Redemptions from hedge funds increased in November as investors prepare to rebalance their portfolios at the start of the New Year, according to fund administrator GlobeOp.
The GlobeOp Forward Redemption Indicator for November measured 3.44%, up from 2.51% in October.
We expect fund redemption requests to increase as year-end approaches, says Hans Hufschmid, CEO of GlobeOp Financial Services. January is typically the largest month as investors rebalance their portfolios. Redemptions this year are similar to 2010 and there are no signs of unusual investor activity.
The Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by GlobeOp, divided by the assets under administration 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.
According to the GlobeOp Capital Movement Index, which estimates inflows and outflows to the greater hedge fund industry, hedge funds have advanced 2.05% in November. In October, several indexes showed inflows into hedge funds decelerating compared to the preceding months.
(CG)