Expense Ratios
After consulting with AREF members, AREF's CTI & Expense Ratio Working Group revised AREF's Guidance on Expense Ratios in April 2022 to bring it in line with the Total Global Expense Ratio (TGER) agreed by INREV, ANREV, NCREIF and PREA.
Details about the updated guidance, along with a Q&A and a link to a webinar explaining the changes to the guidance, can be found here.
Cost Transparency Initiative (CTI)
The AREF CTI & Expense Ratio Working Group provided input, via the Technical Expert Panel, to the Cost Transparency Initiative (CTI) which is an industry standard for institutional investment cost data. The CTI updated their website for the work that the Working Group has done on closed ended fund reporting. What was the CTI Private Equity Sub-template is now the Private Markets Sub-template. This is a cost disclosure template to be completed by asset managers of closed-ended private equity, private debt and real estate (property) funds. It can be used for closed-ended real estate funds and real estate debt funds, which was the objective of the working group in asking for the change. The template now includes property level cost disclosures (the same as in the standard template) and can be found here.
A CTI Q&A can be found on the AREF website here.
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