The IPOX® Week, August 19, 2019

  • IPOX Indexes drop on rates anxiety & recession fears. IPOX China (CNI), IPOX International log more (relative) YTD gains.
  • IPO Deal-flow Review & Outlook: First IPO filings unveiled for WeWork, Cloudflare and SmileDirectClub. More divestures of overseas interests as ChemChina-owned Swiss agrochemical company Syngenta in talks for world’s biggest chemical IPO.

IPOX Indexes drop on rates anxiety & recession fears. IPOX China (CNI), IPOX International log more (relative) YTD gains. Amid the continuing plunge in U.S. yields increasing U.S. recession anxiety and more political U-turns over global trade, most IPOX Indexes finished another volatile week with weekly losses. In the U.S., e.g., the diversified FANG-free IPOX 100 U.S. (ETF: FPX) declined by      -1.32% to +25.24% YTD, lagging the S&P 500 (SPX) – benchmark for U.S. stocks – by -30 bps. on the week, while big gains in select exposure after strong earnings lifted the 60-company strong IPOX China Core (CNI) to a weekly gain. We also note more relative gains for the IPOX International (ETF: FPXI) which extended its YTD relative performance jump vs. the International Market by +101 bps. to a  massive +1688 bps. YTD. Big upside in specialty stocks insulated from global trade & recession anxiety drove the good (re-

IPOX® International (ETF: FPXI) vs. Ultra-Cheap Benchmarks:

lative) showing in the IPOX International (ETF: FPXI) and IPOX China Core (CNI), including Chinese live streaming games platform Huya (HUYA US: +19.13%), Brazils payment processor Pagseguro Digital (PAGS US: +12.21%) & managed care provider Hapvida Participacoes (HAPV3 BS: +9.02%) and oncology company Novocure (NVCR US: +8.37%).  High-beta growth stocks weighed on the IPOX 100 U.S. (ETF: FPX), including ride sharer Lyft (LYFT US: -11.25%) and online furniture seller Wayfair (W US: -11.60%).

IPOX-linked Fund Performance Updates: The IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.3 billion First Trust U.S. Equity Opportunities ETF (FPX) fell to +25.83% YTD, while the  IPOX International (IPXI)-linked 5-star (3-years) First Trust International Equity Opportunities ETF (FPXI) and the IPOX® 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) closed at +23.38% YTD and +21.93% YTD, respectively. IPOX-linked mutual fund Catalyst IPOX® Allocation Fund (OIPAX US) fell to +22.81% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -1.64 -11.37 22.46
IPOX® International (IPXI)* (USD) -0.48 -13.47 21.49
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* -1.17 -7.59 16.12
IPOX® 100 U.S. (IPXO)* -1.32 -8.80 25.24
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.00 -13.46 21.95
IPOX® Nordic (IPND) -0.63 -15.45 22.15
IPOX® 100 Europe (IPOE)* (USD) -1.04 -16.60 19.51
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -2.34 -3.21 1.08
IPOX® China (CNI) (USD) 0.93 -22.83 8.21
IPOX® Japan (IPJP)** (JPY) -1.17 -13.70 -2.82

* 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 (IPOU9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: First IPO filings unveiled for WeWork, Cloudflare and SmileDirectClub. More divestures of overseas interests as ChemChina-owned Swiss agrochemical company Syngenta in talks for world’s biggest chemical IPO. Three firms debuted last week in markets open to global investors, with the average equally-weighted stock adding +6.09% based on the difference between IPO offer price and Friday’s close. Regional bank CrossFirst (CFB US: +10.00%) and Chinese lending platform 9F (JFU US: +10.00%) traded barely above offer upon debut, while Irish insurance software developer FINEOS (FCL AU: +10.00%) ranked as the largest IPO in Australia YTD and NZX readies its largest IPO since ’16 this week – New Zealand’s fourth largest port operator Napier Port (NPH NZ). Amid the seasonal August weakness, more filings indicate that firms accelerate their IPO plans into Q4 including WeWork, a workspaces leasing company with tech unicorn valuation, web infrastructure and security company Cloudflare, and tele-orthodontics startup invisible aligner provider SmileDirectClub. Other notable news include Switzerland pesticide maker Syngenta talks to re-list, just two years into its $43 billion acquisition by China state-owned ChemChina. Other recent China overseas divestments concern HNA Groups sell-down of its stake in hotel operator Hilton Worldwide, ChemChina’s re-listing of Italian tire maker Pirelli (PIRC IM: -3,83%), the IPO of Financial Huatai-backed AssetMark (AMK US: -7.43%) and the IPO of IRONMAN rights owner WSG (WSG US: -9.14%) which Wanda Group had acquired in 2015.

Track Priced & Upcoming IPOs on https://ipox.com


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