The ATRAM Peso Diversified Income Fund aims to pay you more income than a plain bond fund can, by blending Philippine bonds, property trusts, and preferred shares. Here's what it holds, who it suits, and how to invest through DragonFi.
What is the ATRAM Peso Diversified Income Fund?
It's an income-paying multi-asset UITF (Unit Investment Trust Fund, a pooled fund run by a trust company). Its aim is to generate income that is higher than pure government bond and corporate bond funds can offer, while keeping the ups and downs of its price manageable. It is managed by ATRAM, and it invests entirely in the Philippines.
What does it invest in?
The fund draws income from coupons and dividends across four Philippine asset types: government bonds, corporate bonds, preferred shares (a type of share that pays a fixed dividend, behaving somewhat like a bond), and real estate investment trusts (REITs) along with high dividend-paying stocks. Its target mix leans on corporate and government bonds for the core, with REITs and preferred shares adding extra yield. By design, no more than 60% of the fund can sit in the riskier of those asset types. Unusually, it doesn't try to track any single benchmark's return; it focuses on delivering steady income instead.
Who is this fund for?
This fund may suit you if you:
- Want regular income from your investment
- Are seeking more yield than a plain bond fund, without going all the way to stocks
- Are comfortable with the volatility and risks of a multi-asset fund
- Have a medium-to-long-term investment horizon
What's the risk level?
This is a moderate-risk fund, the middle of the three risk bands. Its bonds are sensitive to interest rate movements, and the REITs and dividend-paying shares behave more like stocks, so they can swing more. Blending the two is what places this fund between a bond fund and an equity 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 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
- Pays income twice a year. This fund aims to distribute income semi-annually. Based on its recent schedule, the income is set around the middle of March and September, and paid out roughly a week 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.
- Four income sources, all local. Spreading across bonds, preferred shares, and REITs means the payout doesn't depend on any single source, and it's all Philippine, so there's no currency risk here.
- Income first, growth second. This fund is built to deliver a steady payout rather than to maximise total return, so don't judge it against a stock fund's growth.
Access the fund page here:
ATRAM Peso Diversified Income 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.