Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Boost lists 10 three-times leveraged commodity products

Boost lists 10 three-times leveraged commodity products

Exchange traded product (ETP) provider Boost has launched 10 three-times leveraged commodity ETPs on the London Stock Exchange, offering exposure to a raft of commodities.

The leveraged exchange traded commodities (ETC) track a range of front-month indices provided by Nasdaq, which are based on the Nasdaq Commodity Benchmark Index family.

The new range includes three-times long and inverse products on gold, oil, copper, silver and natural gas. The ETCs are designed to provide three times the daily movement – rather than any other time period  - of the underlying benchmark.

For example, if the Nasdaq Commodity Crude Oil index rises by 1% on a particular day, then the 3OIL product will rise by 3% and 3OIS will fall by 3%.

Boost recently launched 10, three times leveraged equity ETPs, based on UK, Germany Europe and US country indices.

The issuer, established by Hector McNeil and Nik Bienkowski, has ambitious expansion plans, looking to list up to 100 different exchange traded products (ETPs) across all asset classes in the next two years, starting with a broad range of equities and commodities.

Boost said demand for leveraged and short products has increased over the last few years, as markets have trended sideways, resulting in volatile returns.

It will be fully collateralised to mitigate counterparty risk, using a mix of sovereign bonds and equities. Collateral will be delivered to Boost’s account held with an independent custodian, and will be available online daily.

However, unlike Ucits-regulated exchange traded funds (ETFs), these ETPs do not have to comply with the 10% counterparty exposure rule, although the Boost ETPs reduce exposure to the range of counterparties by fully collateralising.

Boost also claims its collateral system is unique as, depending on the credit rating of the firm’s counterparties, the mix of sovereign bonds held in the collateral will slowly increase. Furthermore, no cash or collateral will be delivered by Boost to a counterparty, unless Boost has received payment first.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter