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GlobeOp Forward Redemption Indicator shows that investors' trust remains with hedge funds

Wednesday, September 21, 2011

Hans Hufschmid
Opalesque Industry Update - The GlobeOp Forward Redemption Indicator for September 2011 measured 3.11%, up from 2.71% in August.

“September 2011 was the lowest September since the Index began,” said Hans Hufschmid, chief executive officer, GlobeOp Financial Services. “In fact, monthly redemptions have been lower year on year for the past 24 months running. Investor sentiment continues to be positive.”

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 October 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. Corporate website: Source

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