AUM hits $60 billion after build-up of bullish positions
05 September 2014 London
Image: Shutterstock
Assets under management in short and leverage exchange-traded products reached $60 billion at the end of August, according to Boost ETP.
This figure was unchanged from the end of July but up 3 percent on the end of December 2013.
August saw short and leverage investors repositioning bullishly in European equities and bearishly in US equities, commented Viktor Nossek, head of research at Boost ETP.
“Tactical, contrarian-style allocations, underpinned by macro risks surrounding Ukraine and the Middle East have triggered the build-up of bullish positions in markets most affected by the crises, in particular helping to drive flows of short and leverage exchange-traded products tracking German and Russian equities.”
The unwinding of large long positions in US equities in turn is likely a result of the robust showing of US equities, he added.
“With broad and tech equities having attained new highs, it has given short and leverage investors an excuse to position bearishly in August. Germany’s record low bond yields have also brought contrarians to the fore, driving the bearish flows seen in exchange-traded products tracking German debt.”
This figure was unchanged from the end of July but up 3 percent on the end of December 2013.
August saw short and leverage investors repositioning bullishly in European equities and bearishly in US equities, commented Viktor Nossek, head of research at Boost ETP.
“Tactical, contrarian-style allocations, underpinned by macro risks surrounding Ukraine and the Middle East have triggered the build-up of bullish positions in markets most affected by the crises, in particular helping to drive flows of short and leverage exchange-traded products tracking German and Russian equities.”
The unwinding of large long positions in US equities in turn is likely a result of the robust showing of US equities, he added.
“With broad and tech equities having attained new highs, it has given short and leverage investors an excuse to position bearishly in August. Germany’s record low bond yields have also brought contrarians to the fore, driving the bearish flows seen in exchange-traded products tracking German debt.”
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