The IPOX® Week, November 19, 2018

  • Gains in IPOX Asia-Pacific (IPTA), Canada Goose (GOOS US) drive IPOX International (IPXI) to strong week. Decline in global payment processors weighs on other IPOX Indexes.
  • IPOX Market Neutral Global sets fresh All-time High.
  • IPO Deal-flow Review & Outlook: Quiet amid U.S. Thanksgiving holiday. Flurry of U.S. filings seen towards the week-end.

Gains in IPOX Asia-Pacific (IPTA) drives IPOX International (ETF: FPXI) to strong week. Decline in global payment processors weighs on other IPOX Indexes. Ahead of the shortened U.S. trading week, the IPOX Indexes traded mixed: While good earnings in select exposure drove strong absolute and relative return gains in the IPOX Asia-Pacific (IPTA) – also benefiting the IPOX International (ETF: FPXI) – weak U.S. technology amid lower U.S. rates and continued jitters surrounding Brexit weighed on IPOX U.S. (IPXC, IPXO, IPXT) and IPOX Europe (IXTE, IPOE, IPND). Amid more earnings driving the respective portfolios return dispersion and post-earnings momentum, the IPOX Market Neutral Portfolio Strategies traded flat to higher last week, with the global level setting a fresh all-time high into the week-end. We note big weakness in the slew of relatively heavily weighted payment processors-linked IPOX exposure last week, including Adyen (ADYEN NA: -13.02%), Worldpay (WP US: -8.97%), Transunion (TRU US: -6.02%), First Data (FDC US: -4.45%), Square (SQ US: -3.66%) or Paypal (PYPL US: -1.96%). Select exposure, however, managed to set all-time highs last week, including Canadian-based anoraks maker Canada Goose (GOOS US: +16.77%), commercial aircraft leasing firm Singapore-based BOC Aviation (BOC US: +4.85%) or regenerative cell related pharma maker Japan-traded Sanbio (4592 JP: +4.36%), while IPOX International’s (ETF: FPXI) top holding diversified services provider Japan Post (6178 JP: +1.02%) closed at a YTD high.

IPOX® 100 U.S. Investing with the ‘FPX’ ETF since 2006

Select IPOX-linked investment products performance: Last week, the USD billion 1.1 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) fell to -0.72% YTD, while the IPOX International (IPXI)-linked “FPXI” ETF rose to -8.63% YTD. Amongst the range of actively managed IPOX-linked products, the Catalyst IPOX® Allocation Fund (OIPAX) fell -1.58% to close +3.40% YTD last week.

Select IPOX® Indexes Returns (%) Last Week 2017 2018 YTD
IPOX® Long-Only: Global/International
IPOX® Global (IPGL50) (USD) -1.16 +28.59 -6.14
IPOX® International (IPXI)* (USD) 0.50 +37.80 -9.69
IPOX® Long-Only: United States
IPOX® Composite U.S. (IPXC)* -1.17 +33.64 -0.20
IPOX® 100 U.S. (IPXO)* -2.10 +26.04 -1.17
IPOX® 30 U.S. (IPXT) -1.63 +26.63 -2.89
IPOX® Long-Only: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -2.71 +19.27 -7.08
IPOX® Nordic (IPND) (EUR) -2.33 +17.91 -9.80
IPOX® 100 Europe (IPOE)* (USD) -2.59 +41.77 -11.45
IPOX® Long-Only: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.36 +23.30 -1.88
IPOX® China (CNI) (USD) 2.19 +37.67 -16.12
IPOX® Japan (IPJP) (JPY) -1.89 N/A N/A
IPOX® Market Neutral
Beta Neutral Strategy: Yes No
IPOX® Market Neutral Asia-Pacific** X +10.49
IPOX® Market Neutral Europe** X +19.68
IPOX® Market Neutral U.S.** X +8.89
IPOX® Market Neutral Global** X +11.22

* Basis for ETPs: FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures [Symbol: IPOZ8]. ** Live since 03/18.

IPO Deal-flow Review & Outlook: Quiet amid U.S. Thanksgiving holiday. Flurry of U.S. filings seen towards the week-end. Only 5 firms debuted last week across accessible global regions, with the average (median) equally-weighted company adding just +3.43% (+0.86%) based on the difference between the final offering price and Friday’s close. Amid the last minute take out of SurveyMonkey (SVMK US: +31.78%) competitor software maker Qualtrics by Germany’s SAP (SAP GY: -3.70%) at a huge premium, the surprising acquisition – along with the postponement of the ex-Pfizer CEO’s biopharma company Centrexion (CNTX US) – slimed down last week’s IPO flow. Some successful listings abroad, however, included the IPO of largest Slovenian state bank Nova Ljubljanska Banka (NLB LI: +11.17%) and Kazakhstan’s uranium producer Kazatomprom (KAP LI: +0.86%). Amid the shortened U.S. trading week, no U.S. firms are set to commence trading this week. Outside the U.S., we note the IPO of Chinese non-state-owned port, waterway and marine engineering company Watts International (2258 HK) and Serbian green energy producer Fintel Energija (FINT SG). Late Friday, we note the U.S. IPO filings of Bill Gates-backed Vegan Burger Maker Beyond Meat, biotech Cibus and rail operator Virgin Trains USA.

Select IPOs traded (week: 11/12/2018) Domicile
Ever Reach Group Holding Co Ltd China
NAC Kazatomprom JSC Kazakhstan
Nova Ljubljanska Banka Slovenia
Weidai Ltd China
Select IPOs expected (week: 11/19/2018) Domicile
Fintel Energija AD Serbia
Watts International Maritime Engineering China

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