GInvest Fund Guide: ATRAM Philippine Equity Smart Index Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via investment funds for as low as PhP50.00. In this article, we break down all you need to know before investing in the ATRAM Philippine Equity Smart Index Fund (ATRAM PESIF).

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 article: What is a Mutual Fund?

Fund Description

Like BPI’s Philippine Stock Index Fund (PSIF), the ATRAM PESIF is an index fund which mirrors the composition of the Philippine Stock Exchange Index (PSEi).

Based on the ATRAM PESIF’s Key Information and Investment Disclosure Statement (KIIDS), the minimum initial investment required is PhP50.00 and PhP50.00 for each succeeding addition.

Management Fees

Summarized below are the fees charged by ATRAM PESIF amounting to 1.64% charged as a percentage of the average daily net asset value (NAV) of the fund for each quarter.

Trustee Fees1.50%
Custodianship Fees0.03%
External Auditor Fees0.01%
Other Fees (Transaction Fees)0.10%

Redemption

The ATRAM PESIF has no minimum holding period and no early redemption charges.

Investment Considerations

Merits

  • The ATRAM PESIF lets you enjoy the returns of the Philippines’ most dominant companies.

Risks

  • BPI’s PSIF may be a better option as it charges a 1.00% compared to ATRAM PESIF’s 1.64%.
  • As with any investment, returns are not guaranteed and research is very much necessary.

GInvest Fund Guide: ATRAM Peso Money Market Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via investment funds for as low as PhP50.00. In this article, we break down all you need to know before investing in the ATRAM Peso Money Market Fund (ATRAM PMMF).

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 article: What is a Mutual Fund?

Fund Description

The ATRAM PMMF mainly invests in a portfolio of highly liquid fixed-income instruments with average maturities of one (1) year or less. The fund aims to produce higher returns than the regular bank deposit but will likely produce lower returns than a regular bond fund such as the ATRAM Total Return Peso Bond Fund (ATRAM TRPBF).

Based on the ATRAM PMMF Key Information and Investment Disclosure Statement (KIIDS), the minimum initial investment required is PhP50.00 and PhP50.00 for each succeeding addition.

Management Fees

As with any feeder fund, investors must consider the fees of both the feeder fund and the target fund it invests in.

Summarized below are the fees charged by ATRAM PMMF amounting to 0.71% charged as a percentage of the average daily net asset value (NAV) of the fund for each quarter.

Trustee Fee0.70%
External Auditor Fees0.01%

Redemption

The ATRAM PMMF has no minimum holding period and no early redemption charges.

Investment Considerations

Merits

  • The fund lets you invest in a basket of liquid fixed income securities with an extra focus on capital preservation as opposed to sharp returns.

Risks

  • Investors may find a bond fund such as the ATRAM TRPBF more interesting if they can harbor the marginal increase in risk of the bond fund compared to a money market fund.
  • As with any investment, returns are not guaranteed and research is very much necessary.

GInvest Fund Guide: ATRAM Global Consumer Trends Feeder Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via investment funds for as low as PhP50.00. In this article, we break down all you need to know before investing in the ATRAM Global Consumer Trends Feeder Fund (ATRAM GCTFF).

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 article: What is a Mutual Fund?

Fund Description

Like the ALFM Global Multi-Asset Income Fund (ALFM GMIF), the ATRAM GCTFF is a feeder fund which is a fund that invests its capital in a larger investment scheme known as a “target fund”. The ATRAM GCTFF invests in a target fund that maintains a portfolio of global stocks predominantly engaged in the design, production, or distribution of consumer products and services. The target fund of ATRAM GCTFF is the Invesco Global Consumer Trends Fund (IGCTF).

Based on the ATRAM GCTFF Key Information and Investment Disclosure Statement (KIIDS), the minimum initial investment required is PhP1,000.00 and PhP500.00 for each succeeding addition.

Management Fees

As with any feeder fund, investors must consider the fees of both the feeder fund and the target fund it invests in.

Summarized below are the fees charged by ATRAM GCTFF amounting to 1.17% charged as a percentage of the average daily net asset value (NAV) of the fund for each month..

Trustee Fee1.15%
Other Fees (Transaction Fees)0.02%

On top of this, investors must also consider the annual management fee of 1.50% charged by IGCTF, notwithstanding an entry charge of up to 5.00% depending on ATRAM GCTFF’s agreement with IGCTF.

Redemption

The ATRAM GCTFF has no minimum holding period and no early redemption charges.

Investment Considerations

Merits

  • The fund is a fast and convenient way of investing in a basket of GLOBAL companies.

Risks

  • Investors technically shoulder two (2) fees: the target fund’s (IGCTF) and the feeder fund’s (ATRAM GCTFF).
  • As with any investment, returns are not guaranteed and research is very much necessary.

GInvest Fund Guide: ATRAM Total Return Peso Bond Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via investment funds for as low as PhP50.00. In this article, we break down all you need to know before investing in the ATRAM Total Return Peso Bond Fund (ATRAM TRPBF).

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

The ATRAM TRPBF is a long-term bond fund which mainly invests in a selection of Philippine government bonds and corporate bonds.

Through bonds, investors can lend money to the government or to companies in exchange for repayment of the principal plus interest by the borrower. Bonds are thus also known as “fixed income” securities as the repayments are usually done in the form of coupons paid out on a regular basis.

The ATRAM TRPBF requires a minimum subscription amount of PhP50.00 and a further PhP50.00 minimum amount for succeeding subscriptions.

Management Fees

The ATRAM TRPBF is an actively managed bond fund. The fund’s fees are broken down below. The fees are charged as a percentage of the average daily net asset value (NAV) of the fund for each quarter.

Trustee Fees1.14%
Custodianship Fees0.02%
External Auditor Fees0.01%
Other Fees (Transaction Fees)0.01%

Redemption

The ATRAM TRPBF has no minimum holding period and no early redemption charge.

Investment Considerations

Merits

  • The fund provides a convenient way of investing in a basket of bonds from the Philippine government as well as from companies.

Risks

  • Although potentially more “stable” than stocks in terms of price fluctuations and cash flows, bonds also usually have lower potential returns than stocks.
  • Bonds may also face the threat of default if the borrower proves unable to repay his debt.
  • As with any investment, returns are not guaranteed and research is very much necessary.

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.

GInvest Fund Guide: ALFM Global Multi-Asset Income Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via investment funds for as low as PhP50.00. In this article, we break down one fund which more recently spiked in popularity after some serious marketing efforts from several brokers: the ALFM Global Multi-Asset Income Fund (ALFM GMIF).

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

The ALFM GMIF is a feeder fund relying on the active management of its appointed target fund: the BlackRock Global Multi-Asset Income Fund (BGMIF). In effect, the ALFM GMIF invests the money you place under its care into BGMIF and thus “feeds” off of BGMIF’s performance.

Based on ALFM GMIF’s prospectus, the minimum subscription amount is USD100.00 or its Peso equivalent and a further USD20.00 or its Peso equivalent for succeeding additional subscriptions. However, investing in the ALFM GMIF through GInvest allows investors to buy shares in the fund for as little as PhP1,000.00.

It should be noted that the ALFM GMIF also regularly distributes a dividend to investors unlike BPI’s Philippine Stock Index Fund or most other index funds today for that matter. As per ALFM GMIF’s prospectus, the dividends can come in the form of cash or additional shares on a monthly basis or whenever practicable.

Management Fees

The tricky thing with feeder funds is that their fees can look misleadingly low given that they are passively managed like index funds. However, since they usually feed off of the performance of an actively managed fund which charges an appropriate active management fee, the investor actually has to pay for the fees charged by the feeder fund and the fees charged by the actively managed fund.

Summarized below are the fees charged by ALFM GMIF amounting to 1.00% of the total fund per annum.

Management Fee0.475% p.a.
Distribution Fee0.475% p.a.
Transfer Agent Fee0.050% p.a.
Total1.00% p.a.

However, the returns after fees received by ALFM GMIF investors come only after the fees charged by BGMIF which are further summarized below.

Management Fee0.600% p.a.
Administration Fee0.250% p.a.
Custodian Fee0.0024% p.a.

Redemption

Investment funds usually charge a penalty for early redemption of shares. This is to prevent investors from withdrawing their funds all too quickly and harming the fund’s liquidity. ALFM GMIF charges a 1.00% early redemption fee if units are redeemed before the minimum holding period of 180 days.

Holding PeriodEarly Redemption Fee
Less than 180 days1.00%
More than 180 daysNone

Investment Considerations

Merits

  • The fund is a fast and convenient way of investing in a basket of GLOBAL companies.
  • Dividends declared by the fund provide regular cashflow.

Risks

  • Investors technically shoulder two (2) fees: the target fund’s (BGMIF) and the feeder fund’s (ALFM GMIF).
  • Investors may be better off just investing in an index fund like the PSIF.
  • As with any investment, returns are not guaranteed and research is very much necessary.

What is a Mutual Fund?

Description

A mutual fund pools the capital of many individual and institutional investors which it then uses to invest in assets it hopes will rise in value or produce cashflows over time.

Mutual funds mainly turn a profit by buying and selling securities or receiving cashflows from the aforementioned securities (in the form of dividends if through stocks and interest if through bonds). The profits are then passed onto the mutual fund’s shareholders after relevant expenses have been deducted.

To this end, mutual funds may be actively or passively managed. Actively managed funds make investments based on the research and work of their management team. Passively managed funds attempt to mirror the positions of a benchmark or another fund (a “target” fund). Actively managed funds typically charge higher fees than passively managed funds.

Mutual funds thus allow investors to buy an immediately diversified basket of assets without needing to actively put in the work managing their portfolio. As a result, mutual funds have grown to be popular investments for those hoping to set up retirement funds for themselves or tuition funds for their children.

Minimum initial investments for mutual funds typically run between PhP1,000.00 to PhP5,000.00 which is lower than the PhP8,000.00 and above usually needed to invest in actual stocks and bonds. Recent developments in financial technology have also given investors the option to invest in mutual funds for as low as PhP50.00 such as through GCash’s GInvest program. (See our step-by-step guide to learn how.)

Types

As per the PIFA, there are mainly four (4) basic types of mutual funds in the Philippines, namely:

Stock (or Equity) Funds

Stock funds buy and sell company shares of stock. Stock funds are usually deemed the most aggressive form of the four “standard” fund types given their potential for substantial gains but also proportionate potential losses. Nonetheless, stock funds remain very popular among investors given that stocks have typically performed well over the long term.

Bond Funds

Bond funds invest in securities such as treasury notes issued by the government or commercial papers issued by companies. Bond funds are considered more conservative compared to stock funds and they typically focus more on capital preservation than outright growth.

Balanced Funds

Balanced funds invest in both stocks and bonds. Investors who thus want some of the growth potential offered by stocks and the defensive nature of bonds may find balanced funds to be an ideal addition to their portfolio.

Money Market Funds

Money market funds are essentially the same as bond funds only they invest in securities which have maturities of one year or less. Money market funds thus generally have lower promised returns than bond funds but are considered more secure and defensive than bond funds.

Tips

  • Make sure to do your own research before buying shares in your mutual fund of choice. Most of all, make sure management is capable and trustworthy. Make sure the fund is registered with relevant regulatory bodies.
  • As with any investment, only invest what you can afford to lose. If you need the money any time soon, it probably isn’t wise to just throw it all into an investment scheme.
  • Even with mutual funds, diversify. In theory, the more shares you hold from different funds, the more you can potentially limit the risk of any one of them wiping you out.

GInvest Fund Breakdown: BPI’s Philippine Stock Index Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via mutual funds for as low as PhP50.00. In this article, we broke down all you need to know about one investment fund GInvest offers: the Philippine Stock Index Fund (PSIF).

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

Fund Description

PSIF mainly invests in the stocks that comprise the Philippine Stock Exchange Composite Index (PSEi) in the same weights as the index. Like all other stock funds, GInvest classifies the PSIF as “Aggressive” in terms of risk profile given the greater fluctuations that come with stock prices compared to, say, bonds.

Based on PSIF’s prospectus, the minimum initial investment for the fund is PhP5,000.00 and PhP1,000.00 for each succeeding purchase. However, this only applies to those who do not purchase shares of the fund through GInvest which only requires a PhP50.00 minimum initial investment and blocks of PhP50.00 thereafter.

The PSIF is managed by BPI Investment Management, Inc. (BIMI), the investment management arm of the Bank of the Philippine Islands (BPI).

Management Fees

Index funds tend to charge lower fees than actively-managed funds since index funds are passive by nature. Nonetheless, investors should still consider management fees when purchasing index funds. Aim to select those charging the lowest fees. In our opinion, the fees charged by PSIF are acceptable.

Management Fee0.475% p.a.
Distribution Fee0.475% p.a.
Transfer Agent Fee0.050% p.a.
Total1.00% p.a.

Redemption

Investment funds usually charge a penalty for early redemption of shares. This is to prevent investors from withdrawing their funds all too quickly and harming the fund’s liquidity. PSIF is no different as it charges a flat 1.00% on the total withdrawal if an investor has held his shares for less than ninety (90) days.

Holding PeriodEarly Redemption Fee
Less than 90 days1.00%
More than 90 daysNone

Investment Considerations

Merits

  • Convenient way of investing in a wide variety of shares in the country’s leading companies
  • Lower fees compared to actively-managed funds

Risks

  • As with any investment, returns are not guaranteed and research is very much necessary.
  • Stocks perform better over longer time periods. Therefore, investing in a stock index fund could produce better results if shares of the fund are held over a longer period of time.

RCBC plans PhP3.0 billion fixed rate bond issuance

Rizal Commercial Banking Corporation (RCBC) is planning to issue up to PhP3.0 billion in fixed-rate bonds under the bank’s PhP100-billion bond and commercial paper program.

As per a statement released December 31, 2021, RCBC intends to use the proceeds from the issuance to support asset growth, re-finance maturing liabilities, and supplement other general funding purposes.

The planned issuance is RCBC’s seventh in the peso bond market. The bank previously offered up to PhP3.0 billion in dual-tenor fixed-rate ASEAN sustainability bonds last March 2021 which saw demand of up to PhP17.9 billion or 5.9 times the original target issue size. The issuance was comprised of 2.5- and 5.25-year maturities issued at a fixed rate of 3.2% and 4.18% respectively.

Prior to the bank’s issuance last March, it had managed to sell over PhP15.0 billion in ASEAN green bonds, PhP8.0 billion in ASEAN sustainability bonds, and over PhP31.2 billion from other prior bond offerings.

RCBC, originally incorporated on September 23, 1960 as Rizal Development Bank, offers a wide range of traditional banking, investment banking, retail financing, and other financial services.