ATRAM, the Philippines’ leading independent asset and wealth manager, reported that its Nasdaq Equity Income Feeder Fund has already generated PHP4 billion in investments in just three months, making it the largest and fastest-growing feeder fund in the Philippines.
This growth comes as local investors seek ways to stay invested in high-tech global innovation companies within the Nasdaq-100 Index while earning regular monthly income amid heightened market volatility.
Andrew P. Caw, ATRAM managing director, said Tuesday at the official media launch of the feeder fund—graced by officers of J.P. Morgan and Nasdaq—that a mix of affluent Filipinos and institutional fund managers comprised the initial batch of investors.
Caw added that ATRAM will soon make it easier for Filipinos to invest in the fund by offering it through e-wallet platforms. He noted that they have a scheduled meeting with GCash officials.
Miguel Liboro, head of products at ATRAM Trust Corp., explained that investors are increasingly interested in earning income from technology and innovation companies listed on Nasdaq, a major New York-based stock exchange and the second largest by market capitalization, behind only the New York Stock Exchange.
However, Liboro said, these tech giants do not typically pay substantial dividends because most of their earnings are reinvested into further innovation. As a result, he said, dividend payouts from these high-tech companies have averaged only 0.05 percent over the past five years.
To address investors’ need for both capital growth and income generation, the ATRAM Nasdaq Equity Income Feeder Fund combines exposure to innovation with income generation. It does so by investing in established Nasdaq-listed companies and employing a covered call strategy that converts market volatility into income.
By selling call options on the Nasdaq-100 Index, the fund earns premiums that form the core of its income generation. This approach provides ongoing cash flow while allowing investors to remain invested in global technology stocks.
Unlike traditional equity funds that rely primarily on price appreciation, the strategy generates income by monetizing market volatility, offering a more consistent return experience across different market conditions. Even amid prolonged volatility, investors continue to seek opportunities to invest, especially when there is some degree of income visibility.
“Investors today are no longer choosing between growth and income—they want both,” said Liboro. “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.”
Through this feeder fund, investors may experience more consistent returns compared to traditional Nasdaq equity strategies.
The target fund, the JPMorgan Nasdaq Equity Premium Income Active UCITS ETF, has historically delivered annual income in the range of 9–11 percent, with distributions expected to be paid monthly. Income levels may vary depending on market conditions and are not guaranteed.
Ayaz Ebrahim, CEO of Singapore and Southeast Asia at J.P. Morgan Asset Management, added, “As the world’s largest active ETF provider[1], covered call strategies have been a cornerstone of our ETF product suite with robust interest across markets. We are excited to partner with ATRAM to bring this innovative solution to Philippine investors in a feeder fund format, addressing their needs for income while offering a smoother equity investment experience.”
The strategy aims to capture a meaningful portion of Nasdaq returns while delivering a more stable return profile, making it well-suited for sideways, volatile, or gradually rising markets. However, upside participation may be moderated during strong market rallies.
