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Introducing the first global expense ratio

21 March 2018, Amsterdam – INREV, ANREV, 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.

Barbara Flusk, Citco Fund Services, Co-chair Global Fee and Expense Metrics task force: “TGER provides investors with the ability to compare fee and expense burden of funds they invest in across the globe.  It provides transparency into costs associated with investing and operating in different regions.”

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.

Renaud Breyer, EY, Co-chair Global Fee and Expense Metrics task force: “I am very excited about this project as it is a significant step ahead in our journey towards converged best practices for the real estate investment industry. We look forward to receiving the feedback of industry professionals on these proposed reporting measures.”

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.

John Caruso, TH Real Estate, Co-chair Global Standards Steering Committee: “TGER represents a major step forward towards the overall goal to level the playing field for global real estate investors.”

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For further information please contact:
Amelie Delaunay, ANREV 
Constantin Sorlescu, INREV 
Marybeth Kronenwetter, NCREIF PREA Reporting Standards