ATRAM Trust Corp. has introduced the ATRAM Nasdaq Equity Income Feeder Fund, an equity income strategy designed to deliver monthly income while keeping investors exposed to global innovation companies listed in the Nasdaq.
The fund provides exposure to innovation-driven firms tracked under the Nasdaq-100 Index, while also using an options-based income strategy to generate cash flow from market movements.
“As the world’s largest active ETF provider, covered call strategies have been a cornerstone of our ETF product suite, with strong interest across markets,” said Ayaz Ebrahim, CEO for Singapore and Southeast Asia at J.P. Morgan Asset Management. “We are excited to partner with ATRAM to bring this solution to Philippine investors in a feeder fund format, addressing their needs for income while offering a smoother equity investment experience.”
This offering comes as Filipino investors increasingly look for global investment options that combine tech sector exposure with regular income, especially during periods of market volatility.
The ATRAM Nasdaq Equity Income Feeder Fund invests in a target strategy managed by J.P. Morgan Asset Management, which holds Nasdaq-listed companies and applies a covered call strategy.
This approach involves selling call options on the Nasdaq-100 Index. In exchange, the fund earns option premiums, which become a steady source of income.
Instead of relying only on stock price gains, the strategy converts market volatility into recurring payouts, aiming to smooth returns across different market conditions.
Historical data from the target fund, the JPMorgan Nasdaq Equity Premium Income Active UCITS ETF, shows an average annual income range of about 9% to 11%, with distributions expected monthly. However, income levels may change depending on market conditions and are not guaranteed.
The fund is designed for investors who want exposure to global technology and innovation while also receiving regular cash flow.
“Investors today are no longer choosing between growth and income, they want both,” said Miguel Liboro, head of products at ATRAM Trust Corp. “This fund allows investors to stay invested in the Nasdaq while generating income from market movements. By converting volatility into cash flow, it helps investors remain invested across market cycles.”
The fund aims to capture a portion of Nasdaq returns while reducing the impact of sharp market swings. It is designed for sideways, volatile, or gradually rising markets, where income from options premiums can help offset weaker price performance.
However, during strong market rallies, upside gains may be lower compared to traditional Nasdaq index investing due to the covered call strategy.