UBS Asset Management has lowered charges on a recently launched US inflation-linked bond exchange-traded fund (ETF) after a rapid rise in assets for the product.
The firm has cut the fees on its UBS ETF Barclays Tips 1-10 Ucits offering, the total expense ratio (TER) for its unhedged share class falling from 0.2 per cent to 0.15 per cent.
TERs for currency hedged share classes have dropped from 0.25 per cent to 0.2 per cent.
The firm said the product's assets have surpassed $600m (£468m) since its launch in September last year.
"The fee reduction is possible thanks to the greater economies of scale achieved through the ETF’s growing assets under management," UBS emphasised.