have looked at similar in other applications (non-turbo) - not sure in this specific application, but in general, the theory appears to be that wrapping the hot bits retains the heat within the hot bits, which increases gas velocity & thus gas flow. presumably that's why they claim to reduce turbo lag i.e. increased gas velocity should mean that the turbo is spooling up faster in all conditions than a similar 'non-wrapped' turbo/manifold so there's less of a lag before the turbo comes on. dunno if it's true or works, but it should have the by-product of reducing under bonnet temps.
caution though, since a) it's usually expensive and b) in some cases, the way in which you wrap the hot bits can force the heat back into the heads, turbo or other components, which are usually designed to rely on the heat dissipating into the atmosphere i.e. depending on which bits & how you wrap them up, you may find more power but also find much higher head, turbo etc temps which affects longevity. I've wrapped NA exhaust manifolds for more power in the past, and it does seem to work according to the theory but you have to be careful & think about the specific application.
most useful advice I've come across was in relation to exhaust manifold wrap - don't wrap right up to the exhaust port, but leave a gap of a few inches since otherwise the heat that would otherwise be vented to the atmosphere will be retained in the pipe and sink to the head, making the head run much hotter. leaving a bit of a gap allows the head temp at the port to dissipate, so head runs at normal temp, but you get the benefit of the wrap keeping the heat in the rest of the pipe to increase velocity & aid gasflow & scavenging etc.
in general, it's an area with lotsa differing opinions. personally, I can see it would help in theory, as long as you're careful & make sure you don't heat the heads or turbo too much. if you want to use it on your turbo & you got a turbo temp gauge, give it a go & monitor the temps. or find someone with a similar application who has used it with no ill effects. I'd be v wary of just buying some & wrapping it all up - you may find a power improvement at the cost of seriously impaired turbo, head, manifold life
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