The ATRAM Philippine Alpha Opportunity Fund looks beyond the country's biggest listed names, investing in smaller Philippine companies with strong growth potential. Here's what it holds, who it suits, and how to invest through DragonFi.
What is the ATRAM Philippine Alpha Opportunity Fund?
It's an equity UITF (Unit Investment Trust Fund, a pooled fund run by a trust company) that aims for long-term capital growth by investing in Philippine companies the managers believe have strong growth potential. The word "alpha" refers to returns above what the market delivers, which is what this fund is built to pursue. It is managed by ATRAM.
What does it invest in?
The fund invests in Philippine listed companies with strong growth potential, which are not necessarily part of the Philippine Stock Exchange Index (PSEi). This is what sets it apart from most local equity funds. Rather than concentrating on the 30 largest listed companies, it looks further down the market for smaller and mid-sized businesses that the managers believe could become tomorrow's leaders. Its performance is measured against a Philippine small cap index rather than the PSEi.
Who is this fund for?
This fund may suit you if you:
- Want exposure to Philippine companies beyond the usual blue chips
- Believe smaller, growing companies can outperform the broader market over time
- Are comfortable with sharper ups and downs than a typical PSEi fund
- Are investing for the long term, ideally five years or more
It may also complement a portfolio that already holds a PSEi-focused fund, since it invests in a different part of the market.
What's the risk level?
This is an aggressive-risk fund, the highest of the three risk bands. Smaller companies carry extra risk compared with large ones: they have more limited resources, their shares can be harder to buy and sell, and their prices can move more sharply. In exchange, they offer the potential for stronger long-term growth. 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 2% 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 3 to 4 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
- Not a PSEi fund. This is the key thing to understand. Because it deliberately invests outside the country's 30 biggest listed companies, its performance can look quite different from the PSEi, in either direction. Don't expect it to track the headline index you see in the news.
- Tomorrow's blue chips, maybe. The idea is to find promising companies early, before they become household names. That's the opportunity, and also the risk, since not every promising company delivers.
- Smaller companies, bigger swings. Shares of smaller firms can be harder to trade and more volatile, so a longer horizon and a steady temperament help here more than most.
Access the fund page here:
ATRAM Philippine Alpha Opportunity 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.