GInvest Dividend Paying Funds (ALFM Global Multi-Asset Income Fund) (2024)

Since December 2021, GCash has announced new investment products in the GInvest lineup. I was waiting for a long time to see newer investment products in GInvest since I don’t seem to like their past ATRAM investments. Although, I try to diversify with different investments even little by little. I’ve always waited for something that would pay some dividends in this very accessible investment tool by GCash.

Finally, they did add a dividend-paying investment product thru their partnership with BPI.

Last month, I’ve seen too many downfalls on different types of investments like cryptocurrency and the ones they have in GInvest. And for me, it’s a perfect opportunity to get back on track and start investing little by little.

I’ve always had issues with saving up, it seems that the only getaway for me to save is really by means of investing because I’m very good at hodling rather than saving.

So last week I promised myself to invest 2,000 PHP a week on GInvest and cryptocurrencies. I’ll try my best to do that. But the goal of this post is really to talk about one of the two investment products that GInvest added since December last year.

Just an idea of which products they’ve added — it is the BPI Philippines Stock Index Fund and the ALFM Global Multi-Asset Income Fund. Because I want to earn dividends, we’ll focus on the latter.

What is this ALFM Global Multi-Asset Income Fund?

Well before I discuss any further, this post is really for sharing my leanings and my experiences but it is not financial advice. This investment product in GInvest is Aggressive meaning it involves very high risk at the same time it’s for a long-term goal.

ALFM Global Multi-Asset Income Fund, Inc. is an open-end mutual fund incorporated in Philippines. The Fund’s objective is to provide a stable stream of dividends and generate long-term capital growth. The Fund is a USD denominated multi-asset mutual fund operating as a Feeder fund. The Fund invests in a single collective investment scheme.

— From Bloomberg

Performance of this Fund and Some Estimates

Based on their statistics in Bloomberg, the fund is on the negative side this past year. But that doesn’t mean it’s a bad investment for me and actually, it’s an opportunity to be able to buy units at a lower cost.

As you could see there as well, the last dividend reported is 0.003894486606 USD. When converted, it is 0.19 PHP per unit. Therefore it should be around 19 PHP dividend earnings if you have 100 units. If the NAVPU (Net Asset Value Per Unit) is similar to the current price of 45.15/unit then your total investment for 100 units is 4,515 PHP.

This is just a rough estimate because, of course, GInvest has some delays in placing orders like when you buy it takes 3 business days, and if you sell it’s usually about the same time frame. That of course would affect the value of everything and for sure there are fees involved along the way.

GInvest never mentioned anything about fees but the price per unit and their charts are not even updated in real-time so it may have a price difference from the market price. But it’s okay because GInvest really is into convenience and as always convenience comes with a price.

By the way, GInvest has a different computation formula on their site but the results after computing it don’t make sense at the moment and I have to wait til’ the dividend shows up on my account to discuss.

What is dividend paying investments by the way?

I haven’t considered this question until I got here in this part. Some people may not be aware of what a dividend is.

The dividend is like the distribution of some portion of the income of the investment funds you’ve just purchased. In this investment, they pay out every month, and the dividend gets credited to your GCash account on the 15th.

The cut-off for the computation is at the end of the previous month.

Whether your investment is going up or down you should still earn dividends. It is usually given per unit you hold. Just like in the example on the previous part you may earn around 19 PHP (roughly) if you have 100 units.

My first attempt to invest on this fund.

The minimum investment on most aggressive investment products with GInvest is 1000 PHP but they have others that have a minimum of 50 PHP only. You can start at the lowest capital with GInvest and that’s what makes it different from any other place.

Anyway, with this first attempt, I was able to purchase 67.3772 Units at 45.5807 NAVPU for a total of 3071.09 PHP. I had it before the end of Feb, so I should get my first dividend on the 15th of next month.

First dividend I earned from GInvest

Yesterday, I got an SMS of an adjustment on my GCash and a few hours later I got another message saying that it is from my GInvest Dividend earning product.

If I am to divide the dividend by the number of units I have purchased, 12.64/67.37 that means the dividend per unit of the previous month is 0.1876 PHP.

If we’re going to follow the computation given by ALFM and GCash that would be Income = Per Unit Dividend x No. of units (for the cut off) x Navpu (for the record date).

This means from the table above it is 0.0041 x 67.3772 (my current no. of units in Feb) x 45.3166 = 12.52 PHP. For some reason, the formula they gave us showed a lower result than the one we actually receive. But the discrepancy is just 0.12 PHP, at least it is higher. It seems that ALFM posts the report every month. Therefore we can have an estimate of how much we’ll earn for the previous period.

I’m happy that I invested in such a thing. If I had this money in my savings account, there are 2 possible things to happen. I’d probably spent it or I’d probably get a 1 digit savings interest, less withholding tax.

Although my investments are not a guaranteed opportunity at least it’s something I can hold on to until it grows.

Next steps on investing with GInvest

As you can see the dividend I earned was deposited to GSave. I always value little things like that and put it to somewhere that one day would earn interest too. GSave is another way to earn interest with GCash.

Personally, I don’t stick to one product alone with GInvest. I also added a few in the other new product they have which is the BPI-Philippine Stock Index Fund. I also added on the Global Tech Feeder Fund and Philippine Smart Index Fund by ATRAM.

We need to learn how to diversify our investments. One thing I learned is not to put all the eggs in one basket. Because if it falls everything is ruined.

The market is so down recently probably because of the war issues. But whenever there’s a problem or issue, we should seek opportunities.

Though there’s one thing we should always keep in mind. Invest as much as possible but invest the money that you can afford to lose.