the process more transparent, agile and fast.

Aplicação de técnicas alternativas para recuperação de foco eosivo em área rural situada no município de Álvares Machado – SP Presidente Prudente 2012

When handling soil conservation practices isn’t applied correctly, they cause problems at the level of structure, cohesion and fertility in soils and lack of water availability. In the case of this monograph, conducted in a rural property located at Álvares Machado City, identified that most areas are intended for use activities of beef cattle and dairy and subsistence agriculture, which historically addition to withdraw native flora, resulting in problems such as compaction and increase soil exposure to climatic agents, generating a serious frame of erosion problems. In the case of water from rainfall, the soil exposed, causes the “splash” effect and therefore when it becomes runoff carries the spalled particles mainly for low land areas. Without the vegetation, especially trees or shrubs species, the velocity of runoff increases, initiating the appearance of furrows, which consequently may become a kind of ravine erosion and gully, which makes invalid any area in your surroundings... (Complete abstract click electronic access below)

Energetic exploitation from a hybrid PV-wind power micro-generation rural electrification

Hybrid system micro-generation integration of PV-wind power is presented by a form of energy in which problems resulting from variability in the intensity of wind and solar intensity are possible mitigation either by complementation between one source to another or the largest stability configured by the generate the system. Based on this context, this work aims to assessing the performance of a hybrid system PV-wind power energy small of a rural property for their electrification. The study has been developed at the Rural Laboratory Powering from Engineering Department of UNESP. In order to present this research, a hybrid system has been installed PV-wind power, composed of one 400Wp windmill and a 300 Wp PV-system. The results obtained allowed us to evaluate the solar and wind energy supplied ranked among 285 and 360 kWh electric power generated by the PV-wind power hybrid system stood between 25,5 and 31 kWh. At is to say achieving yield of approximately than 10% during one year observation period, i.e., it was concluded that the performance of the hybrid system depended essentially the energy received and generated by the PV-system and that there was complementation between generating wind power and PV-systems with regard to time of day and the annual seasons by confirming the technical feasibility of this kind system of micro-generation in small rural properties.

Occurrence of Lutzomyia longipalpis (Phlebotominae) and canine visceral leishmaniasis in a rural area of Ilha Solteira, SP, Brazil

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Geração de energia por microturbina alimentada à biogás em uma propriedade rural: estudo de caso

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

As políticas públicas ambientais e a dinâmica do espaço rural no município de Araras (SP)

Historically the evolution of the occupation of ararense territory was due to the expansion of agricultural activities. Such activities were intensified with the transformations engendered by the Green Revolution, increasing the exploitation, the area occupied by agriculture and the deforestation and consequent environmental degradation. Therefore the current reality of rural areas in Araras/SP has shown that part of agricultural practices made it does not guarantee the effectiveness of environmental legislation and the sustainability of farms. Considering the recently implemented environmental policies, such as Law nº 12.651 / 2012, better known as New Forest Code and Decree nº 8.235 / 2014 establishing a period of one year to rural property registered with the Rural Environmental Registry (CAR), as tools targeting to reduce environmental degradation and contribute to building a sustainable rural development. This work aims to analyze the dynamics of the rural municipality of Araras on the environmental situation in some rural properties and actions to be taken by the owners to the full compliance of its properties before the environmental public policy

Asymmetrically fair rules for an indivisible good problem with a budget constraint

We study a particular restitution problem where there is an indivisible good (land or property) over which two agents have rights: the dispossessed agent and the owner. A third party, possibly the government, seeks to resolve the situation by assigning rights to one and compensate the other. There is also a maximum amount of money available for the compensation. We characterize a family of asymmetrically fair rules that are immune to strategic behavior, guarantee minimal welfare levels for the agents, and satisfy the budget constraint.

The relative importance sector and regional factors in Italy

The benefits of sector and regional diversification have been well documented in the literature but have not previously been investigated in Italy. In addition, previous studies have used geographically defined regions, rather than economically functional areas, when performing the analysis even though most would argue that it is the economic structure of the area that will lead to differences in demand and hence property performance. This study therefore uses economically defined regions of Italy to test the relative benefits of regional diversification versus sector diversification within the Italian real estate portfolio. To examine this issue we use constrained cross-section regressions the on the sector and regional affiliation of 14 cities in Italy to extract the “pure” return effects of the different factors using annual data over the period 1989 to 2003. In contrast, to previous studies we find that regional factors effects in Italy have a much greater influence on property returns than sector-specific effects, which is probably a direct result of using the extremely diverse economic regions of Italy rather than arbitrary geographically locations. Be that as it may, the results strongly suggest that that diversification across the regions of Italy used here is likely to offer larger risk reduction benefits than a sector diversification strategy within a region. In other words, fund managers in Italy must monitor the regional composition of their portfolios more closely than its sector allocation. Additionally, the results supports that contemporary position that ‘regional areas’ based on economic function, provide greater diversification benefits rather than areas defined by geographical location.