The ATRAM Medium Term Peso Bond Fund invests in Philippine government and corporate bonds, aiming for steadier returns than stocks over the medium term. Here's what it holds, who it suits, and how to invest through DragonFi.
What is the ATRAM Medium Term Peso Bond Fund?
It's a bond UITF (Unit Investment Trust Fund, a pooled fund run by a trust company) that aims to maximize total return by investing in peso-denominated bonds. A bond is essentially a loan to a government or company that pays interest, and this fund holds a portfolio of them. It is managed by ATRAM.
What does it invest in?
The fund invests primarily in debt obligations of the Philippine government and its instrumentalities, along with bonds issued by Philippine companies and deposit products with banks. It keeps its weighted average effective duration under five years, which is what places it in the medium-term range: longer than a money market fund, but shorter than a long-term bond fund. Its performance is measured against the BPI Philippine Government Bond 1-5 Year Index.
Who is this fund for?
This fund may suit you if you:
- Are investing toward a medium-term goal, roughly three to five years away
- Want steadier returns than a stock fund, with more growth potential than a money market fund
- Are comfortable with modest ups and downs in value
- Want to balance out riskier investments elsewhere in your portfolio
What's the risk level?
This is a moderate-risk fund, the middle of the three risk bands. Bond prices move with interest rates: when rates rise, bond prices generally fall, and when rates fall, bond prices generally rise. Because this fund caps its maturities at around five years, it's less sensitive to those swings than a long-term bond fund. Returns are not guaranteed.
Can I hold this in a PERA or Regular account?
This fund is available through a Regular DragonFi account. It is not one of DragonFi's PERA-eligible funds.
What are the fees?
Like all UITFs, this fund charges a 1% per annum trust fee, already deducted from the fund before the daily price is calculated, so you don't pay it separately. Fees can change over time, so for the exact current trust fee, check this fund's page in the DragonFi app.
What's the minimum investment?
You can start investing in this fund for as low as ₱1,000 on DragonFi, and you can add to it any time.
How do I invest in or add to this fund?
You can invest in or top up this fund directly in the DragonFi app in a few taps. You can also set up Auto Invest to invest a fixed amount on a regular schedule. For the full steps, the daily cut-off time, and how your buy-in price (NAVPU) is set, see the "How to invest in a fund" article by DragonFi.
How do I sell or redeem it?
You can redeem some or all of your investment in the app whenever you like, with no fixed lock-in period. Proceeds are credited within 2 to 3 business days. For details, see the "How to sell or redeem a fund" article by DragonFi.
Where do I see the current NAVPU and returns?
The live price (NAVPU) and the latest returns are always shown on this fund's page in the DragonFi app. We don't list those figures here because they change every day, so the app is your most up-to-date source.
Good to know
- Interest rates drive it. Bond funds tend to dip when interest rates rise and rally when rates fall, so short-term movement is normal.
- The middle ground. It sits between money market and equity funds, which makes it a common building block for balancing a portfolio.
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Actively managed. The team adjusts the fund's positioning across maturities rather than simply tracking the index.
Access the fund page here:
ATRAM Medium Term Peso Bond Fund | DragonFi
This fund is not a deposit and is not insured by the Philippine Deposit Insurance Corporation (PDIC). Returns are not guaranteed. The fund's price (NAVPU) can rise and fall, so you may get back less than you invested, and past performance is not indicative of future results.