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Mahindra Manulife launches APAC-focused REIT fund of funds

The scheme is suitable for investors who are looking to diversify their portfolio and build exposure to real estate markets internationally, the asset management company said.

September 28, 2021 / 03:04 PM IST

Mahindra Manulife Investment Management Private Ltd (MMIMPL) on September 28 launched ‘Mahindra Manulife Asia Pacific REITs FOF’, an open-ended fund of fund scheme investing in Manulife Global Fund – Asia Pacific REIT Fund.

The new fund offer opens on September 28 and closes on October 12, the asset management company said, adding that the scheme will reopen for continuous sale and repurchase from October 22.

"The scheme is suitable for investors who are looking to diversify their portfolio and build exposure to real estate markets internationally," it said.

Real estate investment trusts (REITs) may be one of the key beneficiaries amid the global search-for-yield, with the potential recovery on the back of roll-out of COVID-19 vaccines and reopening of economies, the company added.

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Mahindra Manulife Asia Pacific REITs FOF will invest in Manulife Global Fund - Asia Pacific REIT fund, which allocate funds predominantly in REITs across Asia Pacific countries, it noted.

REITs’ comparatively low correlation with other assets also makes them a portfolio diversifier that can help enhance portfolio returns over a medium to long term period.

The underlying fund i.e., Manulife Global Fund - Asia Pacific REIT Fund that aims to achieve stable income and capital appreciation, will have expected allocation to REITs between 70 to 100 percent, and rest in real estate and property management stocks (non- REITs) and cash/cash equivalents, MMIMPL said in a statement.

"With strong demand for office spaces, residential, warehousing, retail, and hospitality in Asia Pacific regions, investment in our REIT fund of funds scheme offers an opportunity to investors to grow their wealth over a period," MMIMPL MD and CEO Ashutosh Bishnoi said.

REITs also aims to provide "hedge against inflation", Bishnoi added.

The company's CMO, Jatinder Pal Singh, said REITs have unique characteristics that may make them attractive to both income and growth investors.

"The Asia Pacific REIT sector comprises a well-diversified mix of retail, commercial and industrial assets. Apart from traditional retail malls, offices, industrial parks and hotels, Asia Pacific REITs also cover new industries like data center and logistics which we believe could benefit from the recent rise of e-commerce and cloud computing," Singh said.
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