Hedge fund administrator GlobeOp said new clients and new funds with existing clients added over $4 billion of AuA during the five months since June 30 2011. The growth in AuA was driven by $19 billion of subscriptions into existing client funds, partially offset by redemptions and terminations of $16 billion for the period, said GlobeOp.
In a pre-cloe trading update relating to the year ending Dec. 31 2011, GlobeOp said AuA grew to $173 billion as at Nov. 30 2011, adding that it is encouraged by the recent pace of net inflows, despite unsettled markets in the U.S. and Europe. This trend has continued into December, with subscriptions of $5 billion resulting in net inflows of nearly $2 billion.
GlobeOp said fund performance recorded an aggregate loss of $3 billion and there was a $1 billion decrease in client AuA due to the impact of foreign exchange rates on non-US dollar-denominated funds.
Hans Hufschmid, GlobeOp CEO, commented on performance: “Trading during the second half of 2011 has been strong. Revenues and profits are at record levels for GlobeOp. Cash now exceeds $100 million and adjusted operating margin is nicely above the half-year level. AuA has increased to $173 billion as at Nov. 30 2011, while the average yield of Middle-, Back-office and Fund Administration (MBA) revenue relative to AuA has remained slightly under 12 basis points.
“In addition, the mandates we have launched in the second half of this year and another that is scheduled to commence in January should help drive revenue expansion in 2012. Looking ahead, while the macro environment has been dampening new business decisions, we continue to see a broad range of revenue opportunities and believe we are well positioned for additional growth.”
(JDC)