The SS&C GlobeOp Forward Redemption Indicator for May 2018 measured 3.47 per cent, up from 2.60 per cent in April.
“SS&C GlobeOp’s Forward Redemption Indicator for May 2018 of 3.47 per cent, reflects an increase from the 3.08 per cent reported for the same period a year ago for May of 2017. With respect to this year-over-year comparison, it should be noted that the 3.08 per cent reported a year ago for May 2017 was the lowest level of redemptions for any month of May since the inception of the indicator in 2008,” says Bill Stone (pictured), Chairman and Chief Executive Officer, SS&C Technologies. “In fact, over the same period, the 3.47 per cent reported for the current month is the third lowest reading for the month of May since inception, so redemption notices remain low by historical standards.”
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 June 21 2018.
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.
