Tue, Aug 30, 2016
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. The Big Picture: Water is single largest environmental investment opportunity[more]

    Benedicte Gravrand, Opalesque Geneva: Water, the world’s most precious and undervalued commodity, is set to lead the socially and environmentally responsible investment themes. This is according to specialist fund manager Thomas Schumann. His firm,

  2. Commodities - Hedge funds pile into bullish bets on U.S. crude by most on record, Rig count steady, hedge funds dump short contracts on 63 million barrels, Hedge funds bail on Copper as Goldman predicts ‘supply storm’, Hedge funds pile up bets against sterling[more]

    Hedge funds pile into bullish bets on U.S. crude by most on record From BRecorder.com: Hedge funds and other speculators raised their bullish bets on US crude oil in the past week by the most on record fuelled by speculation that Organization of the Petroleum Exporting Countries will agr

  3. Investing - U.S. hedge fund Marathon makes Brexit bet on European property, Hedge funds love Liberty and John Malone, DE Shaw could bid for control over TerraForm Power, New York hedge fund increases stake in Tronc as sale talks continue, Don't wait too long to check this +20% value fund's ideas[more]

    U.S. hedge fund Marathon makes Brexit bet on European property From FT.com: Marathon, a $13bn US hedge fund, is building a big Brexit trade, increasing its investments in property across Ireland, France, Germany and the Netherlands, in a bet that they will be among the big beneficiaries

  4. Opalesque Exclusive: Investors struggle to identify the better performing hedge funds[more]

    Komfie Manalo, Opalesque Asia: Fund managers and investors believe that performance is one of the major factors driving change in the hedge fund industry, a Preqin survey showed in its latest Hedge Fund Spotlight. Preqin said that the disappoin

  5. …And Finally - Baby born on Cebu Pacific airplane gets 1 million air miles[more]

    From CNN.com: Here's one kid who'll probably learn to fly before she can crawl. After being born four hours into a flight from Dubai to Manila, baby girl Haven has been gifted 1 million air mile points. Haven's mom went into labor more than five weeks early while flying on an aircraft op