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

Rhea-AI Summary

SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) announced that the gross return of the SS&C GlobeOp Hedge Fund Performance Index November 2023 measured 1.99%. Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index declined 0.47% in December.

Positive

• None.

Negative

• The capital flows for hedge funds showed a decline of 0.47% in December, reflecting the weakest net capital flows since 2016. This indicates a challenging environment for active investors due to high interest rate volatility and concentrated equity market leadership.

Insights

Financial Analyst

The SS&C GlobeOp Hedge Fund Performance Index indicates a gross return of 1.99% for November 2023, which is a noteworthy figure for investors and analysts monitoring hedge fund performance. The decline in the Capital Movement Index by 0.47% in December suggests a contraction in net capital flows into hedge funds, potentially indicating investor caution or a shift in investment strategy.

This data is particularly relevant for stakeholders in the hedge fund industry, including fund managers, investors and financial service providers. A weaker trend in capital flows could imply a challenging investment climate, possibly due to interest rate volatility and concentrated equity market leadership, as mentioned by SS&C Technologies' CEO.

For long-term implications, the lowest net capital flows since 2016 could signal a shift in investor confidence or a reevaluation of hedge fund strategies in light of current market conditions. The correlation of the SS&C GlobeOp Performance Index to major equity indices being relatively low underscores its value in offering a diversified investment performance perspective.

Hedge Fund Manager

From a hedge fund management standpoint, the reported performance and capital movement data serve as a barometer for the industry's health. The 1.99% return in November is a positive sign of hedge fund performance, albeit it is crucial to consider the context of broader market performance when evaluating this figure.

The reported decline in net flows could prompt fund managers to reassess their strategies, especially in an environment characterized by high interest rate volatility. The historical data provided, such as the all-time highs and lows, offer insights into the fund flows over time, which can be instrumental in strategic planning and risk assessment.

Economist

An economist's perspective would highlight the broader economic implications of the SS&C GlobeOp data. The decrease in capital flows may reflect broader economic trends such as monetary policy shifts, geopolitical tensions, or changes in market liquidity. The performance index's low correlation to equity markets suggests that hedge funds continue to provide a non-correlated investment option, which can be appealing during times of market uncertainty.

Understanding the economic forces that drive these investment patterns is crucial for anticipating future trends in hedge fund investments and the potential impact on the global financial landscape.

SS&C GlobeOp Hedge Fund Performance Index: November performance 1.99%
Capital Movement Index:  December net flows decline 0.47%

WINDSOR, Conn., Dec. 19, 2023 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the gross return of the SS&C GlobeOp Hedge Fund Performance Index November 2023 measured 1.99%.

Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index declined 0.47% in December.

"SS&C GlobeOp's Capital Movement Index finished 2023 with a slightly weaker trend than we've seen in most years," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. "December net flows were down -0.47% compared to the same period a year ago, showing net negative flows for four of the final six months of 2023. Full year 2023 showed the weakest net capital flows for hedge funds since 2016. These results reflect the challenges for active investors as interest rate volatility stays high and equity market leadership remains concentrated."

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 December 2023 stands at 127.43 points, a decrease of 0.47 points over November 2023. The Index has declined 4.35 points over the past 12 months. The next publication date is January 12, 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)	1.99%*
Year-to-date (YTD)	6.25%*
Last 12 month (LTM)	6.99%*
Life to date (LTD)	242.68%*
*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	127.43  in December 2023
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	4.35% in December 2022
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.

Additional information about
SS&C (Nasdaq: SSNC) is available at www.ssctech.com.
Follow SS&C on Twitter, LinkedIn and Facebook.

SOURCE: SS&C

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SOURCE SS&C

FAQ

What is the 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.

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.

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

The gross return of the SS&C GlobeOp Hedge Fund Performance Index in November 2023 was 1.99%.

How did the capital movement index perform in December 2023?

The capital movement index declined by 0.47% in December 2023.

What is the correlation of the SS&C GlobeOp Performance Index to popular equity market indices?

The correlation of the SS&C GlobeOp Performance Index to many popular equity market indices has been approximately 25% to 30% since its inception.

What does the SS&C GlobeOp Capital Movement Index represent?

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