INREV, the European Association for Investors in Non-listed Real Estate Vehicles, has published a white paper on the Standard Data Delivery Sheet (SDDS) a key initiative to improve the efficiency and transparency of information flow between investors and fund managers.
The publication of the white paper is a key milestone in an important project, which has been led by an INREV working group. It marks the beginning of a three-month consultation phase, during which INREV is seeking feedback from its members to further refine the existing proposed SDDS.
"The exciting thing about the SDDS is that it will contribute strongly to making information exchange more uniform. Within APG, we see this as a major step forward as an industry wide initiative," said Roland Mangelmans Senior Portfolio Manager at APG.
The SDDS has been developed to provide the industry with a standard tool for the collection and sharing of key fund-level data that is required by all investors and can be largely applied to all funds regardless of size, type, geography or sector. It is based on a similar idea originally developed for internal use by Dutch pension fund service provider, PGGM.
The SDDS should reduce the level of bespoke reporting on specific funds that is often requested of fund managers by investors. However, it has not been designed to replace existing quarterly reporting, which remains a vital source of management information for investors.
"I think the data sheet will be positively received by the industry, because once it's incorporated into IT platforms it will save time and effort especially for fund managers," added Mangelmans.
INREV's working group has developed the current version of the SDDS on the back of input from a broad range of members, including a substantial number of interviews with investors of different sizes and varying levels of capital commitment to non-listed real estate vehicles.
In its latest form, the proposed SDDS already incorporates around 80% of the questions investors regularly need fund managers to answer about the funds in which they are invested.
During the consultation period, INREV will gather broader industry input, notably through a series of roundtable meetings in May and June. The outcome of these discussions, plus other written feedback, will test the robustness of the current draft and shape the final version of the SDDS that is scheduled for launch this autumn.
"This is the first time the industry has attempted to draw together a standard for this type of fund reporting that is cohesive and consistent. With it we have a great opportunity to significantly change things for the better for the whole non-listed sector," concluded Lonneke Löwik, Director Professional Standards, INREV.
Source: Firstlight PR