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.