Skerritts has “switched out” index funds for Amundi ETFs in its Japan equity and UK Gilt exposures as it hunts for cost efficiency.
In its June update, the Hove-based wealth manager said it swapped the Fidelity Index Japan Fund for the $1.7bn Amundi Prime Japan UCITS ETF (PRJU) across the entirety of its VT Espirit multi-asset funds range.
PRJU carries a total expense ratio (TER) of 0.05%, half the 0.10% ongoing charge of the Fidelity product.
Charlie Lloyd (pictured), head of investment at Skerritts, commented: “Although the Amundi product tracks a different Japanese equity index, long term performance is almost identical and it offers a lower ongoing charges figure.”
The firm also sold its allocation to the iShares UK Gilts All Stock Index Fund and bought the $1.4bn Amundi UK Government Bond UCITS ETF (GILS), more than halving its fee burden for the exposure from 0.11% to 0.05%.
Elsewhere, Skerritts increased its high yield bond exposure to 3.5% across its VT Espirit range by supplementing its existing position in the $884m iShares Broad $ High Yield Corp Bond UCITS ETF (HYUS) with an allocation to the BNY Mellon Efficient Global High Yield Beta Fund.
“The BNY vehicle tracks a well-established index of high yield corporate bonds but applies a screen to filter out overpriced bonds and low-quality issuers,” Lloyd said.
“This reduces the investment universe which helps to offset some of the inefficiencies of the market including poor liquidity and high trading costs.”
The portfolio reshuffle follows Skerritts appointing Wayne Nutland as a multi-asset investment manager from Premier Miton in January.
A member of ETF Stream’s ETF Buyers Club, Nutland is responsible for managing the firm’s VT Espirit range.
