PGIM India Mutual Fund on Wednesday announced the launch of PGIM India Global Select Real Estate Securities Fund, an open-ended equity fund-of-fund (FoF) scheme.

The fund is India’s first Global Real Estate Securities Fund. The NFO will open for subscription on November 15 and close on November 29. The benchmark of the fund is FTSE EPRA NAREIT Developed Index.

Global REITs, realty stocks

The primary investment objective of the scheme is to generate long-term capital appreciation through FoF, which primarily invests in REITs and equity-related securities of real estate companies located throughout the world. “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 endeavour to bring relevant and timely investment ideas to Indian investors. Its 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 MF.