The GlobeOp Forward Redemption Indicator, which represents approximately 8-10% of the hedge fund industry and has data drawn from hedge funds administered by hedge fund administrator GlobeOp, has revealed that redemptions from this new index for April 2011 stands at 2.45%.This is a reduction from last month of 0.81%, and nears the all time low of 2.28% from October 2010.
The Indicator is near its all time low when measured over the past three years and reflects continued improvement in investor confidence, said Hans Hufschmid chief executive officer, GlobeOp Financial Services. GlobeOps data confirms that fewer investors applied to withdraw funds, and it is a sign of improving hedge fund investor confidence.
The Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by GlobeOp, divided by the AuA at the beginning of the month for GlobeOp fund administration clients.
Forward redemptions as a percentage of GlobeOp assets under administration have trended significantly lower since reaching a high of 19.27% in November 2008.
The index shows a redemption pipeline for investors in hedge funds on the 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.
At the beginning of April fund administrator GlobeOp unveiled two monthly indices of hedge fund capital flows.
In mid April, GlobeOp then revealed that that hedge fund investor sentiment remained stable, despite the number the raft of devastating earthquakes that hit Japan over the past month and the number of geo-political events in the Middle East, that initially left the relevant financial markets in turmoil.
(LB)