Vanguard Ireland and UK-domiciled funds and ETFs move to T+2 settlement
01 September 2017 | Topical insights
On 5 September 2017 the US financial industry plans to shorten the settlement cycle process from three business days after the trade date (T+3) to two business days after the trade date (T+2) for securities bought and sold on the secondary market.
Due to this change, we will be changing the settlement cycle of all Vanguard UK-domiciled and most Ireland-domiciled investments from T+3 to T+2 to align the settlement time of the funds and ETFs with the settlement time of the underlying investments on the key markets on which they trade.
The change is designed to reduce a number of risks, including credit risk, market risk, liquidity risk and, as a result, systemic risk. It will also introduce greater global settlement harmonisation, as many countries have also recently moved their settlement cycles to T+2.
The change means that investors in our Ireland- and UK-domiciled funds will need to provide payment for subscriptions within two days – one day earlier than now – and will receive payment following a redemption one day earlier.
At the same time, primary-market transactions in the Ireland-domiciled ETFs listed below will also move to T+2. (Primary-market transactions are where authorised participants create new shares in our ETFs to meet the needs of large investors.) From 5 September, authorised participants in the below-mentioned funds will need to provide payment within two days of instructing the trade. However, since most clients deal for ETFs on the secondary market (i.e. via an exchange) and the Ireland-domiciled ETFs are only listed on European exchanges, they are already following a T+2 cycle.
Primary market transactions in our Japan Stock Index Fund and FTSE Japan UCITS ETF will remain at T+3.
If you have questions about these changes, please get in touch with your normal Vanguard contact.
Funds affected by the change:
Vanguard Investment Series PLC
Vanguard Emerging Markets Stock Index Fund
Vanguard European Stock Index Fund
Vanguard Eurozone Stock Index Fund
Vanguard Global Small-Cap Index Fund
Vanguard Global Stock Index Fund
Vanguard Pacific Ex-Japan Stock Index Fund
Vanguard SRI European Stock Fund
Vanguard SRI Global Stock Fund
Vanguard U.S. 500 Stock Index Fund
Vanguard U.S. Fundamental Value Fund
Vanguard U.S. Opportunities Fund
Vanguard Euro Government Bond Index Fund
Vanguard Euro Investment Grade Bond Index Fund
Vanguard Eurozone Inflation-Linked Bond Index Fund
Vanguard Global Bond Index Fund
Vanguard Japan Government Bond Index Fund
Vanguard U.K. Government Bond Index Fund
Vanguard U.K. Investment Grade Bond Index Fund
Vanguard U.S. Government Bond Index Fund
Vanguard U.S. Investment Grade Credit Index Fund
Vanguard U.S. Ultra-Short-Term Bond Fund
Vanguard 20+ Year Euro Treasury Index Fund
Vanguard U.K. Short-Term Investment Grade Bond Index Fund
Vanguard Global Short-Term Bond Index Fund
Vanguard U.S. Treasury Inflation-Protected Securities Index Fund
Vanguard SRI Euro Investment Grade Bond Index Fund
Vanguard FTSE U.K. All-Share Index Unit Trust
Vanguard FTSE 100 Index Unit Trust
Vanguard LifeStrategy Funds ICVC
Vanguard LifeStrategy 100% Equity Fund
Vanguard LifeStrategy 20% Equity Fund
Vanguard LifeStrategy 40% Equity Fund
Vanguard LifeStrategy 60% Equity Fund
Vanguard LifeStrategy 80% Equity Fund
Vanguard Target Retirement 2015 Fund
Vanguard Target Retirement 2020 Fund
Vanguard Target Retirement 2025 Fund
Vanguard Target Retirement 2030 Fund
Vanguard Target Retirement 2035 Fund
Vanguard Target Retirement 2040 Fund
Vanguard Target Retirement 2045 Fund
Vanguard Target Retirement 2050 Fund
Vanguard Target Retirement 2055 Fund
Vanguard Investments Funds ICVC
Vanguard FTSE Developed World ex-U.K. Equity Index Fund
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund
Vanguard FTSE U.K. Equity Income Index Fund
Vanguard U.K. Inflation Linked Gilt Index Fund
Vanguard U.K. Long Duration Gilt Index Fund
Vanguard U.S. Equity Index Fund
Vanguard Global Equity Fund
Vanguard Global Equity Income Fund
Vanguard Global Emerging Markets Fund
Vanguard Global Balanced Fund
Vanguard Global All-Cap Index Fund
Vanguard Common Contractual Fund
Vanguard U.S. Equity Index Common Contractual Fund
Vanguard Investments Common Contractual Fund
Vanguard FTSE Developed World Common Contractual Fund
Vanguard FTSE Developed World ex UK Common Contractual Fund
Vanguard FTSE Developed Europe ex UK Common Contractual Fund
Vanguard Funds Plc
Vanguard FTSE All-World High Dividend Yield UCITS ETF
Vanguard FTSE All-World UCITS ETF
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF
Vanguard S&P 500 UCITS ETF
Vanguard FTSE Developed World UCITS ETF
Vanguard FTSE North America UCITS ETF
Vanguard Global Momentum Factor UCITS ETF
Vanguard Global Liquidity Factor UCITS ETF
Vanguard Global Value Factor UCITS ETF
Vanguard Global Minimum Volatility UCITS ETF
Vanguard FTSE Emerging Markets UCITS ETF
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