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UPDATE 1-Inflows lift BlueBay pretax profit by 200 pct
Fri, 19th Feb 2010 07:47
LONDON, Feb 19 (Reuters) - UK fixed-income house BlueBay Asset Management said on Friday that pre-tax profit had bounced to 26 million pounds for the six months to end-December on the back of strong inflows and cost reductions.
Analysts at Singer Capital Markets had forecast a profit of 24 million pounds, up from 11.4 million pounds in the previous year's first half.
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.
Combined with the effect of a cost cutting programme in late 2008 and early 2009, this lifted operating margins from 21 percent in the 2009 financial year to 37 percent in the first half of the current year.
Analysts at Singer had raised concerns about capacity limits on BlueBay's investment grade products which have seen strong inflows over the last 12 months.
BlueBay tried to allay these fears, saying that at end-January
it estimated 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.
Willis said that for 2010 and beyond, he believed the environment would continue to be favourable for BlueBay's specialist fixed income and alternatives franchise.
BlueBay shares closed at 346.5 pence on Thursday.
(Reporting by Claire Milhench; Editing by Joel Dimmock) Keywords: BLUEBAY/RESULTS
(claire.milhench@thomsonreuters.com; +44 (0)20 7542 3571; Reuters Messaging claire.milhench.thomsonreuters.com@reuters.net)
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Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Analysts at Singer Capital Markets had forecast a profit of 24 million pounds, up from 11.4 million pounds in the previous year's first half.
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.
Combined with the effect of a cost cutting programme in late 2008 and early 2009, this lifted operating margins from 21 percent in the 2009 financial year to 37 percent in the first half of the current year.
Analysts at Singer had raised concerns about capacity limits on BlueBay's investment grade products which have seen strong inflows over the last 12 months.
BlueBay tried to allay these fears, saying that at end-January
Willis said that for 2010 and beyond, he believed the environment would continue to be favourable for BlueBay's specialist fixed income and alternatives franchise.
BlueBay shares closed at 346.5 pence on Thursday.
(Reporting by Claire Milhench; Editing by Joel Dimmock) Keywords: BLUEBAY/RESULTS
(claire.milhench@thomsonreuters.com; +44 (0)20 7542 3571; Reuters Messaging claire.milhench.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
