SS&C GlobeOp: Forward Redemption Indicator Up to 2.71%

Hedge fund redemptions increased in February after a sharp drop in January, according to new data 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 February period was 2.71%, up from 2.20% seen in the first month of this year.

“SS&C GlobeOp’s Forward Redemption Indicator for February 2018 was 2.71%, reflecting improvement from the 3.25% reported for the same period a year ago for February of 2017. This marks the 13th consecutive month of year-over-year improvement in redemption notices,” Bill Stone, chairman and CEO of SS&C Technologies, said in a statement.

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.