Hedge fund redemption notices up in August, below 5-year average
Redemption notices on SS&C GlobeOp’s platform were 1.64% of assets in August, up from 1.35% in July and 73 basis points below the five-year average of 2.37%.
Investors filed redemption notices equal to 1.64% of assets on SS&C GlobeOp’s hedge fund administration platform in August, up from 1.35% in July and 73 basis points below the five-year average of 2.37%, according to SS&C Technologies’ Forward Redemption Indicator.
The Forward Redemption Indicator tracks forward notices received from investors in funds administered on the GlobeOp platform and measures those notices against assets under administration at the start of the month. SS&C publishes the indicator on the 15th business day of each month.
Redemption notices are typically submitted 30 to 90 days before the requested withdrawal date and can be canceled. Redemption terms and enforcement vary by fund, so the indicator reflects potential rather than guaranteed outflows.
The August reading remains well below the 19.27% record logged in November 2008 during the global financial crisis.
Bill Stone, chairman and chief executive of SS&C Technologies, noted that the reading suggested hedge funds continued to offer diversification and downside protection for investors facing volatile markets. He added: “Energy security concerns from ongoing conflicts, the unwinding of tariffs, fiscal challenges, and changes in rate policy continue to drive markets.”
SS&C GlobeOp is due to publish its September indicator on 22 September.
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