The IPOX® Week, March 23, 2020

  • IPOX® International (ETF: FPX) outperforms as IPOX Europe (IXTE) gains. Another rough week for U.S. equities.
  • Amid huge moves in global equity indexes spreads, IPOX Global Alternative Strategy soars +4.47% +25.39% YTD.
  • IPO Deal-flow Review & Outlook: Asset Manager Ninety One (N91 LN) completes London Spin-off. Hong Kong awaits hot InnoCare Pharma (9969 HK) IPO.

IPOX® International (ETF: FPX) outperforms as IPOX Europe (IXTE) gains.  Another rough week for U.S. equities.  Most IPOX Indexes continued to follow other equities lower during U.S. Futures & Options expiration week as fears linked to the economic impact over the COVID-19 outbreak drove more indiscriminate selling in select equities, amid central bank interventions, ensuing global fiscal stimulus, a plunging EUR and higher U.S. interest rates. U.S. equities were hit hardest, with the diversified IPOX 100 U.S. (ETF: FPX) dropping by -14.06% to -29.78% YTD, +92 bps., +457 bps. and +216 bps. better when compared to the S&P 500 (SPX), Russell 2000 (RTY) and S&P Mid-Cap (MID), respectively. Sentiment in the IPOX markets abroad was much better, however, with the IPOX International (ETF: FPXI) declining by just -4.81% to -16.16% YTD, now a massive +1544 bps. ahead of the International Market.  Here,

IPOX® 100 U.S. (ticker: FPX) Investing since 04/2006:

the IPOX Europe (IXTE) stood out, recording a gain of +0.62% last week.  Amid the huge divergence in equity indexes spreads across countries, size groups and sectors in favor of IPOX last week, we note a fresh all-time high in the absolute return-focused IPOX Global Alternative Strategy with the portfolio adding +4.47% to +25.39% YTD. With select individual equities suffering the sharpest declines since the 2008 Financial crises, forced and indiscriminate liquidation selling ranged from relatively unseasoned growth stocks to indebted P/E-backed businesses, Real Estate Investment Trusts (REITs) and Brazil-linked stocks such as car vending machine operator Carvana (CVNA US: -42.36%), food producer and distributer US Foods (USFD US: -33.99%), REIT VICI Properties (VICI US: -30.06%) and Brazilian Airline Azul (AZUL US: -50.13%). Technology, healthcare and select consumer goods companies outperformed, including online pet retailer Chewy (CHWY US: +22.53%), German connectivity platform operator Teamviewer (TMV GY: +17.15%), biotech Biontech (BNTX US: +50.34%), medical equipment maker Spin-off Siemens Healthineers (SHLG GY: +9.23%) or IPOX heavyweight Tokyo-traded mobile telecommunications network operator Dec. 2018 IPO Softbank Corp. (9434 JP: +2.63%).

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -7.27 27.93 -19.85
IPOX® Global Alternative (USD) 4.47 -1.96 25.39
IPOX® International (IPXI)* (USD) (ETF: FPXI) -4.81 31.37 -16.16
IPOX® Indexes: United States
IPOX® Composite U.S. (USD) -11.81 24.64 -26.79
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) -14.06 29.60 -29.78
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) +0.62 34.55 -16.10
IPOX® Nordic (IPND) -4.68 38.52 -21.18
IPOX® 100 Europe (IPOE)* (USD) -3.69 30.97 -24.43
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -7.99 4.41 -21.67
IPOX® China (CNI) (USD) -5.69 26.31 -7.75
IPOX® Japan (IPJP)** (JPY) -2.67 37.91 -29.86

* 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.

IPO Deal-flow Review & Outlook:  Asset Manager Ninety One (N91 LN) completes London Spin-off. Hong Kong awaits hot InnoCare Pharma (9969 HK) IPO.  Only 4 firms commenced trading across the global regions last week with the average (median) equally weighted Initial Public Offering adding +1.10% (+13.17%) based on the difference between the final offering price and Friday’s close. Despite the big volatility in global equities, two deals stood out with strong initial showing, including Investec’s asset management spin-off Ninety One (N91 LN: +16.53%) and Chinese construction company Jianzhong (589 HK: +27.88%). While deal flow across the U.S. and Europe is at a stand-still, several deals are set to commence trading in the Hong Kong Market. Amid an impressive 300x oversubscription, top of the list ranks highly anticipated Chinese cancer drugs maker InnoCare Pharma (9969 HK), followed by Japan-traded waste recycling services provider Rever Holdings (5690 JP). Other IPO News of last week include: 1) J. Crew cancels Madewell spin-off IPO; 2) more delays in some highly anticipated IPOs scheduled for this year likely, including home-sharing marketplace Airbnb, Siam Cement unit – SCG Packaging’s $1B Thailand IPO, and Brazilian truck rental company Vamos; 3) Thai’s third largest insurer Thai Life Insurance pitches for $700M IPO plan by year end; 4) Lithuania green lights state-owned company Ignitis’s IPO, the largest supplier of electricity and gas in the country; and 5) Hong Kong sees more IPO filings with Chinese bottle-water producer Nongfu Spring and PE-backed detergent maker Blue Moon’s up to $1B IPO offering, respectively, as well as JD.com’s upcoming local listing.

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