The IPOX® Week, June 11, 2018

  • IPOX Indexes outpace market across the board: Diversified IPOX 100 U.S. jumps +2.67%.
  • IPO Deal-flow Review & Outlook: PayPal competitor Adyen readies IPO / Heavy U.S. deal volume seen.
  • Visit IPOX at the Morningstar Conference – Booth 370.

IPOX Indexes outpace market across the board: Diversified IPOX 100 U.S. jumps +2.67%. Ahead of Futures and Option expiration week and re-balancing, the IPOX Indexes outpaced markets across the board. Most absolute and relative upside was recorded by the AAPL-free, diversified IPOX 100 U.S. which gained for a second week, adding +2.67% to +7.05% YTD, +311 bps. more than the S&P 500, yardstick for U.S. stocks. Amid a good week in some its core positions, including consumer staple Kraft Heinz (KHC US: +1.42%) or payment processor PayPal (PYPL US: +1.31%), relative upside was driven by gains in smaller specialty exposure including e-commerce firm Stitch Fix (SFIX US: +31.09%), embattled camping store operator Camping World (CWH US: +30.59%) or social networkers Snap (SNAP US: +12.47%) and Twitter (TWTR US: +12.44%). The IPOX 100 U.S. portfolio counted biotech Blueprint Bio (BPMC US: -20.85%) as its worst performing constituent. Exposure outside the U.S. generally lagged their U.S. counterpart, however, outperformed, with the IPOX China and IPOX Nordic closing out the week at multiyear- or all-time weekly highs, respectively. Ahead of the IPO of payment processor Adyen (ADYEN NA), EUR billion 35.2 03/18 IPO medical devices maker Siemens Healthineers (SHL GY: +5.26%) ranked as one of the best performing large-cap IPOX Holdings traded outside the U.S.

Visit IPOX at the 2018 Morningstar Investment Conference at Chicago’s McCormick Place, June 11-13, Booth 370.

IPOX-linked Investment Products Update: Amid big gains in AUM, the USD billion 1.2 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) added +2.63% to +7.22% YTD last week, while the IPOX International (IPXI)-linked First Trust International IPO ETF (FPXI) rose to +4.86% YTD. Ahead of its upcoming 3rd year anniversary, we note a fresh all-time high in the IPOX-linked Catalyst IPOX® Allocation Fund (OIPAX: +2.97% to +10.42% YTD), an actively managed Mutual Fund.

IPOX® 100 U.S. – Investing with the “FPX” ETF since 2006

IPOX Price Returns (%) Last Week 2017 2018 YTD
Exposure: Global/International (xUS) (USD) (Price)
IPOX Global (IPGL50) 1.73 28.59 3.86
IPOX International (IPXI)* 0.92 37.80 2.88
Exposure: United States (USD) (Price)
IPOX Composite U.S. (IPXC)* 1.86 33.64 9.65
IPOX 100 U.S. (IPXO)* 2.67 26.04 7.05
IPOX 30 U.S. (IPXT) 2.25 26.63 3.12
Exposure: Europe/Nordic Region (EUR) (Price)
IPOX Europe (IXTE) -0.03 19.27 2.52
IPOX Nordic (IPND) 0.00 17.91 2.51
Exposure: Asia-Pacific/China Region (USD) (Price)
IPOX Asia-Pacific (IPTA) 0.41 23.30 2.85
IPOX China (CNI) 1.48 37.67 18.35

* Basis for ETPs: FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT and CME listed e-mini IPOX® 100 U.S. Index Futures [Symbol: IPOM8].

IPO Deal-flow Review & Outlook: PayPal competitor Adyen readies IPO / Heavy U.S. deal volume seen. At least 7 notable (non-China A shares and non-local India) companies debuted last week, with the average (median) equally-weighted firm adding a strong +7.30% (+5.00%) based on the difference between the final offering price and Friday’s close. Vietnam’s second largest listing ever, Vietnam Techcombank (TCB VN: -17.81%), fell sharply after debut, while Denmark-based IT consulting firm Netcompany (NETC DC: +30.97%) ranked as the week’s top performer. At least 6 U.S. IPOs are lined up this week, including tax software provider Avalara (AVLR US) or Nevada-based truckload carrier U.S. Xpress Enterprises (USX US). Most focus is on the IPO of Dutch payment service provider Adyen (ADYEN NA) on Euronext Amsterdam, as it is set to replace PayPal (PYPL US: +1.31%) as the primary payment processing partner for eBay (EBAY US: +5.09%).

Select IPOs traded (week: 06/04/2018) Country
Better Collective A/S Denmark
MeiraGTx Holdings plc Britain
MNC Studios International Tbk Indonesia
NCAB Group AB Sweden
Netcompany Group A/S Denmark
Vietnam Techcombank Vietnam
Yew Grove REIT PLC Ireland
Select IPOs expected (week: 06/11/2018) Country
 Adaptive Insights Inc  United States
 Adyen BV  Netherlands
 Aquis Exchange Ltd  Britain
 Avalara Inc  United States
 Carel Industries SpA  Italy
Charah Solutions Inc United States
Delachaux Group SA France
Huifu Payment Ltd China
Kalray SADIR France
Puxin Ltd China
Tallinna Sadam AS Estonia
US Xpress Enterprises Inc United States
Verrica Pharmaceuticals Inc United States

Josef Schuster is the founder of IPOX Schuster LLC (www.ipoxschuster.com), a Chicago-based Financial Services company specialized in Financial Products Design related to Initial Public Offerings and corporate Spin-offs. He is the chief architect of the IPOX Indexes, a global index group initiated in 2004 that encompasses an index technology allowing for asset-allocation focused exposure to the “going public” effect associated with global IPOs and Spin-offs. Mr. Schuster earned his Bachelor of Arts degree in Business Administration in 1994 from the European Business School, London. Mr. Schuster was also awarded a MSc in Accounting and Finance in August 1996 and a MPhil / PhD in Accounting and Finance in June 2003 from the London School of Economics.

ABOUT THE IPOX INDEXES: Through the range of the IPOX Indexes, market participants have an innovative opportunity to navigate the global IPO and Spin-off market and to track the performance of this economically significant sector more accurately and comprehensively than with any other index group. The IPOX Indexes accomplish the systematic indexation of the aftermarket performance of the IPO and Spin-off sector, while – at the same time – preserving the benefits of diversification. Linked to the IPOX 100 U.S. Index, for example, IPOX-linked investment products available to investors include the pioneering USD million 600, 5-star First Trust U.S. IPO ETF (ticker: FPX). On February 18, 2016, CME Group, the world’s largest exchange operator, launched e-mini IPOX 100 U.S. Index Futures, offering market participants for the first time a tool to manage the aggregate risk associated with U.S. IPOs and Spin-offs.

Lime Brokerage LLC is not affiliated with these service providers. Data, information, and material (“content”) is provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lime Brokerage LLC does not endorse, offer or recommend any of the services provided by any of the above service providers and any service used to execute any trading strategies are solely based on the independent analysis of the user.

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