Scherer Capital Advisory

Portfolio Management

When choosing real estate objects for the respective portfolio of the Scherer Capital Advisory clientele, the scope for decision-making is subject to a fundamental overall strategy. However, it is not uncommon that the respective codified strategy is not always transferable in tangible terms to the individual real estate. In doing so, Scherer Capital Advisory makes use of the subdivision of the strategy into partial strategies.

In doing so, methodologies from strategic corporate management have become established for strategic planning. In particular, the application of the Market Attractiveness Competitive Advantage matrix (according to a particular scoring model) is well suited for a close look at, and in particular a meaningful, analysis of the real estate markets, since it takes into account several factors within its dimensions.

Basically, a qualitative approach makes sense in supplementing the respective quantitative approach (portfolio theory). Scherer Capital Advisory therefore considers it fundamental to use these in advance of the investment decision of its clients. In doing so, Scherer supports Capital Advisory in the determination, such as the selection of suitable investment properties, and in particular supports their weighting within the portfolio, taking into account the portfolio theory (according to Markowitz).

The performance of Scherer Capital Advisory's clients is to achieve an appropriate overall risk / reward ratio according to the client's preferences through an optimized portfolio composition. In the real estate sector, regional and sectoral diversification are responsible for this.

Regional diversification

Diversified portfolio management characterized by our regionality is invested nationally (different locations) in accordance with the strategic requirements of our client base, as well as internationally in various countries (primarily EMEA).

The locations are subdivided to create a hierarchical regional structure. For each subdivided area, a separate portfolio screening is carried out for the client. Scherer Capital Advisory regularly prepares a constituent portfolio compilation according to a so-called top-down planning with regard to the individual preferences of its clients in the priority context for the respective country breakdown, legal framework, tax laws and in particular the demographic development.

Sectoral diversification

The sectoral portfolio diversification distinguishes between different types of use of the respective properties according to their classification with regard to the individual segments trading / office, residential and corporate real estate. Naturally, the respective buyers have extremely heterogeneous, and above all independent, requirements on the type of use of the respective property. In general and subject to the individual recommendations of Scherer Capital Advisory, a combination of regional and sectoral diversification seems to be desirable on a regular basis.

"Qualitative portfolio management is a mindset".