The Open End Fund Pricing Project is 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. Following the consultation period, the recommendations in the Consultation regarding pricing mechanisms have been implemented as guidelines, which can be downloaded below. Further recommendations in the Consultation regarding governance matters will be considered by the AREF Corporate Governance Committee.
Documents to Download:
Phase 2 Consultation
Phase 1 Consultation
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