What is REIT?

Real Estate Investment Trust (REIT) owns, operates, or finances income-generating real estate. Like Mutual Funds, REITs also pool capital from numerous investors. Individual investors can participate in the growth of the real estate market without having to buy, manage, or finance any properties themselves.

Let's understand how REIT works?

Why REIT?

Diversification with REIT creates a more balanced portfolio.

Benefits Of Focusing On Asia-Pacific* REIT FOF?

Strong Growth Potential

• With the strong economic growth, demand towards commercial facilities, office buildings and logistic properties have rapidly increased.

• Further rise of property prices in the APAC region is expected, led by robust economic growth and rising rents.

Expanding REIT Market

REIT market development in the APAC region is expected to increase earning opportunities and generate stable income from REITs.

Source: Internal analysis of the underlying fund | *Excluding Japan

Kotak International REIT FOF - Invests in the largest Asia-Pacific* REIT Fund

Unlike in India, where the listed Real Estate Investment Trust invest majorly in office spaces. Investments in SMAM Asia REIT Sub Trust Fund will offer a diversified investment portfolio in residential, office, data centers, warehousing, retail and hospitality.

Exposure of other listed REITs in India

Kotak International REIT FOF offers exposure to varied REITs across geographies and various real estate segments

Source: SMDAM - October 2020 | *Excluding Japan

Kotak International REIT FOF Structure

Sumitomo Mitsui DS Asset Management Company Limited

Sumitomo Mitsui DS Asset Management Company Limited (SMDAM) has global presence with offices in Tokyo, London, New York, Hong Kong, Singapore and Shanghai managing an AUM of US$150.12bn (September 2020). They are one of the largest investment management companies in Japan which provides asset management, advisory, investment trusts and other services to financial institutions, pension funds, government agencies and retail investors worldwide. SMAM Asia REIT Sub Trust Fund is managed by SMDAM.

Key Features Of SMAM Asia REIT Sub Trust

Attractive Dividend Yields

Selective REIT Investment By Bottom-up Approach

• Focus on profit growth, dividend yield, valuation, and market liquidity.

• A combination of Asian REITs (mostly in Singapore and Hong Kong) and Pacific REITs (mostly Australian REITs).

Experienced REIT Investment Team

• Portfolio managers specialized in REITs and property stock investments are in charge, and managing multiple REIT funds..

• A team of 10 professionals would be monitoring the Asia and Pacific REITs market.

Source: SMDAM; AUM data as on November 30, 2020

Fund Facts

Kotak International REIT FOF

An open-ended fund of fund scheme investing in units of SMAM ASIA REIT Sub Trust fund and/or other similar overseas REIT funds.

Kotak International REIT FOF - Regular Plan &
Kotak International REIT FOF - Direct Plan;
Options: Growth & Dividend (Payout/ Reinvestment)

₹5000/- and in multiples of ₹1 for purchases and of ₹0.01 for switches.

Entry Load: Nil

Exit Load:
For redemptions/ switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment will be 1%.

For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL

Mr Arjun Khanna

S&P Asia Pacific ex Japan REIT Total Return Index

SIP and STP are available