Funds under management at BlueBay Asset Management surged by more than a third to a record $9.6bn (€7.4bn) in the second half of 2006, capping a successful year for the credit fund manager after it opened a New York office and floated in London.

BlueBay, which was set up five years ago by ex-bankers Hugh Willis and Mark Poole, said in a pre-close trading statement this morning that assets under management rose by 38% from $7bn at the end of June.