IPOX Indexes mixed as weak IPOX U.S. outweighs strength in IPOX Europe and IPOX China. Amid Covid-19 driving continued strength in the U.S. Dollar & U.S. Bonds, while U.S. equity risk sank (VIX: -28.59%), the IPOX Strategies finished the week mixed. While U.S. equities succumbed to the big weakness in U.S. small-caps (RTY: -7.06%) anew post mid-week, markets abroad fared significantly better, led by the IPOX Nordic, IPOX Europe and IPOX China, driving the relative performance differential of the IPOX International (ETF:FPXI) vs. the International Market to a massive +1531 bps. YTD in IPOX’s favor. Amid no earnings visibility resulting in reducing multiples for growth stocks, e.g., the impact of liquidation-selling in secondary and tertiary equity positions was highlighted by the week’s return distribution in the IPOX 100 U.S. (ETF: FPX). Here, 70/100 holdings fell on the week, with the average (median) equally weighted position declining by -5.86% (-6.28%) a massive -299 (-341) bps. lower than when compared to the applied market-weighted IPOX 100 U.S. (ETF: FPXI), with the ESG-compliant IPOX ESG version (IPXT) faring even better. On a global
IPOX® International Investing (ETF: FPXI) since Fund launch:
level, this helped to push the market neutral IPOX Global Alts/Corporate Action strategy to a fresh all-time high, gaining +2.38% to +26.47% YTD last week. In individual exposure, we note the big performance jump in IPOX International (ETF: FPXI) heavyweight Riyadh-traded global energy behemoth Saudi Aramco (ARAMCO AB: +5.85%). With the “FPXI” ETF being the only ETF available to U.S. investors carrying significant weight, the company extended its two week-gain since portfolio inclusion to +9.52%. This helped to compensate for the significant losses in select small- and mid-caps held in the portfolio, including Chinese coffee chain Luckin Coffee (LK US: -79.01%), Brazilian payment processor StoneCo (STNE US: -27.09%) and Chinese application software maker GSX Techedu (GSX US: -21.91%). We also note the big relative strength in the Nordic-traded portion of the “FPXI” portfolio, with online casino software application maker Evolution Gaming (EVO SS: +12.51%), (EVO SS: +12.51%), cloud communications software Sinch (SINCH SS: +11.66%) and telecom IPO M&A Tele2 (TEL2B SS: +9.13%) leading the way.
|Select IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-2.57||27.93||-15.28|
|IPOX® Global Alternative (USD)||2.38||-1.96||26.47|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||-2.75||31.37||-11.96|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (USD)||-3.22||24.64||-21.57|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||-2.87||29.60||-25.19|
|IPOX® ESG (IPXT) (USD)||-1.37||–||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||0.61||34.55||-9.21|
|IPOX® Nordic (IPND)||2.62||38.52||-14.41|
|IPOX® 100 Europe (IPOE)* (USD)||-2.30||30.97||-18.65|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-4.27||4.41||-17.56|
|IPOX® China (CNI) (USD)||-0.30||26.31||-4.62|
|IPOX® Japan (IPJP)** (JPY)||-4.61||37.91||-26.65|
* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters.
IT’S THE NEW GENERATION: CME Group announces launch of 0.25 tick IPOX 100 U.S. Index Futures (Front month: IPOM0). Whether you are a risk manager or speculator, CME Group (CME US: +1.43%) – the world’s largest exchange operator – now offers investors efficient and cost effective access to the IPOX 100 U.S. (ETF: FPX) via emini IPOX 100 U.S. Index Futures (Front month: IPOM0). Contact [email protected] for further info and free resources.
IPO Deal-flow Review & Outlook: April starts with two U.S. IPOs as Zentalis (ZNTL US) soars on debut. Slow month ahead amid coronavirus disruption. Only 2 firms commenced trading across the global regions last week with the average equally-weighted deal adding +12.17% based on the difference between the final IPO offering price and Friday’s close. Chinese AR-advertising platform WiMi Hologram (WIMI US: -4.55%) fell on below-target offering whereas the New York-based cancer biotech Zentalis Pharmaceuticals (ZNTL US: +28.89%) surprised the market with its high-end and upsized IPO. As the COVID-19 pandemic deepens, April is set for a slow start with only one biotech (Keros Therapeutics [(KROS US)]) scheduled. Other IPO News include: 1) Thailands’s largest energy company PTT Oil & Retail Business (PTTOR) filed for another $1B+ IPO offer; and 2) COVID-19 vaccine maker Immunomic Therapeutics mulls IPO.
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