It is now nearly four years since the OECD and G20 agreed on the action points to tackle international tax avoidance. During this time we have seen anti-avoidance measures introduced around the world at some pace; these continue to impact traditional fund structures and potentially affect returns.  The OECD is now moving onto the second stage of its BEPS project and considering imposing minimum taxes.  Ivor Morris, Partner at KMPG gave an update on the impact on fund structures and returns on 25 March throuhg ANREV webinar. Additionally, he shared practical insights into how fund managers and investors are seeking to address these changes.

To view the recording of the webinar, please download the attached pdf and access the link stored with any browser.

The slides used in presentation can also be downloaded below.

ANREV would like to thank the speakers for their contribution.

In collaboration with NCREIF, PREA and INREV, ANREV is delighted to present the Total Global Expense Ratio (TGER).   

This new standard sets out to harmonise the approach for measuring the total fees and costs of real estate investment vehicles.  

Investors and managers will now be able to compare vehicles across different regions with ease, using just one approach, adding a further layer of transparency and consistency. 

The TGER builds on the INREV Total Expense Ratio (TER) and the Reporting Standards Real Estate Fees and Expense Ratio (REFER).

TGER has been incorporated into the NCREIF PREA Reporting Standards.  In the coming month, we will incorporate TGER into the fee and expense metrics module of the INREV Guidelines and update all fee related references.  

After a transition period, which will run until January 2021- TGER will become a required element of the INREV Guidelines. 

For more information, please contact [email protected]
 
Download the full paper for more information 

The industry looks for common metrics to report and compare performance of real estate investment vehicles that operate across different regions of the globe.

However, in practice we use different NAV calculations in different regions. To better understand the differences between IFRS, INREV NAV and US GAAP Fair Value NAV a comparison and first gap analysis was developed by INREV, ANREV, the NCREIF and PREA Reporting Standards.

The resulting short paper explains the main differences when calculating NAVs across regions and the potential impact of these differences.

This is an initiative from the Global Standards Steering Committee. 

When investors perform due diligence over prospective and current investments, related party transactions and fees are often key focus areas, particularly over “hidden fees” or debatable fees which may not be apparent pre-investment.

From a documentation perspective, governing documents are often vague or silent on how non-standard costs should be treated. As such, it is often left to the manager’s discretion to decide whether certain costs could or should be borne by the manager or by one or a combination of funds, managed accounts or other vehicles. This in turns may lead to conflicts of interest over fee allocation amongst different relevant mandates, especially if some are in promote/carry positions and some are under-water.

On 15th and 16th August 2019, ANREV hosted two round tables in Singapore and Hong Kong respectively, where a number of managers, fund administrators and advisors sat together and shared their experiences to identify current industry practices and learn from their peers in how they are meet investor demand for fairer and more transparent expense policies.

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ANREV Professional Standards Committee would like to thank the participants who have engaged in the discussion as well as Paul Walters from PwC who kindly helped to facilitate the discussion and wrote this paper.

To learn more about the committee please click here. For further information please contact [email protected]

The Asia Pacific region is going through a rapid learning curve with respect to open end Real Estate funds (OEREFs).  As a follow up to a round table on the same topic two years ago, ANREV and PwC hosted a three-city round table to discuss the new and recurring issues being faced.  Whilst many perennial questions remained, there were also new operational issues being identified now that more funds have been operating for a period of time, and many more to be launched imminently.

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ANREV Professional Standards Committee would like to thank the participants who have engaged in the discussion as well as Paul Walters from PwC who kindly helped to facilitate the discussion and wrote this paper.

To learn more about the committee please click here. For further information please contact [email protected]

A step closer to global alignment

Over 40 companies took the time to have their say and provide a detailed response to the Total Global Expense Ratio (TGER) industry consultation, which ran between March and June 2018.

Thanks, your feedback is greatly appreciated and will allow us to conclude on the first globally comparable measurement of fees and costs. 

Your insights will ensure that we can successfully design a global standard that is simple, practical and facilitates comparison and consistent reporting of fees and costs.

The feedback will now be reviewed by the Global Task Force with the aim of having it finalised by the end of the year.

TGER is the new proposed global standard for measuring fees and costs of a real estate investment vehicle. It enables comparison across products, regardless of the vehicle domicile, structure and management activities.

The Global Standards initiative was established as a collaboration between ANREV, INREV NCREIF and PREA to jointly develop comparable reporting standards for institutional real estate investment vehicles on a global basis.

Following the industry consultation on the Total Global Expense Ratio (TGER), INREV organized a webinar on 16th May 2018. We are honoured to present the video recording of the webinar titled “Global Best Practices for Fees and Expense Metrics Webinar”.

The session, led by Renaud Breyer, EY, and Barbara Flusk, Citco Fund Services, examines the current market practices in fees and expense metrics and their related disclosures as well as presenting the new Total Global Expense Ratio (TGER) – the first globally consistent measure for real estate investment vehicle fees and costs which INREV, ANREV, NCREIF and PREA jointly developed.

The webinar covers:

• INREV Guidelines for calculation and disclosure of fees and expense metrics
• NCREIF PREA Reporting Standards measure of fund fee load
• Global initiative on Total Global Expense Ratio
• Benefits of implementing these guidelines

The webinar will be of interest for investors, fund managers as well as advisors. It will be of particular interest for investment managers who work in fund reporting and those on the product development side who are interested in trends in fee terms and structures.

To find out more about TGER, download the file below to access the video recording.

This is the fifth annual Review of Investor Reporting Trends published by ANREV.

The report provides insights into current market practices of investor reporting across non-listed real estate funds investing in Asia Pacific and explore to what extent reporting complies with the INREV reporting guidelines.

The headline compliance with the reporting module of the INREV Guidelines recorded total score of 87.5% in 2017.

We would like to extend our sincere thanks to all who shared their valuable time and expertise during this project.

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The ongoing tax and regulatory developments put increasing pressure the requirements fund structures have to meet in order to be efficient, compliant, sustainable and attractive to investors. Particularly on the tax side there is a paradigm shift with the focus now changing from “substance” to the “business rationale” of a structure.

From a professional standards perspective we consider this a very relevant topic as good fund governance entails designing a fund structure that is not only compliant with the tax, legal and regulatory requirements as they apply at the inception of the fund but also as they are expected to apply during the fund’s term. The round table allowed the participants to share their perspectives and experiences on the developments in the fund-structuring and fund-raising process thereby engaging in peer-to-peer learning.

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ANREV Professional Standards Committee would like to thank the participants who have engaged in the discussion as well as Joep Ottervanger from Loyens & Loeff and Eric Roose from Withers KhattarWong, who kindly helped to facilitate the discussion and wrote this paper.

To learn more about this Committee, please click here.

ANREV, INREV, NCREIF and PREA are pleased to jointly release for industry consultation the first globally comparable measure of fees and costs named Total Global Expense Ratio (TGER).

The new proposed global standard measures the fees and costs related to participation in a real estate investment vehicle and enables comparison across products, regardless of the vehicle domicile, structure and management activities.

The Total Global Expense Ratio incorporates definitions from the Global Definitions Database, bringing consistent terminology for the most widely used vehicle fees and costs that may be charged directly and indirectly by investment managers and service providers.

The consultation process for TGER runs until 21 June to provide the industry with the opportunity to help design a global standard that is simple, practical and facilitates comparison and consistent reporting of fees and costs.

TGER and the GDD are initiatives of the Global Standards Steering Committee, established as a collaboration between INREV, ANREV, NCREIF and PREA to jointly develop comparable reporting standards for institutional real estate investment vehicles on a global basis.

For further information please contact:

Amelie Delaunay, ANREV

Constantin Sorlescu, INREV

Marybeth Kronenwetter, NCREIF PREA Reporting Standards