The SS&C GlobeOp Forward Redemption Indicator for November 2015 measured 4.90 per cent, up from 2.96 per cent in October.
“SS&C GlobeOp’s Forward Redemption Indicator for November 2015 of 4.90 per cent rose from 2.96 per cent in October 2015 primarily due to seasonal factors,” says Bill Stone (pictured), Chairman and Chief Executive Officer, SS&C Technologies. “The months of November and December typically show the highest readings of the year for the Forward Redemption Indicator due to year-end rebalancing. Looking at the comparison on a year-over-year basis, the November 2015 redemptions of 4.90 per cent were actually lower than 5.05 per cent for November 2014 and, in fact, were the lowest of any November since 2011. This result is consistent with other recent data indicating an improving underlying trend in overall hedge fund allocations, even as investors rebalance their portfolios.”
The SS&C GlobeOp Forward Redemption Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the SS&C GlobeOp platform, divided by the AuA at the beginning of the month for SS&C GlobeOp fund administration clients on the SS&C GlobeOp platform. Forward redemptions as a percentage of SS&C GlobeOp's assets under administration on the SS&C GlobeOp platform have trended significantly lower since reaching a high of 19.27 per cent in November 2008. The next publication date is 21 December, 2015.
Published on the 15th business day of the month, the SS&C GlobeOp Forward Redemption Indicator presents a timely and accurate view of the redemption pipeline for investors in hedge funds on the SS&C GlobeOp administration platform. Movements in the Indicator reflect investor confidence in their allocations to hedge funds. Indicator data is based on actual investor redemption notifications received. Unlike subscriptions, redemption notifications are typically received 30-90 days in advance of the redemption date. Investors may, and sometimes do, cancel redemption notices. In addition, the establishment and enforcement of redemption notices may vary from fund to fund.
