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Forward Redemption Indicator at 3.88%
21 June 2013
June figure slightly up from 3.77% in May, says SS&C GlobeOp
Forward Redemption Indicator
SS&C GlobeOp’s Forward Redemption Indicator for June measured 3.88%, which was up slightly from 3.77% in May, with investors using the mid-year point to review their portfolios and to release cash to spend elsewhere.
“The Indicator increased slightly for the month of June and is comprised primarily of typical semi-annual redemption activity,” said Bill Stone, chairman and chief executive ffficer, SS&C Technologies.
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.
Total assets under administration (AuA) on the GlobeOp platform represent approximately 10% of the estimated assets currently invested in the hedge fund sector. The Forward Redemption Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the GlobeOp platform, divided by the AuA at the beginning of the month for SS&C GlobeOp fund administration clients on the GlobeOp platform. Forward redemptions as a percentage of SS&C GlobeOp's assets under administration on the GlobeOp platform have trended significantly lower since reaching a high of 19.27% in November 2008.
The next publication date is July 22, 2013.