SS&C GlobeOp Hedge Fund Performance Index and Capital Movement Index

Rhea-AI Summary

SS&C Technologies Holdings, Inc. announced that the SS&C GlobeOp Hedge Fund Performance Index measured 2.14% in December 2023, while the SS&C GlobeOp Capital Movement Index declined 2.37% in January 2024. Investors are navigating uncertainties in the global market environment, evaluating factors such as geopolitical conflicts, higher interest rates, and mounting public debt.

Insights

Market Research Analyst

The SS&C GlobeOp Hedge Fund Performance Index showing a December performance of 2.14% is indicative of the hedge funds' ability to generate positive returns amidst market conditions prevalent at the time. The performance of hedge funds, as reflected by such indices, is critical for investors seeking diversified investment vehicles that may offer a hedge against market volatility. The relatively low historical correlation of 25% to 30% with popular equity market indices suggests that hedge funds, as a class, maintain a level of independence from broader market movements, potentially providing stability and risk mitigation benefits to investment portfolios.

However, the Capital Movement Index's decline of 2.37% in January signals a net outflow from hedge funds, which could be interpreted as investor caution or a shift in investment strategy, possibly due to the geopolitical conflicts and economic factors mentioned. This movement is significant as it exceeds the five-year average for January redemptions, hinting at a change in investor sentiment or reaction to the global market environment. The decline in net flows can affect the liquidity and operational strategies of hedge funds, which in turn could influence their performance and the decisions made by fund managers.

Financial Analyst

The reported decline in the SS&C GlobeOp Capital Movement Index by 2.37 points, marking a new 12-month low, can have tangible implications for the hedge fund industry. It reflects investor behavior and confidence, which financial analysts closely monitor as a barometer for the sector's health. The index's historical data, including all-time highs and lows, provide a context for evaluating current trends against historical performance. For instance, the all-time high in September 2013 contrasted with the current decline could suggest a cyclical pattern or a response to external economic pressures.

From a financial analysis standpoint, the cumulative index value and the year-to-date performance figures serve as indicators of the industry's trajectory and are vital for stakeholders, including investors and fund managers, in strategizing their next moves. The life-to-date performance of 250.01% gross since inception reflects the long-term growth potential of hedge funds, although past performance is not indicative of future results. Such data points are essential for financial modeling and forecasting future fund performance.

Economist

An economist would interpret the Capital Movement Index's decrease as a potential signal of broader economic trends and investor sentiment. The net outflows might suggest that investors are becoming risk-averse, possibly reallocating their capital to assets perceived as safer amid economic uncertainties like rising interest rates and public debt concerns. This behavior can have ripple effects across the financial markets, influencing asset prices and the availability of capital for investment.

Moreover, the SS&C GlobeOp Forward Redemption Indicator, with its historical peaks and troughs, offers insights into future redemption pressures that hedge funds might face. Economists can use this data to anticipate shifts in capital availability and to gauge the hedge fund industry's resilience to economic shocks. The indicator's historical data points, such as the all-time high in November 2008 during the financial crisis, serve as benchmarks for current investor behavior in the context of economic stressors.

SS&C GlobeOp Hedge Fund Performance Index: December performance 2.14%
Capital Movement Index: January net flows decline 2.37%

WINDSOR, Conn., Jan. 18, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the gross return of the SS&C GlobeOp Hedge Fund Performance Index December 2023 measured 2.14%.

Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index declined 2.37% in January.

"SS&C GlobeOp's Capital Movement Index for January 2024 was -2.37%, which exceeded the -1.46% in net January redemptions average over the past five years," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. "Investors continue to navigate uncertainties within the dynamic global market environment, evaluating factors such as geopolitical conflicts, higher interest rates, and the growing concern of mounting public debt."

SS&C GlobeOp Hedge Fund Performance Index

The SS&C GlobeOp Hedge Fund Performance Index is an asset-weighted, independent monthly window on hedge fund performance. On the ninth business day of each month it provides a flash estimate of the gross aggregate performance of funds for which SS&C GlobeOp provides monthly administration services on the SS&C GlobeOp platform. Interim and final values, both gross and net, are provided in each of the two following months, respectively. Online data can be segmented by gross and net performance, and by time periods. The SS&C GlobeOp Hedge Fund Performance Index is transparent, consistent in data processing, and free from selection or survivorship bias. Its inception date is January 1, 2006.

The SS&C GlobeOp Hedge Fund Performance Index offers a unique reflection of the return on capital invested in funds. It does not overstate exposure to, or the contribution of, any single strategy to aggregate hedge fund performance. Since its inception, the correlation of the SS&C GlobeOp Performance Index to many popular equity market indices has been approximately 25% to 30%. This is substantially lower than the equivalent correlation of other widely followed hedge fund performance indices.

SS&C GlobeOp Capital Movement Index

The SS&C GlobeOp Capital Movement Index represents the monthly net of hedge fund subscriptions and redemptions administered by SS&C GlobeOp on the SS&C GlobeOp platform. This monthly net is divided by the total assets under administration (AuA) for fund administration clients on the SS&C GlobeOp platform.

Cumulatively, the SS&C GlobeOp Capital Movement Index for January 2024 stands at 124.80 points, a decrease of 2.37 points over December 2023. The Index has declined 5.14 points over the past 12 months. The next publication date is February 13, 2024.

Published on the ninth business day of each month, the SS&C GlobeOp Capital Movement Index presents a timely and accurate view of investments in hedge funds on the SS&C GlobeOp administration platform. Data is based on actual subscriptions and redemptions independently calculated and confirmed from real capital movements, and published only a few business days after they occur. Following the month of its release, the Index may be updated for capital movements that occurred after the fifth business day.

SS&C GlobeOp Hedge Fund Performance Index

Base	100 points on 31 December 2005
Flash estimate (current month)	2.14*
Year-to-date (YTD)	8.52%*
Last 12 month (LTM)	8.52%*
Life to date (LTD)	250.01%*
*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	130.54 in March 2023
12-month low	124.80 in January 2024
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	3.64% in December 2023
12-month low	1.82% in July 2023
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 Hedge Fund Index is available at www.sscglobeopindex.com or through a link on the homepage of www.sscglobeop.com. Alert and RSS subscriber options are available at www.sscglobeop.com. Index Twitter comments: #HFindex.

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. Some 20,000 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.

SOURCE: SS&C

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

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SOURCE SS&C

FAQ

What was the gross return of the SS&C GlobeOp Hedge Fund Performance Index in December 2023?

The gross return of the SS&C GlobeOp Hedge Fund Performance Index in December 2023 was 2.14%.

What was the decline in the SS&C GlobeOp Capital Movement Index in January 2024?

The SS&C GlobeOp Capital Movement Index declined 2.37% in January 2024.

What factors are investors evaluating in the global market environment?

Investors are evaluating factors such as geopolitical conflicts, higher interest rates, and mounting public debt in the global market environment.

What is the SS&C GlobeOp Capital Movement Index?

The SS&C GlobeOp Capital Movement Index represents the monthly net of hedge fund subscriptions and redemptions administered by SS&C GlobeOp on the SS&C GlobeOp platform.

What does the SS&C GlobeOp Hedge Fund Performance Index reflect?

The SS&C GlobeOp Hedge Fund Performance Index reflects the return on capital invested in funds and does not overstate exposure to any single strategy.