When fees are amortised over a certain period of time in the NAV used for performance measure computation (e.g. acquisition fees amortised over five years in the INREV NAV, debt arrangement fees amortised over the duration of the loan in the INREV NAV), how should these be taken into account in the vehicle level returns gross of fees?
The management fees reversed in the formula presented in the module to compute the total vehicle level return gross of fees should be the amortised portion of these fees during the period under consideration.
When performance fees take the form of carried interest accrued during the period, are such incentives taken into account into the fees reversed during the period?
Yes. All fees impacting the income statement of a vehicle in accordance with IFRS should be taken into account in the total return computations (gross and net of fees).
What is the treatment of fee rebates when calculating performance measures?
Fee reductions, fee waivers, and transaction offsets recognised in the financial statements of the vehicle, should be included in the return computation and in the gross of fees performance measures.
Fee reductions, fee waivers, and transaction offsets not recognised in the financial statements of the vehicle are excluded from the performance measures and may be disclosed if permitted.