INREV: Funds with multi-country and/or multi-sector strategies show highest total global expense ratios

The average total global expense ratio (TGER) for European nonlisted real estate funds based on gross asset value was 0.95 percent, according to the INREV Management Fees & Terms Study 2022.

However, there is considerable variation based on key fund characteristics. Funds with a multi-country and/or multi-sector strategy command higher TGERs than those focused on a single country or sector. INREV suggests the increased operational costs associated with managing assets in different jurisdictions and across sectors account for a large part of the differential.

Core funds, many with a single-country and/or single-sector focus, have a lower average TGER of 0.81 percent (based on GAV) compared to the European ODCE funds, a group of core, open-end pan-European diversified funds with an average equivalent of 0.97 percent. However, it is worth highlighting that the European ODCE funds have notably lower TGER characteristics than an average multi-country/multi-sect