Background to guidance
Following a consultation with all AREF members in early 2022, AREF brought its guidance on Total Expense ratios in line with the Total Global Expense Ratio (TGER) agreed by INREV, ANREV, NCREIF and PREA. In addition, the AREF guidance provides two further requirements for AREF Fund Members. Members should report the expense ratios as a proportion of both NAV and GAV and, where performance fees are applied, the expense ratio should be reported with and without the performance fees.
The February 2026 update, reviewed by the Corporate Governance Committee and a member of the original working group, upholds the original recommendations and provides additional clarification.
The Expense Ratios Guidelines aim to provide managers and investors with:
- background information into the Expense Ratios Guidelines;
- guidance in setting and managing a vehicle’s expense ratio; and
- the facility to directly compare total expense ratios (TERs) across real estate vehicles.
In addition, AREF’s Expense Ratio’s Q&A document provides additional information to AREF members on reporting requirements.