Boost ETP set to energize European ETF market

Oct 31st, 2012 | By | Category: ETF and Index News

Boost ETP announced its launch on Wednesday, becoming the latest entrant in the fast-growing European exchange-traded products (ETP) market. The firm’s ambition to carve out a niche as a purveyor of more exotic products looks set to further energize the European market.

BOOST ETP set to energize European ETF market

Hector McNeil and Nik Bienkowski, Boost’s founders and Co-CEOs, were instrumental in the success of ETF Securities.

Unlike the majority of incumbents, Boost harbours no plans to roll out a full complement of broad market trackers. Instead, the London-based firm intends to launch a series of more specialised products aimed at active investors, including institutions, high frequency traders and sophisticated day traders.

Boost’s origins and independence (the firm is not affiliated to a bank or fund management house) appear similar to the many successful ventures that have become a feature of the US ETP market, which is divided between large fund management companies and many more specialised providers.

While Boost was unable to comment on prospective products (the firm is still seeking regulatory approval), US-based ETF providers such as ProShares and Direxion, which have achieved great success in the leveraged long and short space, offering triple-leveraged and inverse products, are thought to have provided inspiration.

The firm’s founders and owners are Hector McNeil and Nik Bienkowski, who have been in the European ETP market since its genesis. Both McNeil and Bienkowski were Managing Partners at ETF Securities and were instrumental in growing assets under management at the firm from just $50 million to $22 billion by the time they left, in autumn 2010. Both remain significant shareholders at the firm.

Commenting on the launch, Bienkowski, Co-CEO, said: “We are very excited to launch Boost at this time. We feel that investors are ready for the dynamic product range we are about to bring to the market. Key to Boost’s uniqueness will be our product focus and independence. We want to deliver products investors want and need in an independent structure they can trust.”

McNeil, Co-CEO, added: “Boost will add significant value to the European ETP market by bringing added value products delivered through a model free from conflicts of interest.  Through the experience and dedication of our team we will bring a breath of fresh air to the market dominated by large, institutional and banking conglomerates.”

Boost’s first ETPs will be launched on the London Stock Exchange.

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