PGIM India to mop up Rs.750 cr through FoF
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
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Mumbai: PGIM India Mutual Fund, which launched Global Select Real EstateSecurities Fund of Fund (FoF) on November 09, is eying at mopping up of Rs750 crore through the FoF.It is an open-ended equityfund of fund scheme investing in the PGIMGlobal Select Real Estate Securities Fund.
Talking to Bizz Buzz, Ajit Menon, CEO, PGIM India Mutual Fund, said: "We are looking at mopping up Rs 750 crore (or $100 million) throughFoF over a period of six months from now. Today, the Indian Rupee wastrading below 75(74.38 to be precise) against the USD."He also added that though the fund was meant for HNIs, it will also betargeting at millennial investors to invest into it.
"It is our endeavour," he said, "to bring relevant and timely investment ideas to Indian investors and advisors. We are thereforeproud to present our parent PGIM's global expertise in this assetclass."
It's various sub-themes like grade A commercial, self-storage,logistics, last mile retail, senior living and cold storage are eithernot available in India or not available at scale as investiblesecurities compared to global markets. With interest rates andinflation where they are today, this strategy will be an importantaddition to build resilience in client portfolios for times ahead, headded.
The fund is India's first Global Real Estate Securities Fund. The NFOwill open for subscription on November 15 and will close on November29. The Benchmark Index of the fund is FTSE EPRA NAREIT DevelopedIndex. The primary investment objective of the scheme is to generatelong-term capital appreciation from investing in the units of PGIMGlobal Select Real Estate Securities Fund, which primarily invests inREITs and equity related securities of real estate companies locatedthroughout the world.
Globally, real estate as an asset class and as an investment, hasundergone a shift during the pandemic. As economies across the worldreopen, properties such as hotels, assisted living facilities andrestaurants will benefit from pent-up demand. The pandemic hasaccelerated trends already underway such as cloud computing, remoteschooling, remote working, e-commerce, last mile retail etc., thusexpanding growth opportunities for real estate.
"Today's investment opportunities span a wide range of categories,including capitalising on favourable occupier momentum linked toaccelerated changes in how real estate is used, investing in assetsthat require some short-term repositioning and finding value in partsof the market that have undergone a long-term correction. As concernsaround new variants of Covid ease, allowing workplaces and service-oriented industries to reopen more fully, occupier sentiment isexpected to return quickly supporting a rebound in real estate spacedemand," said Rick Romano, MD, PGIM Real Estate and Head of GlobalReal Estate Securities Business.
It is our endeavour, 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 - Ajit Menon, CEO, PGIM India Mutual Fund
