SS&C GlobeOp: Forward Redemption Indicator Rises to 4.26%

Mar 18 2016 | 11:16pm ET

Hedge fund redemptions rose for the third consecutive month in March despite generally rising financial markets, according to new data from SS&C GlobeOp.

The SS&C GlobeOp Forward Redemption Indicator rose 4.26% in March following 3.27% in February and 2.31% in January. The reading was slightly higher than the measure’s year-ago number and may not yet reflect a more positive market environment since the middle of February. 

"This was the first year over year increase in the Forward Redemption Indicator in several months,” noted SS&C chairman and CEO Bill Stone in a statement. “It will be interesting to see if this proves to be an anomaly or a reversal of the trend." 

The Forward Redemption indicator is published on the 15th business day of every month. It represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp, divided by assets under administration at the beginning of the month, and is useful in measuring the pipeline of hedge fund investors asking for their money back.

Decreases in the indicator generally reflect increasing confidence in hedge fund allocations, while increases suggest the opposite. The indicator reached a high of 19.27% in November 2008 and a low of 1.85% in January 2012.

Windsor, CT-based SS&C’s clients represent about 10% of assets invested in the hedge fund sector.

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