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Brazilian REITs Performance

Brazilian REITs Performance
Author: Bruno Milani
Publisher:
Total Pages: 14
Release: 2016
Genre:
ISBN:

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Real Estate investments have been used to provide diversification without increasing portfolio risk, although direct real estate investment has several disadvantages, such as low liquidity and high transaction costs, and Real Estate Investment Trusts (REITs) are an alternative investment aim to overcome these difficulties. This paper analyzes the REITs performance, comparing it to Ibovespa (proxy of market) and Ifix (Brazilian REITs proxy). For a better analysis we used the wavelet method, that allows to compare the results of different scales of time. Analyzing the wavelet transform, the REITs have significant coefficients when compared to the market, index Ibovespa, but considering the relationship between the REITs and the real estate funds, Ifix, influence happens in the long run. Market volatility has a negative effect in REITs returns in the long run, probably because a REITs investor tries to avoid risk. That's because maybe in the long run, REITs investors can change their investments to direct Real Estate if those are presenting better returns, what would reduce REITs demand and consequently, their price. It was noted that REITs returns are influenced by Real Estate companies returns in different scales, indicating that Brazilian REITs returns depend on market volatility. In a general way, this study showed that the relationships between REITs returns, Real Estate Companies returns and Market returns depend on the time scale analyzed, but they tend to be stronger at large scales. Differently of what was found by Milani and Ceretta (2014), Brazilian REITs returns can be better explained by Real Estate Sector Companies returns than by market returns, in the long run. Also, higher moments influence their returns and should be part of a model that tries to explain REITs returns.


Do Brazilian REITs Depend on Real Estate Sector Companies Or Overall Market?

Do Brazilian REITs Depend on Real Estate Sector Companies Or Overall Market?
Author: Bruno Milani
Publisher:
Total Pages: 9
Release: 2015
Genre:
ISBN:

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Real Estate investments have been considered a good tool to provide diversification without increasing risk in a portfolio. Real Estate Investment Trusts (REITs) are a well-known investment alternative to many investors who want to invest in real estate minimizing the liquidity problem, since they have traded shares. However, the fact that REITs have traded shares brings the following question: are these shares driven by a “real estate factor” or they simply follow the overall market variation? This paper aims to discover whether Brazilian REITs return depend on the real estate companies return, on if they follow the overall market, or even any of the alternatives. The correlation between Ifix (Brazilian REITs proxy) and Imob (a Brazilian real estate sector index), as well as the correlation between Ifix and Ibovespa index, which represents the overall Brazilian market, were estimated by the Dynamic Conditional Correlation (DCC) model of Engle (2002).Our results show that both correlations were not significant, although the correlation between REITs and Ibovespa appear to be slightly higher than the one between REITs and Imob. These results, combined with the fact that Ifix index presents higher average return and smaller standard deviation, indicate that it may be interesting for the investor to include a Brazilian REIT share in his portfolio, since it would contribute to increase portfolio return without assuming more risk.


Brazilian Market Portfolio

Brazilian Market Portfolio
Author: Cristina Tessari
Publisher: International Monetary Fund
Total Pages: 38
Release: 2017-03-13
Genre: Business & Economics
ISBN: 1475586744

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In recent years, Brazil has achieved substantial progress in capital market development by building a diversified investor base and expanding the menu of available financial instruments. In this context, we evaluated the invested Brazilian market portfolio for a period spanning 2005–15. This is a portfolio of all assets proportionally weighted by their market capitalization, and it is divided in eight broad categories: government bonds, equities, bank funding bonds, corporate bonds, real-estate, agribusiness, private-equity, and credit bonds. While the paper focuses on stylized facts related to market size, composition weighting and changes over time, the estimated market portfolio contains important information for policy makers and market participants alike.


The Bovespa Index

The Bovespa Index
Author: Helio de Paula Leite
Publisher:
Total Pages: 144
Release: 1994
Genre: Investments
ISBN:

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Predictive Power of Brazilian Equity Fund Performance Using R2 as a Measure of Selectivity

Predictive Power of Brazilian Equity Fund Performance Using R2 as a Measure of Selectivity
Author: Marcelo Guzella
Publisher:
Total Pages:
Release: 2017
Genre:
ISBN:

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This paper aimed to investigate the impact of levels of selectivity on the performance of equity funds using a methodology applied for the first time ever in the Brazilian market. As an indicator of the activity level of a fund, we proposed the coefficient of determination (R2) of the regression of its returns over market returns. In total, 867 funds were analyzed in the period between November 2004 and October 2014. The hypothesis tested is that more selective funds perform better to compensate for their higher operating costs. This hypothesis was confirmed in the Brazilian market. Dynamic equally-weighted portfolios of funds were simulated, according to their past R2 and alphas, with monthly rebalancing and 12-month moving windows. The portfolio of the most selective funds had a Sharpe ratio of 0.0494, on a monthly basis, while the portfolio of the least selective funds had a Sharpe ratio of -0.0314. Performance was also higher in evaluations involving excess returns, Jensen's alpha, and accumulated returns, as well as when compared to randomly selected portfolios. Moreover, past performance (as measured by Jensen's alpha) was also a predictor of future performance.


The Routledge REITs Research Handbook

The Routledge REITs Research Handbook
Author: David Parker
Publisher: Routledge
Total Pages: 306
Release: 2018-10-10
Genre: Technology & Engineering
ISBN: 1351664832

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The Routledge REITs Research Handbook presents a cutting-edge examination of the research into this key global investment vehicle. Edited by internationally respected academic and REIT expert Professor David Parker, the book will set the research agenda for years to come. The handbook is divided into two parts, the first of which provides the global context and a thematic review covering: asset allocation, performance, trading, sustainability, Islamic REITs, emerging sectors and behavioural finance. Part II presents a regional review of the issues with high level case studies from a diverse range of countries including the US, UK, Brazil, India, Australia, China, Singapore, Israel and Russia, to name just a few. This handbook redefines existing areas within the context of international REITs research, highlights emerging areas and future trends and provides postgraduates, professionals and researchers with ideas and encouragement for future research. It is essential reading for all those interested in real estate, international investment, global finance and asset management.


Easy Guide to Operate in the Brazilian Real Estate Market

Easy Guide to Operate in the Brazilian Real Estate Market
Author: Flavio RISSATO
Publisher: Independently Published
Total Pages: 101
Release: 2021-04-29
Genre:
ISBN:

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In this guide, the content introduced will be about buying & selling, renting, financing, auction and consortium of real estate in Brazil, comparisons of historical returns (in real estate, Selic, IPCA, dollar and variable income), real estate funds, seasonal rental by Airbnb and Booking, analysis of optimal asset portfolios (containing properties), financial analysis of the payment of a housing installment with the rent received for making the property available for rent and a reflection with the options to buy a property in cash or finance it. The importance of keeping this guide is in the fact that it helps the reader in quick consultations on matters related to the operations of the real estate market, given that the content was optimally distributed throughout the volume. The printed Portuguese version of this guide can be purchased through the following link (a versão impressa em português deste guia pode ser adquirida por meio do link a seguir): https: //www.amazon.com/dp/B0915JT568


Brazilian Private Equity and Venture Capital Funds Performance from 1990 Until 2013

Brazilian Private Equity and Venture Capital Funds Performance from 1990 Until 2013
Author: Andrea Maria Accioly Fonseca Minardi
Publisher:
Total Pages:
Release: 2014
Genre:
ISBN:

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This paper investigates the performance of Brazilian PE and VC funds between 1990 and 2013. We use Spectra-Insper database, with information about gross returns and multiple of money that General Partners report in Private Placement Memorandum or that are hand collected in CVM (Brazilian Security Exchange Comission) and commercial sources. We analyze performance of 47 funds. The average IRR of Brazilian funds is higher than the average of US funds in the period. We observe that Brazilian funds with vintage year between 1990 and 1997 on average underperform US PE funds, and with vintage between 1998 and 2008 outperform US PE funds. This pattern may reflect a learning curve in Brazilian PE industry. We find evidence that performance in Brazil has a higher cyclicality than in the US, but this may be due to the small sample size rather than the emerging market effect.


Brazil Watch

Brazil Watch
Author:
Publisher:
Total Pages: 272
Release: 2007
Genre: Brazil
ISBN:

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The Intelligent REIT Investor

The Intelligent REIT Investor
Author: Stephanie Krewson-Kelly
Publisher: John Wiley & Sons
Total Pages: 216
Release: 2016-08-16
Genre: Business & Economics
ISBN: 1119252768

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The go-to guide for smart REIT investing The Intelligent REIT Investor is the definitive guide to real estate investment trusts, providing a clear, concise resource for individual investors, financial planners, and analysts—anyone who prioritizes dividend income and risk management as major components to wealth-building. The REIT industry experienced a watershed event when Standard & Poors created a new Global Industry Classification Standard (GICS) sector called Real Estate. Publicly traded equity REITs have been removed from Financials, where they have been classified since their creation in 1960, and have begun trading as their own S&P Sector. This separation from banks and financial institutions has attracted new investors, but REITs require an industry-specific knowledge that is neither intuitive nor readily accessible to newcomers—until now. Using straightforward language and simple example to illustrate important concepts, this book will enable any reader to quickly learn and understand the lexicon and valuation techniques used in REIT investing, providing a wealth of practical resources that streamline the learning process. The discussion explains terminology, metrics, and other key points, while examples illustrate the calculations used to evaluate opportunities. A comprehensive list of publicly-traded REITs provides key reference, giving you access to an important resource most investors and stockbrokers lack. REITs are companies that own or finance commercial rental properties, such as malls and apartment buildings. Despite historically high total returns relative to other investments, such as the Nasdaq or S&P 500 index, most investors are unfamiliar with the REIT industry, and wary of investing without adequate background. This book gets you up to speed on the essentials of REIT investing so you can make more informed—and profitable—decisions. Understand REITs processes, mechanisms, and industry Calculate key metrics to identify suitable companies Access historical performance tables and industry-specific terminology Identify publicly-traded REITs quickly and easily REITs have consistently outperformed many more widely known investments. Over the past 15-year period, for example, REITs returned an average of 11% per year, better than all other asset classes. Since 2009, REITs have enjoyed positive returns; large cap stocks and cash are the only other classes that paralleled that record. Even in 2015, a 'year of fear' related to rising rates, REITs returned 2.4%, beating most all other asset classes. REITs have a long history (over fifty years) of performance, and have entered the big leagues. If you feel like you've been missing out, don't keep missing out. Prepare yourself, and your portfolio, to benefit from the demand for REITs that have followed the creation of a Real Estate GICS sector. The Intelligent REIT Investor gives you the information you need to invest wisely and manage your real estate risk effectively. By maintaining a tactical exposure in the brick and mortar asset class, investors should benefit from the information contained in The Intelligent REIT Investor. Join the REIT world and look forward to owning stocks that will help you to sleep well at night.