UK fixed-income house BlueBay Asset Management said that pre-tax profit had bounced to 26 million pounds for the six months. Initially a profit of 24 million pounds had been forecasted by Analysts at Singer Capital Markets.

BlueBay's Chief Executive Hugh Willis said the rise had been driven by record six month net inflows of $6.8 billion and performance gains of $2.8 billion.

Operating margins increased from 21% in the 2009 financial year to 37%due to a cost cutting program in late 2008 and early 2009.

Earlier, concerns had been raised about capacity limits on BlueBay's investment grade products at Singer, but BlueBay dispelled these fears, ensuring that the investment-grade strategy had additional capacity of about $1.5 billion, and the investment grade constrained strategy had additional capacity of about $5.5 billion.

BlueBay shares closed at 346.5 pence and Willis said that he believed the environment would be favorable for BlueBay's specialist fixed income and alternatives franchise.