SS&C GlobeOp: Forward Redemption Indicator Hits 2.08%, Lowest Since January 2013

Jul 22 2015 | 3:48pm ET

Hedge fund investors remained steadfast in the face of heightened anxiety related to Greece and China during July, according to new data from SS&C GlobeOp.

The SS&C GlobeOp Forward Redemption Indicator, a metric used to gauge withdrawal requests from hedge funds, fell from 4.72% in June to 2.08% in July. It’s the lowest reading since January 2013.

Bill Stone, chairman and CEO of SS&C Technologies, noted that while the data reflects normal seasonality to an extent, “the July reading is below last year’s 3.15% for July and, in fact, matches the lowest July figure since the index’s inception in 2008,” he said. 

“This is consistent with other recent SS&C GlobeOp data suggesting that investors are keeping their hedge fund allocations largely in place despite turmoil in international markets,” Stone added. 

Published on the 15th business day of the month, the indicator is useful as a way to measure the size of the pipeline of hedge fund investors asking for their money back. Decreases in the measure reflect increasing confidence in hedge fund allocations, while increases suggest the opposite. Redemption notifications are typically received 30-90 days in advance of the redemption date.

The indicator reached a high of 19.27% in November 2008 and a low of 1.85% in January 2012. SS&C’s clients represent about 10% of assets invested in the hedge fund sector.

Founded in 1986, SS&C provides investment and financial software-enabled services and software focused exclusively on the global financial services industry. The Windsor, CT-based company provides services to more than 7,000 financial services organizations who manage an aggregate $26 trillion in assets.

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