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Bluebay shares boosted after assets rise 35pc

SHARES in fixed income manager BlueBay Asset Management rose yesterday, after it reported strong assets under management (AUM) for its fourth quarter to June.<br /><br />The company said end-June assets were up 35 per cent on end-March to $24.3bn (&pound;14.8bn) -- 16 per cent better than a UBS forecast of $21bn, and 17 per cent better than a Noble forecast.<br /><br />Broker Singer Capital Markets said that BlueBay stood out within the asset management sector as having the strongest fund flows but cautioned that as these flows have been into lower margin long-only funds, AUM growth will not translate into revenue growth at the same rate.<br /><br />Chief executive Hugh Willis said that BlueBay had continued to see outflows from its long/short funds, but was beginning to see signs of the record long-only demand broadening out into higher margin products.<br /><br />Shares in the firm closed up 12.6 per cent at 236.75p.