Example of Statement of Level of Adoption

Example - Statement of level of adoption of INREV Guidelines

Management has assessed the degree to which the best practices of ANREV’s corporate governance, valuation and liquidity frameworks have been adopted and followed by the vehicle. In addition, Management has assessed the level of compliance with ANREV’s reporting, NAV and fee and expense metrics modules. The results of such self-assessment are summarised below:

Module 

Guidelines 

 

Level of Adoption or Compliance

1

Corporate governance

 

Although not described in the fund documentation, the INREV corporate governance module has been considered by the manager. The intended framework partially complies with the INREV corporate governance best practices. All best practices have been adopted except for the fact that investors are not able to terminate the contract of the manager without cause. The vehicle formally assessed at the end of the financial year that it is currently following its intended corporate governance framework.

2

Reporting

 

Although not detailed in the fund documentation, the INREV reporting module has been considered by the manager. The manager has complied with all the requirements of the INREV reporting module.

3

Property valuation

 

As described in the fund documentation, the INREV valuation framework module has been considered. The manager has defined a valuation framework which fully adopts INREV valuation best practices. The level of current compliance with the defined valuation framework was last formally assessed during the financial year when it was determined that the vehicle was in compliance with all elements of the intended valuation framework.

4

INREV NAV

 

The manager has complied with all the requirements of the INREV NAV module, except for the fact that assumptions used to determine the fair value of deferred taxes are not fully disclosed for confidentiality reasons.

5

Fee and expense metrics

 

The manager has not fully complied with the requirements and recommendations of the INREV fee and expense metrics module. The manager does not compute and disclose the forward-looking REER at vehicle launch. All other requirements and recommendations have been complied with.

6

Liquidity

 

As described in the fund documentation, the INREV liquidity framework module has been considered. The manager has defined a liquidity framework which fully adopts INREV liquidity best practices. The manager formally assessed in at the end of the financial year that it currently follows the defined liquidity framework.

7

INREV data delivery

 

The manager is in compliance with the data delivery module.