The GlobeOp Forward Redemption Indicator for June 2011 recorded a modest increase to 4.01%, up from 3.92% in May but lower than the 4.39% of a year ago.
“July is typically a heavy redemption month,” says Hans Hufschmid, chief executive officer, GlobeOp Financial Services (LSE:GO.). “This June’s Forward Indicator shows that July redemptions are the lowest they’ve been in the past four years.”
The Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by GlobeOp, divided by the AuA at the beginning of the month for GlobeOp fund administration clients. Forward redemptions as a percentage of GlobeOp assets under administration have trended significantly lower since reaching a high of 19.27% in November 2008. The next publication date is July 21, 2011.
Published on the 15th business day of the month, the GlobeOp Forward Redemption Indicator presents a timely and accurate view of the redemption pipeline for investors in hedge funds on the 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.