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INREV and AREF launch initiative for consistency in open end fund pricing

Thursday 30 November 2017, Munich  INREV and AREF have today launched a joint industry-wide consultation paper aimed at accelerating the debate on open end fund pricing policies.

The consultation paper, entitled Open End Fund Pricing, will lead to greater consistency and clarity on pricing policies in the longer term. The accompanying study looks in detail at the main pricing methodologies generally used by market participants and also introduces an alternative pricing model, which blends the best of the existing models. 

Following the launch of the study, INREV and AREF will collate feedback from their respective memberships. These responses will be summarised in a follow-up conclusion paper, which will be published in early 2018. The ultimate objective is to arrive at generally accepted pricing principles that are easy for both investors to understand and for managers to implement.

Commenting on the paper, Constantin Sorlescu, INREV’s Professional Standards Manager, said: “This initiative marks a significant step forward in the ongoing discussion about open end fund pricing.  There’s broad agreement within the industry that we need to go further to establish a more structured and common approach to pricing policies. The paper will unlock greater consistency and transparency in industry practice.”

John Cartwright, CEO of AREF, added: “With this study, we aim to further the understanding of different pricing methodologies and how they can impact open end vehicles. It is particularly important to seek some sort of consensus view on this topic when the non-listed real estate industry is becoming increasingly global.”

Following today’s launch event in Munich, INREV and AREF will be holding a second event in London on 12 December to present the consultation paper and study. The consultation will close for responses on 31 January 2018.

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For further information, please contact: 

Hannah Thompson, hannah.thompson@firstlightpr.com, +44 (0) 7875 292187

Justin St Clair-Charles, justin.scc@firstlightpr.com, +44 (0) 7769 644 059

Notes to Editors

About the Open End Fund Pricing Consultation Paper

The Open End Fund Pricing study is a joint initiative between INREV and AREF.  It provides a thorough examination of different pricing methodologies for open end funds with a forensic analysis of the relative merits and drawbacks of the two most commonly used dual pricing models – single pricing and dual pricing.  It also includes a proposed third model, which blends the calculation methodologies of both broad categories.

Business advisory firm, EY, represented by partners Michael Hornsby and Robert White, was commissioned to undertake all the detailed financial modelling in the paper, with support from a dedicated project group made up of INREV and AREF members.


INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe.

INREV has 412 members which include 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere.

The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.

About The Association of Real Estate Funds (AREF)

The Association of Real Estate Funds (AREF) is the voice of the real estate funds industry. Full members have a collective NAV of circa £65bn under management and the majority are benchmarked using the leading AREF/IPD UK Quarterly Property Fund Indices (QPFI). We are recognised by policy makers, regulators, tax authorities and other official organisations as the leading representative of real estate funds and therefore have the ability to influence the way our industry evolves.  Investors and advisers are aware of the high standards our members adhere to, both in transparency and corporate governance, promoting confidence in investing in real estate through member funds.



Open End Fund Pricing  

Last updated on 13 Apr 2021