The SS&C GlobeOp Forward Redemption Indicator for May 2017 measured 3.08 per cent, up from 2.41 per cent in April.
“Taking into account seasonality, SS&C GlobeOp’s Forward Redemption Indicator for May 2017 of 3.08 per cent continues this year’s favourable trend in redemptions, as it represents a sharp decline from the 4.38 per cent reported a year ago for May of 2016, as well as compared to historical averages for the month of May,” says Bill Stone (pictured), chairman and chief executive officer, SS&C Technologies.
“This is the fourth consecutive month of year-over-year gains for the Forward Redemption Indicator and, together with other recent data points, adds to the improving outlook for the hedge fund industry.”
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 June 2017.
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.