Nowadays, interest rates are so low that fixed income investors find it increasingly difficult to get hold of assets that provide considerable yield. Global uncertainties have also pointed the need for less volatileinvestment outlets, thus, ATRAM Trust Corporation (ATRAM) decided to expand its line of investment products by launching the ATRAM Global Access Bond Income Feeder Fund.
A feeder fund is a kind of unit investment trust fund (UITF) that invests at least 90% of its assets in another fund (single collective investment scheme).
The ATRAM Global Access Bond Income Feeder Fund will be investing in the Fidelity Enhanced Reserve Fund managed by Fidelity International, a global investment manager with over US$700 billion in assets under management (AUM) as of December 31, 2020.
The Fidelity Enhanced Reserve Fund, i.e., the target fund, is a fixed income fund invested in debt securities issued worldwide.
“This is the perfect time to launch the ATRAM Global Access Bond Income Feeder Fund! With US time deposits near zero, we hope to address the need of investors for an alternative dollar investment outlet,” said Deanno Basas, President of ATRAM Trust Corporation.
The ATRAM Global Access Bond Income Feeder Fund is a fitting choice for people with moderate risk appetite in search of higher yields for their excess dollars. As the Fund is tailormade to be less sensitive to changes in interest rates, it may therefore act as a suitable alternative to US time deposits.
It has a unit income-paying feature which provides regular income, and benefits from corporate bond yields in the growth of the Asia region.
The target Fund historically paid an average of 3% annual payout yield, which is pretty decent for a less risky fixed income fund.
ATRAM Trust Corporation is the first stand-alone trust corporation in the Philippines and is regulated by the Bangko Sentral ng Pilipinas (BSP). It received its license to operate in October 2016 and was the first to launch a complete range of feeder funds in the Philippines which provide Filipinos global investment opportunities.
A market leader in the Philippine global feeder fund space with 15 feeder funds, ATRAM
Trust Corporation has approximately Php 131 billion in assets under management as of December 2020.
Visit www.atram.com.ph to learn more.
Disclaimer: Please be advised that past performance is not indicative of future returns. Returns are net of fees and taxes. Shares of the Fund are not deposits or obligations of, guaranteed or endorsed by a bank and are not insured by the Philippine Deposit Insurance Corporation (PDIC).
Fund Name: ATRAM Global Access Bond Income Feeder Fund
Fund Structure: Feeder Fund
Investment Objective: The Fund seeks to provide an attractive level of income with capital appreciation, over the short term, by investing all or substantially all its assets in a collective investment scheme that invests primarily in debt securities issued worldwide.
Benchmark: 1 Week US Dollar London Interbank Bid Rate (LIBID)
Reporting Currency: US Dollar
Risk & Investor Profile: Suitable for investors who
• Have a medium-term investment horizon
• Have a moderate risk appetite
• Are seeking to invest in global debt securities
NAVPU Calculation: Marked-to-Market
Minimum Holding Period: None
Cut-off: 3:00 p.m.
Trust Fee: 0.65% p.a.
Third Party Custodian/s: Deutsche Bank AG, Manila Branch
Citibank N.A., Manila Branch
Citibank N.A., Hong Kong