The ATRAM Global Bond Income Feeder Fund pays quarterly income by investing across the world's bond markets, from US mortgage securities to emerging market government debt. Here's what it holds, who it suits, and how to invest through DragonFi.
What is the ATRAM Global Bond Income Feeder Fund?
It's an income-paying bond UITF structured as a feeder fund, which means it channels almost all of your money into a single larger fund focused on bonds from around the world. It is managed by ATRAM.
What does it invest in?
Through its target fund, it invests in a wide mix of global fixed income securities. That spans US government and agency mortgage-backed securities, corporate bonds across sectors like technology, banking, utilities and pipelines, emerging market government debt, and higher-yielding credit. The fund may hold up to around 38% in high yield securities, which are bonds rated below investment grade that pay more but carry greater risk of default. Its performance is measured against a global credit bond index.
What's the target fund?
At least 90% of the fund's assets are invested in the PIMCO GIS Diversified Income Fund, managed by PIMCO, one of the world's largest bond specialists. The target fund has been running since 2008. For its current holdings and the full breakdown, see the fund's page in the DragonFi app.
Who is this fund for?
This fund may suit you if you:
- Want regular income from your investment
- Are seeking to invest in global debt securities and diversify beyond Philippine bonds
- Are comfortable with the volatility and risks of a fixed income fund
- Have a medium-to-long-term investment horizon
What's the risk level?
This is an aggressive-risk fund, the highest of the three risk bands. Two things drive that. First, duration: the target fund holds longer-dated bonds, so its value moves when interest rates change. Second, credit risk: a meaningful slice sits in high yield and emerging market debt, where borrowers are likelier to run into trouble than developed market governments. Because the underlying investments are in US dollars, exchange rate movements also affect your returns. 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 0.9% per annum trust fee, already deducted from the fund before the daily price is calculated, so you don't pay it separately. Because it's a feeder fund, you also indirectly shoulder the small expenses of the underlying target fund. 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. One thing to know about feeder funds: because the target fund is based overseas, your order may be priced with a slight delay compared with local funds.
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. Because this is a feeder fund, proceeds usually take a little longer to arrive than they would for a local fund, since the money comes from the overseas target fund. Proceeds are credited within 7 to 8 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
- Pays income quarterly. This fund aims to distribute income every quarter. Based on its recent schedule, the income is set in early-to-mid January, April, July, and October, and paid out roughly a week to ten days later. Payouts are not guaranteed and the amount varies with the fund's income. Note that a distribution can cause an immediate dip in the NAVPU, since the income is paid out of the fund.
- How the payout reaches you. Income is paid in cash, but there's a ₱1,000 minimum. If the income due to you falls below that, it is automatically reinvested into the fund as additional units instead, since paying out small amounts would cost more in transaction fees than it's worth.
- Bonds, but not the safe kind you might picture. Holding high yield and emerging market debt is what lets this fund generate its income, and it's also why it's classed aggressive despite being a bond fund.
- Currency moves matter. The fund is in pesos while the target fund is in US dollars, and this exposure is not hedged, so exchange rates affect your returns.
Access the fund page here
ATRAM Global Bond Income Feeder 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.