Fri, Mar 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund service provider GlobeOp sees 17% increase in assets in 2011 (to $174bn)

Wednesday, June 29, 2011
Opalesque Industry Update - GlobeOp Financial Services S.A., a leading independent provider of business process outsourcing, financial technology services and analytics to the hedge fund industry and other targeted sectors of the financial services industry, today issued a pre-close trading update relating to the first half of 2011.

Business performance has been strong during the first half of the year. Highlights include:
-- Growth in Assets under Administration (AuA) to $174 billion (1) as at 31 May 2011, an increase of 17% from $149 billion at 31 December 2010
-- Continued addition of clients and expansion of revenues
-- Strong Adjusted Operating Profit (2)
-- $77 million in cash as at 31 May 2011

Hans Hufschmid, Chief Executive Officer, on GlobeOp performance:
"GlobeOp’s performance during the first half of 2011 has been strong. Revenues, adjusted operating profit and net income have all continued to grow. Assets under Administration increased to a record total of $174 billion as at 31 May 2011, while the average yield of MBA revenue relative to AuA remained slightly under 12 basis points. Cash balances grew to $77 million by the end of May.

During the first five months of 2011, existing clients added new funds totaling $12 billion and new clients brought another $3 billion of assets to GlobeOp. In addition, client subscriptions were $20 billion versus redemptions and terminations of $19 billion. Fund performance added almost $8 billion to client asset balances and the impact of foreign currency exchange rates on non-US dollar-denominated funds resulted in an additional $1 billion increase in AuA.

Despite a challenging time for global markets, we are pleased with our progress so far this year. We remain focused on increasing our market share while carefully managing margins. We are investing in our business and during this period we have added to our sales and marketing efforts and invested in operations to expand our capabilities and deliver exceptional client service. We continue to win new mandates and see additional opportunities for growth. We believe we are well positioned for 2011.”


(press release)

(1) Assets under Administration. Consistent with past disclosure the performance of clients’ funds for the current month is not included in the measurement of AuA at the end of that month. Thus, May 2011 client fund performance is not within the 31 May 2011 figure.

(2) A non-IFRS financial measure that is calculated by the Company as operating profit prior to depreciation and amortization expense, employee costs related to share-based compensation and integration costs.


GlobeOp Financial Services 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 nearly 190 clients worldwide representing $174 billion in assets under administration. Headquartered in London and New York, GlobeOp employs more than 1,900 people on three continents through its 10 offices in the Cayman Islands, India, Ireland, the UK and U.S. www.globeop.com

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner