Business performance has been strong during the first half of the year. Highlights include:
* Growth in Assets under Administration (AuA) to $121 billion as at 31 May 2010, an increase of nearly 50% over the last 12 months
* Addition of 16 new clients to middle, back office and fund administration (MBA) business in the first five months of 2010
* Continued operating leverage and efficient cost structure
* Strong growth in Adjusted Operating Profit
* $52 million in cash as at 31 May 2010
Hans Hufschmid, Chief Executive Officer, on GlobeOp performance: "GlobeOp performance during the first half of 2010 has been strong. Financial performance has been very good and we continue to make progress on strategic new business opportunities. We expect revenues, profits and cash flows for the first half to meet or modestly exceed managementâs targets and this gives us comfort that we are in line with external full year growth projections.
As of the end of May, AuA expanded to a record level of $121 billion. That is 12% growth thus far in 2010 and an increase of nearly 50% in the past 12 months. GlobeOp added 16 new MBA clients in the first five months of the year, with total AuA of nearly $3 billion. Existing clients are performing well in 2010 and they are attracting new capital. Aggregate client fund performance has added $5 billion to our AuA. Subscriptions totalled nearly $18 billion in the first five months while redemptions and terminations were $15 billion through May. New funds from existing clients amounted to another $2 billion of AuA.
In May 2010, GlobeOp entered into exclusive negotiations to provide investment manager operations outsourcing services for the management company of a specialist asset manager with roughly $15 billion in AuM. As part of this transaction, approximately 40 employees will transfer from the management company to GlobeOpâs employment. Pricing is commensurate with the size and the scope of the services to be provided (the mandate does not include fund administration). An agreement is expected to become effective in July 2010. Once effective, we believe full implementation and integration of staff and processes will take 9 to 12 months. The mandate is not projected to make a profit contribution until integration is close to completion.
This potential outsourcing and lift out initiative will expand GlobeOpâs service offerings and fits well with our strategic vision. Similarly, we continue to see opportunities within our traditional markets. Thus, while we will seek to leverage our core expertise more broadly across the financial services industry we remain highly focused on client satisfaction and investments to enhance service delivery and improve process efficiencies. As a result, we believe we are well positioned for a successful 2010 with an expansion of growth opportunities.â
 Consistent with past disclosure the performance of clientsâ funds for the current month is not included in the measurement of AuA at the end of that month. Thus, May 2010 client fund performance is not within the 31 May 2010 figure.
 A non-IFRS financial measure that is calculated by the Company as operating profit prior to depreciation and amortization expense, employee costs related to share-based compensation and legal claims