SS&C: Hedge fund redemption notices remain below long-term averages



SS&C Technologies reported that forward redemption requests from hedge fund investors edged higher in June but remained comfortably below long-term averages, suggesting allocators continue to back the asset class despite geopolitical tensions and macroeconomic uncertainty.

The latest SS&C GlobeOp Forward Redemption Indicator rose to 1.72% in June from 1.52% in May. However, the figure was well below the 2.27% recorded a year earlier and substantially beneath the 10-year June average of 3.13%, indicating that redemption activity remains historically subdued.

Bill Stone, chairman and chief executive of SS&C Technologies, said the data reflected continued confidence in hedge funds despite an increasingly uncertain investment environment.

“Ongoing global conflicts, rising inflation, and concerns over the return on investment from the massive AI infrastructure build-out are dominating the investment narrative, creating a backdrop for continued market volatility,” he said. “Stable redemption trends indicate investors continue to value the diversification benefits and risk-adjusted returns provided by hedge funds.”

Investors remain committed

The Forward Redemption Indicator measures redemption notices submitted by investors in hedge funds administered on the SS&C GlobeOp platform. Because redemption requests are typically lodged between 30 and 90 days before capital is withdrawn, the indicator provides an early view of investor sentiment towards the industry.

June’s reading continues a broader trend of resilient investor behaviour. The indicator reached an all-time low of 1.26% in April and remains far removed from the 19.27% peak recorded during the global financial crisis in November 2008.

The latest figures also follow another strong month for the industry. Earlier this month, SS&C reported that its Hedge Fund Performance Index gained 1.77% in May, lifting year-to-date returns to 6.88%, while the Capital Movement Index showed net inflows of 0.75% in June.