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

August 19, 2024--Post T+1 analyses of passive S&P 500 funds show European returns are 14-20 basis points lower than their US equivalents
Lower returns for European funds investing in US equities compared with US-domiciled funds with similar portfolios are accelerating demand among asset managers for the EU to cut fund settlement times..

Ignites Europe analysis of Morningstar data suggests the change may be having a negative effect for European investors, bearing out warnings from asset management executives on differences in settlement times between Europe and the US.