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

Rhea-AI Summary

SS&C Technologies Holdings, Inc. announces positive hedge fund performance and net flows growth in February 2024. The SS&C GlobeOp Hedge Fund Performance Index recorded a 0.43% gross return, while the SS&C GlobeOp Capital Movement Index saw a 0.08% increase in net flows. Chairman Bill Stone highlighted the steady interest rates and economic uncertainties affecting hedge fund inflows.

Insights

Financial Analyst

The reported 0.43% gross return for the SS&C GlobeOp Hedge Fund Performance Index in January and the 0.08% advance in net flows for February reflect modest gains in the hedge fund sector. These figures suggest a level of stability in hedge fund performance, despite ongoing macroeconomic uncertainties and a persistent environment of higher interest rates. The correlation data indicating a 25-30% relationship with popular equity indices implies that hedge funds, as represented by this index, offer a degree of diversification relative to traditional equity investments.

For stakeholders, the 6.71% last 12-month (LTM) performance of the index, coupled with a life-to-date (LTD) return of 251.24%, signals a healthy long-term growth trajectory. However, the decline of 5.71 points in the Capital Movement Index over the past year may raise concerns about investor sentiment and potential shifts in capital allocation strategies. The historical context provided by the all-time highs and lows of the indexes serves as a benchmark for current performance levels and may influence future expectations.

Market Research Analyst

The SS&C GlobeOp Capital Movement Index's slight increase suggests a cautious optimism among investors, with a preference for liquidity as indicated by the remark on investors staying 'overweight cash.' This investor behavior aligns with a broader trend of risk aversion in the face of economic uncertainty. The Capital Movement Index, which tracks the net of subscriptions and redemptions, is critical for gauging investor confidence and capital flow trends within the hedge fund industry.

Furthermore, the SS&C GlobeOp Forward Redemption Indicator provides insights into future redemption pressures that hedge funds may face. The historical highs and lows of this indicator, particularly the all-time high during the 2008 financial crisis, serve as a reminder of how external economic shocks can significantly impact hedge fund redemptions. The current levels, in comparison to historical data, suggest a relatively stable redemption environment for hedge funds at present.

SS&C GlobeOp Hedge Fund Performance Index: January performance 0.43%
Capital Movement Index: January net flows advance 0.08%

WINDSOR, Conn., Feb. 27, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the gross return of the SS&C GlobeOp Hedge Fund Performance Index January 2024 measured 0.43%.

Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index advanced 0.08% in February.

"SS&C GlobeOp's Capital Movement Index for February 2024 shows net flow growth of 0.08% into hedge funds," said Bill Stone, Chairman and Chief Executive Officer of SS&C Technologies. "February's activity has been quiet and marks only the second month of net positive flows over the prior six months. Consistently higher interest rates, along with monetary and macro-economic uncertainty, continue to weigh on net hedge fund inflows as investors appear to stay overweight cash."

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 February 2024 stands at 124.69 points, an increase of 0.08 points over January 2024. The Index has declined 5.71 points over the past 12 months. The next publication date is March 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)	0.43%*
Year-to-date (YTD)	0.43%*
Last 12 month (LTM)	6.71%*
Life to date (LTD)	251.24%*
*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	124.61  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 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 January 2024?

The gross return of the SS&C GlobeOp Hedge Fund Performance Index in January 2024 was 0.43%.

Who is the Chairman and CEO of SS&C Technologies Holdings, Inc.?

Bill Stone is the Chairman and Chief Executive Officer of SS&C Technologies.

What was the net flows growth recorded by the SS&C GlobeOp Capital Movement Index in February 2024?

The net flows growth recorded by the SS&C GlobeOp Capital Movement Index in February 2024 was 0.08%.

What factors are affecting hedge fund inflows according to Bill Stone?

Bill Stone mentioned consistently higher interest rates and economic uncertainties as factors affecting hedge fund inflows.

What is the SS&C GlobeOp Hedge Fund Performance Index based on?

The SS&C GlobeOp Hedge Fund Performance Index is based on an asset-weighted, independent monthly window on hedge fund performance.