PGIM India Mutual Fund launches India's First Global Real Estate Securities Fund
PGIM India Mutual Fund
'PGIM India Global Select Real Estate Securities Fund of Fund'
NFO opens on November 15, 2021 and closes on November 29, 2021
Benefits offered:
• Unique opportunities, not available in India
• Potential inflation hedge
• Access to small ticket size
• Dual source of alpha
• Diversification
PGIM India Mutual Fund announced the launch of PGIM India Global Select Real Estate Securities Fund of Fund, an open-ended equity fund of fund scheme investing in PGIM Global Select Real Estate Securities Fund. The fund is India's first Global Real Estate Securities Fund. The NFO will open for subscription on November 15, 2021 and will close on November 29, 2021. The Benchmark Index of the fund is FTSE EPRA NAREIT Developed Index. The primary investment objective of the scheme is to generate long- term capital appreciation from investing in the units of PGIM Global Select Real Estate Securities Fund, which primarily invests in REITs and equity related securities of real estate companies located throughout the world.
Globally, real estate as an asset class and as an investment, has undergone a shift during the pandemic. As economies across the world reopen, properties such as hotels, assisted living facilities and restaurants will benefit from pent-up demand. The pandemic has accelerated trends already underway such as cloud computing, remote schooling, remote working, e-commerce, last mile retail etc., thus expanding growth opportunities for real estate.
"Today's investment opportunities span a wide range of categories, including capitalizing on favourable occupier momentum linked to accelerated changes in how real estate is used, investing in assets that require some short-term repositioning and finding value in parts of the market that have undergone a long-term correction. As concerns around new variants of COVID ease, allowing workplaces and service- oriented industries to reopen more fully, occupier sentiment is expected to return quickly supporting a rebound in real estate space demand," said Rick Romano, MD, PGIM Real Estate and Head of Global Real Estate Securities Business.
"It is our endeavor to bring relevant and timely investment ideas to Indian investors and advisors. We are therefore proud to present our parent PGIM's global expertise in this asset class. It's various sub-themes like grade A commercial, self-storage, logistics, last mile retail, senior living, cold storage etc. are either not available in India or not available at scale as investible securities compared to global markets. With interest rates and inflation where they are today, this strategy will be an important addition to build resilience in client portfolios for times ahead, said Ajit Menon, CEO, PGIM India Mutual Fund.
PGIM India PGIM India Global Select Real Estate Securities Fund of Fund Features:
Asset Allocation:
| Instruments | Indicative allocations | Risk Profile | |
| (% of total assets) | |||
| Minimum | Maximum | High/Medium/Low | |
| Units/securities issued by PGIM Global Select Real Estate Securities Fund, domiciled in Ireland | 95% | 100% | Medium to High |
| Debt Instruments including Government Securities, Corporate Debt, Money Market Instruments, (including cash and units of mutual funds) | 0% | 5% | Low to High |
Key Features:
| Exit Load | · 10% of the units allotted may be redeemed/switched-out to debt schemes/PGIM India Arbitrage Fund without any exit load within 90 days from the date of allotment; |
| · Any redemptions/switch-outs in excess of the abovementioned limit would be subject to an exit load of 0.50%, if the units are redeemed/switched-out to debt schemes/PGIM India Arbitrage Fund within 90 days from the date of allotment of units; | |
| · Nil - If the units are redeemed/ switched-out after 90 days from the date of allotment of units; | |
| · No exit load will be charged for switches and STP between any open-ended equity scheme, hybrid scheme (except PGIM India Arbitrage Fund) and fund of funds scheme. | |
| Minimum Application Amount | Rs. 5000 and in multiples of Rs. 1 thereafter |
| Fund Manager | Mr. Ravi Adukia, an Equity Analyst and dedicated Fund Manager for overseas investments. |
| Plans | Regular and Direct |
| Options | Growth and Income Distribution cum Capital Withdrawal in each plan; |
| Dividend Sub Options | i. Payout of Income Distribution cum Capital Withdrawal facility (IDCW-Payout); |
| ii. Reinvestment of Income Distribution cum Capital Withdrawal facility (IDCW- Reinvestment). |
For more details on asset allocation, please refer Scheme Information Document of the scheme on www.pgimindiamf.com
About PGIM India Mutual Fund
PGIM India Mutual Fund is a wholly owned business of PGIM, the global investment management business of the US- based Prudential Financial, Inc. (PFI) ranking among the top 10 largest asset managers in the world1 with more than $1.5 trillion in assets under management as of September 30, 2021. PGIM India Asset Management is the full-service investment manager of PGIM India Mutual Fund, offering a broad range of equity and fixed income solutions to retail and institutional investors throughout the country. We manage 22 open-ended funds operated by 14 investment professionals. In addition to managing our investors assets through domestic mutual funds, we also offer offshore funds and portfolio management services. The fund house leverages the strength and stability of PGIM's 140-year legacy to build on its decade long history in India.
Headquartered in Mumbai, PGIM India Mutual Fund has a presence in 27 cities across the country including branches in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Pune. PGIM India Mutual Fund brings a rich blend of global resources, intellectual acumen and local investment expertise, and is committed to designing superior and meaningful, wealth-building solutions for our investors. PGIM India provides unique training and educational programs for building exceptional capabilities and best business practices for its business associates. For more information, please visit http://www.pgimindiamf.com/
About PGIM Real Estate
As one of the largest real estate managers in the world with $201.3 billion in gross assets under management and administration,2 PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debts solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.5 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate's rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,3 and the deep local expertise of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit pgimrealestate.com
1 PGIM is the investment management business of Prudential Financial, Inc. (PFI); PFI is the 10th largest investment manager (out of 477 firms surveyed) in terms of global AUM based on Pensions & Investments' Top Money Managers list published on May 31, 2021. This ranking represents global assets under management by PFI as of Dec 31, 2020 2 As of Sep 30, 2021, net AUM is $133.9 billion and AUA is $44.8 billion 3 Includes legacy lending through PGIM's parent company, PFI.