Academic literature on the topic 'Real property fund'
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Journal articles on the topic "Real property fund"
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Ilkiv, O. V. "The legal nature of the relationship for the acquisition of certificates real estate fund." Uzhhorod National University Herald. Series: Law, no. 64 (August 14, 2021): 123–27. http://dx.doi.org/10.24144/2307-3322.2021.64.23.
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The article analyzes the legal nature of relations and the content of rights that arise on the basis of agreements for the acquisition of certificates of the real estate fund, and in particular the procedure for their implementation. The author considers the nature of the legal relationship, in which the main purpose is for the manager to perform the duties of the trustee with the greatest benefit and in the interests of the holders of certificates of real estate funds. An analysis of the relationship of participation in the real estate fund allows us to conclude that the trust relationship can be transformed into an absolute property right of the manager of the real estate financing fund, and investors (holders of real estate fund certificates) finance the construction.The funds invested in the real estate financing fund are used to finance a specific object. In the further investment process other participants take part, including the developer with whom the owner of the certificate of fund of real estate operations, is not in contractual relations. The owner of the certificates of the real estate fund has the right to require the manager to comply with the restrictions of the right of trust ownership in the process of fund management.The characteristics of the relationship for the acquisition of certificates of the real estate fund, where the basis of the binding relationship is property, is emphasized by differences and commonalities. The difference is that in contrast to property relations, which mostly involve the existence of the object, the moment of their occurrence, the inclusion of the object in the legal relationship is carried out by performing actions that must or may be performed by their participants, or from which you need to refrain.It is concluded that the agreement on the acquisition of FON certificates belongs to the generic type of property management agreements and the application of this agreement in the field of housing construction is due only to the fact that in this way funds are raised for its financing. transfer of ownership of housing.
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Lee, Stephen, and Giacomo Morri. "Real estate fund active management." Journal of Property Investment & Finance 33, no. 6 (September 7, 2015): 494–516. http://dx.doi.org/10.1108/jpif-06-2014-0043.
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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.
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Karyy, O., О. Grytsay, P. Sorokovyi, and T. Khomuliak. "FINANCING OF HOUSING THROUGH REAL ESTATE FUNDS: THE RELATIONSHIP BETWEEN LEGAL, TAX AND ACCOUNTING ASPECTS." Financial and credit activity: problems of theory and practice 3, no. 38 (June 30, 2021): 68–77. http://dx.doi.org/10.18371/fcaptp.v3i38.237421.
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Abstract. The article examines the processes of housing construction financing through the mechanism of creating funds for real estate transactions from the standpoint of legal and scientific-theoretical justification. The interrelation of legal, tax, and accounting aspects in the process of housing financing through real estate funds and the impact of the issuance of property certificates as equity instruments on the activities of managers of real estate funds are determined.
In the context of providing the housing with financial resources, the dynamics of the index of capital investment in housing construction and the commissioned area of residential real estate as indicators of housing development are analyzed in recent years in Ukraine.
It is determined that the current Ukrainian legislation provides five mechanisms of financing of housing construction: construction financing funds, housing cooperatives, real estate funds, mutual investment institutions, issuance of interest-free (target) bonds. However, not all of them are widely used. In the course of the research, it was established that real estate funds are created for the owners of certificates of this fund to receive income from real estate transactions. Certificates of the real estate fund, which the manager issues when creating such a fund, are securities that certify the right of its owner to receive income from investing in real estate transactions and are in their economic essence equity securities.
Emphasis is placed on the accounting aspect of such financing as the main source of financial information for managing the activities of the real estate fund. To improve the accounting and analytical support for the management of such a fund, the correspondence of accounts is proposed to reflect the typical business transactions related to the management of the property of the real estate fund.
Based on a critical analysis of the current domestic legislation, the tax consequences of the processes of housing construction financing through the mechanism of creating funds for real estate transactions are substantiated.
Keywords: financing, housing construction, real estate fund, objects of accounting, taxation.
JEL Classification G23, H25, L74, M41, R21
Formulas: 0; fig.: 2; tabl.: 1; bibl.: 22.
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Zaleczna, Magdalena, and Rafał Wolski. "Polish Pension Funds Investment - is There A Place For Real Property in A Portfolio?" Folia Oeconomica Stetinensia 9, no. 1 (January 1, 2010): 151–66. http://dx.doi.org/10.2478/v10031-010-0014-6.
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Polish Pension Funds Investment - is There A Place For Real Property in A Portfolio?The pension fund investments should be characterised by a long term, low risk and profitability, which implicates the necessity of portfolio diversification. In general, pension funds having regular long-term contributions should develop the long-term policy and its effects would be responsible for the economic position of their future beneficiaries. The ways of capital allocation are also critical in terms of the entire economy, as a constant flow of financial resources provided by pension funds stimulates the activity of its recipients. The typical assets in a pension fund's portfolio in the developed economy are stocks, bonds and real property owing to low (negative) correlation between these assets and their diversified potential. The legal investment limits imposed on the Polish pension funds exclude direct investment in real property, which is responsible - in the authors' opinion - for the lower level of diversification and hinders the risk reduction. The authors analyze the Polish pension fund portfolios focusing on risk and return levels. The aim of the study is to find the answer to the important question about the results of hypothetically added real property to the portfolios of pension funds.
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van den Heuvel, Tom, and Jaroslaw Morawski. "Performance drivers of German institutional property funds." Journal of Property Investment & Finance 32, no. 2 (February 25, 2014): 154–67. http://dx.doi.org/10.1108/jpif-03-2013-0017.
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Purpose – The aim of this paper is to improve the understanding of what drives the performance of non-listed real estate funds. Design/methodology/approach – The authors performed a panel regression analysis on the basis of an extensive sample from Investment Property Databank (IPD) covering returns and selected characteristics of German Spezialfonds over a period of five years from 2006 until 2010. The analysis was performed for the whole sample as well as separately for three distinctively different subperiods: the boom of 2006-2007, the downturn of 2008-2009 and the recovery of 2010. Findings – The analysis uncovered significant differences in the drivers across the cyclical phases. During the boom phase, leverage and global portfolio allocation positively affected returns, while allocation to Germany had a negative effect. In contrast, fund volume, management costs and allocation to offices led to underperformance. Finally, in the recovery of 2010, leverage, allocation to Germany and diversification across property types improved performance, while higher liquidity and focus on retail had a negative impact. Practical implications – In addition to providing extensive and unique insights into the determinants of performance of the German Spezialfonds, the results should be of interest to fund managers looking for advice on the optimal positioning of their funds in response to changing economic environments. Originality/value – Despite the significant practical importance of the topic for the real estate fund industry, it has been addressed by few researchers so far.
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Baranyai, Eszter. "Open-ended real estate funds: from flows to property." Journal of Property Investment & Finance 37, no. 6 (September 2, 2019): 555–69. http://dx.doi.org/10.1108/jpif-06-2019-0080.
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Purpose The purpose of this paper is to uncover the relationship between flows and real estate investment at open-ended real estate funds (OEREFs). Design/methodology/approach The study employs fixed-effects panel regressions, relying on data from the Hungarian fund managers’ trade association. First, the effect of lagged flows on allocation to real estate is assessed. Second, the paper studies how this relationship changes as the cyclical position of CRE market advances using two proxies. Findings Flows are found to affect funds’ real estate holdings if they occurred 12–18 months earlier. Inflows (outflows) in the preceding six months demonstrably lower (increase) funds’ real estate holdings ratio. Beyond this relationship, findings do not suggest that less funds are channelled to real estate as “CRE heat” intensifies. Practical implications In an environment marked by strong cash inflows, the investment lag can translate into a significant drop in funds’ exposure to real estate. The share of real estate at Hungarian funds in the sample, for example, fell from 79 to 50 per cent on average over the period of 2011–2017. Measures designed to limit inflows are in the interest of those existing investors who wish to avoid a dilution of the core investment strategy. Originality/value The paper adds to the literature on OEREFs which has been particularly scarce on liquidity transformation during non-crisis times and on non-German funds.
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Mičurová, V. "Development of structure and exploitation of agriculture land fund in Latvia." Agricultural Economics (Zemědělská ekonomika) 49, No. 4 (March 1, 2012): 179–83. http://dx.doi.org/10.17221/5376-agricecon.
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Agriculture is a sector in Latvia which plays an important role in the country’s economy and the same time performs a significant social, environmental and ethno-cultural function. Latvia has favourable conditions for the development of organic agriculture. The aim of land reform is to reorganise legal, social and economic relationships of land property and land use to facilitate the development of infrastructure, land protection and rational land use according to the interests of society. In Latvia, the land reform is practically carried out in three directions – restitution of real estate rights, privatisation of real property and compensation for previous real estate. At the moment, the main and urgent goal concerns strengthening of the results of land reform. It means that all the information on real estates (land and buildings), uses and area of lease obtained during the previous course of land reform must be reflected into the real property cadastre.
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Mattarocci, Gianluca, and Georgios Siligardos. "Income return versus capital appraisal for real estate funds during the financial crisis." EuroMed Journal of Business 10, no. 1 (May 5, 2015): 66–79. http://dx.doi.org/10.1108/emjb-01-2014-0005.
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Purpose – The overall performance of real estate funds can be ascribed to capital appreciation and/or income return. The Italian property funds market has grown significantly over the past few years; however, little is known about the key drivers of property fund performance. The purpose of this paper is to measure the impact of two sources of funds’ performance and identify their relevance during the financial crisis. Design/methodology/approach – The paper considers the Italian market in the last decade and analyses the annual reports of public real estate funds, separating appraisal returns from income returns. By considering a wide time horizon, it evaluates if the roles of income returns and capital gains with respect to overall performance are more or less influenced by fund characteristics, such as asset diversification, concentration, and leverage. Findings – The contribution of income return and capital growth are not strictly related to the overall performance of Italian real estate funds, with a significantly lower correlation during the global financial crisis. Furthermore, the main drivers of the two income sources are not strictly comparable. Originality/value – The paper presents the first analysis on the source of income return for the Italian real estate funds and it represents one of the few studies that considers the effect of the financial crisis on European indirect real estate investments, capital appreciation and income return.
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Berry, Jim, Stanley McGreal, Karen Sieracki, and Ramon Sotelo. "An assessment of property investment vehicles with particular reference to German funds." Journal of Property Investment & Finance 17, no. 5 (December 1, 1999): 430–44. http://dx.doi.org/10.1108/14635789910294868.
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Property investment vehicles are reviewed from a literature perspective drawing upon the experience of real estate investment trusts in the USA and contrasting this with European examples. The primary focus of the paper is upon German funds, using survey evidence to evaluate their structural characteristics. The paper forwards from a theoretical perspective an assessment framework indicating how different types of fund can be matched to product opportunities on the basis of risk, appreciation potential, nature of contract, location and use.
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Leontev, E. V., and Yu V. Leontyeva. "Individual property tax to fund public transport." Journal of Tax Reform 7, no. 1 (2021): 6–19. http://dx.doi.org/10.15826/jtr.2021.7.1.087.
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Efficient and reliable public transport is of prime concern to city dwellers. To function efficiently, public transport generally needs subsidies from the state or local government. Our goal was to design and develop an alternative model of property tax that would provide financing for public transport. It was hypothesised that if the market value of real estate depends on the proximity of public transport, property tax can be a reliable source of financing for public transport. Based on the hedonic pricing theory, we used multiple regression to measure the impact of public transport proximity on the value of residential property. The data on the market value of property and property tax was taken from statistical tax reporting forms of the Federal Tax Service. The data on various public transport infrastructure facilities was used from the specialized open registers. We tested our alternative model of property tax, using the case of the Ekaterinburg Metro and the Tram and Trolleybus Company, through regression analysis of 7,685 objects of residential property in the City of Ekaterinburg. It was found that the efficiency of the underground service is higher than that of the city’s tram network. On the average, the proximity of underground stations increases the value of housing by over 6%. As predictive estimation of the amount of tax determined by the proximity of public transport showed, the alternative model of property tax is sufficient to cover capital expenditures of the city’s public transport operators and could, therefore, contribute to further expansion and modernization of the transport network.
Dissertations / Theses on the topic "Real property fund"
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West, Matt. "The feasibility of establishing a diversified hotel property fund on the Johannesburg Stock Exchange." Thesis, Stellenbosch : Stellenbosch University, 2005. http://hdl.handle.net/10019.1/50491.
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Thesis (MBA)--Stellenbosch University, 2005.ENGLISH ABSTRACT: This study explores the feasibility of establishing a diversified hotel property fund (DHPF) on the Johannesburg Stock Exchange. To be launched in 2005/2006, the proposed unit trust fund is made up of a diversified portfolio of hotels located throughout South Africa. Research suggests that Hotel Property Funds have traditionally been the most volatile of Real Estate Investment Trusts (REITs) with their share value largely dependent on hotel revenue. However, investing in HPFs and REITs have numerous advantages such as their stipulated 90% dividend-payout ratio, steady stream of cash flow and zero corporate income taxes. The Property Unit Trust sector in South Africa in 2003 realised annualised rates of returns of 39%, and furthermore, the economic outlook and hotel industry sector show promising signs with economic growth rates for 2004 and 2005 reaching 4% and 5% respectively. This study thus considers whether a hotel property fund will succeed in South Africa and what returns investors can expect. By drawing on empirical and primary research and lessons learnt from international best practices this ground-breaking report identifies and analyses key performance variables of HPFs and REITs and applies them to a South African context. These variables include; capital structure, investment strategy, risk and return, Net Asset Value (NA V) and initial public offerings (IPO's). The report establishes that there is no optimal capital structure for REITs and only when the market reacts to the issuance of debt can one tell if the REIT is favourably structured or not. Concerning investment strategy, investors are in general, often lured to a diversified portfolio, however this report suggests that there is no optimal strategy for investing in REITs. In addition, over a medium to long term, REIT performance is strong, while over the short term performance is varied impacting on investor strategy. In assessing risk and return it was concluded that including REIT shares in an already diversified portfolio, the maximum expected return for each given level of risk is increased, and the level of risk for each level of expected return is reduced. Furthennore, the performance of RElTs is not necessarily detennined by size or Net Asset Value and thus small and large REITs can offer investors similar returns. Finally, initial-day returns for industry lnitial Public Offerings (lPO's) easily outperfonn REIT lPO's. Similarly to RElTs, there are numerous advantages to Hotel REITs which include, unlocking and redeployment of capital, investment spread and risk reduction and the provision of synergies between counter cyclical performing properties. However, empirical research indicates that Hotel REITs prove to be the most volatile of REIT sectors. Hotel REITs differ enonnously from their parent group in terms of their revenue & earnings which are more diverse in source and are generated from short-tenn leases. As such. Hotel REITs are also considered to be more management intensive. As with REITs there is no evidence to suggest an optimal capital structure and with the envisaged 50% debt ratio, the DHPF could be considered to be following international best practices. Several drawbacks with Hotel REITs include the lowest dividend yield among all RElT sectors, high volatility in income earnings, sensitivity to upswings and downturns in the tourism market, large capital investments and fixed operating expenses for staff and infrastructure. However despite these obstacles and in answer to the research problem, the prospects of the DHPF succeeding in South Africa are very high indeed. The REIT and Hotel REIT markets have proved successful throughout major capital markets, providing investors with a multitude of benefits. South Africa's economic and tourism climate is very favourable. The Property Unit Trust (PUT) sector has performed immensely well and investors can expect a healthy return which, as shown, is considerably higher than other investments. Finally, the fund is being spearheaded by a high calibre DHPF management team, which is key to the listing and management of the fund.
AFRIKAANSE OPSOMMING: Hierdie studie ondersoek die moontlikheid om 'n Diverse Hotel Eiendomsfonds (DHEF) op die Johannesburgse Aandelebeurs te loods. Die huidige aanvangsfase sal in 2005/2006 wees, en sal bestaan uit 'n portfolio van verskillende hotelle wat reg oor Suid-Afrika versprei is. Die navorsing toon dat hoteleiendomsfondse tradisioneel die mees veranderlikste van die Eiendoms Beleggings Trusts (EBT) was en dat die aandeel waarde hoogs afhanklik is van die hotel se inkomste. Nieteenstaande, het investering in DHEFs en EBTs 'n verskeidenheid van voordele soos die voorgeskrewe 90% dividend uitbetalingspersentasie, 'n bestendige kontantvloei en geen korporatiewe inkomstebelasting nie. Die eiendomsbeleggingsfondse sektor in Suid-Afrika het gedurende 2003 'n jaarlikse groei van 39% getoon, en verder beloof die ekonomiese uitkyk in die hotel bedryf om tussen 4% en 5% gedurende 2004 en 2005 onderskeidelik te groei. Gegewe die inligting, is die vraag dus of 'n hoteleiendomsfonds sukses kan behaal in Suid-Afrika en watter opbrengs beleggers kan verwag. Deur na primere empiriese navorsing, sowel as lesse wat geleer is deur beste internasionale praktyke, te bestudeer, identifiseer hierdie verslag sleutel prestasie veranderlikes van EBTs en DHEFs plaas dit in konteks van Suid-Afrika. Hierdie veranderlikes sluit in: kapitaaistruktuur, beleggingsstrategie, risiko en terugkeer, Bruto Bate Waarde (Net Assest Value) (BBW) sowel as aanvanklike openbare aanbod (Initial Public Offering) (AOA). Daar is bevind dat daar geen optimale kapitaalstruktuur vir DHEFs bereken kan word nie. Verder word aangetoon dat daar slegs bepaal kan word of EBTs se struktuur voordelig is wanneer die mark reageer op nuwe skuld wat aangegaan is. Wat beleggingsstrategie betref, is beleggers oor die algemeen meer aangetrokke tot 'n diverse portefeulje van beleggings. Hierdie verslag bevind egter dat daar geen optimale strategie is om in EBTs te bele nie. Daar word verder bevind dat medium- tot langtermyn opbrengste goed vertoon, terwyl prestasie oor die korttermyn wisselvallig is wat gevolglik 'n invloed op beleggers se strategie het. In waardering van risiko en wins, is dit bepaal dat die insluiting van EBT aandele in 'n diverse portfeulje, die maksimum verwagte opbrengs vir elke vlak van risiko verhoog en dat die vlak van fisiko vir elke vlak van die verwagte opbrengs verlaag word. Verder is daar bevind dat die prestasie van EBTs nie noodwendig bepaal word deur batewaarde of -groote nie en klein EBTs kan beleggers vergelykende opbrengste bied. Eerstedag opbrengs vir industriele AOAs presteer beter as die van EBTs. Soortgelyk aan EBTs is daar verskeie voordele aan hotel EBTs wat die ontsluiting en herontplooiing van kapitaal, beleggingsverspreiding en risikoverlaging insluit. Empiriese navorsing dui aan dat hotel EBT's die mees onstabiele van die EBT sektor is. Hotel EBT's verskil wesenlik van ander EBTs in terme van opbrengs en verdienste wat meer divers is in oorsprong en gegenereer word deur korttermyn huurkontrakte. Hotel EBTs word ook gesien as meer bestuursintensief. Net soos met EBTs is daar geen bewyse dat daar 'n optimale kapitaalstruktuur bestaan nie en met die verwagte 50% skuld verhouding, volg DHEF wereldwye beste praktyk. Daar is verskeie nadele aan hotel EBTs, insluitend die laagste dividenduitkeer onder alle EBT sektore, hoe vlakke van onstabiliteit in verdienste, sensitiwiteit vir opswaai en afloop in die toerismemark, groot kapitaalbelegging en hoe vaste operasionele uitgawes op werknemers en infrastruktuur. Die gevolgtrekking is dat ten spyte van negatiewe faktore, die vooruitsig dat DHEF in Suid-Afrika sal slaag, hoog is. Die EBT en hotel EBT mark het bewys dat dit suksesvol is in talle ander groot kapitaalmarkte wat beleggers met 'n verskeidenheid van voordele kan voorsien. Suid-Afrika se ekonomiese- en toerismevooruitsig is baie positief. Die Eiendoms Eenheids Fonds (EEF) sektor het goed vertoon en beleggers kan 'n gesonde opbrengs verwag wat, soos aangedui word, aansienlik hoer is as ander beleggings. Die fonds word gedryf deur 'n hoe kaliber bestuurspan wat krities is tot die notering en die bestuur van fondse.
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Rýznarová, Iveta. "Nájemné bytů ve vybraných lokalitách města Brna a faktory, které je ovlivňují." Master's thesis, Vysoké učení technické v Brně. Ústav soudního inženýrství, 2014. http://www.nusl.cz/ntk/nusl-232886.
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Diploma thesis is resume representing actaul residential situation in area of city Brno. It deals by comparing of ordinary chartered surveyor in individual part sof the city and view ganges of rent by looking on lacation, equipment and size of apartment. Gathered data are separated for apartments size of 1+1, 1+kk, 2+1, 2+kk, 3+1, 3+kk and bigger. Maping of market and its prices of rents is made by texts and graphics.
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Hägglund, Oscar, and Hampus Ållemark. "Property allocation in Swedish Pension Funds." Thesis, KTH, Fastigheter och byggande, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-190177.
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Swedish pension funds have vast mount of money to invest in order to maintain a stable and functioning pension system. Real estate is an important part of the investment strategy and contributes as a relatively low risk diversifier to the portfolio. The major share of Swedish pension money is place in public pension and in occupational pension. There are several institutions working to manage this capital, both governments owned and private owned institutions. Historically allocation of properties among institutional investors has taken place in the home market due to the need of local knowledge when managing real estate. Real estate is less correlated with the interest rate market creating a lag in fluctuation when the interest rate changes, this yield gap creates valuable opportunities to invest in real estate to better yields when the rate falls. Since a few years after the turn of the millennium institutional investors has increased their real estate holdings rapidly onfirming that, or at least indicating, that there exist a yield gap in real estate investments. Historically institutional investor’s allocation in property as a part of the whole portfolio has Been low, in 2001 the public pension funds had approximately 3% invested in real estate compared to todays 10 %. The main explanation to the significant increase in property allocation in the public pension funds is the low interest rate environment the market is currently experiencing. The pension funds prefer to own real estate directly for two major reasons. Since real estate is a relatively illiquid asset it is important to keep control over the investment and secondly to avoid short term behaviour. Over the past decade investments in real estate has increased with 900 billion SEK divided among the institutions invested in this thesis. This increase has established real estate as a more vital part of the pension fund portfolio and we believe that allocation levels will remain relatively stable at this level. However the Limited supply of properties suitable for pension funds will together with the decreased yield--‐gap result in a slowdown or even stop in the pension fund possibility to further increase their property allocation.
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Xing, Guoxu. "An analysis of U.K property funds classified according to U.S styles : core, value-added and opportunistic." Thesis, Massachusetts Institute of Technology, 2009. http://hdl.handle.net/1721.1/54868.
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Thesis (S.M.)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2009.This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.
Cataloged from student submitted PDF version of thesis.
Includes bibliographical references (p. 63).
This analysis explores the feasibility of sorting UK funds into three different styles, which are widely used in the US. In an overview of major factors' impact on the expected risk of a fund, the analysis shows that leverage is by far the most influential factor, followed by the subtype diversification. In a preliminary style-classification, the study uses Loan-to-Value ratio (LTV) as the dominant factor, defining funds with no debt as core, funds with LTV lower than 40% as value-added, and funds with higher than 50% LTV ratios as opportunistic. Then the study makes some adjustments to this classification based on the observation of the funds' attributes other than LTV, and the adjusted classification ends up with 19 core funds, 22 value-added funds and 21 opportunistic funds. After that, three major differences between the UK and US funds are found. First, the core approach represents a smaller portion of the UK funds than the US funds and the opposite is true for the value-added approach. To improve the feasibility of researchers comparing funds within these two countries, the thesis suggests using a fourth style, core-plus. Second, the average LTV for core and value-added approaches is much lower in the UK than in the US. Third, the US opportunistic funds seem to have better performance than their UK counterparts with similar leverage ratio, while future studies would help draw more precise conclusions about the performance comparisons.
by Guoxu Xing.
S.M.
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Steinke, Christian. "Analysis of Different Dimensions for Property Allocation Process within Real Estate Investment Companies." Thesis, KTH, Fastigheter och byggande, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-50038.
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Property companies are offering a range of financial vehicles (indirect investments) which enable investors to participate in cash-flows of voluminous properties or real estate portfolios. Effective indirect real estate investments generally consist of three main components, which ought to be synchronized: Demands of investors - property characteristics - investment vehicle However, in practice this synchronization (allocation process) turns out to be way more complex and sophisticated. The question regarding the utilization of properties within real estate investment companies is embedded in superordinate dimensions like the overall corporate strategy, which is in turn embedded in an overall economical and political environment. The purpose of the thesis at hand is to give some insights what factors and dimensions should be considered in order to implement a thoughtful allocation process. The author bases his qualitative analysis on his work experiences in two major German property companies. In this connection the author conducted several interviews with employees of different departments (e.g. Corporate Development, Controlling). Furthermore, the author´s purpose is to transfer the complex practical approach into a well-structured and clearly organized framework which presents the most important dimensions and factors and in turn have an impact on the allocation process. The thesis concludes with an outlook for the overall German economy and in particular the market for indirect real estate investments which will be followed by an emphasis of the most important factors regarding company´s property allocation process in the near future.
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Fun, Yu-jing, and 范優晶. "Surreal estate: Hong Kong's property sector and white-collar crime discourse: y Yujing Fun." Thesis, The University of Hong Kong (Pokfulam, Hong Kong), 2012. http://hub.hku.hk/bib/B47869525.
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It has been claimed by some that Hong Kong, the world’s freest economy, is
without corruption or other kinds of white-collar crime. Statistical sources suggest
that these crimes are indeed rare in the city. This study examined those claims by
looking at the practices of Hong Kong’s real estate industry, specifically through the
lens of a case study on 39 Conduit Road. The property development known as 39
Conduit Road became the centre of controversy in June 2010 when the developer,
Henderson Land, was accused of market manipulation. The study found that many
common practices in the real estate industry, such as intimidation and deception,
could constitute an abuse of power by real estate developers. The abuse of power,
especially when done in the course of an occupation, is a fundamental part of the
sociological discourse of white-collar crime. The study concluded therefore that it
was not that white-collar crime did not exist in Hong Kong but more that these
behaviours were structurally rendered invisible. The study located the failure to
observe these abuses in the city’s power structure where the local government used
its economic policy of laissez faire to turn issues into non-issues, and in its legal
culture where ambiguity in the law was construed as a right to act.published_or_final_version
Sociology
Doctoral
Doctor of Philosophy
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Hassine, Khaled. "Housing and Property Directorate/Claims Commission in Kosovo (HPD/CC) : eine Studie zur Modellwirkung von HPD/CC für den internationalen Eigentumsschutz Privater /." Wien : NWV, Neuer Wissenschaftlicher Verlag, 2009. http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&doc_number=018000063&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA.
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Haß, Lars Helge [Verfasser], Lutz [Gutachter] Johanning, and Christian [Gutachter] Koziol. "Open-ended property funds : a real estate investment vehicle between liquidity risk and diversification benefits / Lars Helge Haß. Gutachter: Lutz Johanning ; Christian Koziol." Vallendar : WHU - Otto Beisheim School of Management, 2016. http://d-nb.info/1113538376/34.
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Haß, Lars Helge Verfasser], Lutz [Gutachter] [Johanning, and Christian [Gutachter] Koziol. "Open-ended property funds : a real estate investment vehicle between liquidity risk and diversification benefits / Lars Helge Haß. Gutachter: Lutz Johanning ; Christian Koziol." Vallendar : WHU - Otto Beisheim School of Management, 2016. http://nbn-resolving.de/urn:nbn:de:hbz:992-opus4-988.
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Armonat, Stefan. "Immobilienrenditen in finanzwirtschaftlichen Modellen : investmentorientierte Portfolio-Steuerung von Immobilienanlagen /." Frankfurt am Main [u.a.] : Lang, 2006. http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&doc_number=015007894&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA.
Full textBooks on the topic "Real property fund"
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Office, General Accounting. Defense budget: Analysis of real property maintenance and base operations fund movements : report to Congressional committees. Washington, D.C. (P.O. Box 37050, Washington, D.C. 20013): The Office, 2000.
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Mathur, Shishir. A decision-support framework for using value capture to fund public transit: Lessons from project-specific analyses. San José, CA: Mineta Transportation Institute, College of Business, San José State University, 2012.
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Real estate gift: How your church can acquire major gifts without badgering donors. Columbus, Ohio: American Charter, 2006.
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New, Jersey Legislature General Assembly Revenue Finance and Appropriations Committee. Public hearing before Assembly Revenue, Finance, and Appropriations Committee on Assembly Concurrent Resolution no. 31 (OCR): (proposes an amendment to the Constitution to prohibit the use of "Casino Revenue Fund" monies to fund homestead rebates after June 30, 1985) : held May 10, 1985, Room 438, State House Annex, Trenton, New Jersey. [Trenton?]: The Committee, 1985.
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O'Brien, M. Siobhan. Pension property funds: A performance appraisal. Dublin: University College Dublin, 1994.
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Nersesyanc, Vladik. The national idea of Russia in the world-historical progress of equality, freedom and justice. Manifesto on Islam. ru: INFRA-M Academic Publishing LLC., 2021. http://dx.doi.org/10.12737/1239234.
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The article substantiates the doctrine of Zionism as a post-socialist system and the national idea of modern Russia. The basis of civilizationism is civil property, the right of every citizen to an equal share of the socialist inheritance (national property). In the current circumstances, to achieve a real socio-political agreement in the country, to overcome the war for property, to really recognize the results of previous reforms by society and to support new transformations, a fair social contract on the creation of a civil property fund is necessary.
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Doogan, Siobhan. Property funds in Ireland: A study of the diversification benefits and performance of Irish property funds 1985-1996. Dublin: University College Dublin, 1996.
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Committee, New Jersey Legislature Senate State Government. Public hearing before Senate State Government Committee: Pension fund revaluation proposal. Trenton, N.J: Office of Legislative Services, Public Information Office, Hearing Unit, 1992.
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Stevenson, S. A. W. An empirical examination of Irish property funds and inflation. Dublin: University College Dublin, Department of Banking and Finance, 1996.
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United States. Congress. Senate. Committee on Energy and Natural Resources. Subcommittee on Public Lands, National Parks, and Forests. Land and Water Conservation Fund Act amendments: Hearings before the Subcommittee on Public Lands, National Parks, and Forests of the Committee on Energy and Natural Resources, United States Senate, One hundredth Congress, first session on S. 735 ... July 14, 1987. Washington: U.S. G.P.O., 1987.
Find full textBook chapters on the topic "Real property fund"
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"Unlisted Real Estate Funds." In Global Property Investment, 293–318. Oxford, UK: Wiley-Blackwell, 2011. http://dx.doi.org/10.1002/9781444347289.ch11.
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Adkison, Danny M., and Lisa McNair Palmer. "Social Security." In The Oklahoma State Constitution, 333–36. Oxford University Press, 2020. http://dx.doi.org/10.1093/oso/9780197514818.003.0033.
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This chapter highlights Article XXV of the Oklahoma constitution, which concerns Social Security. Section 1 provides for a separate state program to help the needy and also provides for cooperation with federal programs to provide such aid. It was adopted in 1936 and amended in 1941 for the purpose of permitting full participation in the federal program. The state may not spend ad valorem taxes, which are taxes imposed upon the value of real or personal property, to fund the programs contemplated by this section. Section 2 through Section 4 of this article are repealed. Meanwhile, Section 5 is merely a housekeeping provision to ensure that the timing of passage of the sections in this article did not interfere with the validity of the sections.
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"Financial Systems, Flow of Funds to Property and Innovations." In Real Estate Finance in the New Economy, 63–84. Chichester, UK: John Wiley & Sons, 2014. http://dx.doi.org/10.1002/9781118836651.ch3.
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Hearne, Rory. "The new waves of financialisation: vultures and REITs." In Housing Shock, 131–46. Policy Press, 2020. http://dx.doi.org/10.1332/policypress/9781447353898.003.0007.
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This chapter describes and details the wave of global real estate and vulture investment in distressed assets and loans, as the second wave of financialisation of residential property (housing), following the first wave of financial market and equity involvement in mortgage lending and securitisation from the late 1990s to 2008. It then defines and details a third wave of financialisation is evident in the post-2010 period as global institutional investors have increasingly invested in the private rental ‘build-to-rent’ sector. This third wave is a further development in the restructuring of the finance–real estate relationship through the increased role of large-scale corporate finance and global private equity funds (pension funds, hedge funds, wealth funds, shell funds, private equity) in the provision of rental residential property. It shows how housing and land is providing another important vehicle for investing the global ‘wall of money’ searching for higher returns in a context of reduced profitability and rising risk in the wider ‘real’ economy. It details how the Irish state’s strategy to overcome the global property and financial crash of 2008 and achieve the recovery of financial institutions and the wider economy was based on the sale of ‘toxic’ and ‘non-performing’ loans and associated land and property, at a considerable discount, to international ‘vulture funds’ and property investors via the National Asset Management Agency (NAMA) and domestic banks. The strategy was based on a deepening of the financialisation of the Irish housing (and wider property) system.
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Lokanan, Mark, and Gaurav Chopra. "Money Laundering in Real Estate (RE)." In Money Laundering and Terrorism Financing in Global Financial Systems, 53–90. IGI Global, 2021. http://dx.doi.org/10.4018/978-1-7998-8758-4.ch003.
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Money laundering is a defiance of law and order within the real estate (RE) sector in Canada. Laundering of illicit funds impacts the stability, reliability, and integrity of the government, financial institutions, and the economic sectors. Due to its mysterious nature, there are more unknowns about the quantum of snow washing in the property market or its effects on price inflation. Using data from the Cullen Commission about money laundering in Canada, this chapter is an effort to examine the nuances that law enforcement encounters while investigating illegal investment operations. This chapter illuminates a broad range of problems around the investigations of unlawful investments and recommends pragmatic solutions to the illicit flow of money in RE sector of Canada.
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Figueroa, Maria. "Building a Green New York." In Unions and the City. Cornell University Press, 2017. http://dx.doi.org/10.7591/cornell/9781501706547.003.0006.
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This chapter discusses two energy retrofit initiatives: the city- and real estate-led PlaNYC policy for retrofitting Manhattan's commercial office space, and the Laborers (LIUNA)-sponsored Green Jobs/Green New York weatherization initiative covering residential property in the city and the state. In the highly competitive and mostly nonunion residential property sector, a familiar tension between affordability for working-class consumers and union concerns with labor standards emerged as the federal stimulus funds used to finance retrofitting work were scaled back. Despite the enormous potential of a green jobs strategy to address employment disparities, revive neighborhoods without gentrification, and launch economic recovery while mitigating ecological damage, labor's vision of a sustainable city seemingly cannot prevail when it confronts the entrenched power of real estate and finance in the global city.
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Hearne, Rory. "Inequality and financialisation." In Housing Shock, 147–66. Policy Press, 2020. http://dx.doi.org/10.1332/policypress/9781447353898.003.0008.
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This chapter details the dramatic increase in investor flows into real estate in Ireland and how global investors view the ‘build-to-rent’ sector as a key area for investment. It shows that the non-household sector significantly increased its role in buying residential property in Ireland from 2013 onwards. It sets out how global equity, institutional investors and real estate funds are moving into student accommodation making it less affordable. It looks at how new planning laws promote micro-apartments and how such build-to-rent co-living spaces fail to provide an acceptable living environment. It explores the downsides of global investment and hyperfinancialisation and is adding significantly to demand, thus inflating property prices and rents and how corporate landlords are becoming a real force and have the power to set new (higher) market rents in certain areas embedding a embeds a permanent unaffordability into the housing market. It shows how Ireland is facilitating the global financialisation of housing through its tax and regulatory regime for REITs, global real estate investors and vultures which is of international significance as it is both facilitates, and increases the profitability in, equity investment in residential property.It finishes by detailing the new forms of inequality resulting from financialisation of housing - the winners and losers in the Irish housing system.
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Gillies, Alexandra. "“An Octopus That Reaches around the Globe”." In Crude Intentions, 139–75. Oxford University Press, 2020. http://dx.doi.org/10.1093/oso/9780190940706.003.0005.
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Corruption is an international undertaking. A global cast of enablers, including oil-rich players from Abu Dhabi and Saudi Arabia, Caribbean letterbox companies, banks in Switzerland and Singapore, American real estate agents, and the giant investment bank Goldman Sachs, helped an ambitious young Malaysian businessman capture and spend over $4 billion in just a few years. Most oil boom corruption cases followed roughly the same playbook: spirit away illicit funds via offshore shell companies and bank accounts and then sink them into foreign property, businesses, luxury goods, and public relations campaigns. Through these channels, corrupt money and its destabilizing influence spread around the world.
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Pylypenko, Yaroslav, and Dmytro Nelipa. "THE DIRECTIONS FOR STRENGTHENING THE FINANCIAL AUTONOMY OF LOCAL SELF-GOVERNMENT BODIES IN UKRAINE UNDER DECENTRALIZATION." In Priority areas for development of scientific research: domestic and foreign experience. Publishing House “Baltija Publishing”, 2021. http://dx.doi.org/10.30525/978-9934-26-049-0-2.
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The purpose of the article is to analyze the impact of decentralization on the local financial system of Ukraine and developing the recommendations for strengthening the financial autonomy of local self-government bodies. By writing the article, the following basic methods of research were used: the methods of abstraction, generalization, induction, deduction, synthesis were applied in the study of the role and place of local budget in the financial system of the state, as well as the system method. The object of research is theoretical and practical aspects of decentralization in the framework of the transformational change of the system of local self-government in Ukraine. Practical implications. The article examines the impact of administrative and financial decentralization processes on the local financial system of Ukraine. It defines the main transformational changes in the local financial system because of the implementation of the restructuring measures. It identifies the risks that affect the financial autonomy of local self-government bodies, and, in particular, the formation of local budget revenues under decentralization: formation of local budget revenues from personal income tax; reduction of income of certain territorial communities as a result of cancellation of the gasoline excise duty income to local budgets; insignificant or missing tax revenues from public utilities; imperfect mechanism for administration of real estate tax and land fees. There are the measures suggested to minimize these risks. In particular, it is necessary to: change the procedure for personal income tax charge (at the place of residence of the natural person); to enhance the control over the effective use of funds by the public utilities; to take stock of all real estate property as well as to make changes to the process of immovable property tax administration other than land tax, in particular, in the taxable base (establishment of the taxable base in terms of market or estimated value of real estate property). Conclusions. Institutional restructuring of the national system of local taxes and fees under decentralization should be considered in the context of building the model of local taxation, in terms of which the powers of local self-government bodies will include the right to introduce a list of local taxes and fees, and tax rates in accordance with the limits established by the law.
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Das, Ramesh Chandra, and Soumyananda Dinda. "Causality between Credit Deposit Ratio and Credit Share in Major Indian States during 1972 -2008." In Global Strategies in Banking and Finance, 121–34. IGI Global, 2014. http://dx.doi.org/10.4018/978-1-4666-4635-3.ch008.
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The Indian economy has undergone different structural shifting in its history of development since 1947. One major break was the liberalization of the economy in the period 1991-92 and the reforms in the banking and financial sectors deserved a special attention in the study. The banking sector reform was done under the intention to make more investible banking funds for real investment to raise credit-deposit ratio along with proper allocation of banking funds to all the states so that share of credit of each state is balanced. Literature shows the falling tendency of credit-deposit ratio in the immediate decade after the reform and the rising tendency of divergence in credit possession among the states. At the same time, the states lacking in credit-deposit ratio are either with higher, lower, or moderate shares of credits. This study, hence, tried to examine the direction of causalities between credit-deposit ratio and credit share for the major 16 states of India. Using the time series econometrics technique, this study found 4 states where the causality works for the entire period and less than half of the state where causality works in either pre-reform or post-reform periods.
Conference papers on the topic "Real property fund"
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Newell, Graeme, and Tiffany Hutcheson. "Decision-making in property Investment by Property Fund Managers." In 25th Annual European Real Estate Society Conference. European Real Estate Society, 2018. http://dx.doi.org/10.15396/eres2018_295.
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Gupta, Ashish. "The significance of property fund management in India." In 25th Annual European Real Estate Society Conference. European Real Estate Society, 2016. http://dx.doi.org/10.15396/eres2016_17.
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"Timing and selection by UK property funds." In European Real Estate: An Agenda for Research: ERES Conference 1993. ERES, 1993. http://dx.doi.org/10.15396/eres1993_110.
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"Performance Drivers of German Institutional Property Funds." In 20th Annual European Real Estate Society Conference: ERES Conference 2013. ÖKK-Editions, Vienna, 2013. http://dx.doi.org/10.15396/eres2013_221.
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"Risk Decomposition of UK Unlisted Property Funds." In 18th Annual European Real Estate Society Conference: ERES Conference 2011. ERES, 2011. http://dx.doi.org/10.15396/eres2011_258.
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"The Role of Property in Ethical Managed Funds." In 9th European Real Estate Society Conference: ERES Conference 2002. ERES, 2002. http://dx.doi.org/10.15396/eres2002_117.
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"UNLISTED PROPERTY FUNDS: SUPPLYING CAPITAL TO DEVELOPING MARKETS?" In 15th Annual European Real Estate Society Conference: ERES Conference 2008. ERES, 2008. http://dx.doi.org/10.15396/eres2008_106.
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Wolski, Rafal, and Magdalena Zaleczna. "Polish real property funds’ investment results – an attempt of evaluation." In 25th Annual European Real Estate Society Conference. European Real Estate Society, 2016. http://dx.doi.org/10.15396/eres2016_253.
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"Marketing strategies for open-ended property funds in Germany." In 11th European Real Estate Society Conference: ERES Conference 2004. ERES, 2004. http://dx.doi.org/10.15396/eres2004_543.
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"Why do property values melt when funds go into liquidation." In 18th Annual European Real Estate Society Conference: ERES Conference 2011. ERES, 2011. http://dx.doi.org/10.15396/eres2011_269.
Full textReports on the topic "Real property fund"
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Chandra, Shailesh, Mehran Rahmani, Timothy Thai, Vivek Mishra, and Jacqueline Camacho. Evaluating Financing Mechanisms and Economic Benefits to Fund Grade Separation Projects. Mineta Transportation Institute, January 2021. http://dx.doi.org/10.31979/mti.2020.1926.
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Investment in transportation infrastructure projects generates benefits, both direct and indirect. While emissions reductions, crash reductions, and travel time savings are prominent direct benefits, there are indirect benefits in the form of real estate enhancements that could pay off debt or loan incurred in the improvement of the infrastructure itself. Studies have shown that improvements associated with rail transportation (such as station upgrades) trigger an increase in the surrounding real estate values, increasing both the opportunity for monetary gains and, ultimately, property tax collections. There is plenty of available guidance that provides blueprints for benefits calculations for operational improvements in rail transportation. However, resources are quite limited in the analysis of benefits that accrue from the separation of railroad at-grade crossings. Understanding the impact of separation in a neighborhood with high employment or population could generate revenues through increased tax collections. In California, the research need is further amplified by a lack of guidance from the California Public Utilities Commission (CPUC) on at-grade crossing for separation based on revenue generated. There is a critical need to understand whether grade separation projects could impact neighboring real estate values that could potentially be used to fund such separations. With COVID-19, as current infrastructure spending in California is experiencing a reboot, an approach more oriented to benefits and costs for railroad at-grade separation should be explored. Thus, this research uses a robust benefits-to-cost analysis (BCA) to probe the economic impacts of railroad at-grade separation projects. The investigation is carried out across twelve railroad-highway at-grade crossings in California. These crossings are located at Francisquito Ave., Willowbrook/Rosa Parks Station, Sassafras St., Palm St., Civic Center Dr., L St., Spring St. (North), J St., E St., H St., Parkmoor West, and Nursery Ave. The authors found that a majority of the selected at-grade crossings analyzed accrue high benefits-to-cost (BC) ratios from travel time savings, safety improvements, emissions reductions, and potential revenue generated if property taxes are collected and used to fund such separation projects. The analysis shows that with the estimated BC ratios, the railroad crossing at Nursery Ave. in Fremont, Palm St. in San Diego, and H St. in Chula Vista could be ideal candidates for separation. The methodology presented in this research could serve as a handy reference for decision-makers selecting one or more at-grade crossings for the separation considering economic outputs and costs.
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Financial Stability Report - Second Semester of 2020. Banco de la República de Colombia, March 2021. http://dx.doi.org/10.32468/rept-estab-fin.sem2.eng-2020.
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The Colombian financial system has not suffered major structural disruptions during these months of deep economic contraction and has continued to carry out its basic functions as usual, thus facilitating the economy's response to extreme conditions. This is the result of the soundness of financial institutions at the beginning of the crisis, which was reflected in high liquidity and capital adequacy indicators as well as in the timely response of various authorities. Banco de la República lowered its policy interest rates 250 points to 1.75%, the lowest level since the creation of the new independent bank in 1991, and provided ample temporary and permanent liquidity in both pesos and foreign currency. The Office of the Financial Superintendent of Colombia, in turn, adopted prudential measures to facilitate changes in the conditions for loans in effect and temporary rules for rating and loan-loss provisions. Finally, the national government expanded the transfers as well as the guaranteed credit programs for the economy. The supply of real credit (i.e. discounting inflation) in the economy is 4% higher today than it was 12 months ago with especially marked growth in the housing (5.6%) and commercial (4.7%) loan portfolios (2.3% in consumer and -0.1% in microloans), but there have been significant changes over time. During the first few months of the quarantine, firms increased their demands for liquidity sharply while consumers reduced theirs. Since then, the growth of credit to firms has tended to slow down, while consumer and housing credit has grown. The financial system has responded satisfactorily to the changes in the respective demands of each group or sector and loans may grow at high rates in 2021 if GDP grows at rates close to 4.6% as the technical staff at the Bank expects; but the forecasts are highly uncertain. After the strict quarantine implemented by authorities in Colombia, the turmoil seen in March and early April, which was evident in the sudden reddening of macroeconomic variables on the risk heatmap in Graph A,[1] and the drop in crude oil and coal prices (note the high volatility registered in market risk for the region on Graph A) the local financial markets stabilized relatively quickly. Banco de la República’s credible and sustained policy response played a decisive role in this stabilization in terms of liquidity provision through a sharp expansion of repo operations (and changes in amounts, terms, counterparties, and eligible instruments), the purchases of public and private debt, and the reduction in bank reserve requirements. In this respect, there is now abundant aggregate liquidity and significant improvements in the liquidity position of investment funds. In this context, the main vulnerability factor for financial stability in the short term is still the high degree of uncertainty surrounding loan quality. First, the future trajectory of the number of people infected and deceased by the virus and the possible need for additional health measures is uncertain. For that reason, there is also uncertainty about the path for economic recovery in the short and medium term. Second, the degree to which the current shock will be reflected in loan quality once the risk materializes in banks’ financial statements is uncertain. For the time being, the credit risk heatmap (Graph B) indicates that non-performing and risky loans have not shown major deterioration, but past experience indicates that periods of sharp economic slowdown eventually tend to coincide with rises in non-performing loans: the calculations included in this report suggest that the impact of the recession on credit quality could be significant in the short term. This is particularly worrying since the profitability of credit establishments has been declining in recent months, and this could affect their ability to provide credit to the real sector of the economy. In order to adopt a forward-looking approach to this vulnerability, this Report presents several stress tests that evaluate the resilience of the liquidity and capital adequacy of credit institutions and investment funds in the event of a hypothetical scenario that seeks to simulate an extreme version of current macroeconomic conditions. The results suggest that even though there could be strong impacts on the credit institutions’ volume of credit and profitability under such scenarios, aggregate indicators of total and core capital adequacy will probably remain at levels that are above the regulatory limits over the horizon of a year. At the same time, the exercises highlight the high capacity of the system's liquidity to face adverse scenarios. In compliance with its constitutional objectives and in coordination with the financial system's security network, Banco de la República will continue to closely monitor the outlook for financial stability at this juncture and will make the decisions that are necessary to ensure the proper functioning of the economy, facilitate the flow of sufficient credit and liquidity resources, and further the smooth operation of the payment systems. Juan José Echavarría Governor