Description

Mahindra Manulife temporarily suspends fresh subscriptions in Asia Pacific REITs FOF from July 31, 2025 to avoid breaching overseas investment limits.

Summary

Mahindra Manulife Investment Management has announced the temporary suspension of fresh subscriptions in the Mahindra Manulife Asia Pacific REITs Fund of Fund (FOF) effective July 31, 2025. This precautionary measure aims to prevent breaching industry-wide overseas investment limits as regulated by RBI and monitored by SEBI.

Key Points

  • Lumpsum subscriptions, fresh systematic registrations (including STP), and switch-ins are suspended from July 31, 2025
  • Existing SIP/STP registrations prior to effective date will continue unaffected
  • Intra-scheme and intra-plan switches remain permitted
  • Switch-out/STP transactions processed before July 31, 2025 may still receive unit allotment
  • Suspension is temporary until headroom increases or regulatory limits are enhanced

Regulatory Changes

This follows SEBI’s guidance on overseas investment limits, with previous suspensions in January 2022 and resumption in July 2022. The current suspension implements precautionary measures to maintain compliance with RBI’s overseas investment regulations.

Compliance Requirements

  • AMC must monitor overseas investment limits at mutual fund level
  • Designated employees’ incremental investments must be in schemes with equivalent or higher risk-o-meter ratings
  • SID and KIM documents will be updated to reflect these changes

Important Dates

  • July 30, 2025: Addendum announcement date
  • July 31, 2025: Effective date for subscription suspension
  • February 1, 2022: Reference date for available headroom calculation

Impact Assessment

The suspension affects new investors wanting exposure to Asia Pacific REITs through this FOF scheme but maintains existing investor interests. Limited market impact as it’s specific to one AMC’s scheme, though it reflects broader industry challenges with overseas investment limit management.

Impact Justification

Affects specific mutual fund scheme but limited to one AMC and prevents regulatory breach