Global real estate bodies agree on fees and costs measure
The major global real estate associations have reached an agreement on a standardised approach for measuring fees and costs of real estate investment vehicles which will help investors and managers compare vehicles across different regions.
The new ratio, the total global expense ratio (TGER), would make it easier for investors and managers to compare fee structures across their non-listed real estate vehicles and investment portfolios, regardless of the reginal domiciles of these investments.
TGER was also expected to provide an additional mechanism for cost analysis and comparison with industry averages, aimed at helping improve investment decision-making.
The new measure would become a required element of the INREV guidelines, which provided a basis for information exchange and reporting for investors and fund managers, and which were adopted by the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) across the Asia-Pacific region.
“Finally, investors have the ability to easily compare fees and expenses across funds, which is a major consideration in making an investment decision,” John Caruso, managing director and global head of fund finance, Nuveen real estate and co-chair of the global standards steering committee, said.
“TGER truly levels the playing field both domestically and internationally by providing a standard methodology for investment managers to follow as well as providing investors an additional measure to use when comparing investment alternatives.”
AUTHOR
Oksana Patron
Recommended for you
Record flows into iShares ETFs helped BlackRock’s assets under management reach US$13.5 trillion in the third quarter, but it reported outflows from the APAC region.
Regal Partners has passed $20 billion in funds under management, helped by $723 million in net inflows during the last three months.
Global investment manager Fidante has formed a strategic partnership with a London-based asset manager to secure exclusive distribution rights across the APAC region.
Blackwattle Investment Partners has hired a management trio from First Sentier Investors – who departed amid the closure of four investment teams last year – to run its first equity income offering.
