SS&C GlobeOp: June Redemption Indicator 4.88%, Third Consecutive Increase

Jun 21 2016 | 7:55pm ET

Hedge fund redemptions accelerated again in June, according to the latest data from SS&C GlobeOp, as financial markets were transfixed by Fed rate decisions and the looming Brexit vote. 

The SS&C GlobeOp Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, rose to 4.88% in June 2016, up from 4.38% in May and April’s 2.94%.

“SS&C GlobeOp’s Forward Redemption Indicator for June 2016 came in at 4.88%, up slightly compared to the 4.72% reported a year ago for June of 2015,” said Bill Stone, chairman and CEO of SS&C Technologies, in a statement. “This relatively flat comparison is in line with other data we have seen in the first half of this year which is indicating stability in overall hedge fund allocations.”

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 on the SS&C GlobeOp platform, 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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