Monitoring Asset Allocation

The property portfolio must be monitored at regular intervals, also in terms of a balanced asset allocation. It is essential to avoid overweighting the property ratio or even cluster risks. The property portfolio may have come into existence:

  • as family real estate
  • as a long-standing investment portfolio
  • as an inherited component that was neglected by a new management
  • as the result of a change in trends with reduced demand (demographic change)
  • due to other contributory factors

If certain properties fail to increase in value and marketing opportunities deteriorate, the property ratio concerned must be reduced or scaled back to a reasonable level.

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