The IPOX® Week, July 20, 2020

  • IPOX Indexes trade mixed. IPOX 100 Europe (ETF: FPXE) closes week at highest level on record.
  • IPOX 100 U.S. (ETF: FPX) falls -1.00% to +9.10% YTD. IPOX International (ETF: FPXI) declines -1.55% to +33.46% YTD. IPOX 100 Europe (ETF: FPXE) gains +2.16% to +15.25% YTD.
  • Unicorn Jamf (JAMF US) lined up.

IPOX Indexes trade mixed during U.S. options expiration week. European IPOs a great place to be: Diversified IPOX 100 Europe (ETF: FPXE) closes week at highest level on record. The IPOX Indexes traded mixed last week. While profit taking in high-beta exposure amid stable yields and declining equity risk (VIX: -5.90%) after the big-run ahead of earnings pressured the IPOX China (CNI), IPOX 100 U.S. (ETF: FPX) and IPOX International (ETF: FPXI), the broad-based, diversified IPOX 100 Europe (ETF: FPXE) closed out the week at a fresh all-time high. Here, big gains in European-domiciled specialty firms across the market cap and industry spectrum propelled the strategy by +2.16% to +15.25% YTD, a fresh all-time high and a massive +2311 bps. YTD ahead of the STOXX Europe 50 (SX5L). The IPOX 100 Europe (ETF: FPXE) provides access to the performance of 100 large and well-performing European domiciled New Listings trading across Europe and the U.S. by applying a portfolio technology pioneered in the $1.4 billion U.S. (ETF: FPX) and $0.2 billion International (ETF: FPXI) IPOX counterparts, respectively. Amid its focus on faster growing economic sectors and regions (e.g. Nordic), the portfolio currently also displays little overlap with the conventional benchmarks.

European IPO Investing with the “FPXE” ETF since launch:

In the U.S., the IPOX 100 U.S. (ETF: FPX) declined -1.00% to +9.10% YTD last week, better than when compared to the NASDAQ 100 (NDX: -1.76%) but lagging the S&P 500 (SPX), benchmark for U.S. stocks. Profit taking in global technology exposure contributed to the weak showing, including infrastructure software maker Fastly (FSLY US: -17.82%), security software firm Crowdstrike (CRWD US: -13.05%) or video conferencing platform operator Zoom Video (ZM US: -10.63%), while Marcus Lemonis’, IL-based recreational vehicle specialist Camping World Holdings (CWH US: +16.14%) rose to a fresh weekly high. We note more pending IPO M&A action with large-pharma, French drug maker Sanofi (SAN FP: +6.08%) mulling U.S. Biotech Targets including IPOX 100 U.S. (ETF: FPX) holding $2.8 billion Principia Biopharma (PRNB US: +32.70%).

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -1.85 27.93 29.23
IPOX® International (IPXI)* (USD) (ETF: FPXI) -1.55 31.37 33.46
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) -1.00 29.60 9.10
IPOX® ESG (IPXT) (USD) 0.80
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.32 34.55 24.55
IPOX® Nordic (IPND) 1.92 38.52 33.18
IPOX® 100 Europe (IPOE)* (USD) 2.16 30.97 15.25
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.14 4.41 16.59
IPOX® China (CNI) (USD) -5.41 26.31 36.51
IPOX® Japan (IPJP)** (JPY) 0.78 37.91 1.47

* 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. For IPOX Alternative Strategies Returns, please contact [email protected]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
PRINCIPIA BIOPHARMA 32.70 FASTLY -17.82
ASTON MARTIN LAGONDA 25.05 HELLOFRESH SE -13.46
BIONTECH SE 21.16 ADAPTIVE BIOTECHN -13.15
ADEVINTA ASA 17.29 CROWDSTRIKE -13.05
CAMPING WORLD 16.14 BILIBILI -11.88
ADC THERAPEUTICS SA 12.90 ZOOM VIDEO COM. -10.63
KOOLEARN TECHNOLOGY 12.02 SHOPIFY -10.05
MEDACTA GROUP SA 11.31 SEA -9.88
VIELA BIO 10.42 DATADOG -9.45
LIFCO AB 10.10 XP INC -9.40

IPO Deal-flow Review and Outlook: Market set to cool with PE-backed software unicorn Jamf lines up. At least 19 IPOs IPO’d across the global regions last week, with the average (median) equally-weighted deal adding +44.34% (+11.33%) based on the difference between the final offering price and their respective Friday’s close. Fintech unicorn nCino (NCNO: +138.71%), SoftBank-backed biotech Relay Therap. (RLAY US: +119.90%) and cellular therapy firm Berkeley Lights (BLI US: +197.50%) more than doubled, while Hong Kong’s largest IPO YTD, China Bohai Bank (9668 HK: -1.87%) slipped. We also note the surge in Toronto-traded legal software developer Dye & Durham (DND CN: +97.33%). After busy week, the IPO activity is set to slow with enterprise software management unicorn Jamf (JAMF US) lined up. Other IPO news include: 1) PE-backed firms lined up include Shopify rival BigCommerce, Chicago-based primary care operator Oak Street Health and medical cost management firm MultiPlan (reverse IPO) 2) SoftBank weighs an IPO for its $40B British chip designer Arm 3) EV makers to ride on Tesla’s winning track with Fisker (in reverse IPO with Apollo-backed SPAC) and Chinese food delivery giant Meituan-backed Li Auto filing for an IPO 4) Brazil state-owned lender Caixa Seguridade resumes going public plan 5) Australian cash back site Cashrewards set to list 6) Airbnb back on track with IPO plan.

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