INVESTMENT firm ATR Asset Management (Atram) on Tuesday introduced a new equity income feeder fund to help financiers navigate uncertain global market conditions by combining exposure to technology stocks with regular cash flow.
A feeder fund — often structured as a Unit Investment Trust Fund — pools money from investors to invest at least 90 percent of its assets into a single “target” fund, usually a larger, foreign-based, or institutional-grade global fund.
The Atram Nasdaq Equity Income Feeder Fund aims to deliver a more stable return profile by generating income from market volatility while maintaining exposure to companies in the Nasdaq-100 Index.
“Investors today are no longer choosing between growth and income — they want both,” Atram Trust Corp. head of products Miguel Liboro said at its launch on Tuesday.
Atram is an independent asset and wealth manager, with about P498 billion in assets under management as of January. The firm holds roughly 45 percent of the local global feeder fund market.
“This fund allows investors to stay invested in the Nasdaq while generating income from market movements. By converting volatility to cash flow, it helps investors remain invested across market cycles,” Liboro explained.
“The volatility of innovation-led stocks can make it challenging to remain invested across market cycles, highlighting the need for strategies that balance growth and income,” Atram said in a statement.
The fund invests in established Nasdaq-listed firms and follows a covered call strategy, allowing it to convert market movements into income. By selling call options on the Nasdaq-100 Index, the strategy earns premiums that serve as a steady source of cash flow, which can then be distributed to investors on a monthly basis.
The fund invests in the JPMorgan Nasdaq Equity Premium Income Active Ucits ETF, which has historically generated annual income in the range of 9 to 11 percent, with distributions expected to be paid monthly.
Atram cautioned, however, that returns are not guaranteed and may vary depending on market conditions.
The strategy is designed to capture a portion of the Nasdaq’s returns while smoothing volatility, although upside gains may be tempered during strong market rallies due to the nature of the options-based approach.
Ayaz Ebrahim, CEO for Singapore and Southeast Asia at JPMorgan Asset Management, said covered call strategies have seen sustained demand globally as investors seek income-oriented solutions.
“We are excited to partner with Atram to bring this solution to Philippine investors, addressing their need for income while offering a smoother equity investment experience,” he said.
The fund is offered to investors who want exposure to global innovation, regular income, and a more consistent return experience compared with traditional Nasdaq-focused equity funds. It is also positioned as a long-term investment option that supports staying invested across market cycles.
