SS&C GlobeOp: Forward Redemption Indicator Up To 3.59%

Jun 21 2017 | 6:54pm ET

The number of notifications for hedge fund redemptions increased again month-over month in June but dropped sharply from levels a year ago, according to new research from fund administrator SS&C GlobeOp. 

The company’s well-known Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, for June 2017 measured 3.598%, up from 3.08% in May and 2.41% in April but down significantly from the 4.88% measured in June 2016.

“SS&C GlobeOp's Forward Redemption Indicator for June 2017 was 3.59%, reflecting a sharp drop from the 4.88% reported a year ago,” said Bill Stone, CEO of SS&C Technologies, in a statement. “This marks the fifth consecutive month of lower year-over-year redemptions, a very positive trend for the hedge fund industry.”

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 11,000 financial services organizations that manage an aggregate $44 trillion in assets.


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