SS&C GlobeOp: Forward Redemption Indicator Dips to 2.94%

Apr 21 2016 | 8:38pm ET

The pace of redemptions from hedge funds slowed in April and was also below year-ago levels, according to the latest data from SS&C GlobeOp.

The SS&C GlobeOp Forward Redemption Indicator rose 2.94% for the April 2016 period, down from the elevated 4.26% posted by the indicator in March and the lowest reading since January’s 2.31%.

"SS&C GlobeOp's Forward Redemption Indicator for April 2016 was also lower on a year-over-year basis compared to 3.36% for April of 2015," said Bill Stone, chairman and CEO of SS&C Technologies. "This favorable result is in line with the overall trend toward lower redemptions that began mid-2015, and demonstrates continued investor confidence in the hedge fund sector."

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. Founded in 1986, the company provides investment and financial software-enabled services to more than 10,000 financial services organizations that manage an aggregate $44 trillion in assets.

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