GLOBAL - Fund managers and investors have been invited to consider plans to combine all eight industry guidelines established by the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) into one integrated best practice document.

The proposals were detailed in a white paper launched at the association's second annual conference for CFOs and COOs, held last week in Lisbon.

The paper does not contain new content but aims to bring together the guidelines on topics such as corporate governance, fee metrics and a standard net asset value (NAV) that INREV has brought about since its inception five years ago.

INREV chief executive Lisette van Doorn argued demonstrating an adherence to INREV guidelines can have "marketing value" for fund managers raising capital.

Research conducted by the association supports the notion that investors are keen on best practice compliance, as 80% of investors surveyed said they preferred to know which fund managers have adopted the guidelines.

Yet, while there was an apparent consensus in Lisbon among INREV's fund management membership that the guidelines are a positive development and are on the whole worthwhile following, it is not always practical to comply fully or in every respect.

During a "break away session", where delegates were encouraged to discuss issues in small groups, a number of concerns were voiced about "complying 100%".

The CFO of one fund management firm said his company had established with its investors an agreed level of compliance that they were happy with and thus was under no pressure to fully adhere to all principles.

An adviser on the same table pointed out some managers had first to ensure they were complying with IFRS; adhering to the INREV NAV guidelines was a secondary concern.

But van Doorn stressed at a separate briefing that one of the objectives of the white paper and consultation was to define more clearly what actually constituted "compliance", both in terms of to what extent the guidelines are followed and which specific areas.

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