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What are the main differences between TGER and TER? Do I need to convert previously reported TERs?
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FEM-Q06 —
TGER represents a natural progression from the previously reported INREV TER and includes several additional fees. A mapping of TER to TGER is summarised below, including its main components.
Conversion of previously reported TERs is not necessarily. The numerator of TGER bears much similarity to the TER. It is important to note however that historical comparisons depend on the life cycle and activity of the vehicle and should be treated with caution.
| Allocation of main fees and costs from TER to TGER | Workings |
| Asset and fund management fees | |
| Performance fees | |
| Other fees earned by manager | |
| Total vehicle fees for TER | A |
| Audit, valuation, custodian, transfer agent and other admin costs | |
| Vehicle formation costs and dead deal costs | |
| Bank charges and other professional service costs | |
| Total vehicle costs for TER | B |
| Adjustments for TGER | |
| Property acquisition and disposition fees | |
| Project management fees | |
| Debt arrangement fees and costs | |
| Fee and costs adjustments for TGER | C |
| Vehicle taxes (optional, for after-tax TGER calculation) | |
| Vehicle tax adjustments for TGER | D |
| Time-weighted average GAV | E |
| Time-weighted average NAV | F |
| Required ratio: TGER | (A+B+C)/E |
| Recommended ratio: NAV TGER | (A+B+C)/F |
| Optional ratio: (NAV)/TGER after tax | (A+B+C+D)/E or(F) |
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