Risk reduction and diversification in UK commercial property portfolios

The issue of diversification in direct real estate investment portfolios has been widely studied in academic and practitioner literature. Most work, however, has been done using either partially aggregated data or data for small samples of individual properties. This paper reports results from tests of both risk reduction and diversification that use the records of 10,000+ UK properties tracked by Investment Property Databank. It provides, for the first time, robust estimates of the diversification gains attainable given the returns, risks and cross‐correlations across the individual properties available to fund managers. The results quantify the number of assets and amount of money needed to construct both ‘balanced’ and ‘specialist’ property portfolios by direct investment. Target numbers will vary according to the objectives of investors and the degree to which tracking error is tolerated. The top‐level results are consistent with previous work, showing that a large measure of risk reduction can be achieved with portfolios of 30–50 properties, but full diversification of specific risk can only be achieved in very large portfolios. However, the paper extends previous work by demonstrating on a single, large dataset the implications of different methods of calculating risk reduction, and also by showing more disaggregated results relevant to the construction of specialist, sector‐focussed funds.

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

Using seasonal hindcasts to understand the origin of the equatorial cold tongue bias in CGCMs and its impact on ENSO

The cold equatorial SST bias in the tropical Pacific that is persistent in many coupled OAGCMs severely impacts the fidelity of the simulated climate and variability in this key region, such as the ENSO phenomenon. The classical bias analysis in these models usually concentrates on multi-decadal to centennial time series needed to obtain statistically robust features. Yet, this strategy cannot fully explain how the models errors were generated in the first place. Here, we use seasonal re-forecasts (hindcasts) to track back the origin of this cold bias. As such hindcasts are initialized close to observations, the transient drift leading to the cold bias can be analyzed to distinguish pre-existing errors from errors responding to initial ones. A time sequence of processes involved in the advent of the final mean state errors can then be proposed. We apply this strategy to the ENSEMBLES-FP6 project multi-model hindcasts of the last decades. Four of the five AOGCMs develop a persistent equatorial cold tongue bias within a few months. The associated systematic errors are first assessed separately for the warm and cold ENSO phases. We find that the models are able to reproduce either El Niño or La Niña close to observations, but not both. ENSO composites then show that the spurious equatorial cooling is maximum for El Niño years for the February and August start dates. For these events and at this time of the year, zonal wind errors in the equatorial Pacific are present from the beginning of the simulation and are hypothesized to be at the origin of the equatorial cold bias, generating too strong upwelling conditions. The systematic underestimation of the mixed layer depth in several models can also amplify the growth of the SST bias. The seminal role of these zonal wind errors is further demonstrated by carrying out ocean-only experiments forced by the AOCGCMs daily 10-meter wind. In a case study, we show that for several models, this forcing is sufficient to reproduce the main SST error patterns seen after 1 month in the AOCGCM hindcasts.

Comparative biology of mammalian telomeres: hypotheses on ancestral states and the roles of telomeres in longevity determination

Progressive telomere shortening from cell division (replicative aging) provides a barrier for human tumor progression. This program is not conserved in laboratory mice, which have longer telomeres and constitutive telomerase. Wild species that do ⁄ do not use replicative aging have been reported, but the evolution of different phenotypes and a conceptual framework for understanding their uses of telomeres is lacking. We examined telomeres ⁄ telomerase in cultured cells from > 60 mammalian species to place different uses of telomeres in a broad mammalian context. Phylogeny-based statistical analysis reconstructed ancestral states. Our analysis suggested that the ancestral mammalian phenotype included short telomeres (< 20 kb, as we now see in humans) and repressed telomerase. We argue that the repressed telomerase was a response to a higher mutation load brought on by the evolution of homeothermy. With telomerase repressed, we then see the evolution of replicative aging. Telomere length inversely correlated with lifespan, while telomerase expression co-evolved with body size. Multiple independent times smaller, shorter-lived species changed to having longer telomeres and expressing telomerase. Trade-offs involving reducing the energetic ⁄ cellular costs of specific oxidative protection mechanisms (needed to protect < 20 kb telomeres in the absence oftelomerase) could explain this abandonment of replicative aging. These observations provide a conceptual framework for understanding different uses of telomeres in mammals, support a role for human-like telomeres in allowing longer lifespans to evolve, demonstrate the need to include telomere length in the analysis of comparative studies of oxidative protection in the biology of aging, and identify which mammals can be used as appropriate model organisms for the study of the role of telomeres in human cancer and aging. Key words: evolution of telomeres; immortalization; telomerase; replicative aging; senescence.

The civic zeitgeist: nationalism and liberal values in the European radical right

This article examines the relationship between nationalism and liberal values, and more specifically the redefinition of boundaries between national communities and others in the rhetoric of radical right parties in Europe. The aim is to examine the tension between radical right party discourse and the increasing need to shape this discourse in liberal terms. We argue that the radical right parties that successfully operate within the democratic system tend to be those best able to tailor their discourse to the liberal and civic characteristics of national identity so as to present themselves and their ideologies as the true authentic defenders of the nation's unique reputation for democracy, diversity and tolerance. Comparing the success of a number of European radical right parties ranging from the most electorally successful SVP to the more mixed BNP, FN and NPD, we show that the parties that effectively deploy the symbolic resources of national identity through a predominantly voluntaristic prism tend to be the ones that fare better within their respective political systems. In doing so, we challenge the conventional view in the study of nationalism which expects civic values to shield countries from radicalism and extremism.

British national identity and the dilemmas of multiculturalism

Nationalism and multiculturalism are often perceived as polar opposites with the former viewed as the disease and the latter the cure. Contrary to this view, this article argues that a strong national identity, albeit of a particular kind, is prerequisite to a stable and functioning multicultural society. The article seeks to identify both the causes and the implications of the absence of an overarching, civic national identity in Britain, further to the goal of seeking a meaningful solution. It is our contention that the problem lies in the difficulty involved in reconciling current pressures on British identity with a coherent narrative of British history, especially its imperial past.

The effects of explicit versus parameterized convection on the MJO in a large-domain high-resolution tropical case study. Part I: Characterization of large-scale organization and propagation

High-resolution simulations over a large tropical domain (∼20◦S–20◦N and 42◦E–180◦E) using both explicit and parameterized convection are analyzed and compared to observations during a 10-day case study of an active Madden-Julian Oscillation (MJO) event. The parameterized convection model simulations at both 40 km and 12 km grid spacing have a very weak MJO signal and little eastward propagation. A 4 km explicit convection simulation using Smagorinsky subgrid mixing in the vertical and horizontal dimensions exhibits the best MJO strength and propagation speed. 12 km explicit convection simulations also perform much better than the 12 km parameterized convection run, suggesting that the convection scheme, rather than horizontal resolution, is key for these MJO simulations. Interestingly, a 4 km explicit convection simulation using the conventional boundary layer scheme for vertical subgrid mixing (but still using Smagorinsky horizontal mixing) completely loses the large-scale MJO organization, showing that relatively high resolution with explicit convection does not guarantee a good MJO simulation. Models with a good MJO representation have a more realistic relationship between lower-free-tropospheric moisture and precipitation, supporting the idea that moisture-convection feedback is a key process for MJO propagation. There is also increased generation of available potential energy and conversion of that energy into kinetic energy in models with a more realistic MJO, which is related to larger zonal variance in convective heating and vertical velocity, larger zonal temperature variance around 200 hPa, and larger correlations between temperature and ascent (and between temperature and diabatic heating) between 500–400 hPa.

"You can see some eagles. And hear the trumpets": the literary and political hinterland of T.S. Eliot's 'Coriolan'

There has been an increased amount of scholarly interest lately in T.S. Eliot's unfinished sequence, Coriolan (1932)—interest drawn from its Shakespearian allusiveness, and from analysis of this writing's particularly rebarbative, jarring poetic. Although, however, the two parts of the sequence published by Eliot are acknowledged as being his nearest approach to poetic commentary upon contemporary political ideas, little criticism exists establishing the hinterland of the political thought, with which Eliot was most familiar, as editor of the Criterion. Coriolan emerges at a time when the lure of fascism pulled hardest at Eliot's sensibility. This article reviews the full political context provided by Eliot's journal, as well as considering the connections between that political engagement and the readings of Shakespeare he was also promulgating through this forum, in order to provide a more complex sense than hitherto of the diverse pressures underlying the unsettled nature of the existing Coriolan poems.

Provincialism and the modern diaspora: T.S. Eliot and David Jones

This article considers how T. S. Eliot's promotion of the work of the Anglo-Welsh poet David Jones after the Second World War further involved him in a process of considering the resonances of the local and familiar as operative within the displacements of modernity. This promotion therefore retrospectively prioritized an aspect of Eliot's poetics which had been present, but occluded, all along. Conversely, the article considers how similar resonances in Jones's own work were enhanced by his encounter with Eliot's translation of the Francophone Caribbean poet St-John Perse's Anabase, an encounter which enabled Jones to establish an idiom responsive to the divergent cultural affinities inherent in ‘our situation’.

Use of high-resolution NWP rainfall and river flow forecasts for advance warning of the Carlisle flood, north-west England

On the 8 January 2005 the city of Carlisle in north-west England was severely flooded following 2 days of almost continuous rain over the nearby hills. Orographic enhancement of the rain through the seeder–feeder mechanism led to the very high rainfall totals. This paper shows the impact of running the Met Office Unified Model (UM) with a grid spacing of 4 and 1 km compared to the 12 km available at the time of the event. These forecasts, and forecasts from the Nimrod nowcasting system, were fed into the Probability Distributed Model (PDM) to predict river flow at the outlets of two catchments important for flood warning. The results show the benefit of increased resolution in the UM, the benefit of coupling the high-resolution rainfall forecasts to the PDM and the improvement in timeliness of flood warning that might have been possible. Copyright © 2008 Royal Meteorological Society

The Prophetic Sound: a day and night of noise cabaret(symposium of talks and live performances)

'The Prophetic Sound: a day and night of noise cabaret' is the first event hosted by Agency of Noise. This all day event brought together artists and academics whose subject of focus is noise (in creative practice). Artists from across the UK were invited to consider a future post-digital era in which everything with a microchip has malfunctioned, as a thought exercise and starting point for response through sound. In response to Jacques Attali’s claim that music is prophecy, The Prophetic Sound asks us to consider if noise can communicate in an unbridled, unfiltered, way that is somehow not culturally coded -before it becomes sound that is recognised, refined, manipulated and exploited for musical or other cultured purpose. Featuring students from Reading, Brighton, LCC and Goldsmiths alongside more established artists and academics from across the UK, this event brings into focus locations where pattern, timbre, pitch, organisation and sequencing of sounds become distinguishable from noise and asks us to consider, through diversion within such locations, new origins for future communication systems. The Prophetic Sound included talks, films, presentations and performances from: Ryo Ikeshiro / Inigo Wilkins / Neal Spowage / Dane Sutherland / Poulomi Desai / Benedict Drew / AAS / Polly Fibre / Steven Dickie As part of The Prophetic Sound, POLLYFIBRE (Ellison, C.) performed LIVE RECORDING with Amplified Scissors. This industrial activity by POLLYFIBRE short-circuits the complicated chain that is music production. The distinctive roles of consumer, producer, composer, and performer collapse in a series of live ‘cuts’ where vinyl discs are produced with amplified scissors. Production happens through action and action becomes production. A limited edition of 9 flexi discs were produced and available for special collectors at the event.