PIMCO has cut the fees on its sterling and euro short-maturity bond ETFs by nearly half.
It means the $2bn PIMCO Euro Short Maturity UCITS ETF (PJS1) and the $102m PIMCO Sterling Short Maturity UCITS ETF (QUID) will see their total expense ratios (TER) reduced from 0.35% to 0.19%.
Following the fee cut of PJS1, the Franklin Euro Short Maturity UCITS ETF (FRXE) remains the cheapest actively managed short maturity ETF in Europe, with a TER of 0.15%.
Actively managed, PJS1 invests in euro-denominated fixed income securities with varying maturities and with duration varying between zero and one year, using the ICE BofA 3rd German Govt Bill index as its reference benchmark.
Meanwhile, QUID invests primarily in a portfolio of sterling-denominated short-term investment-grade debt, with the same duration. The ICE BofA Sterling Government Bill index is the reference index.
Commenting on the fee cut, a spokesperson from PIMCO said: "PIMCO periodically reviews its product offering and makes changes where appropriate to meet the diverse needs of our clients.”
The changes come as the fixed income specialist also recently cut the fee of the PIMCO Emerging Markets Advantage Local Bond Index UCITS ETF (EMLB) from 0.60% to 0.39%.
PIMCO’s short-duration bond ETF range has been a staple in some investor’s portfolios this year, with the ETF wrapper providing a further draw to the suite.
