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.

7 Peter Lynch Quotes on Investing

During his thirteen-year stint as manager of the Fidelity Magellan Fund from 1977 to 1990, Peter Lynch managed to post 29.2% in average annual return, cleanly beating the S&P 500 stock market index by more than double over the same period. This phenomenal track record effectively cemented his position as one of history’s greatest investors.

Although also a proponent of value investing, Peter Lynch seemed more an advocate of straightforward fundamental analysis as a practice. He insisted on only investing in what you know which often meant performing the necessary legwork to research companies as thoroughly as possible.

More recently, Peter Lynch has commented on the “mistake” of passive investing, citing that he believes active investors have beat the market for years and would continue to do so.

In line with this, we have collected seven of our favorite Peter Lynch quotes on investing below.

“Stocks are not lottery tickets. There’s a company behind every stock. The company does well, the stock does well.”

Peter Lynch

Neat’s Notes: In the words of our lord and savior Lou Mannheim (Wall Street, 1987): “Stick to the fundamentals. That’s how IBM and Hilton were built. Good things sometimes take time.”

“If you spend fourteen minutes a year on economics, you’ve wasted twelve minutes.”

Peter Lynch

Neat’s Notes: Lynch makes reference to economics “in the broad scale” in which one attempts to discern uptrends or downtrends in whatever aspect of the economy. Lynch largely wanted to avoid “economic predictions”, preferring to stick to “economic facts” which meant actual numbers measuring things that have actually happened.

“If you can’t explain to a ten-year-old in two minutes or less why you own a stock, you shouldn’t own it.”

Peter Lynch

Neat’s Notes: In the words of whomever: “Keep it simple, stupid!”.

“You can take advantage of the volatility in the market if you understand what you own.”

Peter Lynch

Neat’s Notes: Lynch also pointed out that if a stock went down by a lot from when you bought it, you would be in a better place to know the best thing to do if you understood what you owned as opposed to, say, quickly selling out in a panic.

“You can’t get too attached to a stock. The stock does not know you own it.”

Peter Lynch

Neat’s Notes: Yes.

“Avoid long shots. I bought about thirty long shots in my life. I’ve never broken even on one.”

Peter Lynch

Neat’s Notes: We would also like to add that it is usually unwise to go headlong into something without conducting at least some sufficient amount of personal research.

“It’s always gonna be scary, there’s always gonna be something to worry about, and you just have to forget all about it. Cut it all out and own good companies and turnarounds. Study them and you’ll do well.”

Peter Lynch

Neat’s Notes: We think this quote best encapsulates Peter Lynch’s whole mindset with regards to investing. Simple and no nonsense. We also hope it can help guide you towards achieving 29.2% average annual returns over the next thirteen years.

Peter Lynch’s 1994 lecture on investing may also be of interest to those keen on getting more stock-picking tips from the man himself. We at Neat’s have watched it 3,906,483,290 times—still substantially less than the USD14.0 billion Lynch was managing at one point for the Fidelity Magellan Fund.