The GlobeOp Forward Redemption Indicator for June recorded a modest increase to 4.01%, up from 3.92% in May but lower than the 4.39% of a year ago.
July is typically a heavy redemption month, says Hans Hufschmid, chief executive officer of GlobeOp Financial Services (LSE:GO.). This Junes Forward Indicator shows that July redemptions are the lowest theyve been in the past four years.
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 AuA have trended significantly lower since reaching a high of 19.27% in November 2008. The next publication date is July 21.
The GlobeOp Forward Redemption Indicator presents a timely and accurate view of the redemption pipeline for investors in hedge funds on the GlobeOp administration platform, with a new edition printed midway through each month.
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.
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