Funds of funds that focus on the unlisted real estate sector have considerable variation in the fees that are charged, according to a study of fee structures and fee levels by INREV, the European Association for Investors in Non-Listed Real Estate Vehicles. INREV surveyed 34 non-listed real estate funds of funds, representing about 80 percent of the funds of funds in the INREV study universe.

The INREV Fund of Funds Fee Study found that close to half of funds of funds use net asset value as the basis of their annual management fees, with an average of 0.4 percent. Management fees could also be based on commitments to underlying funds, commitments to the fund of funds or drawn commitments. All of the funds in the study charged an annual management fee.

The fee level varied based on the vehicle structure and the year the vehicle was launched. Open-end funds of funds launched prior to 2005 had the lowest