Real estate fund active management

Purpose – The purpose of this paper is to analyse the performance of UK property funds using the dual sources of active management, Active Share and tracking error, to distinguish between the types of active management styles used by funds. Design/methodology/approach – The authors use data on 38 UK real estate funds and classify them into five active management categories using the dual sources of active management, Active Share and tracking error. Then, the authors compare their return performance against Active Share, tracking error, fund size and leverage. Therefore the paper is able to answer two of the fundamental questions of investment: does active management add value and what form of active management, stock selection or factor risk, is better at adding value to the fund? Findings – There are three main conclusions. First, the approach of Cremers and Petajisto (2009) and Petajisto (2010) is able to classify real estate funds in the UK on their management activity into categories that makes intuitive sense and seem stable over time. Second, balanced funds show relatively low Active Shares and particularly low tracking errors, due to the benefits of property-type diversification. In contrast, specialists funds display higher Active Shares and both low and high tracking errors depending on their stock-picking approach; diversified or concentrated. Third, an analysis over different time periods confirmed that funds in the sample essentially remained in the same categories within the sample period, even during markedly different market return periods. This implies that investors need to constantly monitor changes in the market and switch between fund management styles, if at all possible. Research limitations/implications – The analysis was only based on 38 funds with complete data over the sample period and the relationship between fees and active management was not examined, even though ultimately investors are concerned with returns after management fee. It would be instructive therefore if the number of funds and time period was expanded to see if the results are robust and to see whether management fees outweigh the benefits of active manager. Practical implications – The findings should enable investors to make a more informed investment decisions in the future. Originality/value – To the best of the author’s knowledge this is the first paper to apply the dual sources of active management, Active Share and tracking error, in the UK real estate market

Explaining deviations from NAV in UK property companies: rationality and sentimentality

One of the most vexing issues for analysts and managers of property companies across Europe has been the existence and persistence of deviations of Net Asset Values of property companies from their market capitalisation. The issue has clear links to similar discounts and premiums in closed-end funds. The closed end fund puzzle is regarded as an important unsolved problem in financial economics undermining theories of market efficiency and the Law of One Price. Consequently, it has generated a huge body of research. Although it can be tempting to focus on the particular inefficiencies of real estate markets in attempting to explain deviations from NAV, the closed end fund discount puzzle indicates that divergences between underlying asset values and market capitalisation are not a ‘pure’ real estate phenomenon. When examining potential explanations, two recurring factors stand out in the closed end fund literature as often undermining the economic rationale for a discount – the existence of premiums and cross-sectional and periodic fluctuations in the level of discount/premium. These need to be borne in mind when considering potential explanations for real estate markets. There are two approaches to investigating the discount to net asset value in closed-end funds: the ‘rational’ approach and the ‘noise trader’ or ‘sentiment’ approach. The ‘rational’ approach hypothesizes the discount to net asset value as being the result of company specific factors relating to such factors as management quality, tax liability and the type of stocks held by the fund. Despite the intuitive appeal of the ‘rational’ approach to closed-end fund discounts the studies have not successfully explained the variance in closed-end fund discounts or why the discount to net asset value in closed-end funds varies so much over time. The variation over time in the average sector discount is not only a feature of closed-end funds but also property companies. This paper analyses changes in the deviations from NAV for UK property companies between 2000 and 2003. The paper present a new way to study the phenomenon ‘cleaning’ the gearing effect by introducing a new way of calculating the discount itself. We call it “ungeared discount”. It is calculated by assuming that a firm issues new equity to repurchase outstanding debt without any variation on asset side. In this way discount does not depend on an accounting effect and the analysis should better explain the effect of other independent variables

Plasma Electrolytic Oxidation (PEO) layers from silicate/phosphate baths on Ti-6Al-4V for biomedical components: Influence of deposition conditions and surface finishing on dry sliding behaviour

Plasma Electrolytic Oxidation (PEO) layers were produced on Ti-6Al-4V in different conditions, so as to assess the influence of layer structure, current mode, duty cycle and surface finishing on microstructural features and tribological behavior. In DC regime, the double-layer structure (silicate bath followed by phosphate bath) beneficially affected wear resistance. In unipolar pulsed DC (phosphate bath), the wear resistance of single layers improved with increasing duty cycle, due to improved microstructure and adhesion: high duty cycle single layers can be considered an alternative to double-layer deposition. Surface finishing by abrasive blasting with spheroidal glass beads leads to surface roughness decrease and hence to decreased friction and improved wear resistance. The best-performing PEO layers showed promising results in the comparison with reference materials such as CoCrMo (both uncoated and (Ti,Nb)N PVD-coated) and PVD-coated Ti-6Al-4V up to 30 N normal load

An alien invader is the cause of homogenization in the recipient ecosystem: a simulation-like approach.

Biotic homogenization is an expected effect of biological invasions. Invasive alien species typically show great adaptability to a wide range of environmental conditions and may expand into different habitats, thus reducing the dissimilarity among the recipient communities. We tested this assumption by analyzing a comprehensive database (78 species x 229 samples) collected between 2012 and 2017 in the marine protected area of Portofino (NW Italy), where Caulerpa cylindracea, one of the worst invaders in the Mediterranean Sea, exhibits high substratum cover at depths between 1 m and 45 m in 14 different communities (identified according to the European Nature Information System EUNIS for habitat classification). Five samples for each of the eight depth zones (i.e., 5 m, 10 m, 15 m, 20 m, 25 m, 30 m, 35 m, and 40 m) were randomly re-sampled from the comprehensive database to produce a dataset of 67 species x 40 samples. Then, a second dataset of 66 species x 40 samples was simulated by excluding Caulerpa cylindracea. Both re-sampled datasets underwent multivariate analysis. In the presence of C. cylindracea, the overall similarity among samples was higher, thus indicating homogenization of the rocky reef communities of Portofino Marine Protected Area. Continued monitoring activity is needed to understand and assess the pattern and extent of C. cylindracea\u2019s inclusion in the recipient ecosystems

Influence of Anodizing by Electro-Chemical Oxidation on Fatigue and Wear Resistance of the EV31A-T6 Cast Magnesium Alloy

In the last decades, several anodizing processes for Mg alloys have been proposed to achieve a good wear and corrosion resistance combination. In particular, Electro-Chemical Oxidation (ECO) showed an improved dense and compact anodized layer compared to other anodizing processes carried out above the dielectric breakdown voltage, such as Plasma Electrolytic Oxidation (PEO). However, the influence of the ECO treatment on the tribological behavior and cyclic mechanical performance of Mg alloys has not been investigated yet. This paper reports on the influence of ECO on dry sliding behavior (vs. 100Cr6 bearing steel (block-on-ring contact geometry)) and rotating bending fatigue performance of the rare earth (RE)-containing Mg alloy EV31A-T6, comparing it with both untreated EV31A-T6 and PEO-treated EV31A-T6, used as benchmarks. The ECO-treated alloy showed improved tribological behavior (critical load for coating failure one order of magnitude higher and coefficient of friction 40% lower than for PEO) and fatigue strength (no decrease for ECO-treated samples compared to the untreated alloy, while PEO-treated samples induced a 15% decrease) due to the increased compactness and lower defectivity of the anodized layer, induced by the minimization of destructive arc discharges during coating growth. In addition, the ECO treatment significantly improved wear resistance compared to the untreated alloy, avoiding, at the same time, the decrease in fatigue strength, which typically occurs after PEO. Therefore, the ECO process can be applied to improve wear resistance without decreasing the fatigue strength of high-performance components

Ecological change, sliding baselines and the importance of historical data: Lessons from combing observational and quantitative data on a temperate reef over 70 years

Understanding the effects of environmental change on ecosystems requires the identification of baselines that may act as reference conditions. However, the continuous change of these references challenges our ability to define the true natural status of ecosystems. The so-called sliding baseline syndrome can be overcome through the analysis of quantitative time series, which are, however, extremely rare. Here we show how combining historical quantitative data with descriptive 'naturalistic' information arranged in a chronological chain allows highlighting long-term trends and can be used to inform present conservation schemes.We analysed the long-term change of a coralligenous reef, a marine habitat endemic to the Mediterranean Sea. The coralligenous assemblages of Mesco Reef (Ligurian Sea, NW Mediterranean) have been studied, although discontinuously, since 1937 thus making available both detailed descriptive information and scanty quantitative data: while the former was useful to understand the natural history of the ecosystem, the analysis of the latter was of paramount importance to provide a formal measure of change over time. Epibenthic assemblages remained comparatively stable until the 1990s, when species replacement, invasion by alien algae, and biotic homogenisation occurred within few years, leading to a new and completely different ecosystem state. The shift experienced by the coralligenous assemblages of Mesco Reef was probably induced by a combination of seawater warming and local human pressures, the latter mainly resulting in increased water turbidity; in turn, cumulative stress may have favoured the establishment of alien species. This study showed that the combined analysis of quantitative and descriptive historical data represent a precious knowledge to understand ecosystem trends over time and provide help to identify baselines for ecological management

Is kinesiophobia a predictor of early functional performance after total hip replacement? A prospective prognostic cohort study

Background: Considerable attention has been paid to the role of kinesiophobia with respect to knee prosthesis but it has not yet been studied as a prognostic factor of short-term functional performance following total hip replacement. The main purpose of the present study is to examine the possible predictors of early functional performance of patients undergoing total primary hip arthroplasty, including demographics as age, sex and body mass index, preoperative functional ability, type of anaesthesia, level of haemoglobin, pain and level of kinesiophobia before surgery. Secondly, we want to describe the main characteristics of the population with the highest levels of kinesiophobia. Methods: A prospective, prognostic cohort study was carried out. Patients undergoing primary hip replacement were recruited consecutively. The main outcome is the early functional performance achieved by patients after surgery and measured using the Iowa Level of Assistance (ILOA) scale on the fifth postoperative day. Preoperative kinesiophobia was measured by the Tampa Scale and the preoperative functional ability by the Western Ontario and McMaster Osteoarthritis Index (WOMAC). The multivariate analysis was performed by the General Linear Model. The analysis of the population with high levels of kinesiophobia was conducted by identifying a cut-off of 40 compared to the Tampa Scale. Results: Statistical analysis was performed on 269 patients. The average ILOA score recorded was 19.5 (DS 8.3). The levels of kinesiophobia, showed an average score of 35.1 (7.8) and it was not associated with early functional performance. The independent predictive factors include age, sex and body mass index. Kinesiophobia high levels were recorded in 30% of the population and this population had a higher level of pre-operative WOMAC score. Conclusions: Early functional performance after hip replacement surgery was not correlated with the level of kinesiophobia. Three significant factors that describe a population most at risk of not achieving optimal functional performance are increased age, being female and increase in body mass index. In the preoperative phase, high levels of kinesiophobia were associated with more impaired preoperative functional ability. Trial registration: Current Controlled Trials NCT02786121, May 2016. Retrospectively registered

Friction Stir Welding of aluminium based composites reinforced with a L2O3 particles: effects on microstructure and charpy impact energy

The aim of the present research was to study the effect of the Friction Stir Welding process on the microstructure and impact toughness of the composites W6A20A (AA6061 reinforced with 20vol.% of Al2O3 particles) and W7A10A (AA7005 reinforced with 10vol.% of Al2O3 particles). FSW, because of the concurrent effect of severe plastic deformation and frictional heating during welding, had effects both on the reinforcing particles and the aluminium matrix. It induced a significant reduction in the reinforcement particles size and their better distribution in the welded zone as well as a grain refinement of the aluminium alloy matrix in the nugget due to dynamic recrystalizzation. The frictional heating, moreover, had effects on the growth, dissolution and re-precipitation of hardening precipitates. The impact tests showed that the total impact energies increased in the FSW composites, respect to the corresponding base materials

Caratterizzazione microstrutturale e meccanica di giunti in composito AA6061/20%vol.Al2O3p ottenuti mediante Friction Stir Welding

Nel presente articolo vengono descritti i risultati delle caratterizzazioni microstrutturali e meccaniche effettuate su giunti in composito AA6061/20%vol.Al2O3p, ottenuti mediante Friction Stir Welding (FSW). Le analisi microstrutturali hanno evidenziato un sostanziale affinamento ed arrotondamento delle particelle di rinforzo nella zona FSW, indotto dall’utensile, oltre ad una diminuzione delle dimensioni dei grani della matrice, probabilmente conseguente a fenomeni di riscristallizzazione dinamica nel corso della saldatura. Non sono stati evidenziati fenomeni di segregazione del rinforzo, porosità o altri difetti microstrutturali tipici di processi di saldatura per fusione. I profili di microdurezza interparticellare hanno mostrato una diminuzione delle stessa in corrispondenza del cordone, che è stata correlata ad un probabile sovrainvecchiamento della matrice, generato dal calore sviluppato per attrito. Le prove di trazione hanno fornito un’efficienza del giunto pari a circa il 72%, rispetto alla resistenza a trazione. Le prove di fatica oligociclica hanno mostrato che il composito saldato resiste ad un numero di cicli inferiore fino ad un ordine di grandezza rispetto al composito base. Le analisi frattografiche hanno evidenziato meccanismi di frattura sostanzialmente analoghi per il composito saldato e non

Influence of the solidification microstructure and porosity on the fatigue strength of Al-Si-Mg casting alloys

The fatigue behavior of Al-Si-Mg castingalloys is affected by the solidificationmicrostructure and especially by defects suchas gas pores, shrinkage pores and oxidefilms. This paper reports the microstructuralcharacterization of a die cast engine headmade of the A356 (G-AlSi7Mg0.3) alloy andthe long-life fatigue strength determinationusing specimens extracted from the cast. Themicrostructural characterization wasachieved by optical microscopy and digitalimage analysis to identify the different classesof solidification defects and to evaluate thecorrelation between local SDAS and the sizeand shape of the defects. Fatigue testing wasperformed under rotating bending and thestress amplitude vs cycles to failuredependence showed a large scatter. Thereason for this is related to local stressconcentration induced by the pores, whichwas analyzed by the finite element method,developing models of a material volumecontaining solidification pores characterizedby 2D and 3D techniques (i.e. opticalmicroscopy with image analysis and X-raytomography, respectively)