SS&C GlobeOp: Forward Redemption Indicator Falls to 2.20%

Jan 24 2018 | 9:52pm ET

Hedge fund redemptions dropped sharply in January after accelerating in December, according to new data from fund administrator SS&C GlobeOp, marking the twelfth straight month of improvements in year-over-year comparisons. 

The company’s widely-followed Forward Redemption Indicator, a metric used to gauge investor withdrawals from hedge funds, for the January period was 2.20%, down from 4.18% seen in August. 

“SS&C GlobeOp’s Forward Redemption Indicator for January was 2.20%, down from 2.60% for the same period a year ago for January 2017,” said Bill Stone, CEO of SS&C Technologies, in a statement. “This very favorable result marks the twelfth consecutive month of improvement in year-over-year redemption notices.” 

“Hedge funds are beginning 2018 with strong tailwinds with respect to asset retention,” Stone added.

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 11,000 financial services organizations that manage an aggregate $44 trillion in assets.


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