European fund performance significantly lags behind US peers after T+1

Q: How long will it take to read this news story?

The story "European fund performance significantly lags behind US peers after T+1" has 854 words across 29 sentences, which will take approximately 4 - 8 minutes for the average person to read.

Q: Which news outlet covered this story?

The story "European fund performance significantly lags behind US peers after T+1" was covered 12 hours ago by Financial Times, a news publisher based in United States.

Q: How trustworthy is 'Financial Times' news outlet?

Financial Times is a fully independent (privately-owned) news outlet established in 1888 that covers mostly markets, finance, and investing news. The outlet is headquartered in United States and publishes an average of 5 news stories per day. It's most recent story was published 10 hours ago.

Q: What do people currently think of this news story?

The sentiment for this story is currently Neutral, indicating that people are not responding positively or negatively to this news.

Q: How do I report this news for inaccuracy?

You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.<ul><li>News ID: #22131517</li><li>URL: https://beamstart.com/news/european-fund-performance-significantly-lags-17240</li></ul>

Financial Times 12h ago

European fund performance significantly lags behind US peers after T+1 - Financial Times

Quick Summary:

McCaughan said misalignment between buying and selling cycles for US and European equities could require a fund to borrow money to cover funding gaps or to get a broker to settle on a later cycle, which would incur a fee.

Jim McCaughan, US practice leader at Indefi, an asset management consultancy, said that “there will be a measurable drag on performance” due to settlement misalignment between the US and the EU, depending on the strategy and accounting method deployed by the fund.

Total returns for EU-domiciled S&P 500 tracker funds and ETFs between the T+1 start date and the end of July have been 14 basis points lower than the returns for US-domiciled products, at 4.14 per cent and 4.28 per cent respectively.