The IPOX® Week, February 3, 2020

  • FANG-free, diversified IPOX 100 U.S. Index (ETF: FPX) rises +1.92% during January. Global Growth risks after Coronavirus, big weakness in global Small-caps weigh.
  • IPO Deal-flow Review & Outlook: U.S. IPOs the place to be as household essentials maker Reynolds Consumer Products, primary care clinic chain 1Life Healthcare rise on debut. U.S. set to continue to dominate global IPO calendar.

FANG-free, diversified IPOX 100 U.S. Index (ETF: FPX) records gains during January. Global Growth risks after Coronavirus, big weakness in small-caps weigh.  Despite rising global growth risks (VIX: +37.16% during January) on Coronavirus, falling U.S. yields and significant weakness in U.S.- (RTY: -3.26%) and Japan-traded Small-caps (TSEMOTHR: -8.26%), Developed-Markets focused IPOX Indexes rose during January, while Asia-fell. In the U.S., e.g., the FANG-free-diversified IPOX 100 U.S. Index (ETF: FPX) added +1.92% during January, +209 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. Here, 57/100 portfolio holdings rose on the month, with the average (median) stock adding +1.80% (+0.57%), less than when compared to the applied market-weighted IPOX 100 U.S. (ETF: FPX). Returns unevenly distributed and driven

IPOX® 100 ETF (ticker: FPX) vs. Benchmarks since 04/2006:

by a big month in pure growth components of the portfolio, including electric car maker S&P 500 (SPX) inclusion candidate IPO M&A Tesla Motors (TSLA US: +55.57%), biotech Appelis (APLS US: +34.26%), enterprise software maker Appian (APPN US: +33.58%), software intelligence platform operator Dynatrace (DT US: +23.75%) and ride hailing services provider UBER (UBER US: +22.02%). Securities services provider ADT (ADT US: -21.82%), equipment rental company IPO M&A URI (URI US: -18.64%) and Spin-off chemicals maker Dow (DOW US: -15.82%) ranked as the worst performing portfolio holdings during January. We also note big corporate action activity with activist investor Elliott Management focusing in on IPOX 100 U.S. (ETF: FPX) holding KS-based utility Evergy (EVRG US: +10.86%)  Other IPOX Indexes recording gains during January included the IPOX Global (IPGL50), IPOX International (ETF: FPXI) and select European-focused IPOX Portfolios (IXTE and IPND), while a tough final two weeks of trading amid surging risks linked to the Coronavirus significantly pressured the IPOX Asia-Pacific (IPTA), IPOX China Core (CNI), and IPOX Japan (IPJP) during last month.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -1.94 27.93 2.32
IPOX® International (IPXI)* (USD) -2.84 31.37 0.58
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) -1.38 29.60 1.92
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -2.82 34.55 2.71
IPOX® Nordic (IPND) -1.99 38.52 2.97
IPOX® 100 Europe (IPOE)* (USD) -1.79 30.97 -0.06
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -2.33 4.41 -0.20
IPOX® China (CNI) (USD) -5.31 26.31 -2.41
IPOX® Japan (IPJP)** (JPY) -3.27 7.91 -2.04

* 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 (IPOH0). Source: Bloomberg L.P.

IPOX ETFs 2020 YTD Returns: IPOX 100 U.S. (ETF: FPX): +2.04%; IPOX International (ETF: FPXI): +0.02%; IPOX 100 Europe (ETF: FPXE): +0.55%.

IPO Deal-flow Review & Outlook: U.S. IPOs the place to be as household essentials maker Reynolds, primary care clinic chain 1Life Healthcare rise on debut U.S. set to continue to dominate global IPO calendar. At least 4 firms commenced trading across the global regions last week with the average (median) equally-weighted deal adding +48.26% (+42.94%) based on the difference between the final offering price and Friday’s close. Reynolds foil wrap maker Reynolds Consumer (REYN US: +9.81%) recorded the first billion-dollar offer in the U.S. YTD, while Google-backed primary care clinic chain 1Life Healthcare (ONEM US: +57.64%) also set a positive tone as the first U.S. unicorn IPO YTD. Deals “going public” in the U.S. are set to continue to dominate the global IPO calendar with Carlyle and H&F 2011 buyout contract research provider PPD (PPD US) and VC-backed 30% valuation-cut “bed-in-a-box” mattress maker Casper (CSPR US) in the spotlight. Brazil also readies its first deals YTD with real estate developer Mitre Realty (MTRE3 BZ) and Silver Lake invested web host Locaweb (LWSA3 BZ) set to IPO. Other global IPO news updates from last week include: 1) Cannae files for confidential IPO of data analytics firm Dun & Bradstreet just one year after its ca. $6.9 billion privatization; 2) KKR-backed smart meter firm Calisen readies London float; 3) JAB (JDE and Peets Coffee) reportedly to prepare for Amsterdam listing.
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