GlobeOp, the an independent financial administrator specialising in middle and back-office services has revealed that its Assets Under Administration (AuA) has increased by 12%, to a record $167 billion in the quarter 31 December 2010, to 31 March 2011.
These numbers also represent an increase of 46% in the past 12 months.In GlobeOps interim management statement, during the first quarter, existing clients added new funds with $11 billion of AuA and new clients brought another $1 billion of assets to GlobeOp.
In addition, client subscriptions totalled $11 billion for the quarter versus redemptions of $10 billion. Fund performance added $4 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.
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.
“We are pleased with our growth so far this year,” says Hans Hufschmid, CEO at GlobeOp. “In the first quarter, we added new business with our existing clients as well as with new clients. We also signed a new $1.5 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.”
During April this year, GlobeOp also launched the GlobeOp Hedge Fund Index, which provides an 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,” adds Hufschmid.
As part of the statement, GlobeOp revealed that the Kenmar Group will start to commence fund administration services with GlobeOp in the second quarter. it also recently won an MBA mandate with another new client which is expected to commence in the late summer with up to $2 billion in AuA.
Also during Q2, GlobeOp is scheduled to commence OTC processing services related to a Transaction Solutions contract which was executed with a major European re-insurance specialist in late 2010.
(LB)