GlobeOp Financial Services’ assets under administration (AuA) increased to a record total of USD167 billion as at 31 March 2011, a 12% increase from USD149 billion at 31 December 2010 and a 46% increase in the past 12 months, according to the company’s interim management statement covering the period since 31 March 2011.
During the first quarter, existing clients added new funds with USD11 billion of AuA and new clients brought another USD1 billion of assets to GlobeOp. In addition, client subscriptions totalled USD11 billion for the quarter versus redemptions of USD10 billion. Fund performance added USD4 billion to client asset balances and the impact of foreign currency exchange rates on non-US dollar-denominated funds resulted in an additional USD1 billion increase in AuA. Reflecting the size, scope and workload of the inflows during the period, as well as existing client arrangements entering the year, the average yield of MBA revenue relative to AuA was slightly under 12 basis points during the first quarter.
Hans Hufschmid, chief executive officer, says: “We are pleased with our growth so far this year. In the first quarter, we added new business with our existing clients as well as with new clients. We also signed a new USD1.5 billion MBA client (the Kenmar Group), a conversion to the GlobeOp platform scheduled for the second quarter. Costs remain under control and cash flows continue to be strong. In addition, during April we launched the GlobeOp Hedge Fund Index. The Index is a timely, independent and substantial set of data that provides a unique window on capital movements and hedge fund investor sentiment. We anticipate adding further indices this year, including performance measurement. GlobeOp is the first fund administrator to provide this level of data and transparency to the marketplace and it is encouraging to see the positive industry reaction.”
The company’s financial position meanwhile remains strong. Cash totalled USD73 million (unaudited) as at 31 March 2011, a USD26 million increase, 54%, since March 2010. The company will make its planned dividend payment relating to 2010 on 26 May 2011 totalling approximately USD5.0 million.