Download Guidance on AREF's Open End Fund Pricing
Background
The Open End Fund Pricing Project was an industry-wide project conducted in collaboration with INREV.
The first phase was completed in July 2018. Its key purpose was to promote a better understanding of the effectiveness of the two principal types of pricing mechanisms commonly in use, through quantitative analysis, and whether their methods of calculation result in different outcomes for investors. It concluded that both commonly used pricing models, (classic dual and Cap & Am), are effective in minimising investor dilution but did not produce identical outcomes for investors.
In 2020 AREF and INREV launched the Open End Fund Pricing Consultation Paper, representing the second phase of the project, offering insights into the complexities around the pricing of institutional open end real estate funds. The paper and supporting materials can be downloaded below.
The recommendations in the Consultation regarding pricing mechanisms were implemented as guidelines in May 2021, which can be downloaded below. On 6 May 2021 AREF held a members discussion on the guidelines, a link to this can be found under Guidelines below.
Further recommendations in the Consultation, regarding governance matters, were considered by the AREF Corporate Governance Committee and added to the Guidelines in September 2022. These are the latest Guidelines and can be downloaded below.
Documents to Download:
Guidelines
Open End Fund Pricing Guidelines September 2022
Open End Fund Pricing Guidelines May 2021
Event summary and video - May 2021
Phase 2 Consultation
Phase 2 Consultation Paper - May 2020
Phase 2 Supporting Document - May 2020
Phase 2 Consultation Feedback Form - May 2020
Phase 1 Consultation
Snapshot of Phase 1 Conclusions - July 2018
Read Event Summary from 12 December 2016.
Initial Consultation
For further information, please email us: info@aref.org.uk.