Description

Mahindra Manulife suspends fresh subscriptions in Asia Pacific REITs Fund of Fund to avoid breach of overseas investment limits effective July 31, 2025.

Summary

Mahindra Manulife Investment Management has temporarily suspended fresh subscriptions in the Asia Pacific REITs Fund of Fund (FOF) effective July 31, 2025, as a precautionary measure to avoid breaching RBI’s overseas investment limits. The suspension affects lumpsum subscriptions, fresh systematic registrations including STPs, and switch-ins.

Key Points

  • Temporary suspension of fresh subscriptions in Mahindra Manulife Asia Pacific REITs FOF
  • Effective date: July 31, 2025
  • Measure taken to avoid breach of overseas investment limits set by RBI
  • Previous suspension occurred in January 2022, resumed in July 2022
  • Existing SIPs/STPs registered before effective date will continue
  • Intra-scheme and intra-plan switches remain unaffected

Regulatory Changes

The suspension is implemented pursuant to:

  • SEBI’s email dated January 28, 2022
  • AMFI communication dated January 30, 2022
  • SEBI letter reference no. SEBI/HO/OW/IMD-ll/DOF3/P/25095/2022 dated June 17, 2022
  • Compliance with RBI overseas investment limits

Compliance Requirements

  • AMC must ensure no breach of industry-wide overseas investment limits
  • Incremental investments by designated employees must be in schemes with equivalent or higher risk-o-meter ratings
  • Necessary changes to be made in Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • Addendum becomes integral part of scheme documents

Important Dates

  • July 31, 2025: Effective date of suspension
  • February 1, 2022: Reference date for headroom calculation
  • January 2022: Previous suspension period
  • July 1, 2022: Previous resumption date

Impact Assessment

The suspension affects new investors seeking exposure to Asia Pacific REITs through this FOF. Existing investors with registered SIPs/STPs can continue their investments. The temporary nature and specific scope limit broader market impact, though it restricts access to a specialized investment avenue for international real estate exposure.

Impact Justification

Affects specific fund investors but limited to one scheme with temporary nature