GlobeOp Financial Services S.A., a 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 publishes its Interim Management Statement covering the period since 31 December 2008.
Trading for the period has been in line with management’s expectations. Assets under Administration (AuA) have grown to $91 billion1 as of 31 March 2009 from $88 billion at 31 December 2008. As anticipated, first quarter revenue has been impacted by the 9% decline in average AuA versus the same period last year. Adjusted operating profit2 has continued to perform well as expenses remain closely managed.
“I am encouraged by the level of fund inflows during the first quarter of 2009,” says Hans Hufschmid, chief executive officer. “New clients with AuA of nearly $12 billion, along with new funds from existing clients of $5 billion and subscription inflows of $3 billion, offset first quarter redemptions and terminations, which we knew would be substantial, as referenced in our 2008 preliminary results announcement. In addition, client fund performance generated over $1 billion, a positive sign that hedge fund managers may have begun adapting to the changing market environment. I am also pleased with our profit and cash flow performance, which are a result of our focus on cost management and continuing efforts to enhance productivity. The significant investments in people, processes and technology that we have been making over the years enable us to deliver innovative and high quality services to our clients while generating strong financial results. We continue to invest in the business and we are further strengthening our competitive position.”GlobeOp’s financial position remains strong. Cash totaled $43 million (unaudited) as at 31 March 2009 – up $6 million from March 2008. The Company continues to have no debt.
D.C.