GCASH DIVIDEND UPDATE: BPI ALFM Global Multi-Asset Income Fund
Channel: ZIGGING by Mark Sigg
Date: 2022-01-02

Here I'm sharing the update on the new GCash investment fund that promises high dividend returns: the BPI ALFM Global Multi-Asset Income Fund which is now available via GCash Ginvest. On paper, it seems like that it's better than a REIT! Similar to REITs recently launched in the Philippine Stock Market, this investment fund also projects returns of 3 to 5%. But is this REALLY BETTER THAN A REAL ESTATE INVESTMENT TRUST? Let's go into further detail and deep dive into this mutual fund from BPI and ALFM!


The BPI ALFM Global Multi-Asset Income Fund was recently launched in the Philippines in January 2021. While it may feel risky to be investing in a brand new fund with no basis for its historical performance, that's not entirely the case. While new, this fund's target fund is actually the BlackRock Global Multi-Asset Income Fund. This fund was launched by the prestigious BlackRock financial group in 2012. Based on this, the fund has cumulative returns of over 50% (at the time that the video was shot). As the target fund, BPI-ALFM allocates over 90% of the capital they are managing for the fund into this BlackRock Global Multi-Asset Income Fund. Thus, the future performance of this new mutual fund from BPI-ALFM can be tied into the performance of the target fund.  For more information about this global fund from BlackRock, click here: https://www.blackrock.com/americas-offshore/en/products/259503/blackrock-global-multi-asset-income-d6-usd-fund

Similar to Philippine REITs, this new mutual fund from BPI-ALFM is projected to provide high dividend yields of 3 to 5% on top of the price appreciation of the fund. Investors are also subject to promising returns as they get dividends every month in the form of additional shares in the said fund. That's right, this is how to get more dividends every month versus your other investments. Unlike REITs that are focused on a number of buildings, at best spread across different cities and developments in the Philippines, the BPI-ALFM Global Multi-Asset Income Fund is exactly that: a way to diversify your investment and benefit from the economic conditions from the rest of the world as it's investing in global markets.

If you missed my previous vides on  Philippine REITs, you can check out the videos here:
Invest in REITs via BDO Securities - https://youtu.be/q0cZZGU_6Xs
A thorough review of the Megaworld REIT (MREIT) - https://youtu.be/Sb6CknZyLQ0

As a global market investment, this mutual fund spreads its investments across different regions enabling you to take advantage of economic conditions that may be more favorable versus the local Philippine market. The fund allocates over 60% of its high dividend yield portfolio to North America, 15% to Europe, 15% to other markets, and the rest of that to the rest of the world. As a multi-asset fund, the fund is not invested merely in global equities as most ETFs, UITFs, or Mutual Funds are. Surprisingly, this high dividend fund invests over 60% of its portfolio into more conservative Fixed Income Securities. Specifically, 40% is invested in the US Fixed Income Market while 20% is invested in the non-US fixed income securities. The remainder of the fund is invested in US Equities, Non-US Equities, and ETFs. Currently, the fund has shares in Google and Citi Group for US Equities and Taiwan Semiconductors for Non-US Equities. For ETFs, it's invested in iShares High Yield funds.

A great benefit of this fund is that even though it's invested in the global markets, you can invest in it without having to change your pesos into dollars and avoid the hassle. The minimum investment starts at P5,000 and can be topped off in increments of P1,000. As a managed fund, there is a 1% fee per annum common to UITFs and Mutual Funds. This is the only downside in investing in this fund versus REITs whereas fees associated with REITs are only the broker fees. The upside is however being invested on a global scale! 

Do you think it's worth it to invest in the- BPI-ALFM Global Multi-Asset Income Fund or would you rather invest in REITs? If you think it's worth investing in, check out below:


Interested in other investments?
Get PHP 70 worth of GCash freebies here: https://gcsh.app/r/ZphO465

Invest with GCash or Seedbox Philippines here: https://youtu.be/AXQelIH_tvI

New to investing? Check out my Beginner's Guide to Investing here: 
https://www.youtube.com/playlist?list=PLOHBMsBtgvjkcqiDnPpvLbkANKkBF9WPV

Credits to the ALFM Mutaul Funds page on Facebook for their infographs and materials. 
https://www.facebook.com/ALFMMutualFunds/

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