GInvest Fund Guide: ATRAM Global Technology Feeder Fund

Through GCash’s GInvest, users can now invest in a basket of global technology stocks via the ATRAM Global Technology Feeder Fund (ATRAM GTFF) for as little as PhP1,000.00.

For a step-by-step run-through detailing the process of buying shares of investment funds through GInvest, see our guide: How to Invest in Mutual Funds with GCash.

For all you need to know about mutual funds, see our guide: What is a Mutual Fund?

Fund Description

Similar to the ALFM Global Multi-Asset Income Fund (ALFM GMIF), the ATRAM GTFF is also a feeder fund. Its target fund, which is the fund it invests its capital in, is the Fidelity Funds – Global Technology Fund (FF-GTF). As such, the ATRAM GTFF effectively mirrors the performance of the FF-GTF.

The ATRAM GTFF provides investors with the opportunity to invest in a basket of technology stocks from around the world. Investors can now enjoy the returns for stocks of top tech companies like Facebook, Apple, and Google. Based on its October 29, 2021 Key Information and Investment Disclosure Statement (KIIDS), 99.47% of the fund’s capital is invested in the FF-GTF.

Based on the fund’s prospectus, the minimum subscription amount is PhP1,000.00.

Management Fees

The ATRAM GTFF charges a 1.11% trustee fee. This is not too far from the fees charged by BPI’s Philippine Stock Index Fund. However, investors should take into account the fact that the ATRAM GTFF is a feeder fund which means that the fund also absorbs the fees of the target fund.

Summarized below are the fees charged by ATRAM GTFF amounting to 1.13% of the total fund. The fees are charged as a percentage of the average daily net asset value (NAV) of the fund for each month.

See ATRAM GTFF’s website page for more information.

Trustee Fee1.11%
External Auditor Fees0.01%
Other Fees0.01%
Total1.13%

As per FF-GTF’s Key Investor Information factsheet, the fund only charges 1.04% for “ongoing charges”.

Investment Considerations

Merits

  • The fund lets you invest in a basket of top global tech stocks like Facebook, Apple, and Google.
  • The fund has lower costs compared to the ALFM GMIF.

Risks

  • Investors still technically shoulder two (2) fees: one for the ATRAM GTFF and one for the FF-GTF.
  • As with any investment, returns are not guaranteed. Research is still necessary.
  • Tech is a fast-moving industry so the investor must be aware of the changes that may happen to the companies the fund invests in.

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