The ATRAM Long Term Peso Bond Fund invests in long-dated Philippine government bonds, aiming for capital gains alongside income. It carries the biggest interest rate sensitivity of any bond fund on the platform. Here's what it holds, who it suits, and how to invest through DragonFi.
What is the ATRAM Long Term Peso Bond Fund?
It's a long-term bond UITF (Unit Investment Trust Fund, a pooled fund run by a trust company). Its objective is to maximize total return, meaning it aims to achieve capital gains while maintaining a level of current income. It is managed by ATRAM.
What does it invest in?
The fund invests primarily in debt obligations of the Philippine government and its instrumentalities, held over the long term. It may also put up to 20% into investment grade bonds issued by Philippine companies, and can shift into cash and money market instruments when conditions call for it. Its holdings stretch far out, with some bonds maturing decades from now, and the fund keeps its weighted average portfolio life within seven years as a risk control. Its performance is measured against a broad Philippine government bond index.
Who is this fund for?
This fund may suit you if you:
- Are investing toward a medium-to-long-term goal
- Want the higher return potential of long-dated bonds and accept the bigger swings that come with them
- Are comfortable with the volatility and risks of a fixed income fund
- Want a way to benefit if interest rates fall over time
What's the risk level?
This is an aggressive-risk fund, the highest of the three risk bands, which surprises some people since it holds mostly government bonds. The reason is duration. Bond prices move opposite to interest rates, and the longer a bond has left to run, the more its price swings when rates change. Because this fund holds long-dated bonds, its value can move meaningfully, more than a short-term or medium-term bond fund would. Credit risk is low given the government backing, but rate risk is real. 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 4 to 5 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 everything here. This fund tends to fall when rates rise and rally when rates fall, and it does so more sharply than shorter-dated bond funds. That's the trade-off you're accepting for its higher return potential.
- Government-backed, but not low-risk. Holding mostly Philippine government bonds means credit risk is minimal, yet the fund is still classed aggressive because of how far out its bonds run. Safety of the issuer and stability of the price are two different things.
- Actively managed. The team positions across the yield curve rather than simply tracking the index.
Access the fund page here
ATRAM Long 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.