We would like to remind Fund Members of the following:
- All AREF Fund Members are expected to follow AREF’s Expense Ratio Guidance as required within AREF’s Code of Practice. We have been advised by some investors that not all AREF Fund Members are doing this.
- In 2022, AREF published an updated Expense Ratio Guidance which brought the guidance in line with the Total Global Expense Ratio (TGER) agreed by INREV, ANREV, NCREIF and PREA.
- The main changes within the updated guidance are as follows; full details of the changes can be found in the Expense Ratio Guidance:
- AREF’s terminology regarding the Property Expense Ratio (PER) and Real Estate Expense Ratio (REER) were brought in line with INREV’s terminology.
- Expense ratios should be reported as a proportion of both the relevant reporting NAV and GAV of the fund.
- Where performance fees are applied, the expense ratio should be reported with and without the performance fees.
- A Q&A regarding AREF’s Expense Ratio Guidance and a recording from a webinar held on the updates can be found on AREF’s website.
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