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Boost’s AUM up 200 per cent in four months

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Since mid-October assets under management (AUM) in Boost’s exchange-traded product platform have tripled to a high of USD75m, which is equivalent to AUM of USD209m, taking leverage into account. 

The most popular Boost ETP is Boost Natural Gas 3x Short Daily ETP (3NGS) with AUM of USD43m, taking leverage into account. This makes 3NGS Europe’s largest short natural gas ETP.
 
Boost’s most popular equity ETPs are Boost FTSE MIB 3x Leverage Daily ETP (3ITL) and Boost FTSE MIB 3x Short Daily ETP (3ITS), which have a combined AUM of USD44m, taking leverage into account.
 
Globally, the AUM of S&L ETPs reached a record of USD56bn at the end of January 2014, up USD0.9bn (or 1.7 per cent) from December 2013, as investors continued to increase their usage of S&L ETPs globally.  With current volatility in global markets, investors have withdrawn USD10.0bn from unleveraged ETPs while short and leveraged ETPs have experienced USD2.2bn of inflows. 
 
Consistent with rising AUM has been a large increase in exchange traded volumes.  Trading volumes of Boost ETPs on the London Stock Exchange and Borsa Italiana have recently been averaging around USD10m per day (equal to approximately USD30m per day after taking leverage into account), which is an increase of 2,000 per cent since June 2013.
 
Nik Bienkowski, co-chief executive of Boost ETP, says: “As we expected, demand for short and leverage ETPs is growing as investors understand the benefits of shorting and leveraging through an ETP.  Recently, we have seen AUM and trading volumes increase significantly.  This is due to the dual listing of Boost ETPs in both the UK and Italy, along with having an enviable operating track record.  Global AUM in short and leverage ETPs hit a high of USD56bn at the end of January.
 
“The main reason for the recent spike in trading volumes has been volatile financial markets, resulting in investors seeking ETPs to either hedge portfolios, or to take short terms tactical bets that prices will fall or bounce back, and this seems to be a potential pattern investors are now faced with for 2014. As a result, although unleveraged ETPs have suffered outflows YTD, short and leverage ETPs have experienced significant inflows.” 

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