ATRAM launches Nasdaq income feeder fund

ATRAM Trust Corp. has launched a feeder fund offering exposure to the NASDAQ-100 while generating monthly income through an options-based strategy, expanding access to global equities amid volatile markets.

The ATRAM Nasdaq Equity Income Feeder Fund invests in a JPMorgan-linked Nasdaq strategy and uses covered call writing to generate income by selling call options on underlying holdings.

“It’s providing insurance to another investor who thinks he wants to buy the Nasdaq but doesn’t necessarily want to buy it now,” ATRAM product head Miguel Liboro told a news briefing on Tuesday. “He’s willing to pay you for the cost of that insurance or the premium.”

He said volatility from geopolitical tensions and inflation supports higher option premiums. “With the US-Iran war, global inflation spiking, that’s all bad… but [it helps us] generate higher premiums,” he added.

The fund targets regular income with partial participation in Nasdaq upside, making it more suitable for sideways or volatile markets. Income is distributed monthly but not guaranteed, and returns may vary depending on conditions.

The underlying strategy has historically generated about 9% to 11% annual income, ATRAM said.

The fund is available in peso and dollar classes. The peso tranche is unhedged, benefiting from peso weakness, while the dollar option targets lower-yielding cash alternatives.

ATRAM said the product has reached about P4 billion in assets within three months.

The trust firm plans to launch five more funds this year, including PERA-linked products, as it expands its asset management lineup. — AMCS