Comments due by January 31, 2019

Question: Should the Reporting Standards requirement for TWR reporting be changed from requiring TWR reporting in all cases to making TWR reporting (including disclosures) available upon request only?

The NCREIF PREA Reporting Standards Board and Council invite closed-end fund investors, investment managers and other interested parties to comment on the amended and reissued exposure draft: Proposed changes to time-weighted return and related disclosure requirements for closed-end funds. The Reporting Standards requirement for closed-end funds to report time-weighted return in all cases was reported by investment managers as an issue for claiming compliance. However, the majority of investors wanted TWR reporting to remain a requirement within the Reporting Standards. A public comment process which proposed a solution was concluded earlier this year and results were mixed.  This amended and reissued exposure draft considered: comments received; recent activities to change NFI-CEVA; the proposed 2020 edition of the Global Investment Performance Standards (GIPS®); and further outreach to propose a more streamlined requirement.  We expect this proposed requirement will effectively balance the reporting objectives for investors and investment managers.

The current strategy aims to expand the adoption of the Reporting Standards by improving the transparency and consistency of reporting across closed-end funds. These efforts are expected to culminate in the reissuance of the Reporting Standards for 2020. With industry comment and the support of our sponsors, NCREIF and PREA, the Board and Council continues its mission to establish, manage and promote reporting standards for the industry to facilitate informed investment decision making.

The comment period for the above referenced exposure draft concludes on January 31, 2019.