Seeking Clarity: Is the Earlier Complexity of Fee Structures for Non-Listed Funds Giving Way to All-Round Transparency?
1 During the past four years at KTI Finland, I have had the privilege of being involved in the annual INREV management fees and terms studies; these examine the fee structures and levels found in European non-listed property funds. Although much has changed between 2007 and 2010, many of the issues that were relevant then remain so today. From the fees perspective, the non-listed real estate fund market in Europe remains diverse in its practices, both in the number and nature of the fees charged and in the bases on which those fees are charged — making comparisons between investment vehicles challenging at best. However, 2007 also saw the development of the INREV Fee Metrics Guidelines, including the Total Expense Ratio (TER) that is aimed at capturing annual operating costs borne by