Active real estate managers outperform, study shows

first_imgHe said the average outperformance of 1.9% per year “was not accompanied by increased risk or less diversification”.The research carried out by Cremers and Lizieri, professor of real estate finance at Cambridge University in the UK, looked at 256 funds in IPD’s UK database over the 10 years to the end of 2011.The research compared property holdings by aggregating fund weights by segment and geography in order to compare them to a benchmark. This enabled the researchers to see whether a fund had a higher or lower share of assets managed actively.It then used this adapted active-share measure for property at the segment level in the UK and tested whether higher active-share managers tended to outperform lower active-share managers.Funds in the highest active-share group had 31 properties on average — the lowest number of holdings among all groups — and had an average size of around £200m (€239m).Russell Chaplin, CIO for property at Aberdeen Asset Management, noted that such funds could have been forced to be active because they were too small to enter markets such as prime Central London offices or large shopping centres.He said managers of these types of property portfolios could not track an index and so had to take a bottom-up approach to stock selection to deliver long-term value. “This research is a vindication of that approach and extends principles which have a firm basis in the equity markets to the property sector,” he said.Chaplin added: “This research shows you don’t need to be that big to be able to outperform.”The research also shows that benchmarks are there for measurement purposes and not as construction tools, according to Chaplin.He said it was always tempting for managers to monitor how they were performing relative to an index even if they were not tracking it, which could lead them to change allocations.“This shows you shouldn’t worry about those positions benchmark-related,” he said.“Each manager needs to have the courage of their convictions in the assets they’re selecting and stick with those assets.” Real estate funds are more likely to outperform and generate returns that are less volatile if their sector weightings deviate from the index, according to new research.The study by Aberdeen Asset Management, advised by professors Martijn Cremers and Colin Lizieri, found that funds with the “highest segment active share” — or those with the highest proportion of assets allocated independently of the index — generated an alpha of 1.9% on average per year.The research applied principles to the UK property sector that had previously only been used for equities, to see whether active managers generated outperformance.Cremers, professor of finance at the Mendoza College of Business at the University of Notre Dame in the US, said: “Our study confirms that active management in property has benefitted investors.”last_img read more


NFL opener no classic, even with exciting finish

first_img“This stings for sure,” said Falcons coach Dan Quinn, who certainly knows that feeling after the Super Bowl collapse two seasons back against New England, and then last winter’s divisional playoff loss here that ended almost exactly the same way as Thursday night’s defeat. “We knew this would be a competitive fight that would come down to the end, and it did.”Competitive? For sure.Classic? Not even close.“It wasn’t pretty, it was sloppy,” All-Pro tackle Lane Johnson said. “But at the end we got a win.”What NFL fans got ultimately might be an indictment of the preseason.ADVERTISEMENT NCAA: Late rally lifts Lyceum past JRU to stay unbeaten “It just came down to closing really,” Atlanta cornerback Desmond Trufant said.This was one opening show that artistically deserved to close after one night.Sports Related Videospowered by AdSparcRead Next Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Carpio hits red carpet treatment for China Coast Guard PLAY LIST 02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award Gov’t to employ 6,000 displaced by Taal Don’t miss out on the latest news and information. In Julio Jones’ case, it’s simple to say, “Who needs it?”Jones didn’t play a down in August, but he was unstoppable against a Philadelphia defense that handled everyone else, especially the scatter-shot arm of Matt Ryan. While local native Ryan once again was struggling at the Linc, Jones still managed to make 10 receptions for 169 yards. Only when Atlanta got within the Eagles 20-yard line did Jones not dominate — in great part because Ryan kept making misguided throws.Frankly, while Jones seemed to be in all-world form, Ryan — a virtual non-participant in the exhibition games — looked rusty.The Eagles weren’t a whole lot better. Other than their opportunism and some creativity, they also were plagued by mistakes on both sides of the ball.Super Bowl MVP Nick Foles caught another pass; it didn’t score a touchdown as the quarterback did against the Patriots, but it set up one of Jay Ajayi’s two TD runs. That was fun.But the dropped passes, including some potential interceptions, and silly errors such as a blocker on the punt team letting the ball touch his foot, looked like something straight out of, well, an exhibition game.“It wasn’t a rhythmic game but we fought hard and did the job,” Foles said. “Winning isn’t easy, especially against Atlanta. It was a dogfight. Our defense did a great job.”If this is a harbinger of what the other openers might look like on Sunday and Monday, fans might want to juggle their viewing schedules. Remember, virtually every team preserved regulars for the games that count. Unfortunately, that just might mean counting the number of flags that fly and errors that occur from Miami to Minneapolis, from Detroit to Denver, more so than the touchdowns going up on the scoreboard.“We made a ton of mistakes today,” safety Malcolm Jenkins noted. “But every time we got out there, we dealt with the situation. If we made mistakes, we moved on and we tried to win the situation.”The Eagles did, displaying the kind of resilience that helped them to last season’s title. The Falcons flopped again in a tight spot, though it’s inconceivable such a talented group will continue to get in its own way like this again. Tim Cone, Ginebra set their sights on elusive All-Filipino crown And even with a weather delay featuring some lightning before the Eagles and their fans could celebrate the unveiling of the banner for their first championship since 1960, this wasn’t exactly a sparkling display of football.You can credit two pretty staunch defenses if you want. Yet despite neither team reaching 300 yards in total offense, neither D was dynamic because plays were there to be made. The offenses rarely could do so.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSJapeth Aguilar wins 1st PBA Finals MVP award for GinebraSPORTSTim Cone still willing to coach Gilas but admits decision won’t be ‘simple yes or no’And then there were the penalties. Altogether, 30 points were scored — and two teams expected to contend for the NFL title compiled 26 penalties. It’s never a good sign when flags nearly equal points.Hey, the Super Bowl champions gained 232 yards and gave away 101 in penalties. Atlanta, which must think there are hot coals lining the red zone at the Linc, gained 299 but had 135 yards in penalties. Allen Durham still determined to help Meralco win 1st PBA titlecenter_img LATEST STORIES Ginebra beats Meralco again to capture PBA Governors’ Cup title View comments Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Nadine Lustre’s phone stolen in Brazil Gretchen Barretto’s daughter Dominique graduates magna cum laude from California college MOST READ Japeth Aguilar embraces role, gets rewarded with Finals MVP plum Atlanta Falcons’ Julio Jones, front right, cannot catch a pass against Philadelphia Eagles’ Ronald Darby during the final second of an NFL football game early Friday, Sept. 7, 2018, in Philadelphia. Philadelphia won 18-12. (AP Photo/Michael Perez)PHILADELPHIA — Even with an exciting finish eerily similar to last January’s playoff game, this was pretty much a forgetful opener to the NFL season.Even with another Philly Special, there wasn’t a whole lot to cheer about in the Eagles’ 18-12 victory over the Falcons on Thursday night.ADVERTISEMENTlast_img read more