ODCE funds show a high level of uniformity and consistency in fees and costs

INREV is pleased that all 16 ODCE funds, as of the end of 2023, have participated in this year’s ODCE Management and Fees Terms publication. This publication is a subset of the broader Management Fees and Terms Study. The average reported Total Global Expense Ratio (TGER) for ODCE funds for 2023 was 1.00% based on GAV and 1.37% based on NAV.

Key highlights include:

• ODCE funds exhibit notably lower TGERs than the average for other Multi country – Multi sector funds where the average TGER is 1.49% on GAV and 3.71% on NAV.
• The average 2023 management fees remained stable while vehicle costs increased year-on-year, most likely due to the negative capital growth in 2023.
• The REER increased by 3 bps, from 0.89% in 2022 to 0.92% in 2023, which is due to the relatively high inflation in 2023, as well as lower capital values (and GAVs).
• Property acquisition costs contributed approximately one-third of REER and had the largest dispersion.

Download the report and Excel below.