Tue, Jan 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. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Top performing private equity firms you should invest in[more]

    Komfie Manalo, Opalesque Asia: Professor Oliver Gottschalg of Paris-based HEC Business School, also known as Ecole des Hautes Etudes Commerciales de Paris has released his annual ranking of the top performing private equity firms. The 2014 HEC-DowJones Private Equity Performance Ranking

  4. Comment - Why invest in hedge funds if they don't outperform the market?[more]

    From Forbes.com: Hedge funds have always been a bit exotic and an enigma to some, but bottom line they are supposed to produce good returns using a range of strategies including global macro, event driven and relative value (arbitrage). And, sophisticated or high-net-worth individuals (HNWIs) could

  5. Owen Li 'truly sorry' for blowing up $100m of hedge fund’s assets[more]

    From CNBC.com: A hedge fund manager told clients he is "truly sorry" for losing virtually all their money. Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March. "I take r