GlobeOp sees more urgent need for independent valuations

In its first interim management statement since going public last year, GlobeOp says trading since the end of last year has been in line with management’s expectations, with strong revenue growth and adjusted operating profit and an increase in assets under administration from USD97bn to USD100bn at the end of March. While client funds experienced net redemptions in January, both February and March saw positive net subscriptions.

‘I am very pleased with our financial performance so far this year,’ says chief executive Hans Hufschmid. ‘The momentum and achievements from last year have continued to impact results positively. Growth in our core middle- and back-office and fund administration business continues to be augmented by transaction solutions revenue, particularly from our GoOTC offering.’

Hufschmid and his colleagues believe the volatile market environment may have a negative near-term impact on hedge fund industry growth, but that it will bring new opportunities in the long term. ‘Although markets remain uncertain – there is no evidence yet of a return to full liquidity – the fundamental industry dynamics are encouraging,’ he says.

‘The turbulence since the second half of 2007 has heightened the need for independence, transparency and speed in OTC valuation – all areas of strength for GlobeOp. Our people, processes and technology platform support clients during times of market stress and adapt creatively to new opportunities in the market.’

Established in 2000, GlobeOp serves more than 150 clients worldwide and has headquarters in London and New York as well as offices in Dublin, the Cayman Islands, Harrison in New York state, Hartford and Mumbai.