SS&C GlobeOp: Forward Redemption Indicator Up To 3.55%

Aug 21 2017 | 6:35pm ET

Hedge fund redemptions picked up steam in August, according to new data from fund administrator SS&C GlobeOp, although they are down from year-ago levels. 

The company’s widely-followed Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, for the August period was 3.55%, up from 2.57% seen in July but the seventh straight month of favorable year-over-year comparisons.

"SS&C GlobeOps' Forward Redemption Indicator of 3.55% for August 2017 reflects solid year-over-year improvement from the 3.86% reported for August of 2016,” said Bill Stone, CEO of SS&C Technologies, in a statement. “The result for August continues the favorable trend in asset retention by hedge funds this year, marking the seventh consecutive month of lower redemption notices on a year-over-year basis."  

"It is also noteworthy that this trend has taken hold during a period of record market highs, indicating that investors are confident hedge funds can provide attractive returns in a directional market," Stone 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 11,000 financial services organizations that manage an aggregate $44 trillion in assets.


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