SS&C GlobeOp: Forward Redemption Indicator Hits 5.67%

Dec 21 2016 | 9:44pm ET

Redemption pressure continued to build in the hedge fund industry during December, according to new data from SS&C GlobeOp.

The company’s widely-followed Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, hit 5.67% after measuring 4.25% in November.

"SS&C GlobeOp's Forward Redemption Indicator for December 2016 was 5.67%, which reflects an increase from the 4.98% reported in December 2015," said Bill Stone, chairman and CEO of SS&C Technologies. "This result effectively reversed the sharp decrease seen last month in the November numbers. 

“For the full year 2016, the monthly Forward Redemption Indicator averaged 12 basis points higher than for full year 2015, a fairly modest change in the face of many newsworthy market and world events during the year."

SS&C GlobeOp's 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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