SS&C GlobeOp Forward Redemption Indicator
- The SS&C GlobeOp Forward Redemption Indicator for December 2023 increased to 3.64% from 3.49% in November, indicating a positive trend in investor confidence and hedge fund performance.
- The SS&C GlobeOp Hedge Fund Performance Index shows consistent growth in year-to-date, last 12-month, and life to date performance, indicating a positive outlook for the company's hedge fund administration services.
- None.
Insights
The SS&C GlobeOp Forward Redemption Indicator is a metric that reflects investor sentiment towards hedge funds. A rise to 3.64% in December, from 3.49% in November, suggests a marginal increase in redemptions, which could indicate a slight decrease in investor confidence or a strategic shift in asset allocations. It is, however, below the 10-year average of 4.73%, which could imply relative stability in the hedge fund sector.
Investors and market participants should consider the context of this data; a lower-than-average redemption rate might suggest that despite a challenging economic environment characterized by high inflation and interest rates, hedge funds may still be perceived as a viable investment strategy. This could be due to their potential to deliver absolute returns and hedge against market volatility.
The historical data provided, such as the all-time highs and lows, offer insights into the industry's volatility over time. The current figures seem to indicate a period of relative calm compared to the extremes seen in previous years, such as the high of 19.27% in November 2008 during the financial crisis.
The Forward Redemption Indicator is a tool for hedge fund managers to gauge future capital outflows and strategize accordingly. The reported year-to-date and last 12-month performance indices can be used to benchmark fund performance against peers and market expectations.
With the Indicator's 12-month low at 1.82% in July and a slight increase to 3.64% in December, fund managers might deduce that investor redemption behavior remains within a normal range despite market pressures. This stability can be leveraged to reassure investors and potentially attract new capital by highlighting the fund's ability to manage redemptions effectively.
Understanding the nuances of the SS&C GlobeOp Forward Redemption Indicator, including how it contrasts with the SS&C GlobeOp Hedge Fund Performance Index, is essential for fund managers when communicating with stakeholders and making informed decisions about portfolio adjustments and investor relations.
From an economic perspective, the SS&C GlobeOp Forward Redemption Indicator can be seen as a barometer for the alternative investment industry's health. The current indicator's slight uptick could signal a cautious approach by investors in response to macroeconomic factors such as inflation and interest rate hikes.
However, the indicator's position below the 10-year average suggests that the hedge fund industry is not experiencing a significant outflow of funds, which could be interpreted as a sign of economic resilience within this sector. Furthermore, the relatively stable capital movement index points towards a balanced inflow and outflow of funds, which is crucial for maintaining liquidity in the financial markets.
Economists might analyze the correlation between this indicator and broader economic trends, such as the impact of monetary policy on investment strategies and the role of hedge funds in providing diversification during times of market stress.
SS&C GlobeOp Forward Redemption Indicator: December notifications
"SS&C GlobeOp's Forward Redemption Indicator for December 2023 was
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
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.
SS&C GlobeOp Hedge Fund Performance Index
Base | 100 points on 31 December 2005 |
Flash estimate (current month) | |
Year-to-date (YTD) | |
Last 12 month (LTM) | |
Life to date (LTD) | |
*All numbers reported above are gross |
SS&C GlobeOp Capital Movement Index
Base | 100 points on 31 December 2005 |
All time high | 150.77 in September 2013 |
All time low | 99.67 in January 2006 |
12-month high | 130.54 in March 2023 |
12-month low | 127.43 in December 2023 |
Largest monthly change | - 15.21 in January 2009 |
SS&C GlobeOp Forward Redemption Indicator
All time high | |
All time low | |
12-month high | |
12-month low | |
Largest monthly change |
About the SS&C GlobeOp Hedge Fund Index®
The SS&C GlobeOp Hedge Fund Index (the Index) is a family of indices published by SS&C GlobeOp. A unique set of indices by a hedge fund administrator, it offers clients, investors and the overall market a welcome transparency on liquidity, investor sentiment and performance. The Index is based on a significant platform of diverse and representative assets.
The SS&C GlobeOp Hedge Fund Index is available at www.sscglobeopindex.com.
The SS&C GlobeOp Capital Movement Index and the SS&C GlobeOp Forward Redemption Indicator provide monthly reports based on actual and anticipated capital movement data independently collected from all hedge fund clients for whom SS&C GlobeOp provides administration services on the SS&C GlobeOp platform.
The SS&C GlobeOp Hedge Fund Performance Index is an asset-weighted benchmark of the aggregate performance of funds for which SS&C GlobeOp provides monthly administration services on the SS&C GlobeOp platform. Flash estimate, interim and final values are provided, in each of three months respectively, following each business month-end.
While individual fund data is anonymized by aggregation, the SS&C GlobeOp Hedge Fund Index data will be based on the same reconciled fund data that SS&C GlobeOp uses to produce fund net asset values (NAV). Funds acquired through the acquisition of Citi Alternative Investor Services are integrated into the index suite starting with the January 2017 reporting periods. SS&C GlobeOp's total assets under administration on the SS&C GlobeOp platform represent approximately
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in
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SS&C (Nasdaq: SSNC) is available at www.ssctech.com.
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SOURCE: SS&C
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FAQ
What is the SS&C GlobeOp Forward Redemption Indicator for December 2023?
What is the SS&C GlobeOp Hedge Fund Performance Index?
How are the SS&C GlobeOp Forward Redemption Indicator and Hedge Fund Performance Index calculated?
