SS&C Forward Redemption Indicator At 2.71% In Feb
The SS&C GlobeOp Forward Redemption Indicator for February 2018 measured 2.71%, up from 2.20% in January.
"SS&C GlobeOp's Forward Redemption Indicator for February 2018 was 2.71%, reflecting improvement from the 3.25% reported for the same period a year ago for February of 2017. This marks the 13th consecutive month of year-over-year improvement in redemption notices," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. "In fact, the 2.71% reported for February 2018 is the lowest rate of redemption notices for any calendar month of February since the inception of the indicator in 2008. It is too early to say how the recent market upheaval will affect this favorable trend in asset retention, but investors tend to be attracted to hedge funds in times of increased volatility because of their trading expertise and ability to effect hedged strategies."
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% in November 2008. The next publication date is March 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.