The IPOX® Week, August 26, 2019

  • Most IPOX Indexes outperform benchmarks during volatile trading week. IPOX International (ETF: FPXI) extends YTD gains anew. Earnings drive IPOX China (CNI) to strong week.
  • IPO Deal-flow Review & Outlook: New Zealand’s biggest IPO in three years – port operator Napier Port (NPH NZ) – records strong initial gains. No major deals expected ahead of shortened U.S. trading week.

Most IPOX Indexes outperform benchmarks during volatile trading week. IPOX International (ETF: FPXI) extends YTD gains anew. Earnings drive IPOX China (CNI) to strong week.  Amid the escalation of global trade tensions towards the week-end pressuring U.S. equities and propelling U.S. bonds and risk (VIX: +7.58%), the IPOX Indexes finished on a sour note, however, outperformed the main equity benchmarks. In the U.S., e.g., the diversified FANG-free IPOX 100 U.S. (ETF: FPX), declined by -0.88% to +24.14% YTD, extending the YTD performance lead vs. the S&P 500 (ETF: SPY), benchmark for U.S. stocks, by +56 bps. to +1057 bps. YTD. Relative strength extended to the IPOX International (ETF: FPXI) and IPOX China (CNI) which both closed the week with strong gains. The good

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

relative showing continued to be driven by solid earnings or respective momentum driven buying after quarterly results, including Australian application software maker Wisetech Global (WTC AT: +24.53%), Hong Kong based real estate services provider Country Garden (6098 HK: +12.42%), U.S. retailer BJs Wholesale Club (BJ US: +15.45%), Spin-off Keysight Technologies (KEYS US: +8.75%) or Hong Kong restaurant operator Haidilao International (6862 HK: +7.50%). Declines in animal health care firm Elanco (ELAN US: -9.95%) after its corporate action involving the buy-out of a Bayer unit, as well as more momentum selling in Spin-off Dow (DOW US: -8.54%) weighted on the IPOX 100 U.S. (ETF: FPX).

IPOX-linked Fund Performance Updates: Amid the escalating trade war towards the week-end, the IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.3 billion First Trust U.S. Equity Opportunities ETF (FPX) declined to +24.70% YTD, while the  IPOX International (IPXI)-linked 5-star (3-years) First Trust International Equity Opportunities ETF (FPXI) rose to +23.65% and the IPOX 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) declined to +21.59% YTD. The actively managed IPOX-linked Catalyst IPOX® Allocation Fund (OIPAX US), a mutual fund, fell to +22.03% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -0.32 -11.37 22.06
IPOX® International (IPXI)* (USD) 0.79 -13.47 22.45
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* -0.83 -7.59 15.15
IPOX® 100 U.S. (IPXO)* -0.88 -8.80 24.14
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.07 -13.46 22.01
IPOX® Nordic (IPND) 0.86 -15.45 23.21
IPOX® 100 Europe (IPOE)* (USD) -0.06 -16.60 19.52
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.34 -3.21 1.40
IPOX® China (CNI) (USD) 3.82 -22.83 12.36
IPOX® Japan (IPJP)** (JPY) 0.74 -13.70 -2.09

* 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: New Zealand’s biggest IPO in three years – port operator Napier Port (NPH NZ) – records strong initial gains. No major deals expected ahead of shortened U.S. trading week. Only two sizable companies debuted last week in markets open to global investors, with the average equally-weighted stock adding +38.42% based on the difference between their final offer price and Friday’s close. New Zealand’s largest IPO since 2016 and the third IPO on New Zealand Exchange (NZX) in two years – port operator Napier Port (NPH NZ: +18.85%) – closed its first week of trading with robust gains as investors cheered the rare infrastructure listing on the IPO-drought exchange. Another Oceania company – Australian private fiber-to-the-Premises (FTTP) services provider small-cap OptiComm (OPC AU: +58.0%) surged on the Australian Stock Exchange (ASX). As the IPO market regroups for a potentially prolific September, no significant deals are expected during the remainder of the month ahead of the shortened U.S. Labor Day week-end. Other notable IPO news of the week include) the upcoming Spin-off of Prosus, the international internet assets of South Africa’s Naspers which include a ca. 1/3 of stake in Chinese internet giant Tencent (700 HK: +2.39%); ii) a new IPO filing from private equity firm Vista Equity-backed enterprise ID management software developer Ping Identity (PING US); iii) the $4 billion September scheduled Paris-listing of P/E Apollo (APO US) held French glass bottle manufacturer Verallia, iv) the IPO plan of Turkish and Chinese quick service restaurant operator TFI’s Chinese Burger King business in Hong Kong, and v) continuous talk on the IPO of oil giant Aramco’s, schedule to become the world’s biggest IPO ever.

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

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