SS&C GlobeOp Forward Redemption Indicator

Rhea-AI Summary

SS&C Technologies (SSNC) has reported its GlobeOp Forward Redemption Indicator for March 2025 at 2.42%, showing a slight increase from February's 2.33%. However, this represents a decrease from 2.87% in March 2024 and remains below the 10-year average of 2.95%.

The indicator, which measures hedge fund investor redemption notices, reflects stabilizing redemption rates despite challenging market conditions including weakening consumer confidence, rising inflation, and ongoing policy uncertainty. This metric represents the sum of forward redemption notices from investors in hedge funds administered by SS&C GlobeOp, divided by the Assets under Administration (AuA).

For context, the indicator's historical peak was 19.27% in November 2008. The next publication date is scheduled for April 22, 2025. Redemption notifications are typically received 30-90 days before the redemption date, with SS&C GlobeOp's platform representing approximately 10% of estimated hedge fund sector assets.

Positive

• Forward redemption rate of 2.42% is lower than previous year (2.87%)
• Redemption rate remains below 10-year average of 2.95%
• Stable redemption rates despite challenging market conditions

Negative

• Monthly increase in redemption rate from 2.33% to 2.42%
• Challenging market environment with weakening consumer confidence and rising inflation

Insights

Financial Markets Analyst

The latest SS&C GlobeOp Forward Redemption Indicator shows mixed signals for SS&C Technologies' hedge fund administration business. March's redemption rate increased slightly to 2.42% from February's 2.33%, but shows notable improvement compared to the 2.87% recorded in March 2024 and remains below the 10-year average of 2.95%.

This indicator effectively measures investor confidence in hedge fund allocations by tracking redemption notices as a percentage of assets under administration (AuA) on SS&C's platform. The current below-average redemption rate suggests hedge fund investors are maintaining their allocations despite challenging macroeconomic conditions, including rising inflation and policy uncertainty.

For SS&C specifically, this metric carries business implications as their administration fees typically correlate with assets under management. Lower redemption rates generally translate to more stable AuA, potentially supporting steadier fee-based revenue streams from their hedge fund administration services. The historic context is particularly informative – current levels are substantially healthier than the 19.27% peak observed during the 2008 financial crisis.

While the month-over-month increase represents a minor negative signal, the stronger year-over-year improvement and performance against historical averages suggest overall stability in SS&C's hedge fund administration environment, even amid volatile market conditions.

SS&C GlobeOp Forward Redemption Indicator: March notifications 2.42%

WINDSOR, Conn., March 21, 2025 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that the SS&C GlobeOp Forward Redemption Indicator for for March 2025 measured 2.42%, up from 2.33% in February.

"SS&C GlobeOp's Forward Redemption Indicator dropped to 2.42% in March 2025, down from 2.87% a year earlier and notably below the 10-year average of 2.95%," said Bill Stone, Chairman and Chief Executive Officer of SS&C Technologies. "Amid weakening consumer confidence, rising inflation, and ongoing policy uncertainty, global market volatility remains elevated.  The stabilization in redemption rates underscores hedge fund managers' unique ability to navigate turbulent conditions and deliver compelling risk-adjusted returns."

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 April 22, 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)	-1.02%*
Year-to-date (YTD)	1.49%*
Last 12 month (LTM)	8.13%*
Life to date (LTD)	286.92%*
*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 the current SS&C GlobeOp Forward Redemption Indicator (SSNC) for March 2025?

The SS&C GlobeOp Forward Redemption Indicator for March 2025 is 2.42%, up from 2.33% in February 2025.

How does SSNC's March 2025 redemption rate compare to the previous year?

March 2025's rate of 2.42% is lower than March 2024's rate of 2.87% and below the 10-year average of 2.95%.

What percentage of hedge fund sector assets does SS&C GlobeOp's platform represent?

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

When was the highest redemption rate recorded for SSNC's Forward Redemption Indicator?

The highest redemption rate was 19.27%, recorded in November 2008.

When will the next SS&C GlobeOp Forward Redemption Indicator be published?

The next publication date is scheduled for April 22, 2025.