The vast majority of the European real estate industry has failed to adopt a set of standardised best practice guidelines, according to industry body Inrev.
The vast majority of the European real estate industry has failed to adopt a set of standardised best practice guidelines, according to industry body Inrev.
The Global Investment Performance Standards (GIPS) framework provides a set of standardized ethical principles that provide investment firms across all sectors with guidance on how to calculate and report their investment results to prospective clients.
The Inrev GIPS Report, which examined the adoption of GIPS among European real estate fund managers, found that only 7% adhered to the set of standards.
The main reason for the low take-up, Inrev said, was a lack of external pressure from investors as the result of varying national standards across Europe.
The report concludes that ‘the low take-up could be putting the European real estate investment management sector at a disadvantage’ but acknowledged that most of the 69 real estate fund managers questioned broadly welcomed the standards.
