Search results for: Voltage Collapse.
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 1033

Search results for: Voltage Collapse.

433 Application of Western and Islamic Philosophy to Business Ethics

Authors: Elmamy Ahmedsalem

Abstract:

The world has witnessed the collapse of many corporate giants as a result of unethical behavior in recent decades. This has induced a series of questions by the global community on why such occurrences could happen, even with corporate governance in place. This paper attempts to propose a philosophical approach from an Islamic perspective to be consolidated with current corporate governance in order to confront contemporary dilemmas. In this paper, ethical theories are presented as a discussion followed by their applications to modern cases of financial collapses. Virtue ethics by Aristotle, justice and fairness by John Rawls, deontology by Immanuel Kant, and utilitarianism by John Stuart Mill, are the four theories which can then be contrasted with the paradigm of Muslim scholars. Despite the differences between the fundamental principles of Islamic and Western worldviews, their ethical theories are aimed at making right decisions and solving ethical dilemmas based on what is good for society. Therefore, Islamic principles should be synthesized with Western philosophy to form a more coherent framework. The integration of Islamic and western ethical theories into business is important for sound corporate governance.

Keywords: Business ethics, Islamic philosophy, western philosophy, Western and Islamic Worldview of Ethics.

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432 Modeling, Analysis and Simulation of 4-Phase Boost Converter

Authors: Nagulapati Kiran, V. Rangavalli, B. Vanajakshi

Abstract:

This paper designs the four-phase Boost Converter which overcomes the problem of high input ripple current and output ripple voltage. Digital control is more convenient for such a topology on basis of synchronization, phase shift operation, etc. Simulation results are presented for open-loop and closed-loop for four phase boost converter. This control scheme is applicable for PFC rectifiers as well. Thus a comparative analysis based on the obtained results is performed.

Keywords: Boost Converter, Bode plot, PI Controller, Four phase.

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431 Seismic Vulnerability Mitigation of Non-Engineered Buildings

Authors: Muhammad Tariq A. Chaudhary

Abstract:

The tremendous loss of life that resulted in the aftermath of recent earthquakes in developing countries is mostly due to the collapse of non-engineered and semi-engineered building structures. Such structures are used as houses, schools, primary healthcare centers and government offices. These building are classified structurally into two categories viz. non-engineered and semi-engineered. Non-engineered structures include: adobe, unreinforced masonry (URM) and wood buildings. Semi-engineered buildings are mostly low-rise (up to 3 story) light concrete frame structures or masonry bearing walls with reinforced concrete slab. This paper presents an overview of the typical damage observed in non-engineered structures and their most likely causes in the past earthquakes with specific emphasis on the performance of such structures in the 2005 Kashmir earthquake. It is demonstrated that seismic performance of these structures can be improved from life-safety viewpoint by adopting simple low-cost modifications to the existing construction practices. Incorporation of some of these practices in the reconstruction efforts after the 2005 Kashmir earthquake are examined in the last section for mitigating seismic risk hazard.

Keywords: Kashmir earthquake, non-engineered buildings, seismic hazard, structural details, structural strengthening.

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430 Hydrodynamic Force on Acoustically Driven Bubble in Sulfuric Acid

Authors: Zeinab Galavani, Reza Rezaei-Nasirabad, Rasoul Sadighi-Bonabi

Abstract:

Using a force balanced translational-radial dynamics, phase space of the moving single bubble sonoluminescence (m- SBSL) in 85% wt sulfuric acid has been numerically calculated. This phase space is compared with that of single bubble sonoluminescence (SBSL) in pure water which has been calculated by using the mere radial dynamics. It is shown that in 85% wt sulfuric acid, in a general agreement with experiment, the bubble-s positional instability threshold lays under the shape instability threshold. At the onset of spatial instability of moving sonoluminescing (SL) bubble in 85% wt sulfuric acid, temporal effects of the hydrodynamic force on the bubble translational-radial dynamics have been investigated. The appearance of non-zero history force on the moving SL bubble is because of proper condition which was produced by high viscosity of acid. Around the moving bubble collapse due to the rapid contraction of the bubble wall, the inertial based added mass force overcomes the viscous based history force and induces acceleration on the bubble translational motion.

Keywords: Bjerknes force, History force, Reynolds number, Sonoluminescence.

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429 A New True RMS-to-DC Converter in CMOS Technology

Authors: H. Asiaban, E. Farshidi

Abstract:

This paper presents a new true RMS-to-DC converter circuit based on a square-root-domain squarer/divider. The circuit is designed by employing up-down translinear loop and using of MOSFET transistors that operate in strong inversion saturation region. The converter offer advantages of two-quadrant input current, low circuit complexity, low supply voltage (1.2V) and immunity from the body effect. The circuit has been simulated by HSPICE. The simulation results are seen to conform to the theoretical analysis and shows benefits of the proposed circuit.

Keywords: Current-mode, squarer/divider, low-pass filter, converter, translinear loop, RMS-to-DC.

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428 Fuel Cell/DC-DC Convertor Control by Sliding Mode Method

Authors: Farzad Abdous

Abstract:

Fuel cell's system requires regulating circuit for voltage and current in order to control power in case of connecting to other generative devices or load. In this paper Fuel cell system and convertor, which is a multi-variable system, are controlled using sliding mode method. Use of weighting matrix in design procedure made it possible to regulate speed of control. Simulation results show the robustness and accuracy of proposed controller for controlling desired of outputs.

Keywords: DC-DC converter, Fuel cell, PEM, Slides mode control.

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427 Efficient Numerical Model for Studying Bridge Pier Collapse in Floods

Authors: Thanut Kallaka, Ching-Jong Wang

Abstract:

High level and high velocity flood flows are potentially harmful to bridge piers as evidenced in many toppled piers, and among them the single-column piers were considered as the most vulnerable. The flood flow characteristic parameters including drag coefficient, scouring and vortex shedding are built into a pier-flood interaction model to investigate structural safety against flood hazards considering the effects of local scouring, hydrodynamic forces, and vortex induced resonance vibrations. By extracting the pier-flood simulation results embedded in a neural networks code, two cases of pier toppling occurred in typhoon days were reexamined: (1) a bridge overcome by flash flood near a mountain side; (2) a bridge washed off in flood across a wide channel near the estuary. The modeling procedures and simulations are capable of identifying the probable causes for the tumbled bridge piers during heavy floods, which include the excessive pier bending moments and resonance in structural vibrations.

Keywords: Bridge piers, Neural networks, Scour depth, Structural safety, Vortex shedding

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426 Identifications and Monitoring of Power System Dynamics Based on the PMUs and Wavelet Technique

Authors: Samir Avdakovic, Amir Nuhanovic

Abstract:

Low frequency power oscillations may be triggered by many events in the system. Most oscillations are damped by the system, but undamped oscillations can lead to system collapse. Oscillations develop as a result of rotor acceleration/deceleration following a change in active power transfer from a generator. Like the operations limits, the monitoring of power system oscillating modes is a relevant aspect of power system operation and control. Unprevented low-frequency power swings can be cause of cascading outages that can rapidly extend effect on wide region. On this regard, a Wide Area Monitoring, Protection and Control Systems (WAMPCS) help in detecting such phenomena and assess power system dynamics security. The monitoring of power system electromechanical oscillations is very important in the frame of modern power system management and control. In first part, this paper compares the different technique for identification of power system oscillations. Second part analyzes possible identification some power system dynamics behaviors Using Wide Area Monitoring Systems (WAMS) based on Phasor Measurement Units (PMUs) and wavelet technique.

Keywords: Power system oscillations, Modal analysis, Prony, Wavelet, PMU, Wide Area Monitoring System.

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425 A Low Power High Frequency CMOS RF Four Quadrant Analog Mixer

Authors: M. Aleshams, A. Shahsavandi

Abstract:

This paper describes a CMOS four-quadrant multiplier intended for use in the front-end receiver by utilizing the square-law characteristic of the MOS transistor in the saturation region. The circuit is based on 0.35 um CMOS technology simulated using HSPICE software. The mixer has a third-order inter the power consumption is 271uW from a single 1.2V power supply. One of the features of the proposed design is using two MOS transistors limitation to reduce the supply voltage, which leads to reduce the power consumption. This technique provides a GHz bandwidth response and low power consumption.

Keywords: RF-Mixer, Multiplier, cut-off frequency, power consumption

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424 Conceptual Investigation of Short-Columns and Masonary Infill Frames Effect in the Earthquakes

Authors: Ebrahim Khalilzadeh Vahidi, Maryam Mokhtari Malekabadi

Abstract:

This paper highlights the importance of the selection of the building-s wall material,and the shortcomings of the most commonly used framed structures with masonry infills .The objective of this study is investigating the behavior of infill walls as structural components in existing structures.Structural infill walls are very important in structural behavior under earthquake effects. Structural capacity under the effect of earthquake,displacement and relative story displacement are affected by the structural irregularities .The presence of nonstructural masonry infill walls can modify extensively the global seismic behavior of framed buildings .The stability and integrity of reinforced concrete frames are enhanced by masonry infill walls. Masonry infill walls alter displacement and base shear of the frame as well. Short columns have great importance during earthquakes,because their failure may lead to additional structural failures and result in total building collapse. Consequently the effects of short columns are considered in this study.

Keywords: Short columns , Infill masonary wall , Buildings , Earthquake.

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423 Comparison of Fundamental Frequency Model and PWM Based Model of UPFC

Authors: S.A. Al-Qallaf, S.A. Al-Mawsawi, A. Haider

Abstract:

Among all FACTS devices, the unified power flow controller (UPFC) is considered to be the most versatile device. This is due to its capability to control all the transmission system parameters (impedance, voltage magnitude, and phase angle). With the growing interest in UPFC, the attention to develop a mathematical model has increased. Several models were introduced for UPFC in literature for different type of studies in power systems. In this paper a novel comparison study between two dynamic models of UPFC with their proposed control strategies.

Keywords: FACTS, UPFC, Dynamic Modeling, PWM, Fundamental Frequency.

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422 Analysis of the Effect of HV Transmission Lines on the Control Room and its Proposed Shielding

Authors: Diako Azizi, Hosein Heydari, Ahmad Gholami

Abstract:

Today with the rapid growth of telecommunications equipment, electronic and developing more and more networks of power, influence of electromagnetic waves on one another has become hot topic discussions. So in this article, this issue and appropriate mechanisms for EMC operations have been presented. First, impact of high voltage lines on the surrounding environment especially on the control room has been investigated, then to reduce electromagnetic radiation, various methods of shielding are provided and shielding effectiveness of them has been compared. It should be expressed that simulations have been done by the finite element method (FEM).

Keywords: Electrical field, EMC, field distribution, finite element method

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421 Dynamic Instability in High-Rise SMRFs Subjected to Long-Period Ground Motions

Authors: Y. Araki, M. Kim, S. Okayama, K. Ikago, K. Uetani

Abstract:

We study dynamic instability in high-rise steel moment resisting frames (SMRFs) subjected to synthetic long-period ground motions caused by hypothetical huge subduction earthquakes. Since long duration as well as long dominant periods is a characteristic of long-period ground motions, interstory drifts may enter the negative postyield stiffness range many times when high-rise buildings are subjected to long-period ground motions. Through the case studies of 9 high-rise SMRFs designed in accordance with the Japanese design practice in 1980s, we demonstrate that drifting, or accumulation of interstory drifts in one direction, occurs at the lower stories of the SMRFs, if their natural periods are close to the dominant periods of the long-period ground motions. The drifting led to residual interstory drift ratio over 0.01, or to collapse if the design base shear was small.

Keywords: long-period ground motion, P-Delta effect, high-rise steel moment resisting frame (SMRF), subduction earthquake

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420 Design of Walking Beam Pendle Axle Suspension System

Authors: K. Arunachalam, P. Mannar Jawahar

Abstract:

This paper deals with design of walking beam pendel axle suspension system. This axles and suspension systems are mainly required for transportation of heavy duty and Over Dimension Consignment (ODC) cargo, which is exceeding legal limit in terms of length, width and height. Presently, in Indian transportation industry, ODC movement growth rate has increased in transportation of bridge sections (pre-cast beams), transformers, heavy machineries, boilers, gas turbines, windmill blades etc. However, current Indian standard road transport vehicles are facing lot of service and maintenance issues due to non availability of suitable axle and suspension to carry the ODC cargoes. This in turn will lead to increased number of road accidents, bridge collapse and delayed deliveries, which finally result in higher operating cost. Understanding these requirements, this work was carried out. These axles and suspensions are designed for optimum self – weight with maximum payload carrying capacity with better road stability.

Keywords: Heavy duty trailer, Off–highway trucks, Over dimension cargo, Walking beam pendel axle suspension.

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419 Hybrid Neuro Fuzzy Approach for Automatic Generation Control of Two -Area Interconnected Power System

Authors: Gayadhar Panda, Sidhartha Panda, C. Ardil

Abstract:

The main objective of Automatic Generation Control (AGC) is to balance the total system generation against system load losses so that the desired frequency and power interchange with neighboring systems is maintained. Any mismatch between generation and demand causes the system frequency to deviate from its nominal value. Thus high frequency deviation may lead to system collapse. This necessitates a very fast and accurate controller to maintain the nominal system frequency. This paper deals with a novel approach of artificial intelligence (AI) technique called Hybrid Neuro-Fuzzy (HNF) approach for an (AGC). The advantage of this controller is that it can handle the non-linearities at the same time it is faster than other conventional controllers. The effectiveness of the proposed controller in increasing the damping of local and inter area modes of oscillation is demonstrated in a two area interconnected power system. The result shows that intelligent controller is having improved dynamic response and at the same time faster than conventional controller.

Keywords: Automatic Generation Control (AGC), Dynamic Model, Two-area Power System, Fuzzy Logic Controller, Neural Network, Hybrid Neuro-Fuzzy(HNF).

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418 A 1.8 V RF CMOS Active Inductor with 0.18 um CMOS Technology

Authors: Siavash Heydarzadeh, Massoud Dousti

Abstract:

A active inductor in CMOS techonology with a supply voltage of 1.8V is presented. The value of the inductance L can be in the range from 0.12nH to 0.25nH in high frequency(HF). The proposed active inductor is designed in TSMC 0.18-um CMOS technology. The power dissipation of this inductor can retain constant at all operating frequency bands and consume around 20mW from 1.8V power supply. Inductors designed by integrated circuit occupy much smaller area, for this reason,attracted researchers attention for more than decade. In this design we used Advanced Designed System (ADS) for simulating cicuit.

Keywords: CMOS active inductor , 0.18um CMOS technology , ADS

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417 Thermo-Sensitive Hydrogel: Control of Hydrophilic-Hydrophobic Transition

Authors: Wanwipa Siriwatwechakul, Nutte Teraphongphom, Vatcharani Ngaotheppitak, Sureeporn Kunataned

Abstract:

The study investigated the hydrophilic to hydrophobic transition of modified polyacrylamide hydrogel with the inclusion of N-isopropylacrylamide (NIAM). The modification was done by mimicking micellar polymerization, which resulted in better arrangement of NIAM chains in the polyacrylamide network. The degree of NIAM arrangement is described by NH number. The hydrophilic to hydrophobic transition was measured through the partition coefficient, K, of Orange II and Methylene Blue in hydrogel and in water. These dyes were chosen as a model for solutes with different degree of hydrophobicity. The study showed that the hydrogel with higher NH values resulted in better solubility of both dyes. Moreover, in temperature above the lower critical solution temperature (LCST) of Poly(N-isopropylacrylamide) (PNIAM)also caused the collapse of NIPAM chains which results in a more hydrophobic environment that increases the solubility of Methylene Blue and decreases the solubility of Orange II in the hydrogels with NIPAM present.

Keywords: Thermo-sensitive hydrogel, partition coefficient, the lower critical solution temperature (LCST), micellar polymerization.

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416 Repetitive Control and Feedback Dithering Modulation of a DC/AC Converter

Authors: Sing-Han Wang, Shiang-Hwua Yu, Chih-Po Yang

Abstract:

Repetitive control and feedback dithering modulation are applied to a single-phase voltage source inverter, with an aim to eliminate harmonics and stabilize the inverter under load variations. The proposed control and modulation scheme comprise multiple loops of feedback, which helps improve inverter performance and robustness. Experimental results show that the designed inverter exhibits very low distortion at its output with THD of about 0.3% under different load variations.

Keywords: Feedback dithering modulation, repetitive control, state feedback, inverter, harmonics elimination.

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415 Theoretical Study on a Thermal Model for Large Power Transformer Units

Authors: Traian Chiulan, Brandusa Pantelimon

Abstract:

The paper analyzes the large power transformer unit regimes, indicating the criteria for the management of the voltage operating conditions, as well as the change in the operating conditions with the load connected to the secondary winding of the transformer unit. Further, the paper presents the software application for the evaluation of the transformer unit operation under different conditions. The software application was developed by means of virtual instrumentation.

Keywords: Operating regimes, power transformer, overload, lifetime, virtual instrumentation.

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414 Centralized Controller for Microgrid

Authors: Adel Hamad Rafa

Abstract:

This paper, proposes a control system for use with microgrid consiste of  multiple small scale embedded generation networks (SSEG networks) connected to the 33kV distribution network. The proposed controller controls power flow in the grid-connected mode of operation, enables voltage and frequency control when the SSEG networks are islanded, and resynchronises the SSEG networks with the utility before reconnecting them. The performance of the proposed controller has been tested in simulations using PSCAD.

Keywords: Microgrid, Small scale embedded generation, island mode, resynchronisation.

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413 Fuzzy Control of a Three Phase ThyristorizedInduction Motor

Authors: Abolfazl Jalilvand, Mohammad Reza Feyzi, Sohrab Khanmohammad, Mohammad Bagher Bana Sharifian, Ali Sajjadi

Abstract:

Nowadays the control of stator voltage at a constant frequency is one of the traditional and low expense methods in order to control the speed of induction motors near its nominal speed. The torque of induction motor is a nonlinear function of the firing angle, phase angle and speed. In this paper the speed control of induction motor regarding various load torque and under different conditions will be investigated based on a fuzzy controller with inverse training.

Keywords: Three phase induction motor, AC converter, speedcontrol, fuzzy control.

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412 Capacity of Anchors in Structural Connections

Authors: T. Cornelius, G. Secilmis

Abstract:

When dealing with safety in structures, the connections between structural components play an important role. Robustness of a structure as a whole depends both on the load- bearing capacity of the structural component and on the structures capacity to resist total failure, even though a local failure occurs in a component or a connection between components. To avoid progressive collapse it is necessary to be able to carry out a design for connections. A connection may be executed with anchors to withstand local failure of the connection in structures built with prefabricated components. For the design of these anchors, a model is developed for connections in structures performed in prefabricated autoclaved aerated concrete components. The design model takes into account the effect of anchors placed close to the edge, which may result in splitting failure. Further the model is developed to consider the effect of reinforcement diameter and anchor depth. The model is analytical and theoretically derived assuming a static equilibrium stress distribution along the anchor. The theory is compared to laboratory test, including the relevant parameters and the model is refined and theoretically argued analyzing the observed test results. The method presented can be used to improve safety in structures or even optimize the design of the connections

Keywords: Robustness, anchors, connections, aircrete, prefabricated components.

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411 Gypseous Soil Improvement using Fuel Oil

Authors: Hussein Yousif Aziz, Jianlin Ma

Abstract:

This research investigates the suitability of fuel oil in improving gypseous soil. A detailed laboratory tests were carried-out on two soils (soil I with 51.6% gypsum content, and soil II with 26.55%), where the two soils were obtained from Al-Therthar site (Al-Anbar Province-Iraq). This study examines the improvement of soil properties using the gypsum material which is locally available with low cost to minimize the effect of moisture on these soils by using the fuel oil. This study was conducted on two models of the soil gypsum, from the Tharthar area. The first model was sandy soil with Gypsum content of (51.6%) and the second is clayey soil and the content of Gypsum is (26.55%). The program included tests measuring the permeability and compressibility of the soil and their collapse properties. The shear strength of the soil and the amounts of weight loss of fuel oil due to drying had been found. These tests have been conducted on the treated and untreated soils to observe the effect of soil treatment on the engineering properties when mixed with varying degrees of fuel oil with the equivalent of the water content. The results showed that fuel oil is a good material to modify the basic properties of the gypseous soil of collapsibility and permeability, which are the main problems of this soil and retained the soil by an appropriate amount of the cohesion suitable for carrying the loads from the structure.

Keywords: Collapsibility, Enhancement of Gypseous Soils, Geotechnical Engineering, Gypseous soil, Shear Strength.

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410 Harmonic Comparison between Fluorescent and WOLED (White Organic LED) Lamps

Authors: Hari Maghfiroh, Fadhila Tresna Nugraha, Harry Prabowo

Abstract:

Fluorescent and WOLED are widely used because it consumes less energy. However, both lamps cause a harmonics because it has semiconductors components. Harmonic is a distorted sinusoidal electric wave and cause excess heat. This study compares the amount of harmonics generated by both lamps. The test shows that both lamps have THDv(Total Harmonics Distortion of Voltage) almost the same with average 2.5% while the average of WOLED's THDi(Total Harmonics Distortion of Current) is lower than fluorescent has. The average WOLED's THDi is 29.10 % and fluorescent's 'THDi is 87. 23 %.

Keywords: Fluorescent, harmonic, power factor, WOLED

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409 Using LabVIEW Software in an Introductory Residual Current Device Course

Authors: B. Rajkumarsingh, S. Goolaup, A. Galleegadoo

Abstract:

Laboratory classes in Electrical Engineering are often hampered by safety issues, as students have to work on high voltage lines. One solution is to make use of virtual laboratory simulations, to help students understand the concepts taught in their coursework. In this context, we have conceived and implemented virtual lab experiments in connection with the study of earthing arrangements. In this work, software was developed, which aid student in understanding the working of a residual current device (RCD) in a TT earthing system. Various parameters, such as the earthing resistances, leakage currents and harmonics were included for a TT system with RCD connection.

Keywords: TT system, RCD, LabVIEW, Learning aids.

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408 Compensation–Based Current Decomposition

Authors: Mihaela Popescu, Alexandru Bitoleanu, Mircea Dobriceanu

Abstract:

This paper deals with the current space-vector decomposition in three-phase, three-wire systems on the basis of some case studies. We propose four components of the current spacevector in terms of DC and AC components of the instantaneous active and reactive powers. The term of supplementary useless current vector is also pointed out. The analysis shows that the current decomposition which respects the definition of the instantaneous apparent power vector is useful for compensation reasons only if the supply voltages are sinusoidal. A modified definition of the components of the current is proposed for the operation under nonsinusoidal voltage conditions.

Keywords: Active current, Active filtering, p–q theory, Reactive current.

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407 An Approach on the Design of a Solar Cell Characterization Device

Authors: Christoph Mayer, Dominik Holzmann

Abstract:

This paper presents the development of a compact, portable and easy to handle solar cell characterization device. The presented device reduces the effort and cost of single solar cell characterization to a minimum. It enables realistic characterization of cells under sunlight within minutes. In the field of photovoltaic research the common way to characterize a single solar cell or a module is, to measure the current voltage curve. With this characteristic the performance and the degradation rate can be defined which are important for the consumer or developer. The paper consists of the system design description, a summary of the measurement results and an outline for further developments.

Keywords: Solar cell, photovoltaics, PV, characterization.

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406 Backplane Serial Signaling and Protocol for Telecom Systems

Authors: Ali Poureslami, Hossein Borhanifar, Seyed Ali Alavian

Abstract:

In this paper, we implement a modern serial backplane platform for telecommunication inter-rack systems. For combination high reliability and low cost protocol property, we applied high level data link control (HDLC) protocol with low voltage differential signaling (LVDS) bus for card to card communicated over backplane. HDLC protocol is a high performance with several operation modes and is famous in telecommunication systems. LVDS bus is a high reliability with high immunity against electromagnetic interference (EMI) and noise.

Keywords: Backplane, BLVDS, HDLC, EMI, I2C, LCT, OSC, SFP, SNMP.

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405 Study on the Characteristics of the Measurement System for pH Array Sensors

Authors: Jung-Chuan Chou, Wei-Lun Hsia

Abstract:

A measurement system for pH array sensors is introduced to increase accuracy, and decrease non-ideal effects successfully. An array readout circuit reads eight potentiometric signals at the same time, and obtains an average value. The deviation value or the extreme value is counteracted and the output voltage is a relatively stable value. The errors of measuring pH buffer solutions are decreased obviously with this measurement system, and the non-ideal effects, drift and hysteresis, are lowered to 1.638mV/hr and 1.118mV, respectively. The efficiency and stability are better than single sensor. The whole sensing characteristics are improved.

Keywords: Array sensors, measurement system, non-ideal effects, pH sensor, readout circuit.

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404 In Search of Zero Beta Assets: Evidence from the Sukuk Market

Authors: Andrea Paltrinieri, Alberto Dreassi, Stefano Miani, Alex Sclip

Abstract:

The financial crises caused a collapse in prices of most asset classes, raising the attention on alternative investments such as sukuk, a smaller, fast growing but often misunderstood market. We study diversification benefits of sukuk, their correlation with other asset classes and the effects of their inclusion in investment portfolios of institutional and retail investors, through a comprehensive comparison of their risk/return profiles during and after the financial crisis. We find a beneficial performance adjusted for the specific volatility together with a lower correlation especially during the financial crisis. The distribution of sukuk returns is positively skewed and leptokurtic, with a risk/return profile similarly to high yield bonds. Overall, our results suggest that sukuk present diversification opportunities, a significant volatility-adjusted performance and lower correlations especially during the financial crisis. Our findings are relevant for a number of institutional investors. Long term investors, such as life insurers would benefit from sukuk’s protective features during financial crisis yet keeping return and growth opportunities, whereas banks would gain due to their role of placers, advisors, market makers or underwriters.

Keywords: Asset allocation, asset performance, sukuk, zero beta asset.

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