GlobeOp Financial Services, has launched the GlobeOp NAV Transparency Report to help fund managers provide investors with greater visibility into the monthly calculation of a portfolio’s net asset value (NAV).
“Fund managers recognise that good governance attracts further investment,” said Tony Glickman, global head of Risk Services at GlobeOp. “Pension funds and other institutional investors, guided by the ‘Trust but Verify’ principle, have made independent confirmation of assets, positions and valuations a priority. In 2009, GlobeOp saw a 30 percent increase in due diligence meetings with investors, as well as a significant increase in the sophistication and the number of questions asked. Our new NAV Transparency Report clarifies exactly the value we as an administrator add to the NAV production process. Delivered monthly online, its independently derived data provides investors with additional transparency for their ongoing operational due diligence.”
“Investors, fund managers, auditors and regulators have all strengthened their focus on fund governance,” said Vernon Barback, GlobeOp president and COO. “We believe increased investor reporting is an important, positive change for the hedge fund industry overall.”
According to a recently released KPMG ‘Future of Alternative Investments’ report, 78 percent of investor respondents said they saw transparency as a major industry challenge, with 67 percent also citing governance and regulations.
In a standardised format, the GlobeOp NAV Transparency Report independently confirms pricing sources, position reconciliations, fund assets and liabilities, counterparty risk concentration, portfolio liquidity and where assets are held in custody. Available for traditional hedge funds and managed accounts, the report enables fund managers to enrich investor communications with increased visibility into the portfolio risks of the fund while protecting confidential data.
The GlobeOp NAV Transparency Report – designed following extensive consultation with investors, fund managers, auditors and legal firms – features:
– Analyses of levels of independent pricing, reconciliations and other administrative processing services provided to the fund.
– Trading asset & liability balances.
– Aggregated pricing analyses confirming the percentages of the NAV independently confirmed or received directly from the manager. Data is structured to reflect the fund pricing policy.
– Fund liquidity according to the volume of assets assigned by the manager to the valuation levels defined by the ASC 820 (FAS 157) accounting standard.
– Third-party exposure based on the fund’s main relationships including counterparties and prime brokers.
Produced monthly, then reviewed and authorised for investor distribution by the fund manager, the GlobeOp NAV Transparency Report is distributed to investors online as part of the monthly GoBook investor statement package.
GoBook data, based on independent, third-party information, is generated from the trade and accounting data that GlobeOp maintains for its hedge fund clients. Through a single convenient platform, authorised investors can access advanced portfolio risk analytics, monthly statements, performance and performance attribution reports and manager newsletters.
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