Sogelux, the €3.5bn Luxembourg-based multi-class umbrella fund managed by Société Générale Asset Management (SGAM), has made changes to its settlement cycle.
The changes come at a time when European distributors are asking manufacturers more and more questions about market timing and late trading issues.
All transactions received before 1pm will now be settled three business days later, as opposed to the previous four-day period.
“This modification is just a technical arrangement to adjust the fund’s assets and liabilities and is not at all related to current discussion regarding market timing abuses and late trading,” said Nicola Trouze, deputy head of European distribution at SGAM.
He said the change will synchronise the settlement cycle of the subscription, redemption and conversion transactions, with the settlement cycle of the securities’ sales and purchases.
“Before there was a one-day delay in the settlement process and we thought this situation needed to be changed,” said Mr Trouze.

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