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GlobeOp hedge fund flow indices indicate stable investor sentiment

Wednesday, April 13, 2011

Hans Hufschmid
Opalesque Industry Update - Hedge fund flows as measured by the GlobeOp Capital Movement Index were negative 0.05% in April, and the GlobeOp Forward Redemption Indicator declined slightly to 3.26% during the month of March.

“Investor sentiment remained calm during the reporting period, despite events in Japan and in the Middle East” said Hans Hufschmid, chief executive officer, GlobeOp Financial Services.

The GlobeOp Capital Movement Index represents the monthly net of subscriptions to and redemptions from hedge funds administered by GlobeOp, divided by the total assets under administration (AuA) for GlobeOp’s fund administration clients. Redemptions were slightly greater than subscriptions for the month of April.

Cumulatively, the GlobeOp Capital Movement Index for April 2011 stands at 130.19 points, a decrease of 0.05 points over March 2011. The Index was based at 100 on December 31, 2005 and has advanced 17.19 points over the past 12 months. The next publication date is May 11th, 2011.

The GlobeOp Forward Redemption Indicator for March 2011 stands at 3.26%, a decrease of 0.10% from February 2011. The Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by GlobeOp, divided by the AuA at the beginning of the month for GlobeOp fund administration clients. Going forward, the Forward Redemption Indicator will be published on the 15th business day of each month. The next publication date is April 21st, 2011.

Published on the eighth business day of each month, the GlobeOp Capital Movement Index presents a timely and accurate view of investments in hedge funds on the 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.

Published on the 15th business day of the month, the GlobeOp Forward Redemption Indicator presents a timely and accurate view of the redemption pipeline for investors in hedge funds on the GlobeOp administration platform. Movements in the Indicator reflect investor confidence in their allocations to hedge funds. Indicator data is based on actual investor redemption notifications received. Unlike subscriptions, redemption notifications are typically received 30-90 days in advance of the redemption date. Investors may, and sometimes do, cancel redemption notices. In addition, the establishment and enforcement of redemption notices may vary from fund to fund. Forward redemptions as a percentage of GlobeOp assets under administration have trended significantly lower since reaching a high of 19.27% in November 2008.

(press release)

About GlobeOp Financial Services
GlobeOp Financial Services (LSE:GO.) is an independent financial administrator specializing in middle- and back-office services and integrated risk-reporting to hedge funds, asset management firms and other sectors of the financial industry -- including family wealth, banks, insurance companies, pension funds and corporate treasuries. By outsourcing to GlobeOp, clients can reduce their technology investments and operational risks, while increasing their focus on asset generation and portfolio management. Established in 2000, GlobeOp's innovative scope of services is engaged by 190+ clients worldwide representing $159 billion in assets under administration. Headquartered in London and New York, GlobeOp employs more than 1,800 people on three continents through its 10 offices in the Cayman Islands, India, Ireland, the UK and U.S. Further information: www.globeop.com

About the GlobeOp Hedge Fund Index
GlobeOp Financial Services (LSE:GO.) offers an independent monthly window onto hedge fund capital flows following the launch in April 2011 of the first indices in the GlobeOp Hedge Fund Index family. It is the first index by a hedge fund administrator, and offers clients, investors and the overall market transparency on liquidity and investor sentiment based on a significant platform of assets. The GlobeOp Hedge Fund Index is available on www.globeopindex.com

The first two Indices - the GlobeOp Capital Movements Index and the GlobeOp Forward Redemption Indicator - provide monthly reports based on actual and anticipated capital movement data independently collected from all hedge fund clients for whom GlobeOp provides administration services. While individual fund data is anonymized by aggregation, Index data will be based on the same reconciled fund data GlobeOp uses to produce fund net asset value (NAV) reports. GlobeOp’s total assets under administration represent approximately eight to 10 percent 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 data about AuA.

GlobeOp Capital Movements Index
Base 100 points on 31 December 2005
All time high 145.81 in September 2008
All time low 99.67 in January 2006
12-month high 130.24 in March 2011
12-month low 115.78 in May 2010
Largest monthly change 15.21 in January 2009

GlobeOp Forward Redemption Indicator
All time high 19.27% in November 2008
All time low 2.28% in October 2010
12-month high 4.59% in December 2010
12-month low 2.28% in October 2010
Largest monthly change 9.60% in November 2008

- FG

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