The IPOX® Week, January 27, 2020

  • Rising Global Growth risks after Coronavirus, big weakness in U.S. Small- and Mid-Caps, weigh on IPOX; IPOX 100 U.S. Index (ETF: FPX) falls less than most benchmarks.
  • IPOX ESG compliant positions outperform ahead of earnings.
  • IPO Deal-flow Review & Outlook: Household products maker Reynolds Consumer Products, primary care provider One Medical set to kick off 2020 U.S. IPO year in earnest.

Rising Global Growth risks after Coronavirus, big weakness in U.S. Small- and Mid-Caps, weigh on IPOX, but IPOX 100 U.S. (ETF: FPX) falls less than most benchmarks on ESG.  Renewed selling in U.S. Small- (RUT: -2.20%)- and Mid-Caps with Chinese stocks pressured amid a jump in risk (VIX: +20.33%) on fears linked to the Coronavirus pressured the IPOX Indexes last week, however, portfolios generally performed in line to better than when compared to their benchmarks.  In the U.S., e.g., the FANG-free, diversified IPOX 100 U.S. (ETF: FPX) fell -0.46% to +3.35% YTD, +57 bps. ahead of the S&P 500 (SPX), main gauge for U.S. stocks, on the week.  With ca. 28.50% of IPOX 100 U.S. (ETF: FPX) weight set to report this week, select ESG compliant positions recorded big gains,

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

including Nasdaq-listed electric car maker Tesla Motors Inc. (TSLA US: +10.64%) and Copenhagen-traded Orsted A/S (ORSTED DC: +7.79%), the world’s largest wind farm operator. We also note a good week for IPOX 100 U.S. (ETF: FPX) holding KS-based utility Evergy Inc. (EVRG US: +6.00%) after NY-based activist investor Elliott Management disclosed a stake worth ca. USD million 760 in the firm. Amid the global health scare, select China-linked restaurant exposure ranked as a group towards the bottom of the weekly IPOX performance statistics, including restaurant operator Haidilao International Holding Ltd. (6862 HK: -15.86%), seasoning maker Yihai International Holding Ltd. (1579 HK: -13.56%) and restaurant chain operator Yum China Inc. (YUMC US: -11.23%). We also note the big divergence in the performance of Europe-listed IPOX holdings during last week’s trading: While London-traded fintech payment processor Finablr PLC (FIN LN: -30.35%) plunged after its largest shareholder pledged more than half of its shares outstanding as collateral  for a loan,  Stockholm traded games developer 12/2016 IPO Stillfront Group AB (SF SS: +17.22%) rose anew, extending its post-IPO gain to a massive +1025.64%, and underlying the attractiveness of IPOX-Style-Investing when applied to the Nordic Region.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -0.89 27.93 4.35
IPOX® International (IPXI)* (USD) -1.34 31.37 3.55
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) -0.46 29.60 3.35
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.70 34.55 5.70
IPOX® Nordic (IPND) 1.08 38.52 5.03
IPOX® 100 Europe (IPOE)* (USD) 0.09 30.97 1.79
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.44 4.41 2.25
IPOX® China (CNI) (USD) -5.03 26.31 3.06
IPOX® Japan (IPJP)** (JPY) 0.37 7.91 1.28

* 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): +3.50%; IPOX International (ETF: FPXI): +3.00%; IPOX 100 Europe (ETF: FPXE): +1.54%.

IPO Deal-flow Review & Outlook: Household products maker Reynolds Consumer Products, primary care provider One Medical set to kick off 2020 U.S. IPO year in earnest. Amid the shortened U.S. trading week and Lunar New Year, H.K.-traded finance lease company ZGC (1601 HK: -1.32%) was the only firm which commenced trading across the global regions last week**. While both Asian and European stock markets remain quiet this week,  Reynolds Wrap aluminum foil and Hefty trash bags maker Reynolds Consumer (REYN US) and Carlyle Group and Google-backed primary care clinics unicorn 1Life Healthcare (known as One Medical) (ONEM US) are set to kick-off the U.S. 2020 IPO year in earnest. Other global IPO news updates from last week include: 1) Germany’s largest airline Lufthansa considers to spin off its maintenance unit Lufthansa Technik in an IPO; 2) PE-backed Apple software marker JAMF filed for a confidential IPO; 3) Tencent-backed Chinese affordable household products retailer MINISO plans USD billion 1 IPO; 4) Indonesia’s low-fare airline Lion Air starts roadshow;   5) valued at $10 billion, crypto/blockchain company Ripple gave a hint regarding the firms schedule to “go public”.
**Terms applies

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


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