Forward redemption notices on the up in May |
Date: Tuesday, May 24, 2011
Author: Wendy Chothia, HedgeWeek
Hedge fund forward redemption notices increased slightly in May according to the latest results issued by one of the industry's major indicators.
The GlobeOp Forward Redemption Indicator for May 2011 recorded a modest
increase to 3.92%, up from 2.45% in April but lower than the 4.25% from a year
ago.
“Although the indicator increased in May there is no reason to believe that this
signals a change in investor sentiment,” says Hans Hufschmid (pictured), chief
executive officer, GlobeOp Financial Services.
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 next
publication date is June 21, 2011.
Published on the 15th business day of the month, 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. 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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