Diversified Investment Portfolio Research Articles

Application of quantum technologies in banking

Aim. IThe presented study aims to identify current trends and key directions for the introduction of quantum technologies into the management practices of Russian credit institutions to improve their performance in the medium term.Tasks. The authors comparatively analyze current trends in the application of quantum technologies in the banking business; forecast key trends in their development in the medium term in the context of the Russian banking sector.Methods. The authors use the methods of comparative and system analysis, scientific abstraction, and hypothesis.Results. Practical examples of the introduction of modern quantum technologies in the foreign and Russian banking business are provided. As a result, priority directions and areas of their application are identified with an emphasis on the domestic banking sector: credit scoring, assessment of the value and risk of investment, diversification of investment portfolios, financial forecasting, crisis prediction, fraud detection, protection of banking and customer databases from the quantum threat, and increasing the level of banking cybersecurity in general.Conclusions. Despite the novelty of quantum technologies in the banking business, the role they will play in banking in the near future is difficult to overestimate. Quantum computers can significantly improve the performance of banking IT systems by solving computational tasks that even super-powerful conventional computers are not able to tackle on their own. They significantly increase the efficiency of modeling complex systems and processes; accelerate the soultion of problems associated with resource optimization, logistics, finance, and trading; simplify work with big data using artificial intelligence (AI) and machine learning models in neural networks; help to combat cyber attacks and fraud in financial markets.

Interdependency between Indian and US market indices: A granger causality approach

The Granger causality model is used in the current study to analyze the short-run cause–effect relationship between two stock market indices between 2001 and 2021 using time series data of the daily closing prices of the BSE Sensex and S and P 500 indices listed in the Indian and US stock markets, respectively. The Granger causality model and the augmented Dickey–Fuller test for data stationarity were used in the study to examine the short-term causal link between two market indices during the time period. The outcomes demonstrated the connection between the Indian and US stock markets. The findings imply that both markets have a dynamic, bidirectional relationship. This study provides the investor’s essential inputs for investment decision-making and portfolio diversification. In the current era of globalization, the study is crucial because investors and fund managers now place a high priority on stock market integration. Through fund diversification across equity markets, this study subsequently makes it easier to reduce portfolio risk by providing useful insights on diversification strategies across the stock markets.

Selection of Agroindustry Real Estate Funds, based on the AHP-Gaussian, for an Investment Portfolio

One of the problems faced by investors in the stock market is the difficulty in choosing good assets, since, for investors without adequate knowledge, it becomes a subjective and non-quantitative process, which makes it difficult to assess whether the asset is good or not. In this sense, selecting the best FIAgro fund, based on the AHP-Gaussian multicriteria decision method, to compose a diversified investment portfolio. The collection of data referring to FIAgro was based on investment brokerages in data from the Brazilian Stock Exchange. After modeling the AHP-Gaussian method, the result indicated RZAG11 as the best FIAgro and PLCA11 the worst.

Proposal of a diversified investment portfolio in stocks: An approach to AHP-Gaussian method

The purpose of this article is to assist decision-making in the selection of diversified investment portfolios in Brazilian stocks, proposing alternatives in a hierarchical manner within each sector of the Stock Exchange. Among various multicriteria decision methods, the AHP-Gaussian method, a new approach to the traditional AHP that does not require prior evaluation by a decision-maker, was chosen. Using criteria from fundamental analysis of companies, the methodology hierarchizes alternatives within each sector of the Stock Exchange. As a result, the proposal suggests the best companies for investment in each sector, which can be viewed through a web application that allows filters according to the investor's needs. Thus, the methodology presented in this study can provide valuable support for decision-making in the financial market.

Role of Financial Literacy in Investment Decisions: Exploring the Individual Investors’ Perspective through a Qualitative Approach

Purpose: This study aims to explore phenomenal role of financial literacy on investment decisions. Financial literacy enables the individuals to manage their financial resources through pursuing alternative investment opportunities and portfolio diversification. Individual investors tried to balance their income-expenditures by availing latest investment opportunities in stocks, bonds, shares and financial instruments of the companies through stock exchanges, conventional and non-conventional investment channels. In current economic situations low stock prices, capital gains, financial interest, stock market rumors induce individual investors to trade in stock markets. As these indices, provide fair opportunities of investment as compared to bank deposits and other modes of investments. However, financial literacy (FL) offers a bridge to investors for making sound investment decisions through the best utilization of resources.
 Methodology: This study is based on the exploration of the role of financial literacy from individual investor’s perspective. Therefore, research method for this study is ‘Grounded theory’ under the qualitative approach. For the purpose of data collection, researcher conducted in-depth personal interviews. NVIVO software has been used for qualitative analysis of the data gathered through interviews. Different techniques such as, Word Tag Cloud, Word Tree and Tree Map were used to elaborate the themes of the study.
 Findings: This study found that financial literacy, economic, political and market factors influence the quality of investment decisions of the individuals. Moreover, rumors in financial markets also affect the investment decisions of the individuals.
 Implications: This study provide better outlook about the FL and investment decisions made by people based on knowledge about finance. Generally, financial activities are performed in financial markets divided into two categories; primary and secondary markets.

A Novel Weighted Hybrid Recommendation System using Sharpe Ratio for a Profitable Diversified Investment Portfolio

Identifying where to invest and how much to invest can be very challenging for common people who have limited knowledge in the domain. Portfolio managers are financial professionals who spend a lot of time and effort to help investors in investing funds and implementing investment strategies, but not all can afford to consult them. The study aims to develop a weighted hybrid recommendation system that recommends an optimized investment portfolio based on the investor’s preferences regarding risk and return. Generally, investors usually ask investment for advice from friends or relatives with similar risk preferences or if they are interested in a particular item, the investors ask for the experience of someone who already has invested in the same item. Therefore, the methodology considers the investor’s past behavior and the past behavior of the nearest neighbor investors with similar risk preferences. Using user-based collaborative filtering the number of stocks is recommended using Pearson correlation based on the investor’s income, then using another user-based collaborative filtering the number of stocks is recommended based on the investor’s age. Weights are assigned to the recommended number of stocks generated based on income and age and their weighted average is finally considered. Finally, the feasibility of the proposed system was assessed through various experiments. Based on the received results, the authors conclude that the proposed weighted hybrid approach is robust enough for implementation in the real world. The novelty of the paper lies in the fact that none of the existing approaches make use of more than one type of weighted recommendation algorithm. Additionally, the final results obtained this way have been never further fortified with the highest Sharpe ratio and minimum risk for the investor. This combination of hybrid and Sharpe ratios has never been explored before.

Comparative analysis of individual investment accounts of commercial banks of Russia

An individual investment account as a financial instrument for long-term investments is aimed at increasing funds by investing in securities. It allows investors to form a diversified investment portfolio of investments by acquiring ownership of securities. The article is devoted to the analysis of the current state and prospects for the development of individual investment accounts. The paper reveals the concept and essence of individual investment accounts, their advantages and disadvantages are given. A comparative analysis of individual investment accounts in Russian credit institutions was also carried out.

Robo-advisor based on unified theory of acceptance and use of technology

PurposeFollowing the advancement of financial technology (FinTech) in modern society to assist investment decisions, robo-advisers had become widely used in mean-variance analyses to allow investors to formulate efficiently diversified investment portfolios. However, the concept of robo-advisers is new, and few studies have addressed issues related to them. To help readers to better understand robo-advisor adoption by a wide range of potential customers, this study explores integrated models of the attitudes (ATT) and behavioural intentions (BI) of users towards robo-advisors.Design/methodology/approachA survey was used to gather data to determine how the unified theory of acceptance and use of technology (UTAUT) applies to robo-advisors. A total of 242 valid questionnaires were collected.FindingsThe results of our study show that performance expectations (PE), effort expectancy (EE), and social influences (SI) may have indirect influences on robo-advisor behavioural intention (BI) through attitudes. Furthermore, behavioural intention was also positively influenced by facilitating conditions (FC). Moreover, the investment to income ratio (IIR) moderated the relationship between the PE, EE, and SI influence on ATT. Additionally, experience is found to positively strengthen the relationship between EE and SI on ATT, and it moderated the relationship between FC and BI.Originality/valueThis research is expected to expand the use of UTAUT to tools in the field of financial investments and help financial sectors formulate suitable marketing strategies.

Optimisation modelling tools and solving techniques for integrated precinct-scale energy–water system planning

This invited review paper presents state-of-the-art applications to energy–water system optimisation with multiple technologies, implying possible (non)monetary benefits/impacts for facility custodians in urban precincts. To solve outstanding problems, optimisation modelling frameworks were examined in the quest for undertaking an integrated precinct-scale energy–water system planning. Underlying optimisation methods were identified for addressing nested long/short-term capital/managerial decisions that ensure cost-effectiveness and system reliability, especially selecting diversified investment portfolios to allocate controllable assets across energy and water resources. Despite the ongoing energy–water nexus investigations, the integrated energy–water system planning seems to lack a general optimisation problem formulation that reveal synergies between energy and water. Considering the dynamic and nonlinear nature of energy–water interactions, mathematical properties must be carefully treated for tackling complex integrated energy–water system planning optimisation problems. To optimise integrated precinct-scale energy–water system plans, classical and heuristic techniques can be jointly implemented for solving (re)formulated problems with hard constraints and desirable cost/resource-saving objectives. Critical energy–water system sizing/scheduling tasks were discussed while covering deterministic and probabilistic procedures to support decision-making under uncertainty. Although different combined stochastic programs have been proposed incorporating actual outcomes and empirical measurements as well as prior information and expert knowledge, inherent energy–water demand/supply uncertainties should be realistically characterised by parameterising representable random perturbation sets. To find robust optimal feasible solutions to sensitive parameters during extreme load/cost volatility situations, historical energy–water usage data can be randomly perturbed for uncertainty realisation in prospective scenarios, capturing spatiotemporal correlations that avoid overconservative worst-case expected values. From the scientific paradigm of physics-informed data-driven optimisation modelling, robust approaches can be adopted for severe societal/natural events to advance state-of-the-art applications in integrated precinct-scale energy–water system planning and engineering design.

Experience in developing the corporate bond market in ASEAN+3 countries and lessons for Vietnam

Vietnam is viewed as having a banking-dependent financial system. The population's idle capital is mainly used to serve the investment needs of the economy indirectly through the banking system. Therefore, developing the stock market, particularly the corporate bond market, enables the economy to minimize its dependence on the banking system and generate capital for the economy. Issuing bonds is considered a method of raising money that has a number of advantages, including the ability to mobilize capital from all economic sectors. On the other hand, several comments in the research on promoting long-term capital financing suggest that the issuance of bonds also provides the market and investors with a financial tool, assisting in the diversification of investment portfolios and risk reduction. Developing the corporate bond market is not only in Vietnam but also becomes an urgent task than ever when the domestic, regional and world economies face numerous difficulties stemming from crises. According to the Asian Development Bank (ADB), one of the main reasons behind the 1997 Asian financial crisis was the excessive dependence of Asian economies on commercial banks for domestic financing. Asian countries have almost failed to diversify financial sources to finance businesses because these economies mainly rely on banks instead of other financial instruments, in particular. The bond market is still underdeveloped and quite small in size. Moreover, Asian countries need a substantial long-term source of capital (US$750 billion per year 2010–2020) to develop infrastructure connectivity within and between economies in the region. Therefore, the restructuring of the financial system, in which the diversification of capital funding sources, specifically promoting the bond market in general and the corporate bond market in particular, becomes an indispensable need not only of especially in Vietnam but also in Asian countries, especially since the 1997 Thai currency crisis and the 2008 global financial crisis, through the bond market in general and the corporate bond market in particular, sources local and regional capital can be channeled into infrastructure projects and other productive investments over the long term. Having a well-developed local currency bond (including corporate bonds) market can enhance the resilience of domestic financial markets to external shocks and facilitate better intermediation between savings and investment. invest in production in Asian countries, including Vietnam. Therefore, learning about the experience of developing the corporate bond market in a number of countries in the ASEAN+3 region, thereby drawing lessons from experience for Vietnam is critical for the country's development of the corporate bond market.

Application and Comparative Study of Optimization Algorithms in Financial Investment Portfolio Problems

Portfolio theory mainly studies how to optimize the allocation of assets under the premise of maximizing expected returns and minimizing investment risks. In view of the instability of the financial market, a diversified investment portfolio can help control the loss of the investment portfolio. In addition to paying attention to the safety and return of asset allocation, we cannot ignore the liquidity of assets, that is, their liquidity. Adding high-liquidity products to asset allocation, such as equity investment, can better control the financial cash flow in response to emergencies. One of the ways to make assets flow is to securitize assets and sell them to the market. In order to revitalize the stock assets, good investment efficiency is a necessary choice for financial investment. Various financial products and their derivatives continue to enter people’s vision. There are many financial products in reality, and optimizing the investment portfolio can bring high economic benefits. The purpose of this paper is to study the application of optimization algorithms in financial portfolio problems. (1) Monetary policy remains prudent and neutral. It is not easy to expect flooding, but flexibility is required in complex situations. (2) Financial resources are tilted towards innovation and transformation and capital markets, which is beneficial to the development of capital markets in the medium and long term. (3) Unblocking the transmission mechanism is conducive to lenient credit and tapping the wrong killing opportunities in private enterprise debt. (4) Banks and other financial institutions have moderate pressure to give benefits to entities, but in the long run, the interests of the two are consistent. (5) Finance risk prevention will continue, orderly breaking the rigid exchange and reshaping the financial structure and ecology. (6) The pace of opening up of the financial industry has accelerated, and the bond market investor structure has improved. In this paper, we establish different optimization schemes to compare and study the portfolio problem and then use MATLAB to solve the modeling and programming problem, calculate the highest return rate and the lowest risk value before and after optimization, and then make a comparative analysis to get a better optimization scheme. The results show that the genetic algorithm model is superior to the quadratic programming method in terms of risk control. The minimum risk of portfolio optimization through genetic algorithm has been reduced by about 40%, and the maximum return has increased by about 25%. The comprehensive optimization effect is better than the quadratic planning method and ultimately can obtain higher economic benefits. It can be seen that the optimization algorithm is of great significance for the comparative study of financial portfolio problems.

Cryptocurrency as a safe haven for investment portfolios amid COVID-19 panic cases of Bitcoin, Ethereum and Litecoin

PurposeThis article examines the susceptibility of cryptocurrencies to coronavirus disease 2019 (COVID-19) induced panic in comparison with major stock indices.Design/methodology/approachThe author employs the Bayesian structural vector autoregression to examine the phenomenon in Bitcoin, Ethereum and Litecoin from 2nd January 2020 to 30th June 2021. A similar analysis is conducted for major stock indices, namely S&P 500, FTSE 100 and SSE Composite for comparison purposes.FindingsThe results suggest that cryptocurrencies returns suffered immensely in the early days of the COVID-19 outbreak following declarations of the disease as a global health emergency and eventually a pandemic in March 2020. However, the returns for all three cryptocurrencies recovered by April 2020 and remained resistant to further COVID-19 panic shocks. The results are dissimilar to those of S&P 500, FTSE 100 and SSE Composite values which were vulnerable to COVID-19 panic throughout the timeframe to June 2021. The results further reveal strong predictive power of Bitcoin on prices of other cryptocurrencies.Research limitations/implicationsThe article provides evidence to support the cryptocurrency as a safe haven during COVID-19 school of thought given their resistance to subsequent shocks during COVID-19. Thus, the author stresses the need for diversification of investment portfolios by including cryptocurrencies given their uniqueness and resistance to shocks during crises.Originality/valueThe author makes use of the novel corona virus panic index to examine the magnitude of shocks in prices of cryptocurrencies during COVID-19.

Analysis of Pension Fund Investment Portfolio Diversification Policy and Its Impact on Financial Performance (Study on PLN Pension Fund 2010-2018)

In deciding to invest in a financial instrument in the money market or capital market, experience and sharpness of analysis are needed so that investors can maximize the obtain returns, for pension fund managers it is important to be able to develop the set of funds obtained from customers in order to provide maximum returns. and the available funds become more useful. This study aims to analyze the optimization of the diversification of pension fund investment portfolios policy and their impact on the financial performance of pension funds. This research was conducted on Employer Pension Fund (DPPK) PT. PLN (Persero) during the period of 2010-2018 using two analytical models, namely the Markowitz and Sharpe models, then the results of the two models were compared with the paired t-sample difference test and correlated with the Pearson correlation test. The calculation results conclude that the portfolio proportions of 6 types of investment instruments provide almost the same optimal results based on the two models and based on the proxies of the two models in analyzing portfolio optimalization on financial performance there is no significant difference with a result of 0.094. The Markowitz model with consideration of investors' preferences for risk has a strong correlation with one of the financial indicators, namely the Fund Adequacy Ratio (FAR) with a correlation value of 0.637 or 63.7%.

Synthesis of stable coalitions in the economy based on fundamental criteria of the portfolio theory

Subject. The article outlines basic principles of a mathematical model for formation of stable coalitions in the economy at the interstate level. Objectives. We focus on developing a mathematical model to build such coalitions. Methods. The study employs the portfolio theory, risk-return model, correlation and regression analysis, technical and fundamental analysis. The proposed model rests on fundamental provisions of creating a multicomponent, widely diversified investment portfolio. The model uses the key concepts, like expected profitability, risk level, industry diversification and hedging, in combination with the synthesis of a diversified group of leading commodity indices. Results. We show possibilities of using internal (based on the country’s indices) and external (based on other countries’ indices) correlation analysis, according to data on trends in economic indices, to ensure sectoral diversification within the country and maximize the international level of sectoral diversification, respectively. We performed a fundamental analysis of the condition of economies of the countries included in the coalition, and of the countries, which are considered to be included in the coalition as appropriate. The paper assesses positive and negative factors of joint functioning of the economies of the coalition countries, from the point of view of their geographic location. Conclusions. The model makes it possible to build new optimal coalitions in the economy, to analyze the practicability of further existence of previously formed coalitions, and to update the composition of coalitions, according to trends in the world economy development.

Institutional Investors and Home-Biased REITs

Real estate investment trusts (REITs) are frequently considered an investment opportunity for institutional investors due to their above-average returns with respect to other financial instruments. Due to the unique characteristics of the real estate market, geographically specialized (home-biased) REITs can normally benefit from higher-quality information for selecting investment opportunities and from a reduction of the cost of monitoring and servicing asset owners. Home-biased REITs can be particularly appealing for institutional investors because the addition of this type of asset to an already diversified investment portfolio can optimize the risk–return of their investment strategy and mitigate the concentration of real estate investments. This paper considers all the REITs in Standard & Poor’s Global REIT Index and evaluates the percentage of investment released by (domestic and foreign) institutional investors and its change over time. Focusing on REITs’ international real estate exposure, this paper shows that geographical diversification matters for investment decisions made by international investors and the results are robust with respect to the time horizon and the proxy for ownership concentration.

Using wavelets in the measurement of multiscale dependence between Saudi and selected foreign stock markets

AbstractThis paper examines the multiscale linkage between one of the main stock markets in the Arab region (Tadawul All Share Index, TASI) and two foreign markets among its major partners (Dow Jones Industrial (DJI) and Financial Times Stock Exchange (FTSE)). A set of wavelet‐based multifractal and cross‐analysis tools are used to recognize signs of clustering or scattering between these markets in the time–frequency space. The experiment is designed to include a noteworthy period of instability in the financial sector along by a high recession in the global economic system. The results indicate that most cross‐correlations corresponding to the highest wavelet detail are statistically significant, especially for central lead–lag coefficients. At the highest frequency bands, significance is rejected for most cross‐correlations, thus providing investors with various short‐term investment replacements and portfolio diversification openings. Over the crisis period, cross‐correlations take a skewed distribution, which proves that foreign indexes have a higher predictive power for TASI's time series. Furthermore, the interdependence TASI–DJI is confirmed through several periods and at various frequencies, whereas the TASI–FTSE nexus was inclined to be slightly less important, particularly in short‐run horizons. Another surprising result is that in the midst of the crisis, while high and continuous cross‐correlations were expected, on a particular frequency band, we noted a significant dissociation between the Saudi index and the two international indexes. These findings would offer investors in Saudi Arabia new insights and tools for an increasingly globalized investment world.

Investment potential of non-state pension funds in Ukraine

World practice shows that non-state pension funds (NPFs) are not only a tool for supplementary pensions, but also a source of significant investment in the economy. This study aims at determining the investment potential of 65 Ukrainian NPFs currently functioning in the country. The analysis of Ukrainian NPFs has shown their insignificant role as an investment resource (the volume of their assets is 0.09% of GDP). At the same time, NPFs operate with significant funds (UAH 3.1 billion in 2019), but the lack of a developed stock market and effective financial instruments in the country narrows the opportunities for their investment activities. A study of the structure of NPF assets allocation showed that it is far from optimal in terms of investment portfolio diversification and is very conservative – almost 85% of invested NPF assets are government guaranteed securities and funds in bank deposit accounts. But in the context of tightening the requirements for disclosure of information on the activities of NPFs, promoting the stock market development, formation of reliable mechanisms to protect depositors’ pension savings,and formation of an effective investment portfolio, NPFs in Ukraine

A Study on Portfolio Management WRT Textile Industry

Changing global financial environment and emergence of new economic powers in recent decades, diversification of investment portfolios at country and sector levels assumed additional significance. Optimum portfolio selection within a capital market is primarily based on the best risk-return trade-off among the industry sectors. Literature suggests that much of market volatility can be attributed to substantial increase in sector specific and sub-sector specific risks. This research has estimated the dynamics of correlations of stock market returns between Industry sectors in India. Analysis of monthly market data for the period 09-DEC 2020 to 05-FEB 2021 on a sample of 4 industry sectors selected randomly indicates that investors can substantially improve their reward to risk as compared with the market returns.

The Effect of Sustainable Asymmetric Market Conditions on Returns & Volatility in Stock Markets during a Global Financial Crisis

Sustainable asymmetric market conditions’ development and volatility in stock returns play a vital role in investment decisions during a global financial crisis. Rational investment decisions and portfolio diversification can have the optimum returns. However, portfolio diversification through Islamic stock returns is perceived as a model of safer flight than that of conventional stocks. In the present study, the GARCH (1,1) - (Mean and Variance equations) has been employed to predict the impact of asymmetric market conditions on returns and volatility of Islamic stock markets (Dow Jones Islamic Market Malaysia (DJIM), Dow Jones Islamic Market Indonesia (JKII) and Dow Jones World Islamic Index (DJWI) Benchmark), and Conventional stock markets (Shanghai Stock Exchange (SSE-China), Bombay Stock Exchange (BSE-India) and Pakistan Stock Exchange (PSE-Pakistan), during the global financial crisis. The analysis reveals that the bullish effect was higher in all stock markets. Overall results suggested that Islamic stock markets have a sustainable impact of asymmetric market conditions on returns and volatility of Islamic stock markets & conventional stock markets during the global financial crisis. The asymmetric market conditions in stock markets are strongly recommended for economic globalisation during a global financial crisis.

Sampling methods for investment portfolio formulation procedure at increased market volatility

Aim/purpose – In this paper, a market volatility-robust portfolio composition frame- work under the modified Markowitz’s approach with the use of sampling methods is developed in order to improve the allocation efficiency for a portfolio of financial in- struments formulation procedure at an increased market volatility. Design/methodology/approach – In order to overcome the risk of not receiving an optimal solution to the portfolio optimization (suboptimal outcomes of attribution of weights in allocation procedures) the developed model, first, implements the rationale that financial markets largely feature two states, i.e., quiescent (non-crisis; low market volatility) periods that are occasionally interspersed with stress (crisis; high market volatility) periods and, second, relies on many input samples of rates of return, either from an empirical distribution or a theoretical distribution (mitigating estimation risk). All computational results are reported for publicly available historical daily data sets on selected Polish blue-chip securities. Findings – Not only did the presented method produce more diversified allocation, but also successfully minimized the unfavorable effects of increased market volatility by providing less risky portfolios in comparison to Newton’s method, typically used for optimization under portfolio theory. Research implications/limitations – The research emphasized that in order to get a more diversified investment portfolio it is crucial to outdo the limitations of a single sample approach (utilized in Markowitz’s model) which may on some occasions be statistically biased. Thus it was proved that sampling methods allow to obtain a less concentrated and volatile allocation which contributes the investment decision-making. However, the current research focused solely on publicly available input data of particular securities. In this manner, an additional analysis can be prepared for other jurisdictions and asset classes. There can also be considered a use of other than variance risk measures. Originality/value/contribution – The suggested framework contributes to existing methods a wide array of quantitative data analysis and simulation tools for composing an unique approach that directly addresses the task of minimizing the adverse implications of increased market volatility that, in consequence, pertains to knowledgeable attributing of investment portfolio proportions of either individual or institutional investors. The prepared method is also proved to hold demanded computational quality and, importantly, the capacity for further development. Keywords: investment decisions, optimization techniques, portfolio selection, statistical simulation methods. JEL Classification: C150, C610, G110.