ANREV, INREV and NCREIF are exited to release the first global comparison of the Total Global Expense Ratio (TGER). The publication is an important step in enhancing transparency on the total fees and vehicle costs for open-end diversified core equity non-listed real estate funds (ODCE).

The study includes the TGER for 46 funds out of the 49 funds included in the Global ODCE Index, representing a total gross asset value (GAV) of USD 359 billion (98% of the Global ODCE Index’s GAV) as of the end of 2023.

Key highlights include:

• The average reported Total Global Expense Ratio (TGER) for Global ODCE funds for 2023 was 0.82% based on GAV and 1.18% based on NAV
• The largest driver of regional differences between the TGERs is vehicle costs. They are lower for US funds which are generally larger in size and invest in a single country while in the other regions funds operate in multiple countries
• Performance fees are not commonplace amongst ODCE funds, with only a handful of funds reporting using them in 2023