Shortened standard settlement cycle of US securities

By  Storebrand Asset Management
ARTICLE · PUBLISHED 14.05.2024
LAST UPDATED 26.11.2024

The U.S. Securities and Exchange Commission (SEC) have decided to shorten the standard settlement cycle of US securities from Trade date + 2 business days to Trade date + 1 business day. This means that cut off times for funds managed by companies within the Storebrand Group will change going forward from May 21st, 2024.

For trading in investment funds where Storebrand Asset Management AS is the management company, the cut-off time changes from 15:00 to 13:00 CET (NO ICIN).

For trading in investment funds where Storebrand Fonder AB is the management company, the cut-off time changes from 15:00 to 13:30 CET (SE ICIN).

The change in the cut-off time mentioned above is intended to ensure correct handling of orders and will reflect the transition to a new shortened settlement time for American securities.

Subscription of new units should occur at the unit value according to the first calculation of the price after the subscription time (which is when the subscription is received by the management company and funds in accordance with the subscription are received). To obtain today’s rate (NAV) payments must be received prior to the cut off time.

This means the following cut-off times are applicable to get today’s rates (NAV): 

  • Subscriptions with payments from an external Norwegian bank account: before 9:00 CET. 
  • Subscriptions with payments from an external bank account in the Nordics/UK: Express payments before 9:00 CET 
  • Subscriptions with payments from an internal account: before 13:00 CET. 
  • Redemptions: Before 13:00 CET. 

Delays may occur and time of receipt of the payment is always prevailing.

The General Commercial Terms can be downloaded here:

.

 

Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the manager's skills, the fund's risk profile and management fees. The returns can be negative as a result of price losses. There is risk associated with investments in the fund due to market movements, developments in currency, interest rates, economic conditions, industry- and company-specific conditions. Before investing, customers are advised to familiarize themselves with the fund's key information and prospectus, which contains further information about the fund's characteristics and costs.