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 in its Asia Pacific REITs Fund of Fund scheme effective July 31, 2025, as a precautionary measure to avoid breaching overseas investment limits set by RBI and monitored by SEBI.

Key Points

  • Fresh lumpsum subscriptions suspended from July 31, 2025
  • New systematic registrations including STP into the scheme suspended
  • Switch-ins to the scheme temporarily halted
  • Existing SIPs and STPs registered before effective date will continue
  • Intra-scheme and intra-plan switches remain unaffected
  • Suspension is temporary until headroom increases or limits are enhanced

Regulatory Changes

The suspension follows SEBI guidelines and AMFI communications regarding industry-wide overseas investment limits. Previous suspensions occurred in January 2022 with resumption in July 2022 under specific headroom conditions.

Compliance Requirements

  • Fund house must monitor overseas investment limits to prevent breaches
  • Designated employee investments must be in schemes with equivalent or higher risk ratings
  • Scheme Information Document and Key Information Memorandum to be updated

Important Dates

  • July 31, 2025: Effective date for subscription suspension
  • January 28, 2022: Original SEBI communication on overseas limits
  • July 1, 2022: Previous resumption of subscriptions

Impact Assessment

The suspension affects new investors seeking exposure to Asia Pacific REITs through this fund of fund structure. Existing investors can continue their systematic investments and perform internal switches. The measure is precautionary and temporary, with resumption dependent on regulatory limit changes or increased available headroom.

Impact Justification

Temporary suspension affects specific mutual fund scheme but limited to one product line