Guidelines

add +
PV-P02 Act in the best interest of investors and consider other stakeholders

+ PV05 —

The investment manager should design a valuation process that is aligned with the interests of investors and other stakeholders and takes account of the nature and style of the vehicle concerned.

+ PV06 —

The investment manager together with the governing body of the vehicle should ensure that the valuation process oversight performed by the investment manager is unbiased.

This oversight process should be independent of any potential conflicts of interest such as those arising from management or performance fee arrangements and from other services provided by related parties and associates of the external valuer and its organisation, such as brokerage.

+ PV07 —

The investment manager should ensure that the external valuer has a clear understanding of the context of their work and the purpose of the valuation.

+ PV08 —

The investment manager should ensure that the compensation of the external valuer fairly reflects the services provided and should not be directly linked to the outcome of the valuation.

+ PV09 —

The investment manager should ensure that the appointed external valuer is independent.

The external valuers involved in the valuation process should identify and disclose any threats to their independence or potential conflicts of interest and either manage or avoid them. See also PV11 for appropriate professional qualification requirements that set relevant rules of conduct and ethical standards.

+ PV10 —

In certain exceptional circumstances, the investment manager, after careful consideration by their valuation oversight function, may decide to adjust the values as determined by the external valuer to reflect their best estimates of market value in specific circumstances such as distressed situations, liquidations and wind-ups reflecting a non-going concern basis.

Such decisions should always be taken in the best interests of investors and other stakeholders and be subject to full scrutiny by the governing body of the vehicle.

Custom guidelines: Use the + icons to the right to add sections to your custom Guidelines document

Custom guidelines

Use the + icons to the right to add sections to your custom Guideline document.
Selected items:
0 chapters
0 elements

× Guidelines
- × INREV Guidelines Introduction
  - × Introduction to INREV Guidelines
  - × Adoption and Compliance Framework
    - × Best Practice Modules
    - × Compliance Framework
  - × Revision and Change Procedure
  - × Tools and Examples
- × Governance
  - × Introduction Governance
  - × Principles
  - × Guidelines
    - × G-P01 Act lawfully and ethically
    - × G-P02 Act in the best interests of investors and consider other stakeholders
    - × G-P03 Act with skill, care and diligence
    - × G-P04 Design and operate an adequate oversight and control framework
    - × G-P05 Be transparent while respecting confidentiality considerations
    - × G-P06 Be accountable
    - × G-P07 Be sustainable: Evaluate and manage sustainability impacts
    - × Further guidance and interpretation
  - × Tools and examples
  - × Q&A
    - × Compliance of AIFM
    - × Confidentiality
- × Reporting
  - × Introduction Reporting
  - × Principles
  - × Guidelines
    - × General vehicle information, organisation, and governance
    - × Vehicle performance and investors position
    - × Manager's report
    - × Property report
    - × Risk management
    - × Environmental, social, and governance (ESG)
  - × Tools and Examples
  - × Q&A
    - × Annual and interim reporting requirements
    - × IFRS 16 requirements
    - × Acquisition costs in case of merger of funds
    - × Performance fee for INREV NAV calculation
  - × Update
- × Property Valuation
  - × Introduction Property Valuation
  - × Principles
  - × Guidelines
    - × PV-P01 Act lawfully and ethically
    - × PV-P02 Act in the best interest of investors and consider other stakeholders
    - × PV-P03 Act with skill, care and diligence
    - × PV-P04 Design and operate an adequate oversight and control framework
    - × PV-P05 Be transparent while respecting confidentiality considerations
    - × PV-P06 Be accountable
    - × PV-P07 Be sustainable: Evaluate and manage sustainability impacts
  - × Tools and examples
- × Performance Measurement
  - × Introduction Performance Measurement
  - × Principles
  - × Guidelines
    - × 3.1 Vehicle Level Performance Measures
    - × 3.2 Further Guidance and Interpretation
    - × 3.3 Asset Level Performance Measures
  - × Tools and Examples
  - × Q&A
  - × Update
- × INREV NAV
  - × Introduction INREV NAV
  - × Principles
  - × Guidelines
    - × Fund documentation for INREV NAV framework
    - × INREV NAV Adjustments
  - × Tools and examples
  - × Q&A
    - × Capitalisation and amortisation of set-up costs and acquisition expenses
    - × Is it required to start with an IFRS NAV to calculate the INREV NAV?
    - × Materiality assessment of INREV NAV adjustments
    - × Materiality in the Context of an Audit
    - × INREV NAV Fair Value of DTL of properties
    - × Calculation of adjustment in respect of deferred tax liability
    - × Calculation of adjustment in respect of transfer taxes
    - × Investment in an associate/joint venture
    - × Portfolio premium/discount
    - × Held-to-maturity derivatives
    - × Treatment of Debt arrangement fees and costs
    - × Forward purchase recognition
    - × Fair value of debt
  - × Update
- × Fee and Expense Metrics
  - × Introduction Fee and Expense Metrics
  - × Principles
  - × Guidelines
    - × Vehicle documentation for fee and expense metrics framework
    - × Fee and expense metric requirements
    - × Fee and expense metrics calculation
    - × Fee and expense metrics disclosures
  - × Tools and examples
  - × Q&A
    - × How should the INREV GAV be calculated for the Total Global Expense Ratio (TGER) and the Real Estate Expense ratio (REER)?
    - × How should staff costs be allocated to the TGER and the REER?
    - × Determination and disclosure of quarterly ratios
    - × How do you determine if a service is in lieu of or in addition to third party costs?
    - × Can TGER including tax be calculated and presented to investors?
    - × What are the main differences between TGER and TER? Do I need to convert previously reported TERs?
    - × Should TGER be compared against expense metrics of listed structures / public market vehicles?
    - × How should Asset Management fees be allocated to TGER?
    - × Should TGER be presented for financial reporting periods ending on or after 31 December 2020? Can the INREV TER still be disclosed?
    - × Treatment of Debt arrangement fees and costs
- × Liquidity
  - × Introduction Liquidity
  - × Principles
  - × Guidelines
    - × Fund documentation requirements for liquidity framework
    - × Issues of vehicle equity (or debt investments)
    - × Redemptions of equity (or debt investments)
    - × Secondary market transfers of equity (or debt investments)
    - × Vehicle winding up
    - × Vehicle life extensions
    - × Reporting requirements
    - × Consultation processes for vehicle wind up or extension
  - × Tools and examples
- × INREV Data Delivery
  - × Introduction
  - × Principles
  - × Guidelines
- × Code of Tax Conduct
  - × Introduction to the Code of Tax Conduct
  - × Presentation of the Guiding Principles
    - × Compliance with laws, regulations and tax obligations
    - × Co-operation with Public Authorities
    - × Internal Governance
    - × Approach to tax and business rationale
    - × Transparency and disclosure
  - × Glossary & references
- × Sustainability
  - × Introduction to Sustainability
  - × Principles
  - × Guidelines
    - × G-P01 Act lawfully and ethically
    - × G-P02 Act in the best interests of investors and consider other stakeholders
    - × G-P03 Act with skill, care and diligence
    - × G-P04 Design and operate an adequate oversight and control framework
    - × G-P05 Be transparent while respecting confidentiality considerations
    - × G-P06 Be accountable
  - × Tools and Examples

×PDF Preview

× Definitions

A full list with all the definitions can be downloaded under publications.