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, publishes its Interim Management Statement covering the period since 31 December 2009. Unless otherwise stated, figures are for the quarter ended 31st March 2010.
Financial Performance Update
Trading for the first quarter was in line with management’s expectations. Revenues, adjusted operating profit1 and cash flows were strong. Assets under Administration (AuA) increased to a record total of $115 billion2 as at 31 March 2010 from $109 billion at 31 December 2009.
The positive trends experienced in the second half of 2009 have continued so far in 2010. New clients brought $2 billion of assets to our platform during the first quarter, while existing clients launched funds totaling another $1 billion. Client subscriptions totaled $11 billion, partially offset by redemptions of $9 billion. Fund performance added nearly $2 billion to client asset balances.
Hans Hufschmid, chief executive officer, said: “We are very pleased with our financial performance so far this year. The momentum generated in the second half of last year has continued to positively impact our results. During the first quarter we added 12 new clients to our middle-, back-office and fund administration (MBA) business and subscriptions into client funds registered their fifth consecutive sequential quarterly gain. MBA growth was augmented by additional Transaction Solutions revenue. Costs remain well within our expectations and we have continued to see excellent operating leverage.”
Financial Position
The Company’s financial position remains strong. Cash exceeded $47 million (unaudited) as at 31 March 2010 – up $5 million since December 2009. The Company will make a dividend payment relating to 2009 on 27 May 2010 totaling approximately $2.1 million.
Outlook
Recent favorable trends across the hedge fund industry and amongst our clients have extended into the second quarter of 2010. Our new client pipeline continues to be promising and we are exploring an expanding array of business opportunities. We are making excellent progress toward meeting our key financial targets. We are well positioned for growth and remain optimistic about 2010.
D.C.