GlobeOp: Alternative Industry Enjoys Net Inflows During August

London-based hedge fund administrator GlobeOp has reported positive asset flows into the alternative asset management space, measured by the Globe Capital Movement Index, which advanced 1.11% in August.

The Index represents the monthly net of hedge fund subscriptions and redemptions administered by GlobeOp. This monthly net is divided by the total assets under administration for GlobeOp's fund administration clients.

Cumulatively, the GlobeOp Capital Movement Index for August 2011 stands at 135.06 points (percent), an increase of 1.11 points over July 2011. The Index was based at 100 on December 31, 2005 and has advanced 14.57 points over the past 12 months. The next publication date is September 12, 2011.

BST's Analysis
While this is clearly good news for the alternative asset management sector, it's far too early to get excited at the prospect that this net inflow might represent the start of a long-term trend. Closer inspection of the Index reveals that GlobeOp reported net outflows during April and June of this year, although those figures were modest - 0.02 percent and 0.11 percent respectively.

The last significant outflows were experienced way back in October 2009 (-3.76 percent), and since then the Index has been pretty much "in the black", although inflows remain modest. Still, any capital inflows to the alternative asset management sector, not matter how modest, is good news.

About the Index
Published on the eighth business day of each month, the GlobeOp Capital Movement Index presents a view of investments in hedge funds on the GlobeOp administration platform. Data is based on 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 5th business day.