Hedge fund redemptions remain low but could increase next year, as shown by SS&C GlobeOp’s Forward Redemption Indicator for December which reached 3.54%, up from 2.91% in November.
“The figure was lower than the 10-year average of 4.27% for the period, as investors assessed market opportunities and refined asset allocations for the upcoming year,” said Bill Stone, Chairman and Chief Executive Officer of SS&C Technologies, in a recent press release.
“Following robust equity market performance over the past two years, signs indicate potential headwinds for economic conditions and return expectations. This shifting landscape provides fertile ground for compelling hedge fund risk-adjusted returns, and we anticipate strong asset retention heading into 2025.”
The SS&C GlobeOp Forward Redemption Indicator is calculated by dividing the total amount of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp by the assets under administration (AuA) at the start of the month for funds on the SS&C GlobeOp platform.
The indicator has notably declined from its peak of 19.27% in November 2008. The next update of the indicator will be released on January 23, 2024.
