Shares in BlueBay Asset Management jumped 5%, or 16p, to 337p, after the London-based asset manager said full-year pre-tax profit soared by 183% as investors flocked to its bond funds.
The company received net inflows of $10.2bn, up from $5.8bn in 2009, mostly directed to fixed income products.
Assets under management rose by 41.2% to $34.3bn, showing a strong recovery, following last years' withdrawals at the height of the credit crunch.
Pre-tax profit rose to £49.7m, up from £17.5m over the previous fiscal year.
The company said in a statement that it was "confident" and "optimistic" about its prospects.
Mayfair-based BlueBay has positioned itself as one of Europe's largest bond investors, following a previous focus on hedge funds and special situation units.
Bonds have rallied this year as investors turned to traditionally safer heavens, given the volatility of equity markets. Investors are now concern bond markets could crash as soon as global economies recover and central banks raise interest rates.
