Interest Rate Turnaround and Real Estate Allocation – how will asset managers react to a change of interest rates?

Since 2013, the tactical increase of the allocation quote in “alternative assets” or real estate can be observed in the majority of the Top 100 asset management companies in Germany – an average of 9.5% in the whole portfolio. In international comparison (16.6%), Germany is in a mid-range position. But what will happen in a multi asset portfolio in case of an interest rate hike if the share quota is automatically reduced and the percentage of real estate is increased? At this point in time, it can be useful to take a closer look at the current discussion on tactical and strategic asset allocation, especially with a focus on real estate.

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