SS&C GlobeOp: Forward Redemption Indicator Up To 3.25%

Feb 22 2017 | 4:07pm ET

Redemption pressures on hedge funds have increased slightly since January, according to new data from SS&C GlobeOp.

The company’s widely followed SS&C GlobeOp Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, measured 3.25% for February 2017, up from January’s 2.60% but still down sharply down from the 5.67% recorded for the December 2016 period.

“SS&C GlobeOp’s Forward Redemption Indicator for February of 2017 was 3.25%, which edged down the 3.27% reported a year ago for February 2016 to become the second lowest reading for the month of February since the indicator was first reported in 2008,” said Bill Stone, chairman and CEO of SS&C Technologies in a statement. 

“We view this result as very favorable as it indicates hedge fund investor confidence remains strong amid changing markets, including the potential for changes in fiscal and monetary policy ahead,” he added. 

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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