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1 – 10 of 404Joseph Falzon and Elaine Bonnici
This paper empirically investigates the performance of Islamic funds, which have been praised for weathering the 2008 financial storm relatively well and compares it to a European…
Abstract
Purpose
This paper empirically investigates the performance of Islamic funds, which have been praised for weathering the 2008 financial storm relatively well and compares it to a European product designed to protect the most vulnerable of investors, UCITS funds.
Design/methodology/approach
This paper builds on 128 time-series regressions using various factor models to analyse the risk-return relationship of 242 Islamic and UCITS funds relative to a market benchmark, over a 10-year period starting January 2006, to capture severe bear and bull market conditions.
Findings
Islamic funds do not face a competitive disadvantage arising from their strict compliance with Sharīʿah principles, and their performance and investment style is relatively similar to UCITS schemes.
Practical implications
Islamic funds represent a low risk investment due to their very mild betas. Therefore, when forming part of a diversified portfolio, they can act as a hedging tool against adverse market movements.
Social implications
Muslim investors are not punished relative to conventional retail investors when following their own beliefs. Other investors can consider Islamic funds in their portfolio allocation, especially those who seek socially and ethically responsible investments.
Originality/value
This paper fills a lacuna in the existing literature, because the sample is made up of Islamic funds established worldwide and includes not only equity, but also fixed income and mixed allocation funds.
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Chinmoy Ghosh, Paul Gilson and Michel Rakotomavo
The purpose of this paper is to present a review of the student managed investment fund at the School of Business, University of Connecticut.
Abstract
Purpose
The purpose of this paper is to present a review of the student managed investment fund at the School of Business, University of Connecticut.
Design/methodology/approach
The authors trace the history and growth of the fund and identify the special features and dimensions that have contributed to its success.
Findings
The operation of the fund is a constantly evolving program and the authors discuss the important changes and improvements made in the program since its inception in the early 2000s in response to growth in the number of finance majors, new career opportunities in the field of investments and most importantly, the strength of capital markets and the development of new instruments in the capital markets. The authors also discuss the common features of over 300 student funds in the USA. The authors close with a discussion of the limitations and constraints the fund advisors at, and possibly, at other schools, face in the management and administration of the fund, and also what developments and adjustments the authors expect to see in these funds in the future.
Originality/value
The authors combine extensive analyses of fund history and performance. The authors also provide some suggestions for the future direction and priorities for student funds.
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Md. Bokhtiar Hasan, Md Mamunur Rashid, Md. Naiem Hossain, Mir Mahmudur Rahman and Md. Ruhul Amin
This research explores the spillovers and portfolio implications for green bonds and environmental, social and governance (ESG) assets in the context of the rapidly expanding…
Abstract
Purpose
This research explores the spillovers and portfolio implications for green bonds and environmental, social and governance (ESG) assets in the context of the rapidly expanding trend in green finance investments and the need for a green recovery in the post-COVID-19 era.
Design/methodology/approach
This study utilizes Diebold and Yilmaz’s (2014) spillover method and portfolio strategies (hedge ratio, optimal weights and hedging effectiveness) for the data starting from February 29, 2012, to March 14, 2022.
Findings
The study’s findings reveal that the lower volatility spillover is evidenced between the green bonds and ESG stocks during tranquil and turbulent periods (e.g. COVID-19 and Russia-Ukraine War). Furthermore, hedging costs are lower both in normal times and during economic slumps. Investing the bulk of the funds in green bonds makes it possible to achieve maximum hedging effectiveness between the S&P green bond (GB) and the S&P 500 ESG.
Practical implications
Both investors and policymakers may use these findings to make wise investment and policy choices to achieve post-COVID environmental sustainability.
Originality/value
Unlike previous research, this is the first to explore the interconnectedness among the major global and country-specific green bonds and ESG assets. The major findings of this study about the lower volatility spillovers and hedging costs between green bonds and ESG assets during the tranquil and turbulent periods may contribute to the post-COVID investment portfolio for environmental sustainability.
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Ayman El-Dessouki and Ola Rafik Mansour
The purpose of this paper is to unveil the main changes in the UAE’s policy towards Iran since its foundation in 1971. The UAE favored strategic hedging, extending its commercial…
Abstract
Purpose
The purpose of this paper is to unveil the main changes in the UAE’s policy towards Iran since its foundation in 1971. The UAE favored strategic hedging, extending its commercial and diplomatic relations with Iran, in addition to developing its military capabilities and maintaining military/security alliances with Saudi Arabia and the USA. However, the UAE started to reorient its policy towards Iran by adopting some sort of balancing strategy in the aftermath of the Arab Spring of 2011. This paper examines how and why the UAE had to change course and explores whether it would revert back to strategic hedging with Iran.
Design/methodology/approach
The study will be carried out based on a theoretical framework drawn from strategic hedging theory, a new structural theory in international relations, to examine the shifts in UAE policy towards Iran. Previous literature suggests that small states prefer hedging over balancing or bandwagoning. The authors also undertake a descriptive analysis and deploy a longitudinal within-case method to investigate changes in UAE policy towards Iran and identify the causal mechanisms behind these changes. That method allows investigating the impact of a particular event on a case by comparing the same case before and after that event occurred.
Findings
The main finding of this study is that the UAE hedging strategy towards Iran allowed maximizing the political and economic returns from the cooperation with Iran and mitigating the long-range national security risks without breaking up the consistent and beneficial ties with other regional and global powers. Hedging achieved the desired outcome, which is preventing direct military confrontation with Iran. Hard balancing, adopted by Abu Dhabi after the 2011 Arab Spring, has proved to have some negative effects, most importantly provoking Tehran. Some recent indicators suggest, though that the UAE may revert back to its long-established hedging policy towards Iran.
Originality/value
Strategic hedging is a new structural theory in international relation, although hedging behavior in states’ foreign policies is far from new. It is new enough, thus, not have been researched sufficiently, strategic hedging still needs theorizing and comparison. This paper highlights the importance of strategic hedging as the most appropriate strategy for small states. It provides an important contribution to the application of the theory to the case of UAE policy towards Iran. The paper also assesses the conventional wisdom that small states prefer hedging over balancing in the light of the changes in the UAE foreign policy since 2011.
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Megan E. Tresise, Mark S. Reed and Pippa J. Chapman
In order to mitigate the effects of climate change, the UK government has set a target of achieving net zero greenhouse gas (GHG) emissions by 2050. Agricultural GHG emissions in…
Abstract
In order to mitigate the effects of climate change, the UK government has set a target of achieving net zero greenhouse gas (GHG) emissions by 2050. Agricultural GHG emissions in 2017 were 45.6 million tonnes of carbon dioxide equivalent (CO2e; 10% of UK total GHG emissions). Farmland hedgerows are a carbon sink, storing carbon in the vegetation and soils beneath them, and thus increasing hedgerow length by 40% has been proposed in the UK to help meet net zero targets. However, the full impact of this expansion on farm biodiversity is yet to be evaluated in a net zero context. This paper critically synthesises the literature on the biodiversity implications of hedgerow planting and management on arable farms in the UK as a rapid review with policy recommendations. Eight peer-reviewed articles were reviewed, with the overall scientific evidence suggesting a positive influence of hedgerow management on farmland biodiversity, particularly coppicing and hedgelaying, although other boundary features, e.g. field margins and green lanes, may be additive to net zero hedgerow policy as they often supported higher abundances and richness of species. Only one paper found hedgerow age effects on biodiversity, with no significant effects found. Key policy implications are that further research is required, particularly on the effect of hedgerow age on biodiversity, as well as mammalian and avian responses to hedgerow planting and management, in order to fully evaluate hedgerow expansion impacts on biodiversity.
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