Guidelines

How should fee and expense metrics be determined in case a  fund manager wishes to disclose quarterly ratios?

INREV Guidelines require the computation of the fee and expense metrics on an annual basis. Fund managers may provide investors with quarterly ratios. INREV Guidelines do not propose any methodology to compute quarterly ratios.

Fund managers can indeed disclose quarterly fee and expense metrics to investors. The methodology should be consistent with the methodology used for the fee and expense metrics in the annual reports, particularly on the cost classification and computation methodology.

The quarterly metrics should be presented on a rolling four quarter basis.

The fund manager should be transparent in its reporting to investors and explain the methodology and assumptions used.

In case a fund manager discloses quarterly ratios, the fund manager is still required to disclose the annual metrics in the annual reporting to comply with requirements included in the fee and expense metrics.