State Street Global Advisors has warned investors they may face additional costs due to the firm’s approach to the upcoming change to T+1 settlement in the US. SSGA’s Luxembourg Sicav umbrella fund has a number of US equity and bond sub-funds, the Financial Times reported.
Many firms are reducing the settlement cycles of their Europe-based funds as the deadline approaches. However, the board of the State Street Global Advisors Luxembourg Sicav, an open-ended investment fund structure, told investors earlier this month that it will not reduce the settlement cycle of its funds, which currently settle on a T+2 basis, ahead of the US move.
The SSGA fund board warned investors that sticking with its current settlement cycle “may incur additional costs” on certain sub-funds, “particularly on large flows”.