Mahindra Manulife Asia Pacific Reits FOF NFO

 

The Scheme is a Fund of Funds scheme (Overseas) which will invest into an Underlying Fund namely ‘Manulife Global Fund – Asia Pacific REIT Fund

Introduction to REITs

• REITs (Real Estate Investment Trust) are companies that own or finance incomeproducing real estate across a range of property sectors – such as residential, industrial, retail, mortgage, hotels etc. It is managed by a board of directors or trustees. 
•  Most REITs trade on major stock exchanges, and hence can offer liquidity
•  REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). 
• The stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to own, manage or finance a property. 
•  Income generated on the lease and rent is paid out in the form of dividends. REITs must distribute most of its cash flows as dividen

International REITs are a great way to diversify a portfolio and build exposure to real estate markets worldwide.

Why Manulife Global Fund – Asia Pacific REIT Fund?

• 90+ years investment experience of property investment/asset/ property management1
• 185 professionals based in Asia (ex Japan)

Why Asia Pacific REITs?

 Strong rental income potential • Professional management • Organized sector • Strong Markets like Singapore, Hong Kong, Australia

 Why This Fund?

• Aims to achieve capital appreciation
• Aims to provide Inflation Hedge
• Diversification in real estate with very low investment
• Annualised dividend yield 4.81%3
• Asset under management USD 576.58 million

Why international REIT?

International REITs are a great way to diversify a portfolio and build exposure to real estate markets worldwide. Ownership of REITs over time has historically increased investors' total return and/or lowered the overall risk in both equity and fixed income portfolios# REITs historically# have delivered competitive total returns, based on high, steady rental income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them a portfolio diversifier that can help reduce overall portfolio risk and increase returns.

Why Asia Pacific REIT Now?

To capture the potential recoveryon the back of roll-out of COVID-19 vaccines and reopening of economies REITs as one of the key beneficiaries amid the global search-for-yield Low interest rates can act as the key tailwind as seen in previous rate cut cycle.

The Role of REITs in a Portfolio Potential to increase returns or reduce risk

• There may be a place for REITs in a portfolio
• Real Estate Investment Trusts (REITs) have unique characteristics that may make them attractive to both income and growth investors. 
• REITs trade like stocks and can fluctuate in price, but they also pay out a large part of their income in the form of rentals. 
• REITs may be used to help provide income in conservative portfolios or long-term growth in more aggressive portfolios. 
• Some portion of a portfolio may be appropriately allocated to REITs for a broad range of investor types
• Reconstruct your portfolio to include REITs 
• Equity, bonds, cash, and REITs generally do not react identically to the same economic or market stimuli, combining these assets may produce a more appealing risk-and-return trade-off.
• This makes REITs a potentially good candidate for investors looking to build a diversified portfolio. 
• Whether you are an investor seeking long-term growth or income, you may want to consider finding a place for REITs in your portfolio

Scheme Specifics

• An open ended fund of fund scheme investing in Manulife Global Fund – Asia Pacific REIT Fund
• NFO Open date: 28th Sep, 2021 NFO Close date: 12th Oct, 2021
• Scheme reopens for continuous sale and repurchase from: 22nd October 2021
• Investment Amount: 
• Minimum Application Amount: Rs. 5,000 and in multiples of Re. 1/- thereafter Minimum
• Additional Purchase Amount: Rs. 1,000 and in multiples of Re. 1/- thereafter Minimum SIP
• Amount: Rs 1000 (Monthly and Daily SIP) and Rs 1500 (Quarterly SIP)