SS&C GlobeOp: Forward Redemption Indicator Books Lowest March Reading Since 2012

Mar 21 2017 | 7:11pm ET

Redemption pressures have eased for hedge funds on a year-over-year basis, according to new data from SS&C GlobeOp.

The company’s widely followed SS&C GlobeOp Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, measured 3.48% for March 2017, sharply lower than the 4.26% reported a year ago in March 2016. 

In fact, the 3.48% for March 2017 was the lowest level of redemptions for any month of March in the past five years. 

“We will be watching future data points very closely to see whether this improvement can be sustained and, if so, it would represent a very favorable trend for the hedge fund industry,” said Bill Stone, CEO of SS&C Technologies, in a statement. 

SS&C GlobeOp's Forward Redemption indicator is published on the 15th business day of every month. It represents the sum of forward redemption notices received from investors in hedge funds administered on the SS&C GlobeOp platform, divided by assets under administration at the beginning of the month, and is useful in measuring the pipeline of hedge fund investors asking for their money back.

Decreases in the indicator generally reflect increasing confidence in hedge fund allocations, while increases suggest the opposite. The indicator reached a high of 19.27% in November 2008 and a low of 1.85% in January 2012.

Windsor, CT-based SS&C’s clients represent about 10% of assets invested in the hedge fund sector. Founded in 1986, the company provides investment and financial software-enabled services to more than 10,000 financial services organizations that manage an aggregate $44 trillion in assets.

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