Most of the European real estate industry has not adopted the Global Investment Performance Standards (GIPS), potentially putting the European real estate investment management sector at a disadvantage, according to INREV.
The non-listed funds body’s survey, which looks at the acceptance of the GIPS standards by real estate fund managers in Europe, reveals that only 7% adhere to these standards. The main reason for this is the lack of external pressure from investors as the result of varying national standards across Europe.
The GIPS standard is the preferred standard for multi-asset managers globally, and is routinely used across all other asset classes.
However, most of the INREV survey respondents recognised the positive aspects of investment performance and presentation standards such as GIPS.
“The advantages of a uniform performance standard are pretty obvious. A single standard avoids confusion and allows investors to easily compare different real estate investments at the same time as reaching across to investments in other asset classes,” said Matthias Thomas, INREV CEO.
