William C. Stone, Chairman of the Board and CEO of SS&C Technologies
Be it tax reporting or fund accounting, the arena of alternative investments demands exceptional agility, timely and informed decisions, flawless execution, and strict compliance with complex regulations. Firms are realizing that robust technology solutions are absolutely crucial to expediently and accurately administer investments. To this end, financial services companies are looking to leverage novel software and data to reinvent ways for mitigating risks and managing trade assets. This is where SS&C Technologies—the world’s largest hedge fund and private equity administrator as well as the largest mutual fund transfer agency—is moving the needle. The company leverages its unique business model to combine end-to-end expertise across financial services operations with software and solution to cater to financial services and healthcare industries.
Founded in 1986 and headquartered in Windsor, Connecticut, SS&C is home to over 22,000 employees across 150 office locations in 35 countries worldwide. The company owns and operates the full technology stack across front-to-back-office operations, regulatory reporting, securities accounting, performance and risk analytics, and healthcare information processes. With its trusted and proven technology, SS&C offers an unparalleled level of scalable capabilities for the most complex portfolios, the most sophisticated strategies, and the highest volumes of transactions. With the unique blend of technology, services, and expertise, the company enables clients to master the highly challenging alternative investment space. Powered by the knowledge and experience of financial and accounting professionals, system engineers, legal and compliance experts, as well as professional services and technical support teams, SS&C understands complex fund strategies and structures, as well as intricacies of regulation across virtually all jurisdictions. In addition to its comprehensive technology and services capabilities, the company is home to the world’s number-one fund administrator, SS&C GlobeOp.
Optimizing Hedge Fund Administration
The hedge fund industry has adapted to several changes over the years—from new regulations to the massive shift to work-from-home operations in the spring of 2020. As offices across the world have transitioned their employees to remote operations to keep them safe and mitigate the spread of COVID-19, the need to ensure process and staff efficiency has come to the fore. Also, a few organizations are beginning to consider that almost all the elements of new work-from-home reality may become permanent, thanks to AI, machine learning, and other technologies. The company believes that by reorienting from a services-first to a technology-first mindset, organizations will be able to enable their staff to work remotely. To this end, SS&C offers front-to-back technology solutions addressing the needs of the investment management community through native born-in-the-cloud applications. The company enables hedge fund managers to run their businesses more effectively, compete as well as win new business, protect against a variety of risks, and deliver superior service and digital experiences to investors. “In the year since, hedge funds have experienced generally strong asset retention, reflecting investor confidence in managers’ ability to generate attractive risk-adjusted returns.
Capital movements for March 2021 suggest, while the comparisons with year-ago numbers may begin to level out, the positive trend in asset retention remains intact,” says William C. Stone, Chairman of the Board of Directors and CEO of SS&C Technologies.
We prioritize shareholder returns. SS&C will continue to exercise prudent cash flow strategy as the market adjusts in 2021 and as SS&C performs
Along the same lines, SS&C has launched SS&C Algorithmics Scenarios-as-a-Service (ScaaS)—a subscription-based risk scenario and simulation service. By leveraging innovative financial risk modeling and the latest global datasets, ScaaS offers stress testing scenarios on macroeconomic factors. The impact of the COVID-19 pandemic is the first scenario in the series on which the company is focused. ScaaS pandemic risk service uses machine learning, advanced financial risk modeling and innovative stress-testing methodology to deliver specialized stress-tests over one, five, and ten-day periods, thereby helping organizations make decisions in a dynamic market. “Our comprehensive library of stress scenarios enables organizations to plan for changing market conditions with more accurate risk assessments. The result is a cost-effective and efficient solution for financial institutions to help prepare for what’s ahead,” remarks Mina Wallace, SVP and General Manager, SS&C Algorithmics.
SS&C’s expertise has been recognized by several leading trade, media and business organizations. The company was named the Best European Hedge Fund Administrator and Best European Transfer Agent in 2020. These awards demonstrate the company’s commitment to delivering superior solutions that drive the success of clients across the world.
Expanding Investment Management Capabilities
SS&C has enhanced the award-winning Eze Investment Suite (EIS) that features a set of fully-integrated applications providing first-class asset management functionality to streamline investment operations. The company expands EIS to provide unmatched productivity, flexibility, and scalability.
The list mentions some of the key highlights of the latest EIS release.
• A new mobile app to help traders, portfolio managers as well as compliance officers conducting critical investment activities on the go.
• New OEMS Auto-Trade Sync capability that automatically syncs trade entries and updates to deliver a seamless front-office experience.
• New EMS xAPI, a programming language-independent API platform, to connect Eze EMS with a trader’s tools and models.
Our comprehensive library of stress scenarios enables organizations to plan for changing market conditions with more accurate risk assessments
• Enhanced fixed income coverage across Eze OMS together with fixed-income analytics and repos.
• Improved workflow and usability in Eze OMS through the expansion of investment rules library in order to augment modeling speed and efficiency.
• Automated Trading enhancements that facilitate more efficient execution with low-touch order automation.
• Instrument coverage in Eze PMA that supports mutual fund, ETF and unit trust valuation, and accruals for money market mutual funds. Eze PMA has also added a cash projections report and reduced run-time to import not only trades, financial reporting, but also performance measurement calculations by 90 percent.
SS&C has recently acquired Innovest Systems, the provider of web-based technology systems for trust accounting, payments, and unique asset servicing. This acquisition allows SS&C to broaden its wealth management technology suite. As SS&C and Innovest are leaders and innovators in portfolio management and trust operations, correspondingly, they integrate their strengths to create a truly unique full-service wealth management platform.
In addition, the acquisition of Investrack business from UAE-based Globacom Technologies helps SS&C’s commitment to providing innovative products and services to elevate the client experience. Investrack helps SS&C extend its global strategy, particularly in the Middle East, by helping clients deepen their own client relationships and differentiate in a competitive market. By acquiring Investrack, SS&C strengthens its offering for digital investor engagement and adds best-in-class technology, people, and expertise. Through the long-term partnership of the duo, Investrack’s tools and services are integrated with SS&C’s solutions, including APX®, Tradex®, Geneva® and Moxy®, to seamlessly connect asset managers and end-investors via a modern user experience.
With a series of carefully selected acquisitions and a prime focus on organic growth, the breadth and depth of SS&C’s expertise in financial services and healthcare technology are unmatched. Technology will continue to drive the hedge fund industry forward, and SS&C enables hedge fund managers to keep pace with changes and rise above the competition by offering the world’s leading technology-powered solutions. “Despite the unprecedented challenges of the 2020 environment, SS&C finished the year strong with over $1.1 billion in operating cash flow. We prioritize shareholder returns. SS&C will continue to exercise prudent cash flow strategy as the market adjusts in 2021 and as SS&C performs,” notes Stone.