SS&C GlobeOp Forward Redemption Indicator

Rhea-AI Summary

SS&C Technologies Holdings (SSNC) has reported its Forward Redemption Indicator for February 2025 at 2.33%, showing an increase from January's 2.01%. This figure aligns with the five-year average of 2.26%. The indicator represents redemption notices from investors in hedge funds administered by SS&C GlobeOp, divided by Assets under Administration (AuA).

According to Chairman Bill Stone, despite current market uncertainties regarding tariffs, monetary, and fiscal policy, along with elevated volatility and a slowing global economy, hedge funds are positioned to potentially generate superior returns. With stable redemptions, hedge fund assets are expected to continue growing.

The Forward Redemption Indicator has significantly improved since its peak of 19.27% in November 2008. The indicator provides insight into investor confidence in hedge fund allocations, with redemption notices typically received 30-90 days before the redemption date.

Positive

• Forward Redemption Indicator remains stable at 2.33%, close to five-year average
• Significant improvement from historical high of 19.27% in November 2008
• Stable redemptions indicate positive investor confidence

Negative

• Increase in redemption rate from 2.01% to 2.33% month-over-month
• Market conditions showing elevated volatility and slowing global economy

Insights

Hedge Fund Market Analyst

The February 2025 redemption indicator of 2.33% reveals several important insights about both SS&C's business stability and broader hedge fund industry health. The marginal increase from January's 2.01% remains well within normal parameters, especially when compared to the five-year average of 2.26%.

This stability in redemption rates carries significant implications:

• The low redemption rate, particularly compared to the November 2008 peak of 19.27%, indicates strong investor confidence in hedge fund strategies despite current market volatility
• SS&C's platform, which administers approximately 10% of global hedge fund assets, provides a reliable barometer for industry-wide capital flows
• The stable redemption environment suggests predictable revenue streams for SS&C's fund administration services, as fees are typically based on assets under administration

The current market environment, characterized by elevated volatility and economic uncertainties, traditionally favors hedge fund strategies. The low redemption rates suggest institutional investors share this view, potentially positioning SS&C for sustained growth in its fund administration business. The 30-90 day advance notice period for redemptions makes this indicator a valuable leading metric for both industry capital flows and SS&C's near-term business outlook.

SS&C GlobeOp Forward Redemption Indicator: February notifications 2.33%

WINDOSR, Conn. , Feb. 24, 2025 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that the SS&C GlobeOp Forward Redemption Indicator for February 2025 measured 2.33%, up from 2.01% in January.

"SS&C GlobeOp's Forward Redemption Indicator for February 2025 was 2.33%, which was consistent with the five-year average of 2.26% for the period," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. "Asset allocators are being confronted by significant uncertainties regarding tariffs, monetary, and fiscal policy. Current market conditions, characterized by elevated volatility and a slowing global economy, create a rich landscape for hedge funds to potentially generate superior returns. With redemptions stable, we anticipate continued growth in hedge fund assets."

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 19.27% in November 2008. The next publication date is March 21, 2025.

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)	0.81%*
Year-to-date (YTD)	0.81%*
Last 12 month (LTM)	9.03%*
Life to date (LTD)	284.27%*
*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	125.37  in December 2024
12-month low	123.40 in January 2025
Largest monthly change	- 15.21 in January 2009

SS&C GlobeOp Forward Redemption Indicator    

All time high	19.27% in November 2008
All time low	1.48% in April 2022
12-month high	3.54% in December 2024
12-month low	1.86% in April 2024
Largest monthly change	9.60% in November 2008

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 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 10% of the estimated assets currently invested in the hedge fund sector. The investment strategies of the funds in the indices span a representative industry sample. Data for middle and back office clients who are not fund administration clients is not included in the Index, but is included in the Company's results announcement figures.

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 Windsor, Connecticut, and has offices around the world. More than 22,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Additional information about
SS&C (Nasdaq: SSNC) is available at www.ssctech.com.
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SOURCE SS&C

FAQ

What is SSNC's Forward Redemption Indicator for February 2025?

SS&C's Forward Redemption Indicator for February 2025 is 2.33%, up from 2.01% in January 2025.

How does SSNC's February 2025 redemption rate compare to historical data?

The February 2025 rate of 2.33% is consistent with the five-year average of 2.26% and significantly lower than the historical peak of 19.27% in November 2008.

What is the timing for redemption notices in SSNC's hedge fund administration?

Redemption notices are typically received 30-90 days in advance of the redemption date.

How much of the hedge fund sector does SSNC's platform represent?

SS&C GlobeOp's platform represents approximately 10% of the estimated assets currently invested in the hedge fund sector.

When will SSNC release the next Forward Redemption Indicator?

The next publication date is scheduled for March 21, 2025.