More than 90% of investors in the non-listed property funds market support the implementation of the INREV Guidelines, which have been published in a new format this week. In its latest members' survey, 92% of investors looked to fund managers to adhere to the INREV Guidelines, which bring together eight individual industry guidelines that have been released by INREV since early 2006. These have been restructured into one integrated document based on the lifecycle of a fund; a key innovation in improving the usability of the guidelines.
More than 90% of investors in the non-listed property funds market support the implementation of the INREV Guidelines, which have been published in a new format this week. In its latest members' survey, 92% of investors looked to fund managers to adhere to the INREV Guidelines, which bring together eight individual industry guidelines that have been released by INREV since early 2006. These have been restructured into one integrated document based on the lifecycle of a fund; a key innovation in improving the usability of the guidelines.
'Ongoing feedback from members has clearly shown that implementation and compliance with the INREV Guidelines is increasingly becoming part of discussions between investors and fund managers,' the organisation said in a press release. The INREV members' survey shows that 77% of investors and 76% of fund managers were incorporating the guidelines into their real estate fund processes.
The INREV Guidelines also provide a compliance framework, which enables fund managers to adopt the guidelines for their funds in a structured approach, The framework consists of eight separate modules, which can be applied independently: Launch Documentation; Corporate Governance; Property Valuations; INREV NAV; Annual Report; Fee Metrics; Secondary Market Code and INREV Data delivery.
Michael Hornsby, partner and real estate group leader at Ernst & Young Luxembourg and leader of the INREV Integrated Guidelines project group said: 'INREV's goal was to enable fund managers to easily and practically implement the existing guidelines and ensure that investors obtain consistent, understandable, easily, accessible and reliable information.'
The level of implementation by fund managers of the INREV Guidelines may depend on several factors, including style and size of the fund. INREV recommends that fund managers and investors discuss and agree on the required level of compliance with the various modules during the launch negotiation process.
As part of the INREV Guidelines release, INREV has also launched a web-based self-assessment tool, which allows fund managers to check their compliance with the reporting module from the guidelines.
