Description

Mahindra Manulife suspends fresh subscriptions in Asia Pacific REITs Fund of Fund scheme to avoid breaching overseas investment limits.

Summary

Mahindra Manulife Investment Management has temporarily suspended fresh subscriptions, systematic registrations, and switch-ins for the Asia Pacific REITs Fund of Fund (FOF) scheme effective July 31, 2025. This precautionary measure aims to prevent breach of industry-wide overseas investment limits as mandated by RBI and monitored by SEBI.

Key Points

  • Temporary suspension of lumpsum subscriptions, fresh SIPs, STPs, and switch-ins from July 31, 2025
  • Suspension applies to Mahindra Manulife Asia Pacific REITs FOF investing in Manulife Global Fund
  • Existing registered SIPs/STPs continue unaffected
  • Intra-scheme and intra-plan switches remain permitted
  • Previous suspension occurred in January 2022, resumed in July 2022 with headroom limits
  • Current suspension is precautionary to avoid overseas investment limit breach

Regulatory Changes

  • SEBI email dated January 28, 2022 and AMFI communication January 30, 2022 established overseas limit framework
  • SEBI letter dated June 17, 2022 allowed resumption with headroom restrictions
  • Investments limited to headroom available as of February 1, 2022 at mutual fund level
  • Designated employee investments must be in schemes with equivalent or higher risk-o-meter rating

Compliance Requirements

  • AMC must monitor overseas investment limits to prevent regulatory breach
  • SID and KIM documents to be updated with suspension details
  • Addendum forms integral part of scheme documents
  • Existing systematic plans registered before effective date continue processing
  • Switch-out transactions processed before July 31, 2025 may result in unit allotment

Important Dates

  • July 31, 2025: Effective date for suspension of fresh subscriptions
  • January 28, 2022: Initial SEBI communication on overseas limits
  • July 1, 2022: Previous resumption date with headroom restrictions
  • February 1, 2022: Reference date for overseas investment limit calculation

Impact Assessment

The suspension primarily affects new investors seeking exposure to Asia Pacific REITs through this FOF scheme. Existing investors with systematic plans remain unaffected. The measure demonstrates proactive compliance management but may limit investor access to this specific investment avenue. The temporary nature suggests resumption possibility upon regulatory limit enhancement or increased available headroom.

Impact Justification

Affects specific mutual fund scheme subscribers but limited to one AMC's FOF product