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
BlackRock Australia plans to launch a Bitcoin ETF later this month, wrapping the firm’s US-listed version which is US$85 billion in size.
Financial advisers have expressed concern about the impact including private market exposure is having on their tracking error budget, according to MSCI.
State Street will restrict its membership of global climate alliance Net Zero Asset Managers after the organisation dropped its flagship 2050 goals amid ESG backlash from the US.
Betashares has launched a global shares and a global infrastructure ETF as part of the firm’s strategic expansion strategy to support financial advisers in building more diversified portfolios.
