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 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.