SS&C GlobeOp: Forward Redemption Indicator Down to 2.57%

Jul 24 2017 | 4:40pm ET

The pace of hedge fund redemptions moderated in July from June’s elevated pace and remains below last year’s levels, according to new research from fund administrator SS&C GlobeOp. 

The company’s widely-followed Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, for the July period was 2.57%, down from the 3.59% seen in June and the lowest level since April’s 2.41%. 

“SS&C GlobeOp’s Forward Redemption Indicator of 2.57% for July 2017 represents a year-over-year improvement from the 2.95% reported in July 2016,” said Bill Stone, CEO of SS&C Technologies, in a statement. “This marks the sixth consecutive month of lower year-over-year redemption notices, pointing to continued gains in asset retention for hedge funds heading into the second half of 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 11,000 financial services organizations that manage an aggregate $44 trillion in assets.


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